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TC Council Packet 04-09-2013TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING FOR TUESDAY, APRIL 9, 2013 MEETING BEGINS AT 5:30 PM AVON TOWN HALL, ONE LAKE STREET FINAL Avon Council Meeting 13 04 099 Page 1 of 3 PRESIDING OFFICIALS CHAIRMAN RICH CARROLL VICE CHAIRMAN TODD GOULDING BOARD MEMBERS 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 LIQUOR BOARD MEETINGS ARE OPEN TO THE PUBLIC EXCEPT EXECUTIVE SESSIONS COMMENTS FROM THE PUBLIC ARE WELCOME DURING 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 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT 4. PUBLIC HEARING FOR REPORT OF CHANGES ON MODIFICATION OF PREMISES 4.1. Northside Coffee & Kitchen LLC d/b/a Northside Coffee & Kitchen, 20 Nottingham Road (Units A & C), Hotel and Restaurant Liquor License 5. CONSENT AGENDA 5.1. Minutes from February 12, 2013 6. ADJOURNMENT TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING FOR TUESDAY, FEBRUARY 12, 2013 MEETING BEGINS AT 3:30 PM AVON TOWN HALL, ONE LAKE STREET 1) CALL TO ORDER AND ROLL CALL Chairman Rich Carroll called the meeting to order at 3:40 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, Recreation Director Meryl Jacobs, Community Relations Officer Jaime Walker, as well as other staff members and the public. 2) APPROVAL OF AGENDA There were no changes to the agenda. 3) PUBLIC COMMENT There were no comments made by the public. 4) RENEWAL LIQUOR LICENSES 1) 7-Eleven, Inc. d/b/a 7-Eleven 34209, 008 Nottingham Road, Manager: Maria Portarescu, 3.2% Beer Retail Off Premises Liquor License for 7-Eleven, Inc. d/b/a 7-Eleven 34209. Town Clerk Patty McKenny noted that the application for renewal of the license was in order. Council Dantas moved to approve the 3.2% Beer Retail Off Premises Liquor License; Councilor Evans seconded the motion and it passed unanimously. 2) Debbie Marquez Restaurants, LLC, d/b/a Café de Luna by Debbie Marquez, 47 E. Beaver Creek Blvd, Manager: Debbie Marquez, Hotel & Restaurant Liquor License Town Clerk Patty McKenny noted that the application for renewal of the license was in order. Council Evans moved to approve the Hotel & Restaurant Liquor License; Councilor Wolf seconded the motion and it passed unanimously. 3) Fiesta Jalisco Numero Tres, LLC, d/b/a Fiesta Jalisco, 240 Chapel Place B129, Manager: Ricardo Aragon, Hotel & Restaurant Liquor License Town Clerk Patty McKenny noted that the application for renewal of the license was in order. Council Evans moved to approve the Hotel & Restaurant Liquor License; Councilor Wolf seconded the motion and it passed unanimously. 1) CONSENT AGENDA a) Minutes from January 8, 2012 Mayor Pro Tem Goulding moved to approve the minutes; Councilor Reynolds seconded the motion and it passed unanimously. There being no further business to come before the Board, the meeting adjourned at 3:45 PM. RESPECTFULLY SUBMITTED: ____________________________________ Patty McKenny, Secretary TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING FOR TUESDAY, FEBRUARY 12, 2013 MEETING BEGINS AT 3:30 PM AVON TOWN HALL, ONE LAKE STREET APPROVED: Rich Carroll ______________________________________ Dave Dantas ______________________________________ Chris Evans ______________________________________ Jennie Fancher ______________________________________ Todd Goulding ______________________________________ Albert “Buz” Reynolds ______________________________________ Jake Wolf ______________________________________ TOWN OF AVON, COLORADO AVON REGULAR MEETING FOR TUESDAY, APRIL 9, 2013 MEETING BEGINS AT 6:00 PM AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13.04.09 Page 2 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 GENERAL COMMENTS ARE WELCOME DURING PUBLIC COMMENT - COMMENTS ARE ALSO WELCOME ON ANY AGENDA TOPIC PLEASE VIEW AVON’S WEBSITE, HTTP://WWW.AVON.ORG, FOR MEETING AGENDAS AND MEETING MATERIALS AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AND AVON LIBRARY THE AVON TOWN COUNCIL MEETS ON THE SECOND AND FOURTH TUESDAYS OF EVERY MONTH 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF AGENDA 4. PUBLIC COMMENT 5. ACTION ITEMS 5.1. Approval of Minutes from March 12 and March 26, 2013 5.2. Fireworks Production Contract between Western Enterprises and Town of Avon For purchase of Salute USA Fireworks (Danita Dempsey, Special Events Supervisor) 5.3. Action by Motion and Vote to approve CenturyLink Metro Ethernet Contracts (Cindy Kershaw, IT Administrator) 5.4. Resolution 13–12, Series of 2013, Resolution Revising the Fees Schedule for Construction Work Within Public Right-of-Way, Town of Avon, Eagle County, Colorado (Gary Padilla, Road and Bridge Superintendent) 5.5. Public Hearing on Second Reading of Ordinance 13-05, Ordinance Approving A Minor PUD Amendment and Minor Subdivision for Wildridge Point on Lots 33 and 34, Block 4, Wildridge Subdivision Town of Avon Eagle County Colorado (Jared Barnes, Planner II) 5.6. Action by motion and vote on Planning and Zoning Commission Recommendations: 5.6.1. Commence an Application by Town Council to Amend the Text of the Municipal Code on Various Sections (Matt Pielsticker, Senior Planner) 5.6.2. Planning and Zoning Commission Rules of Procedure (Jared Barnes, Planner II) 5.7. Village at Avon Settlement (Eric Heil, Town Attorney) 5.7.1. Update on Settlement Implementation 5.7.2. Resolution No. 13-13, Series of 2013, Resolution Approving the Add-On Retail Sales Fee Collection Services Agreement 5.7.3. Approval by Motion of Amendments to Declarations for the Commercial Public Improvement Company and Mixed-Use Public Improvement Company 6. WORK SESSION 6.1. Direction on Post Boulevard Clean Up by Town Parks and Road and Bridge Divisions (Virginia Egger, Town Manager) TOWN OF AVON, COLORADO AVON REGULAR MEETING FOR TUESDAY, APRIL 9, 2013 MEETING BEGINS AT 6:00 PM AVON TOWN HALL, ONE LAKE STREET Avon Council Meeting 13.04.09 Page 3 6.2. Report on 1st Quarter Strategic Plan Work & Update, as warranted, of 2nd, 3rd and 4th Quarters (Virginia Egger, Town Manager) 6.3. Committee Meeting Updates: Councilors and Mayor 6.3.1. EGE Air Alliance 6.3.2. UERWA Board Meeting 6.3.3. Regional Collaboration 6.4. Council Comments 6.5. Mayor Report: Future Agenda Items 7. ADJOURNMENT FUTURE COUNCIL AGENDA FOR APRIL 23, 2013 & PROPOSED TOPICS: Village at Avon Settlement Documents; I-70 Lease Space Term Sheet, US 6 Highway Shoulders Funding Request, PZC Interviews and Selection TOWN OF AVON, COLORADO MINUTES FOR THE AVON REGULAR MEETING FOR TUESDAY MARCH 12, 2013 MEETING BEGINS AT 5:40 PM AVON TOWN HALL, ONE LAKE STREET Avon Town Council Meeting March 12, 2013 Page 1 of 4 CALL TO ORDER AND ROLL CALL Mayor Rich Carroll called the meeting to order at 5:40 PM. A roll call was taken and Council members present were Dave Dantas, Jennie Fancher, Todd Goulding, Buz Reynolds and Jake Wolf. Chris Evans was absent. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Deputy Town Clerk Debbie Hoppe, Town Engineer Justin Hildreth, Community Relations Officer Jaime Walker, as well as other staff members and the public. APPROVAL OF AGENDA There were no changes to the agenda. WORK SESSION a) I-70 REGIONAL TRANSPORTATION OPERATIONS FACILITY – UPDATE AND USE OF CONTINGENCY FUND TO CONSTRUCT A 4,000 SQUARE FOOT MEZZANINE FOR ADMINISTRATION USES Justin Hildreth, Town Engineer, presented the agenda item addressing the I-70 Regional Transportation Operations Facility. The update given by Justin was that most of the site work is completed and the building has gone vertical. The slab has five of the six pours have been completed. The project has gone quite well through the winter conditions and the project remains within budget. There have been some cost savings because subcontractors have come in lower than expected and there were also savings on design fees. After some discussion, the Town Council directed staff to continue to move forward with the construction of the mezzanine level of the facility. b) EAGLE COUNTY COMMISSIONERS DISCUSSION Mayor Carroll welcomed the Eagle County Commissioners to Avon including John Stavney, Sara Fisher, Jill Ryan; introductions were made. i) I-70 Regional Transportation Operations Facility at Swift Gulch Update Virginia Egger, Town Manager, presented the work agenda; I-70 Regional Transportation Operations Facility at Swift Gulch Update, Review Highway 6 Construction Project for Shoulder Expansion and Request for Funding Assistance and Management of West Avon Parcel with completion of the Eagle Valley Land Exchange. It was noted this is the opportunity to review and exchange information and update the group in terms of next steps moving forward. It was noted that with the earlier presentation by Town Engineer Justin Hildreth provided the update status on the construction of the facility, as well as the progress being made on the term sheet for the space lease. There will be a review of office space rental amounts as well as a review of offering a discount for fleet maintenance tied to the vehicles stored in the facility. The town looks forward to working with Eagle County to lease space. ii) Review Highway 6 Construction Project for Shoulder Expansion and Request for Funding Assistance Mayor Carroll presented the Highway 6 Construction Project to be completed this summer by CDOT, a proposal for an overlay project on US 6 from Avon to Edwards. Eva Wilson, Eagle County Engineer, noted that CDOT is looking for multiple funding partners for this project based on the location of the construction of the shoulder widening, including Eagle County, Edwards and Avon. It was noted that the Town was asked to contribute toward the $114,521 for highway segments that approximate to Avon’s town limits. It was hoped the town would respond no later than the end of April. The town currently does not have this funding budgeted in 2013, and it was noted that the CIP fund was under review and updates for other items TOWN OF AVON, COLORADO MINUTES FOR THE AVON REGULAR MEETING FOR TUESDAY MARCH 12, 2013 MEETING BEGINS AT 5:40 PM AVON TOWN HALL, ONE LAKE STREET Avon Town Council Meeting March 12, 2013 Page 2 of 4 not budgeted, i.e. lake liner construction, Lettuce Shed Lane improvements. The town would provide a response at the end of April iii) Management of West Avon Parcel with completion of the Eagle Valley Land Exchange It was noted that this topic was included to provide an update that the Town would work in concert with Eagle County and the Eagle Valley Land Trust to ensure that the “Management Plan”, a document that is part of the documents to be approved in the multi-party land exchange, would be given attention by its Recreation & Parks Department. It was also noted that the town would work toward recommending to council such improvements it would deem necessary for the West Avon Parcel as delineated in the West Avon Open Space management Plan dated December 2012. c) EAGLE COUNTY PRESENTATION – ECO TRANSIT SPINE FEEDER AND CIRCULATOR BUS SYSTEM Kelley Collier, ECO Transit Director, presented the ECO Transit Spine Feeder & Circulator Bus System Report. She asked the key question of “how do we do more with less” in light of the fact that ECO needs to increase transit service with the economic downturn. She noted some of the following highlights:  The ridership demands were there  There was 34% less revenue, so we needed to change the way we do business  A consulting firm TransitPlus was hired to complete a Spine circulator feasible study for this area  An analysis of existing services and travel patterns shows travel patterns dictate that most support service will need to be local service on Highway 6.  Challenges exist, with a need for a transit facility in Edwards, results in high level of transfers.  The goal is to move more passengers more rapidly up and down the valley.  Spine service can serve broad trip needs with minimum of resources, easy to understand and positions region for development of transit in I-70 corridor.  Local/Express combo serves existing travelers well in Edwards to Vail corridor.  Few transfers and good travel times, will smooth the transition to a spine network.  It was noted that the service recommendations was to develop a spine network on I-70, supported by a combination of local service types. It was noted that the next steps would be to meet with Towns and Metro Districts to present initial findings with some public input about an Operational Plan and try to determine facilities needed at each hub. She noted that ECO would continue to dialogue with the Town on many of these transit matters. PUBLIC COMMENT  Holy Cross Powder Hounds snowmobile club representatives Mark Roebke and Lance Trujillo asked the Town Council to consider the concern over the recent winter closure of Forest Service Road 779 at the top of Wildridge. As noted, that access point is important to many Avon residents and is an asset to the community. Mark requested a review of previous discussions between the Town of Avon and the Forest Service concerning access through this road. Perhaps there are decisions, information or discussions the current Forest Service staff (who are enforcing the closure) are not aware of. ACTION ITEMS a) Resolution No. 13-08, Series of 2013, Resolution Consenting to Upper Eagle Regional Water Authority Increase in Base Rate Tom Leonhart, Chairman for the Board of Directors of the Upper Eagle Regional Water Authority, presented the proposed Base Rate Increase to accommodate the payment of Debt Service on the proposed Series 2013 TOWN OF AVON, COLORADO MINUTES FOR THE AVON REGULAR MEETING FOR TUESDAY MARCH 12, 2013 MEETING BEGINS AT 5:40 PM AVON TOWN HALL, ONE LAKE STREET Avon Town Council Meeting March 12, 2013 Page 3 of 4 Revenue Bonds in the anticipated amount of $12,700,000 (the “Bonds”). He noted that the resulting base rate that would support the bond would be somewhere between the amount of $3.00 & $3.20 fee per month and would not become effective until 2014. It was noted that anytime the base rate increases above the consumer price index of Denver and Boulder, the UERWA would need the support of each of the six members of the authority. There was an overview provided about their capital projects moving forward. Linn Brooks, General Manager of ERWSD, presented some details about the budget, the plant investment fee as an impact fee, a summary about the operations budget, debt service costs and finally the capital costs. It was noted that with a reduction in tap fees and aging facilities and other capital investments, the rate increase is proposed. Further details about the proposal were provided in terms of customer impacts. Mayor Pro Tem Goulding moved to approve Resolution No. 13-08, Series of 2013, Resolution Consenting to Upper Eagle Regional Water Authority Increase in Base Rate; Councilor Reynolds seconded the motion and it passed unanimously by those members present (Councilor Evans absent). b) Approval of Performance Evaluation Process and Criteria for Town Manager (Rich Carroll, Mayor) Mayor Carroll presented this matter with a review of the clean version and a redline version with some minor changes. Mayor Pro Tem Golding thinks overall this is a great approach. After reviewing the document all agreed that it seemed to be in sync with the town’s work plan program for 2013. Mayor Carroll moved to adopt the Town Manager Performance Evaluation Criteria dated March 12, 2013; Councilor Reynolds seconded the motion and it passed unanimously by those members present (Councilor Evans absent). WORK SESSION – CONTINUED a) Village at Avon Settlement Implementation Update (Eric Heil) Eric Heil, Town Attorney, updated the Town Council with regard to the settlement implementation. He noted that some of the documents would be ready to forward to Council by Friday. It was noted that the service plans would not be ready at that time by ready March 26th. He continued with some estimated dates for final documents over the next 30 days. b) Regional Committee Meeting Updates: Councilors and Mayor i) UERWA Meeting of February 28, 2013 (Mayor Pro Tem Goulding) Mayor Pro Tem Golding updated Council about the UERWA meeting topics as follows: the bond issuance, the changing out of meters, the Avon water summit meeting documenting issues between the Town and Authority, Traer Creek matters related to outstanding documents, the approval of the Wyndham water service agreement, pay in lieu with Wyndham, and finally the Mountain Star water tank update. ii) Regional Collaboration Meeting of March 1, 2013 (Mayor Carroll) Mayor Carroll presented an update on the regional collaboration meeting. MAYOR REPORT 1) Future Agenda Items Mayor Carroll asked that council members forward any agenda suggestions to him. It was noted that the Council would meet with the PZC members at the 2/26/13 council meeting; an agenda for that joint meeting would be drafted. TOWN OF AVON, COLORADO MINUTES FOR THE AVON REGULAR MEETING FOR TUESDAY MARCH 12, 2013 MEETING BEGINS AT 5:40 PM AVON TOWN HALL, ONE LAKE STREET Avon Town Council Meeting March 12, 2013 Page 4 of 4 There being no further business to come before the Council, the regular meeting adjourned at 9:00 PM. RESPECTFULLY SUBMITTED: _________________________________ Debbie Hoppe, Deputy Town Clerk APPROVED: Rich Carroll ________________________________ Dave Dantas ________________________________ Chris Evans ________________________________ Jennie Fancher ________________________________ Todd Goulding ________________________________ Albert “Buz” Reynolds ________________________________ Jake Wolf ________________________________ TOWN OF AVON, COLORADO AVON REGULAR MEETING FOR TUESDAY, MARCH 26, 2013 MEETING BEGINS AT 3:45 PM AVON TOWN HALL, ONE LAKE STREET Avon Town Council Meeting March 26, 2013 Page 1 of 5 1. CALL TO ORDER AND ROLL CALL Mayor Carroll called the meeting to order at 5:35 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, Planners Matt Pielsticker and Jared Barnes, Community Relations Officer Jaime Walker, as well as other staff members and the public. 2. APPROVAL OF AGENDA There were no changes to the agenda. 3. PUBLIC COMMENT There were no comments at this time. 4. ACTION ITEMS 4.1. Approval of Minutes from February 26, 2013 Mayor Carroll asked for a motion on the minutes. Councilor Dantas moved to approve the minutes; Councilor Reynolds seconded the motion and it passed unanimously by those voting (Council Evans abstained). 4.2. Request to Transfer Town of Avon Radio License to Eagle County per Letter to Federal Communication Commission (Lt. Greg Daly) It was noted that a request was made by the Police Department to execute a letter to the Federal Communications Commission that would allow for the assignment of the Town of Avon license (Call Sign WPRG237) from the Town to Eagle County in order to streamline management of the county wide system. Councilor Fancher asked if the Town would be able to get another license in the future. Finance Director Scott Wright noted that the town does have other licenses and that the transfer of this license would just consolidate this frequency to the County oversight. Mayor Pro Tem Goulding moved to approve the letter to the FCC that assigns the town’s license currently in the name of the Town (officially “Avon,Town of”, call sign WPRG237) to Eagle County (officially “Eagle, County of”, Colorado). Councilor Evans seconded the motion and it passed unanimously. 4.3. Wildridge Point Subdivision (Jared Barnes, Planner I) 4.3.1. Resolution 13-11, Series of 2013, Resolution Approving a Variance from Sections 7.32.020(e )(6) and 7.32.020(e )(7) for Lots 2 and 3, Wildridge Point, A Resubdivision of Lots 33-34, Block 4, Wildridge Subdivision, Town of Avon, Eagle County, Colorado 4.3.2. First Reading of Ordinance 13-05, Series of 2013, Ordinance Approving A Minor PUD Amendment and Minor Subdivision for Wildridge Point on Lots 33 and 34, Block 4, Wildridge Subdivision, Town of Avon, Eagle County, Colorado Councilor Dantas recused himself at this time due to a conflict of interest. The Applicant, Dominic Mauriello of Mauriello Planning Group, representing the owner, Mountain C.I. Holdings LTD, reviewed the submitted Minor PUD Amendment, Minor Subdivision, and Variance Applications (“the Application”). It was noted that the Application requests a Minor Amendment to the Wildridge PUD to modify two (2) duplex lots, Lots 33 & 34, Block 4, Wildridge Subdivision (“the Property”), into three (3) single-family lots, Lots 1-3, Wildridge Point Subdivision. His slideshow presentation addressed some of the following:  Review of PZC action & conditions with an explanation about the variance request  Review exact location of properties TOWN OF AVON, COLORADO AVON REGULAR MEETING FOR TUESDAY, MARCH 26, 2013 MEETING BEGINS AT 3:45 PM AVON TOWN HALL, ONE LAKE STREET Avon Town Council Meeting March 26, 2013 Page 2 of 5  Highlights of the application in terms of its impacts  Diagram of existing lots  Review of the duplex development scenario  Review of the proposed plat renamed Wildridge Point  Review of proposed plat showing the “no build easements”  Review of Family Development Scenario showing the proposed residence locations  Review of Building Footprints showing parking, retaining, and size of residences  Review of 3D views of residences  Review of Variance Applicability and basis for Resolution  Review of Precedent & Similar Approvals  Review of Zoning Analysis  Review of Public Benefits of Project Jared Barnes, Planner I, noted that staff did not have additional comments to the presentation. The minor subdivision was reviewed by staff and met all the requirements of the Avon Municipal Code. There was some discussion about the merits of the application and the variance application. Council input was given at this time with some questions about SFE requirements, density, and slope of the lots. Additional topics discussed included addressing the density compared to the original PUD, the variance analysis, and support of the project as a good fit for the neighborhood in moving from duplex to single family homes, and the current market demand. Mayor Carroll opened the public hearing, no comments were made, and the hearing was closed. There was some discussion addressing the subdivision process on the variance and Town Attorney Eric Heil addressed the status of the variance requirement and how the current Municipal Code addresses this PUD amendment. It was noted that this provision would likely be revised in the future. There was further discussion about the technical aspect of the variance component of the application, and whether or not the Town Council agrees to address the variance through action on the resolution. Again it was noted that the PZC did not see the need to apply this to the application. It was noted that staff would review the code since it would be likely that other similar applications would possibly be submitted, and language revisions might be in order. Staff would return with some suggested code amendments that would include this item. Mayor Pro Tem Goulding moved to approve Resolution 13-11, Series of 2013, Resolution Approving a Variance from Sections 7.32.020(e )(6) and 7.32.020(e )(7) for Lots 2 and 3, Wildridge Point, A Resubdivision of Lots 33- 34, Block 4, Wildridge Subdivision, Town of Avon, Eagle County, Colorado. Councilor Reynolds seconded the motion and it passed unanimously by those present (Councilor Dantas recused due to conflict of interest). Mayor Pro Tem Goulding moved to approve on first reading Ordinance 13-05, Series of 2013, Ordinance Approving A Minor PUD Amendment and Minor Subdivision for Wildridge Point on Lots 33 and 34, Block 4, Wildridge Subdivision, Town of Avon, Eagle County, Colorado. Councilor Reynolds seconded the motion and it passed unanimously by those present (Councilor Dantas recused due to conflict of interest). 4.4. Resolution 13-09, Series of 2013, Resolution to Amend the 2013 Avon Capital Projects Fund Budget, 2013 Supplemental Budget Amendment (Scott Wright, Finance Director) Councilor Dantas returned to the meeting at this time. Scott Wright, Finance Director, presented the memo that addressed the 2013 Capital Projects Fund Supplemental Budget Amendment with Resolution No. 13-09. He highlighted the following items and related details that would be addressed in this budget amendment and noted that there would be a net increase in expenditures of just over $10M: TOWN OF AVON, COLORADO AVON REGULAR MEETING FOR TUESDAY, MARCH 26, 2013 MEETING BEGINS AT 3:45 PM AVON TOWN HALL, ONE LAKE STREET Avon Town Council Meeting March 26, 2013 Page 3 of 5  Carryover of unexpended project budgets & associated revenues from 2012  Unanticipated projects that the original budget did not include in 2012  The delay of the Heat Recovery Expansion project to 2014 with a resulting reduction of the expenditure  Revenues not realized in previous year for I-70 RTOF carried over  Transfer from Community Enhancement Fund were eliminated to balance the removal of the expenditure  Reviewing to fund balances due to I-70 RTOF funding  Increase to RETT due to actual collections  Adjustment to URA fund in light of delay on mall improvements Councilor Evans moved to approve Resolution 13-09, Series of 2013, Resolution to Amend the 2013 Avon Capital Projects Fund Budget, 2013 Supplemental Budget Amendment. Councilor Dantas seconded the motion and it passed unanimously. 4.5. Village at Avon Settlement implementation (Eric Heil, Town Attorney) 4.5.1. Update on Settlement Implementation Town Attorney Eric Heil presented an update on the settlement implementation noting that some revisions have been received for the “Add-on retail sales fee services agreement” and the declarations, but noting new on the service plans. It was noted that bond documents should be forthcoming soon and the town would be involved in a review of the documents, keeping in mind it is not the town’s bond issuance however. Status conference report on 3/21, next schedule for 4/8; requested status conference every 2 weeks 4.5.2. Resolution No. 13- 10, Series of 2013, Resolution Repealing Resolution No. 12-30 and Re- Approving the Asphalt Overlay Escrow Account Agreement Town Attorney Eric Heil noted that this document was approved in December 2012. He noted that subsequent to that approval the master developer was removed as a party to the escrow agreement, and that the legal obligation to the master developer’s commitment was outlined in the development agreement. The agreement sets forth various terms concerning the execution and deposit of documents and agreements into escrow. Mayor Pro Tem Goulding moved to approve Resolution Repealing Resolution No. 12-30 and Re-Approving the Asphalt Overlay Escrow Account Agreement. Councilor Evans seconded the motion and it passed unanimously. 4.5.3. Approval by Motion of Revocable License Agreement for Snow Storage Town Attorney Eric Heil noted that the License Agreement is a document that is a requirement of the development agreement. He highlighted the parties that are part of the arrangement and then reviewed several sections of the agreement including the “grant of the license, the hazardous materials section and Exhibit B as the diagram noting the location. It was noted that the form of the agreement was approved by the other parties. Councilor Evans moved to approve the Revocable License Agreement for Snow Storage. Mayor Pro Tem Goulding seconded the motion and it passed unanimously. 4.5.4. Motion to Continue to April 9 the Public Hearing for Second Reading of Resolution No. 13-02, Series of 2013, Approving Amendments to Traer Creek Metropolitan District Service Plan Mayor Carroll presented this topic noting there would be another delay with the dates. He opened the public hearing, no comments were made and the hearing was closed. Councilor Reynolds moved to continue the public hearing and consideration of Resolution No. 13-02, Series of 2013, Approving TOWN OF AVON, COLORADO AVON REGULAR MEETING FOR TUESDAY, MARCH 26, 2013 MEETING BEGINS AT 3:45 PM AVON TOWN HALL, ONE LAKE STREET Avon Town Council Meeting March 26, 2013 Page 4 of 5 Amendments to Traer Creek Metropolitan District Service Plan to April 23, 2013. Mayor Pro Tem Goulding seconded the motion and it passed unanimously. 4.5.5. Motion to Continue to April 9 the Public Hearing for Second Reading of Resolution No. 13-03, Series of 2013, Approving Amendments to The Village Metropolitan District Service Plan Mayor Carroll presented this topic noting there would be another delay with the dates. Mayor Carroll opened the public hearing, no comments were made and the hearing was closed. Councilor Evans moved to continue the public hearing and consideration of Resolution No. 13-03, Series of 2013, Approving Amendments to The Village Metropolitan District Service Plan to April 23, 2013. Councilor Wolf seconded the motion and it passed unanimously. 5. WORK SESSION 5.1. Planning and Zoning Commission Appointments: Update on Upcoming PZC Appointment Process (Matt Pielsticker, Planner II) Mayor Carroll presented this topic in order to update the council about the process used for selecting the PZC members. He reviewed the memo that described the number of vacancies, the posting for the position, and the process for interviewing and selecting new members. Matt Pielsticker presented an update on those members leaving and the applications received. There was council support of the process especially in light of transparency when counting the votes. 5.2. Hahnewald Barn Report–Historic Status and Relocation Plan (Matt Pielsticker, Planner II) Matt Pielsticker, Planner II, presented this topic with an update about a meeting on February 5, 2013, with representatives from the Eagle River Water and Sanitation District (“ERWSD”) who met with the Town to hold a Water Summit to identify matters of mutual interest. There was a request by ERWSD to remove the Hahnewald Barn (“the Barn”) from their property no later than October, 2013 in order to better utilize the property. He noted that the Barn is located at the Wastewater Treatment Plant, and has been used for storage purposes since ERWSD acquired the property in 1985. There was some information presented in the packet, the Historic Status Report on the Barn in April, 2013 that noted the Barn is not listed as a Historic Landmark at the local, state, or national level and the Town does not have any historic preservation regulations or criteria that would limit the ERWSD from applying for a Town demolition or removal approval for the structure. A brief reference was made to the fact that the Town had a Historic Preservation Ordinance in effect from 2007-2010 and that this language was inadvertently removed in the Code update. Then in 2010, the Hahnewald Barn Historic Background and Field Analysis (Field Analysis) was completed by a historic preservation consultant, who was retained by the Town. The Field Analysis found historic significance despite changes that had taken place over the years, i.e. new roof material and design. In summary, the Barn is at least 100 years old and is one of the only remnants of Avon’s agricultural heritage dating back to the early 20th century. It was noted that the complete Field Analysis is attached to this report, and some additional corresponded was presented by Linn Brooks & Jeanette Hix. There was some discussion about the email from Jeanette Hix requesting the Town council not make any final decision about the Hahnewald Barn, and that the Historic Committee requested more time to fully understand; the letter was read into the record. There was discussion about who serves as the regulatory agencies on the building as well as how to go about making the historical designation. It was agreed that both the Mayor and Town Manager would contact ERWSD to inquire about the timeline to see if a further review of the barn could be made, and Matt Pielsticker would follow up with commission members. TOWN OF AVON, COLORADO AVON REGULAR MEETING FOR TUESDAY, MARCH 26, 2013 MEETING BEGINS AT 3:45 PM AVON TOWN HALL, ONE LAKE STREET Avon Town Council Meeting March 26, 2013 Page 5 of 5 5.3. Council Comments Councilor Wolf informed Council about the a new effort from a movie production company hoping to complete a documentary film on education at Avon Elementary School. 5.4. Mayor Report 5.4.1. Future Agenda Items Mayor Carroll reviewed some topics for next meetings; and asked for any other input on agenda to let him know. 5.5. Financial Matters – Sales and Accommodations Tax January 2013 (Report Only, Kelly Huitt, Budget Analyst) There was some discussion about what the “out of city” tax collections included. There being no further business to come before the Council, the regular meeting adjourned at 7:15 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: Danita Dempsey – Special Events Supervisor Date: April 4, 2013 Agenda Topic: Western Enterprises – Fireworks Production Contract Summary: Attached for signature is the contract with Western Enterprises, Attachment A and Addendum No. 1 to facilitate the 2013 Salute to the USA fireworks display scheduled for Thursday, July 3. In 2010, staff worked with Western Enterprises and the Fire Department to create an “Attachment A” which helped to clarify the operational procedures for perimeter security, discharge/display sites and responsibilities of each party. The “Attachment A” is being utilized again for the 2013 Salute to the USA event. In addition, the contract includes an “Addendum No.1” as recommended by the Town Attorney, which contains standard municipal protection provisions. Total cost of the Contract is $53,500, with a 5% discount available, if paid in full by April 20, 2013. Town Manager Virginia Egger asked last month for this service to be bid, but we learned that it is too late in the “season”, with larger fireworks orders already taking much of the stock. Bidding time would likely reduce product availability. This service will be bid out next year in a timely manner. Attachments  2013 Western Enterprises Contract  Attachment A  Addendum No. 1 TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Cindy Kershaw,IT Administrator Scott Wright,Finance Director Date: March 26,2013 Re: CenturyLink Metro Ethernet Contracts Summary Upon completion of the I-70 Regional Transportation Facility at the Swift Gulch location there will be a larger demand for a corporate grade data and voice network at that facility. The attached contracts are for CenturyLink Metro Ethernet connectivity. One port will provide I OMbps of bandwidth from the Town Fall Municipal Building to the internet. The other port will provide l OMbps of bandwidth between the Town Fall Municipal Building and the Swift Gulch location for voice and data. These contracts are for a term of 36 months. The Town's current infrastructure consists of one point-to-point T-1 connection for voice traffic(1.5Mbps) and a line-of-sight wireless link for the data connection(8.66Mbps). Increasing the Town's speed to and from the internet is necessary to support web access to applications that reside at Town Fall, as well as supporting the Town's future push of backup disaster recovery data to the cloud. As the Town begins to offer more and more applications over the internet to our constituents, the more traffic we will have coming from our internet connection from the outside in. In addition, more activity and data collection will be required at the new I-70 Regional Transportation Facility and that will require greater speed for all of their data needs. Additional phones throughout the facility will also increase the need for more bandwidth. Financial and Budgetary Implications The upgrade of the internet connection to the CenturyLink Metro Ethernet connection will eliminate one Comcast DSL internet connection that costs the Town $1,584 per year. The existing T-1 connection will be eliminated and currently costs the Town$3,600 per year. The yearly maintenance on the wireless link will also be eliminated and currently costs the Town 1,600 per year. The connection to the internet for CenturyLink will cost the Town $9,864 per year and the connection to Swift Gulch from the Town Fall will cost$7,452 per year. Annual Costs New CenturyLink Connection Muni Bldg. 91864 New CenturyLink Connection to Swift Gulch 71452 Savings from cancellation of existing T-1 link 3,600) Savings from cancellation of Comcast DSL Internet 1,584) Savings from cancellation of wireless maintenance 1,600) Net change in annual costs 10 532 Recommendation: It is my recommendation that the Town Council approved these contracts for the upgraded corporate grade networking infrastructure with CenturyLink. Attachments: Page 2 CENTURYLINK INTERSTATE PRIVATE LINE AND ADVANCED NETWORK SERVICES AGREEMENT This interstate agreement ("Agreement") is between Qwest Corporation d/b/a CenturyLink QC including its subsidiary El Paso County Telephone Company ("CenturyLink"), and Town of Avon ("Customer") and will become effective on the latest signature date (the Agreement Effective Date"). CenturyLink Services are available only in CenturyLink's local service areas in the following states: Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah,Washington, and Wyoming. Using CenturyLink's electronic signature process for the Agreement is acceptable. Town of Avon Qwest Corporation d/b/a CenturyLink QC Authorized Signature Authorized Signature Name Typed or Printed Name Typed or Printed Title Title Date Date Customer's address for notices: P.O.. Box 975,Avon, CO 81620 Customer's facsimile number: 970-949-9139 Person designated for notices: General Counsel 1. Services. CenturyLink will provide, and Customer will purchase, the services ("Services") set forth in the service exhibits Service Exhibits"). Customer understands the Agreement is for CenturyLink private line and advanced communications services capable of transmitting 200 Kbps or greater in each direction and listed below. Services that are lower than 200 Kbps must be purchased under separate contract or tariff. CenturyLink will provide Service for locations listed on the Pricing Attachment and when adequate capacity is available. The Service Exhibits attached to the Agreement and incorporated by this reference as of the Agreement Effective Date are shown below: ATM CenturyLink Metro Optical Ethernet or Metro Ethernet Optional Minimum Billing Level FR Metro Ethernet") F-1 GeoMax o HDTV-Net Self-Healing Network Service("SHNS") Synchronous Service Transport("SST") Frame Relay("FR")Optical Wavelength Service 1.1 Jurisdiction. Customer understands that Service is an interstate telecommunications service, as defined by Federal Communications Commission regulations and represents that during the Term, more than 10% of its usage will be interstate usage. 1.2 Construction. CenturyLink may assess separate Construction charges if facilities are not available to meet an order for Service and CenturyLink constructs facilities under one or more of the following circumstances: (a) the amount of Customer's expected payments over the term of the Agreement does not exceed CenturyLink's calculated cost of providing the Service plus its expected rate of return; (b) Customer requests that Service be furnished using a type of facility, or via a route that CenturyLink would not normally utilize in providing the requested Service; (c) more facilities are requested than would normally be required to satisfy an order; and d)Customer requests that Construction be expedited, resulting in added cost to CenturyLink. 1.3 Expedite. Any Customer requests for CenturyLink to Expedite the delivery of Service before the standard or negotiated Service Due Date will be deemed an expedited order and Expedite charges will apply. Upon CenturyLink's receipt of an Expedite request from Customer, Customer and CenturyLink will mutually agree to a new Service Due Date. 1.4 Service Changes. Customer may add, move, or upgrade each Service in a Pricing Attachment via an Amendment to the Agreement. New Service and any addition, move, or upgrade to existing Service is subject to the terms of the RSS in effect when the Amendment to add, move, or upgrade existing Service is executed or for new Service when the new Service is installed. Existing terms and conditions will continue to apply to existing Service. But if an RSS change results in a conflict with the terms and conditions applicable to the Service, then Customer must agree to an amendment modifying the terms and conditions before CenturyLink will provision the new Service or the additions, moves, or upgrades to existing Service. 1.5 Service Interruptions. Service interruption means a total disruption of the Service subject to restrictions and exclusions outlined in an SLA or in the RSS. Services with a Service-specific SLA are subject to the credit for service interruptions contained in the applicable SLA and described in the RSS posted at www.qwest.centurylink.com/legal. Services without a Service-specific SLA are subject to the credit for service interruptions contained in the RSS. The credits outlined in the SLAs or RSS are Customer's sole and exclusive remedy for interruptions of any kind to the Service. CenturyLink may, from time to time, suspend Service for routine maintenance or rearrangement of facilities or equipment. CenturyLink will give advance notification of any such suspension of Service. Such suspension of Service is not considered an out-of-service condition unless Service is not restored by the end of the period specified in the notification. Page 1 of 6 CenturyLink, Inc.All Rights Reserved CONFIDENTIAL v1.082112 CENTURYLINK INTERSTATE PRIVATE LINE AND ADVANCED NETWORK SERVICES AGREEMENT 1.6 Customer Responsibilities. Customer is responsible for the following: a) On-Site Operations. All Customer operations concerning Service at Customer's premises will be performed at Customer's expense, and Customer will be required to conform to all applicable specifications that CenturyLink may adopt as necessary to maintain Service. Any special structural work required for supporting telecommunications facilities needed to provide Service on Customer's premises will be provided only at Customer's expense. b) Customer will properly use the Service. Customer will not itself or permit others to use the Service in ways it is not intended or alter,tamper with, adjust, or repair the Service. c) Installation, Maintenance,and Repair. i) Customer will reasonably cooperate with CenturyLink or its agents to install, operate, maintain, or repair Service. Customer will provide or secure at Customer's expense appropriate space and power and rights or licenses if CenturyLink must access the building of Customer's premises to install, operate, or maintain Service or associated CenturyLink equipment. These items may include, for example, rights to use or install pathways, shafts, risers, conduits, telephone closets, interior wiring, service areas, racks, cages, and utility connections or entries required to reach point of termination. CenturyLink may refuse to install, maintain, or repair Services if any condition on Customer's premises is unsafe or likely to cause injury. ii) Customer is responsible for any facility or equipment repairs on Customer's side of the Demarcation Point. Customer may request a technician dispatch for Service problems. Before dispatching a technician, CenturyLink will notify Customer of the dispatch fee. CenturyLink will assess a dispatch fee if it determines the problem is on Customer's side of the Demarcation Point or was not caused by CenturyLink's facilities or equipment on CenturyLink's side of the Demarcation Point. iii) If a service interruption occurs due to Customer's failure to fulfill its obligations in this section, CenturyLink will be exempt from meeting the specified SLAs for that service interruption. 2. Agreement Term. The Agreement will remain in effect as long as any Service is offered under it ("Agreement Term"). Should all Services under the Agreement expire or terminate as contemplated by the Termination section of the Agreement, then the Agreement will terminate. 3. Rates. Rates, including Rates for optional features or functions, are set forth in each Pricing Attachment for informational purposes. Customer will receive the Rates in effect in the RSS on the Service Acceptance Date. CenturyLink will keep an archive of the RSS Web pages listing Rates, including dates of Rate changes. Customer agrees that CenturyLink's archive is conclusive evidence in the event of a dispute. CenturyLink reserves the right to modify rates and charges due to Regulatory Activity and will provide as much prior written notice as practicable but not less than 14 calendar days' notice. 4. Payment. 4.1 Customer must pay CenturyLink all charges by the due date on the invoice if specified. Any amount not paid when due is subject to a late payment charge of the lesser of 1.5% per month or the maximum rate allowed by law. In addition to payment of charges for Services, Customer must pay CenturyLink any applicable Taxes assessed in connection with Services. Taxes may vary and are subject to change. Customer may access its invoices and choose paperless invoices online through CenturyLink Control Center located at controlcenter.centurylink.com. If Customer does not choose paperless invoices through Control Center, CenturyLink may in its discretion assess a $15 MRC for each full paper invoice provided to Customer or a $2 MRC for each summary/remit only where available) paper invoice provided to Customer. Those charges will not apply to an invoice that is not available through Control Center. Customer's payments to CenturyLink must be in the form of electronic funds transfer(via wire transfer or ACH), cash payments via previously-approved CenturyLink processes only), or paper check. CenturyLink reserves the right to charge administrative fees when Customer's payment preferences deviate from CenturyLink's standard practices. 4.2 If Customer requests items from the RSS for which charges do not appear in a Pricing Attachment, CenturyLink will inform Customer of the charges at the time of the request, giving Customer the opportunity to cancel the request, rather than incurring the charges. Those items may include, but are not limited to: (a) Expedites, including third-party charges incurred by CenturyLink in connection with the Expedite; (b) CPE; (c) Construction; (d)Termination Charges; (e) charges for labor, testing, or design changes: f) inside wiring; and (g)additional administrative charges that may be applied for services not described on Pricing Attachments or for requests to provision Services in a manner inconsistent with CenturyLink's then-current practices. Customer will pay such charges regardless of whether Customer cancels Service or CenturyLink fails to deliver on the requested Expedite date, unless such failure was caused by CenturyLink. 4.3 CenturyLink will require Customer to accept Service by the end of the Grace Period, in which case CenturyLink will commence with regular monthly billing for the Service and Customer agrees to pay for the billed Service. If Customer has not accepted the Service by the end of the Grace Period, then CenturyLink may terminate the Service subject to the Termination section of the Agreement. 5. Confidentiality. Neither CenturyLink nor Customer will, without the prior written consent of the other party: (a)disclose any of the terms of the Agreement; or (b) disclose or use (except as expressly permitted by, or required to achieve the purposes of, the Agreement) the Confidential Information of the other party. Each party will use reasonable efforts to protect the other's Confidential Page 2 of 6 CenturyLink, Inc.All Rights Reserved CONFIDENTIAL v1.082112 CENTURYLINK INTERSTATE PRIVATE LINE AND ADVANCED NETWORK SERVICES AGREEMENT Information, and will use at least the same efforts to protect such Confidential Information as the party would use to protect its own. CenturyLink's consent may only be given by its Legal Department. A party may disclose Confidential Information if required to do so by a governmental agency, by operation of law, or if necessary in any proceeding to establish rights or obligations under the Agreement, provided that the disclosing party gives the non-disclosing party reasonable prior written notice. 6. CPNI. CenturyLink is required by law to treat CPNI confidentially. Customer agrees that CenturyLink may share CPNI within its business operations (e.g., wireless, local, long distance, and broadband services divisions), and with businesses acting on CenturyLink's behalf, to determine if Customer could benefit from the wide variety of CenturyLink products and services, and in its marketing and sales activities. Customer may withdraw its authorization at any time by informing CenturyLink in writing. Customer's decision regarding CenturyLink's use of CPNI will not affect the quality of service CenturyLink provides Customer. 7. Use of Name and Marks. Neither party will use the name or marks of the other party or any of its Affiliates for any purpose without the other party's prior written consent. CenturyLink's consent may only be given by its Legal Department. 8. Disclaimer of Warranties. EXCEPT AS EXPRESSLY PROVIDED IN THE AGREEMENT, ALL SERVICES AND PRODUCTS ARE PROVIDED "AS IS." CENTURYLINK DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION,WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,AND NON-INFRINGEMENT. 9. Limitation of Liability. The remedies and limitations of liability for any claims arising between the parties are set forth below. 9.1 Consequential Damages. NO PARTY OR ITS AFFILIATES, AGENTS, OR CONTRACTORS IS LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES OR FOR ANY LOST PROFITS, LOST REVENUES, LOST DATA, LOST BUSINESS OPPORTUNITY, OR COSTS OF COVER. THESE LIMITATIONS APPLY REGARDLESS OF THE LEGAL THEORY UNDER WHICH SUCH LIABILITY IS ASSERTED AND REGARDLESS OF FORESEEABILITY. 9.2 Claims Related to Services. For Customer's claims related to Service deficiencies or interruptions, Customer's exclusive remedies are limited to: (a)those remedies set forth in the SLA for the affected Service or in the RSS for Services without an SLA; or b) the total MRCs or usage charges paid by Customer for the affected Service in the one month immediately preceding the event giving rise to the claim if an SLA or applicable RSS language does not exist for the affected Service. 10. Personal Injury; Death; Property Damages. For claims arising out of personal injury or death to a party's employee, or damage to a party's real or personal property that are caused by the other party's negligence or willful misconduct in the performance of the Agreement, each party's liability is limited to proven direct damages. 11. Other Direct Damages. For all other claims arising out of the Agreement, the maximum liability for Customer and CenturyLink will not exceed in the aggregate the total MRCs and usage charges paid by Customer to CenturyLink under the Agreement in the three months immediately preceding the event giving rise to the claim ("Damage Cap"). The Damage Cap will not apply to a party's indemnification obligations or Customer's payment obligations under the Agreement. 12. Indemnification. Each party will defend and indemnify the other, their Affiliates, agents, and contractors against all third party claims for damages, liabilities, or expenses, including reasonable attorneys' fees, arising directly from performance of the Agreement and related to personal injury or death, or damage to personal tangible property that is alleged to have been caused by the negligence or willful misconduct of the indemnifying party unless otherwise stated in a CenturyLink QC Service Exhibit. Customer will also defend and indemnify CenturyLink, its Affiliates, agents, and contractors against all third party claims for damages, liabilities, or expenses, including reasonable attorneys'fees, related to the modification or resale of the Services by Customer or End Users. 13. Termination. 13.1 Service; Service Exhibit Before Service Due Date. If Customer cancels an order for Service before the Service Due Date, or does not accept the Service by the conclusion of the Grace Period, and CenturyLink terminates the Service at the end of the Grace Period, Termination Charges will apply, including the full NRCs that would have otherwise applied and any non-reusable and non- recoverable portions of expenditures or liabilities, such as Construction charges incurred exclusively on behalf of the Customer by CenturyLink and not fully reimbursed by NRCs. 13.2 Service; Service Exhibit After Service Acceptance Date. Either party may terminate an individual Service ordered under a Service Exhibit after the Service Acceptance Date under the terms of the applicable Service Exhibit. CenturyLink will waive the Termination Charge in excess of the Minimum Service Period if Customer terminates due to a move or upgrade of all or a portion of Service and all of the following conditions are met("Waiver Policy"): a) Customer must have satisfied the Minimum Service Period for the existing Service or be subject to the Termination Charge applicable to the unexpired portion of the Minimum Service Period; b) Customer must agree to a new service term and Minimum Service Period for the new service; c) The total value of the new Service must be equal to or greater than 115% of the remaining value of the Service being terminated. NRCs and Construction charges will not contribute toward the 115%calculation; Page 3 of 6 CenturyLink, Inc.All Rights Reserved CONFIDENTIAL v1.082112 CENTURYLINK INTERSTATE PRIVATE LINE AND ADVANCED NETWORK SERVICES AGREEMENT d) The request to disconnect the existing Service and the request for the new service are received by CenturyLink at the same time and both requests must reference this Waiver Policy; e) For ATM, FR, and MOE, the new Service installation due date must be within 30 days of the due date of the disconnection of the existing Service, unless the installation is delayed by CenturyLink; for SHNS, SST, GeoMax, HDTV-NET, and Optical Wavelength Service the new Service installation due date must be on or before the due date of the disconnection of the existing Service, unless the installation is delayed by CenturyLink; f) Customer agrees to pay all outstanding MRCs and NRCs for existing Service; g) The NRCs in effect at the time the Service is moved or upgraded will apply to the move or upgrade; and h) This Waiver Policy only applies to moves or upgrades to other CenturyLink services that are subject to a CenturyLink tariff or the CenturyLink RSS. 13.3 Agreement. Either party may terminate the Agreement and all Service by providing 30 days' written notice to the other party. Cause to terminate the entire Agreement for Service-related claims will exist only if Customer has Cause to terminate all or substantially all of the Services under the applicable SLA, Service Exhibit, or RSS. If Customer terminates the Agreement for Convenience or CenturyLink terminates it for Cause, then Customer will pay to CenturyLink the Termination Charges set forth in the applicable Service Exhibit(s). 13.4 Unpaid Charges. Customer will remain liable for charges accrued but unpaid as of the termination date. 14. Miscellaneous. 14.1 General. The Agreement's benefits do not extend to any third party (e.g., an End User). If any term of the Agreement is held unenforceable, the remaining terms will remain in effect. Except for time requirements as specifically stated in a Service Exhibit or SLA or in the RSS for Services that do not have an SLA), neither party's failure to exercise any right or to insist upon strict performance of any provision of the Agreement is a waiver of any right under the Agreement. The terms and conditions of the Agreement regarding confidentiality, indemnification, limitation of liability, warranties, payment, dispute resolution, and all other terms of the Agreement that should by their nature survive the termination of the Agreement will survive. Each party is not responsible for any delay or other failure to perform due to a Force Majeure Event. 14.2 Conflicts Provision. If a conflict exists among provisions within the Agreement, the following order of precedence will apply in descending order of control: Service Exhibit,the Agreement, RSS, CenturyLink records, and if applicable, CenturyLink Tech Pubs. 14.3 Independent Contractor. CenturyLink provides the Services as an independent contractor. The Agreement will not create an employer-employee relationship, association,joint venture, partnership, or other form of legal entity or business enterprise between the parties, their agents, employees, or affiliates. 14.4 ARRA. Customer will not pay for the Services with funds obtained through the American Recovery and Reinvestment Act or other similar stimulus grants or loans that would obligate CenturyLink to provide certain information or perform certain functions unless each of those obligations are explicitly identified and agreed to by the parties in the Agreement or in an amendment to the Agreement. 14.5 HIPAA. CenturyLink does not require or intend to access Customer data in its performance hereunder, including but not limited to any confidential health related information of Customer's clients, which may include group health plans, that constitutes Protected Health Information ("PHI"), as defined in 45 C.F. R. §160.103 under the Health Insurance Portability and Accountability Act of 1996 HIPAA Rules"). Any exposure to PHI will be random, infrequent and incidental to CenturyLink's provision of Service and is not meant for the purpose of accessing, managing the PHI or creating or manipulating the PHI. Such exposure is allowable under 45 CFR 164.502(a)(1)(iii). As such, if Customer is a Covered Entity or Health Care Provider under the HIPAA Rules or supports the healthcare industry, CenturyLink and Customer agree that CenturyLink is not a "Business Associate" or"Covered Entity" under the HIPAA Rules for the purposes of the Agreement. 14.6 Credit Approval. Provision of Services is subject to CenturyLink's credit approval of Customer. As part of the credit approval process, CenturyLink may require Customer to provide a deposit or other security. Additionally during the Term, if Customer's financial circumstance or payment history becomes reasonably unacceptable to CenturyLink, CenturyLink may require adequate assurance of future payment as a condition of continuing CenturyLink's provision of Services. Customer's failure to provide adequate assurances required by CenturyLink is a material breach of the Agreement. CenturyLink may provide Customer's payment history or other billing/charge information to credit reporting agencies or industry clearinghouses. 14.7 Governing Law; Dispute Resolution. a) Billing Disputes. If Customer disputes a charge in good faith, Customer may withhold payment of that charge if Customer makes timely payment of all undisputed charges when due and provides CenturyLink with a written explanation of the reasons for Customer's dispute of the charge within 90 days after the invoice date of such amount. If CenturyLink determines, in its good faith, that Page 4 of 6 CenturyLink, Inc.All Rights Reserved CONFIDENTIAL v1.082112 CENTURYLINK INTERSTATE PRIVATE LINE AND ADVANCED NETWORK SERVICES AGREEMENT the disputed charge is valid, CenturyLink will notify Customer and within five business days after CenturyLink's notification, Customer must pay the charge and accrued interest. b) Governing Law; Forum. Delaware state law, without regard to choice-of-law principles, governs all matters relating to the Agreement. Any legal proceeding relating to the Agreement will be brought in a U.S. District Court, or absent federal jurisdiction, in a state court of competent jurisdiction, in Denver, Colorado. This provision is not intended to deprive a small claims court or state agency of lawful jurisdiction that would otherwise exist over a claim or controversy between the parties. c) Waiver of Jury Trial and Class Action. Each party, to the extent permitted by law, knowingly, voluntarily, and intentionally waives its right to a jury trial and any right to pursue any claim or action relating to the Agreement on a class or consolidated basis or in a representative capacity. If for any reason the jury trial waiver is held to be unenforceable, the parties agree to binding arbitration for any dispute relating to the Agreement under the Federal Arbitration Act, 9 U.S.C. § 1, et. seq. The arbitration will be conducted in accordance with the JAMS Comprehensive Arbitration Rules. Judgment upon the arbitration award may be entered in any court having jurisdiction. d) Limitations Period. Any claim relating to the Agreement must be brought within two years after the claim arises other than Customer disputing an amount in an invoice, which must be done by Customer within 90 days after the invoice date of the disputed amount. 14.8 No Resale; Compliance. Customer must not resell the Services and its use of Services must comply with all applicable laws. 14.9 Assignment. Either party may assign the Agreement without the other party's prior written consent: (a) in connection with the sale of all or substantially all of its assets; (b) to the surviving entity in any merger or consolidation; or(c) to an Affiliate provided such party gives the other party 30 days' prior written notice. Any assignee of the Customer must have a financial standing and creditworthiness equal to or better than Customer's, as reasonably determined by CenturyLink, through a generally accepted, third party credit rating index (i.e. D&B, S&P, etc.). Any other assignment will require the prior written consent of the other party. But Customer may not assign this Agreement or any Service to a reseller or a telecommunications carrier under any circumstances. 14.10 Amendments; Changes. The Agreement may be amended only in a writing signed by both parties' authorized representatives. However, any change in rates, charges, or regulations mandated by the legally constituted authorities will act as a modification of any contract to that extent without further notice. Each party may, at any time, reject any handwritten change or other alteration to the Agreement. CenturyLink may change features or functions of its Services; for material changes that are adverse to Customer, CenturyLink will provide 30 days' prior written notice, but may provide a shorter notice period if the change is based on Regulatory Activity. CenturyLink may amend, change, or withdraw the RSS with such updated RSS effective upon posting or upon fulfillment of any necessary regulatory requirements. 14.11 Websites. References to websites in the Agreement include any successor websites designated by CenturyLink. 14.12 Required Notices. Unless otherwise provided in the Agreement, all required notices to CenturyLink must be in writing, sent to 1801 California St., #900, Denver, CO 80202; Fax: 888-778-0054; Attn.: Legal Dep't., and to Customer as provided above. All notices are effective: (a) when delivered via overnight courier mail or in person to the recipient named above; (b) three business days after mailed via regular U.S. Mail; or(c)when delivered by fax if duplicate notice is also sent by regular U.S. Mail. 14.13 Service Termination Notices. Customer must call the customer care number specified on Customer's invoice to provide notice of termination. 14.14 Entire Agreement.The Agreement, any applicable Service Exhibit, Pricing Attachment, the RSS, and Tech Pubs constitute the entire agreement between the parties and supersedes all prior oral or written agreements or understandings relating to the same Service at the same locations as covered under this Agreement. 15. Definitions. Affiliate"means any entity controlled by, controlling, or under common control with a party. Cause" means the failure of a party to perform a material obligation under the Agreement, which failure is not remedied: (a) for payment defaults by Customer, within five days of separate written notice from CenturyLink of such default; or(b)for any other material breach,within 30 days after written notice. Confidential Information" means any information that is not generally available to the public, whether of a technical, business, or other nature, (including CPNI), and that: (a) the receiving party knows or has reason to know is confidential, proprietary, or trade secret information of the disclosing party; or (b) is of such a nature that the receiving party should reasonably understand that the disclosing party desires to protect the information from unrestricted disclosure. Confidential Information will not include information that is in the public domain through no breach of the Agreement by the receiving party or is already known or is independently developed by the receiving party. Construction" means when Service may not be available due to facilities limitations and it is necessary for CenturyLink to construct facilities. Convenience"means any reason other than for Cause. CPE" means any customer premises equipment, software, and/or other materials used in connection with the Service. Page 5 of 6 CenturyLink, Inc.All Rights Reserved CONFIDENTIAL v1.082112 CENTURYLINK INTERSTATE PRIVATE LINE AND ADVANCED NETWORK SERVICES AGREEMENT CPNI" means Customer Proprietary Network Information, which includes confidential account, usage, and billing-related information about the quantity, technical configuration, type, destination, location, and amount of use of a customer's telecommunications services. CPNI reflects the telecommunications products, services, and features that a customer subscribes to and the usage of such services, including call detail information appearing in a bill. CPNI does not include a customer's name, address, or telephone number. Demarcation Point" means the CenturyLink designated: (a) physical interface between the CenturyLink Domestic Network and Customer's telecommunications equipment; or(b) physical interface between a third-party carrier connecting the CenturyLink Domestic Network to Customer's telecommunications equipment. "CenturyLink Domestic Network" means the CenturyLink operated facilities located within CenturyLink's 14-state local service area (those states are listed in the opening paragraph of the Agreement) and which consists of transport POPs, physical media, switches, circuits and/or ports that are operated solely by CenturyLink. End User" means Customer's members, end users, customers, or any other third parties who use or access the Services or the CenturyLink network via the Services. Expedite" means Customer's request to CenturyLink to provision a Service more quickly than the CenturyLink standard or negotiated interval for which an additional Expedite charge will apply. Force Majeure Event" means an unforeseeable event beyond the reasonable control of that party, including without limitation: act of God, fire, explosion, lightning, hurricane, labor dispute, cable cuts by third parties, acts of terror, material shortages or unavailability, government laws or regulations,war or civil disorder, or failures of suppliers of goods and services. Grace Period" means a period of 30 business days from the later of the Service Due Date or the date when Service is made available to the Customer, and during which the applicable Service will be held available for Customer upon Customer's request. Minimum Service Period"means 12 months following the Service Acceptance Date, as evidenced by CenturyLink records. In the case of Frame Relay,this means 6 months following the Service Acceptance Date. MRC"means monthly recurring charge. NRC"means nonrecurring charge. Pricing Attachment" means each document containing Service Rates, Term, and location-specific information, all of which are incorporated by this reference and made a part of each Service Exhibit. Rates"means the M RCs and N RCs for the Service. Regulatory Activity" is a regulation or ruling by any regulatory agency, legislative body, or court of competent jurisdiction. RSS" means CenturyLink's Rates and Services Schedule#1, incorporated by this reference and posted at: http://www.centurylink.com/tariffs/fcc gc acc rss no 1.pdf. Service Acceptance Date" means the date Customer accepts the Service and billing commences, as evidenced by CenturyLink records. Service Due Date"means the date CenturyLink makes the Service available to Customer for testing. SLA" means the service level agreement for each Service, if applicable, located at http://www.qwest.centurylink.com/legal/sla.html; SLAs are subject to change. Each SLA provides Customer's sole and exclusive remedy for Service interruptions or Service deficiencies of any kind whatsoever for the applicable Service. Not all Services have a Service-specific SLA. SONET"means Synchronous Optical Network. Taxes" means foreign, federal, state, and local excise, gross receipts, sales, use, privilege, or other tax(other than net income) now or in the future imposed by any governmental entity (whether such Taxes are assessed by a governmental authority directly upon CenturyLink or the Customer) attributable or measured by the sale price or transaction amount, or surcharges, fees, and other similar charges, that are required or permitted to be assessed on the Customer. These charges may include state and federal Carrier Universal Service Charges as well as charges related to E911, and Telephone Relay Service. Tech Pub" means each technical publication specific to a Service, all of which are located at http://www.gwest.com/techpub/ and subject to change. Each CenturyLink Service Exhibit stipulates the Tech Pub that applies to that service, if any. Termination Charge"means the termination charges detailed in the Service Exhibits. Page 6 of 6 CenturyLink, Inc.All Rights Reserved CONFIDENTIAL v1.082112 AMENDMENT TO CENTURYLINK TOTAL ADVANTAGE TM EXPRESS AGREEMENT—POM Custom THIS AMENDMENT NO. ONE (this "Amendment") by and between CenturyLink Sales Solutions, Inc. as contracting agent on behalf of the applicable CenturyLink company providing the Services under this Agreement ("CenturyLink") and Town of Avon ("Customer"), hereby amends the CenturyLink Total Advantage Express Agreement, or Qwest Total Advantage Express Agreement, as applicable, Opportunity Number 51427986 (the "Agreement"). The name of the CenturyLink operating company providing Services to Customer is listed in the Service-specific provisions for the applicable Service, each acting separately and individually responsible for all of its own obligations. Except as set forth in this Amendment, capitalized terms will have the definitions assigned to them in the Agreement. CenturyLink reserves the right to withdraw this offer if Customer does not execute and deliver the Amendment to CenturyLink before April 26, 2013. Using CenturyLink's electronic signature process for the Amendment is acceptable. All references to"Qwest Total Advantage Express"or"QTA Express"are hereby replaced with "CenturyLink Total Advantage Express." CUSTOMER: TOWN OF AVON CENTURYLINK SALES SOLUTIONS, INC. Authorized Signature Authorized Signature Name Typed or Printed Name Typed or Printed enter a space if EZ or "Director of Offer Management" if POM Title Title Date Date CenturyLink and Customer wish to amend the Agreement as follows: 1.Term and Revenue Commitment. Customer indicates below whether it is changing the length of its existing Term and/or changing the amount of its existing Revenue Commitment as set forth in the Agreement. Revenue Commitment/Initial Term: $100/3 Years Contract Code#:490130 Initial Term is: ® Existing (no changes) Revenue Commitment: N/A ® No Changes CenturyLink reserves the right to modify rates after the conclusion of each Service's minimum service period upon not less than 30 days' prior written notice to Customer; provided that CenturyLink may reduce the foregoing notice period or modify rates or discounts prior to the conclusion of the minimum service period, as necessary, if such modification is based upon Regulatory Activity. CenturyLink also reserves the right to modify rates when the Agreement renews to the rates that are in effect at that time. 2.Additional Provisions: The parties agree to add the following provisions to the Agreement. In the event the following provisions conflict in whole or in part with the terms and conditions of the Agreement, the following provisions shall control. A.No Waiver of Governmental Immunity: Nothing in this Agreement shall be construed to waive, limit, or otherwise modify any governmental immunity that may be available by law to the Town, its officials, employees, contractors, or agents, or any other person acting on behalf of the Town and, in particular, governmental immunity afforded or available pursuant to the Colorado Governmental Immunity Act, Title 24,Article 10, Part 1 of the Colorado Revised Statutes. B.Affirmative Action: CenturyLink will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. CenturyLink will take affirmative action to ensure applicants are employed, and employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. C. Article X, Section 20/TABOR: The Parties understand and acknowledge that the Town is subject to Article X, §20 of the Colorado Constitution ("TABOR"). The Parties do not intend to violate the terms and requirements of TABOR by the execution of this Agreement. It is understood and agreed that this Agreement does not create a multi-fiscal year direct or indirect debt or obligation within the meaning of TABOR and,therefore, notwithstanding anything in this Agreement to the contrary, all payment obligations of the Town are expressly dependent and conditioned upon the continuing availability of funds beyond the term of the Town's current fiscal period ending upon the next succeeding December 31. Financial obligations of the Town payable after the current fiscal year are contingent upon funds for that purpose being appropriated, budgeted, and otherwise made available in accordance with the rules, regulations, and resolutions of Town of Avon, and other applicable law. Upon the failure to appropriate such funds, this Agreement shall be terminated. N53829 amends Opportunity Number Page 1 CenturyLink, Inc. All Rights Reserved. 51427986 CONFIDENTIAL v1.022013 Contract Code: 490130 Q.ADVAN M AMENDMENT TO CENTURYLINK TOTAL ADVANTAGE TM EXPRESS AGREEMENT—POM Custom D.Employment of or Contracts with Illegal Aliens: CenturyLink shall not knowingly employ or contract with an illegal alien to perform work under this Agreement. CenturyLink shall not contract with a subcontractor that fails to certify that the subcontractor does not knowingly employ or contract with any illegal aliens. By entering into this Agreement, CenturyLink certifies as of the date of this Agreement it does not knowingly employ or contract with an illegal alien who will perform work under the public contract for services and that CenturyLink will participate in the e-verify program or department program in order to confirm the employment eligibility of all employees who are newly hired for employment to perform work under the public contract for services. CenturyLink is prohibited from using either the e-verify program or the department program procedures to undertake pre-employment screening of job applicants while this Agreement is being performed. If the CenturyLink obtains actual knowledge that a subcontractor performing work under this Agreement knowingly employs or contracts with an illegal alien, CenturyLink shall be required to notify the subcontractor and the Town within three (3)days that the Contractor has actual knowledge that a subcontractor is employing or contracting with an illegal alien. CenturyLink shall terminate the subcontract if the subcontractor does not stop employing or contracting with the illegal alien within three (3)days of receiving the notice regarding CenturyLink's actual knowledge. CenturyLink shall not terminate the subcontract if, during such three days,the subcontractor provides information to establish that the subcontractor has not knowingly employed or contracted with an illegal alien. CenturyLink is required to comply with any reasonable request made by the Department of Labor and Employment made in the course of an investigation undertaken to determine compliance with this provision and applicable state law. If CenturyLink violates this provision,the Town may terminate this Agreement, and CenturyLink may be liable for actual and/or consequential damages incurred by the Town, notwithstanding any limitation on such damages provided by such Agreement. E.Ownership of Documents: Any work product, materials, and documents produced_and deqj. t t r Li pursuant to this Agreement shall become property of the Town of Avon upon delivery and shall not be made subject to any copyright unless authorized by the Town. Other materials, methodology and proprietary work used or provided by CenturyLink to the Town not specifically created and delivered pursuant to the Services outlined in this Agreement may be protected by a copyright held by CenturyLink and CenturyLink reserves all rights granted to it by any copyright. The Town shall not reproduce, sell, or otherwise make copies of any copyrighted material, subject to the following exceptions: (1)for exclusive use internally by Town staff and/or employees; or(2)pursuant to a request under the Colorado Open Records Act, §24-72-203, C.R.S., to the extent that such statute applies; or(3)pursuant to law, regulation, or court order. CenturyLink waives any right to prevent its name from being used in connection with the Services. F.No Waiver of Rights: A waiver by any Party to this Agreement of the breach of any term or provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by either Party. The Town's approval or acceptance of, or payment for, services shall not be construed to operate as a waiver of any rights or benefits to be provided under this Agreement. No covenant or term of this Agreement shall be deemed to be waived by the Town except in writing signed by the Town Council or by a person expressly authorized to sign such waiver by resolution of the Town Council of the Town of Avon, and any written waiver of a right shall not be construed to be a waiver of any other right or to be a continuing waiver unless specifically stated. G,Binding Effect: The Parties agree that this Agreement, by its terms, shall be binding upon the successors, heirs, legal representatives, and assigns. H.Severability: Invalidation of any of the provisions of this Agreement or any paragraph sentence, clause, phrase, or word herein or the application thereof in any given circumstance shall not affect the validity of any other provision of this Agreement. 3.Miscellaneous. This Amendment will be effective as of the date it is executed by CenturyLink after the Customer's signature the "Amendment Effective Date") and will become part of the Agreement. All other terms and conditions in the Agreement will remain in full force and effect and be binding upon the parties. This Amendment and the Agreement set forth the entire understanding between the parties as to the subject matter herein, and in the event there are any inconsistencies between the two documents, the terms of this Amendment will control. N53829 amends Opportunity Number Page 2 CenturyLink, Inc. All Rights Reserved. 51427986 CONFIDENTIAL v1.022013 Contract Code: 490130 Q.ADVAN M CENTURYLINK TOTAL ADVANTAGE TM EXPRESS—AGREEMENT—Summary Page This CenturyLink Total Advantage TM Express Agreement ("Agreement") is between CenturyLink Sales Solutions, Inc. as contracting agent on behalf of the applicable CenturyLink company providing the Services under this Agreement ("CenturyLink")and Town of Avon Customer") and is effective on the date the last party signs it ("Effective Date"). The name of the CenturyLink operating company providing Services to Customer is listed in the Service-specific provisions for the applicable Service, each acting separately and individually responsible for all of its own obligations. CenturyLink reserves the right to withdraw this offer if Customer does not execute and deliver the Agreement to CenturyLink on or before March 18,2013. Customer's Address for Notices:PO Box 975,Avon,CO 81620; Customer's Facsimile Number: (970)949-9139 Person Designated for Notices: General Counsel Monthly Revenue Commitment Contributory Charges of$100(Beginning in the 4 month of the Term, Customer's failure to meet the Revenue Commitment will result in a Shortfall charge). Term Commitment(or"Term") 36 months TERMS AND CONDITIONS APPLICABLE TO ALL SERVICES Rates do not include foreign, federal, state or local taxes, surcharges, fees, EAS, Zone, CALC, or other similar charges. The rates for Local Access Service and CPE Purchase are subject to valid quote forms, which control if they conflict with the rates listed on this Summary Page,all of which are subject to change. Contributory Charges" means: (a) all monthly recurring charges ("MRCs") and usage charges for Qwest Communications Company, LLC, d/b/a CenturyLink QCC (other than Local Access Service) and/ or Qwest Corporation d/b/a CenturyLink QC Services ordered under the Agreement after the Effective Date and incurred during the Term; and (b) all MRCs and usage charges for CenturyLink QC Contributory Services ordered before or after the Effective Date under separate agreements and incurred during the Term. CenturyLink QC Contributory Services"means the following services that are provided by CenturyLink QC: Centrex,Centron®,Analog Trunks, Digital Switched Service, ISDN Services, Uniform Access Solution, SHARP, Business local exchange lines (e.g., CenturyLink Choice TM Business packages), CenturyLink TM High-Speed Internet, ATM (IntraLATA), Frame Relay (IntraLATA), Analog Private Line, DS1, DS3, SST, Optical Wavelength Service, SHNS, Geomax®, Metro Ethernet, and directory services. Contributory Charges do not include non-recurring charges ("NRCs"), CPE, Taxes, pass-through, worldcard® payphone surcharges, other surcharges, issued credits,any charges for Local Access Services,or other charges notspecified as Contributory Charges under the Agreement."Shortfall" is the difference between the Revenue Commitment and Customer's Contributory Charges paid during a Measurement Period. Unless specified otherwise in the Service specific provisions,CenturyLink QCC Services will receive the applicable rates specified in the Summary Page or valid Order Form for the longer of the Term Commitment or a Service's individual service term. After the expiration of the Term Commitment, this Agreement will renew on a month-to-month basis. CenturyLink reserves the right to modify CenturyLink QCC Service rates to the month-to-month rates upon the later of the renewal of the Agreement or the expiration of that Service's individual service term. CenturyLink QC Services will receive the applicable rates specified in the Summary Page for the duration of that Service's individual service term and will renew at the rate and for the term specified in the applicable Tariff, RSS, or Service- specific provision. Separate CenturyLink Offerings. Provisions that are applicable to a specific CenturyLink company are so indicated. Al general provisions are applicable to services provided bythe CenturyLink company providing the Services under this Agreement. Services. This Agreement governs Customer's purchase of the services listed on the Summary Page or an Order Form ("Services"). Additional terms found at http://gwest.centuryLink.com/legal gctae/DTC/v36.pdf apply and are incorporated by reference Detailed Terms and Conditions" or"DT&C"). Customer understands that the DT&C contain additional important terms and conditions that apply to the Services, including, among other things, confidentiality obligations, disclaimer of warranties, indemnification, shortfall charges,minimum service terms,early term ination charges,emergency 911 limitations,and jury-trial and class-action waiver. Payment.Customer must pay all charges within 30 days of the invoice date except for CenturyLink QC charges,which Customer must pay by the due date on the invoice. Charges not paid by their due date are subject to late payment charge of the lesser of 1.5% per month or the maximum rate allowed by law or required by Tariff. In addition to payment of charges for Services, Customer must also pay CenturyLink any applicable Taxes (which is defined in the DT&C and may include surcharges,fees,and other similar charges)assessed in connection with Services. Customer's payments to CenturyLink must be in the form of electronic funds transfer (via wire transfer or ACH),cash payments (via previously-approved CenturyLink processes only),or paper check. Disclaimer of Warranties. EXCEPT AS EXPRESSLY PROVIDED IN THE AGREEMENT, ALL SERVICES AND PRODUCTS ARE PROVIDED "AS IS."CENTURYLINK DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR APARTICULAR PURPOSE,AND NON-INFRINGEMENT. Limitations of Liability. The remedies and limitations of liabilityfor anyclaims arising between the parties are set forth below. a) Consequential Damages. NEITHER PARTY OR ITS AFFILIATES, AGENTS, OR CONTRACTORS IS LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES OR FOR ANY LOST PROFITS, LOST REVENUES, LOST DATA LOST BUSINESS OPPORTUNITY, OR COSTS OF COVER. THESE LIMITATIONS APPLY REGARDLESS OF THE LEGAL THEORY UNDER WHICH SUCH LIABILITY IS ASSERTED AND REGARDLESS OF FORESEEAB ILITY. b) Claims Related to Services. For Customer's claims related to Service deficiencies or interruptions,Customer's exclusive remedies are limited to: (a)those remedies set forth in the SLA for the affected Service or (b) the total MRCs or usage charges paid by Customer for the affected Service in the one month immediately preceding the event giving rise to the claim if an SLAdoes not apply. Opportunity ID:51427986 Page 1 of 4 CenturyLink, Inc. All Rights Reserved. Contract Code:490130 CONFIDENTIAL CGT R.06.012213 CENTURYLINK TOTAL ADVANTAGE TM EXPRESS—AGREEMENT—Summary Page c) Personal Injury; Death; Property Damages. For claims arising out of personal injury or death to a party's employee, or damage to a parts real or personal property, that are caused by the other party s negligence or willful misconduct in the performance of the Agreement,each party's liability is limited to proven direct damages. d) Other Direct Damages. For all other claims arising out of the Agreement, each party's maximum liability will not exceed in the aggregate the total MRCs and usage charges paid by Customer to CenturyLink under the Agreement in the three months immediately preceding the event giving rise to the claim ("Damage Cap"). The Damage Cap will not apply to a parts indemnification obli gations or Customer's payment obligations under the Agreement. Entire Agreement. This Agreement, including the Summary Page, DT&C version 36 found at http://gwest.centuryLink.com//egal gctae/DTC/v36.pdf, any other provisions for Bundles, Packages or Other Offers identified in this Summary Page ("Other Provisions"), and any CenturyLink-accepted Order Forms constitute the entire agreement between the parties and supersede all prior oral or written agreements or understandings relating to this subject matter. This Agreement supersedes all prior oral or written agreements or understandings relating to the same service, ports, or circuits at the same locations as covered under this Agreement. Definitions. Capitalized terms are defined in the DT&C. The following Services are incorporated into the Agreement: DATA BUNDLE OFFER PRICING The following additional terms and conditions apply to Data Bundle Solutions, and are incorporated herein by reference: The Data Bundle Solution Provisions found at http://gwest.centurylink.com/le.alq /rmgctae/databundle/v1.pdf, and the General Terms Applicable to All Services, CenturyLink IQ Networking, Local Access and Rental CPE sections in the Detailed Terms and Conditions at: http://gwest.centuodink.com/le.aql/rmgctae/DTC/v36.pdf. The CPE Rental term and each Data Bundle Port and Local Access circuit receiving Data Bundle Pricing will be subject to the Service Term set forth in the applicable pricing table. "NBD Maintenance"means next business day remote maintenance. Local Access MR Cs will be determined by the Product Pricer Quoting Tool. CenturyLink IQ Networking Port NRCs and Local Access NRCs are waived. CenturyLink will also waive the SIG Activation NRC for Enhanced Port when provided through CenturyLink IQ TM Data Bundle Solutions. If Customer wishes to order a Data Bundle Solution that is not shown in the pricing tables below, Customer must enter into a separate written amendment that includes the applicable Data Bundle Solution. Keyto the symbols used in the following tables: The Internet Port, Private Port or Enhanced Port Data Bundle Port MRC will be used to calculate Contributory Charges. The Customer's location must qualifyfor on-site maintenance. Only available on a 36 month Service Term. If the 5 Mbps ELA circuit qualifies for the In-Region iQDBELAIR pricing, the Local Access MRC is $585. If not, the MRC will be determined bythe Product Pricer Quoting Tool. Data Bundle Standard and Pro 36 Month Service Term; 8x5 NBD Maintenance Ethernet Data Bundle Port MRCMvOaso E c Includes Port and Fae ntal CPE L a U cn Internet* Private* Enhanced*m 5 Mbps# Adtran N/A Standard N/A N/A N/A DB P1 Pro 280 322 370 10Mbps Adtran N/A Standard N/A N/A N/A DB P1 Pro 400 460 529 20Mbps Adtran N/A Standard N/A N/A N/A DB P1 Pro 440 506 582 30Mbps Adtran N/A Standard N/A N/A N/A DB P1 Pro 560 644 741 40Mb s Adtran N/A Standard N/A N/A N/A p DB P1 Pro 740 851 979 50Mbps Adtran N/A Standard N/A N/A N/A DB P1 Pro 820 943 1,084 60Mbps Adtran N/A Standard N/A N/A N/A DB P1 Pro 900 1,035 1,190 Opportunity ID:51427986 Page 2 of 4 CenturyLink, Inc. All Rights Reserved. Contract Code:490130 CONFIDENTIAL CGT R.06.012213 CENTURYLINK TOTAL ADVANTAGE TM EXPRESS—AGREEMENT—Summary Page 70Mbps Adtran N/A Standard N/A N/A N/A DB P1 Pro 950 1,093 1,256 80Mbps Adtran N/A Standard N/A N/A N/A DB P1 Pro 1,000 1,150 1,323 90Mbps Adtran N/A Standard N/A N/A N/A DB P1 Pro 1,050 1,208 1,389 100Mbps Adtran N/A Standard N/A N/A N/A DB P1 Pro 1,100 1,265 1455 Mail Bagging. Description MRC Mail Bagging 50.00 per Port As of the Agreement Effective Date, Centuryl-ink is waiving the Mail Bagging MRC so long as Customer is not in default of any obligations under the Agreement. Centuryl-ink may discontinue waiving the MRC at any time without prior notice. Waived MRCs do not contribute to the Revenue Commitment under the Agreement. End to End Performance Reporting. The following MRC is in addition to each Private Port or Enhanced Port's MRC. Description MRC End to End Performance Reporting 25.00 per Port VPN Extensions. The following MRC is in addition to each Private Port or Enhanced Port's MRC. Description MRC NRC VPN Extensions 25.00 per IPsec tunnel 25.00 per IPsec tunnel Secure IP Gateway. Description NR Secure IP Gateway Activation Fee 200.00 per each Enhanced Port This space intentionally left blank. The Agreement continues on the next page. --------------------- Opportunity ID:51427986 Page 3 of 4 Centuryl-ink, Inc. All Rights Reserved. Contract Code:490130 CONFIDENTIAL CGT R.06.012213 CENTURYLINK TOTAL ADVANTAGE TM EXPRESS—AGREEMENT—Summary Page Local Access The following additional terms and conditions apply to Local Access Service, and are incorporated herein by reference: the General Terms Applicable to All Services and Local Access sections in the Detailed Terms and Conditions at: hftp://gwest.centuodink.com/le!qal/rm cictae/DTC/v36.pdf. NPA/NXX(s) Type of Local Access Minimum Service Term Circuit Net Rate M RC Install NRC Per Service)or Offer Speed (Per Service)Per Service) Minimum Term (Per Service) 970949 CO Meet Point 36 Months 10 Mbps 0 0 NRC Customer may order additional Local Access Services which are not specified above for a specific NPA/NXX. Each additional Se rvice ordered during the Term must include a valid CenturyLink quote form that specifies the applicable Local Access MRC and NRC per Service. No other discounts or promotions apply. Certain types of Service have separate service or agreement requirements as defined in the General Terms Attachment and DT&C. RENTAL CPE PRODUCTS AND SERVICES The following additional terms and conditions apply to Rental CP E Products and Services, and are incorporated herein by reference: the General Terms Applicable to All Services and Rental CPE sections in the Detailed Terms and Conditions at: http://gwest.centuodink.com/le.aql/rm ictae/DTC/v36.pdf. Customer is renting CPE Products and Services under this Agreement for use with any of the following services ordered under this Agreement: CenturyLink IQ Networking, Data Bundle Solutions, Integrated Access Package, Managed VOIP, Managed VoIP Bundle, SIP Trunk, SIP Trunk bundles or Core Connect Enterprise Packages. The pricing for Rental CPE Products and Services ordered under this Agreementwill be itemized on a Rental CPE Rate Attachment or Promotional Attachment(if applicable)subject to this Agreement. By signing,Customer agrees that its purchase of CenturyLink Services is governed by the additional terms and conditions of the DT&C version 36 found at http://gwest.centuWink.com/le,alq /rm ictae/DTC/v36.pdf and any Other Provisions, all of which Customer has reviewed or will review promptly. Customer acknowledges that it may cancel this Agreement within 5 days of its Effective Date without Early Termination Charges or Cancellation Charges (except where prohibited by an applicable CenturyLink QC Tariff), and that its failure to cancel and continued use of the Services beyond 5 days constitutes acceptance of the Detailed Terms and Conditions and any Other Provisions. Using CenturyLink's electronic signature process for the Agreement is acceptable. CUSTOMER: Town of Avon CENTURYLINK SALES SOLUTIONS, INC. Authorized Signature Authorized Signature Name Typed or Printed Name Typed or Printed Title Title Date Date Opportunity ID:51427986 Page 4 of 4 CenturyLink, Inc. All Rights Reserved. Contract Code:490130 CONFIDENTIAL CGT R.06.012213 CENTURYLINK INTERSTATE PRIVATE LINE AND ADVANCED NETWORK SERVICES AGREEMENT INTERSTATE METRO ETHERNET SERVICE EXHIBIT PRICING ATTACHMENT Town of Avon Unk Contract Number new Service expires 36 months from the Service Acceptance Date ("Service Term").* When Customer renews Service on a Pricing Attachment with no Service changes, the Service Term in the previous sentence and the above Unk Contract Number are the sole entries that need to be completed. When Customer changes Service under an amended Pricing Attachment, the Unk Contract Number needs to be completed in addition to the other information. The initial Service purchased by Customer requires a specific number of months indicated in the Service Term in the previous paragraph. In cases where subsequent additions and changes to Service do not require a new Service Term, "Coterminous"should be selected as the Service Term in the previous paragraph and those additions and changes will be coterminous with the Service associated with Content ID insert Content ID of initial service. COCC MRC required for Central Office design) EwET Customer Interface MRC) Show N/A, if an MRC does not apply) EwET Cus- Band-Band- Port Speed tomer width width MRC NRC per COCC MRC Interface Location(Address,City,State) Profile per each Port Speed each MRC NRC MRC 1 Lake St.,Avon,CO 81620 20 Mbps 822 10/100 Mbps $0 500 Swift Gulch Rd,Avon,CO 81620 10 Mbps 621 10/100 Mbps $0 SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ SELECT $ Optional Features for Metro Ethernet: Diversity(only Protect Routing MRC QoS/CoS—MBPS Multiple EVCs applies to locations only applies to the Required(only Quantities(only showing an MRC) locations showing an applies to locations applies to locations Location(Address,City,State) MRC) showing an MRC) showing an MRC) MRC NRC 1 Lake St.,Avon,CO 81620 40 50 500 Swift Gulch Rd,Avon,CO 81620 40 Page 1 CenturyLink, Inc.All Rights Reserved. CONFIDENTIAL v1.080811 TOWN COUNCIL REPORT To: Honorable Mayor and Town Council From: Gary Padilla, Road and Bridge Superintendent Date: April 3, 2013 Agenda Topic: Resolution 12-13 Right-of-Way Use Fees On January 10, 2006, Town Council approved Resolution 06-01 Revising Fee Schedule for Zoning, Construction Work within the Public Ways, Subdivision and Design Review Applications, Town of Avon, Eagle County, Colorado. Staff is recommending at this time the Construction Work within the Public Ways Fee Schedule (Fee Schedule) be amended. Fees are intended to cover the cost of Town staffs’ time in the acceptance, review, approval and supervision of work within the Town right-of-way by parties other than Town of Avon employees or agents. The Road and Bridge department typically averages about 45 right-of- way permits per year, including permits for utility installation such as repairs for water, gas, phone and cable. The Fee Schedule for the past six (6) years has been questioned by numerous local contractors, utility companies and private property owners as being too high especially when compared to other municipalities in the region. Town staff has contacted the Towns of Vail, Frisco and Snowmass and compared Avon’s current fees. While each entity uses different scales and types of work for calculating their fee schedule, Justin Hildreth, Town Engineer, and I found that Avon’s fees are significantly higher than these towns. Justin worked with me to estimate what we felt the appropriate fee should be to cover Town costs. Over this next year, Town staff periodically will track our actual time spent on right-of- way permitting and administration, however, with the need to provide permits by April 15th to contractors, we are recommending the fees be revised as provided for in Resolution 13-12. I am attaching a redline of the current fees and proposed changes. [See Attachment 1] An average of $42,000 was collected by the Town over the past two years for right-of-way permits. The 2013 budget is $35,00 in permit fee revenue. I am estimating that collections may fall as much as 50% with the lower recommended fees. RECOMMENDATION: Council, by motion and vote, approve Resolution 13-12. ATTACHMENT 1 Redline of Changes TOWN OF AVON RIGHT-OF-WAY USE FEE SCHEDULE 20121 BASE PERMIT $250.00 USE FEES Temporary contractor parking or staging $100.00 per residential building permit each parcel frontage Bollard removal/relocation $100.00/bollard Extra field inspection $ 35.00 75.00 each Independent Inspection/Testing/Report Review $ 20.00 each test or report Traffic control plan review $ 50.00 flat fee Stop work/Late application $250.00/occurrence[GP1] Lane / Trail Closures $0.15 0.50/LF/day, each laneApril 15 to Nov. 15 and to $1.00 off season EXCAVATION / CUT FEES Permanent paved driveway installation/re-pave $75.00 each Cuts to asphalt or concrete road pavements $ 75.00/LF or SF, whichever is less[GP2] Cuts to brick pavers, decorative concrete, or other special surface $150.00/LF or SF, whichever is less Sidewalk panel work $25/panel Cuts to non-paved surface, road prism, landscaping $25/ LF or SF, whichever is less Utility bores (no pavement cut) $50.00/location Ditch Re-grading/Restoration $ 75.00 each parcel Curb and gutter cuts/repair $3.00/LF 1. NOTES A. Public Works administers the ROW Use Permit program under AMC 12.04; authority to establish fees is set forth in ACM 12.04.110(a) and (b). B. ROW Use Permits are administered annually on a per-parcel basis; a separate permit must be obtained for each impacted parcel or parcel frontage each calendar year. C. The base permit fee includes grading of one storm ditch, one (1) temporary unpaved driveway installation, and up to 2 site inspections by Public Works staff. D. Excavation cut fees cover cost for daily monitoring, inspection of compaction and restoration, review of 1 set of test cylinders or break reports for new pavement, degradation fee, and management of surety deposit. E. A surety is required for all excavation and pavement cuts in the public ROW in accordance with AMC 12.04.280. This surety must take the form of cash or a letter of credit from a local bank, unless the applicant is already under contract with the Town to perform work under a bonded design or construction contract. The Public Works Director, or his/her designated administrator, will set the amount of surety which must be at least $2,000 in accordance with AMC 12.04.280. F. Temporary contractor parking or staging in the public ROW may be allowed on a case-by-case basis with an approved parking and traffic control plan. Fee covers cost for daily monitoring and coordination with Avon Police Department staff. G. Lane, sidewalk, or trail closures of the public ROW may be allowed on a case-by-case basis with an acceptable traffic control plan. Fee covers cost for daily monitoring, sign adjustments, and notification to public and emergency services. ATTACHMENT 1 Redline of Changes H. The Applicant remains responsible for restoration of the work area to the satisfaction of the Town. I. The issuance of a stop work order or discovery of work started without a permit is cause for additional fee. TOWN OF AVON, COLORADO RESOLUTION NO. 13-12 SERIES OF 2013 A RESOLUTION REVISING THE FEES SCHEDULE FOR CONSTRUCTION WORK WITHIN PUBLIC RIGHT-OF-WAY, TOWN OF AVON, EAGLE COUNTY, COLORADO WHEREAS, the Town Council may enact and update fee schedules to accurately refelect the cost of labor and overhead involved with all application processes as stipulated in Title 12 (Streets, Sidewalks and Public Places), and WHEREAS, the Town Council wishes to update the Town of Avon Right-of-Way Use Fee Schedule setting the fees for applications received for work on or after April 15, 2013. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: The Town Council hereby adopts the following Town of Avon Right-of-Way Use Fee Schedule as set forth and incorporated herein as “Exhibit A to Resolution 13-12”, setting fees for review and processing of the construction work within public ways applications. ADOPTED THIS 9th DAY OF APRIL, 2013. TOWN COUNCIL TOWN OF AVON, COLORADO __________________________ Rich Carroll, Mayor ATTEST: _____________________ Patty McKenny, Town Clerk TOWN OF AVON RIGHT-OF-WAY USE FEE SCHEDULE EFFECTIVE APRIL 10, 2013 Town of Avon Resolution13-12 BASE PERMIT $250.00 EXCAVATION / CUT FEES Cut to asphalt or concrete road pavements 30 SF cut is included in base permit fee anything larger is $6.00 SF Permanent paved driveway installation/re-pave $75.00 each Cut to concrete or other special surface $ 10.00 SF Cut to brick pavers, decorative concrete, or other $150.00/LF or SF, whichever is less special surface Utility bores (no pavement cut) $50.00 per location Curb and gutter cut/repair $ 3.00 LF Sidewalk panel repair $ 25.00 per panel USE FEES Temporary contractor parking or staging $100.00 per residential building permit Extra field inspection $ 35.00 each Lane / Trail Closures $0.15/LF April 15-November 15 $1.00/LF off season Stop work/Late application Fines up to $1,000 per day per AMC 12.040 & 1.09 NOTES: A. Avon’s Road and Bridge Division, on behalf of Public Works, administers the ROW Use Permit program under AMC 12.04; authority to establish fees is set forth in ACM 12.04.110(a) and (b). B. ROW Use Permits are administered annually on a per-parcel basis; a separate permit must be obtained for each impacted parcel or parcel frontage each calendar year. C. The base permit fee includes grading of one storm ditch, one (1) temporary unpaved driveway installation, and up to two (2) site inspections by Road and Bridge staff or the Town Engineer. D. Excavation cut fees cover cost for daily monitoring, inspection of compaction and restoration, review of one (1) set of test cylinders or break reports for new pavement, degradation fee, and management of surety deposit. E. A surety is required for all excavation and pavement cuts in the public ROW in accordance with AMC 12.04.280. This surety must take the form of cash or a letter of credit from a local bank, unless the applicant is already under contract with the Town to perform work under a bonded design or construction contract. The Road and Bridge Superintendent , or his/her designated administrator, will set the amount of surety which must be at least $2,000 in accordance with AMC 12.04.280. The security deposit is held for a minimum of two (2) years from the date of final inspection per AMC 12.04.280. F. Temporary contractor parking or staging in the public ROW may be allowed on a case-by-case basis with an approved parking and traffic control plan. Fee covers cost for daily monitoring and coordination with Avon Police Department staff. G. Lane, sidewalk, or trail closures of the public ROW may be allowed on a case-by-case basis with an acceptable traffic control plan. Fee covers cost for daily monitoring, sign adjustments, and notification to public and emergency services. H. The Applicant remains responsible for restoration of the work area to the satisfaction of the Town. I. The issuance of a stop work order or discovery of work started without a permit is cause for additional fee. TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Jared Barnes, Planner I Date: Friday, April 5, 2013 Agenda Topic: Second Reading of Ordinance 13-05, Approving A Minor PUD Amendment and Minor Subdivision for Lots 33 and 34, Block 4, Wildridge Subdivision Summary of Requests The Applicant, Dominic Mauriello of Mauriello Planning Group, representing the owner, Mountain C.I. Holdings LTD, has submitted a Minor PUD Amendment, Minor Subdivision, and Variance Applications (“the Application”). The Application requests a Minor Amendment to the Wildridge PUD to modify two (2) duplex lots, Lots 33 & 34, Block 4, Wildridge Subdivision (“the Property”), into three (3) single-family lots, Lots 1-3, Wildridge Point Subdivision. Included with this report are a Vicinity Map (Attachment A), Application Materials dated January 28th, 2013 (Attachment B), Public Comment (Attachment C), Revised Application Materials dated February 25th, 2013 (Attachment D), Revised Application Materials dated March 19th, 2013 (Attachment E), PZC Findings of Fact, Record of Decision, and Recommendation (Attachment F), and Ordinance 13-05 (Attachment G). Update At their March 26th, 2013 meeting, the Town Council discussed the policy regarding PUD amendments within the Wildridge Subdivision and how the various Steep Slope requirements should apply to these existing platted lots. Through their discussion and approval of Resolution 13-11, the Town Council determined that the various Steep Slope requirements of the Municipal Code should not apply to existing platted lots. At that meeting the Town Council also approved the first reading of Ordinance 13-05, Approving a Minor PUD and Minor Subdivision for Lots 33 and 34, Block 4, Wildridge Subdivision (Attachment G). Staff has prepared this report for the second reading of Ordinance 13- 05. Application Process (§7.16.020, AMC) Public Notification In order to comply with the Public Hearing and pertinent noticing requirements, a mailed notice was provided to all property owners within 300’ of the property. In addition, a notice was published in the Vail Daily newspaper on Friday, March 15, 2013. Public Hearings Each of the separate requests within the Application has different review criteria. The Planning and Zoning Commission (PZC) is responsible for review and rendering a decision on the Variance Application. The PZC reviews the PUD Application and provides a recommendation to the Town Council after conducting a public hearing, as discussed below. The Minor Subdivision is reviewed and acted upon by the Town Council after holding a public hearing. Lots 33-34, Block 4, Wildridge – Wildridge Point PUD and Subdivision Page 2 The PZC held a public hearing at their February 5th, 2013 meeting and continued the item to the March 5th, 2013 meeting. The PZC made a recommendation on the Minor PUD Amendment with conditions affecting the Minor Subdivision to the Town Council for Final Action, which is included as Attachment F, and will be discussed later in this report. The Town Council held a public hearing at their March 26th, 2013 meeting for the Application. PUD Process In the fall of 2012, the Applicant approached the Town inquiring about the process for a Minor PUD amendment for parcels within the Wildridge Subdivision. The Town produced a letter for the applicant stating that such request would be processed under Section 7.16.060(h), Amendments to a Final PUD. This section refers to Section 7.16.020(g), Minor Amendments, which is allowed so long as the application does not result in a change to the housing mix. This section also allows the Community Development Director to render a decision on a Minor Amendment so long as there is not a material change to the approved development application. Staff determined that the proposed Application did not result in a change to the housing mix, but did result in a material change to the approved development Application, and as such, the Director referred the Application to both the PZC and Town Council for public hearings. Background Benchmark Properties created the Wildridge Subdivision in 1979, shortly after the incorporation of the Town of Avon on February 28, 1978. The Plat was amended a few times with the most recent version being “Wildridge Replat No. 2”. According to the Wildridge Final Plat for Wildridge and Wildwood Subdivisions (currently Mountain Star PUD and Subdivision), the overall development concept was for “abundant open space recreation areas around lots” with a density of “barely one dwelling unit per acre”. Proposed Application The Application proposes to convert two (2) duplex lots into three (3) single-family lots. In order to process this request, Town Staff determined that three (3) separate applications are required as follows: (1) a Minor PUD Amendment application; (2) a Minor Subdivision application; and, (3) a Variance application. The Minor PUD Amendment and Minor Subdivision are required to change the zoning of the two (2) existing lots and plat three (3) new lots, while the Variance is required to allow for development on slopes in excess of forty percent (40%) and to allow for a building envelope to include area in excess of thirty percent (30%). Each of these requests will be discussed as a whole in the forthcoming sections of this memo. PZC Review The PZC held two (2) public hearings for the proposal on February 5th, 2013 and March 5th, 2013. They discussed the proposed Application with respect to the existing zoning, impacts on the property, public input, and compliance with the applicable codes. At their February 5th, 2013 meeting, the PZC ultimately requested additional information regarding building footprint sizes and illustrations representing the potential development from Wildridge Road. The Applicant provided revised drawings to respond to the PZC comments and a response to the Colorado Geologic Survey’s (CGS) concerns in their resubmission dated February 25th, 2013 and attached to this memo as Attachment D. The PZC also requested additional information regarding the intent of the Steep Slopes section, when discussed during the Development Code adoption by Town Council. Staff reviewed the minutes of those Lots 33-34, Block 4, Wildridge – Wildridge Point PUD and Subdivision Page 3 meetings and was unable to determine the exact discussion, but generally speaking the Town Council viewed amendments to the Wildridge PUD as a resubdivision not a new subdivision, but failed to address the PUD or Zoning Amendment aspect of the applicability section. Staff recommended the PZC act on a Variance request through one (1) of two (2) draft resolutions; a denial as recommended by Staff; or, approval as the PZC directed Staff to prepare. Through their review, the PZC determined that a Variance was not warranted because the Application was a re-subdivision and not a new subdivision, therefore, it did not meet the applicability criteria. Ultimately the PZC approved a “Findings of Fact, Record of Decision, and Recommendation” (Attachment F) with twelve (12) Findings and two (2) conditions. The conditions are as follows: 1. The Building footprint on Lot 2 shall be limited to 3,000 gross sq. ft. (including garage) and the building footprint on Lot 3 shall be limited to 2,500 gross sq. ft. (including garage) and, 2. The above mentioned condition shall be included on the Final Plat for the Wildridge Point Subdivision as a plat note. Variance Application As discussed above, the Variance Application was not acted upon by the PZC and that lack of decision was appealed by the applicant for action at the March 26th, 2013 Town Council Meeting. The Town Council discussed and conditionally approved Resolution 13-11 for a variance for the subject property. The approval of Resolution 13-11 granted a variance from Section 7.32.020(e)(6), Buildable Area, and Section 7.32.020(e)(7), Building Envelopes and conditioned upon final approval of Ordinance 13-05 (Attachment G). Planning Analysis The original Wildridge “Specially Planned Area” (now considered a “PUD” by default) and the accompanying Subdivision plat were established with a specific purpose and intent: to offer a diverse range of housing types and options to serve a diverse local population. As such, the housing types in the Wildridge PUD and Plat are diverse: single-family homes, duplexes, triplexes, four-plexes, and other forms of multi- family structures because the housing needs of the local population were, are, and continue to be diverse. At their February 5th, 2013 meeting, the PZC discussed the purpose of the Wildridge PUD and the intent of the accompanying plat were discussed. The PZC determined the proposed PUD Amendment would not significantly alter the housing types provided for in the original PUD and Plat due to the location of the property along with the anticipated development pattern that would occur on the site. When a multi-family structure, or a duplex, gets “down-zoned” to separate single-family houses, the corresponding site disturbance with such a configuration increases proportionally with each newly separated-out unit (individual excavation for each foundation, impervious surfaces, roof forms, site retaining, etc). The Colorado Geologic Survey (CGS) commented on the potential for increased site disturbances in their public comment (Attachment C). The Applicant responded to these concerns through their proposed revisions in Attachment D. These revisions show potential designs of limited building footprint sizes ranging from 2,500 to 3,500 square feet. These building footprint limitations also show potential driveway locations and preliminary grading and site retention for the driveways. As stated earlier, the PZC analyzed these options and recommended a 3,000 sq. ft. cap for Lot 2 and a 2,500 sq. ft. cap for Lot 3. Lots 33-34, Block 4, Wildridge – Wildridge Point PUD and Subdivision Page 4 Over the years, there have been amendments wherein development rights have been altered and replatted through the PUD and Subdivision process. The most recent amendment was for the Dry Creek PUD in Block 2 of the Wildridge subdivision, wherein a four-plex lot was converted to three (3) single-family residences. This PUD amendment was also predicated on approval of a subdivision variance, and reduced the number of dwelling units by one (1) and limited the maximum site coverage allowed per lot. Other PUD Amendment approvals include: Western Sage PUD in Block 4; Point View PUD in Block 1; Wildridge Acres in Block 2; and, Lots 42 & 43 in Block 4. Each of these examples provided multiple public benefits including, but not limited to: loss of at least a single development right; platted non-developable areas; capped unit size; and/or, maximum footprint size. In each case, these PUDs were approved prior to the inclusion of the Public Benefit Criteria being added to the PUD review criteria and prior to the adoption of the Avon Development Code. The Property, as platted and zoned today, can be developed with either two (2) duplex structures, two (2) single-family structures, or one (1) duplex structure and one (1) single-family structure. The Application proposes to amend these development rights by creating a new PUD and Subdivision within the Wildridge PUD, called “Wildridge Point”. As is exhibited on page 8 of Attachment B, the new lots will meet the minimum lot size standards for the Residential Low Density (RLD) zone district and the Wildridge Subdivision. Page 3 of the proposed Final Plat (Exhibit A to Ordinance 13-05 (Attachment G)) shows the topographic map, shading areas that exceed forty percent (40%) in slopes. As seen on this survey, a majority of Lot 34 is developable with areas less than forty percent (40%) slope, while a majority of Lot 33 contains areas exceeding forty percent (40%) slope. Upon further review of the survey, some of the area that exceed forty percent (40%) slope approaches sixty percent (60%) slope within the proposed developable area, with some of the areas exceeding seventy percent (70%) slope in the proposed “non- developable” area. In summary, a vast majority of Lot 33 is extremely steep. The Wildridge Point subdivision will also plat “non-developable” areas on each new lot. The proposed “non-developable” areas encompass the downhill portions of the lots and likely areas that would not be affected by the existing or proposed style of development, due to the existence of a thirty foot (30’) wide utility easement. Previously, Staff raised concerns about Plat Note #4 which set forth the types of development that cannot occur in “non-developable” areas by limiting it to “buildings, fences, signs, and roads”. The Applicant has addressed this issue with a revised Final Plat and limited all forms of development from the non-developable areas unless approved by the Town. The proposed subdivision also includes a no-build/view easement on proposed Lot 1. This easement is for the benefit of the neighboring property to the west: Lot 35, Block 4, Wildridge. It is governed by Plat Note #5 and states that berming and landscaping may occur in this area only with written approval from the owner of Lot 35. Through the PZC review a recommendation was made to limit the building footprints on Lots 2 and 3 to 3,000 gross sq. ft. and 2,500 gross sq. ft. respectively, inclusive of garage area. The applicant has agreed to this restriction and included it as Plat Note #6. Additional Staff analysis will be included in the Staff response to each individual review criteria. Lots 33-34, Block 4, Wildridge – Wildridge Point PUD and Subdivision Page 5 Review Criteria - PUD Pursuant to §7.16.060(e)(4), Review Criteria, AMC, the PZC and Town Council shall consider a number of review criteria when evaluating this Application. The following criteria must be considered when forming the basis of a recommendation or decision on a PUD plan: (i) The PUD addresses a unique situation, confers a substantial benefit to the Town, and/or incorporates creative site design such that it achieves the purposes of this Development Code and represents an improvement in quality over what could have been accomplished through strict application of the otherwise applicable district or development standards. Such improvements in quality may include, but are not limited to: improvements in open space provision and access; environmental protection; tree/vegetation preservation; efficient provision of streets, roads, and other utilities and services; or increased choice of living and housing environments. Staff Response: The Application is to modify existing platted lots within the Wildridge PUD. The Application states that the proposed no-build zone, reduction in density, development pattern ensuring light and air between the structures, and smaller building footprints are a public benefit as stated on pages 17-18 of Attachment B. Staff agrees with this determination in light of the revisions provided in Attachment D. The reduction in density coupled with the limitation on maximum building footprint size will likely reduce the impacts on the land by not allowing the lots be developed with side-by-side or “coast-to-coast” structures. The inclusion of non-developable areas and limitations on building footprint sizes create a de facto building envelope, but afford the property owner some flexibility in the location of the structures once detailed access design and building design are pursued. These limitations also ensure that the proposed increase in light and air between structures will be achieved. The Applicant has agreed to the PZC recommended limitations for maximum building footprint sizes of 3,000 sq. ft. for Lot 2 and 2,500 sq. ft. for Lot 3. Staff is of the opinion that these sizes are suitable for the subject lots and based on the potential development pattern, illustrated in Attachment D, the proposed public benefits can be achieved. The Application does not ensure that the total size of the structures will be of a smaller size than duplex structures or that they will utilize less water rights (SFEs) than duplexes, but the inclusion of maximum building footprint sizes will provide a clearer understanding of the maximum bulk of the structures on Lots 2 and 3. Ultimately the public comments (Attachment C) by the Eagle River Water and Sanitation District (ERWSD) will need to be addressed if a building permit is requested for a structure exceeding 3,000 sq. ft. or the equivalent square footage of an SFE at the time. (ii) The PUD rezoning will promote the public health, safety, and general welfare; Staff Response: The current allowed development rights and the proposed development rights will create the same ongoing impacts, with respects to this criterion, for the immediate neighborhood and Wildridge as a whole. (iii) The PUD rezoning is consistent with the Avon Comprehensive Plan, the purposes of this Development Code, and the eligibility criteria outlined in §7.16.060(b); Staff Response: The proposed PUD amendment appears to generally comply with the Avon Comprehensive Plan. The Application complies with the Future Land Use Plan by modifying the zoning to a development pattern, single-family residences, which is allowed within the RLD zone district. Furthermore, the proposed average density of one and a quarter (1.24) complies with the maximum Lots 33-34, Block 4, Wildridge – Wildridge Point PUD and Subdivision Page 6 allowed in the RLD zone district. The following policies of the Comprehensive Plan are identified where the Application is not in strict compliance with the Comprehensive Plan. Policy B.2.3: Encourage cluster style development in areas of less density to promote creative and efficient site design that avoids impacts on environmental resources and augments open space Staff Comment: Although the Application proposes “non-developable” areas and building footprint limitations, it is not clear that these areas will further cluster development. However they do ensure, with the revisions provided, that impacts of development will avoid the steepest slopes. By restricting the non-developable areas from all forms of development, the Applicant has provided areas that will visually appear as open space, although public access will not be allowed. Policy H.2.1: Avoid development in environmental hazard areas such as floodplains, steep slopes, areas with geologic hazards, wildfire hazard areas, and areas with erosive soils. Staff Comment: The existing platted lots would allow development on these steep lots and development is proposed within areas of steep existing topography. Although the Application does not avoid all development on steep slopes, it does help further this policy of the Comprehensive Plan by providing building footprint limitations on Lots 2 and 3, where the steeper slopes occur. This provision will ensure that the buildings are limited in their impact on the steep slopes, which cannot be ensured under the current zoning. Based on the discussions the PZC meetings, the Application meets all of the eligibility criteria as outlined in §7.16.060(b). Most notably, §7.16.060(b)(5), Public Benefit, states: “A recognizable and material benefit will be realized by both the future residents and the Town as a whole through the establishment of a PUD, where such benefit would otherwise be infeasible or unlikely.” As discussed in Review Criteria #1, above, and stated throughout this report, Staff does believe the Application proposes public benefits that would otherwise be infeasible or unlikely under the current zoning. The inclusion of building footprint limitations and non-developable areas ensure that the development pattern that will occur on the property will be responsive to the natural environment and will provide increased access to light and air. The Application, as proposed, does ensure that the public benefits, as presented by the applicant, would be better achieved through this rezoning than would be achieved by the existing zoning. (iv) Facilities and services (including roads and transportation, water, gas, electric, police and fire protection, and sewage and waste disposal, as applicable) will be available to serve the subject property while maintaining adequate levels of service to existing development; Staff Response: As proposed, the PUD amendment will have little to no effect on most services. As mentioned previously in this report, the future development may create the need for additional water rights (SFEs) due to the un-capped size of units, even though the building footprints will be limited. This need will be mitigated through a surcharge applied to each building at the time of Building Permit issuance if required. (v) Compared to the underlying zoning, the PUD rezoning is not likely to result in significant adverse impacts upon the natural environment, including air, water, noise, storm water management, wildlife, and vegetation, or such impacts will be substantially mitigated; Staff Response: The property was originally zoned and platted as a “Specially Planned Area” and therefore does not have an underlying zoning. When the proposed PUD Amendment is compared to Lots 33-34, Block 4, Wildridge – Wildridge Point PUD and Subdivision Page 7 the existing Wildridge PUD, there is evidence that the proposal will reduce the impacts on the natural environment. The proposed three (3) single-family structures, and associated lots, with building footprint limitations and platted non-developable areas will ensure a reduced impact on the existing topography and natural environment that cannot be achieved with the development of two (2) duplexes as the current zoning permits. (vi) Compared to the underlying zoning, the PUD rezoning is not likely to result in significant adverse impacts upon other property in the vicinity of the subject tract; and Staff Response: As discussed in the previous review criteria, the uncertain pattern of existing and the more certain pattern of proposed development will likely reduce the impact the other properties in the vicinity. Due to the limitation on maximum building footprint size for Lots 2 and 3 and the non- developable area, the project could experience reduced aesthetic impacts by ensuring light and air and limitations on the structures “growing” down the hillside. These limitations will also likely reduce the need for additional site retention on the steeper slopes that exist on the southern and southeastern portions of the property. The proposed massing studies included in Attachment D illustrate potential visual impacts of these structures next to the existing single-family residence on Lot 35 as viewed from the properties along Wildridge Road East above. (vii) Future uses on the subject tract will be compatible in scale with uses or potential future uses on other properties in the vicinity of the subject tract. Staff Response: The single-family residential use provides an efficient, workable relationship with surrounding uses and activity, as does the duplex land use. There is a mix of single-family and duplex buildings in close proximity to these lots. Review Criteria - Subdivision Pursuant to §7.16.070(f), Final Plat Review Criteria, AMC, the Town Council shall consider a number of review criteria when evaluating this Application. The following criteria must be considered when forming the basis of a recommendation or decision on a Minor Subdivision: (f) Final Plat Review Criteria. After approval of a preliminary plan, the applicant may submit an application for a final plat. The following criteria shall apply to review of a final plat subdivision application: (1) The Town Engineer shall compare the legal description of the subject property with the County records to determine that: (i) The property described contains all contiguous single ownership and does not create a new or remaining unrecognized parcel of less than thirty-five (35) acres in size; (ii) The lots and parcels have descriptions that both close and contain the area indicated; and (iii) The plat is correct in accordance with surveying and platting standards of the state. (2) The final plat conforms to the approved preliminary plan and incorporates all recommended changes, modifications, and conditions attached to the approval of the preliminary plan; (3) The final plat conforms to all preliminary plan criteria; (4) The development will substantially comply with all sections of the Development Code; (5) The final plat complies with all applicable technical standards adopted by the Town; and, Lots 33-34, Block 4, Wildridge – Wildridge Point PUD and Subdivision Page 8 (6) Appropriate utilities shall provide an ability to serve letter including, but not limited to, water, sewer, electric, gas, and telecommunication facilities. Staff Response: The Town Engineer has reviewed the proposed Final Plat and has deemed that it is accurate in describing the property and complies with the technical requirements of the Development Code. With the approval of Resolution 13-11, §7.32.020(e)(7), Building Envelopes , and §7.32.020(e)(6), Buildable Area, that limit building envelopes and buildable area to areas in excess of thirty percent (30%) and forty percent (40%) in slope respectively are now exempt from compliance. A Preliminary Plan for Subdivision is not a requirement of a Minor Subdivision process; therefore review criteria 2 and 3 should not apply. Council Action: If the Council is satisfied with the PZC recommendations and Application, they should approve the Second Reading of Ordinance No: 13-05. Attachments: A: Vicinity Map B: Application Materials dated January 28th, 2013 C: Public Comment D: Revised Application Materials dated February 25th, 2013 E: Revised Application Materials dated March 19th, 2013 F: PZC Findings of Fact, Record of Decision, and Recommendation G: Ordinance 13-05 W I L D R I D G E R D E LONGSUN L N Source: Esri, i-cubed, USDA, USGS, AEX, GeoEye, Getmapping,Aerogrid, IGN, IGP, and the GIS User Community Lots 33 & 34, Blk 4, Wildridge 0 16080 Feet This map was produced by the Community Development Department.Use of this map should be for general purposes only. Town of Avon does not warrant the accuracy of the data contained herein.Author: JKoenig, Date: 03/20/13ILots 33 and 34 Property Boundaries Lot 33 Lot 34 Attachment A 1 Submitted:     November  21,  2012 Rev.  Dec  31,  2012 Rev.  January  28,  2013 Minor  PUD  Amendment Minor  Subdivision Variance A  Resubdivision  of  Lots  33  and  34,  Block  4,  Wildridge  Subdivision WILDRIDGE POINT Attachment B T ABLE  OF  C ONTENTS A.  Introduction  3 B.  Background  4 C.    Precedent  and  Other  Similar  Applications  6 D.  Zoning  Analysis  8 E.  Criteria  for  Review  -­‐  Minor  Subdivision  9 F.  Criteria  for  Review  -­‐  Final  Plat  15 G.  Criteria  for  Review  -­‐  Variance  16 H.    Criteria  for  Review  -­‐  Planned  Unit  Development  17 I.  Adjacent  Addresses  23 J.  Appendices  24 1.    Proposed  Final  Plat  and  Topo  Survey  of  Wildridge  Point 2.    1981  Wildridge  Final  Plat 3.    Letter  from  Staff  9/19/12 4.    Title  Reports 2 Attachment B A.  I NTRODUCTION The  applicant,  Mountain  C.I.  Holdings  LTD,  represented  by  Mauriello  Planning  Group,  is   requesting  a  Minor  Amendment  and  Minor  Subdivision  for  Lots  33  and  34,  Block  4,  Wildridge   Subdivision.    In  addition,  the  applicant  is  requesting  a  variance  from  the  standards  of   Sections  7.28.100.a.  and  7.32.020.e.6.  Lots  33  and  34  are  duplex  lots,  allowing  for  a  total  of  4   units  on  the  site.    The  applicant  is  requesting  to  create  Lots  1,  2,  and  3  of  Wildridge  Point   Subdivision,  which  would  be  single-­‐family  lots,  therefore  reducing  the  total  to  3  dwelling   units  on  the  site.    Because  the  lots  are  located  within  the  Wildridge  PUD,  a  minor   amendment  and  a  minor  subdivision  are  required.    The  proposed  final  plat  is  included  in  the   Appendix.    Below  is  a  portion  of  the  plat,  indicating  the  lot  line  to  be  vacated  and  the  new   proposed  lot  lines  creating  Lots  1,  2,  and  3.     By  reducing  the  density  and  allowing  for  3  smaller  lots,  the  overall  building  mass  and   footprints  are  reduced  in  overall  scale.    The  three  units  are  appropriately  spaced  and  allow   for  views,  light,  and  air  between  the  homes,  giving  a  feeling  of  more  openness.    The   drawings  that  follow  give  an  example  of  the  perception  of  open  space  as  viewed  from  the   roadway  vs.  the  duplex  format. Lot  line  to  be   vacated. Lot  lines  to  Lot  lines  to  be   created. 3 Attachment B B.  B ACKGROUND The  Town  of  Avon  was  incorporated  in  1978,  and  Benchmark  Properties  created  the   Wildridge  and  Wildwood  Subdivisions  shortly  thereafter.    Subsequently,  the  Wildridge   Subdivision  was  completely  replatted  in  1981.    The  Wildridge  PUD  and  Subdivision  are  unique   in  comparison  to  more  recent  PUDs  created  in  the  Town  of  Avon.    In  general,  the   requirements  of  the  PUD  are  provided  on  the  1981  plat  of  Wildridge.    It  is  this  plat  that   includes  all  of  the  allowable  land  uses,  building  heights,  setbacks,  etc.,  which  are  regulated   by  the  Town.    Along  with  these  standards,  the  1981  plat  provides  the  “developable  area”  of   certain  lots  within  the  subdivision.    The  developable  area  is  indicated  in  the  following   manner: Lots  33  and  34  do  not  include  any  non-­‐developable  area,  as  indicated  on  the  1981  plat: 4 Duplex  Format Single-­‐Family  Format Attachment B As  a  result,  Lots  33  and  34  are  entirely  developable  and  the  requirements  of  Sections   7.28.100.a.  and  7.32.020.e.6  are  therefore  not  applicable  since  this  PUD  specifically  allows  for   developable  areas  and  is  a  resubdivision  of  existing  platted  lots.    A  variance  application  has   been  submitted  to  vary  from  standards  that  are  “applicable  to  a  new  subdivision.”    The   Applicant  disagrees  that  these  standards  were  ever  intended  to  apply  to  an  amended  plat  or   a  Minor  PUD  amendment  but  has  applied  for  the  variance  in  deference  to  the  staff  opinion.     The  variance  request  is  reviewed  by  the  Planning  and  Zoning  Commission,  and  the  review   can  be  called-­‐up  by  the  Town  Council. Various  amendments  within  the  PUD  have  occurred  within  the  subsequent  30  years.    These   amendments  have  been  in  various  forms:  amendments  to  the  PUD,  new  PUDs  within  the   PUD,  etc.    However,  with  the  recently  adopted  Avon  Development  Code,  the  process  has   been  simplified  to  a  minor  amendment  (Section  7.16.020): (g)  Minor  Amendment.  The  applicant  may  apply  to  the  Director  for  minor  amendments  to  an   approved  development  application.  Minor  amendments  to  an  approved  development  application   may  be  approved,  approved  with  conditions,  or  denied  administratively  by  the  Director.  The   Director  is  authorized  to  approve  minor  amendments  only  if  the  development  approval,  as  so   amended,  complies  with  the  standards  of  the  Development  Code.  The  Director  may  refer  a  minor   amendment  to  the  decision-­‐making  body  that  was  responsible  for  the  original  approval  if  the   Director  determines  the  amendment  may  result  in  a  material  change  to  the  approved  development   application.  Proposed  amendments  to  an  approved  development  application  which  are  determined   by  the  Director  to  not  be  a  minor  amendment  shall  be  reviewed  and  processed  in  the  same  manner   as  would  be  required  under  this  Development  Code  for  the  original  application  for  which  the   amendment  is  sought  and  shall  include  full  application  fees. Minor  amendments  shall  consist  of  any  of  the  following: (1)  Any  change  to  any  permit  or  other  form  of  approval  that  was  originally  subject  only  to   administrative  review  and  was  approved  by  the  Director,  provided  such  change  would  not  have   disqualified  the  original  application  from  administrative  review  under  this  Development  Code   had  it  been  requested  at  that  time;  and  provided  that  the  minor  amendment  does  not  result  in   an  increase  of  more  than  ten  percent  (10%)  in  the  amount  of  square  footage  of  a  land  use  or   structure  and  does  not  result  in  a  change  in  the  types  of  uses  in  the  project. (2)  Correction  of  any  errors  caused  by  mistakes  that  do  not  materially  alter  the  substance  of  the   development  plan  or  plat  as  represented  to  the  Council. (3)  A  change  to  an  approved  design  which  results  in  a  ten  percent  (10%)  or  less  increase  to  lot   coverage;  ten  percent  (10%)  or  less  increase  to  building  height;  adjustments  to  building   footprints,  access  and  parking  configurations  which  are  less  than  ten  (10)  feet;  alterations  to  the   landscaping  plan  or  drainage  plan  which  substantially  comply  with  the  original  approval;  and,   changes  to  doors,  windows,  roofs,  or  building  articulation  which  are  less  than  two  (2)  feet  and   which  do  not  alter  or  diminish  the  overall  design  character  as  approved;  as  are  all  determined  by   the  Director. (4)  Changes  to  an  approved  development  application  which  do  not  result  in: (i)  An  increase  in  the  approved  number  of  dwelling  units; (ii)  An  increase  in  the  amount  of  square  footage  of  a  non-­‐residential  land  use  or  structure; (iii)  A  change  in  the  housing  mix  or  use  mix  ratio;  or, (iv)A  change  in  the  character  of  the  development. 5 Attachment B In  this  case,  the  Planning  Staff  interpreted  that  the  change  from  two  duplex  residences  to   three  single  family  residences  does  not  constitute  a  change  in  the  housing  mix  and  that  this   application  will  be  reviewed  as  a  Minor  Amendment  since  today  the  property  can  either  be   developed  with  2  single  family  houses  or  2  duplexes  (4  units).    However,  Staff  is  referring  the   application  to  both  the  Planning  and  Zoning  Commission  and  the  Town  Council  for  public   hearings.    The  letter  of  this  determination  by  staff  is  included  in  the  Appendix. In  addition  to  the  Minor  Amendment  process,  the  proposal  is  reviewed  as  a  minor   subdivision,  which  is  described  as  follows: (2)  Minor  Subdivisions.  Minor  subdivisions  include  all  subdivisions  which  would  create  less  than  four   (4)  separate  parcels  of  land,  subdivisions  which  do  not  require  or  propose  public  improvements,   subdivisions  which  consolidate  two  (2)  or  more  lots  into  a  single  lot  in  a  previously  recorded   subdivision  plat,  and  subdivisions  which  move  any  lot  lines  by  more  than  two  (2)  feet;  but  shall  not   include  subdivisions  which  are  administrative  subdivisions.  Condominium  and  timeshare   subdivisions  more  than  four  (4)  units  which  do  not  propose  public  improvements  shall  be  processed   as  minor  subdivisions. Because  the  proposal  creates  3  lots  from  2  existing  lots,  the  application  is  reviewed  as  a   Minor  Subdivision.    As  such,  the  Wildridge  Point  Subdivision  is  reviewed  only  by  the  Town   Council  and  the  Planning  and  Zoning  Commission  has  no  review  authority  over  the  Minor   Subdivision.     C.    P RECEDENT  AND  O THER  S IMILAR  A PPLICATIONS Similar  projects  have  been  approved  by  the  Town  of  Avon  in  the  past.    For  example,  the   following  plat  shows  a  resubdivision  of  Lot  10  and  11,  Block  2,  Wildridge  approved  by  the   Town  of  Avon  in  2002.    This  plat  took  2  existing  duplex  lots  and  re-­‐platted  them  as  3  single-­‐ family  lots,  a  reduction  of  one  dwelling  unit.     6 Attachment B In  2005,  the  Western  Sage  PUD  allowed  for  3  triplex  lots  and  1  duplex  lot  to  be  re-­‐platted   into  8  single-­‐family  homes,  a  reduction  of  3  dwelling  units  for  the  site. The  Dry  Creek  PUD,  approved  in  2006,  was  another  similar  approval  by  the  Town  of  Avon.     The  Dry  Creek  PUD  allowed  for  Lot  44  which  was  permitted  4  units  to  be  re-­‐platted  into  3   single-­‐family  lots,  a  reduction  of  one  dwelling  unit.     While  these  examples  were  processed  in  different  ways  (PUD  within  a  PUD,  amendment  to  a   PUD,  etc.)  the  recently  adopted  Avon  Development  Code  provides  a  clear  process  for  minor   amendments  to  an  existing  PUD,  simplifying  the  approval  process  for  applications  such  as   these. 7 Attachment B D.  Z ONING  A NALYSIS Current:   Standard Lot  33 Lot  34 Total Lot  Size  (acres)1.34 1.07 2.41 Units  Allowed 2.00 2.00 4.00 Density  (du/acre)1.49 1.87 1.66 Lot  Frontage 142  ft.88  ft.230  ft. Proposed: Standard Lot  1 Lot  2 Lot  3 Total Lot  Size  (acres)1.037 0.572 0.809 2.41 Units  Allowed 1.00 1.00 1.00 3.00 Density  (du/acre)0.96 1.75 1.24 1.24 Lot  Frontage 70  ft.83  ft.77  ft.230  ft. There  are  no  changes  to  any  other  standards  of  the  Wildridge  PUD,  with  setbacks  and  height   remaining  as  outlined  on  the  plat.    Front  setbacks  are  25  ft.  while  side  and  rear  setbacks  are   10  ft.    The  maximum  height  limitation  is  35  ft. 8 Attachment B E.  C RITERIA  FOR  R EVIEW  -­‐  M INOR  S UBDIVISION The  Avon  Development  Code  provides  the  criteria  for  review  for  a  Minor  Subdivision  as   follows: (2)  Minor  Subdivision.  Minor  subdivisions  shall  require  final  plat  review  and  approval  only  where  no   public  improvements  are  proposed;  however,  the  review  criteria  for  a  preliminary  plan  shall  apply  to   review  of  minor  subdivision  final  plats  in  addition  to  the  review  criteria  for  a  final  plat.  The  Town   Council  shall  render  the  final  decision  on  a  minor  subdivision  application  after  conducting  a  public   hearing.  Minor  subdivisions  shall  be  approved  by  resolution  or  ordinance  of  the  Town  Council. As  a  result,  the  criteria  for  a  preliminary  plan  are  provided  below,  along  with  the  criteria  for   final  plat  review: (1)The  proposed  subdivision  shall  comply  with  all  applicable  use,  density,  development,  and   design  standards  set  forth  in  this  Development  Code  that  have  not  otherwise  been   modified  or  waived  pursuant  to  this  Chapter  and  that  would  affect  or  influence  the  layout   of  lots,  blocks,  and  streets.  Applicants  shall  not  create  lots  or  patterns  of  lots  in  the   subdivision  that  will  make  compliance  with  such  development  and  design  standards   difficult  or  infeasible; Applicant  Response:  Because  the  proposal  is  a  minor  subdivision  of  2  lots  into  3  lots,   with  a  reduction  in  density  from  4  units  to  3  units,  this  criterion  is  not  applicable.    The   subdivision  complies  with  all  use,  density,  development  and  design  standards  and  has   no  affect  on  the  layout  of  other  lots,  blocks  or  streets.     (2)The  subdivision  application  shall  comply  with  the  purposes  of  the  Development  Code; Applicant  Response:  The  purpose  of  the  Development  Code  is  provided  in  Section   7.04.030  Purposes  of  the  Avon  Development  Code: The  Development  Code  is  intended  to  promote  and  achieve  the  following  goals  and  purposes  for   the  Avon  community,  including  the  residents,  property  owners,  business  owners  and  visitors:   (a)  Divide  the  Town  into  zones,  restricting  and  requiring  therein  the  location,  erection,   construction,  reconstruction,  alteration  and  use  of  buildings,  structures  and  land  for  trade,   industry,  residence  and  other  specified  uses;  regulate  the  intensity  of  the  use  of  lot  areas;   regulate  and  determine  the  area  of  open  spaces  surrounding  such  buildings;  establish  building   lines  and  locations  of  buildings  designed  for  specified  industrial,  commercial,  residential  and   other  uses  within  such  areas;  establish  standards  to  which  buildings  or  structures  shall   conform;  establish  standards  for  use  of  areas  adjoining  such  buildings  or  structures;   (b)  Implement  the  goals  and  policies  of  the  Avon  Comprehensive  Plan  and  other  applicable   planning  documents  of  the  Town;   (c)  Comply  with  the  purposes  stated  in  state  and  federal  regulations  which  authorize  the   regulations  in  this  Development  Code;   (d)  Avoid  undue  traffic  congestion  and  degradation  of  the  level  of  service  provided  by  streets   and  roadways,  promote  effective  and  economical  mass  transportation  and  enhance  effective,   attractive  and  economical  pedestrian  opportunities;   9 Attachment B (e)  Promote  adequate  light,  air,  landscaping  and  open  space  and  avoid  undue  concentration   or  sprawl  of  population;   (f)  Provide  a  planned  and  orderly  use  of  land,  protection  of  the  environment  and  preservation   of  viability,  all  to  conserve  the  value  of  the  investments  of  the  people  of  the  Avon  community   and  encourage  a  high  quality  of  life  and  the  most  appropriate  use  of  land  throughout  the   municipality;   (g)  Prevent  the  inefficient  use  of  land;  avoid  increased  demands  on  public  services  and   facilities  which  exceed  capacity  or  degrade  the  level  of  service  for  existing  residents;  provide   for  phased  development  of  government  services  and  facilities  which  maximizes  efficiency  and   optimizes  costs  to  taxpayers  and  users;  and  promote  sufficient,  economical  and  high-­‐quality   provision  of  all  public  services  and  public  facilities,  including  but  not  limited  to  water,  sewage,   schools,  libraries,  police,  parks,  recreation,  open  space  and  medical  facilities;   (h)  Minimize  the  risk  of  damage  and  injury  to  people,  structures  and  public  infrastructure   created  by  wild  fire,  avalanche,  unstable  slopes,  rock  fall,  mudslides,  flood  danger  and  other   natural  hazards;   (i)  Achieve  or  exceed  federal  clean  air  standards;   (j)  Sustain  water  sources  by  maintaining  the  natural  watershed,  preventing  accelerated   erosion,  reducing  runoff  and  consequent  sedimentation,  eliminating  pollutants  introduced   directly  into  streams  and  enhancing  public  access  to  recreational  water  sources;   (k)  Maintain  the  natural  scenic  beauty  of  the  Eagle  River  Valley  in  order  to  preserve  areas  of   historical  and  archaeological  importance,  provide  for  adequate  open  spaces,  preserve  scenic   views,  provide  recreational  opportunities,  sustain  the  tourist-­‐based  economy  and  preserve   property  values;   (l)  Promote  architectural  design  which  is  compatible,  functional,  practical  and  complimentary   to  Avon's  sub-­‐alpine  environment;   (m)  Achieve  innovation  and  advancement  in  design  of  the  built  environment  to  improve   efficiency,  reduce  energy  consumption,  reduce  emission  of  pollutants,  reduce  consumption  of   non-­‐renewable  natural  resources  and  attain  sustainability;   (n)  Achieve  a  diverse  range  of  attainable  housing  which  meets  the  housing  needs  created  by   jobs  in  the  Town,  provides  a  range  of  housing  types  and  price  points  to  serve  a  complete  range   of  life  stages  and  promotes  a  balanced,  diverse  and  stable  full  time  residential  community   which  is  balanced  with  the  visitor  economy;   (o)  Promote  quality  real  estate  investments  which  conserve  property  values  by  disclosing   risks,  taxes  and  fees;  by  incorporating  practical  and  comprehensible  legal  arrangements;  and   by  promoting  accuracy  in  investment  expectations;  and   (p)Promote  the  health,  safety  and  welfare  of  the  Avon  community.   As  demonstrated  by  this  document  and  the  plans  submitted,  the  proposal  is  consistent   with  and  in  substantial  compliance  with  the  purpose  of  the  Development  Code  by   reducing  the  number  of  units,  providing  for  greater  open  space  and  reducing  building   footprints  within  an  existing  subdivision. (3)The  subdivision  application  shall  be  consistent  with  the  Avon  Comprehensive  Plan  and   other  community  planning  documents; 10 Attachment B Applicant  Response:    The  Avon  Land  Use  Map  indicates  the  property  as  Residential  -­‐   Low  Density  as  indicated  on  the  map  below: The  Comprehensive  Plan  defines  “Residential-­‐Lot  Density”  as  follows: Areas  designated  for  residential  low  density  are  intended  to  provide  sites  for  single-­‐family,   duplex,  and  multi-­‐family  dwellings  at  a  density  no  greater  than  7.5  dwelling  units  per  acre. As  indicated  in  zoning  analysis  of  Section  D  of  this  submittal,  the  proposed  minor   subdivision  complies  with  the  density  as  recommended  by  the  Comprehensive  Plan. (4)The  land  shall  be  physically  suitable  for  the  proposed  development  or  subdivision; Applicant  Response:    As  indicated  on  the  1981  Wildridge  Plat,  the  Wildridge  PUD   establishes  that  the  entirety  of  the  area  of  the  proposed  lot  is  “developable.”    As  the   guiding  document  for  this  PUD,  the  land  has  been  previously  determined  to  be   physically  suitable  for  development.    In  addition,  the  proposal  is  actually  a  reduction  in   allowable  density,  making  the  impact  on  the  land  less  than  is  currently  allowed. (5)The  proposed  subdivision  shall  be  compatible  with  surrounding  land  uses; Applicant  Response:    As  indicated  in  the  map  below,  surrounding  land  uses  include   Town  of  Avon-­‐owned  open  space  to  the  south,  east  and  southwest  of  the  property.     Directly  to  the  north  and  east  are  residential  uses.    The  current  land  use  allowed  on  the   site  is  residential,  as  the  site  is  currently  permitted  4  dwelling  units.    The  proposed   minor  subdivision  would  allow  for  3  dwelling  units,  a  reduction  of  one  unit  for  this  site.     11 Attachment B Because  there  is  no  change  to  the  proposed  land  use  (residential)  but  there  is  a  net   reduction  in  density,  this  subdivision  is  compatible  with  the  surrounding  land  uses.     Open  Space Residential (6)There  are  adequate  public  facilities  for  potable  water  supply,  sewage  disposal,  solid  waste   disposal,  electrical  supply,  fire  protection  and  roads  and  will  be  conveniently  located  in   relation  to  schools,  police,  fire  protection  and  emergency  medical  services; Applicant  Response:    As  a  minor  subdivision  of  existing  platted  lots  within  Wildridge,  this   criterion  is  not  applicable  to  this  application.    As  a  reduction  in  allowable  density,  there  is   less  need  for  these  public  facilities  and  a  new  increase  in  water  rights  by  the  return  of   one  SFE  to  the  Town. (7)The  proposed  utility  and  road  extensions  are  consistent  with  the  utility’s  service  plan  and   are  consistent  with  the  Town  of  Avon  Comprehensive  Plan  &  Comprehensive   Transportation  Master  Plan; Applicant  Response:    As  a  minor  subdivision  of  existing  platted  lots  within  Wildridge,  this   criterion  is  not  applicable  to  this  application.    No  utility  or  road  extensions  are  necessary. (8)The  utility  lines  are  sized  to  serve  the  ultimate  population  of  the  service  area  to  avoid   future  land  disruption  to  upgrade  under-­‐sized  lines; Applicant  Response:    As  a  minor  subdivision  of  existing  platted  lots  within  Wildridge,  this   criterion  is  not  applicable  to  this  application.    Because  this  proposal  reduces  the   allowable  density,  there  will  be  less  demand  on  utilities  and  utility  lines  are  sized   appropriately  for  the  current  allowable  density.     12 Attachment B (9)The  subdivision  is  compatible  with  the  character  of  existing  land  uses  in  the  area  and  shall   not  adversely  affect  the  future  development  of  the  surrounding  area; Applicant  Response:    The  proposed  subdivision  is  compatible  and  consistent  with  the   character  of  the  existing  land  uses  in  the  area.    As  indicated  previously,  surrounding  land   uses  are  Town-­‐owned  open  space  tracts  and  other  residential  uses.    The  map  below   provides  an  analysis  of  the  residential  lots  nearby  as  a  comparison  to  the  proposed   subdivision: As  indicated  in  the  analysis,  the  proposed  lot  sizes  are  similar  to  those  in  the  area  and  are   compatible  with  the  existing  land  uses.    The  surrounding  residential  lots  are  all  currently   developed,  but  this  subdivision  will  not  affect  the  future  redevelopment  of  these  sites.     Photos  of  the  surrounding  properties  are  provided  below: SFR SFR SFR Duplex Duplex Duplex Duplex 1.1  ac .79  ac .61  ac .78  ac 1.15  ac .89  ac Lot  11.04  ac Lot  2.57ac Lot  3.81  ac .49  ac 13 Attachment B (10)A  proposed  subdivision  for  an  existing  PUD  shall  be  consistent  with  the  relevant  PUD   Master  Plan  as  reflected  in  the  approval  of  that  PUD; Applicant  Response:    The  Wildridge  PUD  is  unique  in  that  the  PUD  Plan  is  generally   outlined  on  the  1981  Wildridge  Plat.    Based  on  this  plat  (included  in  the  Appendix),  the   proposal  is  consistent  with  the  PUD. (11)Appropriate  utilities,  including  water,  sewer,  electric,  gas  and  telephone  utilities,  shall   provide  an  “conditional  capacity  to  serve”  letter  for  the  propose  subdivision; Applicant  Response:    As  a  minor  subdivision  of  existing  platted  lots  within  Wildridge,  this   criterion  is  not  applicable  to  this  application. (12)That  the  general  layout  of  lots,  roads,  driveways,  utilities,  drainage  facilities,  and  other   services  within  the  proposed  subdivision  shall  be  designed  in  a  way  that  minimizes  the   amount  of  land  disturbance,  minimize  inefficiencies  in  the  development  of  services,   maximizes  the  amount  of  open  space  in  the  development,  preserves  existing  trees/ vegetation  and  riparian  areas,  protects  critical  wildlife  habitat,  and  otherwise   accomplishes  the  purposes  of  this  Development  Code; Applicant  Response:    As  a  minor  subdivision  of  existing  platted  lots  within  Wildridge,  this   criterion  is  not  applicable  to  this  application. (13)Evidence  that  provision  has  been  made  for  a  public  sewage  disposal  system  or,  if  other   methods  of  sewage  disposal  are  proposed,  adequate  evidence  that  such  system  shall   comply  with  state  and  local  laws  and  regulations; Applicant  Response:    As  a  minor  subdivision  of  existing  platted  lots  within  Wildridge,  this   criterion  is  not  applicable  to  this  application. (14)Evidence  that  all  areas  of  the  proposed  subdivision  that  may  involve  soil  or  topographical   conditions  presenting  hazards  or  requiring  special  precautions  have  been  identified  by   the  applicant  and  that  the  proposed  use  of  these  areas  are  compatible  with  such   conditions  or  that  adequate  mitigation  is  proposed; Applicant  Response:    As  a  minor  subdivision  of  existing,  platted  lots  within  Wildridge,   this  criterion  is  not  applicable  to  this  application. (15)The  subdivision  application  addresses  the  responsibility  for  maintaining  all  roads,  open   spaces,  and  other  public  and  common  facilities  in  the  subdivision  and  that  Town  can   afford  any  proposed  responsibilities  to  be  assumed  by  the  Town; Applicant  Response:    As  a  minor  subdivision  of  existing  platted  lots  within  Wildridge,  this   criterion  is  not  applicable  to  this  application. (16)If  applicable,  the  declarations  and  owners’  association  are  established  in  accordance  with   the  law  and  are  structured  to  provide  adequate  assurance  that  any  site  design  standards   14 Attachment B required  by  this  Development  Code  or  conditions  of  approval  for  the  proposed   subdivision  will  be  maintained  or  performed  in  a  manner  which  is  enforceable  by  the   Town;  and, Applicant  Response:    As  a  minor  subdivision  of  existing  platted  lots  within  Wildridge,  this   criterion  is  not  applicable  to  this  application.    The  Wildridge  Covenants  remain  in  effect.     (17)As  applicable,  the  proposed  phasing  for  development  of  the  subdivision  is  rational  in   terms  of  available  infrastructure  capacity  and  financing. Applicant  Response:    As  a  minor  subdivision  of  existing  platted  lots  within  Wildridge,  this   criterion  is  not  applicable  to  this  application. F.  C RITERIA  FOR  R EVIEW  -­‐  F INAL  P LAT The  review  criteria  for  a  final  plat  are  provided  below: (1)  The  Town  Engineer  shall  compare  the  legal  description  of  the  subject  property  with  the   County  records  to  determine  that: (i)  The  property  described  contains  all  contiguous  single  ownership  and  does  not  create  a   new  or  remaining  unrecognized  parcel  of  less  than  thirty-­‐five  (35)  acres  in  size; (ii)  The  lots  and  parcels  have  descriptions  that  both  close  and  contain  the  area  indicated;   and (iii)  The  plat  is  correct  in  accordance  with  surveying  and  platting  standards  of  the  state. Applicant  Response:    The  proposed  minor  subdivision  meets  the  above  criteria. (2)The  final  plat  conforms  to  the  approved  preliminary  plan  and  incorporates  all   recommended  changes,  modifications,  and  conditions  attached  to  the  approval  of  the   preliminary  plan; Applicant  Response:    As  a  minor  subdivision,  no  preliminary  plan  is  required. (3)The  final  plat  conforms  to  all  preliminary  plan  criteria; Applicant  Response:    The  proposed  minor  subdivision  meets  the  above  criteria  and  a   review  has  been  provided  above. (4)The  development  will  substantially  comply  with  all  sections  of  the  Development  Code; Applicant  Response:    The  proposed  minor  subdivision  substantially  complies  with  all   sections  of  the  Development  Code. (5)The  final  plat  complies  with  all  applicable  technical  standards  adopted  by  the  Town;  and, 15 Attachment B Applicant  Response:  The  proposed  minor  subdivision  complies  with  all  applicable   technical  standards  adopted  by  the  Town. (6)  Appropriate  utilities  shall  provide  an  ability  to  serve  letter  including,  but  not  limited  to,   water,  sewer,  electric,  gas,  and  telecommunication  facilities. Applicant  Response:    The  proposed  minor  subdivision  is  already  served  by  utilities. G.  C RITERIA  FOR  R EVIEW  -­‐  V ARIANCE Section  7.28.100.a.  Natural  Resource  Protection,  provides  regulations  for  development  on   steep  slopes.      The  standards  of  this  section  apply  to  the  following: Applicability.  The  standards  in  this  section  shall  apply  to  any  new  subdivision,  PUD,  or  zoning   amendment  when  any  portion  of  the  lot  contains  naturally-­‐occurring  slopes  of  thirty  percent  (30%)   or  greater. Staff  has  interpreted  that  this  application  is  subject  to  this  section.    This  section  was  written   to  apply  to  “any  new  subdivision”  but  in  this  case  the  subdivision  is  a  resubdivision  of   existing  platted  lots  within  a  existing  platted  subdivision  within  an  existing  PUD.  In  addition,   Section  7.32.020.e.6  requires  that  buildable  area  cannot  include  areas  with  40%  slopes.    Due   to  the  existing  40%  slopes  encompassing  a  significant  portion  of  the  existing  platted  lots,   this  regulation  in  not  possible  to  comply  with,  and  is  not  a  requirement  of  the  Wildridge   PUD.    Due  to  the  strict  requirements  of  this  Section  of  the  Avon  Development  Code  (which   would  not  have  allowed  Wildridge  to  be  platted  today)  the  applicant  is  requesting  a  variance   from  Section  7.28.100.a.  “Steep  Slopes”  and  Section  7.32.020.e.6.  “Buildable  Area”.    The   review  criteria  for  a  variance  are  provided  below: (1)The  degree  to  which  relief  from  the  strict  or  literal  interpretation  and  enforcements  of  a   specified  regulation  is  necessary  to  achieve  compatibility  and  uniformity  of  treatment   among  sites  in  the  vicinity,  or  to  attain  the  objectives  of  the  Development  Code  without   grant  of  special  privilege; Applicant  Response:    The  proposed  request  is  a  reduction  in  density  for  this  property,   reducing  the  number  of  units  from  4  dwelling  units  to  3  dwelling  units.    Applying  the   requirements  of  Sections  7.28.100.A.  and  7.32.020.e.6  to  this  resubdivision  of  existing   platted  lots  would  render  the  property  undevelopable,  contrary  to  what  has  been   defined  as  undevelopable  in  the  Wildridge  PUD.    This  would  unfairly  apply  criteria  for  a   “new  subdivision”  to  a  resubdivision,  treating  this  property  differently  than  all  other   similar  lots  within  the  Wildridge  subdivision.    As  a  result,  the  granting  of  this  variance   would  not  be  a  grant  of  special  privilege  and  is  necessary  to  achieve  compatibility  and   uniformity  of  treatment  among  sites  in  this  existing  platted  subdivision. (2)The  effect  of  the  requested  variance  on  light  and  air,  distribution  of  population,   transportation  and  traffic  facilities,  public  facilities  and  utilities,  and  public  safety; 16 Attachment B Applicant  Response:    As  a  reduction  in  density,  this  variance  will  improve  the  light  and   air.    The  construction  of  3  units  vs.  4  units  will  increase  the  feeling  of  openness  and  green   space  for  this  property.    In  addition,  as  a  reduction  in  allowable  density  and  therefore  a   reduction  in  population,  there  is  a  reduction  of  impacts  on  all  transportation  facilities,   public  facilities,  and  utilities.     (3)Such  other  factors  and  criteria  related  to  the  subject  property,  proposed  development,  or   variance  request  as  the  decision-­‐making  body  deems  applicable  to  the  proposed  variance. Applicant  Response:    These  code  sections  are  clearly  intended  to  apply  to  new   subdivisions  within  Avon,  not  on  the  resubdivision  of  existing  platted  lots  within  an   existing  subdivision.    The  application  of  these  standards  to  minor  lot  line  adjustments   that  actually  serve  to  reduce  density  creates  a  situation  where  even  “administrative   subdivisions”  would  be  required  to  comply  with  these  same  requirements.    This  is  not   possible  within  a  subdivision  that  was  platted  long  before  these  regulations  were   enacted.     H.    C RITERIA  FOR  R EVIEW  -­‐  P LANNED  U NIT  D EVELOPMENT Staff  has  requested  that  this  submittal  include  a  section  reviewing  the  Review  Criteria  for  a   new  Planned  Unit  Development  as  outlined  in  Section  7.16.060.e.4,  which  states: Review  Criteria.  The  PZC  and  Town  Council  shall  consider  the  following  criteria  as  the  basis  for  a   recommendation  or  decision  to  rezone  a  property  to  PUD  Overlay  and  approve  a  preliminary  PUD   plan. While  the  applicant  is  not  proposing  a  new  PUD  but  rather  is  proposing  to  amend  the   existing  Wildridge  PUD  to  allow  two  duplex  lots  to  be  converted  to  three  single-­‐family  lots,   we  have  provided  responses  to  the  PUD  review  criteria  which  are  really  intended  for  a  new   PUD.    The  criteria    are  addressed  below: (1)The  PUD  addresses  a  unique  situation,  confers  a  substantial  benefit  to  the  Town,  and/or   incorporates  creative  site  design  such  that  it  achieves  the  purposes  of  this  Development   Code  and  represents  an  improvement  in  quality  over  what  could  have  been  accomplished   through  strict  application  of  the  otherwise  applicable  district  or  development  standards.   Such  improvements  in  quality  may  include,  but  are  not  limited  to:  improvements  in  open   space  provision  and  access;  environmental  protection;  tree/vegetation  preservation;   efficient  provision  of  streets,  roads,  and  other  utilities  and  services;  or  increased  choice  of   living  and  housing  environments. Applicant  Response:  The  Town  of  Avon  was  incorporated  in  1978  and  Benchmark   Properties  created  the  Wildridge  and  Wildwood  Subdivisions  shortly  thereafter.    The   Wildridge  PUD  and  Subdivision  are  unique  in  comparison  to  more  recent  PUDs  created  in   the  Town  of  Avon.    It  was  the  original  Wildridge  PUD  which  met  the  above-­‐referenced   criteria  and  this  proposed  minor  amendment  has  no  adverse  effect  on  the  originally   approved  Planned  Unit  Development  and  all  of  the  public  benefits  it  provided  to  the   17 Attachment B community  including  things  like  open  space  and  the  increased  choice  of  housing  and   living  environments.    In  this  particular  situation,  the  entirety  of  the  subject  property  is   buildable  under  the  original  PUD.    The  proposal  protects  areas  of  the  proposed  lots  as  a   no-­‐build  zone,  protecting  slope  area  in  excess  of  40%.    The  lot  configuration  allows  for   development  to  occur  in  such  a  way  as  to  provide  more  light  and  air  and  green  space   than  could  be  developed  currently  without  the  proposed  minor  amendment.   Furthermore,  as  a  reduction  in  density,  there  is  a  public  benefit  by  reducing  traffic   impacts,  reducing  water  demand,  lessening  demand  for  public  services  such  as  police   and  fire,  reducing  impacts  to  the  school  system,  etc.     (2)The  PUD  rezoning  will  promote  the  public  health,  safety,  and  general  welfare; Applicant  Response:    As  a  reduction  in  allowable  density  and  the  corresponding   reduction  in  traffic  and  demand  on  public  utilities  and  services,  the  streets  of  Wildridge   will  be  safer  than  under  the  current  allowance.    While  there  is  no  PUD  rezoning   associated  with  this  application,  the  proposal  will  promote  the  public  health,  safety,  and   general  welfare.         (3)The  PUD  rezoning  is  consistent  with  the  Avon  Comprehensive  Plan,  the  purposes  of  this   Development  Code,  and  the  eligibility  criteria  outlined  in  §7.16.060(b);   Applicant  Response:    The  Avon  Land  Use  Map  indicates  the  property  as  Residential  -­‐  Low   Density  as  indicated  on  the  map  below: 18 Attachment B The  Comprehensive  Plan  defines  “Residential-­‐Lot  Density”  as  follows: Areas  designated  for  residential  low  density  are  intended  to  provide  sites  for  single-­‐family,   duplex,  and  multi-­‐family  dwellings  at  a  density  no  greater  than  7.5  dwelling  units  per  acre. As  indicated  in  zoning  analysis  of  Section  D  of  this  submittal,  the  proposed  minor   subdivision  complies  with  the  density  as  recommended  by  the  Comprehensive  Plan   with  an  overall  density  of  1.24  units  per  acre  proposed. The  purpose  of  the  Development  Code  is  provided  in  Section  7.04.030  Purposes  of  the   Avon  Development  Code: The  Development  Code  is  intended  to  promote  and  achieve  the  following  goals  and  purposes  for   the  Avon  community,  including  the  residents,  property  owners,  business  owners  and  visitors:   (a)  Divide  the  Town  into  zones,  restricting  and  requiring  therein  the  location,  erection,   construction,  reconstruction,  alteration  and  use  of  buildings,  structures  and  land  for  trade,   industry,  residence  and  other  specified  uses;  regulate  the  intensity  of  the  use  of  lot  areas;   regulate  and  determine  the  area  of  open  spaces  surrounding  such  buildings;  establish  building   lines  and  locations  of  buildings  designed  for  specified  industrial,  commercial,  residential  and   other  uses  within  such  areas;  establish  standards  to  which  buildings  or  structures  shall   conform;  establish  standards  for  use  of  areas  adjoining  such  buildings  or  structures;   (b)  Implement  the  goals  and  policies  of  the  Avon  Comprehensive  Plan  and  other  applicable   planning  documents  of  the  Town;   (c)  Comply  with  the  purposes  stated  in  state  and  federal  regulations  which  authorize  the   regulations  in  this  Development  Code;   (d)  Avoid  undue  traffic  congestion  and  degradation  of  the  level  of  service  provided  by  streets   and  roadways,  promote  effective  and  economical  mass  transportation  and  enhance  effective,   attractive  and  economical  pedestrian  opportunities;   (e)  Promote  adequate  light,  air,  landscaping  and  open  space  and  avoid  undue  concentration   or  sprawl  of  population;   (f)  Provide  a  planned  and  orderly  use  of  land,  protection  of  the  environment  and  preservation   of  viability,  all  to  conserve  the  value  of  the  investments  of  the  people  of  the  Avon  community   and  encourage  a  high  quality  of  life  and  the  most  appropriate  use  of  land  throughout  the   municipality;   (g)  Prevent  the  inefficient  use  of  land;  avoid  increased  demands  on  public  services  and   facilities  which  exceed  capacity  or  degrade  the  level  of  service  for  existing  residents;  provide   for  phased  development  of  government  services  and  facilities  which  maximizes  efficiency  and   optimizes  costs  to  taxpayers  and  users;  and  promote  sufficient,  economical  and  high-­‐quality   provision  of  all  public  services  and  public  facilities,  including  but  not  limited  to  water,  sewage,   schools,  libraries,  police,  parks,  recreation,  open  space  and  medical  facilities;   (h)  Minimize  the  risk  of  damage  and  injury  to  people,  structures  and  public  infrastructure   created  by  wild  fire,  avalanche,  unstable  slopes,  rock  fall,  mudslides,  flood  danger  and  other   natural  hazards;   (i)  Achieve  or  exceed  federal  clean  air  standards;   (j)  Sustain  water  sources  by  maintaining  the  natural  watershed,  preventing  accelerated   erosion,  reducing  runoff  and  consequent  sedimentation,  eliminating  pollutants  introduced   directly  into  streams  and  enhancing  public  access  to  recreational  water  sources;   19 Attachment B (k)  Maintain  the  natural  scenic  beauty  of  the  Eagle  River  Valley  in  order  to  preserve  areas  of   historical  and  archaeological  importance,  provide  for  adequate  open  spaces,  preserve  scenic   views,  provide  recreational  opportunities,  sustain  the  tourist-­‐based  economy  and  preserve   property  values;   (l)  Promote  architectural  design  which  is  compatible,  functional,  practical  and  complimentary   to  Avon's  sub-­‐alpine  environment;   (m)  Achieve  innovation  and  advancement  in  design  of  the  built  environment  to  improve   efficiency,  reduce  energy  consumption,  reduce  emission  of  pollutants,  reduce  consumption  of   non-­‐renewable  natural  resources  and  attain  sustainability;   (n)  Achieve  a  diverse  range  of  attainable  housing  which  meets  the  housing  needs  created  by   jobs  in  the  Town,  provides  a  range  of  housing  types  and  price  points  to  serve  a  complete  range   of  life  stages  and  promotes  a  balanced,  diverse  and  stable  full  time  residential  community   which  is  balanced  with  the  visitor  economy;   (o)  Promote  quality  real  estate  investments  which  conserve  property  values  by  disclosing   risks,  taxes  and  fees;  by  incorporating  practical  and  comprehensible  legal  arrangements;  and   by  promoting  accuracy  in  investment  expectations;  and   (p)Promote  the  health,  safety  and  welfare  of  the  Avon  community.   As  demonstrated  by  this  document  and  the  plans  submitted,  the  proposal  is  consistent   with  and  in  substantial  compliance  with  the  purpose  of  the  Development  Code  by   reducing  the  number  of  units,  providing  for  greater  open  space  and  reducing  building   footprints  by  adding  a  lot  line  and  the  required  setbacks  it  creates  within  an  existing   subdivision. Finally,  Section  7.16.060(b)  provides  the  Eligibility  Criteria  for  a  property  to  be  eligible  for   PUD  approval.    These  criteria  are  as  follows: (1)  Property  Eligible.  All  properties  within  the  Town  of  Avon  are  eligible  to  apply  for  PUD   approval. (2)  Consistency  with  Comprehensive  Plan.  The  proposed  development  shall  be    consistent  with   the  Avon  Comprehensive  Plan. (3)  Consistent  with  PUD  Intent.  The  proposed  development  shall  be  consistent  with  the  intent   and  spirit  of  the  PUD  purpose  statement  in  §7.16.060(a). (4)  Compatibility  with  Existing  Uses.  The  proposed  development  shall  not  impede  the   continued  use  or  development  of  surrounding  properties  for  uses  that  are  permitted  in  the   Development  Code  or  planned  for  in  the  Avon  Comprehensive  Plan. (5)  Public  Benefit.  A  recognizable  and  material  benefit  will  be  realized  by  both  the  future   residents  and  the  Town  as  a  whole  through  the  establishment  of  a  PUD,  where  such  benefit   would  otherwise  be  infeasible  or  unlikely. (6)  Preservation  of  Site  Features.  Long-­‐term  conservation  of  natural,  historical,  architectural,   or  other  significant  features  or  open  space  will  be  achieved,  where  such  features  would   otherwise  be  destroyed  or  degraded  by  development  as  permitted  by  the  underlying  zoning   district. (7)  Sufficient  Land  Area  for  Proposed  Uses.  Sufficient  land  area  has  been  provided  to  comply   with  all  applicable  regulations  of  the  Development  Code,  to  adequately  serve  the  needs  of  all   20 Attachment B permitted  uses  in  the  PUD  projects,  and  to  ensure  compatibility  between  uses  and  the   surrounding  neighborhood. As  demonstrated  by  this  document  and  the  plans  submitted,  the  proposal  is  consistent   with  and  in  substantial  compliance  with  the  these  reducing  the  number  of  units,   providing  for  greater  open  space,  and  reducing  building  footprints  within  an  existing   subdivision.    The  property  is  located  within  the  Town  of  Avon;  the  property  is  consistent   with  the  Comprehensive  plan  as  indicated  above  with  a  development  density  of  1.24   units  per  acre  and  with  a  residential  use  proposed;  the  proposal  is  consistent  with  the   PUD  intent  as  indicated  above;  the  proposal  is  consistent  with  adjacent  residential  uses   as  indicated  below;  the  proposed  amendment  does  not  change  the  public  benefits  it   received  when  the  Wildridge  PUD  was  originally  created  in  1978  and  additionally  the   addition  of  no  build  zones,  the  additional  provision  of  light  and  air,  and  the  reduction  in   impacts  from  the  reduction  in  density  all  provide  recognizable  and  material  benefit  to   the  residents  and  the  Town;  the  preservation  of  site  features  through  the  establishment   of  a  no  build  zones;  and  the  proposal  has  demonstrated  sufficient  land  area  for  the   proposed  uses. (17)Facilities  and  services  (including  roads  and  transportation,  water,  gas,  electric,  police  and   fire  protection,  and  sewage  and  waste  disposal,  as  applicable)  will  be  available  to  serve  the   subject  property  while  maintaining  adequate  levels  of  service  to  existing  development; Applicant  Response:  The  proposed  minor  subdivision  is  already  served  by  utilities.    As  a   reduction  in  density,  there  will  be  less  demand  on  these  utilities. (18)Compared  to  the  underlying  zoning,  the  PUD  rezoning  is  not  likely  to  result  insignificant   adverse  impacts  upon  the  natural  environment,  including  air,  water,  noise,  storm  water   management,  wildlife,  and  vegetation,  or  such  impacts  will  be  substantially  mitigated; Applicant  Response:    There  is  no  underlying  zoning  and  no  rezoning  associated  with  this   application.    As  a  reduction  in  allowable  density,  any  impacts  that  were  associated  with   the  existing  allowable  density  will  be  reduced.     (19)Compared  to  the  underlying  zoning,  the  PUD  rezoning  is  not  likely  to  result  in  significant   adverse  impacts  upon  other  property  in  the  vicinity  of  the  subject  tract;  and   Applicant  Response:    There  is  no  underlying  zoning  and  no  PUD  rezoning  associated  with   this  application.    As  a  reduction  in  density,  any  possible  impacts  of  development  on  this   property  will  be  reduced.     (20)Future  uses  on  the  subject  tract  will  be    compatible  in  scale  with  uses  or  potential  future   uses  on  other  properties  in  the  vicinity  of  the  subject  tract. Applicant  Response:    The  proposed  subdivision  is  compatible  and  consistent  with  the   character  of  the  existing  land  uses  in  the  area.    As  indicated  previously,  surrounding  land   21 Attachment B uses  are  Town-­‐owned  open  space  tracts  and  other  residential  uses.    The  map  below   provides  an  analysis  of  the  residential  lots  nearby  as  a  comparison  to  the  proposed   subdivision: As  indicated  in  the  analysis,  the  proposed  lot  sizes  are  similar  to  those  in  the  area  and  are   compatible  with  the  existing  land  uses.    The  surrounding  residential  lots  are  all  currently   developed,  but  this  subdivision  will  not  affect  the  future  redevelopment  of  these  sites.     Photos  of  the  surrounding  properties  are  provided  below: SFR SFR SFR Duplex Duplex Duplex Duplex 1.1  ac .79  ac .61  ac .78  ac 1.15  ac .89  ac Lot  11.04  ac Lot  2.57ac Lot  3.81  ac .49  ac 22 Attachment B I.  A DJACENT  A DDRESSES   (within  300  Feet) 1943-­‐354-­‐01-­‐002 1943-­‐351-­‐01-­‐001 TOWN  OF  AVON PO  BOX  975   AVON,  CO  81620 1943-­‐351-­‐03-­‐002 WORK  FAMILY  US  REAL  PROPERTY  TRUST 3240  RIVER  RD  RR5   N0A1E0  CAYUGA  ONTARIO   CANADA 1943-­‐351-­‐03-­‐004 ALLEN,  TERENCE  C. 468  GLEN  RD   SPARTA,  NJ  07871 1943-­‐351-­‐03-­‐026 STRANDJORD,  DAVID PO  BOX  9669   AVON,  CO  81620 1943-­‐351-­‐03-­‐027 HARRY  S.  GREENBERG  RESIDENCE  TRUST   AGREEMENT  #1  -­‐  ETAL 2611  WYLIE  RD   DEXTER,  MI  48130-­‐9781 1943-­‐351-­‐03-­‐007 BACA,  BRUCE  A.  &  SUSAN  S. PO  BOX  2033   AVON,  CO  81620 1943-­‐351-­‐02-­‐020 SCHWARTZ,  ROBERTA  A.  &  JONATHAN  M.D. PO  BOX  1120   AVON,  CO  81620 1943-­‐351-­‐03-­‐024 REISINGER  FAMILY  TRUST 8170  E  KALIL  DR   SCOTTSDALE,  AZ  85260 1943-­‐351-­‐03-­‐025 ZUMBO,  PAUL,  JR  &  MARIE  A. 3029  SHORE  DR   MERRICK,  NY  11566 1943-­‐351-­‐03-­‐023 GERRITY,  MICHAEL  J.  &  JUDY  -­‐  ETAL 2202  N  ROGERS   OLATHE,  KS  66062 1943-­‐351-­‐03-­‐022 BAUMANN,  BARBARA  M.  &  FREDERICK  J. 110  EUDORA  ST   DENVER,  CO  80220 1943-­‐351-­‐03-­‐021 KARSH,  BRICE  W. 53  GLENMOOR  WAY   ENGLEWOOD,  CO  80113-­‐7120 1943-­‐351-­‐03-­‐020 DECKER,  MICHAEL  GEORGE  -­‐  KRAJICEK,  CATHERINE   LEE 4238  CANARY  ISLE  CT   KATY,  TX  77450 23 Attachment B J.  A PPENDICES 1.    Proposed  Final  Plat  and  Topo  Survey  of  Wildridge  Point 2.    1981  Wildridge  Final  Plat 3.    Letter  from  Staff  9/19/12 4.    Title  Reports 24 Attachment B 1.  Proposed  Final  Plat  and  Topo  Survey  of   Wildridge  Point Attachment B Attachment B Attachment B Attachment B 2.  1981  Wildridge  Final  Plat Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B Attachment B 3.  Letter  from  Staff  9/19/12 Attachment B At t a c h m e n t B At t a c h m e n t B 4.Title  Reports Attachment B Schedule A Our Order No. Cust. Ref.: 1. Effective Date: 2. Policy to be Issued, and Proposed Insured: 3. The estate or interest in the land described or referred to in this Commitment and covered herein is: 4. Title to the estate or interest covered herein is at the effective date hereof vested in: 5. The Land referred to in this Commitment is described as follows: Property Address: VB50033720-2 A L T A C O M M I T M E N T 5091 WILDRIDGE RD. AKA LOT 33 BLK 4 WILDRIDGE SUB AVON, CO 81620 May 25, 2012 at 5:00 P.M. "ALTA" Owner's Policy 06-17-06 Proposed Insured: MOUNTAIN C.I. HOLDINGS LIMITED, AN ONTARIO CORPORATION $436,500.00 A Fee Simple WILDAVON ENTERPRISES LLC, A COLORADO LIMITED LIABILITY COMPANY LOT 33, BLOCK 4, WILDRIDGE ACCORDING TO THE FINAL SUBDIVISION PLAT, RECORDED OCTOBER 8, 1981 IN BOOK 330 AT PAGE 78, COUNTY OF EAGLE, STATE OF COLORADO. First American Title Insurance Company Attachment B The following are the requirements to be complied with: (Requirements)Our Order No. A L T A C O M M I T M E N T Schedule B - Section 1 VB50033720-2 1. 2. 3. 4. Item (a) Payment to or for the account of the grantors or mortgagors of the full consideration for the estate or interest to be insured. Item (b) Proper instrument(s) creating the estate or interest to be insured must be executed and duly filed for record, to-wit: Item (c) Payment of all taxes, charges or assessments levied and assessed against the subject premises which are due and payable. Item (d) Additional requirements, if any disclosed below: EVIDENCE SATISFACTORY TO THE COMPANY THAT THE TERMS, CONDITIONS AND PROVISIONS OF THE TOWN OF AVON TRANSFER TAX HAVE BEEN SATISFIED. RELEASE OF DEED OF TRUST DATED MAY 29, 2007 FROM WILDAVON ENTERPRISES LLC, A COLORADO LIMITED LIABILITY COMPANY TO THE PUBLIC TRUSTEE OF EAGLE COUNTY FOR THE USE OF MILLENIUM BANK TO SECURE THE SUM OF $377,300.00 RECORDED JUNE 04, 2007, UNDER RECEPTION NO. 200714292. MODIFICATION AGREEMENT IN CONNECTION WITH SAID DEED OF TRUST WAS RECORDED MAY 12, 2011 UNDER RECEPTION NO. 201108610. EVIDENCE SATISFACTORY TO THE COMPANY THAT MOUNTAIN C.I. HOLDINGS LIMITED, AN ONTARIO CORPORATION IS AN ENTITY CAPABLE OF ACQUIRING TITLE TO SUBJECT PROPERTY. WARRANTY DEED FROM WILDAVON ENTERPRISES LLC, A COLORADO LIMITED LIABILITY COMPANY TO MOUNTAIN C.I. HOLDINGS LIMITED, AN ONTARIO CORPORATION CONVEYING SUBJECT PROPERTY. NOTE: AFFIDAVIT/STATEMENT OF AUTHORITY RECORDED DECEMBER 27, 2011 UNDER RECEPTION NO. 201124071 DISCLOSES DAVID DANTAS AS MEMBER(S) WHO MAY ACQUIRE, CONVEY, ENCUMBER, LEASE OR OTHERWISE DEAL WITH INTERESTS IN REAL PROPERTY FOR WILDAVON ENTERPRISES LLC, A COLORADO LIMITED LIABILITY COMPANY. THE FOLLOWING DELETIONS/MODIFICATIONS ARE FOR THE OWNER'S POLICY. Attachment B The policy or policies to be issued will contain exceptions to the following unless the same are disposed of to the satisfaction of the Company: (Exceptions)Our Order No. A L T A C O M M I T M E N T Schedule B - Section 2 VB50033720-2 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Any facts, rights, interests, or claims thereof, not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value the estate or interest or mortgage thereon covered by this Commitment. Any and all unpaid taxes, assessments and unredeemed tax sales. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. RIGHTS OF WAY FOR DITCHES OR CANALS CONSTRUCTED BY THE AUTHORITY OF THE UNITED STATES, AS RESERVED IN UNITED STATES PATENT RECORDED NOVEMBER 23, 1949, IN BOOK 134 AT PAGE 524. RESERVATION OF ALL THE COAL AND OTHER MINERALS IN THE LAND TOGETHER WITH THE RIGHT TO PROSPECT FOR MINE AND REMOVE THE SAME PURSUANT TO THE PROVISIONS AND LIMITATIONS OF THE ACT OF DECEMBER 29, 1916 AS RESERVED IN DOCUMENT RECORDED NOVEMBER 23, 1949 IN BOOK 134 AT PAGE 524. RESTRICTIVE COVENANTS WHICH DO NOT CONTAIN A FORFEITURE OR REVERTER CLAUSE, BUT OMITTING ANY COVENANTS OR RESTRICTIONS, IF ANY, BASED UPON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, HANDICAP, NATIONAL ORIGIN, ANCESTRY, OR SOURCE OF INCOME, AS SET FORTH IN APPLICABLE STATE OR FEDERAL LAWS, EXCEPT TO THE EXTENT THAT SAID COVENANT OR RESTRICTION IS PERMITTED BY APPLICABLE LAW, AS CONTAINED IN INSTRUMENT RECORDED SEPTEMBER 14, 1982, IN BOOK 345 AT PAGE 844. EASEMENTS, CONDITIONS, COVENANTS, RESTRICTIONS, RESERVATIONS AND NOTES ON THE WILDRIDGE SUBDIVISION FINAL PLAT RECORDED OCTOBER 8, 1981 IN BOOK 330 AT PAGE 78. Attachment B Schedule A Our Order No. Cust. Ref.: 1. Effective Date: 2. Policy to be Issued, and Proposed Insured: 3. The estate or interest in the land described or referred to in this Commitment and covered herein is: 4. Title to the estate or interest covered herein is at the effective date hereof vested in: 5. The Land referred to in this Commitment is described as follows: Property Address: V50033531-2 A L T A C O M M I T M E N T 5081 WILDRIDGE ROAD EAST AKA LOT 34 BLK 4 WILDRIDGE AVON, CO 81620 May 09, 2012 at 5:00 P.M. "ALTA" Owner's Policy 06-17-06 Proposed Insured: MOUNTAIN C.I. HOLDINGS LIMITED, AN ONTARIO CORPORATION $685,000.00 A Fee Simple MATT IVY AND JANE IVY AS TO AN UNDIVIDED 50% INTEREST AND DAVID LISCIO AS TO AN UNDIVIDED 50% INTEREST LOT 34, BLOCK 4, WILDRIDGE ACCORDING TO THE FINAL SUBDIVISION PLAT, RECORDED OCTOBER 8, 1981 IN BOOK 330 AT PAGE 78, COUNTY OF EAGLE, STATE OF COLORADO. First American Title Insurance Company Attachment B The following are the requirements to be complied with: (Requirements)Our Order No. A L T A C O M M I T M E N T Schedule B - Section 1 V50033531-2 1. 2. 3. Item (a) Payment to or for the account of the grantors or mortgagors of the full consideration for the estate or interest to be insured. Item (b) Proper instrument(s) creating the estate or interest to be insured must be executed and duly filed for record, to-wit: Item (c) Payment of all taxes, charges or assessments levied and assessed against the subject premises which are due and payable. Item (d) Additional requirements, if any disclosed below: EVIDENCE SATISFACTORY TO THE COMPANY THAT THE TERMS, CONDITIONS AND PROVISIONS OF THE TOWN OF AVON TRANSFER TAX HAVE BEEN SATISFIED. CERTIFIED COPY OF RESOLUTION OF THE GOVERNING BOARD OF MOUNTAIN C.I. HOLDINGS LIMITED, AN ONTARIO CORPORATION (AUTHORIZING THE PURCHASE OF THE SUBJECT PROPERTY AND THE EXECUTION OF NECESSARY DOCUMENTS) AND RECITING THAT THE BOARD HAS BEEN DULY AUTHORIZED IN THE PREMISES BY THE CORPORATION. SAID RESOLUTION MUST BE PROPERLY CERTIFIED BY AN OFFICER OF THE CORPORATION. SAID RESOLUTION MUST BE SUBMITTED TO AND APPROVED BY LAND TITLE GUARANTEE COMPANY BUT NEED NOT BE RECORDED. WARRANTY DEED FROM MATT IVY AND JANE IVY AS TO AN UNDIVIDED 50% INTEREST AND DAVID LISCIO AS TO AN UNDIVIDED 50% INTEREST TO MOUNTAIN C.I. HOLDINGS LIMITED, AN ONTARIO CORPORATION CONVEYING SUBJECT PROPERTY. THE FOLLOWING DELETIONS/MODIFICATIONS ARE FOR THE OWNER'S POLICY. NOTE: ITEMS 1-3 OF THE GENERAL EXCEPTIONS ARE HEREBY DELETED. UPON THE APPROVAL OF THE COMPANY AND THE RECEIPT OF A NOTARIZED FINAL LIEN AFFIDAVIT, ITEM NO. 4 OF THE GENERAL EXCEPTIONS ON THE OWNER'S POLICY WILL BE AMENDED AS FOLLOWS: ITEM NO. 4 OF THE GENERAL EXCEPTIONS IS DELETED AS TO ANY LIENS OR FUTURE LIENS RESULTING FROM WORK OR MATERIAL FURNISHED AT THE REQUEST OF MATT IVY AND JANE IVY AS TO AN UNDIVIDED 50% INTEREST AND DAVID LISCIO AS TO AN UNDIVIDED 50% INTEREST. FIRST AMERICAN TITLE INSURANCE COMPANY SHALL HAVE NO LIABILITY FOR ANY LIENS ARISING FROM WORK OR MATERIAL FURNISHED AT THE REQUEST OF MOUNTAIN Attachment B (Requirements)Our Order No. Continued: A L T A C O M M I T M E N T Schedule B - Section 1 V50033531-2 C.I. HOLDINGS LIMITED, AN ONTARIO CORPORATION. NOTE: ITEM 5 OF THE GENERAL EXCEPTIONS WILL BE DELETED IF LAND TITLE GUARANTEE COMPANY CONDUCTS THE CLOSING OF THE CONTEMPLATED TRANSACTION(S) AND RECORDS THE DOCUMENTS IN CONNECTION THEREWITH. NOTE: UPON PROOF OF PAYMENT OF ALL TAXES, ITEM 6 WILL BE AMENDED TO READ: TAXES AND ASSESSMENTS FOR THE YEAR 2012 AND SUBSEQUENT YEARS. Attachment B The policy or policies to be issued will contain exceptions to the following unless the same are disposed of to the satisfaction of the Company: (Exceptions)Our Order No. A L T A C O M M I T M E N T Schedule B - Section 2 V50033531-2 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Any facts, rights, interests, or claims thereof, not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the Public Records. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value the estate or interest or mortgage thereon covered by this Commitment. Any and all unpaid taxes, assessments and unredeemed tax sales. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. RIGHTS OF WAY FOR DITCHES OR CANALS CONSTRUCTED BY THE AUTHORITY OF THE UNITED STATES, AS RESERVED IN UNITED STATES PATENT RECORDED NOVEMBER 23, 1949, IN BOOK 134 AT PAGE 524. RESERVATION OF ALL THE COAL AND OTHER MINERALS IN THE LAND TOGETHER WITH THE RIGHT TO PROSPECT FOR MINE AND REMOVE THE SAME PURSUANT TO THE PROVISIONS AND LIMITATIONS OF THE ACT OF DECEMBER 29, 1916 AS RESERVED IN DOCUMENT RECORDED NOVEMBER 23, 1949 IN BOOK 134 AT PAGE 524. RESTRICTIVE COVENANTS WHICH DO NOT CONTAIN A FORFEITURE OR REVERTER CLAUSE, BUT OMITTING ANY COVENANTS OR RESTRICTIONS, IF ANY, BASED UPON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, HANDICAP, NATIONAL ORIGIN, ANCESTRY, OR SOURCE OF INCOME, AS SET FORTH IN APPLICABLE STATE OR FEDERAL LAWS, EXCEPT TO THE EXTENT THAT SAID COVENANT OR RESTRICTION IS PERMITTED BY APPLICABLE LAW, AS CONTAINED IN INSTRUMENT RECORDED SEPTEMBER 14, 1982, IN BOOK 345 AT PAGE 844. EASEMENTS, CONDITIONS, COVENANTS, RESTRICTIONS, RESERVATIONS AND NOTES ON THE WILDRIDGE SUBDIVISION FINAL PLAT RECORDED OCTOBER 8, 1981 IN BOOK 330 AT PAGE 78. Attachment B 1 Jared Barnes From:Tug Birk <dbirk@erwsd.org> Sent:Monday, January 14, 2013 9:25 AM To:Jared Barnes Subject:RE: Wildridge Point PUD Referral Jared,    Thanks for the referral.  I see only a couple of potential issues.  The first potential issue is the ability of the developer to  keep construction debris out of the easement. The second  is that there are a total of 4 SFE’s associated with these two  properties and these 4 SFE’s cannot be exceeded by the 3 new lots without water rights becoming an issue.  Please let  me know if you have any questions for me.    Thanks,      Tug Birk Development Review Coordinator  Eagle River Water and Sanitation District  970‐477‐5449  tbirk@erwsd.org        From: Jared Barnes [mailto:jbarnes@avon.org] Sent: Friday, January 04, 2013 3:19 PM Subject: Wildridge Point PUD Referral   Hello,  Pursuant to the Town of Avon’s development code, I am providing you with a referral request for the proposed  Wildridge Point PUD and Subdivision.  Attached is a summary of the request as well as a link to the Town of Avon’s  website, where the application documents are stored.    Thank you in advance for your time and please feel free to contact me with any questions you may have.  If you could  also provide me with any comments you have no later than February 4, 2013 at 5:00pm, I can make sure they are  presented at the public hearing the following day.    Regards,    Jared Barnes Planner I Community Development Town of Avon PO Box 975 Avon, CO 81620 970-748-4023   Attachment C EA-13-0006_1 Wildridge Point PUD and Subdivision 3:20 PM, 02/05/2013 February 5, 2013 Karen Berry Acting State Geologist Jared Barnes Town of Avon Community Development P.O. Box 975 Avon, CO 81620 Location: SW¼ NE¼ Section 35, T4S, R82W of the 6th P.M. Subject: Wildridge Point PUD and Subdivision Application Case #s PUD12004, SUB12005, and VAR13001; Eagle County, CO; CGS Unique No. EA-13-0006 Dear Jared: Colorado Geological Survey has completed its site visit and review of the above-referenced project. I understand the applicant proposes to convert two duplex lots within the Wildridge subdivision into three single family lots of approximately 0.5 to one acre each. The applicant seeks a variance to exempt the proposed PUD and subdivision from complying with minimum lot size requirements and steep slope development limitations. With this referral, I received a Final Plat (Peak Land Consultants, October 24, 2012), and a Wildridge Point Minor PUD Amendment, Minor Subdivision, and Variance application document (Mauriello Planning Group, December 31, 2012). No geologic or geotechnical information was provided. No description of how the applicant intends to achieve site grading necessary for driveways and building pads was provided. According to available geologic mapping (Tweto et al, 1978, Geologic map of the Leadville 1° x 2° quadrangle, northwestern Colorado: U.S.G.S., Miscellaneous Investigations Series Map I-999, scale 1:250,000), the site is underlain by the Eagle Valley Formation, consisting of "siltstone, shale, sandstone, carbonate rocks, and local lenses of gypsum." The shale and siltstone fractions are often associated with slope instability, and the carbonate and gypsum fractions are often associated with hydrocompaction (collapse under wetting), and dissolution features such as subsurface voids and sinkholes. CGS opposes approval of the variance request. All but approximately 4000 sq. ft. of existing Lot 33 contains very steep slopes of 50% to 60%. It appears that insufficient attention may have been given during the original Wildridge platting process to the existing slope conditions on Lot 33, corresponding to proposed Lots 2 and 3. Regardless of their designation at platting in 1981, we disagree with the applicant's statement (page 5) that "Lots 33 and 34 are entirely developable." The proposed resubdivision would result in one of the proposed lots (Lot 3) containing virtually no area with slopes less than 50%. Some combination of very large, retained fills and/or substantial cuts and retaining walls would be required to develop proposed Lots 2 and 3. The retaining walls would require extensive site characterization, analysis, and design. Slope stability analysis would be required to verify that temporary cuts would be stable during retaining wall construction. Stability analysis would be required to determine the potential impact on slope stability of large fill(s) and structures placed at the head (upper portion) of the slope below proposed lots 2 and 3. Eagle County geologic hazard mapping indicates that potentially unstable slopes are a concern in this area, so it is possible that the steep slope on and below proposed Lots 2 and 3 would be destabilized as a result of changes to the existing slope, loading and drainage configuration. COLORADO GEOLOGICAL SURVEY 1313 Sherman Street, Room 715 Denver, Colorado 80203 Phone 303.866.2611 Fax 303.866.2461 Attachment C Jared Barnes January 5, 2013 Page 2 of 2 EA-13-0006_1 Wildridge Point PUD and Subdivision 3:20 PM, 02/05/2013 Slope movement or failure could result in disruption (damming) and subsequent flooding or catastrophic release of water in Metcalf Creek below the site. It appears that the lower slope and Metcalf Creek are located within Town of Avon open space. CGS recommends that the town require, at a minimum and in support of its deliberations regarding the requested slope variance, (1) conceptual grading and drainage plans that reflect all of the grading (driveways, building pads, etc.), retaining walls and drainage that will be needed for development of the lots as proposed, and (2) that the feasibility and long-term stability of proposed cuts, fills and retaining walls be evaluated by a qualified geotechnical engineer. CGS looks forward to reviewing any grading plans or additional documentation provided by the applicant. Thank you for the opportunity to review and comment on this project. If you have questions or need clarification of issues identified during this review, please call me at (303) 866-2611 ext. 8316, or e-mail jill.carlson@state.co.us. Sincerely, Jill Carlson, C.E.G. Engineering Geologist Attachment C February 25, 2013 Jared Barnes, Town Planner Town of Avon PO Box 975 Avon, Colorado 81620 RE: Wildridge Point Dear Jared: The applicant is submitting this letter as a formal response to the comments of the Avon Planning and Zoning Commission, along with some of the comments from staff and referral agencies. At the previous hearing, the Planning and Zoning Commission recommended a limitation on building footprints on Lots 2 and 3. It was stated at the hearing that Lot 1 should not be restricted at all. We have submitted some studies indicating footprint limitations of 2,500 sq. ft., 3,000 sq. ft., and 3,500 sq. ft. As you can see from the studies, these footprints can be accommodated on the lots with the impact of grading relatively the same in each square footage study. We believe that a footprint limitation of 3,000 sq. ft. for Lot 2 and 2,500 sq. ft. for Lot 3 will accommodate an appropriate amount of development while allowing for adequate open space and minimizing site disturbance to a reasonable degree. The applicant is acceptable to a condition placed on the PUD amendment as stated above. In addition to the studies for building footprints, we have provided conceptual view analyses for the buildings from Wildridge Road East to better understand how the proposed development will be viewed from the public road. As you can see, the development is consistent with the neighborhood and will be advantageous to the Wildridge subdivision. We would like to take this opportunity to respond to the February 13, 2013, letter from the Colorado Geological Survey. There were some inaccuracies in the letter which are addressed below: 1. The letter states: “we disagree with the applicant's statement (page 5) that ‘Lots 33 and 34 are entirely developable.’” While understanding that the CGS Geologist may have some concern about the process to develop the property, as existing platted lots within the Wildridge Subdivision, these lots are developable under existing zoning and building code requirements. When originally platted, the Wildridge Subdivision did identify certain portions of lots as “undevelopable,” however, these lots do no include this designation. As a result, the existing Lots 33 and 34 are entirely developable per Avon regulations. In recognition of this, the proposed plat for Wildridge Point designates the steepest areas of the lot as undevelopable and improves the current situation for these properties. Mauriello  Planning  Group                                      MPGVail.com   P.O.  Box  4777                                                                                                                                                dominic@mpgvail.com Eagle,  CO  81631                                                                                                        970-­‐376-­‐3318 Attachment D 2.The CGS Geologist noted concerns about site grading for driveways and building pads. In response, we have provided conceptual designs for driveways and building sites. At building permit, the required technical studies and reports needed for development will be provided and reviewed by the Town Staff, as is the process for development on any site in Wildridge and the Town of Avon. 3.The CGS Geologist states that “the applicant seeks a variance to exempt the proposed PUD and subdivision from complying with minimum lot size requirements.” This statement is inaccurate as there is no request to vary from the minimum lot size requirements. Thank you for your time and consideration on this matter. Should you have any additional questions or concerns, please do not hesitate to contact me at 970.376.3318 or by email at dominic@mpgvail.com. Sincerely, Dominic F. Mauriello, AICP Principal 2 Attachment D Project number Date PO Box 1587, Eagle, CO 81631 www.martinmanleyarchitects.com Sheet 2/21/2013 3:59:19 PM FP-1 1225 Wildridge Point 02-21-13 Wildridge Road East Avon, CO 81620 PROGRESS SET 1 2 " = 1 ' - 0 " 1 2, 5 0 0 S . F . B U I L D I N G F O O T P R I N T S T U D Y LO T S 2 A N D 3 2 5 0 0 S . F . F O O T P R I N T 2500S.F. FOO T PRINT 74'3"4 %73'6" 4% 73 ' 5% 72 ' 6 " 70 ' 70 ' 70 ' 8% 5% 69 ' 6 " 7 5 ' U P P E R L E V E L 7 0 ' G A R A G E L E V E L 6 5 ' M A I N L E V E L 5 3 ' L O W E R L E V E L 7 3 ' T . O . W A L L 6 8 ' B T M W A L L 6 6 ' T . O . W A L L 6 0 ' B T M W A L L 7 0 ' T. O . W ALL 66 ' BTM WALL 64 ' T. O . W AL L 59 ' BTM WALL 8 0 ' U P P E R L E V E L 7 0 ' M A I N / G A R A G E L E V E L 5 8 ' L O W E R L E V E L 71'9" 4% 71'4% 3% 3 %70 '70 '6 9 '9 " 7 0 ' B T M W A L L 7 2 ' T . O . W A L L Attachment D Project number Date PO Box 1587, Eagle, CO 81631 www.martinmanleyarchitects.com Sheet 2/21/2013 3:59:26 PM FP-2 1225 Wildridge Point 02-21-13 Wildridge Road East Avon, CO 81620 PROGRESS SET 1 2 " = 1 ' - 0 " 1 3, 0 0 0 S . F . B U I L D I N G F O O T P R I N T S T U D Y LO T S 2 A N D 3 3 0 0 0 S . F . F O O T P R I N T 3000S.F. FOO T PRINT 74'3"4 %73'6" 4% 73 ' 5% 72 ' 6 " 70 ' 70 ' 70 ' 8% 5% 69 ' 6 " 7 5 ' U P P E R L E V E L 7 0 ' G A R A G E L E V E L 6 5 ' M A I N L E V E L 5 3 ' L O W E R L E V E L 7 3 ' T . O . W A L L 6 8 ' B T M W A L L 6 6 ' T . O . W A L L 6 0 ' B T M W A L L 7 0 ' T. O . W ALL 66 ' BTM WALL 64 ' T. O . W AL L 59 ' BTM WALL 8 0 ' U P P E R L E V E L 7 0 ' M A I N / G A R A G E L E V E L 5 8 ' L O W E R L E V E L 71'9" 4% 71'4% 3% 3 %70 '70 '6 9 '9 " 7 0 ' B T M W A L L 7 2 ' T . O . W A L L Attachment D Project number Date PO Box 1587, Eagle, CO 81631 www.martinmanleyarchitects.com Sheet 2/21/2013 3:59:32 PM FP-3 1225 Wildridge Point 02-21-13 Wildridge Road East Avon, CO 81620 PROGRESS SET 3 5 0 0 S . F . F O O T P R I N T 3500S.F. FOO T PRINT 74'3"4 %73'6" 4% 73 ' 5% 72 ' 6 " 70 ' 70 ' 70 ' 8% 5% 69 ' 6 " 7 5 ' U P P E R L E V E L 7 0 ' G A R A G E L E V E L 6 5 ' M A I N L E V E L 5 3 ' L O W E R L E V E L 7 3 ' T . O . W A L L 6 8 ' B T M W A L L 6 6 ' T . O . W A L L 6 0 ' B T M W A L L 7 0 ' T. O . W ALL 66 ' BT M WAL L 8 0 ' U P P E R L E V E L 7 0 ' M A I N / G A R A G E L E V E L 5 8 ' L O W E R L E V E L 71'9" 4% 71'4% 3% 3 %70 '70 '6 9 '9 " 7 0 ' B T M W A L L 7 2 ' T . O . W A L L 1 2 " = 1 ' - 0 " 1 3, 5 0 0 S . F . B U I L D I N G F O O T P R I N T S T U D Y LO T S 2 A N D 3 Attachment D Project number Date PO Box 1587, Eagle, CO 81631 www.martinmanleyarchitects.com Sheet 2/21/2013 3:59:39 PM RD-1 1225 Wildridge Point 02-21-13 Wildridge Road East Avon, CO 81620 PROGRESS SET 1 - 3 D V i e w f r o m r o a d # 1 ( n o r t h b o u n d ) Attachment D Project number Date PO Box 1587, Eagle, CO 81631 www.martinmanleyarchitects.com Sheet 2/21/2013 3:59:44 PM RD-2 1225 Wildridge Point 02-21-13 Wildridge Road East Avon, CO 81620 PROGRESS SET 1 - 3 D V i e w f r o m r o a d # 2 ( n o r t h b o u n d ) Attachment D Project number Date PO Box 1587, Eagle, CO 81631 www.martinmanleyarchitects.com Sheet 2/21/2013 3:59:48 PM RD-3 1225 Wildridge Point 02-21-13 Wildridge Road East Avon, CO 81620 PROGRESS SET 1 - 3 D V i e w f r o m r o a d # 3 ( n o r t h b o u n d ) Attachment D Project number Date PO Box 1587, Eagle, CO 81631 www.martinmanleyarchitects.com Sheet 2/21/2013 3:59:54 PM RD-4 1225 Wildridge Point 02-21-13 Wildridge Road East Avon, CO 81620 PROGRESS SET 1 - 3 D V i e w f r o m r o a d # 1 ( s o u t h b o u n d ) Attachment D March 19, 2013 Avon Town Council C/O Jared Barnes, Town Planner P.O. Box 975 Avon, CO 81620 Re: Wildridge Point Subdivision and Minor Amendment Application Dear Town Council members: Thank you for your consideration on the Wildridge Point Subdivision and Minor Amendment application for Lots 33 and 34, Block 4, Wildridge Subdivision. As you may be aware, the Planning and Zoning Commission recommended approval of the Minor Amendment request at their March 5, 2013, hearing. At that time, the Planning and Zoning Commission was also reviewing a variance request for the project, but ultimately decided that the variance was unnecessary for the project. The Minor Subdivision request is only acted upon by the Town Council. This letter is intended to provide you with some background for the Planning and Zoning Commission’s decision on the variance. We submitted applications to the Town of Avon for the Minor PUD Amendment and Minor Subdivision on November 21, 2012. The proposal is to add a lot line to create three single family lots from two duplex lots, thereby reducing number of units by one. This is not the subdivision of unplatted land, but is a simple replat. Based on our understanding of the Avon Development Code, the code sections which deal with slopes did not apply to this project as Section 7.28.100 provides the following: Applicability. The standards in this section shall apply to any new subdivision, PUD, or zoning amendment when any portion of the lot contains naturally--occurring slopes of thirty percent (30%) or greater. Because our application was not a new subdivision, PUD, or zoning amendment, this section of the Avon Development Code was not applicable to our proposal for a minor subdivision of existing platted lots within an existing PUD. Furthermore, the Wildridge PUD identifies non- developable areas of lots and neither of the lots included any area identified as non- developable. However, during staff’s completeness review, the staff determined that a variance application would be required prior to scheduling the applications for a public hearing. Though we did not agree to this requirement, we submitted the associated application and fee of $500.00 so that the application would be allowed to move forward in the process. Mauriello  Planning  Group                                            MPGVail.com   P.O.  Box  4777                                                                                            dominic@mpgvail.com Eagle,  CO  81631                                                      970-­‐376-­‐3318 Attachment E The Planning and Zoning Commission reviewed the proposal on February 5, 2013, then again on March 19, 2013. At the meetings, there was a great deal of discussion regarding the applicability of Section 7.28.100 of the Avon Development Code, due to staff’s interpretation of the applicability of this section, along with the staff recommendation of denial of the variance. Ultimately, the Planning and Zoning Commission found that a variance from Section 7.28.100 was not necessary as the proposal did not fall into the application types which would make it applicable and that specifically in this case the variance was not warranted. The P&Z supports the proposed application because of the additional limitations proposed by the applicant including non-buildable areas and building footprint restrictions. We believe that the P&Z would have voted in favor of the variance had they determined that the standard had been applicable given the specific circumstances of these properties. The application before you today includes the Minor Subdivision to add the additional lot line and the Minor PUD Amendment (Planning and Zoning Commission recommended approval). Because the Planning and Zoning Commission found that the variance was not applicable to this project, no action was taken on the variance request, and no further action is required by the Town Council. Thank you for your consideration on this matter. Sincerely, Dominic F. Mauriello, AICP Principal 2 Attachment E At t a c h m e n t F At t a c h m e n t F At t a c h m e n t F Ord 13-05 Wildridge Point Minor PUD Amendment and Minor Subdivision March 26, 2013 Page 1 of 4 TOWN OF AVON, COLORADO ORDINANCE 13-05 SERIES OF 2013 AN ORDINANCE APPROVING A MINOR PUD AMENDMENT AND MINOR SUBDIVISION FOR WILDRIDGE POINT ON LOTS 33-34, BLOCK 4, WILRIDGE SUBIDIVISION, TOWN OF AVON, EAGLE COUNTY, COLORADO WHEREAS, the Town of Avon (“Town”) is a home rule authority municipal corporation and body politic organized under the laws of the State of Colorado and possessing the maximum powers, authority and privileges to which it is entitled under Colorado law; and WHEREAS, Dominic Mauriello, Mauriello Planning Group (the “Applicant”) on behalf of Mountain C.I. Holdings LTD (the “Owner”) has submitted a Minor PUD amendment, Minor Subdivision, and Variance Application (collectively, the “Application”) to modify the platted development rights to allow for the construction of three (3) single family residences on the subject property; and WHEREAS, the Planning and Zoning Commission held public hearings on February 5, 2013 and March 5, 2013 after posting notice of such hearings in accordance with the requirements of Section 7.16.020(d), Step 4: Notice, Avon Municipal Code, and considered all comments provided before taking action; and WHEREAS, the Planning and Zoning Commission recommended to the Town Council approval of the Application through the Planning and Zoning Commission Findings of Fact, Record of Decision, and Recommendations dated March 12, 2013; and WHEREAS, pursuant to Section 7.16.060(e)(4), Review Criteria, and Section 7.16.070(f), Final Plat Review Criteria, Avon Municipal Code, the Town Council has considered the applicable review criteria for the Application; and WHEREAS, the Town Council held public hearings on March 26, 2013 and April 9, 2013 after posting notice of such hearing in accordance with the requirements of Section 7.16.020(d), Step 4: Notice, Avon Municipal Code, and considered all comments provided before taking action; and WHEREAS, the Town Council finds that the health, safety and welfare of the Avon community will be enhanced and promoted by the 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 with 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. Attachment G Ord 13-05 Wildridge Point Minor PUD Amendment and Minor Subdivision March 26, 2013 Page 2 of 4 NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Wildridge Point Minor PUD Amendment. The Wildridge Point Minor PUD Amendment application for Lots 33 and 34, Block 4, Wildridge Subdivision is hereby approved as follows: A. The Wildridge PUD and Replat No. 2 (Exhibit A) is amended for Lots 33 and 34, Block 4, Wildridge Subdivision to modify the allowable maximum density of “2 Units Each” for each lot to a total of three (3) single family for the newly platted Lots 1-3, Wildridge Point Subdivision. Section 3. Wildridge Point Minor Subdivision. The Final Plat for the Wildridge Point Subdivision, A Resubdivision of Lots 33 and 34, Block 4, Wildridge Subdivision, Town of Avon, County of Eagle, State of Colorado is hereby approved. Section 4. Correction of Errors. Town Staff is authorized to insert proper dates, references to recording information and make similar changes, and to correct any typographical, grammatical, cross-reference, or other errors which may be discovered in any documents associated with this Ordinance and documents approved by this Ordinance provided that such corrections do not change the substantive terms and provisions of such documents. Section 5. 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 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 6. Effective Date. This Ordinance shall take effect thirty days after final adoption in accordance with Section 6.4 of the Avon Home Rule Charter. Section 7. 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 Attachment G Ord 13-05 Wildridge Point Minor PUD Amendment and Minor Subdivision March 26, 2013 Page 3 of 4 welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 8. 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 at the Avon Town Hall, Avon Recreation Center and Avon Public Library, 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. The Town Clerk is further ordered to publish a notice stating a vested property right has been created in accordance with Section 7.16.140(d)(2) of the Avon Municipal Code. Section 9. Final Action. Approval and final adoption of this Ordinance on second reading constitutes the Town’s final action for the purposes of any appeal, legal challenge or referendum seeking reconsideration of the decision of the Town Council with respect to this Ordinance and matters approved hereby in accordance with Section 7.16.020(f)(5) of the Avon Municipal Code and in accordance with Chapters VI and VII of the Avon Home Rule Charter. [EXECUTION PAGE FOLLOWS] Attachment G Ord 13-05 Wildridge Point Minor PUD Amendment and Minor Subdivision March 26, 2013 Page 4 of 4 INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED POSTED on March 26, 2013 and a public hearing on this ordinance shall be held at the regular meeting of the Town Council on April 9, 2013, at 5:30 P.M. in the Council Chambers, Avon Municipal Building, One Lake Street, Avon, Colorado. ____________________________ 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 Heil, Town Attorney INTRODUCED, FINALLY APPROVED, AND PASSED ON SECOND READING, AND ORDERED PUBLISHED BY POSTING on 9th day of April, 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 G Exhibit A to Ordinance 13-05 Exhibit A to Ordinance 13-05 AMC Amendments  April 9, 2013 Town Council Work Session                                                Page 1 of 4        TOWN COUNCIL REPORT    To:  Honorable Mayor Rich Carroll and Avon Town Council  From:   Matt Pielsticker, Planner II        Date:   April 3, 2013  Agenda Topic:  Code Text  Amendments recommended by PZC    Summary  The Town Council approved the 2013 Work Plan on February 26, 2013, which includes the following task in  the second quarter of this year: “Identify with the PZC Code Amendments, including “clean‐up” of  definitions, charts, etc. identified through use of the Code over the past year and sections which should be  updated, and sections which should be updated such as the sign code”.   Staff has been working with the PZC  to identify and prioritize a list of amendments.    This Report summarizes the list of potential amendments identified by PZC and Staff over the past two  years, while implementing Title 7: Development Code.   The list also includes amendments identified by the  Building Official for Chapter 15: Building Code, and the Town Attorney.   For efficiency, Staff recommends  that Council formally initiate all of the amendments listed in this Report, and direct Staff to process the  amendments in two (2) tiers.  Therefore, the highest priority amendments can commence immediately,  and once the 1st Tier Amendments are complete the 2nd Tier Amendments can begin the process with PZC  review.    Presented to Council are the two tiers recommended by PZC at their March 19, 2013 meeting.  Each  amendment includes a code section reference and a brief description.      1st Tier Code Amendments  1. PUD Amendments vs. Minor Amendments  |  §7.16.060(h), Amendments to Final PUD    Description:  All non‐administrative qualifying amendments to established PUD Plans are  governed by this section – which states that §7.16.020(g), Minor Amendment, being the  controlling code section.  The Minor Amendment section is intended to apply to already  approved development plan approvals (i.e. single‐family home design approval) or permit  approvals for same; there is no indication how a PUD Amendment would be processed.   Additionally, there is no review criteria called out.  This section should refer to §7.16.020 for a  general public review process; Table7.16‐1 should be amended to include Amendment to Final  PUDs and should allow a one‐step review process by PZC and Town Council for minor  amendments to a Final PUD and a clear set of review criteria should be created so as to not  mimic the criteria for a Final PUD which are intended for new PUD overlay districts.    2. PZC/TC Processing Requirements  |  §7.16.020(e), Public Hearings  Description:  The PZC or Council can continue a public hearing on its own initiative for a  maximum of thirty‐five (35) days after the date of the first public hearing, or up to ninety‐five  (95) days with the consent of the applicant.  PZC has expressed the desire to lengthen the  time‐frame based on the size or complexity of the application.  Clarify that PZC/Council has a  AMC Amendments  April 9, 2013 Town Council Work Session                                                Page 2 of 4    certain number of days (20‐35?) after the close of the public hearing to prepare Findings of  Fact and Record of Decision and take final action.    3. Natural Resource Protection | §7.28.100, Applicability, & §7.28.100(d)(2) Flood Damage  Prevention  Description:  The trigger for the various regulations in this Chapter should be reviewed in  light of recent development applications.  This may require new definitions, and  consideration should be given to whether or not the steep slope requirements could be  repealed in their entirety if not applied in a uniform basis.  Additionally, FEMA is mandating  that the Rules and Regulations regarding floodplains be updated by January 14, 2014.  This  will bring Avon into compliance with federally backed loans and other financial assistance  should there be a natural disaster.     4. Defined Terms  |  §7.08.010, Definitions  Description:  As described in the Work Plan, a general sweep of the entire Title 7 including  definitions was identified.  The whole Development Code will be reviewed for consistency  with definitions to determine whether certain terms and words are properly defined.  For  example, the “Town Core” is defined as the “central” commercial core, excluding residential  property, and is further defined with the Town Core Map.  Staff recommends removing the  properties north of Interstate‐70 from the Town Core Map since Council review is not  warranted in this area.    2nd Tier Amendments  1. Signs |  §15.28, Sign Code  Description:  These regulations have not been updated in substance since 1986 and should be  reviewed against the Town Center District Plans and the current needs of the business  community.  Staff anticipates involvement from the Avon Business Association (ABA) and/or  the Economic Development Subcommittee if necessary.    2. Mailed Notice  |  §7.06.020(d)(2)    Description:  This section requires mailed notice for zoning amendments, subdivision, PUD,  and variance applications.  In order to provide consistency with the previous AMC  requirements and to give adequate notice to neighboring property owners for Special  Review Use (“SRU”) permits, it is recommended to include SRU permits in the list of required  application types for Mailed Notice since these approvals are site specific and could affect  adjacent properties.    3. Historic Preservation Committee  |  §7.12.070, Historic Preservation Committee, Table 7.16‐1,  Development Review Procedures and Review Authority,  §7.16.170, Historic Designation  Description:  When the ADC was codified, the then existing procedures related to the  establishment of a Historic Preservation and the procedures for nominating properties or  structures for listing were inadvertently removed from the Municipal Code.  This was brought  to the attention of the Town Council by the Committee, and Council ultimately directed Staff  to start the process to re‐establish these procedures and related regulations.       AMC Amendments  April 9, 2013 Town Council Work Session                                                Page 3 of 4    4. Re‐zoning & Zoning Amendments  |  §7.16.050, Zoning Amendments  Description:  The terms ‘rezoning’ and ‘zoning amendment’ are used interchangeably  throughout the Development Code.  Staff’s preference is to use the term re‐zoning in all  instances for consistency and clarity.  While changing the zoning entitlements for a piece of  property through a different process (i.e. PUD Amendment) can also be considered a zoning  amendment, this section clearly is intended to be applied to changes in zoning classifications.    5. Design Review Purpose  |  §7.16.090, Design Review  Description:  The purpose statement for Design Review references “conformance with the  Avon Design Guidelines”. Since the Town no longer has design guidelines, this section should  reference the Design Standards, §7.28.090.    6. Neighborhood Commercial Zone District  |  §7.20.080(a), Neighborhood Commercial, Table  7.20‐7, Dimensions for the Neighborhood Commercial District  Description:  The Neighborhood Commercial (NC) zone district does not include a maximum  density.  It includes the same provision that is included with the MC and TC zone districts that  allow for unlimited densities so long as adequate water is brought to the table.  The intention  of that clause was for property within the town core, but the NC zone district tends to be  located in outlying areas and should include a maximum density.    7. Allowed Uses for Industrial Commercial (IC)  |  Table 7.24‐1  Description:  During the review of a SRU permit in the IC district, PZC discussed the need to  reconsider the permitted and list of uses eligible for SRU for this zone district.    8. Landscaping  |  §7.28.050(f)(1) Parking Lot Perimeter Landscaping  Description:  The section requires 1.2 “landscape units” per lineal foot of parking lot  perimeter, and the number appeared to be abnormally high to achieve the desired screening  requirements.  Through implementation, this section was identified by PZC as a candidate for  amendment.    9. Building Code Cleanup  |  Title 15, Building Code  §15.04.010, Violations – should include language “firm, or corporation”  §.15.08.010, Adoption – Missing reference  §15.08.036, Commercial Floor and Roof ‐  to mimic residential load requirements.  §15.08.120, Ground Snow Loads – Exterior decks shall also hold roof snow loads.  §15.08.300 & 310, Violation – Delete these sections since they are covered in §15.04.010 &  §15.04.020 respectively  §15.12.010, Adoption – Should reference new edition title 2011 National Electrical Code, “or  most current version”.  §15.12.300, §15.14.300, §15.18.300, §15.20.300, §15.26.300 – all violation sections missing the  words “extend and remove.”    10. Fireplaces  |  §15.24, Solid‐Fuel Burning Devices  AMC Amendments  April 9, 2013 Town Council Work Session                                                Page 4 of 4    Description:  These regulations permit wood burning fireplaces above the elevation of 7,820  ft.  The Chief Building Official has considered limiting wood burning devices altogether for  health and safety purposes.     12.  FEMA Regulations  |  §7.28.100(d)(2) Flood Damage Prevention  Description:  FEMA is mandating that the Rules and Regulations regarding floodplains be  updated by January 14, 2014.  This will bring Avon into compliance with federally backed  loans and other financial assistance should there be a natural disaster.    Process  The process for Municipal Code amendments are governed by AMC §7.16.040.  Code text amendments  may only be initiated by a property owner, registered elector, or Town Council.  Once initiated, the process  follows the usual public hearing review procedure outlined in the Municipal Code (i.e. Staff  recommendation to PZC, PZC recommendation to Council, and final action by Council with Ordinance).      Staff Recommendation  Initiate this amendment process by motion and vote of the Council.       PZC Rules of Procedure April 9, 2013 Town Council Regular Meeting TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Jared Barnes, Planner I Date: April 9, 2013 Agenda topic: PZC Rules of Procedure Summary The Planning and Zoning Commission (PZC) has previously adopted Rules of Procedure as a part of the Avon Design Guidelines. In 2010, when the Town adopted AMC Title 7, Development Code, the Design Guidelines were eliminated as the new code included design standards. This also caused the previously adopted Rules of Procedure to be removed. §7.12.040, Planning and Zoning Commission, sets forth codified standards for the PZC including, but not limited to: Establishment and Purpose; Duties; Membership; Qualifications of Members; Quorum; Term; Vacancies; Removal from Office; Officers; Compensation; Staff; Rules and Procedures; Meetings; Material to be Submitted; Agenda; and, Authority to Retain Consultants. §7.12.040(l), Rules and Procedures, requires the PZC to operate in compliance with their own Rules of Procedure. It further states that these Rules of Procedures may be adopted or amended from time to time through a recommendation to Town Council and formal adoption by Town Council. Other sections, such as §7.12.040(m), Meetings, and §7.12.040(n), Materials to be Submitted, state that the Rules of Procedure shall govern. Process and PZC Review This matter was identified in the 2013 PZC Work Plan for the 1st Quarter, and therefore Staff has prepared Draft Rules of Procedure (Attachment A) for the PZC to review. The PZC reviewed these Rules of Procedure at both their March 19th, 2013 and April 2nd, 2013 meetings. At their April 2nd, 2013 meeting, the PZC recommended these proposed Rules of Procedure be adopted. Staff is of the opinion that these Rules of Procedure, as proposed, provide clarity to the process that occurs at meetings and will assist future PZC members with better understanding the process they are expected to abide by. These rules of procedure also set forth standards for scheduling meeting and cancelling meetings; standard order of agendas; procedures for executive sessions; and, Decisions of the PZC among other aspects. Council Action If the Council is satisfied with the PZC recommended Rules of Procedure they should move to adopt the PZC Rules of Procedure (Attachment A). Attachment A: PZC Rules of Procedure, April 2013 1 | Page Planning and Zoning Commission Rules of Procedure (March 2013) Town of Avon Planning and Zoning Commission Rules of Procedure April 2013 Attachment A 2 | Page Planning and Zoning Commission Rules of Procedure (March 2013) Table of Contents 1. Authority For Adoption ......................................................................................................................... 4 2. Applicability ........................................................................................................................................... 4 3. Definitions ............................................................................................................................................. 4 4. Other Laws ............................................................................................................................................ 4 5. Regular Meetings .................................................................................................................................. 4 Date, Time and Place of Regular Meetings ...................................................................................... 4 (a) Notice of Regular Meetings ............................................................................................................. 4 (b) 6. Special Meetings ................................................................................................................................... 5 7. Continued Meetings .............................................................................................................................. 5 8. Cancellation of Meeting ........................................................................................................................ 5 9. Applicability of Colorado Open Meetings Law ...................................................................................... 5 10. Electronic Record/Minutes ............................................................................................................... 5 11. Director ............................................................................................................................................. 5 12. Agenda and Meeting Materials ........................................................................................................ 6 Proposed Agenda ............................................................................................................................. 6 (a) Meeting Packets ............................................................................................................................... 6 (b) 13. Officers .............................................................................................................................................. 6 14. Conduct of Commission Members .................................................................................................... 7 Conformity With Town Code of Ethics ............................................................................................. 7 (a) Ex Parte Contacts ............................................................................................................................. 7 (b) 15. Conflicts of Interest ........................................................................................................................... 7 16. Expressions of Bias, Prejudice, or Individual Opinion Prior to Hearing and Determination ............. 8 17. Action by the Commission ................................................................................................................ 8 Action By Motion ............................................................................................................................. 8 (a) Who May Make A Motion ................................................................................................................ 8 (b) Second Required .............................................................................................................................. 8 (c) One Motion at a Time ...................................................................................................................... 8 (d) Amending a Motion ......................................................................................................................... 8 (e) Rescind or Withdrawal of an Approved Motion .............................................................................. 8 (f) 18. Voting ................................................................................................................................................ 8 Who May Vote ................................................................................................................................. 8 (a) Attachment A 3 | Page Planning and Zoning Commission Rules of Procedure (March 2013) Adoption by Majority Vote .............................................................................................................. 8 (b) Duty to Vote ..................................................................................................................................... 8 (c) 19. Debate ............................................................................................................................................... 8 20. Executive Sessions............................................................................................................................. 9 21. Site Visits ......................................................................................................................................... 10 22. General Provisions Governing Public Hearings ............................................................................... 10 Part of Meeting .............................................................................................................................. 10 (a) Representation .............................................................................................................................. 10 (b) Testimony Under Oath Not Required ............................................................................................ 10 (c) Right To Present Evidence And Cross-Examine Witnesses ............................................................ 10 (d) Rules Of Evidence........................................................................................................................... 11 (e) Objections ...................................................................................................................................... 11 (f) Burden Of Proof ............................................................................................................................. 11 (g) Limitation of Evidence ................................................................................................................... 11 (h) Order of Debate ............................................................................................................................. 11 (i) Commission and Staff's Remarks ................................................................................................... 11 (j) Applicant (and Others) Questioned ............................................................................................... 11 (k) 23. Consent Agenda .............................................................................................................................. 11 24. Regular Application Items (Non-Public Hearings) ........................................................................... 12 25. Regular Application Items (Public Hearings) ................................................................................... 13 26. Continuance of Hearing .................................................................................................................. 13 27. Audio-Tape of Public Hearing ......................................................................................................... 14 28. Record of the Public Hearing .......................................................................................................... 14 29. Reopening of a Public Hearing ........................................................................................................ 14 30. Decisions By Commission ................................................................................................................ 14 31. Execution of Documents ................................................................................................................. 14 32. Suspension of the Rules .................................................................................................................. 14 33. Amendment of the Rules ................................................................................................................ 15 34. Reference to Robert’s Rules of Order ............................................................................................. 15 35. Effect of Adoption of Rules ............................................................................................................. 15 Attachment A 4 | Page Planning and Zoning Commission Rules of Procedure (March 2013) 1. Authority For Adoption These Rules of Procedure are adopted pursuant to the authority granted to the Town of Avon Planning and Zoning Commission by §7.12.040(l) of the Avon Municipal Code. 2. Applicability These Rules of Procedure shall apply to all meetings of the Town of Avon’s Planning and Zoning Commission. These Rules of Procedure are intended to supplement and be superseded by the codified Rules listed in §7.16.040, Planning and Zoning Commission, of the Avon Municipal Code. 3. Definitions Rules means these Rules of Procedure, as amended from time to time. Commission means the Town of Avon’s Planning and Zoning Commission and also defined as PZC. Director means the Community Development Director of the Town of Avon, or such person’s designee. Presiding Officer means the Chair, or to the Vice-Chair or Temporary Chair when acting in the absence of the Chair. 4. Other Laws These Rules must be read in conjunction with the Town of Avon’s Development Code, as well as all applicable Town, state or federal laws, rules or regulations. In the event of a conflict between these Rules and any ordinance or statute, the ordinance or statute shall control. 5. Regular Meetings Date, Time and Place of Regular Meetings (a) The Commission shall hold regular meetings on the first and third Tuesdays of each month, except that if a regular meeting day is a legal holiday, the meeting may be rescheduled or cancelled at the discretion of the Commission. All regular meetings of the Commission shall be held in the Town Council Chambers of the Avon Municipal Building, One Lake Street, Avon, Colorado, unless the Commission shall otherwise order. Each regular meeting of the Commission shall begin at 5:00 P.M., unless otherwise provided in the notice of the meeting. At the discretion of the Director an application may be scheduled out of the normal order of business if it involves a matter of substantial public interest, or if the Director determines that good cause exists to vary the normal order of business. Further, by general consent of the Commission, items may be considered out of order. Notice of Regular Meetings (b) Notice of each regular meeting shall be posted by the Director in Town Hall and 3 additional public locations as designated by the Director not less than 24 hours prior to the holding of the meeting. The posting shall include specific agenda information where possible and may be substituted by the meeting agenda. Attachment A 5 | Page Planning and Zoning Commission Rules of Procedure (March 2013) 6. Special Meetings Special meetings of the Commission shall be called by the Director on the written request of the Chair, the Vice-Chair in the absence of the Chair, or on the written request of any four (4) members of the Commission. A special meeting may also be called or scheduled by vote of the Commission in open session during another duly called meeting. Notice of a special meeting shall be posted in accordance with Section 5(b). The notice shall set forth the date, hour, place and purpose of such meeting. No business shall be conducted at a special meeting of the Commission unless the same has been stated in the notice of such meeting; except that any business which may lawfully come before a regular meeting of the Commission may be transacted at a special meeting if all members of the Commission are present and consent thereto. 7. Continued Meetings A properly called regular or special meeting may be continued to a date and time certain by motion made and adopted in open session during the regular or special meeting. The motion shall state the date, time and place when the meeting will reconvene. No further notice need be given of such a continued session of a properly called regular or special meeting. 8. Cancellation of Meeting If: (i) no business is scheduled before the Commission; (ii) it is apparent that a quorum will not be available; or, (iii) the scheduled date for any Commission member is a legal holiday; a meeting may be cancelled by the Chair or the Director by giving notice to all members prior to the time set for such meeting. Notice of cancellation of a meeting may be given by telephone, electronically (email), fax, in person, or by first class mail. If no quorum is present at the meeting, the Director shall cancel the meeting and all items scheduled to be heard shall be rescheduled by the staff. 9. Applicability of Colorado Open Meetings Law All meetings of the Commission shall be subject to the provisions of the Colorado Open Meetings law. 10. Electronic Record/Minutes The Commission shall keep an electronic record of its meetings, including any executive sessions. In addition, written minutes of the Commission proceedings, except executive sessions, shall be kept as required by the Colorado Open Meetings law. Records of executive sessions shall be kept in accordance with the requirements of the Colorado Open Meetings law. These minutes shall be open to inspection of the public as provided in the Colorado Open Meetings law. The exact wording of each motion and the vote of the Commission thereon shall be recorded in the minutes. 11. Director The Director shall designate a person or persons to provide the necessary recording services for the Commission. The Director shall be responsible for the giving of all required notice of Commission public hearings and actions under the Development Code or Subdivision Standards. Attachment A 6 | Page Planning and Zoning Commission Rules of Procedure (March 2013) 12. Agenda and Meeting Materials Proposed Agenda (a) The Director shall set forth the agenda for each meeting. The Director may consult the Chair for input when formulating the agenda. The proposed agenda should generally be consistent with the Order of Business as follows: Call to Order Roll call Amendments to the Agenda Conflicts of Interest Disclosure Consent Agenda Regular Agenda Items (Public Hearings) Regular Agenda Items (Non-Public Hearings) Approval of Meeting Minutes Adjournment At the discretion of the Director, an application may be scheduled out of the normal order of business if it involves a matter of substantial public interest, or if the Director determines that good cause exists to vary the normal order of business. Further, by general consent of the Commission, during the Amendments to the Agenda portion of the meeting items may be considered out of order. Meeting Packets (b) Meeting Packets shall be provided to the Commission not later than 48 hours prior to the meeting. The meeting packets shall include the proposed agenda and meeting materials for each agenda item. The meeting materials for each agenda item should generally include a staff summary as well as accompanying information. 13. Officers Pursuant to Section 7.12.040(i), Officers, the PZC shall select its own chairperson, a vice chairperson and a secretary from among its members. This selection shall occur on a yearly basis immediately after the appointment of new members or re-appointment of existing members to the Commission. The Chair shall preside at all Commission meetings if he or she is present. The Chair may vote in all cases. In order to address the Commission, a member must be recognized by the Chair. If the Chair is absent, the Vice-Chair shall preside. If both the Chair and Vice-Chair are absent, another member designated by vote of the Commission shall preside as Temporary Chair. The Vice-Chair or Temporary Chair retains all of his or her rights as a member, including the right to make motions and the right to vote. The Presiding Officer shall maintain order and decorum, and to that end may order removal of disorderly or disruptive persons. Attachment A 7 | Page Planning and Zoning Commission Rules of Procedure (March 2013) 14. Conduct of Commission Members Conformity With Town Code of Ethics (a) The conduct of Commission members shall at all times conform with the requirements of the Town of Avon Code of Ethics (Chapter 2.30, AMC). Ex Parte Contacts (b) Each member of the Commission must exercise care in responding to and reporting any ex parte contact with respect to any matter which is pending before the Commission. (1) An ex parte contact is any contact (written, oral or electronic) concerning a matter pending before the Commission which is offered to or received by a member of the Commission outside of the actual hearing process. (2) Whenever a person attempts to make an ex parte contact with a member of the Commission, the member shall, to the extent possible, refuse to accept such ex parte contact. The member shall advise the person who is attempting to make the ex parte contact that all comments and information related to the pending matter should be presented to the entire Commission, as well as all interested parties, at the time of the public hearing. (3) Any member of the Commission who has received an ex parte contact must report the information and identify the source and date of the contact, to the full Commission and the applicant for inclusion in the formal record of the hearing on the application. (4) Any written ex parte contact transmitted to or received by a member of the Commission concerning a matter which is pending before the Commission, including printed and mailed communications, shall be forwarded directly to the Director for review and incorporation into the staff’s report. A copy of such written material shall also be provided to the applicant not later than the commencement of the hearing. (5) The rule against ex parte contacts shall not apply to preclude members of the Commission from seeking and receiving information from other members, the Director, the Town Attorney, or staff members of the Department of Community Development, but no member of the Commission shall discuss the matter with the applicant, the applicant’s counsel or representatives, or any person reasonably anticipated to be witnesses prior to the public hearing. 15. Conflicts of Interest The topic of conflicts of interest of Commission members is specifically dealt with in the Town’s Code of Ethics, specifically §2.30.060, Conflict of Interest. Attachment A 8 | Page Planning and Zoning Commission Rules of Procedure (March 2013) 16. Expressions of Bias, Prejudice, or Individual Opinion Prior to Hearing and Determination No member of the Commission shall express any bias, prejudice, or individual opinion on the proper outcome of a matter prior to its hearing and determination. 17. Action by the Commission Action By Motion (a) The Commission shall proceed by motion, unless otherwise required by applicable law. Who May Make A Motion (b) Any member of the Commission, including the Chair, may make a motion. Second Required (c) A motion requires a second. Any member of the Commission, including the Chair, may second a motion. One Motion at a Time (d) A member may make only one motion at a time. Amending a Motion (e) A member may suggest amendments to a motion that has been seconded. The amendments are only made to the motion if both the members making the motion and second accept the amendments. Rescind or Withdrawal of an Approved Motion (f) The Commission may rescind or withdrawal an approved motion if additional information is brought to light after the motion is made that alters the Commissions review or if a procedural error was made through the motion. 18. Voting Who May Vote (a) Except as provided in Section 15, with respect to a member who has a conflict of interest, each member of the Commission, including the Chair, must vote on any motion. Adoption by Majority Vote (b) A motion shall be adopted by a majority of the votes cast when a quorum is present. A majority is more than half. Duty to Vote (c) Every member of the Commission must vote unless excused by the remaining members of the Commission. The types of vote are limited to: (1) Yes; (2) No; and, (3) Abstain. 19. Debate The Chair shall state the motion and then open the floor to debate. The Chair shall preside over the debate according to the following general principles: 1. The maker of the motion is entitled to speak first; 2. A member who has not spoken on the issue shall be recognized before someone who has already spoken. Attachment A 9 | Page Planning and Zoning Commission Rules of Procedure (March 2013) At their discretion, the Chair may alter the order of the debate or allow members to further comment during the debate. It is the Chair’s duty to allow any member of the Commission to comment or debate if that member wishes to be heard. 20. Executive Sessions At any meeting the Commission, by consent of 2/3 of the quorum present, may go into executive session for those purposes authorized by law. No adoption of any proposed policy, position, resolution, rule, regulation or formal action shall occur at any executive session of the Commission which is not open to the public, except as authorized by the Colorado Open Meetings law. Prior to the Commission going into executive session the Chair shall announce to the public the general topic of executive session, including a specific citation to the applicable provision of the Colorado Open Meetings law which authorizes the Commission to meet in an executive session, and identification of the particular matters to be discussed in as much detail as possible without compromising the purpose for which the executive session is authorized. The Commission shall terminate the executive session by a majority vote. Only those actions authorized by statute may be taken in an executive session. A motion to adjourn or recess a meeting shall not be in order during an executive session. A tape recording of the actual contents of the discussion during an executive sessions shall be made by the Chair of the meeting at which the executive session is held. The tape recording of an executive session shall not be subject to public disclosure or to discovery in any administrative or judicial proceeding, except in an action brought pursuant to Section 24-72-204(5.5)(a), C.R.S. Such tape recording shall be retained by the Director for only ninety- one (91) days after the date of the executive session. If, on such date, the Town has not been served with a summons in an action to review such tape recording pursuant to Section 24-72-204(5.5)(a), C.R.S., the Director shall forthwith cause the tape recording of the executive session to be destroyed. The mandatory destruction of an executive session tape as provided in this Rule shall be deemed to be part of the Town’s record retention and destruction policy. If it appears that the tape recorder in the Commission chambers is not functioning properly at the time that an executive session is to be held, or if there is no tape recorder available at the location where the executive session is to by held, or when otherwise deemed necessary or advisable by the Commission, a written record of the actual contents of the discussion during an executive session which satisfies the requirements of Section 24-6-402 (2)(d.5)(II)(A) and (B), C.R.S., shall be kept. The written minutes of an executive session shall not be subject to public disclosure, or to discovery in any administrative or judicial proceeding, except in an action brought pursuant to Section 24-72-204(5.5)(a), C.R.S. The written record of an executive session, in the form of written minutes of the executive session, shall be retained by the Director for only ninety one (91) days after the date of the executive session. If, on such date, the Town has not been served with a summons in an action to review such written record pursuant to Section 24-72-204(5.5)(a), C.R.S., the Director shall forthwith cause the minutes of the executive session to be destroyed. The Attachment A 10 | Page Planning and Zoning Commission Rules of Procedure (March 2013) mandatory destruction of executive session minutes as provided in this Rule shall be deemed to be part of the Town’s record retention and destruction policy. The provisions of Section 24-6-402(2)(d.5)(II)(B), C.R.S., concerning privileged attorney-client communications which occur in an executive session shall apply to any record of an executive session kept by the Commission. 21. Site Visits Each commissioner should visit sites of proposed developments prior to attending a meeting, as a helpful way to gather relevant facts concerning the proposed development. A site visit often leads to a better understanding of a proposed development and, therefore, enhances the ability of the Commission to make appropriate decisions concerning the development of the site. The Commission, as a whole, may schedule and conduct a site visit when requested to do so by the applicant, the staff, the general public, or on its own initiative. In connection with any site visit conducted by the Commission, the applicant shall be notified not less than 48 hours in advance and given an opportunity to attend and participate in the site visit. A site visit shall be noticed by the Director as a public meeting of the Commission. However, a site visit is not a public hearing. Members of the public shall be permitted to attend the site visit to listen to the questions and comments of the staff, the applicant and the Commission, but only at the discretion of the Chair does the public have the right to ask questions of the staff, the applicant or the Commission members. Commission members shall avoid engaging in improper ex parte contacts during a site visit. No minutes of a site visit shall be kept by the Director, although the minutes of the Commission should reflect that a site visit was conducted. 22. General Provisions Governing Public Hearings Part of Meeting (a) A public hearing is considered to be part of a regular or special meeting of the Commission. Representation (b) At any hearing, any person may appear or be represented by authorized agents or attorneys at their own expense. Any person who appears before the Commission at any hearing shall be required to state the name(s) and address(es) of all persons whom he or she has been authorized to represent at the hearing. Testimony Under Oath Not Required (c) Testimony offered at a hearing before the Commission shall not be required to be given under oath or affirmation. Right To Present Evidence And Cross-Examine Witnesses (d) At a hearing held before the Commission, each party shall have the right to present such evidence as may be relevant, and to cross-examine all witnesses. Attachment A 11 | Page Planning and Zoning Commission Rules of Procedure (March 2013) Rules Of Evidence (e) The strict rules of evidence shall not apply to a hearing held before the Commission. Objections (f) Objections by the Applicant to submitted evidence shall be stated orally for the record. Any objection not made in a timely and proper fashion shall not be recognized. Burden Of Proof (g) The burden of proof shall be on an applicant to prove compliance with the applicable requirements of the Development Code, Subdivision Standards, or other applicable law by a preponderance of the evidence. Preponderance of the evidence means to prove that something is more probably true than not. Limitation of Evidence (h) The Presiding Officer shall have the authority to limit the presentation of evidence tending to be repetitious or which is immaterial or irrelevant. Order of Debate (i) Orderly procedure requires that each side shall proceed without interruption by the order; that all arguments and pleadings shall be addressed to the Commission; and that there be no questioning or argument between individuals. Commission and Staff's Remarks (j) During the hearing, Commission members and members of the staff may ask questions and make appropriate comments pertinent to the application; however, no member should debate or argue an issue with the applicant. Applicant (and Others) Questioned (k) The Commission members may direct questions to the applicant or any person speaking in order to bring out all relevant facts, and may call for questions from members of the staff. 23. Consent Agenda Items are presented to the Commission on a Consent Agenda when Commission action is required, but Staff expects that the Commission will approve the item without conditions. The Commission may call up items for further review when warranted, at their discretion. The following procedures shall be utilized for the review of the Consent Agenda; this review is intended only to ascertain if the items should remain on the Consent Agenda or be pulled off for further review: A. The Commission reviews the requests and asks minimal questions of the staff and applicants. These comments may be brief, and shall be limited to: (i) clarification of the Commissions understanding of the application(s); and (ii) the issue of whether a particular item should be removed from the Consent Agenda and called up by the Commission. C. The Commission may make motions to pull items off the Consent Agenda for further review. Attachment A 12 | Page Planning and Zoning Commission Rules of Procedure (March 2013) D. Any motions to remove items from the Consent Agenda shall be acted on at the time the motion is made. E. If no items are removed from the Consent Agenda, the Chair shall state "the Consent Agenda stands approved as presented". If an item has been removed, the Chair shall state that "all remaining items on the Consent Agenda stand approved as presented," and the Commission shall move on to the review of those items removed. F. Items removed from the Consent Agenda shall be reviewed in the order that would pertain to that type of application as is outlined in Sections 24 and 25. 24. Regular Application Items (Non-Public Hearings) The following process shall be utilized for all regular application items that are not specifically designated as public hearings and may be amended by the Chair at their discretion, subject to the right of the Commission to overrule the Chair: A. The Chair opens the hearing. B. Staff introduces the application and may provide a summary of the staff analysis. C. The Commission asks questions of the staff concerning the staff analysis or procedure of the application. D. The applicant or applicant's representative presents the applicant’s evidence in support of the application. D. The Commission asks questions of the applicant (or applicant’s representative) concerning the application. F. Audience participation and comment may only be allowed at the discretion of the Chair, subject to the right of the Commission to overrule the Chair. If comment is allowed, it shall take place prior to Commission comments; shall be allowed equally for all participants; and shall allow for an opportunity for the applicant to respond to any opposition comments. G. The staff is given the opportunity to rebut any evidence presented by the applicant or the public, and make its final comments. H. The applicant is given the opportunity to rebut any evidence presented by the staff or the public, and make its final comments. I. The Commission members are given a second opportunity to examine any witnesses and the applicant, and to discuss the request. J. Members of the Planning Commission make individual comments concerning the application. The analysis, as presented by the staff, and testimony, as presented by the applicant, may be discussed by the Commission. K. The Chair shall ask if any motions to accept or change the staff analysis and recommendation are to be made. Motions shall be made pursuant to Section 17. Attachment A 13 | Page Planning and Zoning Commission Rules of Procedure (March 2013) L. The Commission shall then vote on the proposed motion, including any and all additional, specific findings and conditions to be placed upon the application if approved. The vote from the Commission shall be pursuant to Section 18. 25. Regular Application Items (Public Hearings) The following process shall be utilized for all regular application items that are not specifically designated as public hearings and may be amended by the Chair at their discretion, subject to the right of the Commission to overrule the Chair: A. The Chair opens the public hearing. B. Staff introduces the application and may provide a summary of the staff analysis. C. The Commission asks questions of the staff concerning the staff analysis or procedure of the application. D. The applicant or applicant's representative presents the applicant’s evidence in support of the application. E. The Commission asks questions of the applicant (or applicant’s representative) concerning the application. F. The Chair opens the Public Hearing and the Commission takes public comment concerning the application. Once all public comment is received the Chair closes the Public Hearing, unless reopened pursuant to Section 29. G. The staff is given the opportunity to rebut any evidence presented by the applicant or the public, and make its final comments. H. The applicant is given the opportunity to rebut any evidence presented by the staff or the public, and make its final comments. J. Members of the Planning Commission make individual comments concerning the application. The analysis, as presented by the staff, and testimony, as presented by the applicant, may be discussed by the Commission. K. The Chair shall ask if any motions to accept or change the staff analysis and recommendation are to be made. Motions shall be made pursuant to Section 17. L. The Commission shall then vote on the proposed motion, including any and all additional, specific findings and conditions to be placed upon the application if approved. The vote from the Commission shall be pursuant to Section 18. 26. Continuance of Hearing The Commission may continue any hearing, upon timely request, for good cause shown, or upon its own initiative. If a hearing is continued to a date certain, it shall not be necessary to re-notice the hearing; it shall be conclusively presumed that all interested parties are aware of the continuation of the hearing. If any hearing is continued without a date certain being specified, it shall be necessary to re-notice the hearing in the same manner as the original notice of hearing was given. Attachment A 14 | Page Planning and Zoning Commission Rules of Procedure (March 2013) 27. Audio-Tape of Public Hearing An audio-taped record shall be made of each hearing which is held by the Commission. The Town shall retain the original audio-tape for not less than one (1) year. A copy of an audio- taped record of a hearing shall be made to any party upon written request and payment of a fee determined by the Town Clerk to be sufficient to reimburse the Town for the cost of providing such copy. The Town shall not be obligated to provide a transcript of a hearing which is held before the Commission, and any party desiring such transcript shall obtain and pay the cost thereof. 28. Record of the Public Hearing The record of a public hearing which is held before the Commission shall consist of: (i) all staff reports and similar information which is provided to the Commission in connection with the public hearing, excluding confidential attorney-client communications from the Town Attorney; (ii) all documents admitted into evidence by the Commission; (iii) all documents offered into evidence at the hearing, but not admitted; (iv) the written decision of the Commission; (v) copies of any applicable statutes, ordinances, rules or regulations; (vi) a transcript of the public hearing; and (vii) such other documents as may properly be included in the record. 29. Reopening of a Public Hearing Whenever a public hearing has been opened and continued to another date, or where it has been closed and the Commission wishes to take additional evidence prior to a vote or a reconsideration of a vote, the Chair may reopen the public hearing for purposes of taking such additional evidence. The Chair may limit the scope of such evidence to be taken. Whenever a public hearing is reopened and additional evidence is taken, all such additional evidence shall be deemed to be a part of the original public hearing. 30. Decisions By Commission The decisions by the Commission shall be pursuant to §7.16.020(f), Step 6: Review and Decision. 31. Execution of Documents Any document which requires the written approval of the Commission may be executed by the Chair, or in absence or incapacity of the Chair, by the Vice-Chair. In the event that both the Chair and the Vice-Chair are absent from the Town or are incapacitated at the same time, any member of the Commission may lawfully sign a document in the capacity of Assistant Vice-Chair. 32. Suspension of the Rules Any provision of these Rules not governed by the Town Charter or the ordinance which created the Commission may be temporarily suspended at any meeting of the Commission by a majority vote of the Commission. Any Rule may be suspended by general consent if the matter is presented by the Chair and there is no objection by any member of the Commission. Attachment A 15 | Page Planning and Zoning Commission Rules of Procedure (March 2013) 33. Amendment of the Rules These Rules may be amended at any regular meeting or at any properly called special meeting that includes amendment of the Rules as one of the stated purposes of the meeting. Adoption of an amendment shall be pursuant to §7.12.040(l) of the Avon Municipal Code. 34. Reference to Robert’s Rules of Order The Commission shall refer to the current edition of Robert’s Rules of Order Newly Revised, to answer procedural questions not resolved in these Rules, so long as Robert’s Rules of Order Newly Reviosed does not conflict with Colorado law, or with the spirit of these Rules. 35. Effect of Adoption of Rules These Rules supersede all prior rules and regulations of the Commission. Adopted: April 9th, 2013 Attachment A Heil Law & Planning, LLC Office: 303.975.6120 2696 South Colorado Blvd., Suite 550 Fax: 720.836.3337 Denver, CO 80222 E-Mail: eric@heillaw.com e-mail: ericheillaw@yahoo.com H EIL L AW TO: Honorable Mayor Carroll and Town Council Members FROM: Eric J. Heil, Town Attorney RE: Village (at Avon) Settlement Implementation Update DATE: April 5, 2013 Summary: This memorandum provides an update on the settlement implementation for the Village (at Avon) litigation. Attached is the latest document list with notes used by the respective attorneys. Amendments to the Traer Creek Metropolitan District and The Village Metropolitan District Service Plans: The Town received a revised draft of the proposed amendments to the Service Plans for the Traer Creek Metropolitan District and The Village Metropolitan District Service on March 1, 2013. I provided comments and proposed revisions on March 19, 2013, and subsequently met with representatives of the Metropolitan Districts and discussed proposed amendments with representatives of Traer Creek LLC. I have not received further revisions to the Service Plans from Traer Creek Metropolitan District or Village Metropolitan District. Various Conveyance Documents: The title insurance commitments have been updated and appear to be on track to finalize in a form acceptable to Town in the next couple weeks. The status report filed Michael Repucci on behalf of Traer Creek LLC refers to a number of financial documents which encumber the property. I have not received further information regarding the status of addressing those issues. Other conveyance documents, namely the Nottingham Dam Easement Agreement and Wet Well Easement Agreement are slowly making progress. Receipt and Closing Escrow Agreement: We have received additional revisions to Receipt and Closing Escrow Agreement from the Traer Creek LLC, which are non-substantive and primarily focused on correcting and updating the list of documents. Review of Bond Documents: I understand that drafts of bond documents may be available for review in the next couple weeks. We have asked the attorneys and parties involved in the bond document preparation to schedule weekly conference calls to coordinate sharing of information and the status of preparing a complete first draft of bond documents. Status Conference with Court: The next conference is scheduled for Monday, April 8, 2013 at 1:00 p.m. Requested Action: No Council action is requested at this time. Thank you, Eric M EMORANDUM & PLANNING, LLC Heil Law & Planning, LLC Office: 303.975.6120 2696 South Colorado Blvd., Suite 550 Fax: 720.836.3337 Denver, CO 80222 E-Mail: eric@heillaw.com e-mail: ericheillaw@yahoo.com H EIL L AW TO: Honorable Mayor Carroll and Town Council Members FROM: Meredith Van Horn, Assistant Town Attorney RE: Revisions to Add-On Retail Sales Fee Collection Services Agreement DATE: April 4, 2013 Summary: Version 5 of the Add-On Retail Sales Fee Collection Services Agreement was provided to Council with a cover memorandum on March 29, 2013. Special District Management Services initially stated that Version 5 was acceptable, but then required additional changes regarding the timing for remittance of funds and the cap on the total cost of “Collection Expenses.” This memorandum explains the changes from Version 6 to Version 5 of the Add-On Retail Sales Fee Collection Services Agreement. The specific language changes in Version 6 are re-printed in this memorandum and the full copy of Version 6 is not provided. The revised Resolution No. 13-13 is included with this memorandum (the only revision being to insert the assigned number of the Resolution). Timing of Disbursement of Add-On RSF Revenues: Sections 1.1(a) and 1.4 are revised to delete the requirement that Special District Management Services (“SDMS”) deposit Add-On RSF Revenues no later than seven business days after receipt and replaced with the requirement that funds be deposited: “Not later than the first business day of the month following the month of receipt of any Add-On RSF Revenues from Add-On RSF Obligors.” As written in Version 5, SDMS could be required to make multiple deposits due to the fact that all retailers may not remit the RSF amounts on the same day. Requiring multiple deposits would increase the time and costs of SDMS’ services which in would then be deducted from the gross Add-On RSF revenues collected. Generally, collection and remittance on a monthly basis is consistent with Town’s sales tax collection process. Comparisons (Redlines) of Sections 1.1(a) and 1.4 are provided as follows: 1.1. Appointment of SDMS as Agent of the PICs and the Town. (a) Appointment and Acceptance. The PICs hereby appoint SDMS as their and the Town’s agent, the Town hereby consents to such appointment, and SDMS hereby accepts such appointment, for purposes of (i) receiving, collecting, accounting for and administering all Add-On RSF Revenues paid by Add-On RSF Obligors, and (ii) remitting and disbursing all Add-On RSF Revenues to the Commercial PIC, the Mixed- Use PIC and the Town (and/or to the Asphalt Overlay Account on behalf of the Town, or as otherwise required pursuant to this Agreement), during the term of and subject to the terms and conditions of this Agreement. By the execution of this Agreement, SDMS accepts the responsibility of receiving the Add-On RSF Revenues from Add-On RSF Obligors and depositing such Add-On RSF Revenues in the PIC Add-On RSF Account, the Town Add-On RSF Account and/or the Asphalt Overlay Account, as applicable, within sevennot later than the first business days afterday of the month following the month of receipt thereof, subject to the terms and conditions of this Agreement. M EMORANDUM & PLANNING, LLC Avon Town Council Add-On Retail Sales Fee Services Collection Agreement April 4, 2013 Page 2 of 2 Add-On Retail Sales Fee Services Collection Agreement April 4, 2013 Page 2 of 2 1.4 Deposit of Add-On RSF Revenues by SDMS. Not later than the seventhfirst business day afterof the month following the month of receipt of any Add-On RSF Revenues from Add-On RSF Obligors, SDMS will deposit such Add-On RSF Revenues as follows: Revision to Exhibit E Regarding 1% Cap: Exhibit E is revised to delete the language stating that Collections Expenses will be capped at one percent of the Municipal Payments for the applicable period. The new language states that SDMS will not charge an hourly rate or other Collection Expenses rates higher than those it charges to collect the Credit RSF. Third-party invoices (such as those of an auditor) are excluded from this limitation on the rates. The SDMS agreement to collect the Credit RSF revenues (for the PIC for remittance to Traer Creek Metropolitan District) does not contain a one percent cap provision and SDMS indicated that it could not provide the services under the Agreement with a one percent cap in place. The revised language does limit the hourly rate and rates for Collection Expenses charged by SDMS as required by the Town. A comparison (redline) of the changes to Exhibit E is provided as follows: EXHIBIT E SDMS Fee Schedule For performance of services SDMS fees are billed monthly. The current hourly rate as of the Effective Date is $130.00 per hour. For so long as SDMS is performing collection services with respect to the Credit RSF Revenues pursuant to a separate agreement, SDMS will not charge an hourly rate or other Collection Expense rates (excluding third-party invoices paid by SDMS that are reimbursable as a Collection Expense) under this Agreement that exceeds the hourly rate charged for its services under the agreement pertaining to collection of the Credit RSF Revenues. A minimum monthly charge of two hours will be billed as a stand-by fee (“Stand-By Fee”), provided that the Stand-by Fee will be waived to the extent of actual hours billed. The hourly rate will increase annually on the anniversary date of the Effective Date in accordance with the Denver/Boulder Consumer Price Index. Notwithstanding the foregoing or any provision of this Agreement to the contrary, the Collection Expenses (excluding reimbursements) will be capped at one percent of the Municipal Payments for the applicable Reporting Period. Requested Town Council Action: Approve Resolution No. 13-13 “A RESOLUTION APPROVING THE ADD-ON RETAIL SALES FEE COLLECTION SERVICES AGREEMENT.” Thanks, Eric Res. 13-13 Approving the Add-On Retail Sales Fee Services Collection Agreement 13-04-09 TOWN OF AVON RESOLUTION NO. 13-13 Series of 2013 A RESOLUTION APPROVING THE ADD-ON RETAIL SALES FEE COLLECTION SERVICES AGREEMENT WHEREAS, on October 7, 2011 the Town of Avon and other parties entered into the Settlement Term Sheet (“Settlement Term Sheet”) in an effort to resolve pending litigation No. 2008 CV 385 and 2010 CV 316, Eagle County District Court; WHEREAS, as partial implementation of the Settlement Term Sheet, the Avon Town Council approved the Consolidated, Amended and Restated Annexation and Development Agreement (“CARADA”) by Ordinance No. 12-10 which set forth obligations in section 6.5 of the CARADA for the PICs to collect, or cause the Add-On RSF Collection Agent to collect the Add-On RSF Revenues for the purpose of remitting such revenues to Asphalt Overlay Account and to the Town as Municipal Payments (as the terms “PIC,” “Add-On RSF Collection Agent,” “Add-On RSF Revenues,” “Asphalt Overlay Account,” and “Municipal Payments” are defined in the CARADA); and, WHEREAS, the Avon Town Council approved the Receipt and Escrow Agreement Pertaining to The Village (at Avon) Settlement Implementation by Ordinance No. 12-10 which set forth various terms concerning the execution and deposit of documents and agreements into escrow and the effectiveness or voiding of such documents and agreements. NOW, THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, that the Add-On Retail Sales Fee Services Collection Agreement, attached hereto as Exhibit A, is hereby approved by the Town of Avon subject to the terms and conditions of the Receipt and Escrow Agreement Pertaining to The Village (at Avon) Settlement Implementation. ADOPTED APRIL 9, 2013 TOWN COUNCIL ATTEST: By:_________________________________ By:________________________________ Rich Carroll, Mayor Patty McKenny, Town Clerk 1013284.6 ADD-ON RETAIL SALES FEE COLLECTION SERVICES AGREEMENT THIS ADD-ON RETAIL SALES FEE COLLECTION SERVICES AGREEMENT (this “Agreement”) dated as of the ____ day of ____________, 20___ (“Effective Date”), is entered into by and among SPECIAL DISTRICT MANAGEMENT SERVICES, INC., a Colorado corporation (“SDMS”); THE VILLAGE (AT AVON) COMMERCIAL PUBLIC IMPROVEMENT COMPANY, a Colorado nonprofit corporation (“Commercial PIC”); THE VILLAGE (AT AVON) MIXED-USE PUBLIC IMPROVEMENT COMPANY, a Colorado nonprofit corporation (“Mixed-Use PIC”); and the TOWN OF AVON, a home rule municipal corporation of the State of Colorado (“Town”). RECITALS This Agreement is made with reference to the following facts: A. Capitalized terms used in this Agreement have the meanings set forth in Exhibit A. Each of the Exhibits to this Agreement are incorporated into and made a part of this Agreement. B. Pursuant to the Commercial Declaration (i) Commercial Declarant has imposed a Retail Sales Fee on certain sales, provision of goods or services, construction activities and certain other transactions occurring within the Commercial Property; and (ii) the Retail Sales Fee consists of two components, the Credit Retail Sales Fee (as defined in the Commercial Declaration) and the Add-On Retail Sales Fee. C. Pursuant to the Mixed-Use Declaration (i) Mixed-Use Declarant has imposed a Retail Sales Fee on certain sales, provision of goods or services, construction activities and certain other transactions occurring within the Mixed-Use Property; and (ii) the Retail Sales Fee consists of two components, the Credit Retail Sales Fee (as defined in the Mixed-Use Declaration) and the Add-On Retail Sales Fee. D. The Commercial PIC, the Mixed-Use PIC, the Town and certain other Persons previously have entered into the Annexation and Development Agreement. E. Pursuant to the Annexation and Development Agreement and the Commercial Declaration, the Town’s and the Commercial PIC’s receipt of and use of the Add-On RSF Revenues derived from the Commercial Property are subject to the terms and conditions of the Annexation and Development Agreement and the Commercial Declaration. F. Pursuant to the Annexation and Development Agreement and the Mixed-Use Declaration, the Town’s and the Mixed-Use PIC’s receipt of and use of the Add-On RSF Revenues derived from the Mixed-Use Property are subject to the terms and conditions of the Annexation and Development Agreement and the Mixed-Use Declaration. G. The PICs wish to appoint SDMS, and SDMS wishes to accept such appointment, as their agent to collect, receive, disburse and account for all Add-On RSF Revenues, if any, in accordance with the terms and conditions of, as applicable, the Commercial Declaration, the EXHIBIT A to RESOLUTION 13-13 2 1013284.6 Mixed-Use Declaration and the Annexation and Development Agreement, as set forth in this Agreement, and the Town wishes to consent to such appointment. AGREEMENT NOW, THEREFORE, for and in consideration of the mutual agreements, promises and covenants herein contained, the Parties mutually undertake, promise, and agree for themselves, their respective representatives, successors and assigns, as follows: SECTION 1 Add-On RSF Collection Agent Functions 1.1. Appointment of SDMS as Agent of the PICs and the Town. (a) Appointment and Acceptance. The PICs hereby appoint SDMS as their and the Town’s agent, the Town hereby consents to such appointment, and SDMS hereby accepts such appointment, for purposes of (i) receiving, collecting, accounting for and administering all Add-On RSF Revenues paid by Add-On RSF Obligors, and (ii) remitting and disbursing all Add-On RSF Revenues to the Commercial PIC, the Mixed-Use PIC and the Town (and/or to the Asphalt Overlay Account on behalf of the Town, or as otherwise required pursuant to this Agreement), during the term of and subject to the terms and conditions of this Agreement. By the execution of this Agreement, SDMS accepts the responsibility of receiving the Add-On RSF Revenues from Add-On RSF Obligors and depositing such Add-On RSF Revenues in the PIC Add-On RSF Account, the Town Add-On RSF Account and/or the Asphalt Overlay Account, as applicable, not later than the first business day of the month following the month of receipt thereof, subject to the terms and conditions of this Agreement. (b) Agency Relationship. SDMS is not the agent of any Person other than the PICs and the Town and will have only those responsibilities expressly set forth in this Agreement. (c) Ownership of Add-On RSF Revenues. Notwithstanding the appointment of SDMS as the PICs’ and the Town’s agent for the purposes and subject to the limitations set forth in this Agreement, (i) the Commercial PIC and the Town are the lawful beneficiaries of the Add-On RSF Revenues derived from the Commercial Property in accordance with the terms of the Commercial Declaration and the Annexation and Development Agreement; and (ii) the Mixed-Use PIC and the Town are the lawful beneficiaries of the Add-On RSF Revenues derived from the Mixed-Use Property in accordance with the terms of the Mixed-Use Declaration and the Annexation and Development Agreement. SDMS hereby acknowledges that, as more fully set forth in this Agreement, the Add-On RSF Revenues collected pursuant to this Agreement are the property of the PICs and the Town and that SDMS will distribute the Add-On RSF Revenues to the PICs and the Town (or as otherwise required pursuant to this Agreement) in accordance with the terms of this Agreement. 1.2. Notification to SDMS of Add-On RSF Obligors. The Commercial PIC and the Mixed-Use PIC will employ commercially reasonable efforts to provide SDMS with prior EXHIBIT A to RESOLUTION 13-13 3 1013284.6 written notice of each new Add-On RSF Obligor engaging or intending to engage in Add-On RSF Retail Activities of which the Commercial PIC and/or Mixed-Use PIC, as applicable, has knowledge, such notice to be delivered before the initial Fee Remittance Date applicable to such Add-On RSF Obligor. Additionally, SDMS will coordinate with the Director of Finance to obtain notification from the Town of each new Sales Tax license or business license issued to an Add-On RSF Obligor within the Property. SDMS will maintain a written list of each active Add-On RSF Obligor within the Commercial Property and the Mixed-Use Property (a “Add-On RSF Obligor List”). SDMS will include a current copy of the Add-On RSF Obligor List within each Monthly Add-On RSF Report, and will coordinate with the Director of Finance to ensure that the Add-On RSF Obligor List is updated to reflect each Add-On RSF Obligor which then holds a valid Sales Tax license or business license issued by the Town. In preparing and updating the Add-On RSF Obligor List, SDMS will be entitled to rely exclusively on the information provided by the PICs and the Director of Finance with no independent obligation of SDMS to investigate or verify the information. 1.3. Remittance of Add-On RSF Revenues to SDMS. In performing its obligations under this Agreement, SDMS will be entitled to rely on all reports furnished pursuant to this Section 1.3 without any obligation to investigate or independently verify the information in such reports. For so long as the Add-On Retail Sales Fee is imposed pursuant to the terms and conditions of the Commercial Declaration, each Add-On RSF Obligor is obligated to: (i) calculate the Add-On Retail Sales Fee amount due and payable on Add-On RSF Retail Activities conducted by such Add-On RSF Obligor during the relevant Reporting Period; (ii) complete and submit to SDMS an Add-On RSF Reporting Form covering all transactions occurring during the applicable Reporting Period and setting forth the amount of Add-On RSF Revenues due for such Reporting Period; and (iii) remit such Add-On RSF Revenues to SDMS, together with the corresponding Add-On RSF Reporting Form, on or before the Fee Remittance Date applicable to such Reporting Period. For so long as the Add-On Retail Sales Fee is imposed pursuant to the terms and conditions of the Mixed-Use Declaration, each Add-On RSF Obligor is obligated to: (i) calculate the Add-On Retail Sales Fee amount due and payable on Add-On RSF Retail Activities conducted by such Add-On RSF Obligor during the relevant Reporting Period; (ii) complete and submit to SDMS an Add-On RSF Reporting Form covering all transactions occurring during the applicable Reporting Period and setting forth the amount of Add-On RSF Revenues due for such Reporting Period; and (iii) remit such Add-On RSF Revenues to SDMS, together with the corresponding Add-On RSF Reporting Form, on or before the Fee Remittance Date applicable to such Reporting Period. 1.4. Deposit of Add-On RSF Revenues by SDMS. Not later than the first business day of the month following the month of receipt of any Add-On RSF Revenues from Add-On RSF Obligors, SDMS will deposit such Add-On RSF Revenues as follows: (a) Establishment of Accounts. 1. Asphalt Overlay Account. Initially, the Asphalt Overlay Account will be established with FirstBank, Avon branch, subject to the following: The Asphalt Overlay Account will be established by EMD Limited Liability Company, Traer Creek LLC, Traer Creek Metropolitan District and the Town in accordance with the terms and conditions of the Annexation and Development Agreement and the Asphalt Overlay EXHIBIT A to RESOLUTION 13-13 4 1013284.6 Agreement. The only signatories to the Asphalt Overlay Account will be those parties expressly specified as signatories as set forth in the Asphalt Overlay Agreement, and SDMS will not be a signatory on the Asphalt Overlay Agreement or have authority to transfer funds from or draw checks on the Asphalt Overlay Account. The Asphalt Overlay Account may be moved from FirstBank, Avon Branch, to another bank or another branch location of FirstBank in accordance with the terms and conditions of the Asphalt Overlay Agreement and only upon providing SDMS with 30 days’ prior written notice thereof, together with written instructions for SDMS’ deposit of funds therein. 2. Town Add-On RSF Account. Initially, the Town Add-On RSF Account is or will be established with FirstBank, Avon branch, subject to the following: The Town Add-On RSF Account will be established by the Town upon such terms as it deems appropriate using the Town’s Federal Employer Identification Number. The Town’s authorized representative(s), or such designees as the Town in its discretion may authorize, will be the only signatories, and SDMS will not be a signatory on Town Add-On RSF Account or have authority to transfer funds from or draw checks on Town Add-On RSF Account. The Town may move Town Add-On RSF Account from FirstBank to another bank or another branch location of FirstBank only upon providing SDMS with 30 days’ prior written notice thereof, together with written instructions for SDMS’ deposit of funds therein. The Town may designate its existing general fund account, also known as the cash concentration account, as the account which shall serve as the Town Add-On RSF Account. 3. PIC Add-On RSF Account. Initially, the PIC Add-On RSF Account is or will be established with Wells Fargo, Lakewood branch, subject to the following: The PIC Add-On RSF Account will be established by the PICs upon such terms as the PICs deem appropriate using the PICs’ Federal Employer Identification Numbers. Each of the PIC’s authorized representative(s), or such designees as each of the PICs in its discretion may authorize, will be the only signatories, and SDMS will not be a signatory on the PIC Add-On RSF Account or have authority to transfer funds from or draw checks on the PIC Add-On RSF Account. The PICs may move the PIC Add-On RSF Account from Wells Fargo to another bank or another branch location of Wells Fargo only upon providing SDMS with 30 days’ prior written notice thereof, together with written instructions for SDMS’ deposit of funds therein. (b) Deposit. SDMS initially will deposit the Add-On RSF Revenues in a separate account from any other funds, including without limitation, the Credit Retail Sales Fee Revenues. Thereafter, SDMS will transfer the Add-On RSF Revenues from such segregated account and deposit the Add-On RSF Revenues as follows, and, upon depositing such funds, SDMS will have no further obligation with respect to such Add-On RSF Revenues (except with respect to the preparation, distribution and retention of relevant records, reports and audits as required by other provisions of this Agreement): 1. Asphalt Overlay Account. SDMS will deposit all or a portion of the Municipal Payments into the Asphalt Overlay Account on a monthly basis on behalf of the Town as follows: EXHIBIT A to RESOLUTION 13-13 5 1013284.6 (A) Initial Five Years. For calendar years 2013 through 2017, SDMS will deposit, in the aggregate for each calendar year, into the Asphalt Overlay Account the first $120,000.00 (ONE HUNDRED TWENTY THOUSAND DOLLARS) of Municipal Payments actually received by SDMS. (B) Subsequent Years. Commencing in 2018 and continuing through and including the date on which the Funding Termination occurs, SDMS will deposit, in the aggregate for each calendar year, into the Asphalt Overlay Account the first $75,000.00 (SEVENTY FIVE THOUSAND DOLLARS) of Municipal Payments actually received by SDMS. The PICs and the Town will deliver joint written notice to SDMS (“Joint Notice”), which Joint Notice will specify the date of the Funding Termination. SDMS will be entitled to rely on the accuracy of the date of the Funding Termination contained in the Joint Notice without obligation to investigate or independently verify such date. No deposits of Add-On RSF Revenues will be made in the Asphalt Overlay Account from and after the day after the date of the occurrence of the Funding Termination. 2. Town Add-On RSF Account. After deposit of the applicable portion of the Municipal Payments in the Asphalt Overlay Account, if any, in accordance with Subsection 1 above, SDMS will deposit the remaining portion of the Municipal Payments, if any, actually received by SDMS into the Town Add-On RSF Account on a monthly basis continuing through and including the date on which the Tax Credit Termination occurs. The PICs and the Town will deliver a Joint Notice of the occurrence of the Tax Credit Termination, which Joint Notice will specify the date of the Tax Credit Termination. SDMS will be entitled to rely on the accuracy of the date of the Tax Credit Termination contained in the Joint Notice without obligation to investigate or independently verify such date. No deposits of Add-On RSF Revenues, including without limitation, the Municipal Payments, will be made in the Town Add-On RSF Account from and after the day after the occurrence of the Tax Credit Termination, and the PICs (or their designees) will thereafter be entitled to receive all Add-On RSF Revenues. 3. PIC Add-On RSF Account. SDMS will deposit any portion of the Add-On RSF Revenues not comprising the Municipal Payments and actually received by SDMS into the PIC Add-On RSF Account on a monthly basis. 1.5. Fidelity Bond. Upon receiving a written request therefor from the Commercial PIC and/or the Mixed-Use PIC, SDMS will obtain and thereafter maintain in full force for so long and in such amount as set forth in such written request, a fidelity bond in a form and from an issuer approved by the PICs. The cost of the fidelity bond will be a reimbursable expense of SDMS to be paid by the PICs. SECTION 2 Preparation and Disbursement of Reports; Audits 2.1. Preparation and Delivery of Monthly Add-On RSF Reports by SDMS. For each calendar month or portion thereof within the term of this Agreement, SDMS will prepare a EXHIBIT A to RESOLUTION 13-13 6 1013284.6 Monthly Add-On RSF Report containing all information required therein with respect to all Add- On RSF Revenues received within such month. SDMS will retain the original of each Monthly Add-On RSF Report for a minimum of three years after the last day of the relevant calendar year. On or before the 15th calendar day following the last day of the preceding calendar month, SDMS will deliver a copy of each Monthly Add-On RSF Report to the PICs and the Town. 2.2. Reliance on Add-On RSF Obligors’ Reports. In preparing the Monthly Add- On RSF Reports, SDMS will be entitled to rely on the accuracy of the information contained in the Add-On RSF Reporting Forms received from Add-On RSF Obligors from time to time without obligation to investigate or independently verify the information contained therein. 2.3. Provision of Add-On RSF Information. Within 10 days after receipt of written notice from the Commercial PIC and/or the Mixed-Use PIC, and on or before January 1 of each calendar year, SDMS will provide each Add-On RSF Obligor listed on the Add-On RSF Obligor List with (i) all then-current Information or policies and procedures adopted by the Commercial PIC or Mixed-Use PIC, as applicable, regarding the calculation, payment and reporting of Add- On RSF Revenues, and (ii) all then-current Add-On RSF Reporting Form(s), procedures and other instructions concerning the collection and remittance of Add-On RSF Revenues to SDMS, including all information required under the Commercial Declaration or the Mixed-Use Declaration, as applicable. In performing the foregoing obligation, SDMS will be entitled to rely on information supplied to it by the PICs and the Director of Finance, and will coordinate with the PICs and the Director of Finance to update all Information and relevant forms prior to distributing them to Add-On RSF Obligors. If the PICs change such reporting forms, procedures or other instructions, the PICs promptly will communicate such changes to SDMS and the Town, and SDMS will provide notice thereof to all RSF Add-On Obligors then listed on the Add-On RSF Obligor List. It is the intent of the Parties hereto that all forms, reports and instructions will be substantially similar in form to those used or required by the Town for remittance of Sales Taxes. SDMS will function as the primary contact for Add-On RSF Obligors with respect to Information and other forms, procedures and instructions pertinent to collection and remittance of Add-On RSF Revenues, and will coordinate with the PICs and the Town with respect thereto. 2.4. Delinquency Notices for Retail Fee Obligors. (a) First Delinquency Notices. Not later than the 15th day following the applicable Fee Remittance Date, SDMS will send a first delinquency notice by certified mail to any Add-On RSF Obligor that: (i) fails to remit Add-On RSF Revenues during the immediately preceding or any other prior Reporting Period; or (ii) SDMS has reasonably determined based solely on information contained in the Add-On RSF Obligor’s Add-On RSF Reporting Forms, without obligation to investigate or independently verify the accuracy of such information, to have remitted an incorrect amount for any prior Reporting Period. In making any such delinquency determination, SDMS will coordinate with the Director of Finance as reasonably necessary. Such delinquency notice will state that Delinquency Costs (as defined in the Commercial Declaration or Mixed-Use Declaration, as applicable) apply. SDMS will send copies of all first delinquency notices to the PICs and the Town, together with a report listing the name of each Add-On RSF Obligor to whom a first delinquency notice was sent, the EXHIBIT A to RESOLUTION 13-13 7 1013284.6 amount of such delinquency, and the period for which such Add-On RSF Obligors are delinquent. (b) Second Delinquency Notices. Not later than the 15th day following SDMS’ issuance of the first delinquency notice as required by Section 2.4(a), SDMS will send a second delinquency notice by certified mail to any Add-On RSF Obligor that has not paid any delinquent amount of Add-On RSF Revenues as specified in the first delinquency notice. SDMS will send copies of such second delinquency notices to the PICs and the Town, together with a report listing the name of each Add-On RSF Obligor to whom a second delinquency notice was sent, the amount of such delinquency, and the period for which such Add-On RSF Obligors are delinquent. SDMS will not be obligated to distribute additional delinquency notices to any Add-On RSF Obligor after the second delinquency notice. (c) Other Actions. In addition to the first and second delinquency notices provided for in Sections 2.4(a) and 2.4(b), SDMS will, upon receipt of a written request therefor by the Commercial PIC, Mixed-Use PIC or the Town, send a written notice to any Add-On RSF Obligor whom the Commercial PIC, Mixed-Use PIC or the Town believes has not fully complied with its obligations under the Commercial Declaration or Mixed-Use Declaration, as applicable, specifying the nature and extent of such Add-On RSF Obligor’s non-compliance and requesting that such Add-On RSF Obligor immediately remedy such non-compliance. The requesting Person will provide SDMS with information sufficient to enable SDMS to prepare and send such notice, and SDMS will provide a copy of all such notices to the PICs and the Town. In sending the notice required by this Section 2.4(c), SDMS may rely upon the information furnished by the Person requesting the notice without any obligation to investigate or independently verify such information. Other than the obligation to send the notices provided for in Sections 2.4(a) and 2.4(b) and this Section 2.4(c), SDMS will have no obligation to undertake any enforcement action of any nature. 2.5. Confidentiality of Add-On RSF Reporting Forms. Except to the extent required to be included in any report or to be made available for review and audit as required or permitted under the terms of this Agreement, SDMS will maintain in confidence all reports, information or data concerning Taxable Transactions or Add-On RSF Revenues received by SDMS from Add-On RSF Obligors unless otherwise required to be made public by law. All such information will be used only for purposes of collecting the Add-On RSF Revenues, enforcing Add-On RSF Obligors’ obligations under the Commercial Declaration and Mixed-Use Declaration, as applicable, monitoring compliance with the provisions of the Commercial Declaration and Mixed-Use Declaration, complying with SDMS’ reporting obligations under this Agreement to the PICs and the Town, or as otherwise may be authorized under the Commercial Declaration or Mixed-Use Declaration. 2.6. Audits. Within 30 calendar days after the end of each calendar year, SDMS will prepare and deliver to an auditor approved in writing by the PICs all materials necessary for preparation of an audit of SDMS’ accounting of all Add-On RSF Revenues received and disbursed in the immediately preceding calendar year, which audit procedures are generally described in Exhibit D. SDMS will exercise commercially reasonable efforts to cause the EXHIBIT A to RESOLUTION 13-13 8 1013284.6 auditor to provide to SDMS an annual audited report setting forth the Add-On RSF Revenues received and disbursed by SDMS for the preceding calendar year for delivery to the PICs and the Town within 90 calendar days after the end of the preceding calendar year. In compiling the information to be provided for the audit, SDMS may rely on information provided as required or permitted under this Agreement without any further obligation to investigate or independently verify the accuracy of such information. SDMS’ reasonable costs and expenses incurred in performing and delivering the annual audit, which reimbursement amount is a Collection Expense, will be paid from Add-On RSF Revenues (the Municipal Payments are net of Collection Expenses as provided in paragraph 33 of Exhibit A). At reasonable times during regular business hours, the PICs and the Town are hereby authorized to audit, or cause audits to be conducted of, SDMS’ books and records with respect to the collection and disbursement of Add-On RSF Revenues. If an independent audit uncovers any deficiency in SDMS’ performance of its obligations under this Agreement, SDMS will promptly cure such deficiency and, to the extent such deficiency consists of SDMS’ failure to disburse Add-On RSF Revenues to the Commercial PIC, the Mixed-Use PIC and/or the Town, as applicable, due to the negligence or misconduct of SDMS, SDMS will, within 10 days after notice from the Commercial PIC, the Mixed-Use PIC and/or the Town, as applicable, deposit the full amount of such deficiency into the Asphalt Overlay Account, Town Add-On RSF Account and/or PIC Add- On RSF Account, as applicable, together with interest thereon at a rate equal to 2% above the prime rate published in the Wall Street Journal on the date of discovery of such deficiency and notice thereof to SDMS. The Party(ies) performing any such audit will bear the full costs and expense of performing such audit. SDMS’ reasonable costs and expenses incurred in connection therewith, which amount is a Collection Expense, will be paid from Add-On RSF Revenues (the Municipal Payments are net of Collection Expenses as provided in paragraph 33 of Exhibit A); provided, however, that SDMS will be responsible for all costs and expenses of any audit which discloses a material deficiency in SDMS’ performance of its obligations under this Agreement to the extent such deficiency is due to the negligence or misconduct of SDMS. SECTION 3 General 3.1. Covenants of the Parties. (a) Representations and Warranties. Each Party hereby represents and warrants to and for the benefit of the other Parties: 1. That it has full power and legal authority to enter into this Agreement; 2. That it has taken or performed all acts or actions that may be required by statute or charter to confirm its authority to execute, deliver and perform each of its obligations under this Agreement; and 3. That neither the execution and delivery of this Agreement, nor compliance with any of the terms, covenants or conditions of this Agreement will result in a violation of or default under any other agreement or contract to which it is a party or by which it is bound. EXHIBIT A to RESOLUTION 13-13 9 1013284.6 (b) Information. Each Party will provide such information reasonably requested by the other Parties from time to time to allow such Parties to fulfill their respective obligations under this Agreement, the Commercial Declaration and the Mixed- Use Declaration, as applicable. (c) Cooperation. The Parties will cooperate with each other and will undertake any reasonably necessary action that is required to support or assist in the collection, remittance and reporting of all Add-On RSF Revenues payable by Add-On RSF Obligors pursuant to the Commercial Declaration and the Mixed-Use Declaration. 3.2. Nature of Add-On RSF. The Parties acknowledge and understand that: (i) the Add-On Retail Sales Fee is a charge imposed pursuant to the Commercial Declaration and the Mixed-Use Declaration for the benefit of the Commercial PIC and the Mixed-Use PIC, respectively, and other beneficiaries specified therein and not through the exercise of any power by the Town; (ii) the Add-On RSF Revenues are not tax revenues in any form; (iii) all Add-On RSF Revenues are the property of the PICs and the Town to be used for the purposes set forth in the Annexation and Development Agreement, the Commercial Declaration and the Mixed-Use Declaration; and (iv) SDMS’ role in assisting the PICs to collect the Add-On RSF Revenues is derived through this Agreement and is limited by and will be exercised only in accordance with the terms of this Agreement. 3.3. Bankruptcy of Add-On RSF Obligors. If any Party receives actual notice in writing with respect to any action in the bankruptcy of any Add-On RSF Obligor, such Party will, as soon as practicable, give notice or convey copies of such notice which it received to the other Parties. 3.4. Limitation of SDMS Duties. The duties and responsibilities of SDMS are limited to those expressly and specifically stated in this Agreement. SDMS will not be liable or responsible for any loss resulting from any investment or reinvestment made pursuant to this Agreement and made in compliance with the provisions hereof. SDMS will not be personally liable or responsible for any act which it may do or omit to do hereunder, while acting with commercially reasonable care, except for duties expressly imposed upon SDMS hereunder or as otherwise expressly provided herein. SDMS will neither be under any obligation to inquire into or be in any way responsible for the performance or nonperformance by the Commercial PIC, the Mixed-Use PIC or the Town of any of their respective obligations under this Agreement, the Annexation and Development Agreement, the Commercial Declaration or the Mixed-use Declaration, nor will SDMS be responsible in any manner for the recitals, statements or provisions contained in this Agreement, the Annexation and Development Agreement, the Commercial Declaration or the Mixed-Use Declaration, or in any proceedings taken in connection therewith, such recitals, statements and provisions being made solely by the Commercial PIC, the Mixed-Use PIC and the Town, as applicable. Nothing in this Agreement creates any obligation or liability on the part of SDMS to anyone other than the PICs and the Town. 3.5. Compensation. In consideration of SDMS’ performance of services under this Agreement, SDMS will receive the Collection Expenses as determined by the Parties and described in Exhibit E and elsewhere in this Agreement. The rates described in Exhibit E will be EXHIBIT A to RESOLUTION 13-13 10 1013284.6 subject to annual adjustment by the written mutual consent of the PICs and the Town, which adjustment will not require an amendment to this Agreement. No new fee schedule will become effective until 30 days after SDMS has given the PICs and the Town written notice thereof. Except with respect to specific matters expressly addressed in other provisions of this Agreement to the contrary, all Collection Expenses will be paid from Add-On RSF Revenues (the Municipal Payments are net of Collection Expenses as provided in paragraph 33 of Exhibit A). No later than the 20th day of each calendar month, SDMS will submit to the PICs and the Town a billing statement of the total Collection Expenses incurred by SDMS during the prior calendar month (each, a “Monthly Fee Statement”). The PICs and the Town will have 20 days from receipt of the applicable Monthly Fee Statement to approve, reject or approve in part and reject in part the Monthly Fee Statement in writing to SDMS. If the PICs and the Town both fail to provide such written notice to SDMS on or before the expiration of such 20-day period, the Monthly Fee Statement will be deemed approved by both the PICs and the Town. If the PICs and the Town approve the applicable Monthly Fee Statement, SDMS may deduct, and is hereby expressly authorized to deduct, from the Municipal Payments the applicable Collection Expense as set forth in such approved Monthly Fee Statement. If the Commercial PIC, Mixed-Use PIC and/or the Town approve in whole or in part the applicable Monthly Fee Statement, SDMS may deduct, and is hereby expressly authorized to deduct, from the Municipal Payments the portion of the Collection Expenses set forth in such Monthly Fee Statement approved by the PICs and the Town, if any. With respect to resolution of any Collection Expenses rejected in whole or in part by the Commercial PIC, Mixed-Use PIC and/or the Town, the applicable Parties will proceed pursuant to Section 3.20. Without limitation of the foregoing: (a) Prior to and including the day of the Tax Credit Termination, the Town will be solely responsible for payment of SDMS’ Collection Expenses for administration of the Add-On RSF Revenues pursuant to this Agreement. (b) From and after the day after the occurrence of the Tax Credit Termination, the PIC will be solely responsible for payment of SDMS’ Collection Expenses for administration of the Add-On RSF Revenues pursuant to this Agreement. (c) The PICs will be solely responsible for payment of SDMS’ reasonable costs and expenses, including attorneys’ fees, incurred prior to execution of this Agreement for negotiation of this Agreement and for activities in furtherance of entering into this Agreement, such payment to be made within 30 days after receipt of SDMS’ invoice therefor. 3.6. Resignation; Removal. (a) General. Notwithstanding any provision to the contrary in this Agreement, SDMS’ obligation to remit to the PICs and the Town any and all Add-On RSF Revenues received by SDMS pursuant to the terms and conditions of this Agreement will survive any resignation or removal of SDMS pursuant to this Section 3.6 until all such Add-On RSF Revenues have been remitted to the PICs and/or the Town or control over such funds has been transferred to a successor Add-On RSF Collection Agent. No resignation or removal of SDMS will take effect until a successor Add-On RSF Collection Agent has been appointed by the PICs, with the consent of the Town; EXHIBIT A to RESOLUTION 13-13 11 1013284.6 provided, however, if no successor is appointed by the end of 90 days after delivery of written notice to SDMS of such removal, SDMS may petition a court of competent jurisdiction to appoint a successor. (b) SDMS Resignation. SDMS may resign as the PICs’ and the Town’s agent under this Agreement by submitting a written notice of resignation to the PICs and the Town, given not less than 90 days before the date upon which such resignation is intended to take effect. SDMS’ resignation will be effective on the resignation date set forth in such notice. Notwithstanding the foregoing, except in the event the Commercial PIC, Mixed-Use PIC and/or the Town have rejected Monthly Fee Statements in whole or in part pursuant to Section 3.5, if SDMS’ Collection Expenses have not been paid for a period of two consecutive months, SDMS may resign as the PICs’ and the Town’s agent under this agreement by submitting a written notice of resignation to the PICs and the Town, given not less than 30 days before the date upon which such resignation is intended to take effect and SDMS’ resignation will be effective on the resignation date set forth in such notice; provided, however, if the Commercial PIC, Mixed-Use PIC and/or the Town cure such default within such 30-day period, SDMS’ written notice of resignation will be deemed null and void and of no further force or effect. (c) SDMS Removal. The PICs, with prior written consent of the Town, may remove SDMS as the PICs’ and the Town’s agent for collection of the Add-On RSF Revenues at any time with or without cause. Any such removal action will be effective immediately upon delivery of written notice by the PICs of such removal to SDMS unless the notice specifies a later removal date. 3.7. Assignment; Binding Effect. Except for the collateral assignment of this Agreement by the Commercial PIC and/or the Mixed-Use PIC to any secured lender of the Commercial PIC or the Mixed-Use PIC, as applicable, which assignment will not require the consent of any other Party, this Agreement will not be assigned by any Party for any reason other than to a successor by operation of law or with the prior written consent of the other Parties. This Agreement will inure to the benefit of and will be binding upon the Parties and their duly authorized successors and assigns. Whenever in this Agreement the Commercial PIC, the Mixed-Use PIC, the Town or SDMS is named or is referred to, such provision is deemed to include any successor of the Commercial PIC, the Mixed-Use PIC, the Town or SDMS, respectively, immediate or intermediate, whether so expressed or not. Any corporation or other legal entity into which a Party may be merged or converted or with which a Party may be consolidated or any corporation or other legal entity resulting from any merger, conversion, sale, consolidation or transfer to which that Party may be a party or any corporation or other legal entity to which a Party may sell or transfer all or substantially all of its assets will be the successor to such Party without the execution or filing of any document or any further act, anything herein to the contrary notwithstanding. All of the stipulations, obligations, and agreements by or on behalf of and other provisions for the benefit of the Commercial PIC, the Mixed-Use PIC, the Town or SDMS contained in this Agreement (a) will bind and inure to the benefit of any such successor, and (b) will bind and inure to the benefit of any officer, board, council, agent, or instrumentality to whom or to which there will be transferred by or in accordance with law any relevant right, power, or duty of the Commercial PIC, the Mixed-Use PIC, the Town or SDMS, or of their respective successors. EXHIBIT A to RESOLUTION 13-13 12 1013284.6 3.8. Amendment. This Agreement may only be amended, changed, modified or altered by an instrument in writing duly executed by each Party. 3.9. Computation of Time. In computing a period of days, the first day will be excluded and the last day will be included. If the last day of any period is not a business day, the period will be extended to include the next succeeding business day. If a number of months is to be computed by counting the months from a particular day, the period will end on the same numerical day in the concluding month as the day of the month from which the computation is begun, unless there are not that many days in the concluding month, in which case the period will end on the last day of that month. 3.10. Payments Due on a Day other than a Business Day. If the date for making any payment or the last day for performance of any act or the exercising of any right as provided in this Agreement will be a day other than a business day, such payment may be made, or such act performed, or such right may be exercised on the next succeeding business day with the same force and effect as if done on the nominal date provided in this Agreement. 3.11. Severability. If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, such holding will not invalidate or render unenforceable any other provision hereof and this Agreement will be reformed to most completely effectuate the intent of the Parties as reflected in the Agreement prior to such severance, including the intent of the severed provision to the extent such provision may be so reformed to cure the invalidity or unenforceability. 3.12. Execution in Counterparts. This Agreement may be executed in several counterparts, each of which will be an original and all of which will constitute but one and the same instrument. 3.13. Applicable Law. This Agreement will be governed by and construed in accordance with the laws of the State of Colorado. 3.14. No Indemnification by SDMS. SDMS will have no obligation to indemnify, hold harmless or defend the PICs, the Town or any other Person for any purpose whatsoever. 3.15. Indemnification by PICs and the Town. The PICs, by execution of this Agreement by its authorized representative, each hereby agrees to indemnify, defend and hold SDMS, its officers, directors, stockholders, and employees harmless from any and all claims, liabilities, losses, actions, suits or proceedings at law or in equity, or any other expenses, fees, or charges of any character or nature, which it may incur or with which it may be threatened under this Agreement arising from or out of any claim in connection with the performance of any of the obligations of SDMS to be performed under this Agreement (for purposes of this Section 3.15, collectively, “Liabilities”) except to the extent such Liabilities are caused by the negligence, willful misconduct or material breach of this Agreement by SDMS, its officers or employees. To the extent permitted by applicable law, the Town, by execution of this Agreement by its authorized representative, each hereby agrees to indemnify, defend and hold SDMS, its officers, directors, stockholders, and employees harmless from any and all Liabilities except to the extent EXHIBIT A to RESOLUTION 13-13 13 1013284.6 such Liabilities are caused by the negligence, willful misconduct or material breach of this Agreement by SDMS, its officers or employees. 3.16. Relationship to Declarations and Annexation and Development Agreement. The Commercial PIC acknowledges that its performance under this Agreement is subject in all respects to the terms and conditions of the Commercial Declaration and the Annexation and Development Agreement, that the terms and conditions of the Commercial Declaration and the Annexation and Development Agreement will control over any conflicting terms and conditions of this Agreement, and represents and warrants to SDMS that in performing its duties and exercising its rights under this Agreement it will comply with the terms and conditions of the Commercial Declaration and the Annexation and Development Agreement. The Mixed-Use PIC acknowledges that its performance under this Agreement is subject in all respects to the terms and conditions of the Mixed-Use Declaration and the Annexation and Development Agreement, that the terms and conditions of the Mixed-Use Declaration and the Annexation and Development Agreement will control over any conflicting terms and conditions of this Agreement, and represents and warrants to SDMS that in performing its duties and exercising its rights under this Agreement it will comply with the terms and conditions of the Mixed-Use Declaration and the Annexation and Development Agreement. The Town acknowledges that its performance under this Agreement is subject in all respects to the terms and conditions of the Declarations and the Annexation and Development Agreement, that the terms and conditions of the Declarations and the Annexation and Development Agreement will control over any conflicting terms and conditions of this Agreement, and represents and warrants to SDMS that in performing its duties and exercising its rights under this Agreement it will comply with the terms and conditions of the Declarations and the Annexation and Development Agreement. As such, SDMS is authorized to presume that all actions taken by the PICs and the Town in connection with this Agreement comply with the terms and conditions of the Declarations and the Annexation and Development Agreement and to act accordingly in performing its obligations under this Agreement. 3.17. Captions. The captions or headings herein are for convenience only and in no way define, limit or describe the scope or intent of any provision or Section of this Agreement. 3.18. Time of the Essence. Time is of the essence in the performance of the obligations from time to time imposed upon SDMS by this Agreement. 3.19. Notice. Any notice or other information to be given hereunder will be delivered personally or mailed postage prepaid, return receipt requested, to the following addresses: If to SDMS: Special District Management Services, Inc. 141 Union Boulevard Suite 150 Lakewood, Colorado 80228 Attn: Lisa Jacoby EXHIBIT A to RESOLUTION 13-13 14 1013284.6 With a required copy to: Krendl Krendl Sachnoff & Way, P.C. 370 17th Street, Suite 5350 Denver, Colorado 80202 Attn: Cathy S. Krendl If to Commercial PIC: The Village (at Avon) Commercial Public Improvement Company P.O. Box 9429 Avon, Colorado 81620 Attn: Dan Leary With required copy to: Otten Johnson Robinson Neff + Ragonetti PC 950 17th Street, Suite 1600 Denver, Colorado 80202 Attn: Munsey L. Ayers If to Mixed-Use PIC: The Village (at Avon) Mixed-Use Public Improvement Company P.O. Box 9429 Avon, Colorado 81620 Attn: Dan Leary With required copy to: Otten Johnson Robinson Neff + Ragonetti PC 950 17th Street, Suite 1600 Denver, Colorado 80202 Attn: Munsey L. Ayers If to Town: Town of Avon P.O. Box 975 One Lake Street Avon, Colorado 81620 Attention: Town Manager With required copy to: Town of Avon P.O. Box 975 One Lake Street Avon, Colorado 81620 Attention: Town Attorney or such other address as a Party may, by written notice to the other Party or Parties, hereafter specify. Any notice will be deemed to be given upon mailing. The Parties may also specify, in writing, a different method for conveying notices or information. 3.20. Dispute Resolution. Any dispute arising under this Agreement that is not resolved by the applicable Parties, within 45 days or such other period as may be specifically set forth in this Agreement may be submitted by any of the Parties, including SDMS, for binding EXHIBIT A to RESOLUTION 13-13 15 1013284.6 arbitration to a single arbiter of the Judicial Arbiter Group, 1601 Blake Street, Suite 400 Denver, Colorado 80202, utilizing a trial to the court model under streamlined rules and procedures to be mutually agreed upon by the applicable Parties or, if the Parties are not able to agree, as directed by the arbiter. The arbiter’s decision will be final and non-appealable to the courts. Except to the extent such fees and costs are caused by the negligence, willful misconduct or material breach of this Agreement by SDMS, its officers or employees, all of SDMS’ reasonable attorneys’ fees and costs arising from an arbitration, which is a Collection Expense, will be paid from Add-On RSF Revenues (the Municipal Payments are net of Collection Expenses as provided in paragraph 33 of Exhibit A). [Signature Pages Follow This Page] EXHIBIT A to RESOLUTION 13-13 16 1013284.6 IN WITNESS WHEREOF, the Commercial PIC, the Mixed-Use PIC, the Town and SDMS have caused this Agreement to be executed as of the day and year first above written. COMMERCIAL PIC: THE VILLAGE (AT AVON) COMMERCIAL PUBLIC IMPROVEMENT COMPANY, a Colorado nonprofit corporation By: Name: Title: EXHIBIT A to RESOLUTION 13-13 17 1013284.6 MIXED-USE PIC: THE VILLAGE (AT AVON) MIXED-USE PUBLIC IMPROVEMENT COMPANY, a Colorado nonprofit corporation By: Name: Title: EXHIBIT A to RESOLUTION 13-13 18 1013284.6 TOWN: TOWN OF AVON, a home rule municipal corporation of the State of Colorado By: Name: Title: Approved as to legal form by: Eric J. Heil, Esq., Town Attorney EXHIBIT A to RESOLUTION 13-13 19 1013284.6 SDMS: SPECIAL DISTRICT MANAGEMENT SERVICES, INC., a Colorado corporation By: Name: Title: EXHIBIT A to RESOLUTION 13-13 A-1 1013284.6 EXHIBIT A Definitions For purposes of the attached Add-On RSF Collection Services Agreement, the following terms have the following meanings, unless the context requires otherwise. Further, unless the context requires otherwise, the singular of any term includes the plural, and any reference to a Section or Exhibit is to a Section or Exhibit of the attached Add-On RSF Collection Services Agreement. 1. Add-On Retail Sales Fee. In accordance with the Declarations, the component of the Retail Sales Fee (as defined in the Declarations), which is set at rate(s) to be established by the Commercial PIC and the Mixed-Use PIC, as applicable, as declarant under the Commercial Declaration and the Mixed-Use Declaration, respectively, in accordance with the terms, limitations and conditions of the Commercial Declaration or the Mixed-Use Declaration, as applicable, and the Annexation and Development Agreement, and which will be applied to Taxable Transactions (retail sales transactions only and no other Taxable Transactions) initiated, consummated, conducted, transacted or otherwise occurring from or within any portion of the Property, but which is not offset by a credit against the Sales Tax. For purposes of communications to Add-On RSF Obligors and/or the general public, the PICs may designate the Add-On Retail Sales Fee as the “Retail Sales Fee” or “RSF” or such other term as the PICs may determine and designate in writing to SDMS, in which case the applicable forms will be modified to reflect the desired terminology and the term Add-On Retail Sales Fee as used in this Agreement will be construed in all instances to refer to such term as the PICs have designated from time to time. 2. Add-On RSF Collection Agent. The entity engaged by the PICs and the Town as the collecting agent for disbursement and accounting of the Add-On RSF Revenues pursuant to this Agreement as in effect from time to time, and which is authorized to undertake the duties of the “Add-On RSF Collection Agent” as defined in the Annexation and Development Agreement. 3. Add-On RSF Obligor List. As defined in Section 1.2. 4. Add-On RSF Obligor(s). Any Person(s) who, by virtue of being the seller in an Add-On RSF Retail Activity transaction is obligated to collect and remit an Add-On Retail Sales Fee pursuant to the terms of the Commercial Declaration or Mixed-Use Declaration, as applicable. 5. Add-On RSF Reporting Form. A report of Add-On RSF Revenues payable by each Add-On RSF Obligor, in substantially the form set forth in Exhibit B (or as otherwise required by the Information from time to time, a copy of which form is delivered to SDMS by the PICs in advance of its effective date) which, together with remittance of the Add-On RSF Revenues payable and a copy of the corresponding Town Sales Tax report, is to be prepared by each Add-On RSF Obligor and delivered to SDMS on or before each Fee Remittance Date for the immediately preceding Reporting Period. EXHIBIT A to RESOLUTION 13-13 A-2 1013284.6 6. Add-On RSF Retail Activity(ies). The following retail sales transactions which are subject to the Add-On Retail Sales Fee pursuant to the Declarations: any exchange of goods or services for money or other media of exchange that is a Taxable Transaction (retail sales transactions only and no other Taxable Transactions) and is initiated, consummated, conducted, transacted or otherwise occurs from or within any portion of the Property. 7. Add-On RSF Revenues. The revenues generated from imposition and collection of the Add-On Retail Sales Fee pursuant to the terms of the Declarations, together with all interest earned thereon while on deposit with SDMS. 8. Agreement. As defined in the introductory paragraph, this Add-On Retail Sales Fee Collection Services Agreement between the Parties, as amended and supplemented from time to time. 9. Annexation and Development Agreement. The Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon) dated as of _____________, 20____ and entered into by and among the Town, Traer Creek Metropolitan District, Traer Creek LLC and, with respect to certain portions of the Property, EMD Limited Liability Company, all as parties, and Avon Urban Renewal Authority, the PICs and, with respect to certain portions of the Property, EMD Limited Liability Company, all as limited parties, and recorded in the Records on or about even date herewith, as amended from time to time. 10. Asphalt Overlay Account. The restricted escrow account established pursuant to the Asphalt Overlay Agreement into which certain funds are to be deposited for asphalt overlays of public roads in the Property in accordance with the terms and conditions set forth in the Annexation and Development Agreement and the Asphalt Overlay Agreement. 11. Asphalt Overlay Agreement. That certain Asphalt Overlay Escrow Account Agreement dated as of __________, 20____ and entered into by and among the Town, Traer Creek Metropolitan District and FirstBank (Avon Branch), which establishes the terms and conditions upon which funds will be deposited into, held in escrow, and disbursed from the Asphalt Overlay Account. 12. Collection Expense. Any and all fees (including without limitation, Stand-By Fees), costs, expenses, compensation, reimbursements (including without limitation, dispute resolution costs and charges for out-of-pocket expenses such as postage, facsimiles, letterhead, envelopes, printing, etc. for which a receipt is submitted with the applicable Monthly Fee Statement) and other charges due and owing to SDMS in connection with and pursuant to the terms of this Agreement. 13. Commercial Declarant. Traer Creek-RP, LLC, a Colorado limited liability company, or any successor-in-interest or transferee who takes title to any portion of the Commercial Property for the purpose of development and/or sale and is designated as Declarant in an instrument recorded in the Records, as more particularly set forth in the Commercial Declaration. 14. Commercial Declaration. That certain Declaration of Covenants for The Village (at Avon) Commercial Areas made as of May 8, 2002 by Traer Creek LLC, a Colorado limited EXHIBIT A to RESOLUTION 13-13 A-3 1013284.6 liability company, as declarant, and recorded in the Records on May 8, 2002 at Reception No. 795012, as amended by that certain First Amendment to Declaration of Covenants for The Village (at Avon) Commercial Areas recorded in the Records on June 10, 2008 at Reception No.200812111, as amended by that certain Second Amendment to Declaration of Covenants for The Village (at Avon) Commercial Areas recorded in the Records on _________, 20___ at Reception No. ____________, as amended, supplemented or replaced from time to time in accordance with the terms and conditions set forth therein. 15. Commercial PIC. As defined in the introductory paragraph of this Agreement. 16. Commercial Property. The property defined as the “Property” in the Commercial Declaration and legally described in Exhibit A to the Commercial Declaration, upon which the Commercial Declarant and its affiliates are developing and intend to further develop a phased, commercial and retail development. 17. Credit Retail Sales Fee. As defined in Recital B and Recital C, as applicable. 18. Credit RSF Revenues. The revenues generated from the imposition of the Credit Retail Sales Fee (as defined in the Declarations). 19. Declarations. Collectively, the Commercial Declaration and the Mixed-Use Declaration. 20. Director of Finance. The director of finance for the Town, provided that if there is no director of finance for the Town at any time for whatever reason, the “Director of Finance” for all purposes under this Agreement will refer to the Town Manager or the person designated by the Town Manager in writing to the PICs and SDMS. 21. Effective Date. As defined in the introductory paragraph of this Agreement. 22. Exhibits. Individually, one of the following Exhibits to this Agreement and/or, collectively, all of the following Exhibits to this Agreement, as the context dictates, which Exhibits are incorporated into and made a part of this Agreement: Exhibit A: Definitions Exhibit B: Form of Add-On RSF Reporting Form Exhibit C: Form of Monthly Add-On RSF Report Exhibit D: Audit Procedures Exhibit E: SDMS Fee Schedule 23. Fee Remittance Date. With respect to Add-On RSF Revenue payments to be made by Add-On RSF Obligors, the date on which the corresponding Sales Tax amount is due and payable to the Town. EXHIBIT A to RESOLUTION 13-13 A-4 1013284.6 24. Funding Termination. The occurrence of the earlier of: (i) 80,000 square feet of additional development of “Commercial Uses” (as defined in the Amended and Restated PUD Guide for The Village (at Avon)) have been issued a temporary or permanent certificate of occupancy; or (ii) the total annual Taxable Transactions (as defined in the Annexation and Development Agreement) have increased by at least $20,000,000 over the actual total annual Taxable Transactions (as defined in the Annexation and Development Agreement) in the year 2011, all as more particularly set forth in Section 6.6(b) of the Annexation and Development Agreement. 25. Information. Any written information or guidelines, as amended and supplemented from time to time, prepared by the PICs and the Town, with the approval of the Commercial Declarant and the Mixed-Use Declarant, regarding the calculation, payment and reporting of the Add-On Retail Sales Fee. 26. Joint Notice. As defined in Section 1.4(b)1(B) of this Agreement. 27. Mixed-Use Declarant. Traer Creek LLC, a Colorado limited liability company, or any successor-in-interest or transferee who takes title to any portion of the Mixed-Use Property for the purpose of development and/or sale and is designated as Declarant in an instrument recorded in the Records, as more particularly set forth in the Mixed-Use Declaration. 28. Mixed-Use Declaration. That certain Declaration of Covenants for The Village (at Avon) Mixed-Use Areas made as of May 8, 2002 by Traer Creek LLC, a Colorado limited liability company, as declarant, and recorded in the Records on May 8, 2002 at Reception No. 795013, as amended by that certain First Amendment to Declaration of Covenants for The Village (at Avon) Mixed-Use Areas recorded in the Records on __________, 20___ at Reception No. ______________, as amended, supplemented or replaced from time to time in accordance with the terms and conditions set forth therein. 29. Mixed-Use PIC. As defined in the introductory paragraph of this Agreement. 30. Mixed-Use Property. The property defined as the “Property” in the Mixed-Use Declaration and legally described in Exhibit A to the Mixed-Use Declaration, upon which the Mixed-Use Declarant and its affiliates are developing and intend to further develop a phased, mixed-use development. 31. Monthly Add-On RSF Report. The written report that SDMS is required under the terms of this Agreement to prepare for each calendar month during the term of this Agreement and distribute to the PICs and the Town, which report will be substantially in the form and contain the information set forth in Exhibit C. 32. Monthly Fee Statement. As defined in Section 3.5 of this Agreement. 33. Municipal Payments. The portion of the Add-On RSF Revenues which the Town is entitled to receive and are actually collected by SDMS as more particularly described in the Annexation and Development Agreement. The Municipal Payments are calculated as follows: As of the Effective Date, the rate of the Add-On Retail Sales Fee is 0.75%. The net proceeds, after adjustment for (deduction of) the Collection Expenses and application of any EXHIBIT A to RESOLUTION 13-13 A-5 1013284.6 other adjustments to the Add-On RSF Revenues as set forth in the Annexation and Development Agreement, of the Add-On RSF Revenues resulting from imposition of the 0.75% rate to Add- On RSF Retail Activities transactions occurring within the Property will constitute the Municipal Payments. If the Town increases the Sales Tax rate on Add-On RSF Retail Activities transactions above 4.0% during any period for which Municipal Payments are to be remitted to the Town, the portion of the Add-On RSF Revenues which will be construed to be Municipal Payments will be reduced in the same degree as any Sales Tax rate on Add-On RSF Retail Activities transactions increase above 4.0%. For example, if the Town increases its Sales Tax rate on Add-On RSF Retail Activities transactions by 0.25% (from 4.0% to 4.25%), the portion of the Add-On RSF Revenues construed to be Municipal Payments will be that amount equivalent to a reduction of 0.25% in the rate of the Add-On Retail Sales Fee (i.e., the revenue realized from a rate of 0.50% rather than the revenue realized from a rate of 0.75%). 34. Party(ies). Individually, a signatory to this Agreement and, collectively, all signatories to this Agreement. 35. Person. Any individual, partnership, corporation, limited liability company, association, trust or other type of entity or organization. 36. PIC Add-On RSF Account. The bank account established or to be established for the benefit of the PICs for the purpose of SDMS depositing, in accordance with the requirements of Section 1.4, Add-On RSF Revenues received from Add-On RSF Obligors who have engaged in Add-On RSF Retail Activities within the Property within the applicable Reporting Period. 37. PICs. Collectively, the Commercial PIC and the Mixed-Use PIC. 38. Property. Collectively, the Commercial Property and the Mixed-Use Property. 39. Records. The real property records of the Clerk and Recorder for Eagle County, Colorado. 40. Reporting Period. Pursuant to applicable Town regulations, the period of time (which may be monthly, quarterly or such other frequency as the applicable regulations may require) with respect to which a Sales Tax obligor is required to file a periodic report of Taxable Transactions and remit Sales Taxes thereon. 41. Retail Sales Fee or RSF. Is defined in the Declarations. 42. Sales Tax(es). The tax levied by the Town pursuant to the Sales Tax Regulation. 43. Sales Tax Regulation. Chapter 3.08 of the Town Municipal Code, and any regulations promulgated pursuant thereto, as such chapter may be amended, restated or replaced from time to time. 44. SDMS. As defined in the introductory paragraph of this Agreement, Special District Management Services, Inc., a Colorado corporation, together with its successors and any of its assigns as permitted under the terms and conditions of this Agreement, which, pursuant to EXHIBIT A to RESOLUTION 13-13 A-6 1013284.6 this Agreement, is the Add-On RSF Collection Agent as contemplated in the Annexation and Development Agreement. 45. Stand-By Fees. As defined in Exhibit E. 46. Taxable Transaction. Any transaction by which a Person acquires for any consideration or uses within the Town any tangible personal property or service that is subject to the Sales Tax or would be subject to the Sales Tax but for any credit of such tax the Town may make pursuant to the Annexation and Development Agreement and, in addition, any other transaction for, or the use of, any personal property or service that the Commercial PIC and/or the Mixed-Use PIC may designate from time to time as a Taxable Transaction. If the Town stops levying the Sales Tax generally, the term “Taxable Transaction” will mean any transaction by which a Person acquires for any consideration or uses within the Town any tangible personal property or service that would have been subject to the version of the Sales Tax last in effect (but for any credit of such tax the Town may have been making pursuant to the Annexation and Development Agreement) and, in addition, any other transaction for, or the use of, any personal property or service that the Commercial PIC and/or Mixed-Use PIC may designate from time to time as a Taxable Transaction. 47. Tax Credit Termination. The occurrence of the termination of the Town’s obligation to provide tax credits to offset the effect of, among other matters, the Credit Retail Sales Fee (as defined in the Declarations) as more particularly described in the Annexation and Development Agreement, which obligation is implemented by and codified in the Town Municipal Code (as in effect on the Effective Date) at Sections 3.08.035 (with respect to retail sales), 3.12.065 (with respect to real estate transfers) and 3.28.075 (with respect to public accommodations). 48. Town. As defined in the introductory paragraph of this Agreement. 49. Town Add-On RSF Account. The bank account established or to be established for the benefit of the Town for the purpose of SDMS depositing, in accordance with the requirements of Section 1.4, Add-On RSF Revenues received from Add-On RSF Obligors who have engaged in Add-On RSF Retail Activities within the Property within the applicable Reporting Period. EXHIBIT A to RESOLUTION 13-13 B-1 1013284.6 EXHIBIT B Form of Add-On RSF Reporting Form   EXHIBIT A to RESOLUTION 13-13 C-1 1013284.6 EXHIBIT C Form of Monthly Add-On RSF Report D-1 1013284.6 EXHIBIT D Audit Procedures • Obtain listing of all Sales Tax and business licenses obtained by businesses within the Property from the Director of Finance and obtain the Add-On RSF Obligor List as of the end of the applicable calendar year required to be maintained by SDMS and perform the following: ¤ Compare the businesses reflected on the listing provided by the Director of Finance to the businesses included on the Add-On RSF Obligor List; and ¤ Compare the dates of the business licenses that were obtained for each business according to the Town’s records to those dates provided on the Add-On RSF Obligor List. • Randomly select a sample of Add-On RSF Reporting Forms from each Add-On RSF Obligor submitted to SDMS and perform the following: ¤ Determine if each Add-On RSF Reporting Form and related Add-On RSF Revenues were submitted on or before the Fee Remittance Date for the applicable Reporting Period; ¤ Determine, if the Add-On RSF Reporting Forms were not remitted on or before the Fee Remittance Date, SDMS sent a first delinquency notice by certified mail to the Add-On RSF Obligor not later than the 15th day following the applicable Fee Remittance Date; ¤ Mathematically recalculate the Add-On Retail Sales Fee amounts due and payable based on the Add-On RSF Retail Activities reported by each Add-On RSF Obligor for each Add-On RSF Reporting Form; ¤ Reconcile the Add-On RSF Revenues remitted by each Add-On RSF Obligor to bank deposit receipts prepared by SDMS; and ¤ Review the bank deposit slips prepared by SDMS for evidence that the Add-On RSF Revenues were correctly deposited in the Asphalt Overlay Account, the Town Add-On RSF Account and the PIC Add-On RSF Account, as applicable, not later than the seventh business day after receipt of any Add-On RSF Revenues from Add-On RSF Obligors. E-1 1013284.6 EXHIBIT E SDMS Fee Schedule For performance of services SDMS fees are billed monthly. The current hourly rate as of the Effective Date is $130.00 per hour. For so long as SDMS is performing collection services with respect to the Credit RSF Revenues pursuant to a separate agreement, SDMS will not charge an hourly rate or other Collection Expense rates (excluding third-party invoices paid by SDMS that are reimbursable as a Collection Expense) under this Agreement that exceeds such rates charged by SDMS for its services under the agreement pertaining to collection of the Credit RSF Revenues. A minimum monthly charge of two hours will be billed as a stand-by fee (“Stand-By Fee”), provided that the Stand-by Fee will be waived to the extent of actual hours billed. The hourly rate will increase annually on the anniversary date of the Effective Date in accordance with the Denver/Boulder Consumer Price Index. Heil Law & Planning, LLC Office: 303.975.6120 2696 South Colorado Blvd., Suite 550 Fax: 720.836.3337 Denver, CO 80222 E-Mail: eric@heillaw.com e-mail: ericheillaw@yahoo.com H EIL L AW TO: Honorable Mayor Carroll and Town Council Members FROM: Eric Heil, Town Attorney RE: Amendments to the Commercial and Mixed-Use PICs Declarations DATE: March 29, 2013 Summary: This memorandum provides an overview of the Second Amendment to Declaration of Covenants for the Village (at Avon) Commercial Areas (“Commercial Declarations”) and the First Amendment to Declaration of Covenants for the Village (at Avon) Mixed-Use Areas (“Mixed-Use Declarations”). Currently, the Commercial Declarations and Mixed-Use Declarations collectively apply to all areas of the Village (at Avon). The Declarations are property covenants that set forth the rights and obligations of the public improvement companies to impose various public improvement fees in connection with the Town’s tax credits. These fees include the Real Estate Transfer Fee, the Accommodations Fee, and the Retail Sales Fee. As a material term to the settlement and the Consolidated, Amended and Restated Annexation and Development Agreement (“CARADA” or “Development Agreement”), the PICs are required to impose an additional “Add-On Retail Sales Fee” (“RSF”) of .75% which will generate funds to be remitted to the Asphalt Overlay Account and to the Town’s general fund as “Municipal Payments.” In addition to the obligations stated in the CARADA, the .75% Add-On RSF is legally established by (1) the amendments to the Declarations, (2) adoption of a Resolution by each PIC to impose the .75% Add-On RSF, and (3) the Add-On Retail Sales Fee Collection Services Agreement. Amendment to Declarations: The amendments to the Declarations are essentially the same. Reference is made to the sections in the Commercial Declarations in this discussion; however, the operative language in the amendments is the same in both amendments although the sections numbers differ. Section 5.2(b) and Section 6.5 of the CARADA sets forth the obligations of the PICs to amend the Declarations to impose the Add-On RSF. The definitions are revised to amend the definition of Annexation and Development Agreement and Taxable Transaction (for consistency with the CARADA) and to add new definitions including Add-On RSF, Add-On RSF Collection Services Agreement, Add-On RSF Rate, Add-On RSF Revenues, Credit RSF, Credit RSF Rate, Municipal Payments, Permitted Uses, Project Costs and Term. Generally, the new definitions are included for consistency with the CARADA and to establish flexibility in the use, rate and duration of the Add-On RSF beyond the purpose and Term of the CARADA (i.e. the PICs may continue the Add-On RSF at the .75% rate after the obligation to remit this revenue to the Towne expires and/or the PICs may someday increase the Add-On RSF rate above .75% and retain this additional revenue). The desire for future flexibility renders the amendments more difficult to read; however, the amendments do accomplish the effect of imposing the .75% Add-On RSF to implement the CARADA and the terms of the Settlement Term Sheet. NOTE: the definition of Add-On RSF is slightly different in the Declarations compared to the CARADA in that the definition in the CARADA expressly references the .75% rate set forth in Section 6.4(b) of the CARADA. This cross-reference to the .75% rate set forth in Section 6.4(b) of the CARADA was incorporated into the Declarations to avoid any ambiguity that the amendments to the Declarations are for the purpose of imposing the .75% Add-On RSF during the Term of the CARADA. M EMORANDUM & PLANNING, LLC Avon Town Council Amendments to Mixed Use and Commercial Declarations March 29, 2013 Page 2 of 2 Section 7.11 of the Commercial Declarations was added to expressly grant the Town the right to enforce the Add-On RSF against retail vendors in the event that the PICs fail to impose and collect the Add-On RSF. Section 13.3 of the Commercial Declarations was added to provide that the Town must provide written consent to any amendment that “materially impact or impair the ability or authority of the Company to collect that portion of the Add-On RSF Revenues comprising the Municipal Payments and remit the same to the Town.” Section 14.12 of the Commercial Declaration was added to provide that the PIC will forward a copy of any amendments to the Declarations. Town’s Legal Right to Enforce the Add-On RSF: Town’s primary legal right to enforce the Add-On RSF is in the CARADA and a failure of the Master Developer or PICs to take all legally available action to impose the Add-On RSF and cause the collection and remittance of the Add-On RSF Revenues to the Collection Agent, cause Collection Agent to remit to Town Municipal Payments, and take no action to modify, terminate, suspend or otherwise interfere with Town’s right to receive Municipal Payments. Failure to perform is a default of the CARADA. The amendments to the Declarations implement this obligation and further create the rights of the Town to imposition and collection of the Add-On RSF against retail vendors with the same rights of the PICs under the Declarations if the PICs failure to perform. Requested Town Council Action: Approve the amendments to the Mixed Use Declarations and Commercial Declarations by separate motions. Attachments: • Second Amendment to Commercial Declarations • First Amendment to Commercial Declarations • Commercial Declarations • First Amendment to Mixed-Use Declarations • Mixed-Use Declarations Thanks, Eric 1 1012717.7 When recorded, return to: Otten, Johnson, Robinson, Neff & Ragonetti, P.C. Attn: Munsey Ayers 950 17th St., Ste. 1600 Denver, CO 80202 SECOND AMENDMENT TO DECLARATION OF COVENANTS FOR THE VILLAGE (AT AVON) COMMERCIAL AREAS THIS SECOND AMENDMENT TO DECLARATION OF COVENANTS FOR THE VILLAGE (AT AVON) COMMERCIAL AREAS (this “Amendment”) is made as of ______________, 20___, with the consent of TRAER CREEK-RP LLC, a Colorado limited liability company (“Declarant”). Recitals A. Traer Creek LLC, a Colorado limited liability company, as the original “Declarant,” executed and recorded that certain Declaration of Covenants for The Village (at Avon) Commercial Areas dated as of May 8, 2002 and recorded in the real property records of Eagle County, Colorado (the “Records”) on May 8, 2002 at Reception No. 795012 (“Original Declaration”). B. By virtue of that certain Special Warranty Deed dated as of April 25, 2002 and recorded in the Records on May 8, 2002 at Reception No. 795023, Declarant is the successor to Traer Creek LLC as “declarant” under the Original Declaration. C. The Original Declaration subsequently was amended by that certain First Amendment to Declaration of Covenants for The Village (at Avon) Commercial Areas dated as of June 5, 2008 and recorded in the Records on June 10, 2008 at Reception No. 200812111 (the “First Amendment”). D. The Original Declaration as amended by the First Amendment is referred to herein as the “Declaration.” Except as otherwise defined in this Amendment, all capitalized terms used in this Amendment have the meaning given for them in the Declaration. E. The purpose of this Amendment is to implement certain terms and conditions of the Annexation and Development Agreement (as defined in Section 1(a)(i) below), including without limitation, Sections 5.2(b), 5.3(c), 6.4(b) and 6.5 thereof, which pertain to the implementation and imposition of a retail sales fee (the “Add-On RSF” as defined in Section 1(a)(iii) below) to be applied to Taxable Transactions occurring within the Property, which fee does not result in an offsetting credit against the Town’s Sales Tax obligation. F. Pursuant to Section 13.1(f) of the Declaration, subject to certain restrictions, the Declaration may be amended by the affirmative vote or written consent of the Owners of Units to which more than 67% of the votes in the Company are allocated, provided that during the Declarant Control Period any such amendment shall also require the approval of Declarant. 2 1012717.7 G. This Amendment has been submitted to the Owners of the Units for their written consent and has been consented to in writing by Owners of Units to which more than 67% of the votes in the Company are allocated. In addition, Declarant desires to consent to this Amendment as indicated by the Declarant consent attached to this Amendment. Amendment NOW, THEREFORE, the Declaration is amended as follows and pursuant to the following provisions: 1. Amendments. (a) Definitions. (i) Annexation and Development Agreement. Section 2.6 of the Declaration is hereby deleted in its entirety and in its place inserted the following: 2.6 Annexation and Development Agreement. The Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon) dated as of _____________, 20____ by and between the Town, the Service District, Declarant and, with respect to only Planning Area I (as defined in the Annexation and Development Agreement), EMD Limited Liability Company, all as parties, and Avon Urban Renewal Authority, the Company, The Village (at Avon) Mixed-Use Public Improvement Company and, with respect to the Property excepting Planning Area I, EMD Limited Liability Company, all as limited parties, and Recorded on or about even date herewith, as amended from time to time. (ii) Taxable Transaction. Section 2.78 of the Declaration is hereby deleted in it entirety and in its place inserted the following: 2.78 Taxable Transaction. Any transaction by which a Person acquires for any consideration or uses within the Town any tangible personal property or service that is subject to the Sales Tax or would be subject to the Sales Tax but for any credit of such tax the Town may make pursuant to the Annexation and Development Agreement and, in addition, any other transaction for, or the use of, any personal property or service that the Company may designate from time to time as a Taxable Transaction. If the Town stops levying the Sales Tax generally, the term “Taxable Transaction” shall mean any transaction by which a Person acquired for any consideration or uses within the Town any tangible personal property or service that would have been subject to the version of the Sales Tax last in effect (but for any credit of such tax the Town may have been making pursuant to the Annexation and Development Agreement) and, in addition, any other transaction for, or the use of, any personal property or service 3 1012717.7 that the Company may designate from time to time as a Taxable Transaction. (iii) New Definitions. Article 2 of the Declaration is hereby amended by the insertion of the following definitions: 2.5.2 Add-On RSF. A component of the Retail Sales Fee as described in Section 7.4. 2.5.4. Add-On RSF Collection Services Agreement. Is defined in the Annexation and Development Agreement. 2.5.6 Add-On RSF Rate. The Retail Sales Fee Rate of the Add- On RSF as described in Section 7.5(c). 2.5.8 Add-On RSF Revenues. Is defined in the Annexation and Development Agreement. 2.20.2 Credit RSF. A component of the Retail Sales Fee as described in Section 7.4. 2.20.4 Credit RSF Rate. The Retail Sales Fee Rate of the Credit RSF as described in Section 7.5(c). 2.49.2 Municipal Payments. Is defined in the Annexation and Development Agreement. 2.52.2 Permitted Uses. Is defined in Section 7.10. 2.55.2 Project Costs. Is defined in Section 7.10. 2.78.2 Term. Is defined in the Annexation and Development Agreement. (b) Retail Sales Fee. Section 7.4 of the Declaration is hereby amended by inserting as a new first sentence to Section 7.4 the following: The Retail Sales Fee is comprised of the following two components: (a) the “Credit RSF,” which is the portion of the Retail Sales Fee that, when applied to and collected on Taxable Transactions in accordance with this Article 7, shall result in an offsetting credit against the Sales Tax obligation pursuant to the terms of the Annexation and Development Agreement; and (b) the “Add-On RSF,” which is the portion of the Retail Sales Fee that, when applied to and collected on Taxable Transactions in accordance with this Article 7, shall not result in an offsetting credit against the Sales Tax obligation. 4 1012717.7 (c) Retail Sales Fee Rate. Section 7.5(c) of the Declaration is hereby deleted in its entirety and in its place inserted the following: (c) Retail Sales Fee Rate. The percentage rate(s) of the Retail Sales Fee (the “Retail Sales Fee Rate”) (i) shall be established by the Company from time to time; (ii) may vary as applied to the Credit RSF and as applied to the Add-On RSF; and (iii) may vary as applied to different portions of the Property. The Retail Sales Fee Rate of the Add-On RSF (the “Add-On RSF Rate”) (Y) shall be set during the Term at a rate in accordance with Section 6.4(b) of the Annexation and Development Agreement; and (Z) shall not, without the prior written approval of the Declarant during the Declarant Control Period, be greater than 0.75%. The Retail Sales Fee Rate of the Credit RSF (the “Credit RSF Rate”) shall be set at the same rate as the percentage tax rate imposed by the Town pursuant to the Sales Tax subject to the following exceptions: (i) the Credit RSF Rate may be set at a rate less than the percentage tax rate imposed by the Town pursuant to the Sales Tax with the prior written approval of the Service District, any LOC Issuer, and, during the Declarant Control Period, Declarant; and, (ii) subject to the terms and conditions of, and in accordance with, Section 6.4(b)(ii) of the Annexation and Development Agreement, if the Town increases the Sales Tax rate for a “specific project” (as defined in Section 6.4(b)(ii) of the Annexation and Development Agreement) during the Term, the Credit RSF Rate shall not be increased correspondingly to such increased Town Sales Tax rate. (d) Discontinuation of the Fees. Section 7.9 of the Declaration is hereby deleted in its entirety and in its place inserted the following: 7.9 Discontinuation of the Fees. The Company shall be obligated and authorized to levy and collect the Fees pursuant to this Article 7 for so long as the Town maintains the Tax Credit in full force and effect as set forth in Section 6.1(b) of the Annexation and Development Agreement; provided, however, the Company shall be further authorized to continue to levy and collect the Add-On RSF pursuant to this Article 7 upon and after the Town terminates the Tax Credit. Notwithstanding the foregoing and pursuant to Section 6.1(d) of the Annexation and Development Agreement, if the Company is authorized to discontinue collecting the Fees pursuant to this Section 7.9 and the Town desires to begin imposing any tax under the Municipal Code that is equivalent to any such Fee, excluding the Add-On RSF (e.g., the Real Property Transfer Tax would be considered the equivalent of the Real Estate Transfer Fee) but is prevented from collecting such tax due to Article X, Section 20, of the Constitution 5 1012717.7 of the State of Colorado, the Company shall not discontinue collecting such Fee (excluding the Add-On RSF) and shall remit the payments collected pursuant to such Fee to the Town as required by the Annexation and Development Agreement. (e) Use of Add-On RSF Revenues. Article 7 of the Declaration is hereby amended by inserting a new Section 7.10 into Article 7 of the Declaration as follows: 7.10 Use of Add-On RSF Revenues. Add-On RSF Revenues may be used for the payment of (a) Municipal Payments to the Town for the purposes stated in Section 6.5(b)(i) of the Annexation and Development Agreement; (b) the “Project Costs” (as defined below); and (c) other matters as otherwise expressly provided for in this Declaration and/or the Annexation and Development Agreement (collectively, the “Permitted Uses”). By accepting title to a Unit or a Leasehold Estate, each Owner and Leasehold Owner acknowledges: (i) that the Company, the Service District, the Town and/or the Declarant, as applicable, will use the Add- On RSF Revenues for the Permitted Uses, which will benefit the Units and the Property; and (ii) that the obligation to pay the Add-On RSF pursuant to this Declaration touches and concerns the Property and the Units and is a real covenant running with the land as well as a personal contractual obligation of Owners and Leasehold Owners. For purposes of this Article 7, the “Project Costs” shall mean and include the costs and expenses to provide or undertake the following with respect to the Property: (A) on-site and off-site public and private infrastructure improvements and amenities benefitting the Property and the Units, which may include, but are not limited to, streets, parking lots and facilities, sidewalks, utilities (wet and dry), storm water and water quality management facilities, trail systems, landscaping, project and directional signage, right-of-way and easement acquisitions, open space, project lighting, traffic control devices, and similar improvements and amenities as determined by Declarant and/or the Company; (B) economic development activities with respect to the Property, including, without limitation, provision of incentives to retain existing retailers and service providers within, and attracting new retailers and service providers to, the Property; (C) ongoing maintenance and related services that Declarant and/or the Company may undertake for the common benefit of the Property at the direction of Declarant, including, but not limited to, general common area maintenance and the installation and maintenance of landscaping, lighting, signage, marketing and promotional programs for the Property, and similar functions, including without limitation, engaging consultants in connection with such services, that will benefit the Property, and that will benefit the Owners and Leasehold Owners; (D) planning, designing, engineering, construction engineering, financing, acquiring, construction surveying, constructing, managing construction of and installing the on-site and off-site public and private infrastructure improvements and amenities benefitting the Property and the Units, 6 1012717.7 together with all land or interests in land necessary for the completion of the same, and all other costs and expenses incurred or advanced in connection with the financing, acquisition, construction and completion of the on-site and off-site public and private infrastructure improvements and amenities benefitting the Property and the Units, including, without limitation, maintenance, repair and replacement costs incurred therefor; (E) any other functions the Company is authorized to perform under its governing documents or under the terms and conditions of this Declaration, as amended from time to time in accordance with its terms; and (F) the Company’s organization and/or management. (f) Town Enforcement of Payment of Add-On RSF. Article 7 of the Declaration is hereby amended by inserting a new Section 7.11 into Article 7 of the Declaration as follows: 7.11 Town Enforcement of Payment of Add-On RSF. Subject to this Section 7.11, the Town is a limited third party beneficiary of this Declaration for the sole purpose of enforcing the Owners’ and Leasehold Owners’ payment of the Add-On RSF pursuant to the terms of this Declaration. If the Owner(s) and/or Leasehold Owner(s) fail to pay the Add-On RSF in accordance with this Declaration, the Town may give written notice of such failure to the Company and the Company shall have 60 days from receipt of such notice to cause such Owner(s) and/or Leasehold Owner(s) to cure such non-payment; provided, however, in no event shall the Company have any obligation to cause such Owner(s) and/or Leasehold Owner(s) to cure such non-payment or have any liability with respect thereto. Upon the foregoing cure period having expired without such Owner(s) and/or Leasehold Owner(s) curing the non- payment, the Town shall have the right to exercise all rights and remedies of the Company as set forth in Article 8 and Section 14.7 with respect to enforcement against the applicable Owner(s) and/or Leasehold Owner(s) of such party(ies)’ obligation to pay the Add-On RSF. Notwithstanding the foregoing, the Company shall have the right, but not the obligation, to give notice to the Town waiving the Company’s 60-day cure period, in which event the Town shall immediately have the right to exercise the rights and remedies of the Company as set forth in the preceding sentence. The Town’s right to enforce the Owners’ and Leasehold Owners’ payment of the Add-On RSF pursuant to this Declaration shall terminate concurrently with termination of the Town’s right to receive the Municipal Payments in accordance with the terms of the Annexation and Development Agreement, and upon and after such termination of the Town’s right to receive the Municipal Payments, this Section 7.11 shall be null and void and of no further force or effect. (g) Amendments Concerning the Fees. Section 13.3 of the Declaration is hereby deleted in its entirety and in its place inserted the following: 7 1012717.7 13.3 Amendments Concerning Fees. Notwithstanding any provision of this Declaration to the contrary, (a) without the prior written consent of the Service District and any LOC Issuer, neither Article 7 of this Declaration, nor any other provision of this Declaration nor the Fee Assignment Agreement may be amended in any manner that would materially impact or impair the ability or authority of the Company to collect any of the Fees (excluding the Add-On RSF) and remit the same to the Service District in accordance with the terms and conditions of this Declaration and the Fee Assignment Agreement; and (b) without the prior written consent of the Town, neither Article 7 of this Declaration, nor any other provision of this Declaration nor the Add-On RSF Collection Services Agreement may be amended in any manner that would materially impact or impair the ability or authority of the Company to collect that portion of the Add-On RSF Revenues comprising the Municipal Payments and remit the same to the Town in accordance with the terms and conditions of this Declaration, the Annexation and Development Agreement and the Add-On RSF Collection Services Agreement. (h) Notice to the Town. Section 14.12 of the Declaration is hereby amended by inserting after the last sentence of Section 14.12 the following: During the Term, the Company will provide to the Town a courtesy copy of any amendment to this Declaration within 30 days of recordation thereof, which courtesy copy may be hand delivered or delivered by U.S. mail, nationally-recognized courier service or facsimile to the following address: Town of Avon, Attention: Town Manager and Town Attorney, 1 Lake Street, P.O. Box 975, Avon, Colorado 81620, facsimile: (970) 949- 9139. Notwithstanding the foregoing, the Company will have no liability with respect to, and it will not be a default hereunder in connection with, any failure by the Company to provide to the Town a courtesy copy of any amendment to this Declaration as contemplated by this Section 14.12. The Town may change its addresses for purposes of notice by notice to the Company in accordance with this Section 14.12. 2. Effect. Except as expressly modified herein, the Declaration is unmodified, is hereby ratified and affirmed and will remain in full force and effect in accordance with its terms. If there is any inconsistency between the terms of the Declaration and the terms of this Amendment, the provisions of this Amendment will govern and control. 3. Counterparts. This Amendment may be executed in multiple counterparts, the individual signatures pages of which may be collated together to form one original fully executed version of this Amendment for the purpose of Recording. 4. Recording. This Amendment and the certificate included as a part of this Amendment shall be Recorded in the Records, as required by Section 13.2(c) of the Declaration. [Company Certificate Follows This Page] 8 1012717.7 Company Certificate IN WITNESS WHEREOF, _________________________, as President of The Village (at Avon) Commercial Public Improvement Company, a Colorado nonprofit corporation, certifies that this Amendment has been consented to in writing by the requisite number of Owners pursuant to Section 13.1(f) of the Declaration. Such written consents are available for review by any interested party at the principal offices of the company located at 0101 Fawcett Road, Suite 210, Avon, CO 81620. THE VILLAGE (AT AVON) COMMERCIAL PUBLIC IMPROVEMENT COMPANY, a Colorado nonprofit corporation By: Name: Title: President STATE OF COLORADO ) ) ss: COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of _______________, 20___, by _______________________, as President of The Village (at Avon) Commercial Public Improvement Company, a Colorado nonprofit corporation. Witness my hand and official seal. My commission expires: . Notary Public 9 1012717.7 Declarant Consent IN WITNESS WHEREOF, Traer Creek-RP, LLC, a Colorado limited liability company, in its capacity as Declarant, hereby consents to this Amendment as required by Section 13.1(f) of the Declaration. TRAER CREEK-RP LLC, a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its Manager By: Name: By: Manager STATE OF COLORADO ) ) ss: COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of ________________, 20___, by ______________________, as Manager of Traer Creek LLC, a Colorado limited liability company, as Manager of Traer Creek-RP LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: . Notary Public 1 1023691.7 When recorded, return to: Otten, Johnson, Robinson, Neff & Ragonetti, P.C. Attn: Munsey Ayers 950 17th St., Ste. 1600 Denver, CO 80202 FIRST AMENDMENT TO DECLARATION OF COVENANTS FOR THE VILLAGE (AT AVON) MIXED-USE AREAS THIS FIRST AMENDMENT TO DECLARATION OF COVENANTS FOR THE VILLAGE (AT AVON) MIXED-USE AREAS (this “Amendment”) is made as of ______________, 20___, with the consent of TRAER CREEK-RP LLC, a Colorado limited liability company (“Declarant”). Recitals A. Traer Creek LLC, a Colorado limited liability company, as the original “Declarant,” executed and recorded that certain Declaration of Covenants for The Village (at Avon) Mixed-Use Areas dated as of May 8, 2002 and recorded in the real property records of Eagle County, Colorado (the “Records”) on May 8, 2002 at Reception No. 795013 (“Declaration”). Except as otherwise defined in this Amendment, all capitalized terms used in this Amendment have the meaning given for them in the Declaration. B. By virtue of that certain Special Warranty Deed dated as of April 25, 2002 and recorded in the Records on May 8, 2002 at Reception No. 795023, Declarant is the successor to Traer Creek LLC as “declarant” under the Declaration. C. The purpose of this Amendment is to implement certain terms and conditions of the Annexation and Development Agreement (as defined in Section 1(a)(i) below), including without limitation, Sections 5.2(b), 5.3(c), 6.4(b) and 6.5 thereof, which pertain to the implementation and imposition of a retail sales fee (the “Add-On RSF” as defined in Section 1(a)(iii) below) to be applied to Taxable Transactions occurring within the Property, which fee does not result in an offsetting credit against the Town’s Sales Tax obligation. D. Pursuant to Section 16.1(j) of the Declaration, subject to certain restrictions, the Declaration may be amended by the affirmative vote or written consent of the Owners of Units to which more than 50% of the votes in the Company are allocated, provided that during the Development Period any such amendment shall also require the approval of Declarant. E. This Amendment has been submitted to the Owners of the Units for their written consent and has been consented to in writing by Owners of Units to which more than 50% of the votes in the Company are allocated. In addition, Declarant desires to consent to this Amendment as indicated by the Declarant consent attached to this Amendment. 2 1023691.7 Amendment NOW, THEREFORE, the Declaration is amended as follows and pursuant to the following provisions: 1. Amendments. (a) Definitions. (i) Annexation and Development Agreement. Section 2.7 of the Declaration is hereby deleted in its entirety and in its place inserted the following: 2.7 Annexation and Development Agreement. The Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon) dated as of _____________, 20____ by and between the Town, the Service District, Declarant and, with respect to only Planning Area I (as defined in the Annexation and Development Agreement), EMD Limited Liability Company, all as parties, and Avon Urban Renewal Authority, the Company, The Village (at Avon) Mixed-Use Public Improvement Company and, with respect to the Property excepting Planning Area I, EMD Limited Liability Company, all as limited parties, and Recorded on or about even date herewith, as amended from time to time. (ii) Taxable Transaction. Section 2.80 of the Declaration is hereby deleted in it entirety and in its place inserted the following: 2.80 Taxable Transaction. Any transaction by which a Person acquires for any consideration or uses within the Town any tangible personal property or service that is subject to the Sales Tax or would be subject to the Sales Tax but for any credit of such tax the Town may make pursuant to the Annexation and Development Agreement and, in addition, any other transaction for, or the use of, any personal property or service that the Company may designate from time to time as a Taxable Transaction. If the Town stops levying the Sales Tax generally, the term “Taxable Transaction” shall mean any transaction by which a Person acquired for any consideration or uses within the Town any tangible personal property or service that would have been subject to the version of the Sales Tax last in effect (but for any credit of such tax the Town may have been making pursuant to the Annexation and Development Agreement) and, in addition, any other transaction for, or the use of, any personal property or service that the Company may designate from time to time as a Taxable Transaction. (iii) New Definitions. Article 2 of the Declaration is hereby amended by the insertion of the following definitions: 3 1023691.7 2.6.2 Add-On RSF. A component of the Retail Sales Fee described in Section 9.4. 2.6.4 Add-On RSF Collection Services Agreement. Is defined in the Annexation and Development Agreement. 2.6.6 Add-On RSF Rate. The Retail Sales Fee Rate of the Add- On RSF as described in Section 9.5(c). 2.6.8 Add-On RSF Revenues. Is defined in the Annexation and Development Agreement. 2.22.2 Credit RSF. A component of the Retail Sales Fee described in Section 9.4. 2.22.4 Credit RSF Rate. The Retail Sales Fee Rate of the Credit RSF as described in Section 9.5(c). 2.50.2 Municipal Payments. Is defined in the Annexation and Development Agreement. 2.52.2 Permitted Uses. Is defined in Section 9.10. 2.52.4 Project Costs. Is defined in Section 9.10. 2.80.2 Term. Is defined in the Annexation and Development Agreement. (b) Retail Sales Fee. Section 9.4 of the Declaration is hereby amended by inserting as a new first sentence to Section 9.4 the following: The Retail Sales Fee is comprised of the following two components: (a) the “Credit RSF,” which is the portion of the Retail Sales Fee that, when applied to and collected on Taxable Transactions in accordance with this Article 9, shall result in an offsetting credit against the Sales Tax obligation pursuant to the terms of the Annexation and Development Agreement; and (b) the “Add-On RSF,” which is the portion of the Retail Sales Fee that, when applied to and collected on Taxable Transactions in accordance with this Article 9, shall not result in an offsetting credit against the Sales Tax obligation. (c) Retail Sales Fee Rate. Section 9.5(c) of the Declaration is hereby deleted in its entirety and in its place inserted the following: (c) Retail Sales Fee Rate. The percentage rate(s) of the Retail Sales Fee (the “Retail Sales Fee Rate”) (i) shall be established by the Company from time to time; (ii) may vary as applied to the Credit RSF and as applied to the Add-On RSF; and (iii) may vary as applied to different portions of the 4 1023691.7 Property. The Retail Sales Fee Rate of the Add-On RSF (the “Add-On RSF Rate”) (Y) shall be set during the Term at a rate in accordance with Section 6.4(b) of the Annexation and Development Agreement; and (Z) shall not, without the prior written approval of the Declarant during the Development Period, be greater than 0.75%. The Retail Sales Fee Rate of the Credit RSF (the “Credit RSF Rate”) shall be set at the same rate as the percentage tax rate imposed by the Town pursuant to the Sales Tax, subject to the following exceptions: (i) the Credit RSF Rate may be set at a rate less than the percentage tax rate imposed by the Town pursuant to the Sales Tax with the prior written approval of the Service District, any LOC Issuer, and, during the Development Period, Declarant; and, (ii) subject to the terms and conditions of, and in accordance with, Section 6.4(b)(ii) of the Annexation and Development Agreement, if the Town increases the Sales Tax rate for a “specific project” (as defined in Section 6.4(b)(ii) of the Annexation and Development Agreement) during the Term, the Credit RSF Rate shall not be increased correspondingly to such increased Town Sales Tax rate. (d) Discontinuation of the Fees. Section 9.9 of the Declaration is hereby deleted in its entirety and in its place inserted the following: 9.9 Discontinuation of the Fees. The Company shall be obligated and authorized to levy and collect the Fees pursuant to this Article 9 for so long as the Town maintains the Tax Credit in full force and effect as set forth in Section 6.1(b) of the Annexation and Development Agreement; provided, however, the Company shall be further authorized to continue to levy and collect the Add-On RSF pursuant to this Article 9 upon and after the Town terminates the Tax Credit. Notwithstanding the foregoing and pursuant to Section 6.1(d) of the Annexation and Development Agreement, if the Company is authorized to discontinue collecting the Fees pursuant to this Section 9.9 and the Town desires to begin imposing any tax under the Municipal Code that is equivalent to any such Fee, excluding the Add-On RSF (e.g., the Real Property Transfer Tax would be considered the equivalent of the Real Estate Transfer Fee) but is prevented from collecting such tax due to Article X, Section 20, of the Constitution of the State of Colorado, the Company shall not discontinue collecting such Fee (excluding the Add-On RSF) and shall remit the payments collected pursuant to such Fee to the Town as required by the Annexation and Development Agreement. (e) Use of Add-On RSF Revenues. Article 9 of the Declaration is hereby amended by inserting a new Section 9.10 into Article 9 of the Declaration as follows: 5 1023691.7 9.10 Use of Add-On RSF Revenues. Add-On RSF Revenues may be used for the payment of (a) Municipal Payments to the Town for the purposes stated in Section 6.5(b)(i) of the Annexation and Development Agreement; (b) the “Project Costs” (as defined below); and (c) other matters as otherwise expressly provided for in this Declaration and/or the Annexation and Development Agreement (collectively, the “Permitted Uses”). By accepting title to a Unit or a Leasehold Estate, each Owner and Leasehold Owner acknowledges: (i) that the Company, the Service District, the Town and/or the Declarant, as applicable, will use the Add- On RSF Revenues for the Permitted Uses, which will benefit the Units and the Property; and (ii) that the obligation to pay the Add-On RSF pursuant to this Declaration touches and concerns the Property and the Units and is a real covenant running with the land as well as a personal contractual obligation of Owners and Leasehold Owners. For purposes of this Article 9, the “Project Costs” shall mean and include the costs and expenses to provide or undertake the following with respect to the Property: (A) on-site and off-site public and private infrastructure improvements and amenities benefitting the Property and the Units, which may include, but are not limited to, streets, parking lots and facilities, sidewalks, utilities (wet and dry), storm water and water quality management facilities, trail systems, landscaping, project and directional signage, right-of-way and easement acquisitions, open space, project lighting, traffic control devices, and similar improvements and amenities as determined by Declarant and/or the Company; (B) economic development activities with respect to the Property, including, without limitation, provision of incentives to retain existing retailers and service providers within, and attracting new retailers and service providers to, the Property; (C) ongoing maintenance and related services that Declarant and/or the Company may undertake for the common benefit of the Property at the direction of Declarant, including, but not limited to, general common area maintenance and the installation and maintenance of landscaping, lighting, signage, marketing and promotional programs for the Property, and similar functions, including without limitation, engaging consultants in connection with such services, that will benefit the Property, and that will benefit the Owners and Leasehold Owners; (D) planning, designing, engineering, construction engineering, financing, acquiring, construction surveying, constructing, managing construction of and installing the on-site and off-site public and private infrastructure improvements and amenities benefitting the Property and the Units, together with all land or interests in land necessary for the completion of the same, and all other costs and expenses incurred or advanced in connection with the financing, acquisition, construction and completion of the on-site and off-site public and private infrastructure improvements and amenities benefitting the Property and the Units, including, without limitation, maintenance, repair and replacement costs incurred therefor; (E) any other functions the Company is authorized to perform under its 6 1023691.7 governing documents or under the terms and conditions of this Declaration, as amended from time to time in accordance with its terms; and (F) the Company’s organization and/or management. (f) Town Enforcement of Payment of Add-On RSF. Article 9 of the Declaration is hereby amended by inserting a new Section 9.11 into Article 9 of the Declaration as follows: 9.11 Town Enforcement of Payment of Add-On RSF. Subject to this Section 9.11, the Town is a limited third party beneficiary of this Declaration for the sole purpose of enforcing the Owners’ and Leasehold Owners’ payment of the Add-On RSF pursuant to the terms of this Declaration. If the Owner(s) and/or Leasehold Owner(s) fail to pay the Add-On RSF in accordance with this Declaration, the Town may give written notice of such failure to the Company and the Company shall have 60 days from receipt of such notice to cause such Owner(s) and/or Leasehold Owner(s) to cure such non-payment; provided, however, in no event shall the Company have any obligation to cause such Owner(s) and/or Leasehold Owner(s) to cure such non-payment or have any liability with respect thereto. Upon the foregoing cure period having expired without such Owner(s) and/or Leasehold Owner(s) curing the non- payment, the Town shall have the right to exercise all rights and remedies of the Company as set forth in Article 10 and Section 17.5 with respect to enforcement against the applicable Owner(s) and/or Leasehold Owner(s) of such party(ies)’ obligation to pay the Add-On RSF. Notwithstanding the foregoing, the Company shall have the right, but not the obligation, to give notice to the Town waiving the Company’s 60-day cure period, in which event the Town shall immediately have the right to exercise the rights and remedies of the Company as set forth in the preceding sentence. The Town’s right to enforce the Owners’ and Leasehold Owners’ payment of the Add-On RSF pursuant to this Declaration shall terminate concurrently with termination of the Town’s right to receive the Municipal Payments in accordance with the terms of the Annexation and Development Agreement, and upon and after such termination of the Town’s right to receive the Municipal Payments, this Section 9.11 shall be null and void and of no further force or effect. (g) Amendments Concerning the Fees. Section 16.3 of the Declaration is hereby deleted in its entirety and in its place inserted the following: 16.3 Amendments Concerning Fees. Notwithstanding any provision of this Declaration to the contrary, (a) without the prior written consent of the Service District and any LOC Issuer, neither Article 9 of this Declaration, nor any other provision of this Declaration nor the Fee Assignment Agreement may be amended in any manner that would materially impact or impair the ability or authority of the Company to collect any of the Fees (excluding the Add-On RSF) and remit the same to the Service District in 7 1023691.7 accordance with the terms and conditions of this Declaration and the Fee Assignment Agreement; and (b) without the prior written consent of the Town, neither Article 9 of this Declaration, nor any other provision of this Declaration nor the Add-On RSF Collection Services Agreement may be amended in any manner that would materially impact or impair the ability or authority of the Company to collect that portion of the Add-On RSF Revenues comprising the Municipal Payments and remit the same to the Town in accordance with the terms and conditions of this Declaration, the Annexation and Development Agreement and the Add-On RSF Collection Services Agreement. (h) Notice to the Town. Section 17.10 of the Declaration is hereby amended by inserting after the last sentence of Section 17.10 the following: During the Term, the Company will provide to the Town a courtesy copy of any amendment to this Declaration within 30 days of recordation thereof, which courtesy copy may be hand delivered or delivered by U.S. mail, nationally-recognized courier service or facsimile to the following address: Town of Avon, Attention: Town Manager and Town Attorney, 1 Lake Street, P.O. Box 975, Avon, Colorado 81620, facsimile: (970) 949- 9139. Notwithstanding the foregoing, the Company will have no liability with respect to, and it will not be a default hereunder in connection with, any failure by the Company to provide to the Town a courtesy copy of any amendment to this Declaration as contemplated by this Section 17.10. The Town may change its addresses for purposes of notice by notice to the Company in accordance with this Section 17.10. 2. Effect. Except as expressly modified herein, the Declaration is unmodified, is hereby ratified and affirmed and will remain in full force and effect in accordance with its terms. If there is any inconsistency between the terms of the Declaration and the terms of this Amendment, the provisions of this Amendment will govern and control. 3. Counterparts. This Amendment may be executed in multiple counterparts, the individual signatures pages of which may be collated together to form one original fully executed version of this Amendment for the purpose of Recording. 4. Recording. This Amendment and the certificate included as a part of this Amendment shall be Recorded in the Records, as required by Section 16.2(c) of the Declaration. [Company Certificate Follows This Page] 8 1023691.7 Company Certificate IN WITNESS WHEREOF, _________________________, as President of The Village (at Avon) Mixed-Use Public Improvement Company, a Colorado nonprofit corporation, certifies that this Amendment has been consented to in writing by the requisite number of Owners pursuant to Section 16.1(j) of the Declaration. Such written consents are available for review by any interested party at the principal offices of the company located at 0101 Fawcett Road, Suite 210, Avon, CO 81620. THE VILLAGE (AT AVON) MIXED-USE PUBLIC IMPROVEMENT COMPANY, a Colorado nonprofit corporation By: Name: Title: President STATE OF COLORADO ) ) ss: COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of _______________, 20___, by _______________________, as President of The Village (at Avon) Mixed-Use Public Improvement Company, a Colorado nonprofit corporation. Witness my hand and official seal. My commission expires: . Notary Public 9 1023691.7 Declarant Consent IN WITNESS WHEREOF, Traer Creek-RP, LLC, a Colorado limited liability company, in its capacity as Declarant, hereby consents to this Amendment as required by Section 13.1(f) of the Declaration. TRAER CREEK-RP LLC, a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its Manager By: Name: By: Manager STATE OF COLORADO ) ) ss: COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this ___ day of ________________, 20___, by ______________________, as Manager of Traer Creek LLC, a Colorado limited liability company, as Manager of Traer Creek-RP LLC, a Colorado limited liability company. Witness my hand and official seal. My commission expires: . Notary Public After recording, Please return to: Otten, Johnson, Robinson, Neff & ~ag~ne~i, 12 North First Street, Suite C DECLARATION OF COVENANTS FOR Tm VILLAGE (AT AVON) MIXED-USE AREAS .___ TABLE OF CONTENTS e icle 1.1 1 . 2 1.3 1.4 icle 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.1 1 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 ............................................................................................................. Capitalized Terms .................................................................................................. 1 Purpose ................................................................................................................... 1 Consenting Owner ................................................................................................. 1 ~ecl~ation ............................................................................................................. TIONS ....................................................................................................... 2 Accomodatio~s~odging Room .......................................................................... 2 AccommodationdLodging Fee .............................................................................. 2 AccomodationsLodging Fee Rate ...................................................................... 2 Act .......................................................................................................................... 2 Actual Value ....................................................................................................... .. 2 Adhtional Lands .................................................................................................... 3 Annexation . and Development Agreement ............................................................. 3 Articles of Incorporation or Articles ...................................................................... 3 ** Assessment ............................................................................................................ -3 Audit ...................................................................................................................... 3 Authorized Representative ..................................................................................... 3 Board ofDirectors or Board .................................................................................. 3 43ylaws .................................................................................................................... 3 Commercial Company ........................................................................................... 3 . C.ommercia1 Declaration ........................................................................................ 3 .Commercial Unit .................................................................................................... 5 Common Allocation ............................................................................................... 4 Common Assessment ............................................................................................. 4 Common Elements ................................................................................................. 4 Common Expenses ................................................................................................. 4 Company ................................................................................................................ 4 Consideration ......................................................................................................... 4 Declarant ................................................................................................................ 5 .. ~ ............. 795813 Page: 2 of 75 05/08/2002 01:13F . ara J Fisher Eagle. GO 135 R 375.00 D 0.00 . 1 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37 2.38 2.39 2 -40 2.41 2.42 2.43 2.44 2.45 2.46 2.47 2.48 2.49 2.50 2.5 1 2.52 TABLE OF CONTENTS (continued) e ....................................................................................... 5 Declaration ............................................................................................................. 5 Delinquency Costs ................................................................................................. 5 Design Review Board ............................................................................................ 5 Design Review ~uidelines ..................................................................................... 5 eveloper ............................................................................................................... 5 Development Period ............................................................................................... 6 Development Rights ............................................................................................... 6 Director .................................................................................................................. 6 Eligible Holder ........................................................................................................ 6 Fee Assignment Agreement ................................................................................... 6 Fee Records ............................................................................................................ 6 Fees ........................................................................................................................ 6 Final Plat ................................................................................................................ 6 Financing District ................................................................................................... 6 First Mortgage ........................................................................................................ 6 Fiscal Year ............................................................................................................. 6 Improvements ........................................................................................................ 6 LOC Issuer ............................................................................................................. 7 Leasehold Estate .................................................................................................... 7 Leasehold Owner ................................................................................................... 7 Master Design Review Covenants ......................................................................... 7 Member .................................................................................................................. 7 Membership ........................................................................................................... 7 Mortgagee ............................................................................................................. -7 Municipal Code ...................................................................................................... 7 .. Mortgage ................................................................................................................ 7 .. Owner ..................................................................................................................... 7 Outdoor Pet ............................................................................................................ 7 .. ... . Page: 3 of 75 05/08/2002 01.134 a J Fisher Eagle, GO 135 .. 11 2.53 2.54 2.55 2.56 2.57 2.58 2.59 2.60 2.6 1 2.62 2.63 2.64 2.65 2.66 2.67 2.68 2.69 2.70 2.71 2.72 2.73 2.74 2.75 2.76 2.77 2.78 2.79 2.80 2.81 ....... .. _.-_ TABLE OF CONTENTS (continued) e' ........................................................................................................................ 8 Permittee ................................................................................................................ 8 Person ..................................................................................................................... 8 Prior Tax Year ........................................................................................................ 8 Property .................................................................................................................. o~at~ons Tax ................................................................................. Quorum .................................................................................................................. 8 Real Estate Transfer ............................................................................................... 8 Real.Estate Transfer Fee ......................................................................................... 8 Real Estate Transfer Fee Rate ................................................................................ 9 Real Property Transfer Tax .................................................................................... 9 Reserve Fund .......................................................................................................... 9 Residential Unit ................................................ : .................................................... 9 Retail Sales Fee ....................................................................................................... 9 Retail Sales Fee Rate ............................................................................................. 9 Rules ...................................................................................................................... 9 Sales Price .............................................................................................................. 9 Sales Tax ................................................................................................................. 9 Service Distnct ....................................................................................................... 9 Special Assessment .............................................................................................. 1.0 Special Declarant Rights ...................................................................................... 10 Specific Assessment ............................................................................................. 10 Supplemental Association .................................................................................... 10 Supplemental Declaration .................................................................................... 10 Taking .................................................................................................................. 10 Tax Year ............................................................................................................... 10 Records .................................................................................................................. 9 .. .. Taxable Transaction ............................................................................................. 10 The Village (at Avon) .......................................................................................... 10 ............. ._ ............ 05/08/2002 01 : 13F iii J Fisher Eagle. GO 135 R 375.80 D 0.88 TABLE OF CONTENTS (continued) 2.83 2.84 2.85 2.86 2.87 Article 3 3.1 3.2 3.3 Article 4 4.1. 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 Article 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 .. .................................................................................................................... ............................................................................................... ............................................................................................................ Total Actual Value 11 Transferee 11 Unit ....................................................................................................................... 11 Use Tax ................................................................................................................ 1 ~ildlife ~it~gation PI ...................................................................................... 1 CREATION OF THE COM~TY ................................................................ 11 Creation 11 12 Number of Units .................................................................................................. Allocations ............................................................................................................ 12 ................................................................................................................ DEVELOPMENT OF THE PROPERTY ...........-............_................... ................ 12 Declarant’s Development Rights ......................................................................... 12 Deed Restrictions .............................. ...........................I. 13 Supplemental Declarations .................................................................................. 14 ...................................... Other Covenants ................................................................................................... 14 Governmental Interests 14 Declarant’s.Obligation to Construct Common Elements .................................... 14 Common Elements that May Be Gonstructed by the Company .......................... 14 Common Elements Inventory .............................................................................. 15 Subdivision by Owners ........................................................................................ 15 EASEMENTS 17 Easement for Use, Access and-Enjoyment in and to the Common Elements ...... 17 Easements for Encroachment of Common Elements ........................................... 18 Easements Benefiting Declarant .......................................................................... 18 Right of Entry ...................................................................................................... 19 Easements for Drainage and Flood Control ......................................................... 19 Additional Easements .......................................................................................... 19 ........................................................................................ Declarant’s Right to Construct Common Elements ............................................. 14 ...................................................................................................... Easements for Utilities ......................................................................................... 18 ... .. ~ ..... ... 7958 13 Page: 5 of 75 05/08/2002 01:13F 35 R 375.BB D 0.00 iv TABLE OF CONTENTS (continued) 5.8 Article 6 6.1 6.2 6.3 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.1 1 7.12 7.13 Article 8 8.1 8.2 8.3 8.4 8.5 8.4 8.7 8.8 8.9 - ._ . ents ................................................................................... 2 SPECIAL DECLARANT RIGNTS ..................................................................... 20 Special Declarant Rights ...................................................................................... 20 Transfer of Special Declarant Rights ................................................................... 20 Models and Offices .............................................................................................. 2 ANY ................................................................................................. 2 Function of Company, Generally ........................................................................ -21 ... Property -Wide Matters ........................................................................................ -21 Additional Permissive Functions of the Company .............................................. 22 Membership ......................................................................................................... -23 Authorized Representative ................................................................................... 24 Majority Approval ................................................................................................ 24 &oar$ of Directors ................................................................................................ 25 Remgval of Directors .......................................................................................... -25 .Delivery of Property to Company ........................................................................ 25 Powers ................................................................................................................. -25 ment ......................................................................................................... 27 CB oard Authority ................................................................................................... 28 Annexation and-DeveIopment AgreeGeat ........................................................... 28 FR\JANCIAL lvlATTERS, BUDGET AND ASSESSMENTS ............................ 2'8: .I . .. . *General Financial Matters; Budget ..................................................................... -28 Matters Pertaining to Actual Value ...................................................................... 30 Creation of Assessments ...................................................................................... 32 Common Assessments ......................................................................................... 32 Special Assessments ............................................................................................ 34 Specific Assessments ........................................................................................... 34 Specific Assessment for Wildlife Mitigation ....................................................... 35 Commencement of Assessments .......................................................................... 35 Pre-Construction Discount for Common and Special Assessments .................... 36 ... . ... -__ .-- . Page: 6 of 75 1 1 05/08/2002 01:13E V R 375.00 D 0.00 TABLE OF CONTENTS (continued) 795813 ! Page: 7 of 75 05/08/2002 01:13F e icle 9 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 Article 10 10.1 10.2 FEES 3 .................................................................................................................... Creation of Fees ................................................................................................... 36 Accommodations/Lodging Fee ............................................................................ 36 Real Estate Transfer Fee ...................................................................................... 37 Retail Sales Fee .................................................................................................... 37 Establis~ent of ates ............................................................................ 3 Assignment ofthe Fees to the Service District .................................................... 39 Fee Records and Audits ....................................................................................... 39 Waiver of Fees ..................................................................................................... 40 Discontinuation of the Fees ENFORCEk&NT OF ASSESSMENTS AND FEES ......................................... 41 .................................................................................. 40 . 10.3 10.4 10.5 10.6 10.7 10.8, 10.9 Article 11 11.1 11.2 11.3 11.4 11.5 Article 12 12.1 12.2 __ Notice of Leasehold Estates ................................................................................. 41 Payment of Assessments and Fee.s ....................................................................... 41 Delinquen.cy Notice .............................................................................................. 42 Acceleration ......................................................................................................... 42 Lien for Assessments and Fees ............................................................................ 42 Enforcement of Assessments and Fees ................................................................. 42 Reallocation ......................................................................................................... 43 Disputes and Records ........................................................................................... 43 Certifiqate ............................................................................................................ :44 MAINTENNCE ................................................................................................. 448 Company’s Responsibilities ................................................................................ 44 Owner’s Responsibility ........................................................................................ 45 . 0. Maintenance Standard .......................................................................................... 45 Security ................................................................................................................ 45 Party Structures .................................................................................................... 45 USE RESTRICTIONS ......................................................................................... 46 Mineral Operations .............................................................................................. 46 Unsightly or Unkempt Conditions ....................................................................... 46 . ._ .. - ._ . - .... TABLE OF CONTENTS (continued) 2.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.1 1 12.12 12.13 12.14 12.15 12.16 12.17 12.18 Article 13 13.1 13.2 13.3 Article 1-4 14.1 14.2 Article 15 15.1 15.2 Article 16 16.1 16.2 uiet Enjoyme~t ................ ; ................................................................................. 46 Wetlands, Lakes and Other Water Bodies ........................................................... 46 Firearms, Fireworks and Explosives .................................................................... 47 Hunting ................................................................................................................ 47 No ~arass~ent of ~ii~li€e .................................................................................. azardous Activities ...................................................................................... Laws and Ordinances ........................................................................................... 47 Storage of Recreational Vehicles ......................................................................... 47 Use of Recreational Vehicles ............................................................................... 47 Trash Containers and Refuse ............................................................................... 48 Clotheslines ......................................................................................................... :48~ Pets ....................................................................................................................... 48- Lights and Sounds ................................................................................................ 48 Variances and Rezonings ..................................................................................... 48 Exception for Construction ............. ; .................................................................... 48 Declmant’s Exemption ......................................................................................... 48 INSURANCE, DAMAGE AND TAKINGS- ....................................................... 49 Company’s Insurance ........................................................................................... 49 Damage and Destruction ...................................................................................... 51 Takings ................................................................................................................. 52 . ... .............. -53 .. .. MO~~~AG~E~-~~C~I~~~ .;... ... .T ................................................................... No Priority ........................................................................................................... 53 Notice to Mortgagees ........................................................................................... 53 CONVEYANCING AND ENCUMBRANCING ............................................... 54 Units ..................................................................................................................... 54 Conmon Elements ............................................................................................... 54 AMENDMENT .................................................................................................... 54 Required Votes ..................................................................................................... 54 Amending Documents ......................................................................................... 55 ..... ._ ..... .......... Q5/08/2002 01 : 139Vii Sara J Fisher Eagle. CO 135 R 375.00 D 0.80 TABLE OF CONTENTS (continued) 16.3 ees ...................................................................... 56 GENERAL PROVISIONS .................................................................................. 56 17.1 Permittees Bound ................................................................................................. 56 17.2 Duration and Termination .................................................................................... 56 Article 17 17.3 Use of the Trade Name “The ~illag~ (at Avon)” ................................................ 56 17.4 C~~pli~ce; ght of Action ............................................................................... 57 1 7.5 Attorney Fees ........................................................................................................ 57 17.6 Indemnity ............................................................................................................. 57 17.7 Severability .......................................................................................................... 57 17.8 Governing Law .................................................................................................... 58 17.9 Captions ............................................................................................................... 58 17.10 Notices ................................................................................................................. 58 17.1 1 . Colorado Common Interest Ownership Act ......................................................... 58 .......... .... ......... .... .. .... -- 7950 13 Page: 9 of 75 05/08/2002 01:13F 35 R 375.00 D 0.00 ... Vlll DECLARATION OF COVENANTS FOR THE VILLAGE (AT AVON) M~~~-US~ AREAS TION OF ~OVE~~TS F claration”~ is made by Traer Creek LLC, a ~olorado li~ite SE liabili~ company, with the consent of EMD Limited Liability Company, a Colorado limited liability company, as of May 8,2002. ARTICLE 1 ,1 ~a~ital~zed Terms. ~api~lize in Article 2 below. 1.2 Purpose. This Declaration is executed to impose upon the Property mutually beneficial restrictions under a general plan of improvement fog the benefit of the Owners and to establish a flexible and reasonable procedure for the overall development, administration, maintenance and preservation of the Property. 1.3 ConsentinP Owner. EMD Limited Liability Company, a Colorado limited liability company, is the Owner of the portion of the Property dksr;ribed+ as Tract M on Exhibit-A of this Declmatibn. By execution of this Declaration where indicated below, EMD. Limited Lictbility Company consents to all of the covenants, CoQditions, restrictions, reservations? easementsad other provisions set forth in this Declaration. 1.4 Declaration. Declarant and EMIl Limited Liability Company, for themselves and their respective successors and assigns, hereby declare that all of the Property shall, fiom and afier the date hereof, constitute a planned community under the Act and shall be owned, held, conveyed, encumbered, leased, improved, used, occupied and enjoyed subject to the covenants, conditions, restrictions, reservations; egtsemgnts and other provisions set fo@h in this Declaration in hrtherance of, and the same shall constitute, a general plan for the subdivision, ownership, improvement, sale, use andoccupancy of the Property and to enhance the value, desirability and attractiveness of the Property. This Declaration shall: (i) run with the Property at law and as an equitable servitude; (ii) bind any Person having or acquiring any right, title or interest in any portion of the Property; (iii) inure to the benefit of and be binding upon every part of the Property and every interest therein; and (iv)inure to the benefit of and be binding upon Declarant and its successors in interest and assigns, each Owner and its heirs, successors in interest and assigns, &d the Company and its successors in interest. ARTICLE 2 DEFINITIONS The following terns shall have the meanings set forth below when used herein: - - __ - -__ - _- __ - - - - - - - _. -_ . 7958 13 Page: 10 of 75 05/08/2002 01:13F 5Ga J Fisher Eagle, CO 135 R 375.00 D 0.00 1 2.1 Accommodations/Lodging Room: Any room, group of rooms or other acco~odation in any hotel, lodge, condom^^, condominium unit, ap~ent-hotel, bed and breakfast, motel, guesthouse or any other similar facility that is rented, let or shed to a user thereof in a manner that is subject to the Public Acco~odations Tax or would be subject to the for any waiver of such tax the Town may make pursuant to the Annexation and Development Agreement and, in addition, any other similar accommodation designated by the Company from time to time as an AccomodatiodLodging Room. If the Town stops levying the Public Accomodations Tax, the term ‘‘AccommodationslLodging Room” shall mean any room, group of rooms or other accommodation in any hotel, lodge, condominium, condominium unit, apartment-hotel? bed and breakfast, motel, guesthouse other similar facility that is rented, let or furnished to a user thereof in a manner that woul been subject to the version of the Public Acco~odations Tax last in effect (but for any waiver of such tax the Town may have been making pursuant to the Annexation and Development Agreement) and, in addition, any other similar accommodation designated by the Company fiom time to time as an Accomnodationkodging Room. ublic Acco~odations Tax 2.2 AccommodationsLodgin~ Fee: The Fee described in Section 9.2. 2.3 2.4 Accornmodations/LodFinz Fee Rate: Is defined in Section 9.5(a). &t: The Colorado Common Interest Ownership Act, codified at Colo. Rev. Stat. 0 38-33.3-101 et sea, as the same has been and may hereafter be amended from time to time, and any statute which fiom time to time may replace the same. 2.5 Actual Value: For any Tax Year? the actual value of each Unit (including the Improvements thereon) from time to time, according to the most recent notice of valuation (however denominated under applicable law) for such Unit which is issued by Eagle County or any other pertinent governmental authority in connection with the levying of ad vdorern real‘ property taxes. The Actual ‘Value for any Tax Year‘ shalP mean the final determination of such actual value, after accounting for any successful protests of valuation, adjustments based on ongoing construction of Improvements, or other modifications to the initial notice of valuation delivered pursuant to C.R.S. 5 39-5-121 (or any successor provision of law). If a Unit is not separately taxed but instead is contained within and part of a larger tax parcel or combination of tax parcels, the Unit’s Actual Value shall be determined by allocating to the Unit a portion of tlw actual value of the larger tax parcel or parcels, which allocation shall be determined by the Company. In determining that allocation, the Company shall give consideration to the relative land area in the Unit and in the larger tax parcel or parcels, and the relative floor area within any Improvements on the Unit and on the larger tax parcel or parcels. Allocations so made by the Company may not be contested and shall be binding upon all affected Owners unless the same are materially inconsistent with the Company’s ordinary practices from time to time. In the event that there is ever any cessation of the levying of ad valorem real property taxes under Colorado law, or the methodology for levying real property taxes is changed so that separate determinations of the actual value of separate tax parcels are no longer applicable, the Company may provide for an alternate method of determining the Actual Value of each Unit or other alternate means for establishing the Common Allocation for each Unit. -- -I_ - ___ ___ - 795(913 ’ Page: 11 of 75 , 85/08/2002 01:13P Sara J Fisher Eagle, CO 135 R 375.80 D 0.00 2 2.6 Additional Lands:_ The following real property: (a) all portions of The Village (at Avon) not subject to this Declaration from time to time (such portions of the Additional Lands as of the date this Declaration is originally Recorded are desc~ibe~ on Exhibit B attached hereto); (b) Lots 2,3,4 and 5, McGrady Acres SubdivisiQn, Co State of Colorado; and (c) any other real property not subject to this Declaration. 2.7 Annexation ahd Develonment Agreement: The Annexation and Development Agreement concerning The Village (at Avon) by and between the Town and EMD Limited Liability Company, PVRT NOTT I LLC, PVRT NOTT I1 LLC and PVRT NOTT I11 LLC that is dated as of October 13, 1998, and was Recorded on November 25, 1998, at Reception No. 677743, as amended from time to the. 2.8 Articles of ~co~oration or Articles: e Articles of Iiico~or~tion of Company which have been or will be filed with the Secretary of State of the State of Colorado, as amended from time to time. 2.9 Assessment: An assessment, which may be a Common Assessment, a Special Assessment or a Specifiq Assessment, that is levied by the Company on one or more Units pursuant to the terms,of thisTDeclaration. 2. I0 2.1 1 Audit: Is defined in Section 9.6. Authorized 'Remesentative: A natural person who is appointed by an Owner, pursuant to Section 7.5, as a proxy, attorney-in-fact or authorized representative to vote on behalf of such Owner in matters coming before the Company. 2.12 2.13 Board of Directors or Board: The Board of Directors of the company Bylaws: The Bylaws of the Company, as amended fiom time to time. 2.14 Commercial Comuany: The Village (at Avon) Commercial Public Improvement Company, a Cobrado nonprofit corporation established pursuant to <the Commercial Declaration. 2.1 5 Commerciak l[)echration. The Declaration of Covenants for The Village (at Avon) Commercial Areas that is Recorded on or about the same day as this Declaration and covers a portion of The Village (at Avon) not covered by this Declaration. 2.16 Commercial Unit: Any developed Unit that is not a Residential Unit. A multi-family apartment project located on a single lot and containing only rental apartments that may not be separately conveyed as individual Units constitutes one Commercial Unit. 2. I7 Common Allocation: For each Fiscal Year, a fraction determined for each Unit, the numerator of which is the Actual Value attributable to such Unit for the current Tax Year (as determined in the Prior Tax Year), and the denominator of which is the Total Actual Value for the current Tax Year (again, as determined in the Prior Tax Year). The Common computed for the various Units shall be converted to a percentage by the - __ __ 7958 13 Page: 12 of 75 05/0)8/2002 01:13F ~ .a 3 Fisher Eagle, GO 135 R 375.00 D 8.80 3 Company, which percentages may be rounded by the Company in accordance with its ordinary practices adopted from time to time, provided the rounding methodology is applied in a materially uniform and consistent manner for all of the Units. 2.18 Co~on Assessment: An Assessment levied on all Units subject to assessment to fund the Common Expenses as more particularly described in Section 8.4. 2.19 Common Elements: All property or possessory interests therein (and, in the case of real property, the Improvements thereon) within the Property owned by the Company pursuant to this Declaration for the benefit, use or enjoyment of the Owners. 2.20 Co~on Expenses: Except for ose costs and expenses expressly excluded below, all costs, expenses and ~n~cial l~abilities inc~ed by the Co~pany pursu~t to this Declaration or the Bylaws, including, without limitation: all costs of operating, managing, maintaining, replacing or restoring the Comon Elements; taxes on the Common Elements; general administrative costs incurred by the Company, including any administrative costs incurred in levying and collecting Assessments; and contributions to the Reserve Fund. Common Expenses shall not include: (a) costs or expenses to be funded by or payable through the levying of Specific Assessments; or (b) administrative costs incurred by the Company in levying and collecting Fees. 2.21 ComDanv: The Village (at Avon) Mixed-Use Public Improvement -Company, a Colorado nonprofit corporation. 2.22 Consideration: With respect to. any Real Estate Transfer, the actual money paid andlor value of the property delivered, or contracted to be paid or delivered, in consideration for the Real -Estate Transfer, including the amount of any lien, Mortgage, contract indebtedness or other encumbrance, either given to secure the purchase price (or any part thereof) or remaining unpaid on the subject Unit. at the time of the Real Estate Transfer; provided, however, that with respect to any Real Estate Transfer in-the form of a transfer of any possessory interest in a Unit without- the passing of legal title, the Consideration for such Real Estate Transfer shall not exceed the am0 of consideration the Town would attribute to such Real Estate Transfer according to the enfotcement -practices and methodologies being used by the Town pursuant to the Real Property Transfer Tax at the time of such Real Estate Transfer; additionally provided that if the Town has no enforcement practices or methodologies for determining the Consideration for a Real Estate Transfer in the ’form of a transfer of any possessory interest in a Unit without the passing of legal title, then the Company may use any reasonable means for determining such Consideration. The term “Consideration” does not include the amount of any outstanding lien or encumbrance in favor of the United States, the State of Colorado, the Town, any special district or any other municipal or quasi-governmental entity, corporation or district for taxes, special benefits or improvements. 2.23 Declarant: Traer Creek LLC, a Colorado limited liability company, or any successor in interest or transferee who takes title to any portion of the Property for the purpose of development and/or sale and who is designated as the Declarant in a Recorded instrument executed by: (a) the immediately preceding Declarant in the case of total transfer of the . ____ _- .--- 7958 13 Page: 13 of 75 05/08/2002 01:13F 4 tra J Fisher Eagle, CO 135 R 375.00 D 0.00 Declarant status; or (b) the current Declarant in the case of a partial transfer of the Declarant status, it being the intent hereof that the status of Declarant may be jointly held more than one Person pursuant to any terms and conditions that the Declarant such jointly held status may impose. Transfers of the subject to Section 6.2 below. 2.24 Declarant Control Period: The period beginning on the date the Company is formed and ending on the first to occur of: (i) 60 days after 75% of the maximum number of Units that are permitted to be established on the Property pursuant to the PUD or any other applicable zoning or governmental approvals obtained &om time to time have been conveyed to Owners other than Declarant (subject to the right of the existing Declarant to ~~sf~r the eclarant status as described in Section 2.23); (ii) six years after the last conveyance of a Unit by eclarant in the or din^ course of business; (Gi)20 years after the date on which this Declaration is Recorded; or (iv) with the prior written consent of the Service District, the date on which Declarant, otherwise in its sole discretion, voluntarily terminates the Declarant Control Period pursuant to a Recorded statement of termination; provided, however, that in this last event, Declarmt may require that, for the balance of what would have been the Dedarant Control Period had Declarant not terminated the same, certain actions of the Company or the Board; as described in a Recorded instrument executed by Dcclarant, be approved by Declarant before they become effective. If Declarant agrees to a sde transaction that will result in a termination of the Declarant Control Period pursuant to clause (i) above, Declarant shall provide written notice of such sale to the Service District. *During the Declarant Control Period, Declarmt shall have the right to appoint and remove the Directors and the officers of the Company to the extent permitted by the Act. 2.25 Declaration: This Declaration, as amended or supplemented from time to time. 2.26 Delinquency Costs: Is defined in Section 10.2. 2.27 Design Review Board: The Village (at Avon) Design Review Board or any other supplemental design review board, established .pursuant to the Master Design Review Covenants. 2.28 Design Review Guidelines: Any applicable design review guidelines adopted and enforced by the Design Review Board, as such guidelines may be amended from time to time. 2.29 Developer: Any Person who, in the ordinary course of such Person’s business, purchases one or more Units for the purpose of constructing Improvements for later sale or rental or purchases one or more Units for fbrther subdivision into additional Units, development, leasing and/or resale. 2.30 Development Period: The period of time during which Declarant is entitled to exercise Development Rights and the other Special Declarant Rights. The Development Period shall commence upon the Recording of this Declaration and shall terminate .- 7950 13 Page: 14 of 75 05/08/2082 01:13F 5 fa J Fisher Eagle, CO 135 R 375.00 D 0.B0 on the 50th anniversary of such Recording uniess reinstated or extended by agreement between Declarant and the Company; provided, however, that the exercise of any Speci Rights pursuant to such agreement shall be subject to such terms as the Company m such agreement, Declarant may terminate the Development Period at any time by notarized ins~ent executed by Declarant stating that the Development Period is t 2.31 Develomnent Rights: The rights reserved by Declarant pursuant to Section 4.1. 2.32 Director: A member of the Board of Directors. 2.33 ~ligible Holder: holder, i~ure~ or ortgage who provides a written request for notices to the Company, stating the name an address of such holder, insurer or guarantor and the street address, or, if not available, other sufficient information, of the Unit to which its Mortgage relates. 2.34 Fee Assignment Agreement: Is defmed in Section 9.7. 2.35 Fee Records: Is defined in Section 9.6. 2.36 &: Collectively, the Accommodations/Lodging Fee, the Real Estate Transfer Fee and the Retail Sales Fee. Use of the word “Fee” refers to any one of the Fees. 2.37 Final Plat: A final plat subdividing any portion of the Property approved by the Town pursuant to Section 16.24 of the Town’s Municipal Code or any amended or replacement version thereof in effect from time to time. 2.38 Financine. District: The Village Metropolitan District, a special district established pursuant to Colo. Rev. Stat. 3 32-1-201 et seq. 2.39 First Mortgage: A Mortgage that is Recorded and has priority of record over all other Recorded liens except those liens made superior by statute (s, gdneral ad valorem tax liens and special assessments and mechanics’ liens). 2.40 Fiscal Year: The fiscal year of the Company set from time to time by resolution of the Board. 2.41 Immovements: All structures, improvements and appurtenances on or to real property of every type and kind including, without limitation, buildings, outbuildings, fixtures, billboards, utilities, patios, tennis courts, swimming pools, garages, doghouses, mailboxes, aerials, antennas, facilities associated with regular or cable or satellite television, roads, driveways, parking areas, fences, screening walls, retaining walls, stairs, decks, landscaping, grading, drainage facilities, windbreaks, plantings, planted trees and slmbs, poles, signs, exterior air conditioning units, water softener fixtures or equipment, pumps, wells, tanks, solar collectors, reservoirs, pipes, lines, meters, towers and other facilities used in connection with water, sewer, gas, electricity, solar energy, telephone or other utilities or 75x50 13 Page: 15 of 75 05/08/2002 01:lJF ira J Fisher Eagle, CO 135 R 375.00 D 0.00 6 telecommunications facilities, as well as any construction activities necessary to construct any such items. 05/08/2002 01 : 13F 2.42 LOC Issuer: The issuer of any letter of credit or similar ~nst~ment for urpose of providing ~iq~~ty support andor credit e~~cement in support of any revenue bonds issued by the Service District or the Financing District that will be repaid, whether directly, indirectly, in whole or in part, with any of the revenues generated by any of the Fees. The term “LOC Issuer” includes, without limitation, BNP Paribas, San Francisco Branch, to the extent it satisfies the preceding definition. 2.43 Leasehold Estate: The interest in a Unit created by a lease or sublease (including, out l~~tion, any ground lease lessee or sublessee under such lease or sublease; vided, however, that the renting or letting of an AccommodationsLodging Room to a customer or guest shall not create a “Leasehold Estate” as that term is used in this Declaration. retail space lease) and held and owned by 2.44 Leasehold Owner: The lessee or sublessee, as applicable, under a lease or sublease creating a Leasehold Estate in a Unit. 2.45 Master Design Review Covenants: The Declaration of Master Design Review Covenants for The Village (at Avon) that is or will be Recorded on The Village (at Avon), as such covenants may be amended from time to time. 2.46 Member: A Person who is a member of the Company pursuant to Section 7.4. 2.47 2.48 Membership: The membership in the Company held by a Member. MortPacre: An unpaid or outstanding mortgage, deed of trust, deed to secure debt or any other form of security instrument encumbering the Property or a portion thereof. 2.49 2.50 Mortgaw: A beneficiary or holder of a Mortgage. Municipal Code: The Avon Municipal Code, a codification of the general ordinances of the Town, in effect from time to time. 2.51 Owner: A Person or Persons, including Declarant or any Developer, owning fee simple title of record to any Unit from time to time. The term “Owner” shall include a seller under an executory contract for sale and exclude a buyer thereunder and shall include a landlord under a lease for a Unit and exclude a tenant thereunder. 2.52 Outdoor Pet: Any animal that is, with any regularity, kept or permitted outside of a fully enclosed stnicture. 2.53 m: The Village (at Avon) Planned Unit Development Guide as approved by the Town, including all tables, plans, exhibits and maps attached to or incorporated into such guide, Recorded on November 25, 1998, at Reception No. 677744, as such guide may be supplemented, amended and/or restated from time to time. 2.54 Permittee: A Person, other than an Owner, who is a tenant or occup a Unit or a Person who is an agent, employee, custo~er, contractor, licensee, guest or invitee of an Owner or of such tenant or occupant. 2.55 Person: A natural person, corporation, partnership, limited liability company, trust, municipality, special district, or other legal entity, whether public or private. 2.56 Prior Tax Year: The Tax Year that ~ediately precedes any given Fiscal Year. In the event the Tax Year and the Fiscal Year are ever dete~ined on the basis of disp~ate Year that expires prior to the commencement of the given Fiscal Year. 2-month periods, then the Prior Tax Year for any given Fiscal Year shall be the last 2.57 Property: All of the real property described on Exhibit A attached to this Declaration, the appurtenances thereto, and all Improvements now in place or hereafter constructed thereon. 2.58 Public Accommodations Tax: The bbPublic Accommodations Tax” (or any equivalent tax no matter how described in the Municipal Code) levied by the Town pursuant ta Chapter: 3.28 of the Municipal Code, as such chapter may be amended, restated or replaced from time to time. 2.59 Quorum: With respect to a meeting of the Members or the Board, the percentage or number of the Members or Board that constitutes a quorum pursuant to the applicable provisions of the Bylaws. 2.60 Real Estate Transfer: Any grant, conveyance, transfer or alienation of a Unit or the controlling interest in the ownership of a Unit or the grant, conveyance or transfer of any possessory interest in a Unit without the passing of legal title that is subject to the Real Property Transfer Tax or would be subject to the Real Property Transfer Tax but for any waiver of the Real Property Transfer Tax the Town may make pursuant to the Annexation arid Development Agreement and, in addition, any other transfer of an interest in or with respect to a, Unit that the Company designates from time to time as a Real Estate Transfer. If the Tom stops levying the Real Property Transfer Tax, the term “Real Estate Transfer” shall mean any grant, conveyance, transfer or alienation of a Unit or the controlling interest in the ownership of a Unit or the grant, conveyance or transfer of any a possessory interest in a Unit without the passing of legal title that would have been subject to the version of the Real Property Transfer Tax last in effect (but for any waiver of the Real Property Transfer Tax the Town may have been making pursuant to the Annexation and Development Agreement) and, in addition, any other transfer of an interest in or with respect to a Unit that the Company designates from time to time as a Real Estate Transfer. 2.61 Real Estate Transfer Fee: The Fee described in Section 9.3. 2.62 Real Estate Transfer Fee Rate: Is defined in Section 9.5(b). - _- -_ __ Page: 17 of 75 05/0a1200z 01:13F 135 R 375.00 D 0.08 ;ara J Fisher Eagle, CO 2.63 Real Property Transfer Tax: The “Real Property Transfer Tax” (or any equivalent tax no matter how described in the ~~cipal Code) levied by the Town pursuant to “The Town of Avon Real Property Transfer Tax Ordinance” codified as Chapter 3.12 of . Records: The official real property records maintained by the clerk and recorder of Eagle County, Colorado; the phrases “to Record” and “Recording” mean, respectively, to file or filing for recording in the Records, and the phrases “of Record” and “Recorded” mean having been recorded in the Records. unicipal Code, as such ordinance may be amended, restated or replaced from time to time. 2.64 2-55 Reserve Fund: A reserve lished and maintaine Co~on ~lements ~ompany for the periodic major repair or rep budgeted and ~pl~ed Co~on Expenses ~c~ed by the Co~pany from time to time. 2.66 Residential Unit: Any developed Unit on which there is located or that is comprised of one or more rooms intended for residential occupancy by one family or group of people living independently from any other family or group of people and having not more than one indoor cooking facility. A residential rental apartment that cannot be separately owned, conveyed or transferred as a Unit is not a Residential Unit for the purposes of this Declaration, Retail Sales Fee: The Fee described in Section 9.4. Retail Sales Fee Rate: Is defined in Section 9.5(c). Rules: The rules and regdatio- use Qf the Prop& adopted from time to time by the Company. The Rules shall be binding upon all Owners and their Permittees. 2.67 2.68 2.69 2.70 Sales Price: With respect to a Taxable Transaction, the “purchase price” to the purchaser in the Taxable Transaction as such term is defined in Chapter 3.08 of the Municipal Code, as such chapter is mended, restated or replaced from time to time. If the Town stops levying the Sales Tax or amends Chapter 5.08 or any replacement thereof in such a way that the term “purchase price” as it relates to the Sales Tax is no longer defined, then the term “Sales Price” shall mean the “purchase price” to the purchaser in a Taxable Transaction as such term was defined in the last version of Chapter 3.08 of the Municipal Code (or any replacement version thereof) in effect or in which the term “purchase price” was defined. 2.71 Sales Tax: The tax levied by the Town pursuant to Chapter 3.08 of the Municipal Code (including, without limitation, any Use Tax under such chapter), as such chapter may be amended, restated or replaced fkom time to time. 2.72 Service District: Traer Creek Metropolitan District, a special district established pursuant to Colo. Rev. Stat. 8 32-1-201 et seq. 2.73 Special Assessment: An Assessment levied in accordance with Section 8.5. - .. - - 05/08/2002 01:13F 9 b J Fisher Eagle, GO 135 R 375.00 D 0.00 2.74 Special Declarant Ri&ts: The rights of Declarant set forth in Article 6. 2.75 Suecific Assessment: An Assessment levied in accord~ce wit Section 8.6. 276 Supplemental Association: An association established pursuant to a Supplemental Declaration in which all of the Owners of Units subject to such Supplemental Declaration are members by virtue of being the Owners of such Units. 2.77 Supplemental Declaration: Any subsequent declaration of cove~~ts, conditions and restrictions Recorded against a specified portion of the Property that provides for the establis~ent of an owners association for the management, mainten~ce a~inistration of the Units and any co~on elements allocated to such Units comprisi portion of the Property subject to such declaration. Without limiting the generality of the foregoing, any “declaration,” as such term is defined in the Act, affecting a portion of the Property shall be considered a Supplemental Declaration. Neither the Commercial Declaration nor the Master Design Review Covenants is a Supplemental Declaration. 2.78 m: A taking by the exercise of eminent domain or conveyance in lieu thereof. 2.79 Tax Year: Any period of 12 months, or similar period established by law, for which an actual value and assessed valuation are establishedIfor and applicable to real property (pursuant to Articles 1 and 5 of Title 39 of the Colorado Kevised Statutes, or other applicable. or successor provisions of Colorado law) for purposes of levying ad valorem real,- property taxes for that same period. The Tax Year currently begins on January 1 of each year and ends on December 3 1 of each year. 2.80 Taxable Transaction: Any transaction by which a Person acquires for any consideration or uses within the Town any tangible personal pxoperty or service that is subject to the Sales Tax or would be subject to the”Sa1es Tax but for any waiver of such tax the Town may make pursuant to the Annexation and Development Agreement and, in addition, any other- transaction for, or the use of, any personal property or service that thC,.Company may designate from time to time as a Taxable Transaction. If the Town stops levying the Sales Tax generally, the term “Taxable Trabaction” shall mean any transaction by which a Person acquires for any consideration or uses within the Town any tangible personal property or service that would have been subject to the version of the Sales Tax last in effect (but for any waiver of such tax the Town may have been making pursuant to the Annexation and Development Agreement) and, in addition, any other transaction for, or the use of, any personal property or service that the Company may designate from time to time as a Taxable Transaction. 2.81 The Village (at Avon): The property included within the PUD. The Property is a part of The Village (at Avon). 2.82 Town: The Town of Avon, a municipal corporation of the State of -. Colorado. - - --__ - - 10 R 375.00 D 0.00 2.83 time. 2.84 eal Estate Transfer. Total Actual Value. The total Actual Value of all the Units from time to Transferee: Person that is the transferee of a Unit wi 2.85 m: A physical portion of the Property, whether developed with Improvements or undeveloped, that either is: (a) owned as a separate, legally established parcel or unit of real property; or (b) any separate, legally established parcel or unit of real property that may be legally transferred or conveyed without hrther subdivision or other similar approval from the Town. Without limiting the generality of the preceding sentence, the term Unit shall include any superblocks, plots, tracts, lots, pl~ng areas or similar portions of the Property that are described by the preceding sentence and that have not been further subdivided into smaller Units, though such subdivision into smaller Units is likely to occur in the future. Upon the subdivision of any existing Units into two or more Units, the Unit so subdivided shall no longer be recognized as one Unit for any purpose hereunder. Notwithstanding the foregoing, the term “Unit” shall not include any Common Elements owned in fee simple by the Company or any other “common elements” (as defilled in the Act) established under any Supplemental Declaration, or any propaty dedicated or otherwise conveyed to any government, special district or other quasi-govemmentaf entity for a public purpose. Any condominium unit within a legally established “condominium” (as defined in the Act) shall constitute a separate Unit under this Declaration. 2.86 Use Tax. Any tax, if any, imposed by the Town upon the purchase price paid for or the acquisition costs of any personal property brought within the Town for use (including, without limitation, construction materials brought within the Town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the Town). 2.87 Wildiife MitiPation Plan. The “Wildlife Mitigation Plan” attached as Exhibit D to the PUD, as such plan is amended from time to time. ARTICLE 3 CREATION OF THE COMMUNITY 3.1 Creation. Upon the Recording of this Declaration, the Property shall be a “planned ~~mm~nity” pursuant to the Act, and the name of the planned community shall be The Village (at Avon) Mixed-Use Areas. Upon the recording of an affidavit pursuant to the requirements of Section 38-33.3-116.3 of the Act, the planned community established by this Declaration will be a “large planned community” pursuant to the Act. The Property is located entirely within the Town. 3.2 Number of Units. Pursuant to the PUD, as of the date this Declaration is first Recorded, up to 2,400 Residential Units may be established within The Village (at Avon). In addition, pursuant to the PUD, up to 650,000 square feet of commercial space floor area may --- - ~ . __ 95/08/2082 01:13F I1 Sara J Fisher Eagle, GO 135 R 375.00 D 0.00 be constructed within The Village (at Avon). In order to allow for the creation of Commercial Units of not less than 150 square feet of floor area per Commercia~ Unit, Declarant reserves the right to create a maximum of 4,333 Commercial Units within the Property (as it may be e to incorporate all of The Village (at Avon)). Thus, pursuant to the PUD as it exists as of the date this Declaration is first Recorded, a maximum of 6,733 Units may be established in the Property (as it may be enlarged to incorporate all of The Village (at Avon)), and Declarant hereby reserves the right to establish such number of Units within the Property. If the Town, through any land use mechanism (including an amendment to the PUD), increases the maximum number of Residential Units or commercial space floor area that may be established or constructed within The Village (at Avon), then the maximum number of Units that may be established within the Property (as it may be enlarged to incorporate all of The Village (at Avon)) under this Declaration shall be autom~tically increased accordingly. * 3.3 Allocations. (a) Allocation of Votes. In all matters submitted to a vote of the Members, each Unit is allocated a percentage of the votes in the Company equal to the Common Allocation for such Unit in effect fiom time to time; provided, however, that no vote shall be exercised for any Unit owned by the Company. (b) Allocation of Common Expenses. Subject to Section 8.9, each Unit is allocated, and the Owner of the Unit is liable for, a percentage of the Common Expenses equal to such Unit’s Common Allocation in effect from time to time. All other costs and expenses of the Company are allocated among the Units as otherwise provided in this Declaration. ARTICLE 4 DEVELOPWNT OF THE PROPERTY 4.1 Declarant’s Development Rights. Declarant hereby reserves the following Development Rights for the duration of the Development Period: (a) Withdrawal of ProDertv. Declarant reserves and has the unilateral right to amend this Declaration to withdraw all or any portion of the Property from the coverage of this Declaration. If the portion of the Property withdrawn from the coverage of this Declaration is made subject to the Commercial Declaration upon such withdrawal, then the amendment to this Declaration effecting such withdrawal shall not require the consent of any Person other than the owner of the portion of the Property to be withdrawn, if other than Declarant. If the portion of the Property withdrawn from the coverage of this Declaration is not made subject to the Commercial Declaration upon such withdrawal, then the amendment to this Declaration effecting such withdrawal shall require the consent of the Service District and the owner of the portion of the Property to be withdrawn, if other than Declarant. If the portion of the Property to be withdrawn consists of all or a portion of the Common Elements, the Company shall consent to such withdrawal upon the request of Declarant. 05/08/2002 01:13F 12 .a J Fisher Eagle, CO 135 R 375.00 D 0.00 (b) Inclusion of Property. (i) Generally. Declarant reserves and has the rig e portion of the Ad~tional Lands to be included as part of the Property is owned by Declarant, no approval of such inclusion by any other Person shall be required. If the portion of the Additional Lands to be included as part of the Property is owned by a Person other than Declarant, the approval of the inclusion by such owner shall be required. No contiguity between the parcel to be included and the existing boundary of the Property shall be required. eclarat~on to include as part of the Property any of the Additio (ii) To Permit Residenti~ Use. Pursuant to the Commercial eclaration, no “residential use” as such term is defined in the Act is permitted within the property subject to the Commercial Declaration. If the owner of any property subject to the Comercia1 Declaration desires to use the property for a residential use, such owner may apply under the Commercial Declaration to cause the property to be withdrawn fkom the coverage of the Commercial Declaration (though the ability of the owner to have the property so withdrawn is limited by the terms of the Commercial. Declaration). In conjunction with such a withdrawal, if permitted, of property Erom the coverage of the Commercial Declaration, the owner thereof may petition Declsant to include the property as part of the Property, thereby making it subject to this Declaration. Without- limiting in any way the geneirality of Section 4.1(b)(i), if the owner of any property subject- to the- Commercial Declaration petitions Declarant to include such property as part of the Property undez this Declaration, Declarant has the right, in its absolute discretion and without any obligation, to amend this Declaration to effect such inclusion, and such amendment‘ shall not require the consent of the Board or any Owner. (c) Subdivision md Redatting. Declarant reserves the unilateral right to subdivide into additional Units, chqngq the bcmndary line of or resubdivide any Unit or other portion of the Property owned bgr: Declarant. No such subdivision or resubdivision of a Unit shall require an amendment to this Declaration. (d) Additional Units and Co*on Elements. Declarant reserves the unilateral right to create additional Units and Common Elements and convert any Unit or portion thereof into Common Elements, provided that the conversion of any Unit not owned by Declarant into Common Elements shall require the written consent of the Owner of the Unit. 4.2 Deed Restrictions. In conveying any Unit, if agreed to by the purchaser of such Unit, Declarant may impose by real covenants contained in the conveying instrument limitations on the amount of development that may occur on the Unit, including, without limitation, limitations on (a) the number of additiona1 Units into which the conveyed Unit may be subdivided; (b) the number of “Dwelling Units” (as such term is defined in the PUD) that may . - . . 05/08/2002 01 ; 13E ra J Fisher Eagle, CO 135 R 375.00 D 0.0@ 13 be developed on the Unit; and (c) the amount of “Commercial Space” (as such term is defined in the PUD) that may be developed on the Unit. 4.3 Supdemental Declarations. No , Supplemen~l Recorded against any Unit(s) without the written approval (which approval must be included as part of the Supplemental Declaration) of the Service District and, during the Development Period, Declarant. 4.4 Other Covenants. Without limiting the effect of Section4.3, during the Development Period, no Person other than Declarant shall Record any declaration of covenants, conditions and restrictions, declaration of condo mi^^ or similar instrument affecting any po~ion of the Property, including, ~thout limitation, any supple men^ Declaration, ~i~out prior review and written consent of Declarant and the Service District. Any attempted Recording without such consent shall result in such instrument being void and of no force and effect unless subsequently approved by a written consent signed by Declarant and the Service District and Recorded. 4.5 Governmental Interests. For so long as Declarant owns any of the Property, Declarant may designate sites within the Property for fire, police and utility facilities, public schools and parks, and other public or quasi-public facilities. Such a site may include Common Elements, in which case the Company shall take whatever action is required with- respect to such site to permit such use, including CoQveyanct: of the site, if so directed by Declarant. Such a site may include other property not owned by Declaant provided the Owner of such property consents. Subject to Declarant’s consent- during the Development Period, but otherwise within the discretion of the- Board, the Company may dedicate portions of the Common Elements to the Town or to any other local, state or federal governmental or quasi- governmental entity subject to such approval as may be required by Section 15.2. 4.6 Declarant’s Obligation to Construct Common Elements . There is no Common Element that Declarant is legally obligated to construct within the Property. 4.7 Deckant’s Rinht to Construct Common Elements. Without limiting Section4.6 and without creating any obligation on the part of Declarant to construct any Common Elements or Improvements thereon, Declasant shall have the right to construct any Common Elements or Improvements thereon, including, without limitation, the types of Common Elements listed in Section 4.8. 4.8 Common Elements that May Be Constructed by the Company. Set forth below is a general description of the type of any Common Element that may be constructed by, maintained by or operated by the Company (however, neither the Company nor Declarant shall have any obligation to construct, maintain or operate any such Common Element): Parking areas, streets, roads, walkways, sidewalks, trails, drives, malls, stairs, health care facilities, security systems, fire protection facilities, fire water systems, lights, signage, transportation systems including but not limited to gondola, tram, bus, automobile or rail systems and any facilities necessary or appropriate for the proper operation and maintenance 7950 13 Page: 23 of 75 05/08/2802 01 : 13F 14 a 3 Fisher Eagle, CO 135 R 375.00 D 0.00 of such systems, access road control gates, daycare facilities and such equipment as may be appropriate for use in connection therewith, swimming pools, ice rinks, skating ponds, clubhouses, foot and bicycle trails and related facilities, saunas and facilities, bob sledding and snow shoeing facilities, outdoor ente~~~ent and other recreational ~enities an equipment as may be appropriate for use in connection therewith, trash collection andor disposal facilities, animal control facilities, kennel facilities, satellite dishes, cable television equipment and related facilities, telephone systems, warehouses, central laundry facilities, a central communications center, mailbox structures, bus appurtenances, ponds, water tanks, drainage facilities, monuments, recreational areas, storage facilities for supplies and equipment, earth walls, retaining walls and other similar supports, ducts, shafts and flues, conduits, utility and service lines and systems including but not limited to water, sanitary sewer, gas, storm drainage, telephone, electricity, cable and/or satellite facilities, management offices, models, buildings, enviro~en~ monitoring equipment or facilities, all types of structures, facilities and improvements that the Service District and/or the Financing District may be empowered by law from time to time to construct, and such other buildings, facilities, structures and improvements 9s the Company may from time to time deem necessary or advisable. 4.9 Common Elements Inventow. The Company shall keep in its principal office and make reasonably available to all Owners, Owners’ agents, and prospective purchasers a complete legal description of all Common Elements. 4.10 Subdivision by Owners. (a) Reauirements. Any Unit may be subdivided or resubdivided only if the Owner of the affected Unit first secures the Company’s (and the*Declarant’s to the extent provided below) prior written approval of the subdivision or resubdivision. In connection with requesting such approval, the Owner shall be required to make all of the following submissions to the Company: (i) Evidence that the proposed .subdivision or resubdivision will comply with the PUD and all building codes, fire codes, zoning codes, master plans, subdivision regulations and other applicable ,dee& res@ictions and covenants, and rules, regulations and ordinances of the Town, and that the proposed subdivision or resubdivision does not violate the terms of any Mortgage encumbering the Unit; (ii) A proposed interim allocation and division of the Actual Value of the affected Unit between or among the portions thereof which will be established as or included within one or more separate Units pursuant to the subdivision or resubdivision (which allocation as approved or modified by the Board shall apply until the new Unit(s) to be created idare established as separate tax parcels and the Actual Values therefor are determined accordingly); (iii) A deposit against attorneys’ fees and costs that the Company and Declarant will incur in reviewing the proposed resubdivision, in an amount estimated by the Boasd; -____ __..___ Page: 24 of 75 05ma12002 01.13~ 15 I J Fisher Eagle, GO 135 R 375.00 D 0.00 (iv) Evidence that the subdivision or resubdivision will co~ply with any applicable provisions of the Design Review Guidelines, which evidence may be in the form of a letter or certificate of compli~ce from the Review Board; and (v) Such other inforpation as may be reasonably requested by the Board. (b) Auproval of Subdivision. The Board, on behalf of the Company, shall approve any application for a subdivision or resubdivision of a Unit properly made under this Section4.10 if the Board reasonably determines that (i) the re submissions have been made under Section 4.1 O(a), and (ii) the proposed subdivision or resubdivision in fact will comply with the PUD and all building codes, fire codes, zoning codes, master plans, subdivision regulations and other applicable deed restrictions and covenants, and rules, regulations and ordinances of the Town and will not violate the terms of any Mortgage encumbering the Unit, During the Declarant Development Period, any proposed subdivision or resubdivision of a Unit shall also require the written consent of Declarant, and any such approval by Declaant shall be binding upon the Company and be deemed to constitute Board approval as well. Declarant shall be bound to the same approval standards as are applicable to the Company under the foregoing provisions. (c) Costs. All costs and attorneys’ fees incurred by the Company and Declarant in connection with reviewing a proposed subdivision or resubdivision shall be the joint and several obligatian of the Owner(s) requesting approval of such subdivision or resubdivision, and shall be reimbursed prior or as a condition to any approval thereof. The Company shall collect therDeclarant’s costs and fees on behalf of the Declarant and remit the same to Declarant. If the Owner(s) requesting such subdivision or resubdivision approval fail ta reimburse the Company for such expenses, the expenses may be assessed against any and all Unit(s) of such Owner(s) as a Specific Assessment. No Liability of Comuany or Declaant. (d) Any review by the Company or Declarant of anyr proposed subdivision or resubdivision shall be undertaken solely for their own benefit, and neither the Company nor the Declarant shall have any obligation or liability to any Owner requesting approval of such subdivision or resubdivision, or any other Owner, for ensuring the technical adequacy of any such subdivision or resubdivision, or its compliance with applicable laws: In no case shall the Company or Declarant have any liability to any other Owner or Person for approving a subdivision or resubdivision under the foregoing provisions. (e) No Limitation of Declarant Rights. The provisions of this Section 4.10 shall not apply or be construed to limit Declarant’s rights under Section 4.1, 4.2, 6.1 or 6.2, or any other Declarant rights that might otherwise be affected. (0 No Limit on Design Review Board. The provisions of this Section 4.10 shall not be construed as limiting the authority or discretion of the Design __ 79581 3 Page: 25 of 75 05/08/2002 01:13F ~ ~ Bra J Fisher Eagle, CO 135 R 375.00 D 0.00 16 Review Board pursuant to the Master Design Review Covenants and the Design Review Guidelines. EASEMENTS 5.1 Easement for Use, Access and Enioyment in and to the Common Elements. Declarant hereby establishes and grants to each Owner a nonexclusive easement of use, access and enjoyment in and to the Common Elements. Any Owner may extend its right of use and enjoyment to its Permittees subject to reasonable regulation by the Company. Unless otherwise provided in a writing furnished to the Company by the Owner, an Owner who leases its Unit shall be deemed to have assigned all such rights to the lessee or lessees of such Unit. Without limiting the generality of the foregoing, Declarant hereby grants to each Owner a nonexclusive easement over and across all walkways and other pedestrian access-ways and all streets designated as Common Elements for the purpose of gaining pedestrian or vehicular access between and among the public streets and sidewalks adjoining or within the Property, other Common Elements and any Units. The easement established by this Section 5.1 shall -be appurtenant to and pass with the title to the Units and shall be subject to: (a) This Declaration and any other applicable covenants, including any applicable Supplemental Declaration; (b) Any restrictions or limitations contained in any deed conveying the Common Elements to the Company; (c) The righe of the Company to adopt RuIes regulating the use and enjoyment of the Common Elemwts; (d) The rightsof the Company to impose reasonable membership requirements and charge reasonable admission or other use fees for -the use of any recreational facility or other ameqity of any type situated within or on the Common Elements; (e) The right of thei‘(sompany to suspend the right of any Owner or such Owner’s Permittees to use any recreational facility or other amenity of any type situated within or on the Common Elements (i) for any period during which any charge against such Owner’s Unit remains delinquent, and (ii) for a period not to exceed 30 days for a single violation (or for a longer period in the case of any continuing violatioil) of this Declaration, the Bylaws or the Rules, after providing such notice and hearing as may be required by the Bylaws; (f) The right of the Company to permit use of any recreational facility or other amenity of any type situated within or on the Common Elements by members of the general public upon payment of use fees established by the Company, which fees the Company shall include as Company revenue in calculating the amount of Common Assessrnents necessary to satisfjr the Common Expenses of the Company; 75 05/08/2@02 01 : 13F 17 ara J Fisher Eagle, GO 135 R 375.00 D 0.0Q (g) The right of the Company to dedicate or transfer all or any part of the Common Elements, subject to Section 15.2 and such other approval require~ents as may be set forth in this Declaration or the Act; and (h) The right of the Company to mortgage, pledge or hypo~ecate any or all of the Common EIements as security for money borrowed or debts incurred, subject to the limitations of the Act and the approval requirements set forth in Section 15.2. 5.2 Easements for Encroachment of Common Elements. In the event that, as a result of the construction, reconstruction, shifting, settlement, restoration, rehabilitation, alteration or improvement of any Improvement located on the Common Elements or any po~ion thereof, any portion of any Common Elements now or hereafter is unintentionally and i out the actual knowledge of the Company made to encroach upon any Unit, Declarant hereby establishes and grants an easement for the continued existence and maintenance of such encroachment which will continue for so long as such encroachment exists and which will burden the Unit encroached upon and benefit the encroaching Common Element. In no event, however, will an easement for any such encroachment be deemed established or granted if such encroachment is materially detrimental to or interferes with thq reasonable use and enjoyment of the Unit(s), burdened by such encroachment or if such. encroachment occurred with the actual knowledge of the Company. 5.3 Easements Benefiting Declarmt. Declarant reserves such; easements over ss the Property, which easements will exist for the duration of the Development Period, as may be reasonably necessary for Declarant’s exercise of any Special Declarant Right, perfiimance of any of Declarant’s obligations hereunder, and the showing of the Property or any portion thereof to prospective purchasers or lessees, 5.4 Easements for Utilities, Declarant reserves for itself and its successors, assigns and designees, for the duration of the Development Period, and grants to the Company and its successors, assigns and designees, perpqtual non-exclusive easements upon, across, over and under all of the Property and any structure thereupon (but not through any structures) to the extent reasonably necessary for the purposes of monito~ng, replacing; repairing, maintaining and operating cable television systems, master televisicart antenna systems, and other devices for sending or receiving data and/or other electronic. signals, and all utilities, including, without limitation, water, sewer, stonnwater drainage, telephone, data transmission, gas and electricity, and for installing any of the foregoing on property which Declarant or the Company owns or within easements designated for such purposes on any Final Plat. The designees of Declarant and the Company for the purposes of such easement rights may include, without limitation, any governmental or quasi-governmental entity or utility company. The easement provided for in this Section 5.4 shall in no way affect, void, extinguish or modifl any other Recorded easement on the Property. Any damage to a Unit resulting from the exercise of the easement rights described in this Section 5.4 shall promptly be repaired by, and at the expense of, the Person exercising the easement. The exercise of such easements shall not extend to permitting entry into the structures on any Unit, nor shall it unreasonably interfere with the use of any Unit. - - -- - ____ 9958 13 Page: 27 of 75 05/0a/2002 0i:i3~ J Fisher Eagle, CO 135 R 375.00 D 0.00 5.5 Right of Entry. Declarant reserves for itself, for the duration of the Development Period, and for the Company an easement for the right, but not the obligatio enter upon any Unit: (i) for emergency, security and safety reasons; and (ii) to inspect any Unit for the purpose of ensuringfcompliance wi$ this Declaration, the Bylaws and the Rules. right may be exercised by member of the Board I and the Company’s officers, agents, employees and managers r emergency, security and safety purposes, all police, fire and ambulance personnel and other similar emergency personnel in the performance of their duties. This right of entry shall include the right of the Company to enter upon any Unit to cure any condition which may increase the possibility of a fire or other hazard in the event an Owner fails or refuses to cure such condition within a reasonable time after requested by the Company, but shaI1 not authorize entry into the residence located on or constituting any Residential ~ni~ without pe~issi~n of the occupant, except by emergency personnel acting in their of~~ial capacities. @ 5.6 Easements for Drainage and Flood Control. Declarant reserves for itself and its successors, assigns and designees, for the duration of the Development Period, the nonexclusive right and easement, but not the obligation, to enter upon any ponds, streams, drainage ditches and wetlands located within the’Common Elements to: (a) provide water for the irrigation of any of the Common Elements (b) alter drainage and water flaw; (c) construct, maintain and repair any bulkhead, wall, dam or other structure retaining water; and (d) remove trash and other debris therefrom. Such easement shall include an access easement over and across the Property, to the extent reasonably necessary to exercise rights established under this Section 5.6, and in order to maintain and landscape the slopes and banks pertaining to such ponds, streams and wetlands. To the extent the exercise of such easement is anticipated to materially diminisb the value of or unreasonably interfere with the use of any Unit, the consent of the Owner of such Unit shall be required before such exercise. Nothing herein shall be construed to make Declarant or any other Person liable for damage resulting from flooding. 5.7 Additional Easements. .(a) Declarant’s Right to Grant Easements. Declarant reserves the non- exclusive right and power to grant, during the Development Period, such additional specific easements as may be necessary, in the sole discretion of Declarant, in connection with the orderly development of any of the Property. (b) Companfs Riaht to Grant Easements. Notwithstanding anything to the contrary in Section 15.2 or other Sections of this Declaration, the Company, acting through the Board and without the approval of the Members of the Company, may grant easements over the Common Elements €or installation and maintenance of utilities, drainagFf5EiIities aEi roads and Ek-other purposes not inconsislent With the- intended use of the Common Elements. . - - - - - 5.8 Easements Run with Land. Except for the easements described in Section 5.3, all easements established and granted pursuant to this Article 5 are appurtenant to and run with the Property and will be perpetually in full force and effect so long as this Declaration is in force and will inure to the benefit of and be binding upon Declarant, the ..* 3 J Fisher Eagle, CO 135 R 375.00 D 0.00 Company, Owners, Permittees and any other Persons having any interest in the Property or any part thereof. The Units and the Common Elements will be conveyed and encumbere all easements set forth in this Article 5, whether or not specifically mentioned in suc conveyance or enc~~ance. .- ARTICLE 6 SPECIAL DECLARANT RIGHTS 6.1 Special Declarant Riphts. In addition to and without limiting any other right reserved by or for the benefit of Declarant in this Declaration or by operation of the Act, ~e~I~ant reserves the following Special Declarant Rights, which may be exercised by Declar during the Development Period, anywhere on the Property, with no l~i~tions on the extent to or the order in which such rights are exercised: (a) To complete any Improvements described fiom time to time on any Final Plat, the PUD or in the Annexation and Development Agreement; (b) (c) To exercise any of the Development Rights; To maintain sales offices, management offices and advertising signs on the Property, as set forth in Section 6.3; (d) To use the easement rights established pursuant to Section 5.3 for the purpose of making improvements within the Property or within real estate which may be added to the Property; (e) To merge or consolidate the common interest community established by this Declaration with a common interest community of the same form of ownership; (f) Subject to Section 7.7, to appoint or remove any offiCer of the Company or any member of the Board of Directors during the Declarant Control Period; and (g) To make the common interest community established by this Declaration subject to a “master association” as defined in the Act. 6.2 Transfer of Special Declarant Rights. Declarant may transfer any or all of the Development Rights and other rights and obligations of Declarant set forth in this Declaration or the Bylaws, in whole or in part, to other Persons. If such a transfer is to a Person that controls, is controlled by, or is under common control with Declarant (a “Declarant Affiliate”), then the transfer shall not require the consent of any Person; provided that Declarant shall provide written notice of such a transfer to the Service District along with an explanation of how the transferee qualifies as a Declarant Affiliate; and additionally provided that if Declarant makes a partial transfer of any of its rights or obligations under this Declaration to a Declarant Affiliate, Declarant shall provide a copy of the instrument of transfer to the Service District. If _____ 13 Page: 29 of 75 05/08/2082 01:13F Sara J Fisher Eagle, GO 135 R 375.00 D 0.00 20 such a transfer is to a Person that is not a Declarant Affiliate, then the transfer shall require the written consent of the Service District, which consent shall not be unreasonably Declarant reasonably demonstrates to the Service District that such transfer will no adversely affect the ability or authority of the Company to collect any of the Fees same to the Service District in accordance with the terms and conditions of this ~ecl~ati~n and the Fee Assignment Agreement. No such transfer shall be effective unless it is in a Recorded written instrument executed by Declarant (and the Service District to the extent required above) that specifically describes the Development Right(s) or other right(s) or obfigation(s) so transferred. e 6.3 Models and Offices. During the Development Period, ~ecl~~t evelopers authorized by Declarant may maintain and carry on upon any Unit owned by eclarant or any portion of the Common Elements such facilities and activities as, in the reasonable opinion of Declarant, may be required, convenient or incidental to the development, construction or sale of Units or any portion of the Property, including? without limitation, business offices, signs, model units and sales offices (subject to any necessary approvals or limitations pursuant to the Master Desigu Review Covenants). Such facilities may be of any number, size and location which Declarant determines will adequately accommodate Declarant’s or a Developer’s development, sale and marketing of the Units and the Property. ARTICLE 7 THECOMPANY 7.1 Function of Companv. Generally. The Company shall be responsible for: management, maintenance, repair, replacement, operation and control of the Common Elements and collection of the Fees an& Assessments. The Company shall be the primary entity responsible for enforcement of this Declaration and the Rules. The purposes and powers of the Company and the rights and obligations of Members may and shall be amplified by provisions of the Articles and the Bylaws. Neither the, Articles, the Bylaws nor the Rules shall for any reason be amended or otherwise changed or interpreted-so as to be inconsistent with this Declaration. In case of conflict between the Declar and the Articles, the Bylaws or the Rules, this Declaration shall govern. 7.2 Property-Wide .Matters. The Company shall operate with respect to Property-wide matters only and shall not otherwise operate as the exclusive Owners’ association with respect to any Unit. If it ,becomes necessary or desirable for the Owners of any particular group of Units to address administrative or maintenance issues unique to their Units, then the portion of the Property comprising such Units shall be made subject to the jurisdiction of a Supplemental Association established pursuant to a Supplemental Declaration that is made and Recorded pursuant to Section4.3. The Company may function as a “master association” (as defined in the Act) with respect to any Supplemental Association established pursuant to a Supplemental Declaration. . .. .___ - .__ - 795813 Page: 30 of 75 05/08/2002 01:13F Sara J Fisher Eagle, CO 135 R 375.00 D 0.00 7.3 Additional Permissive Functions of the Company. The Company may, but shall have no obligation to, perform any one or more of the following functions: * (a) Operation Function: The Company may do all w~~n the power of the Financing District or the Service District that are not being performed by such districts and that may be reasonably necessary or desirable to keep and maintain the Property as a safe, attractive and desirable community. (b) Public Health and Safetv Function: The Company may provide public health and safety services within the Property, including but not limited to, providing health care services and facilities, security personnel, security services and system, police and p~~ed~c facilities and services, fire protection facilities, and a fire watch system that may include periodic fue prevention inspections and equipment certifications. (c) Parkin? Function: The Company may own, coridtruct, purchase, lease, care for, operate, manage, maintain, rep& or replace parking areas-and structures to accommodate Owners and Permittees, including but not limited to, signs, landscaping, and other similar facilities appurtenant to said parking areas and the removal of snow from and the cleaning, paving and stripiag of any such parking areas and/or structures. (d) Transt5ortationh Funcfiom The Company may provide for the operation, maintenance and repair o$ a transportation system between the parking areas and the commercial, residential and recreational areas of the Property, within the Property generally, and between the Property and,. surrounding areas- Such transportation system may include, but is not limited to, a bus, auto, cable, gondola or rail system and any other facilities deemed necessary or appropriate for the proper operation and maintenance of such system. (e) Recreation Function:. The Company may provide a seasonal and/or year-round recreational. progra of suitable variety, including, but not limited to, informing visitors of available recreatio~ opportwlities and stimulating +eir participation therein; conducting, operating, managing and maintaining programs for children, including, but not limited to, daycare facilities an4 such miscellaneous equipment as may be appropriate for use in connection therewith, conducting: caring for, operating, managing, maintaining, repairing and replacing within the Property swimming pools, ice rinks, sauna or steam baths, tennis courts, game courts, golf courses, driving ranges, equestrian facilities, game areas and other recreational amenities, and such miscellaneous equipment as may be appropriate for use in connection therewith; and removing snow from and cleaning such facilities as necessary to permit their Eull use and enjoyment. (f) Central Reservations Function: The Company may make available a voluntary central reservation service for the rental of AccommodationsLodging Rooms, which service may include the administration of a room pool and the performance of related travel arrangement services. Participating Owners and lessees of Owners shall comply with all reasonable rules and regulations of the Company in - -- - - 79958 13 Page: 31 of 75 85/88/2002 01:13F 22 .@0 D 0.08 upon presentation of satisfactory evidence of the sale, transfer, succession, disposition, foreciosure or other transfer of a Unit to such Owner. Membership may not be transferred, pledged or alienated in any way, except to a new Owner upon conveyance of a Unit. attempted prohibited transfer of a ~embers~p will be void and will not be recogniz~ Company. Page: 32 of 75 05/08/2002 01:13F 7.5 Authorized Representative. Any Owner who is either: (i) two or more Persons; or (ii) one Person that is not a natural person Q., an estate or a trust, corporation, partnership, limited liability company or other entity), shall appoint, and any Owner who is one natural person may appoint, an Authorized Representative. Any Owner so required to appoint an Authorized Representative shall do so immediately upon becoming an Owner. Any Owner w~o is required or elects to appoint an Authorized Representative shall provide written notice to the Company of the appointment of such Authorized Representative or any subsequent replacement therefor within 10 days after appointment. Such notice must (a) be signed by all Persons constituting the Owner; (b) be dated; and (c) contain a statement that the natural person named therein will remain the Authorized Representative of such Owner until a subsequent notice is given to the Company naming a successor. Such notice will be deemed a proxy given by all Persons constituting such Owner to the Authorized Representative named therein for all purposes under this Declaration, the Bylskws, the Act and the Colorado Nonprofit Corporation Act. The appointment of an Authorized Representative will be binding upon all Persons comprising the appointing Owner and the vote of the Authorized Representative will be conclusive as to the Company, unless and until the Company receives a notice appointing a replacement Authorized Representative (or, in the caFe of an Authorized Representative appointed by an Owner who is one natural person, a notice terminating the appointment of such Authorized Representative). Unless the notice of appointment expressly states otherwise, the Authorized Representative shall be authorized to designate in a writing delivered to the Company pursuant to Section 17.7 of this Declaration a temporary, substitute Authorized Representative. Upon receipt of any notice appointing an Authorized Representative, the Company may request such additional evidence of authority as it may reasonably deem necessary to verify the due appointment of the named Authorized Representative. If an Owner who is required or elects to appoint an Authorized Representative owns more than one Unit, suck Owner may elect to appoint: (1) the same natural. person to service as Authorized Represefitative for each Unit owned by such Owner; (2) a different natural person to serve as Authorized Representative for each such Unit; or (3) the same natural person to serve as Authorized ,Representative for two or more of such Units and one or more different natural persons to serve as Authorized Representatives for the remaining Unit(s) owned by such Owner. 7.6 Maioritv ADproval. Except as otherwise provided in this Declaration, the Bylaws or the Act, the affirmative vote of the Owners present and voting, either in person or by proxy, at a meeting of the Company called and held in accordance with the Bylaws will be sufficient to approve any matter submitted to a vote of the Company if such Owners hold a majority (k, more than 50%) of the percentage of votes in the Company represented at such meeting. executive committee or an officer, executive manager or Director of the Company. The quali~cations and number of Directors, the term of office of Directors, the manner in which Directors shall be elected and the manner in which Directors shall be replaced upon re~oval or resignation shdl be as set forth in the Bylaws. The Bylaws shall con~in provisions identical in all substantive respects to the following provisions: (a) Appointment of Directors during Declarant Control Period. Upon commencement of the Declarant Control Period, there shall be three Directors, all of whom shall be appointed by Declarant. From the date that is 60 days after the date on whch 25% of the maximum number of Units that may be created pursuant to Section 3.2 have been conveyed to Owners other than Declarant, until the end of the De~l~~t Control Period, the Board will consist of three Directors, two of whom will be appointed by Declarant and one of whom will be elected by Owners other than Declarant. No Director appointed by Declarant shall be required to be an Owner or the Authorized Representative of an Owner. ' (b) Election of Directors after Declarant Control Period. Except as otherwise provided in Section 220(5) of the Act, from and after the end of the Declarant Control Period, the Board will consist of three Directors (or such other number, but never fewer than three, as may from time to time be set forth in the Bylaws), elected by the Owners, at least a majority of which Directors must be Owners other than Declarant or Authorized Representatives of Owners other than Declarant. Directors elected under this Section 7.7(b) shall take office upon termination of the Declarant Control Period. 7.8 Removal of Directors. Notwithstanding any provision of this Declaration or the Bylaws to the contrary, the Owners, by the affirmative vote of Owners holding more than 50% of the votes in the Company present, either in person or by proxy, and entitled to vote at any meeting of the Company at which a Quorum is present, may remove, with or without cause, any Director other than a Director appointed by Declarant. Any Director appointed by Declarant may be removed, with or without cause, only by Declarant. 7.9 Delivery of Property to Comrrany. Within 60 days after the Owners other than Declarant elect a majority of the Directors, Declarant shall deliver to the Company all property of the Company, as required by Section 303(9) of the Act. 7.10 Powers. In the performance of its hnctions and duties, the Company shall have the power to: (a) adopt and amend the Bylaws, and make and enforce the Rules, consistent with the rights, duties, terms and conditions established by this Declaration and the Bylaws; (b) subject to Section S.l(d), adopt and amend budgets for revenues, expenditures and reserves and assess and collect any Assessments and any other amounts due from Owners or others to the Company; 05/08/2002 0l:lJF Ira J Fisher Eagle, GO 135 R 375.00 D 0.00 25 (c) hire and terminate managing agents and other employees, agents and independent contractors; any of the e~orcement powers set forth in Section 7. (e) institute, defend or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more Owners on matters affecting the Property or the Company; (0 make contracts and incur ~iabilities in accordance wi ratified ~udget; (g) borrow funds to cover Company expenditures and pledge Company assets as security therefor, provided that Common Elements may be subjected to a security interest only pursuant to Section 15.2; (h) $provide for the use, maintenance, repair, replacement and modification of the Common Elements in accordance with the properly ratified budget or otherwise in accordance with this DpAaration; (i) cause additional improvements to be made as a part of the Common Elements in accordance ’with the properly ratifiecl budget, or otherwise in accordance with this Declaration; (i) acquire, hold, encumber and convey in its own name any right, title or interest to real or personal property (including, without limitation, one or more Units), provided that Common Elements may be conveyed or encumbered only pursuant to Section 15.2; (k) grant :easements, leases, licenses, and concessions through or over the Common Elements; (1) rental or operation of the Conm and/or members of the general public; impose’ and receive any payments, fees or charges for the use, r any services provided to Owners (m) impose charges for late payment of Assessments and Fees recover reasonable attorneys’ fees and other legal costs for collection of Assessments and Fees and other actions to enforce the powers of the Company, regardless of whether or not suit was initiated, and, after providing notice and an opportunity to be heard, levy reasonable fines for violations of this Declaration, the Bylaws or the Rules; (n) impose reasonable charges and fees for services including, but not limited to, the preparation, copying and recordation of amendments to this Declaration or statements of unpaid Assessments pursuant to Section 10.9; - - 795013 8 Page: 34 of 75 05/08/2002 01:13F a J Fisher Easle, GO 135 R 375.00 D 0.00 26 (c) hire and terminate managing agents and other employees, agents and independent contractors; (d) exercise any of the e~orcement powers set fo (e) institute, defend or intervene in litigation or administrative proceedings in its own name on behalf of itself or two or more Owners on matters affecting the Property or the Company; (0 make co~~acts and incur liabilities in accordance with a pro~erly (g) borrow funds to cover Company expenditures and pledge Company assets as security therefor, provided that Common Elements may be subjected to a security interest only pursuant to Section 15.2; (h) provide for the use, maintenance; repair, replacement and modification of the Common Elements in accordance with the properly ratified budget or otherwise in accordance with this Declaration; (i) cause additional improvements to be made as a part of the Common Elements in accordance with the properly ratified budget, or otherwise in accordance with this Declaration; (i) acquire, hold, encumber and convey in its own name any right, title or' interest to real or personal property (including, witbut'limitation, one or more Units), provided that Common. Elements may be conveyed or encumbered only pursuant to Section 15.2; (k) grant easements, leases, licenses, and concessions through or over the Common Elements; (1) impose and receive any payments, fees or charges for the use, rental or operation of the Common Elements and for any services provided to Owners and/or members of the general pub& (m) impose charges for late payment of Assessments and Fees recover reasonable attorneys' fees and other legal costs for collection of Assessments and Fees and other actions to enforce the powers of the Company, regardless of whether or not suit was initiated, and, after providing notice and an opportunity to be heard, levy reasonable fines for violations of this Declaration, the Bylaws or the Rules; (n) impose reasonable charges and fees for services including, but not limited to, the preparation, copying and recordation of amendments to this Declaration or statements of unpaid Assessments pursuant to Section 10.9; __ __. __ - __ - - 26 a J Fisher Eagle, GO 135 R 375.00 D 0.069 (0) provide for the indemnification of its officers and Directors as provided in the Bylaws or the Articles and ~aint~n directors’ and officers’ lia~ility insurance; (p) assign its right to future income, ~cluding the right to receive Assessments or Fees; (q) enter into any agreements with the Commercial Company and/or the Service District or the Financing District for the coordinated performance of any pennitted hctions the Company desires to have performed Uniformly thin Village (at Avon) or any portion thereoc (r) perform any duties or functions properly delegated to the Co~p~y by any Supplemental Association or the Design Review Board; (s) exercise any other powers expressly conferred by this Declaration, the Bylaws or the Act or reasonably implied from or necessary to effectuate such powers; except as prohibited by the Act, exercise all other powers that may (t) be exercised in the State uf Colorado by a nonprofit corporation; and (u) exercise any other. powers necessary and proper for the governance and operation of the Company. This Declaration may not and is not intended to impose any limitations on the powers of the Company to deal with the Declarant that are more restrictive than the limitations imposed on the power of the Company to deai with any other Person. 7.11 Enforcement. 9 (a) Sanctions and Self-Help. The Company may impose sanctions for. violations of this Declaratioa, the Bylaws or the Rules in accordance with procedures set forth in the Bylaws, including reasonable monetary fines an4 suspension of the right to use any Common Elements. Im addition, in accordance with the Bylaws, the Company may exercise self-help (s, enter upon; a Unit and make any- corrective measure wcesswy to mxe. a~iolation). to cure violations and SYSP~~~-~Y se~jces it provides to the Unit -of any Owner who is more than- thirty days delinquent in paying any Assessment, Fee or other charge due to the Company following delivery of a notice of such violations to such Owner. All remedies set forth in this Declaration and the Bylaws shall be cumulative of each other and of any remedies available at law or in equity. In any action to enforce the provisions of this Declaration or the Rules, if the Company prevails it shall be entitled to recover all costs, including, without limitation, attorneys’ fees and court costs, reasonably incurred in such action. (b) No Waiver. In no event shall the Company’s failure to enforce any covenant, requirement, restriction or rule provided for in this Declaration, the Bylaws or __ __ __ ____ - - -- -- ~~~~ 13 Page: 36 of 75 05/08/2002 01:13F Sara J Fisher Eagle, CO 5.00 D Q.@Q 27 the Rules constitute a waiver of the Company’s right to later enforce such provision or any other covenant, requirement, restriction or rule. 7.12 Board Authority. Except as otherwise specifically provided by law or i eciaration, the Articles or the Bylaws, all rights and powers of the Company may be exercised by the Board without a vote of the Members. In the performance of their duties, the Directors will act according to their ordinary business judgment, except to the extent the Act requires a greater standard of care. Unless otherwise provided in this Declaration or the Act, the affirmative vote of a majority (&, more than 50%) of the Directors will be necessary and sufficient to approve any matter before the Board. The Board shall select the officers of Company, which officers may also serve as Directors, except that during the Decl~~t Go eriod, Declarant may appoint and may remove the officers of the Company. 7.13 Annexation and Development Ameement. In addition to all other duties imposed on the Company by law and this Declaration, the Company shall perform all of its obligations under the Annexation and Development Agreement. ARTICLE 8 FINANCIAL MATTERS, BUDGET AND ASSESSMENTS 8-1 General Financial Matters; Budget. The Board, on behalf of the Company, shall discharge tbe following obligations with respect to financial matters: (a) . Books and. Records. The Board shall cause to be maintained hll and complete books and records of the Company’s business and operations, including, ’ without limitation, current copies of this Declaration and all amendments hereto, the Articles, the Bylaws, the Rules, the approved budget for the current Fiscal Year, financial statements, books and records reflecting all assets, liabilities, capital, income and expenses of the Company, and supporting materials, such as bank statements and invoices, for at least the shorter of (i) the prior seven Fiscal Years or (ii> all of the’Fiscal Years in which the Campany has been in existence. All of such books aid. rec;ords will be made availatjle for inspection by any Owner, holder of a First Mortgage, insurer or guarantor of a First Mortgage or their respective authorized representatives during normal business hours upon reasonable prior written request. (b) Returns. The Board will cause to be prepared and filed before delinquency any and all tax, corporate or similar returns or reports that the Company is required by law to prepare and file. (c) Preparation of Budget. The Board will cause to be prepared and will adopt annually, not less than 45 days prior to the beginning of each Fiscal Year of the Company, a proposed budget for the Company. The proposed budget will include all of the following items, in addition to any other items the Board deems appropriate: (i) the estimated Common Expenses of the Company for such Fiscal Year, in reasonable detail as to the various categories of Common Expense; . 05/08/2002 01 : 13F 38 I J Fisher Eagle, CO 135 R 375.00 D 0.00 (ii) the estimated revenues of the Company that will be available to defray the ~o~on Expenses, in reasonable detail as to the various categories of revenues; (iii) the amount of Common Assessments that will be necessary to meet the estimated Common Expenses of the Company for such Fiscal Year; (iv) the current cash balance in the Reserve Fund, which fund shall be established and maintained by the Board if the Board reasonably determines there is a need for the Reserve Fund; (v) an estimate of the amount require e spent d~ing SUC e Reserve Fund for the major repair or replacement of the Common Elements; and (vi) a statement of the amount required to be added to the Reserve Fund during such Fiscal Year to cover anticipated withdrawals and adequately address contingencies and anticipated needs in future Fiscal Years. (d) Ra%ification of Budget. Within 90 days after adoption by the Board of any proposed budgetrfor the Company, the Board will mail by ordinary first- class mail or otherwise deliver to all Owners a summary of the proposed budget and will set a date for a meeting of the Owners to cdnsider the proposed budget. Such meeting will occur within a reasonable time &er mailing or other delivery of the summary. The Board will give natice to thq Owners of the meeting as allowed for in the Bylaws. The budget proposed by the Board does not require the approval from the Owners and it will be deemed approved by the Owners. in the absence of a veto at the noticed meeting by more than 75% of the total number of Owners, whether or not a Quorum is present. In the event that the proposed budget is vetoed, the budget last proposed by the Board and not vetoed by the Owners will continue in effect until such time as a subsequent budget proposed by the Board- is not vetoed by the Owners as described above. For the first Fiscal Year of the Company, the Board may adopt the Declarant’s estimated budget for the Company and assess Common Assessments pursuant to Section 8.4 according to such budget, provided that the Board, submits such budget to the Owners for ratification in accordance with the foregoing provisions within 90 days after adopting the same. (e) Annual, Financial Statements. The Board will cause to be prepared annually a report with respect to the financial condition of the Company. Such report shall consist of a balance sheet as of the end of the preceding Fiscal Year, an operating (income) statement for such Fiscal Year and a statement of changes in the Company’s financial position for such Fiscal Year. A copy of such annual report will be distributed to each Owner within 120 days after the close of each Fiscal Year. (f) Reserve Fund. If the Company establishes a Reserve Fund, the Board shall cause the Reserve Fund to be maintained in a bank account that is separate from the bank account(s) used for the Company’s ordinary receipts and disbursements. 135 R 375.00 D 0.00 29 Sara J Fisher Eagle, CO 8.2 Matters Pertaining to Actual Value. (a) Submissions. For and during e Tax Year, each Owner s sub~it to the Co~p~y, within 30 days after receiving no later than the end of such Tax Year), the following: of the same but in (i) A copy of the initial notice of valuation for the applicable Unit received from the Eagle County Assessor; (ii) Any subsequent notices received from the Eagle County Assessor of any applicable adjustments to the val~tion of the app~icab~e ~~t (or tax parcel or parcels inclusive of the Unit), whether based on successful protests of valuation, cons~ction of Improvements in process, or any other applicable circumstance. (b) Allocation Information. If the particular Unit is part of or contained within a larger tax parcel or parcels, the Owner shall be obligated to submit evidence reasonably satisfactory to the Company sEawing the relative land areas within the Unit and the pertinent tax pEucel(s), as we'll: as relative floor areas within any Improvements located on the Unit and-t.€ie pertinen6 tax parcel(s). 'Ihs submission must be completed as of or prior to the Owhers' submission of the initial notice of valuation for the pertinent Tax Year pursuant to Section 8.2(a)(i) above. However, if the pertinent Improvements include new @provemaits that are in the process of construction during the applicable Tax Year, then this subnrissian shalt be subsequently augmented by an update of the relative floor areas; of the Iq.mvements as of the date that the Eagle County Assessor, pursuant to applicable laws, is required to re-assess those Improvements irrprocessA (which date, under C.R.S. 39-5-132, is currently July 1)- (c) Submissions Upon Inclusion; Whenever any new Unit is includ&d within the common interest combunity established by tbis Declaration, the Owner of the newly includkd. Unit, contemporaneously with the inclwion, shall gubmit to the Compqy (i) all submissions requjreb'under Sections 8.2Ca) dnc&2(b) above for the Tax Year to the Tax Year in which the .in&lusion occurs, arid (i -the Tax Year in wfic inclusion occurs, all submissions fop' that Tax Year th@, under the express provisions -of Sections 8.2(a) and 8.2(b), would have already become due if such Unit had been included before such Tax Year. (d) Failure of Submissions. (i) If any of the requisite submissions pertaining to Actual Values, as set forth in the foregoing provisions of this Section 8.2, are not timely made, then the Company can procure substitute information by any means available to it, and may also assess the defaulting Owner such. fees as the Company may adopt and levy, pursuant to Rules established from time to time, to compensate the Company for all costs and expenses incurred by the Company in procuring substitute information. The actual costs and expenses incurred by the . __ -- -- 05/08/2002 01:13F 5.00 D 0.00 30 Company may be extremely difficult, if not impossible, to determine with exactitude, and consequently the establishment of reasonable fees will constitute a fair alternative to recovery of the actual sums. (ii) If any Owner fails to submit the requisite i~o~ation ~der Section 8.2(b) above, the Company may proceed to allocate the entire valuations of the pertinent tax parcel(s) to the applicable Unit, or alternatively may allocate any portion of that entire valuation to the Unit on any basis that the Company at its election rnay deem equitable. (e) Rede~~tio~ of Tax Units. Whenever a new Unit is include^ into this ~eclaration or otherwise established, and such Unit is part of or contained w larger tax parcel or parcels, the Owner of that Unit shall be obligated to establish such Unit as a new separate tax parcel for the Tax-Year next following the inclusion or establishment of the Unit, unless such inclusion or establishment occurs within the last:, three months of the then cment Tax Year, in which. case the .Owner shall only- be obligated to exercise best efforts toward establishment of the Unit as a separate tax parcel in the next following Tax Year. In any event the Owner shgll be obligated to complete the redesignation of the Unit as' a separate taxsparcel for the. second Tax Year following- the Tax Year in which tfie inclusion or -establi+ment of the Unit occurs. If the Owner fails to have the Unit redefrned as a separate tax parcel in accordance- with the foregoing provisions, the Company maytproceed to allocate the applicable valuations to the Unit in accar.dance with Section 8.2(d)(ii) above. (f) Annual Recalculation of Cummon .Allocations. For each Fiscal Year, the Company shall recalculate the,Cbmmon Allocation therefor in accordance with the fomula established under Section 2.17, andathe Company shall endeavor to complete the recalculation and apply the same to (and give Ownersinotiqe thereof in conjunction% with)- the fsst installment of Common Expenses, that wil be payable for ,and during that: Fiscal Yeas. on d&s not complete sucP recatplation in conjunction withithe first annual installmerrt o ornrnon Expenses, thenu such installments for the.new FiscaliYear shalkcommence and continue on the basis of the last- Comon Allocation -in effect (& the one in effeGt at the end of the preceding Fiscal Year) until the recalculatiomof the Common Allocation is completed (at which-% time the current installments of Common Expenses shall then be adjusted as set forth in the foregoing provisions). In any case where the recalculation is so completed after the commencement of the Common Expense installments for the new Fiscal Year, the difference between @the actual installments already assessed for the new Fiscal Year, and (ii) the amounts that would have been levied therefor if the recalculation had been completed at the beginning of the new Tax Year, may either be reflected as increases or decreases, as the case rnay be, in one or more of the remaining installments for that same Fiscal Year, or alternatively may be accounted for in the year-end reconciliation of Common Expenses for that same Fiscal Year made by the Company pursuant to Section 8.4(c), all as determined by the Board from time to time. However, if the Company. for any 05/08/2002 01 : 13F rra J Fisher Eagle, CO 135 R 375.00 D 0.00 33 (g) Mid-Year Temporarv Adiustments. If any new Unit is included into the Property or any existing Unit is subdivided into addition^ Units in the course of any given Fiscal Year, then the Company shall assign temporary Cornmon Allocations to the new Unit(s) so included or established. In assigning such temp or^ Co~on Allocations, the Company shall use the information concerning the Actual Value for the Units provided by the Owners of the affected Units pursuant to Section 8.2(b) or 8.2(c), as applicable, and the formula prescribed in Section 2.17 for determining the Common Allocation of a Unit. Until the Common Allocations for all of the Units are recalculated pursuant to SectionS.Z(f), the Common Allocations temporarily assigned to the new Units pursuant to the preceding provisions of this Section 8.2(g) shall be deemed the Common Allocations for such Units for all purposes under this Declaration, an Owners of the new Units shall pay their share of Common Expenses and exercise voting rights in the Company according to such Common Allocations during such interim period. Whenl the Company assigns a temporary Common Allocation to any new Unit pursuant to the preceding provisions, the Company shall also recalculate the Common Allocations for the other Units within the Property pursuant to the formula prescribed in Section 2.17 solely for the purpose of determining the vQting rights in the Company for all Units until new Common- Allocations are determined for all Units at the commencement of the next Fiscal Year pursuant td Sqctipa 8.2(f). UntiE the Common Allocations for alk Units are so &tennine the Units that existecEEprior to the e continue. to pay-their share of the Common Expenses: on. the basis of the Common Allocations 'determined for each of them at the commencement of the. existing, Fiscal Year. Due to establishment of a new Unit and* the resulting "assignment of a temporary Co Allocation for such Unit pursuant to this Section 8'.2ig), it is acknowledged that the Owners. of existing Units will overpay their Common Allocations of Common Expenses in therFisca1 Year of such' establiihment. To address such overpayment, the. Campany shall perform a reconciSiationfpursuant to Section- 8.4(c). If any Unit is withdikwn fiom the Property, the Company shall have the- option of adjusting Yew pursuant to ng Units pursuant e the Company will: have e commencement of the next Fisd nt of the newjy establishes on Assessments payable for: the remainder: of the Fisc (b) or recalculating the Common,Allocations for the rem scribed in Section 2.17, as nece o pay the Cmont Expenses for 8=3 . There shall be three types of Assessments: on 8.4; (b) Special Assessments as described in c Assessments as described in Section 8.6. Bach Owner, by aGcepting agree to pay these Assessments pursuant to-the (a) Common Asses Section 8.5; and (c) a deed for any Uni terms and conditions of this Declaration. 8.4 Common Assessments. Subject to Section 8.9, each Unit is subject to Common Assessments for the Unit's share of the Common Expenses as allocated pursuant to Section 3.3(b). Common Assessments will be caIculated, paid, adjusted and reconciled in accordance with the following provisions: --______-___ - - _-- ~~~~ 13 Page: 41 of 75 05/0a/2002 0i:m~ .OO D 0.00 32 (a) Budget and Payment. The Company shall set the Common Assessments for each Fiscal Year at a level which is reasonably expected to produce total income for the Company €or such Fiscal Year equal to the total Common Expenses set forth in the budget adopted by the Board and rati~ed by the Owners p Section 8.1(d). In determining the total funds to be generated through the Common Assessments, the Board shalI take into account the pre-construction discount established pursuant to Section 8.9 and, in its discretion, may consider other sources of funds available to the Company, including any surplus from prior years. (b) Adiustment. If during any Fiscal Year it becomes apparent that the estimated ~o~on Expenses and/or revenues of the Company as set forth in the ~~dget upon which the Co~o~ Assessments were based were in error for any reason, includin~ no~pa~ent by any Owner of its Common Assessments or the withdrawal of any Unit f?om the Property, to the extent that the Common Assessments the Board determines will be received for the bdmce of such Fiscal Year will .beinadequate, or more than required, to meet the Company’s .obligations intended to be covered by such Common Assessments, the Board niay mend the *budget and incEease or decrease the Common Assessments for the balance of such Fiscal Year upon not less than 30 days’ prior. notice to all Owners. individually or in Notwithstanding, the foregoing however, if any such with all previous amendments within any Assessments for a Fiscal Year by more th by the budget previously ratified by the Owners pursuant to Section 81(d), vhen prior to increasing the Common Assessments*bascd ctn such amended budget the43oa.d must submit the same for ratification by the Owners using the procedures set fortb in Section 8.1 (d). (c) Reconci€iiation: If the Board, in its discretioh, determin or more Owners may havebbeen materially under-bi1led:or over-billed for allocated shares of the Commort Expenses for any Fiscal Year, the Board:shall cziuse the actual Common Expenses incurred, by the Company during sucfi Fiscal Year to: be reconciled agailrst the Common Assessments received by -the Company. from the0mers. To the extent that Common Expense may in its discret overpayment again ensuing Fiscal Year. T6 the extent any Owner has underpaid its Common Allocatim of such actual Common Expenses, the Board may in its discretion either demand in writing that such Owner pay the amount of such underpayment of Common Assessments to, the Company within a specified period of time, as determined by the Board, after the Board notifies such Owner of such underpayment (which period of time may not be less than 30 days), or the Board may include such underpayment in such Owner’s obligations. for Common Assessments for the next ensuing Fiscal Year. Nothing in this Section 8.4(c) shall be construed as limiting any of the enforcement rights of the Company with respect to delinquent Assessments under Article 10. has paid more than, its Col~rmon Allocation of s ugh the Owner timely paid all billed amaunts), er refund the overpayment to the Ownea or cr Owner’$ obligation for Coinmon Assessments fo 7958 13 Page: 42 of 75 , 05/08/2002 01 : 13P 135 R 375.00 D 0.00 I j/ ara J Fisher Eagle, CO 33 (d) Failure to Assess. Failure of the Company to fix Common Assessments amounts or rates for a given Fiscal Year or to deliver or mail to each Owner a Common Assessments notice shall not be deemed a waiver, modi~cation or release of any Owner’s obligation to pay its allocated share of Co~o~ Assess~ents. I event, each Owner shall continue to pay Common Assessments on the same basis as during the last year for which Common Assessments amounts were set by the Company, if any, until new Common Assessments are levied, at which time the Company may retroactively assess any shortfalls in collections. 8.5 Special Assessments. In addition to other authorized Assessments, the Company may levy Special Assessments from time to time to cover ~~udgeted expenses or expenses in excess of those budgete~; including, without li~itation, the costs of construction, restoratio~ expected repair or replacement of any Common Elements, Improvements thereon or any other capital improvements that benefit all of the Owners and are not covered by the Reserve Fund. Except as otherwise provided in Section 8.9, each Unit is subject to Special Assessments for the Unit’s Common Allocation. of the total Special Assessments levied by the Company. ‘Excepts as otherwise specifically provided in this Declaration, no Special Assessment- shall require the approval- of the Members, but if such sessment is levied duringthe Development Period, the consent of Declarant shall. be shall be payable in such manner and at such times as determine& le in installments extending beyond the Fiscal Year in which the The. Board shall have the right. to require that Special in advance. oEthe provision of the subject services or materials. Without limiting the generality of the foregoing, the Board-may levy Special Assessments to cover certain costs of restoration or replacement of Common Elements in the event of damage, destruction or Taking of Common Elements, as set forth in Sections 13.2(a)(v) and 13.3. In determining the funds to be raised pursuant to any Special‘ Assessment, the Board shall take into accopnt the pre- .construction discount established pursuant tcr Section 8.9. roved. 8.6 SuecifiC. Assessments. The Company shall have the power to levy Specific Assessments againsg one or more pa$cular,Unit(s) as follows: (a) to cover the costs, inchding overhead and administrative costs, of providing benefits, items ox services to such Unit or- occupants thereof upon request of the Owner of such Unit pursuant to a menu of special services which the Board may from’ time to time authorize to be offered to Owners and occupqnts (which may include, without limitation, Landscape maintenance, janitorial service, snow removal, and pest control), which Specific Assessments may be levied in advance of the provision of the requested benefit, item or service as a deposit against charges to be incurred by the Owner; (b) to cover costs incuaed in bringing the Unit into compliance with the terms of this Declaration, the Bylaws or the Rules, or costs incurred as a consequence of the conduct of the Owner or such Owner’s Permittees; provided, however, the Board shall give the Owner of such Unit notice and an opportunity to be heard as provided in the Bylaws before levying any Specific Assessment under tbs Section 8.6(b); -- ___ -- -_I - - 3 Page. 43 of 75 17 85/08/2002 81.13F 34 ff 375 00 0 0.00 (c) to cover necessary costs or expenses incurred by the Company that benefit one or more Units but fewer than all Units, such as, for example, the costs of repairing a utility line that serves only one or two Units but no others, and, Owners of all the benefited Units othe~ise agree, each benefited Unit shall be assesse percentage of the Special Assessments so incurred that is derived from a fraction, numerator of which is such Unit’s Allocation Number and the denominator of which is the sum of the Allocation Numbers of all the Units so benefited, and the Board shall have the authority to assess Specific Assessments for such costs without the approval of the benefited Owners; (d) e to cover any costs or expenses that are recovera~~e as Speci~c Assessments pursuant to other provisions of this Declaration. 8.7 S-oecific Assessment far Wildlife Mitigation. The Company shall establish a “Wildlife Trust Quid’’ p descrjibedin the Wildlife Mitigation Plan to fund mitigation efforts for elk winter range habitat that will be lost or affected throu@ development of the Property. Such Wildlife Trust Fund-will be established no lat,er than when the Town issues a building permit for the first dwelling to be constructed on the portion of the Property north of Interstate 70. Declarant shall loan the Company the original principal necessary to establish the: Wildlife Trust Fund pursuant to the requirements of the WildlifKMitigation Plan. The Company shall-repay Declarant for the amount of such principal outray, plus interest at the rate of 8% per , &y wsessing a Specific Assessment against certain Units as mare particularly described Section 8.7 and remitting such Specific Assessment to Declaraiit. Each time a building permit is issued by the Town for a dwelling constructed on the portion of the Property north of Interstate 70, the Company shall assess a Specific*Assessment against the Owner of the Unit on which the dwelling, is constructed. -The amount of each- such Specific Assessment shall be $500.00 for the, calendar year. in which: the Specific Assessmefit is first assessed. and thereqfter shalf be increased for each following calendar year. at an e of 2.7%. Upon receipt, the Company shall remit each such. Speqific Assessment to il Declarant has been fully. repaid fox the principal amounf‘loanedito $fie Company as pescribe‘cE above, plus interest at the rate 05.8% per annum. After DeclaranLhas been fully repaid pecific Assessments collected by the Cmnpanypursuant to this Section 8.7 shall be treated erd assets of the Company to rbcmsed for such purposes as tfie Boadmay determine. 8.8 Commencement of Assessments. The obligation to pay Common Assessments and Special Assessments shall commence as to each Unit on the first day of the month following the later of (a) the month in which the Unit is made subject to this Declaration -or (b)the month in which the Company first establishes and ratifies a budget and levies Assessments pursuant to this Article 8. The obligation to pay Specific Assessments shall commence as to any Unit when the Company levies the Specific Assessments against the Unit pursuant to this Declaration. The first annual Common Assessments and Special Assessments levied on each Unit shall be prorated according to the number of months remaining in the Fiscal Year at the time Assessments commence on the Unit. 8.9 Pre-Construction Discount for Common and Special Assessments. With regard to an Owner’s obligation to pay Common Assessments and Special Assessments assessed 05/08/2802 01 : 13F 35 J Fisher Easle, CO 135 R 375.00 D 8.00 against such Owner’s Vnit, the Owner shall be entitled to a discount on such Assessments as follows: until the first day of the first month following issuance by the Town of a building permit for construction of a building on or comprising the Unit, the~~omp~y shall assess such Unit for 50% of the Co~on Assessments and Special Assessments se be due, and thereafter, such Unit shall be assessed for the full amount of the ~0~0~ Assessments and Special Assessments due. a ARTICLE 9 FEES 9.1 Creation of Fees. There shall be three types of Fees: (a) Acco~odationslLodging Fees as described in Section 9.2; (b) Real Estate Transfer Fees as described in Section 9.3; and (c) Retail Sales Fees as described in Section 9.4. Each Owner and Leasehold Owner, as applicable, is deemed to covenant and agree to pay these Fees pursuant to the terns and..conditions of this Declaration, and, without limiting any other provisioxx of this Declaration, such obligation shall be a red covenant that runs with title to each Unit for the benefit “of the Property. 9.2 AccommodationdLodging Fee. The Acc dations/Lodging Fee t Unit or, if the Unit is subject me: provided, however, that if in &Unit solely for the purpose of circumventing the terms of this Declaration (&., ins e Owner of the Unit?., from liability for the AccommodationslLodging Fee and protecting fGe tit,le to the Unit from lien foreclosure pursuant to Section 10.6(b)), then the Company shall have the, right. to disregard such Estate fox dl purposes under this Declaration: The Company. shalkontinuously. and levy upon and collect, from, each Owner, or Leasehold Owner, as applicable, an. Accomrnadati.ons/Lodging Fee on the renting, letting *or .prdvision of ’ each. Accomodations/Lod&i;ing Room owned? or- operated by such Owner OF, Lezqehold. Owner. The le te the Company shall be ~e ‘product. obtained by, iorx for each renting, skodging Roam by-@) odationskodging Fee Rate establishedi pursuant to Sectioa9.5(a) and in effect at the -the of such transaction.. Each Owner and Leasehold Owner subject to the AccomrnodationsJLodging. Fee as. described above shall pay, ar cause to be paid, the AccommodationsLodging Fees owed by such Owner OF Leasehold Owner on a monthly basis on or before the 20th day of the month following the month in which the AccomodationsLodging Fees accrued. Each monthly payment of the AccommodationslLodging Fees made by or on behalf of each Owner and Leasehold Owner subject to such Fees shall be accompanied by a report on a form prescribed by the Company and such other statements, records and other supporting information as the Company may reasonably require. described below shali be payable by either the Owner of th ehddEstate, the LqMehold Owner of such Leaseh any reasosnab& determinestthat a Leasehold E d or agreed*to be paid in 9.3 Real Estate Transfer Fee. Upon the occurrence of any Real Estate Transfer, the Transferee in such Real Estate Transfer shall pay to the Company a Real Estate Transfer Fee equal to the product obtained by multiplying the Consideration paid by the __ 7958 13 Page: 45 of 75 05/08/2002 01 : 13F Sara J Fisher Eagle CO 135 R 375,@0 D 0.00 16 Transferee for the subject Vnit by the Real Estate Transfer Fee Rate determined in accordance with Section 9.5(b) and in effect at the time of such transaction. Each Real Estate Transfer shall be due and payable by the Transferee to the Company at the time of the Real Estate Transfer giving rise to such Real Estate Transfer Fee. With such payment, the Transferee shall make a written report to the Company, on a fonnprescribed by the Company, full the Real Estate Transfer and. setting forth the true, complete and actual Consideration for the Real Estate Transfer, the names of the parties thereto, the legal description of the subject Unit, and such other information as the Company may reasonably require. If there are multiple Transferees with respect to any Real Estate Transfer, each such Transferee shall be jointly and severally liable for the payment of the Real Estate Transfer Fee that accrues as a result of suc Real Estate Transfer. If the transferee in any transfer of any interest in a Unit believes suc transfer does not qualify as a Real Estate Transfer and is therefore exempt from the req~rements of this Section 9.3, such transferee may apply to the Company for a certificate of exemption from the Real Estate Transfer Fee OR a form prescribed by the Company. The burden of proving any transfer of any interest in a Unit is not a Real<Estate Transfer and is therefore exempt from the: requirements of this Section 9:3 is on the transferee in such transaction. 9.4 Retail. SalesFee, The Retail Sales Fee described below shall be payable’ by either the Owner of the subjject5Unit or, if the Unit is subject to a Leasehold Estate, the Leasehold Owner of such Leq&klbEstate; provided, however, that:if the Company reasonably ~ determines that a Leasehukk Estate3 has been granted in a Unit. solely for the circumventing the terns o-f..thris tion Le., insulating the Qwner of the Unit from liability for the Retail Sales Fee act p &- fee titi‘e to the Unit -fTrom lien foreclosure. pursuant ta: Section 10.6(b)), then the Company shall. have the right to disregard such Lewehoicf Estate for. all purposes under this Decksation. The-Company shall continuously. and regularly levy and; collect a Retail Sales Fee, with regard to each Taxable Transaction made, con conducted, transacted or occurring in, on, about or from any Unit, inclBdingf without any Taxable Transaction for which the ,order. is placed by a purchaser tot the Unit from sr. place other that the Unit by any telcphonic or. electronic means. With regar& ta .my Taxable: Transaction that is a Taxable Transaqtio~~ due to any; Use Tax leviehby the To the Unit or the Leaseho property will be used- sh Sales Fee payable to th Price with respect to e pursuant to Section 9.5 and Leasehold Owner subject to the Retail Sales Fee shall pay, or‘ cause to be paid, all of the Retail Sales Fees owed by such, Owner or Leasehold Owner on a monthly basis on or before the 20th day of the month follo\wing the month in which the Taxable Transactions giving rise to such Retail Sales Fees occurred; provided, however, that if the accounting methods regularly used by the Owner or Leasehold Owner subject to the Retail Sales Fee (or the’Person remitting the Retail Sales Fees on behalf of the Owner or Leasehold Owner) or other conditions are such that payment of the Retail Sales Fees on a monthly basis will impose unnecessary hardship on such Owner or Leasehold Owner, as determined by the Company in its absolute discretion, the Company may (but shall have no obligation to) agree to accept such payments at such intervals as better suit the convenience of such Owner or Leasehold Owner without jeopardizing the Coniyany’s collection of the Retail Sales Fees, provided that any such alternative payment of the Leasehold,.Estate, as applicable; on saction by (b)the Re the time of such Tax ~ - -. - - - - ._ ._ 05/08/2002 01:13Fi7 135 R 375.00 D G1.00 Ill Sara J Fisher Eagle, CO interval requires the prior approval of the Service District in its complete discretion. The Company or Service District may at any time withdraw its agreement to allow any such alternative payment interval for the Retail Sales Fees. In addition, no~ithstanding the mon payment provision above, with regard to any Taxable Tr~action that is a Taxable Tr~sacti~ due to any Use Tax levied by the Town on construction materials, the Company may require or permit the Owner or Leasehold Owner responsible for paying the Retail Sales Fee on such Taxable Transaction to make a deposit against the estimated amount of the Retail Sales Fee that will ultimately be owed at the time a building pennit is issued by the Town for the subject construction project. Any such estimated payment shall be made and reconciled against the Retail Sales Fee ultimately owed according to the policies and procedures of the Company in place from time to time. Each payment of the Retail Sales Fees made by or on ~eh~f Owner or Leasehold Owner shall be accompanied by a report on a form prescribed by the Company and such other statements, records and other supporting information as the Company may reasonably require. 9.5 Establishment of the Fee Rates. (a) Accommadations/Lodginn Fee‘ Rate. The percentage rate of the Accommodations/Lodging Fee (the “Accommodations/Lodging Fee Rate”) shall- be established by the Campmy fiom time to time. Without the prior written approval of the Service District and, during the Development Period, Declarant, the AccommodationsLodghg Fee Rate shall not be less than the greater of (a) 4% or (b) the percentage tax rate imposed by the Town pursuant to the Public Accommodations Tax. (b) Real Estate Tmnsfer Fee Rate. The percentage rate of the Real Estate Transfer Fee (the “Real Estate- Transfer Fee Rate”) shall be established by the Company from time to time. Without the prior written approval. of the Service Distiict and, during the Developme‘nt Period; Declarant, the Real Estate Transfe‘er, Fee Rate shall not be less than the greater of (a) 2% or (b) the percentage tax rate imposed by the: Town pursuant to the Real Property Transfer Tax; provided, however, that the Real Estate Transfer Fee Rate shall not be greater +an 3%. The percentage rate of the Retail Sales Fee lished by the Company from time to time. Without the prior written approval of the Service District and, during the Development Period, Declarant, the Retail Sales Fee Rate shall not be less than the greater of: (a) 4% or (b) the percentage tax rate imposed by the Town pursuant to the Sales Tax; provided, however, that the Retail Sales Fee Rate shall not be greater than 6%. 9.6 Fee Records and Audits. Each Owner or Leasehold Owner subject to any Fee shall maintain or cause to be maintaine6 for three years such true, full and accurate invoices, receipts, records, statements, accountings, and books as are sufficient to determine the amount of Fees owed by such Owner or Leasehold Owner over such three-year period (collectively, “Fee Records”). Any director or officer of the Company or the Service District or any other agent of the Company or the Service District, upon prior written notice, shall have the right to examine such Fee Records during the normal business hours of the Owner or Leasehold Owner or the 75 85/08/2802 01 : 13F 38 -a J Fisher Eagle, CO 135 R 375.00 D 0.50 Person maintaining the Fee Records on behalf of the Owner or Leasehold Owner, and if the Fee Records are not maintained in Eagle County, Colorado, the Owner or Leasehold Owner shall cause them to be delivered to Eagle County, Colorado, without undue delay. Without limiting the foregoing, the Company shall also be entitled at any time and &om time to time to have all or any of the Fee Records maintained by or on behalf of an Owner or Leasehold Owner specially audited or examined by a certified public accountant designated by the Company (an “Audit”). The Company may require such accountant to report his or her opinion, based upon generally accepted accounting principles, consistently applied, as to any matters relating to the obligation of the Owner or Leasehold Owner to- pay Fees, including (a) whether the Owner or Leasehold Owner has maintained or caused to be maintained the required Fee Records, (b) whether the Owner or Leasehold Owner has accurately reported or caused to be reported any Fees owe pursuant to Section 9.2, Section 9.3 andor Section 9.4, as applicable, and (c) the Fees paya for any audited period. If such accountant shall report to the Company, based upon the Audit such period, the amount of any overpayment or underpayment of Fees by or on behalf of the Owner or Leasehold Owner, the Company shall deliver a copy of such accountant’s Audit report to the Owner or Leasehold Owner. If the Audit report concludes an overpayment of Fees has been made by or on behalf of the Owner or Leasehold Owner, the Company shall forthwith credit to the Owner or Leasehold Owner or the Person that paid the Fees on behalf of the Owner or Leasehold Owner any amount therein set forth as the overpaid mount: If the Audit report concludes an underpayment of Fees hasbeen made by or on behalf of the Owner or Leasehold Owner, the Owner or Leasehold Owner shallbforthwith pay or caused to be paid to the Company the sum of: (i) any amount set forth in the audit report as an underpayment of Fees; (ii) interest on the amount owed from the time the Fee in question was due at the annual- rate from time to time determined by the Board (but not to exceed21% per year); and (iii) a penaltyequal to 10% of the Fees owed. If such accountant shall report to the Company that the Owner’s or Leasehold Owner’s Fee Records have not been maintained in accordance with the requirements of this Section 9.6, the Owner or Leasehold Owner shall, with 3Udays after delivery of a copy of such report to the Owner or Leasehold Owner, cause its Fee Kecords to conform to the requirements.. of this Section 9.6 so as to permit an accurate determination of the Fees owed. for the audited period. All costs of an Audit incurred by the Company shall bts payable as Specific Assessments by the audited Owner or Leasehold Owner to the Company on demand if Fees for any period as determined by the accountant differ by 2% or more fiom those reported or paid by or on behalf of the Owner or Leasehold Owner. 9.7 Assignment of the Fees to the Service District. Subject to Section 9.9 and the provisions of this Section 9.7, the Company shall assign to the Service District a portion of the Fees (including the right to collect the same pursuant to this Declaration) in an amount not exceeding the aggregate of the amount the Town would collect pursuant to the Sales Tax, the Public Accommodations Tax and the Real Property Transfer Tax but for the waiver of such taxes by the Town pursuant to the Annexation and Development Agreement. The Company shall enter into an agreement with the Service District memorializing such assignment and providing in detail for how such assignment will be made, administered and enforced (the “Fee Assignment Agreement”). The Fee Assignment Agreement may contain such terms, covenants and conditions to which the Company and the Service District agree, including, without limitation, the following: (a) the precise portion of the Fees assigned by the Company to the Service District, consistent with the above-described limitation; and (b) whether the Company will act as . - .. .. --- -- - __ __ - Page: 48 of 75 05/08/Z002 01 : 13F 39 J Fisher Eagle, CO 135 R 375.00 D 0.00 the servicer on behalf of the Service District for the purpose of collecting the Fees and what fee the Company will receive for providing such service. The Fee Assignment Agreement sh be amended or modified except in accordance with Section 16.3. In the event of any app~ent or potentid conflict between the terms of this Declaration and the terns of the Fee Assi Agreement, then, to the greatest extent possible, such apparent or potential conflict shall be resolved in favor of the terns of the Fee Assignment Agreement, with this Declaration being interpreted in a manner that is in harmony with the terms of the Fee Assignment Agreement. By accepting title to a Unit or a Leasehold Estate, each Owner and Leasehold Owner acknowledges: (i) that the Service District will use the revenues it obtains under the Fee Assignment Agreement to finance the construction and maintenance of public improvements and i&astructure that will directly benefit the Units and the Property; and (ii) that the obligation to pay the Fees pursu~t to * ng with the land as well, as a personal contractual obligation of Owners and Leasehold Owners. 0 this Declaratim touches and concqrns3he Property and the Units an4 is a real covenant 9.8 Waiver of Fees. With the pnor written approval of the Service District and, d-g the Development Period, * Declarant (which may be withheld in the absolute discrdtion of either of them), the Company may waive any Fee as it applies to an Owner or LeasehoId Owner or a particular class oE Owner& or Leasehsld Owners if the Company, in its es that exigent circumstances exist that j such waiver. Any or conditiuned in any manner as determin thecompany in its ither the Service District or Declarant & a condition to granting the approval for the waiver. The granting of zt waiver as to any Fee under entitlement to a aiver. shall be obligated to levy the Fees pursuant to $his Article 9 and assign them to the Service qt, m’pmvided in Section 9.7, until the Town dissblves the FinancingDistrict and the Service. I)i*;ric$ pxsuqpt to Section 4.7 of the Annqxatiani hd. Development Agreement. Notwithst for$oin$ if the Company is authorized- tot discontinue collecting the Fees pursuant &q@entence and the Town desirestcr. begin imposing any tax under the Municipal nt to any such Fee (e.a., .the &ed Property Transfer Tax would be consi f the Real Estate Transfer Fee); but is prevented from collecting such t ection 20, of the Constitution of the State of Colorado, the Company shall not discontinue collecting such Fee and shall remit the payments collected pursuant to such Fee to the Town as required by the Annexation and Development Agreement. . not create in any Owner or- Leas any other waiver, whether similar or 9.9- Discontinuation of the Fees. The Co ARTICLE 10 ENFORCEMENT OF ASSESSMENTS AND FEES 10.1 Notice of Leasehold Estates. Each Owner of a Unit that is subject to a Leasehold Estate and each Leasehold Owner that has created an additional Leasehold Estate by operation of a sublease shall: (a> provide written notice in the written instrument creating such Leasehold Estate of the existence of this Declaration and the Recording information for this Declaration; and (b) as soon as practicable but in no event later than 10 days following creation - -- Page: 49 of 75 05/08/2002 01 : 13 .00 D 0.00 of the Leasehold Estate, provide the Company with: (i) written notice that the Leasehold Estate has been created; (ii) a memorandum or abstract of the lease or sublease creating such Leasehold Estate that describes the materials terms thereof; (iii) the name and address of the Lgasghold Owner of the Leasehold Estate; and (iv) any other info~ation the Com~any reasonably r concerning the Leasehold Estate or its Leasehold Owner. If such Owner or Le~ehold fails to provide written notice of this Declaration as provided in clause (a) above or fails to deliver to the Company the information described in clause (b) above, the Company shall have the option to consider all Fees owed to the Company by the subject Leasehold Owner to be the obligations of the Owner of the Unit or the Leasehold Owner acting as the sublessor for all purposes under this Declaration. Q 10.2 . Each Owner and Leasehold ~~er shall pay, or cause to sessed against such Owner’s Unit or Leasehold Owner’s Leasehold Estate, p applicable, by the Company in accordance with the terms of this Declaration. Each Assessment arid Fee is a separate, distinct and personal debt and obligation of the Owner or Leasehold Owner, as. applicable, agkst whose Unit or Leasehold Estate the Assessment or Fee is levied. All Assessments’ and Fees are payable in full without offset for any reas . Th& obligation- to pay Assessinents and; Fees is entirely independent of any Company to the Owner or Leasehold Owner or of Declarant or any other Owner er or Leasehold Owner. No Owner ~rLe&hdd Owner may exempt itself from* Fee by non-use of $Corntan ,Elements, abandonment of its other means.‘ Any Assessment or Fee. or installment oE an As Q;days after it bec;+mesdue isdelinquent, If an Assessmqbt ssessment or Fee is delinquent, the Corhpany may. recover all of the following (collectively, the “”Delinquerlcy Costs”): (a) interest from the date me to time by.the Board (but not to exceed 21% pel;- year); (b) imposed by the Co ith any and all o described. in Sectiun- 10.3 A betaw. Declaration and d. enforcement costd, Each elinquency Costs Leaseho€d- Estate;’ as applicable, against particuiarly provided in Section 10.5. applicable Delinquency Costs, also shall be the wner or Leasehold Owner of such Unit or Leasehold Estate at the time the Assessment or Fee and the applipable Delinquency Costs arose. Were the Owner or Leasehold Owner consists of multiple Persons, each such Person shall be jointly and severally liable for each and every obligation of the Owner or Leasehold Owner. 10.3 Delinquency Notice. If any Assessment or Fee or installment .of any Assessment or Fee is delinquent, the Company shall notify the Owner or Leasehold Owners of the delinquency and state in the notice: (a) the amount and due date of the delinquent Assessment or Fee or installment thereof; (b),the Delinquency Costs accrued to date; and (c) the date by which the delinquent Assessment .or Fee installment thereof and all associated -Delinquency Costs must be paid. 13 of 75 05/08/2002 01 : 13y1 Sara J Fisher Eagle, GO 135 R 375.00 D 0.00 10.4 Acceleration. If the Company gives the written notice required by Section 10.3 with respect to a delinquent Assessment or Fee that is payable in regular ~ifo~ installments a, a Common Assessment) and the Owner or Leasehold Owner responsible for such Assessment or Fee does not pay, or cause to be paid, such del~n~uent Ass~ss~~nt or Fee (including all associated Delinquency Costs) in full by the due date specified in the notice, the Company may declare all unpaid installments of the subject Assessment or Fee for the current Fiscal Year of the Company to be immediately due and payable in full without fixther demand or notice and may enforce the collection of @e Assessment or Fee (including any associated Delinquency Costs and any installments that were so accelerated) in accordance with Section 10.6, subject, however, to the protection dforded First Mortgagees p~sua~t to Section 10.5. 10.5 e Company has an automatic lien against each Unit an , to secure payment of all Assessments, Fees and associated Delinquency Costs levied by the Company against such Unit or Leasehold Estate. Such lien shall be perfected upon the Recording of this Declaration, and no further. claim of lien shall be required. Notwithstandmg the' foregoing. and without limitation on the automatic lien against each Unit or Leas&ol& Estate established hereby, the Company has the right, but not the obligation, to prepare and Record P "Notice of Lien" setting forth (i) the amount of any Assessment, Fee or Delinqqency Costs or other amount due and owing to the Co'mpany; (ii) the date SUG~ amount was due and'payahle and the date from which interest accrues; (iii)all Delinquency Costs accrued as-of the date OE Recording of such Notice" of Lien< (iv) the Unit or Leasehold Estate affected by the-lien; an4 (v) the name or names, last known to the Company, of the subject Owner or Leasehold OWQL The automatic lien of the Company against each Unit and Leasehold Estate established and perfected by this Section 1 0.5-shall be superior to all other liens and encumbrances, except (a) liens and encumbrances Recorded before this Declaration; (b) liens for real estate taxes and other govemental assessments or charges against the Unit or Leasehold Estate;. an subject to- the limited' priority established.; in favoB of the Company pursuant to Sectioni3 (b)(l): of thq Act, any First Mortgage on -the Unit-that was Recorded before the date on which the Assessment or Fee OP instablment thereof the Company is seeking to enforce- became- delinquent. Subject to the limitations of the ipreceding sentence; the sale, transfer or assignment of any Unit or Leasehold 'Estate shall not affect the lien fix any existing delinquent Assessments or Fees. 10.6 Enforcement of Assessments and Fees. The amount of any delinquent Assessments or Fees (incl any installments accelerated by the Company pursuant to Section 10.4) and- associat linquency Costs may be enforced against the Owner or Leasehold Owner liable for them in%either or both of the following ways, at the option of the Company (which shall not be exclusive of any other remedies or enforcement rights available to the Company at law or in equity): (a) Suit. The Company may bring a suit or suits at law to enforce the Owner's or Leasehold Owner's obligation to pay a delinquent Assessment or Fee (including any installments accelerated by the Company pursuant to Section 10.4) and associated Delinquency Costs. -Each action will be brought in the name of the Company. - .._ - - __ - _.__ -_ _- - - 05/Q8/2002 01:13F ara J Fisher Eagle, CO 135 R 375.00 D 0.00 42 Upon full satisfaction of the judgment, the Company, by one of its officers, will execute and deliver to the judgment debtor an appropriate satisfaction of the judgment. (b) Lien Foreclosure. If the Company gives a notice conce~ing delinquent Assessment or Fee that substantially complies with the provisions of Section 10.3 and the delinquent Assessment or Fee is not paid in flu11 by the due date specified in such notice, then the Company may foreclose, in the same manner as the foreclosure of a mortgage under the laws of the State of Colorado, the lien established in Section 10.5 securing the Assessment or Fee, any installments accelerated by the Company pursuant to Section 10.4, and any associated Delinquency Costs. The Company may bid for a Unit or Leasehold Estate at any foreclosure sale, pay alj or of the bid amount by crediting the lien amount against the bid, and acquire, hold, lease, mortgage, convey or assign such Unit or Leasehold Estate. While aUnit is owned by the Company following foreclosure: (a) no right to vote shall be exercised on behalf of the Company as the Owner of such Unit; and (b) no Assessments shall be levied against such Unit; and (c) each other Unit sMl be charged, in addition to its usual Assessments, its pro rata share of the Assessments that would have been charged the Unit acquired by foreclosure had such Unit not been acquired by the Company. 10.7 Reallocatim, If any Assessment or Fee Eemains unpaid. for more than six months after it is first due, the Company may treatcthe unpaid Assessment or Fee as a Common Expense to be assessed against. all Units; provi@ed; however, that if ,the Company subsequently collects all or any part of the unpaid Assessment or Fee, ‘through foreclosure of its lien- or otherwise, then any Owner who has paid a portion. of the unpaid Assessment or Fee as a Common Expense is entitled to a credit (in an mount equal to its pro rata-share ofthe amount of the unpaid Assessment or Fee subsequently.co1lected by the Company) against any Common Assessments subsequently due fiorn that Owner. 10.8 Disputes and Records. Any Person responsible for paying Assessments or Fees may inspect the books and records ofthe Company during regular business hours upon reasonable prior notice. If such Person disputes the amount of any; Assessment or Fee paid or payable by such Person and is unable to resolve the issue through an inspection of the Company’s books and records, the Person will continue to pay in a timely manner the full amount of the disputed Assessment or Fee until, if ever, it is finally determined that the amount is incorrect (in which case the Company will promptly rehd any overpayment). If the Person fails to pay the disputed Assessment or Fee while the dispute is pending, the Company may immediately pursue any of its remedies for the fitilure (including, without limitation, suit against the Person andlor foreclosure of the Company’s lien against the Person’s Unit or Leasehold Estate, if and as applicable), and the pendency of the dispute is not a bar or defense to any actions by the Company. 10.9 Certificate. Within 14 calendar days after receiving a written request from any Owner, Mortgagee or a designee of either of them, delivered personally or by certified mail, first-class postage prepaid, return receipt requested, to the Company’s registered agent, the Company will hrnish to the requesting party, by personal delivery or certified mail, first-class - -- .. __ postage __ prepaid, __ return - receipt requested, a - -_ certificate executed on behalf of the Company and \ 05/08/2002 01:13F Sara J Fisher Eagle, CO 135 R 375.00 D 0.00 j addressed to the requesting party, stating any then unpaid Assessments or Fees due from the requesting Owner or the Owner of the Unit encumbered by the requesting Mortgagee’s Mortgage, or stating that there are no unpaid Assessments or Fees due from such Owner, as the case may be. A certificate hished by the Company pursuant to this Section 10.9 is binding on the Company, the Board and every Owner. Such Owner’s Unit shall not be subject to a lien for any unpaid Assessments or Fees against the Unit to the extent that (a) the lien arises before the date of the certificate and the amount of the lien exceeds any unpaid amounts stated in the certificate, or (b) if the Company does not Msh a certificate pursuant to this Section 10.9, the unpaid Assessments or Fees are due as of the date of the request. The Company may charge the Owner of any Unit for which such a certificate is furnished pursuant to this Section 10.9, and the Owner will pay, a reasonable fee for the preparation of the certificate in an ~ount deter~ined the Board from time to time. ARTICLE 11 MAINTENANCE 1 1.1 Company’s Remonsibilities. (a) Maintenance of Common Elements, The Companx shall maintain and keep in good repair the Common Elements, which may include, but need not be limited to, all of the potential CommonElements listed in Section 4.8. (b) Maintenance of Other Prouerty. The Company may maintain other property which it does not own, including, without limitation, any property that has been transferred to the Town or dedicated to the public, if the Board determines that such maintenance is necessary or desirable to maintain the appearance or image of the Property as an attractive, clean and: well-maintained development project. (c) Operation. of Facilities. The Company shall maintain the Improvements, facilities and equipment, if any, within the Common Elements in continuous operation, except for any periods necessary, as determined in the sole discretion of the Board, to perform required maintenance or repairs. The Common ,Elements shall not be reduced during the Development Period by amendment of this Declaration or any other means except with the prior written approval of Declarant. (d) Election to Perform Owners’ Duties. The Compaiy may elect to maintain or repair any Unit or portion thereof or Improvements thereon, the maintenance or repair of which is the responsibility of an Owner pursuant to Section 1 I .2, if (i) such Owner has failed, for more than 30 days after notice from the Company, to perform its responsibilities under this Declaration with respect to the maintenance or repair of its Unit (provided, however, that no such 30-day notice period will be required in the case of emergencies), and (ii) such failure has a material effect on the appearance of such Unit when viewed from any area outside such Unit or has a material adverse effect on the use of another Unit or any Common Element for its permitted and intended use; provided, however, that if such failure is not susceptible of being cured within such 30-day period, - __ Page: 53 of 75 05/@8/2002 01:13 q4 Sara J Fisher Eagle, GO 135 R 375.00 D 0.00 the Company will not be entitled to perform any repairs or maintenance if such Owner commences performance of its obligations within such 30-day period and thereafter diligently completes such performance. Such Owner will pay as a Specific Assess~ent all costs reasonably incurred by the Company in accordance with 1 1.2 Owner’s Responsibility. (a) Maintenance and Repair of Unit. Each Owner shall maintain its Unit and Improvements on the Unit and-perform all required repairs of such Unit and Improvements. ) osts of repair or replacement of any portion of the Property Darnages Caused by Omers. Each wner will pay as a Speci~c Assessment a1 damaged or destroyed by reason of the miscanduct or negligence of such Owner or any of its Permittees. 1 1.3 Maintenance Standard. Unless otherwise specifically provided herein or in other instruments creating and assigning such maintenance responsibility, responsibility for maintenance shd€ include responsibility for repair and replacement, as necessary. All maintenance shall; be performed in a manner1 consistent with the quality $01 maintenance prevailing within The Village (at Avon) and all applicable covenants, NeitheF the- Company nor be €iable for any damage or injury occurring on or +sing out of the condition of t does not own, except pursuqntLto Section 11.2(b) OF to the extent tha% it has been negligent in the performance of its maintenance responsibilities. 11.4 -Party Struct,ures. Each wall, fence, .driveway or similar structure, or portion thereof, .built as a part of the original- constructioo om the Units which serves and/or separates any two adjoining Units- shall *constitute a*party structure. TCP the extent not inconsistent wi& the provisions of this;Sectioa 1 1.4, the laws of the State oE Colorado regarding party walls and liability for property damage due to negligence or willful acts Qr omissions shall apply theretp. Thq’cost ofreasonable repair and maintenance of a party str@we shall be shared equally hy the ;Owngrs who make use of the ?+curitv, The Company may, but shall: not be ob€iigated to, maintain or support certain activities’ on the Property designed to make the Property safer than it otherwise might be. Neither the Company nor Declarant shall in any way be considered an insurer or guarantor of security on the Property, nor shall any of them be held liable for any loss or damage by reason of failure to provide adequate security or ineffectiveness of security measures undertaken. No representation or warranty is made thatany fire protection system, or security system or measures, cannot be compromised or circumvented, nor that any such system or security measure undertaken will in all cases prevent loss or provide the detection or protection for which the system is designed or intended. Each Owner acknowledges, understands and covenants to inform his or her Permittees that the Company, the Board of Directors and committees thereof, and Declarant and any successor Declarant are not insurers and that each Person using the Property assumes all risks of personal injury and loss or damage to property, including Units and Improvements and the contents of Units, resulting from acts of thrd parties. structure. 11.5 ._ - 05/08/2002 01:13F ,? ara J Fisher Eagle, GO 135 R 375.00 D 0.00 ’ 43 ARTICLE 12 USE ~ST~CTIO~S 12.1 Mineral Ouerations. No oil or gas drilling, oil or gas dev~lo~~ent operations, oil refining, quarrying or mining operations of any kind shall be permitted on the Property. 12.2 Unsightly or Unkempt Conditions. All portions of a Unit outside of enclosed structures shall be kept in a clean and tidy condition at all times. Nothing shall be done, ~~ntained, stored or kept outside of enclosed structures on a Unit which, in the dete~inati~n of the Board, causes an unclean, ~~al~hy or untidy co~dition to exist or is obnoxious LO senses. Any structures, equipment or other items which may be permitted to be erected or place on the exterior portions of Units shall be kept in a neat, clean and attractive condition and shall promptly be removed upon request of the Board if, in the judgment of the Board, they have become rusty or dilapidated or have otherwise fallen into disrepair. No Owner or Permittee shall dump grass clippings, leaves or other debris, pet’roleum products, fertilizers or other- potentially hazardous or toxic substpces in any drainage ditch, stream, pond or lake or elsewhere on the Property. 12.3 OuieP Eniovment, Nothing shall be dorie or maintained on any.part of if Unit that emits foul or obnoxious. od outside the Unit or creates noise or other-conditions that tend to disturb the peace, quiet; s omfort or serenity of the,Owners and Permittees of other Units. In addition, no noxious or offensive activity shall be carried on upon any Unit nor shall.. anything be done or placed on my Unit that is or may become a nuisance or cause any significant embarrassment, disturbance or annoyance to others. As used herein, the term “noxious or offensive activity:’ shall not include any. activities that- are reasonably necessary to the development of and construction of a Unit‘s0 long-as-such activities do not vialate the statutes, rules or regulations of any gavemental- authority having jurisdiction with respect thereto and do not.unreasopably inte~eFe with the permitted use of another Unit or with any Owner’s or Permittee’s ingress an& egress to or &om a Unit. Wetlands, Lakes and Other Water Bodies. The Compmy shall have the, right to regulate‘ use of all wetlands, lakes, ponds+an&stre@s on the Property owned by the Company, if any. The Company sh41 not be responsible for any loss,hdamage or injury to any person or property arising out of the authorized or unauthorized use of any such wetlands, lakes, ponds or streams. 3 ,’ 12.4 12.5 Firearms, Fireworks and Explosives. Except as permitted under Section 12.6, the discharge of any firearms, fireworks or explosives on the Property is prohibited. The term “firearms” includes “B-B” guns, pellet guns and other firearms of all types, regardless of size. Notwithstanding anything to the contrary contained herein or in the Bylaws, the Company shall not be obligated to take action to enforce this Section 12.5. 12.6 f--. Hunting, killing, trapping or poisoning of wildlife on or from the Property shall be prohibited except to prevent imminent danger to human life or unless 46 iara J Fisher Eagle, GO 135 R 375.00 D 0.00 conducted by or at the direction of the Company or the Colorado Division of Wildlife or other law enforcement or public officials having jurisdiction to protect human life or property, reduce ove~opulation or eliminate nuisances or as may otherwise be required by law. Fire discharged from the Prope~ in erance of the wildlife con~ol measures pe~itt Section 12.6. * 12.7 No Harassment of Wildllfe. Except as permitted under Section 12.6, no harassment of wildlife is permitted on or fkom the Property. With the exception of bird feeders, any means of feeding, baiting, salting or otherwise attracting wildlife to individual yards or Common Elements is prohibited. Without biting the foregoing or any other provision of this Declaration, the Units and all other areas of the Property shall be used in a manner that co~plies with the Wildlife ~itigation Plan. 12.8 No Hazardous Activities. No activities shall be conducted on any Unit and no Improvements shall be constructed on any Unit that are or might be unsafe or hazardous to any natural Person or property. Withou@limiting the generality of the foregoing, no outdoor fires shall be lighted or permitted on aiy Unit except in a contained barbecue grill while attended. and in use for cooking purposes. 12.9 Laws and OrdindcZs. Every Owner and Permittee shall comply with the PUD and all laws, statutes, ordinsinces‘ and rules of federd, state, local and municipal governments applicable to the Propeyty. Any violation. may be considered,a violation of this Declaration. However, the Company shall- have no obJigation to take action to enforce such - laws, statufes, ordinances and rules. 12.10 Storage of Recreational Vdhicles. Mobile homes, recreational vehicles, travel trailers, tent trailers, trucks (exceptGpichp. tmcks, used for personal, and not commercial transport), snowmobiles, go15 carts, boats, boat5 trailers, tractors, detached campers, camper shells, snow removal equipmc;nt and gaden or maintenance equipment shall be kept in an enclosed structure at all times, exce@ when imactual. use; provided that such equipment rn-yae parked on parking lots or other areas specifically designated by the Company for such equipment. 12.1 1 Use of Recreiitionzil Vehicles. No motorcycle, go-cart, snowmobile, all terrain vehicle, golf cart or other’motorizqd gecreational vehicle shall be operated within or on the Property for recreational purposes. Motorcycles and similar vehicles licensed by the State-of Colorado for. use on public streets and highways that are driven on paved roadways or dirt roads designated by the Company for vehicular use shall be permitted. In addition, the use of motorized vehicles to provide, or facilitate the providing of, security, monitoring, maintenance and similar services shall be permitted. 12.12 Trash Containers and Refuse. Refuse, garbage and trash shall be kept in a covered container at all times and any such container shall be kept within an enclosed structure except on the days of pick-up by a waste management service. No lumber, grass, shrub or tree clippings or plant waste, compost, metals, bulk materials or scrap or refuse or trash or unused 135 R 375.00 D 0.00 47 Bra J Fisher Eagle, GO items of any kind shall be kept, stored or allowed to accumulate on any Property except for during short time periods (in no event longer than 24 days) pending removal from 12.13 Clotheslines. Service areas and facilities for hanging, drying or airing e lo thing or fabrics shall be kept within an enclosed structure. 12.14 pets. No Outdoor Pets may be kept on any Unit except as permitted by the Company. The Company shall have no obligation to permit any Owner or Permittee to have or keep any Outdoor Pet. Without limiting the foregoing: (a) no animals of any kind shall be raised, bred or kept on or within any Unit for any commercial purposes (except within an enclosed retail structure from which pets are sold to retail customers (k, a “pet store”)); and no dog or cat shall be permitted to roam within the Property except under the direct ~~ua control and supe~ision of its owner or keeper. 12.15 Lights and Sounds. No light shall be emitted from any Unit which is unreasonably bright or causes unreasonable glare or shines directly 0nto.m adjacent Unit. No sound shall be emitted fiom any Unit which is unreasonably loud or annoying. 12.16 Variances and Rezoninns. No Owner shall apply for or permit another Person to apply for any variance or rezoning.concerning the Owner’s Unit gr any portion thereof without the\ prior written consent of the C .and, ,during the Development Period, which consent may be denied or wi $he absolute discretion of the Company 12.17 Excelltion for Constructian. During the course of actual construction of Improvements, the above use restrictions of this Article 12 shall not apply to the extent reasonably necessary to pewit such construction to be undertaken in a reasonable manner, provided that nothing is done or occurs during the perio&of construction that will result in the violation of any such use restriction upon the completian ofsuch construction or extraction. ned in this Declaration shall be id Declarant Rights; or (ii) the agents, of temporary structures, evelopment, marketing or sale of construed to prevent erection or mainten trailers, impro property within The Village (at Avon). ARTICLE 13 INSURANCE, DAMAGE AND TAKINGS 13.1 Corn~any’s Insurance. (a) Required Coverage. The Company, acting through the Board or its duly authorized agent, shaI1 obtain and continue in effect the following types of insurance if reasonably available or, if not reasonably available, the most nearly equivalent coverages as are reasonably available: _____._____ ___~ - -- .. llllll Ill 1111”‘ “ ‘is‘ 7950 Page: 57 of 75 ! I 05/08/2002 01:IJq --. .-. .I_. 135 R 375.00 D 0.00 Sara J Fisher Eagle, GO 48 (i) Blanket “all risk” property insurance covering any insurable Improvements owned by the Company. The Company shall have the authority to insure any property for which it has ~~nten~ce or re~air responsibility, regardless of o~ers~p. All property insurance policies obtai~e by the Company shall have policy limits su~icient to cover the full replacement cost of the insured Improvements. (ii) Commercial general liability insurance on the Common Elements, insuring the Company and the Members against damage or injury caused by the negligence of the Company or any of its Members, employees, agents or contractors while acting on its behalf. If generally available at reasonable cost, the commercial general liability coverage (including primary an any umbrella coverage) shall have a limit of at least $5,000~000.00 per occurrence with respect to bodily injury, personal injury and property damage. (iii) Workers’ ,compensation insurance and employer’s liability insurance to the extent required by law. (iv) Directors’ and :officers’ liability coverage in am amount determined by the Board. (v) Fidelity insurance covering al€ Persons responsible for handing Company funds in an amount not less than $1,000;000.00 plus two months’ Assessments plus all reserves on hand? and containing a waiver of all defenses based upon the exclusion -‘of Persons serving without compensation; provided, however, that if fidelity insurance in such amounts is not available on reasonable terms, the Association may maintain a lesser amount of coverage to the extent reasonably available. In addition, if, pursuant to the Fee Assignment Agreement, the Service District directly collects’on its own behalf the Fees assigned to it pursuant- to Section 9.7 above and the Fee Assignment Agreement, then the fidelity insurance maintained by the Company shall-only need to be in an amount not less than two months: Assessments plus all reserves on hand. (vi) ’Such additional insurance as the Board determines advisable, which may include,‘ without limitation, automobile insurance, flood insurance, boiler and machinery insurance and building ordinance coverage. (b) Policy Requirements. All Company policies shall provide for a certificate of insurance to be hished to the Company and, upon request, to any Owner or Mortgagee. Each policy may provide for a deductible which may not exceed the lesser of $10,000.00 or one percent (1%) of the policy face amount, and the amount thereof shall not be subtracted from the face amount of the policy in determining whether the policy limits satisfy the requirements of Section 13.1(a). Premiums for all insurance maintained by the Company pursuant to this Section 13.1 shall be Common Expenses and shall be included in the Common Assessment. In the event of an insured loss, the deductible shall be treated as a Common Expense in the same manner as the premiums __ Page: 58 of 75 05/08/20612 @1:13F 49 135 R 375.@Q D Q.00 for the applicable insurance coverage. However, if the Board reasonably detemines, after providing notice and an opportu~ty to be heard in accordance with the Bylaws, that the loss is the result of the gence or willful misconduct of one or more Owners or their Permittees, then the any may specifically assess the deductible against such Owners and their Units as Specific Assessments p~suant to Section 8.6. All insurance coverage obtained by the Company shall: (i) State of Colorado; be written with companies authorized to do business in the (ii) be written in the name of the Company as (iii) be written as a primary policy, not contributing with and not supplemental to the coverage that any Owners, occupants ar their Mortgagees may-cany in&vidually; (iv) include an inflation guard endorsement, as applicable; (v) include an agreed amount endorsement, if the policy contains a co-insurance clause; (vi) provide that each-Owneg is an insured-person under the policy with respect to liability arising out of such Owner's membexship in the Company; (vii) include an endo&emqnt prec iinvalidation, suspension or non-renewal by the insurer on a defect or violatim or any act or omission of any Owner, to the Company to cure the defect, violation, act or omission and q of a reasonable time tg effect such cure; (viii) include an endorsement precldhg cancellation, invalidation or condition to recovery under the policy on acm omission of any Owner, unless such Owner is acting within authority on behalf of,the Company; and (ix) include an endorsement requiring at least 30 days' prior written notice to the Company, and to each Owner and Mortgagee to whom a certificate of insurance has been issued, of any cancellation, substantial modification or non-renewal. (c) .Other Policy Provisions. In addition, the Company may use reasonable efforts to secure insurance policies which list the Owners as additional insureds qtd provide: _-_- 795813 ' Page: 59 of 75 05/08/2002 01:13F 5.00 D 0.00 50 (i) a waiver of subrogation as to any claims against the Board, the officers or employees of the Company, and the Owners and their (ii) a waiver of the insurer7s rights to repair and recons instead of paying cash; (iii) an endorsement excluding Owners’ individual policies from consideration under any “other insurance” clause; (iv) a cross liability provision; and (v) a provision vesting in t adjust losses; provided, however, no Mortgagee having an inte may be prohibited from participating in settlement negotiations, if any, related to such losses. 13.2 Dabaye and Destruction. (a) Property Insured bv Company. (i) Iminediatqly after damage or destruction to all or any part of the Property covered by insurance written in the name of the Company, the Board or its dyly authorized agent shall. file and adjust all insurance*claima and obtain reliable and,+detailed estimates of the cost of repair or reconstruction, Repair or reconstruction, as used in this paragraph, means the repair or restoration of the damaged property to substantially the condition in which it existed- prior to the damrige, alhwing for changes necessitated .by changes in applicable building codes. ’ (ii) Any dhage to or destruction of the Common ’Elements shall be repaired or reconstructed unless: (i). a decision not to repair or recanstruct is made by Members representing atileait 67% of the totalvote in the Company, and, if the damage or destruction occurs during the Development Peridd, the vote of Declarant; (ii) repair or reconstruction would-be illegal under any stateor Zacal: statute governing health and safety; .or (iii) the large planned community established by this Declaration is terminated pursuant to Section 17.2(b). (iii) If the damage or destruction to the Common Elements will not be repaired or reconstructed pursuant to Section 13.2(a)(ii) and no alternative improvements are authorized, the affected property shall be cleared of all debris and ruins and thereafter shall be maintained by the Company in a neat and attractive landscaped condition. (iv) Any insurance proceeds attributable to damage to Common Elements will be applied to the costs of repair or reconstruction (if any) and then, if any insurance proceeds remain, distributed among all Units in proportion to their Common Allocations. - 05/08/2002 01 : 13F 5 1 a J Fisher Easle, CO 135 R 375.00 D 0.00 (v) If insurance proceeds are insufficient to cover the costs of repair or reconstruction? .the Company may, without a vote of the Members, Special Assessments to cover the shortfall. (vi) Each Unit will continue to be subject to Assess~ents following any damage to any portion of the Common Elements, without abatement as a result of such darnage. (b) Property of Owners. Each Owner covenants and agrees that in the event of damage or destruction to structures on or comprising such Owner’s Unit, the Owner shall proceed promptly to repair or reconstruct such structures in a m cons~stent with the original construction or such-other plans and specifications as are approved by the Design Review Board and the Town and pursuant to all other applicable land use regulations. The Owner shall pay any costs of such repair and reconstruction or clearing and maintenance which are not covered by insurance proceeds. 13.3 Takinps. (a) Taking of all or any part of ‘my egotiating with the’ condemning 1 be entitled to receive such award: ‘t or portion thereof have been t is acquired‘ by a Taking; the storation of its Unit as necessary to retun the Unit to a safe and lawful cdnditiosthat does-not adversely affect the use or enjoyment of the other Units or Common Efements or detract from the general character or appearance of the Property. Unit, the Owner there authority concerning ,after the liens of all Mortgagees sfied or otherwise discharged.- wner of such Unit will ;be. respo (b) (i) Each Omef shall ‘be entitled -to written notice of any thereof. The Company will be solely authorized to negotiate with the ng, the amount of thq acquires any Common Elements or portion thereof wi+aut also acquiring 100% of the Units, and the acceptance of such award by the Company will be binding on all Owners. Any award made for such Taking shall be payable to the Company as trustee for all Owners and shall be disbursed as set forth in Sections 13.3(b)(ii) and 13.3(b)(iii). Notwithstanding the foregoing, no Comrnon Elements shall be conveyed in lieu of and under threat of condemnation withaut the approval of the Board, acting on the written direction of Members representing at least 67% of the total vote in the Company and, during the Development Period, with Declarant’s consent. (ii) If the Taking involves a portion of the Common Elements on which Improvements have been constructed, the Company shall restore or -. .~ -- 3 Page: 61 af 75 ’ 05/08/2002 01:13F 135 R 375.00 D 0.00 j2 replace such Improvements on the remaining land included in the Common Elements to the extent available, unless within 60 days after such Taking Members representing at least 67% of the total vote in the Company and, if the Taking occurs during the Development Period, Declarant shall othe~ise agree. Any such construction shall be in accordance with plans approve Company. If the award made for such Taking is insufficient to cover the costs of restoration or replacement, the Company may, without a vote of the Members, levy Special Assessments to cover the shortfall. (iii) If the Taking does not involve any Improvements on the Co~on Elements, or if a decision is made not to repair or restore, or if net funds remain after any such restoration or r~plac~m~nt is complete, net fbnds shall become an asset of the Company. ARTICLIE: 14 MORTGAGEE PROVISIONS 14.1 No Prioritv. No provision of this S)eclarat?on or the Bylaws gives or shall be construed as giving any Owner or other party priority over any rights of the First Mortgagee of any Unit in the case of distribution to such- Owner of insurance proceeds or condemnatipn awards for lasses to or a Taking of the Common Elements. 14.2 Notice to Mortga-. Upon redeipt by the Company of a written request for natiqes as described in Section 2.33, any Eligible Hulder who provides such request will be entitled to timely written notice of: (a) Any condemnation loss or ~asudty -loss that affects a material there is a First Mortgage held, portion of the Property or that affects any Unit on insured or guaranteed by such Eligible: Holder; (b) Any delinquency in the, s or charges owed by a Unit subject to the Mortgage of such Eli h delinquency has continued for aperipd of 60 days after notice of sac been delivered to the Owner, or any other violation of this Declarationxor the Bylaws relating to such Unit or the Owner or occupant thereof which is not cured within 60 days of notice of such violation; (c) Any lapse, cancellation or material modification of any insurance policy maintained by the Company. ARTICLE 15 CONVEYANCING AND ENCUMBRANCING 15.1 Units. A description of any Unit in accordance with the requirements of Colorado law for the conveyance of real property will, if included in an otherwise proper __ _. -- Page: 62 of 75 I 05/08/2082 01 ; 13G53 5.00 D 0.@Q instrument, be sufficient for all purposes to sell, convey, transfer, encumber and otherwise affect not only such Unit but also all easements, rights and other benefits app~en~t thereto as provided in this Declaration. Company of his or her o~ers~p of a Unit. An Owner may encumber she sees fit, subject to the provisions of this Declaration. A Person who becomes an Owner will promptly noti 15.2 Common Elements. The Common Elements or portions thereof may be conveyed or subjected to a lien or security interest in accordance with the Act, with the written approval of Owners to whom are allocated at least 67% of the votes in the Company, including at least 67% of the votes in the Company allocated to Units not owned by Declarant. Such conveyance or encumbrance will not affect the priority or validity of pre-existing encumb Any net proceeds from the sale of any portion of the Co~on Elements will be an asset of the Company. ARTICLE 16 MNDMENT 16.1 Reauired Votes. (a) Declarant, without the vote or cQnsent of the Board or the Owners, may mend this Declaration to correct clerical, typographical or technical errors, (b) Declarant, without the vote or consent of the Board Qr the Owners, may amend this Declaration to comply with the requirements; standards OF guidelines of recognized secondary mortgage markets, the U.S. Department of Housing- and Urban Development, the Federal Housing Administration, the Veteran’s Administration, the Federal Home Loan Mortgage Corporation, the^ Government National Mortgage Company, or the Federal National Mortgage Company. (c) Declarant, without the vote or consent of the Board or the Owners, may amend this Declaration from time’ to time to exercise any Special Dqclamnt Rights contemplated by or permitted under Section 6.1. (d) Amendments to this Declaration that, under the Act, may be made by the Company without the approval of the Owners may be so made by the Company, subject, however, to any required consent in favor of any Person expressly required by this Declaration. (e) Except as otherwise expressly permitted under this Declaration and the Act, any amendment to this Declaration that increases the Special Declarant Rights, increases the number of Units, changes the boundaries of any Unit, or changes the allocated interests of any Unit requires the unanimous approval of all the Owners. (f) Except as otherwise expressly permitted under the Act, any amendment ~- to - this - . Declaration . that .. changes I the uses to which any Unit is restricted I Page: 63 of 75 05/08/2002 01:13F Sara J Fisher Eagle, GO 135 R 375.00 D 0.00 54 requires the vote or written agreement of the Owners of Units to which at least 67% of the votes in the Company are allocated and, during the Development Period, Decl~ant. (g) Any ~endment to Declaration that changes a spe of affi~ative votes for action or provision prescribing a certain percent under that clause or provision shall require the affirmative vote of those Owners of Units to which at least that percentage (as prescribed in that clause or provision) of the votes in the Company are allocated. (h) Any amendment to this Declaration that changes a specific clause or provision requiring the written consent of any Person(s) for action to be taken that clause or provision shall require the written consent of such Person(s). (i) Any amendment to this Declaration made during the Development Period affecting a right that Declarant may exercise during that period requires the written approval of Declapt in each case. ('j) Except as provided above in this Section 16.1 and in any other provision of .this Declaration, this Declaration may be amended by the firnative vote 'or written consent of the Owners of Units to which+more than 50%- of the votes in the Company are allacated, provided that during the Development Peripd my such amendment shall also require the approval'of Declarant. Amen&nEf;4z)ocwents- Except for &y amendment that by the terns of this Declaration may be and.is ddy execute& acknowledged and Recorded by Declarant or by or on behalf of the Board, an, amendment to this Declaration is effective only when all of the following events occur: 16.2 (a) Amroved Writing: The amendment is reduced to a writing-that iis approved (by a%rmative vote or Writtell consent) by the Owners of Units to which at :.(b) Certifidate bv Cozm&v. A written certificate, .executed and acknowledged by the presidqnt or any o@eK authorized- officer of the Company, is attached to the written amendment which states that the amendment was app applicable required percentage of Owners pursuant to Section 16,l. e required percentage Qf yotes in(the Cp&pany;are alloqated. (c) Recording. The approved written amendment described in Section 16.2(a) and the certificate described in Section 16.2(b) are Recorded. 16.3 Amendments Concerning the Fees. Notwithstanding any provision of this Declaration to the contrary, neither Article 9 of this Declaration, nor any other provision of this Declaration nor the Fee Assignment Agreement may be amended without the prior written consent of the Service District and the LOC Issues in any manner that would materially impact or impair the ability or authority of the Company to collect any of the Fees and remit the same to the Service District in accordance with the terms and conditions o€ this Declaration and the Fee Assignment Agreement. _. . _- - ... 05/08/2002 01 : 13F 55 iara J Fisher Easle, GO 135 R 375.00 D 0.00 ARTICLE 17 GENERAL PRQVISIQNS 17.1 Permittees Bound. All provisions of this ecl~atjon, the Bylaws an Rules shall also apply to all Permittees of any Owner. Each Owner shall cause all of its Permittees to comply with the this Declaration, the Bylaws and the Rules, and each Owner shall be responsible for all violations and losses to the Common Elements caused by such Permittees, notwithstanding the fact that such Permittees of a Unit are fully liable and may be sanctioned for any violation. 17.2 Duration and Te~nation. (a) Perpetual Dbration. Unless terminated as provided in Section 17.2(b), this Declaration shall have perpetual duration. If Colorado law hereafter limits the period during which covenants may run with the land, then to the Lextent consistent with such law, this- Declaration shall automatically be extended at the expiration of such period for successive periods of twenty years each, unless terminated as provided herein. (b) Termination. Unless otherwise provided by Colorado law, - in which case such law shdLcontrol,. this Declaration may not be terminated within the Development Period without the consent of Owners representing at feast 80% of the votes in the Company and Declarant and the Service District. Thereafter, it may be terminated only with the consent of Owners representing at least 67% of the votes in the Company and the Service District. Any termination instrument shali be Recorded and must comply with the termination pqocedms. set forth in the Act. Nothing in this Section 17.2(b) shall be construed to-pennit termination of any easement created in this Declaration without the cmsent of the beneficiary of such easement. 17.3 . No Person sha11,use the trade name “The Village (at Avon)” or any derivative thereof in any printed or prorhotional material without Declaran$’s prior written consent. However, Owners may use the tern “The Village (at Avon)” in printed or promotional atter where such term is used solely-:to specify that a particular property is located within Village (at Avon), and the Company shall be entitled to use the words “The Village (at Avon)” in its name. 17.4 Compliance; Right of Action. Every Owner and Permittee shall comply with this Declaration, the Bylaws and the Rules. In recognition of the fact that a violation of any of the easements, restrictions, requirements, conditions and covenants set forth in this Declaration will cause irreparable damage to the Property that is subject to this Declaration, it is hereby declared, and by acquiring an interest in any Unit all Owners and Mortgagees will be deemed to have agreed, that, except to the extent expressly provided to the contrary in this Declaration, any violation or attempted violation of any provision of this Declaration will give the Declarant, the Company and any aggrieved Owner the right to prosecute a proceeding at law or in equity against the Person who is violating or attempting to violate such provision and the 13 Page: 65 of 75 05/08/2082 01 : 13F 56 ra J Fisher Eagle, CO 135 R 375.00 D 0.00 right to recover sums due or damages or to obtain any other remedy available at law or in equity, including, without limitation, injunctive relief. 17.5 Attorney Fees. For each claim, inclu~g without li~tation co~ter- claims, cross-claims, and ~ird-p~y claims, in any leg proceeding to enforce the provisio~s of this Declaration, the Bylaws, the Articles or the Rules, the party prevailing on such claim shall be entitled to an award of its reasonable collection costs and attorney fees and costs incurred in asserting or defending the claim. * 5813 Page: 66 of 75 17.6 Indemnity. Each Owner will be liable to and will protect, defend, indemni€y and hold the Company harmless &om and against any and all damages, claims, demands, liens (including, without li~tation, mechanics’ and materi~men’s liens and ~Iaims), losses, costs and expenses (including, without l~itation, reasonable attorneys’ fees, court -costs and other expenses of litigation) and liabilities of any kind or nature whatsoever suffered or incurred by, or threatened or asserted against, the Company as a result of or in connection with (a) the willfd misconduct, negligence or breach of the Act, this Declaration, the Bylaws or the *Rules by the indemnifying Owner or his or her Permittees; or (b)my repair, restoration, replacement, alteration or other construction, demolition, installation or removal work on or about the Property contracted for, or performed- by, the* indemnifj4ng Owner or his or her The indemnifying Owner will pay for all such claims suffered or incurred by the r which such Owner is responsible hereunder promptly upon receipt of a demand therefor. The amount of such claims wilt constitute Specific Assessments against the indemnifLing f7wner’s Unit. Nothing herein, will be deemed to relieve any Permittee -from liability for its own acts or omissions. Nothing contained in this Section 17.6 will be construed to provide for any indemnification which would- violate applicable laws, void any or all of the provisions of this Section 17.6, or negate, abridge, efiminate or otherwise reduce any other indemnification or right which the Company or the Owners have 17.7 Severability. In -the event provision of this Declaration is deemed valid pravision similar to the invalidated vision of this declaration, in aration, by judgment or court ‘ illegal or invalid by judgment or court order, a le provision shall be substituted therefor. Invalidation of whole or in part, or of any application of a provision of tbi r &all in no way affect other provisions or applications of this Declaration. 17.5 Governing Law. “his Declaration shall be governed by and construed under the laws of the State of Colorado. 17.9 Captions. The captions and section headings in this Declaration are for convenience only and shall not be considered in construing any provisions of this Declaration. 17.10 Notices. Except for notices concerning meetings of the Company or the Board, which will be given in the manner provided in the Bylaws, any notices required or permitted hereunder or under the Bylaws to be given to any Owner, the Company, the Board or any Eligible Holder will be sent by certified mail, first-class postage prepaid, return receipt requested, to the intended recipient at, in the case of notices to an Owner, the mailing address of such Owner in the Town or any other address designated by such Owner in writing to the Company; in the case of notices to the Company or the Board, the address of the ~om~~ny’s registered agent; or in the case of notices to an Eiligible Holder, the address thereof most recently given to the Company by notice from such Eligible Holder. All notices will be deemed given and received three business days after such ~ailing. Any Owner or ~ligible its address for purposes of notice by notice to the Company in ac ance with this Section 17.10. The Company or the Board may change its address for purposes of notice by notice to all Owners in accordance with this Section 17.10. Any such change of address will be effective five days after giving of the required notice. 17.1 1 Colorado Common Interest Ownershh Act. This Declaration shall be subject to all mandatory requirements of the Act, as amended. In the event of any con between any term or provision of this Decl~at~on and any mandatory provision of the Act mandatory provisions of the Act shall control in all instances. In the event of any conflict between any term of provision of this Declaration and any permissive or non-mandatory provision of the Act, the provisions of this Declaration shall control in all instances. [remainder of page intentionalIy~b1~~~~ -- -- -- __ Page: 67 of 75 05/08/2802 01:13 ----------__- __ , 135 R 375.00 D 8.08 --- __ 58 IN WITNESS WHEREOF, the undersigned Declarant has executed this Declaration thiszs day of ,2002. EC T: TRAER CREEK LLC, a Colorado limited liability Title: Manager STATE OF COLORADO 1 COUNTY OF EAGLE 1 ) ss: The foregoing instrument was acknowledged before me this 26w day of , 2002, by Magnus Lindholm as Manager of Traer Creek LLC, a - &?QL Colorado limited liability company. Witness my hand and official seal. My commission expires: 59 IN WITNESS WHEREOF, the undersigned EMD Limited Liability Company has consented to this Declaration this= day of A pP; 1 ,2002. EMD LIMITE~ LI~~I~~ 60 Colorado limited liability co~p~y By: LAVA CORPORATION, a Colorado corporation, as Manager STATE OF COLORADO ) COUNTY OF EAGLE 1 ) ss. The foregoing instrument was acknowledged before me this 25715 day of hat , 2002, by Magnus Lindholm, as President of Lava Corporation, a Colorado corporation, as Manager of EMD Limited Liability Company, a Colorado limited liability company. Witness my hand and official seal. MY commission expires: \2 %*ZQQY /+- 795813 '/ Page: 69 of 75 I 05/08/2002 01:13R Sara 3 Fisher Easle, CO 135 R 375.08 D 0.00C--.J 60 Page: 70 of 75 , 05/08/2002 01:135 Sara J Fisher Eagle, GO 135 R 375.00 D 0.00 < TRACT M Those parts of Sections 8 and 9, Township 5 South, Range 81 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey of said Township and Range, accepted November 1, 1943, by the Department of the Interior General Land Office in Was~n~on, D.C., described as a whole as follows: Beginning at the W 1/16 corner of said Section 9 and Section 16 of said Township and Range; thence N89O55'04"W 1371.96 feet, along the southerly line of said SW 1/4 SW 1/4 to the Section corner of said Sections 8, 9, and 16 and Section 17 of said Township and Range; thence NOl"32'00''E 3.82 feet, along the westerly line of said Section 9, to the northerly right-of-way- line of the Denver & Rio Grande Western Railrpad, said northerly right-of-way line being parallel with and 50 feet northerly of the centerline af the existing railroad tracks; thence the following two courses along said northerly right-of-way line: (1) 104.48 feet along the arc of a curve to the left, having a radius of 2649.33 feeti a central angle of 02"15'34", and a chord which bears .N85"51'36''W 104.47 feet; (2) N86O59'2Y'W 12 esterly line of the SE 1/4 SE 1/4 of said Section 8; thence NOO"51'07''E 717 westerly line; thence, departing said westerly line, S89O55'04''E 2698.45 feet, to f the SW 1/4 SW 1/4 of said Section 9, thence, along said easterly line, SOl"33'13,'~W 790.94 feet, to the point of beginning, containing 47.70 acres, more or less. -mYISED EAST PARCEL (Minus Tract M): Those parts of Sections 7, 8, 9 & la, Township 5 South, Range 81 West of the Sixth ,Principal< ,Meridian, Eagle County, Colorado, according to the Dependent Resurvey of said Township. an& Range, accepted November 1 , 1943 by the Departmental? the Interior General Land Office in Nashington, D.C., described q a whole as follows: Beginning at the Northwest comer of said Section 8; thence e following four courses along the northerly line of said Section 8: (1) N88"40'41"E 1379.4 et, to the W 1/16 comer of said Section 8 and Section 5 of said Township and Range; (2) N88"40'411'E 1379.49 feet, to the 1/4 corner of said Sections 8 and 5; (3) N88"42'5&'E 1385.36 feet, to the E 1/16 corner of said Sections 8 and 5; (4) N88'42'58"E 1385.36 feet, to the comer of said Sections 5, 8 and 9 and Section 4 of said Township and Range; thence the following four courses along the northerly line of said Section 9: (1) N83'29'3O''E 1386.63 feet, to the W 1/16 corner of said Sections 9 and 4; (2) N83O29'30"E 1386.64 feet, to the 1/4 corner of said Sections 9 and 4; (3) N83O24'12''E- 1386.30 feet, to the E 1/16 comer of said Sections 9 and 4; (4) N83'24'12"E 1386.30 feet, to the comer of said Sections 4, 9 and 10 and Section 3 of said Township and Range; thence the following two courses dong the northerly line of said Section 10: (1) N86O39'24"E 1381.29 Feet, to the W 1/16 comer of said Sections 10 and 3; (2) N86'39'24"E 1299.94 feet; thence, departing said northerly line, S01°34'07"W 2699.66 feet, to the east-west centerline of said Section 10; i A- 1 thence, along said east-west centerline, S86O32'23"W 1304.06 feet, to the W 1/16 corner of said Section 10; thence S0l032'50''~ 1349.33 feet, along the easterly line ofthe NW 114 SW said Section 10, to the SW 1116 corner of said Section 10; thence S86"32'47"W 1384.91 feet, along the southerly line of said NW 114 SW 114, to the S 1/16 corner of said Sections 10 and 9; thence S77"0'15''W 1413.37 feet, along the southerly line of the NE 114 SE 114 of said Section 9, to the SE 1/16 corner of said Section 9; thence SOl"33'02"W 1475.32 feet, along the easterly line of the SW 114 SE 114 of said Section 9, to the E 1116 corner of said Section 9 and Section 16 of said Township and Range; thence S72"20'31"W 1450.43 feet, along the southerly line of said SW 114 SE 114, to the 114 comer of said Sections 9 and 16; thence NOl"34'18"E 1601.52 feet, to the CS 1/16 comer of said Section 9; thence S86"07'30"W 1378.19 feet, along the southerly line of the NE 1/4 SW 114 of said Section 9, to the SW 1/16 corner of said Section 9; SO~"33'13''W 715.42 feet, along the easterly line of the SW 114 SW 114 of said Section 9; departing said easterly line, NS9"55'04"W 2698.45 feet, to the westerly line of the SE 114 SE 1/4 of said Section 8; thence NOO"51'07"E 620.19 feet, along said wgsterly line, to the SE 1/16 corner of said Section 8; thence N89"54'54"W 1333.58 feet, along the southerly line of the NW 114 SE 114 of said Section 8, to the CS 1/16 corner of said Section 8; thence N89"58'35"W 1366.46 feet, along the southerly line of the NE 114 SW 114 of saidi Section 8, to the SW 1/16 corner of said Section 8; thence SOO"01'37"E 919.47 feet, along the easterly line of the SW 1/4 SW 1/4,.0f said Section 8, to the northerly right-of-way line of Interstate Highway No. 70, as e dee&recorded in Book 223 at Page 982' in the office of the Eagle County, erk and Recorder; thence the following ten courses along said northerly right-of- N65D30t20"W 249.79 feet; (2) N78"47'50"W 3 17.2 ~feet; (3) N83"08'20"W 506.7 feet.along the arc of a curve to the right+ havinpal rpdius of 1462,O feet, a central '5Z, and a chord which bears N54"57'56"W 763.3 fq@; (5) N34"37'50"W 331-1 feet; (6) N34"44'20"W 368.5 feet; (7) 804.9 feet along the arc of a curve to the left, having a radius of 1812.0 feet, a central angle of 25O27'04", and a chord which bears N51"29'50"W 798.3 feet; (8) N68"24'50"W 399.7 feet; (9) N49'47'20"W 213.6 feet; (10) N70°;r0'50ftW 765.1 feet, to the northerly line of the SE 114 of said Section 7; thence the two Courses along said northerly line: (1) N89"5Ot40"E 1194.46 feet, to the CE 1/16 of said Section 7; (2) ,N89"5@4P!E 1378.25 feet, toxhe 114 comer of said Sections 7 ence the fallowing two ong the westerly line of said Section 8: (1) N00"1O'53"W 1369.0%feet, to the S 1/16 Sections 7 and 8; thence NOO"10'53"W 1369.10 €eet,.$p 1.24 acres, more or less. 05/08/20Q2 01:13F 135 R 375.00 5 0.00 I! Sara J Fisher Eagle, Co A-2 EXHIBIT B Description of the Additi~nal Lands within The Villa~e Cat Avon~ WEST PARCEL That part of the SE 114 NE 114 of Section 12, Township 5 South, Range 82 West of the Sixth Principal Meridian, Eagle County, Colorado, according to the Dependent Resurvey and Survey of said Township and Range, accepted September 7, 1977 by the Department of the Interior Bureau of Land Management in Washington, D.C., together with that part of the W 1/4 of Section 7, Township 5 South, Range 81 West of the Sixth Princip~ Meridi~, Eagle ~ou~~, Colorado, according to the ~ependent Resurvey of said Towns~p and Range, accepte November 1, 1943 by the Department of the Interior General Land Office in Washington, D.C., both parts of said Sections lying north of Interstate Highway No. 70 and being described as a whole as follows: Beginning at the Northwest corner of said Section 7; thence the following two courses along the northerly line of said Section 7: (1) N88"49'24"E 1412.90 feet, to the W 1/16 corner of said Section 7 and Section6 of said Township 5 South, Range 81 West; (2) N88"49'24"E 1378.56 feet, to the 1/4 corner of said Sections 7 & 6; thence, departing said northerly line, the following two courses along the easterly line of the NW 1/4 of said Section- 7; (1) SQUo11'12"E 1345.19 feet, to the 04 1/16 corner of said Section 7; (2) SOO"11'12"E~ 1275.81 feet, to the northerly right-of-way line of Interstate Hi&way No. 70, as described in the orded in Book 223 at Page 982in the office of the Eagle County, Colorado, Clerk and R thence the following seven courses along said, northerly right-of-way line: (1) N70'24'51"W 2239.64 feet; (2) N89'42'21"W 211.9 feet; (3) N70°24'51"W 500.2 feet, to the commonnorth-south line of said Sections 7 & 12; (4) N70'24'51''W 93.9 feet; (5) 393.3 feet along the arc of a curve to the right, having a radius of 5550.0 feet, a centrqlr angle of 04"03'37", and a chord which bears N68'23'02"W 393.2 feet; (61 W74"38'51"W 98.1 feet; (7) 274.54 feet along the arc of a curve to the right, having a radius of 5565.0 feet, a centraI angle of 02"49'36", an&a chord which bears N63O56'27'W 274.51 feet, to the northerly line of the SE, 1/4 NE 1/4 of saib Section 12; thence S89"58'41"E 793.44 feet, along said northerly line, to the N 1/16 corner of sitid Sections 12 and 7; thence NOO"11'27"W 132k.54 feet, along the westerly line of said Section 7, to the point of beginning, containing 138.34 acres, more or less. STOLPORT A parcel of land located in the E 1/2 of Section 12, Township 5 South, Range 82 West of the Sixth Principal Meridian, the W 1/2 and the SE 114 of Section 7, Township 5 South, Range 81, West of the Sixth Principal Meridian, and the SW 1/4 SW 1/4 of Section 8, Township 5 South, Range 81 West of the Sixth Principal Meridian, all in Eagle County, Colorado, said parcel lying southerly of the Interstate Highway No. 70 right-of-way line, northerly of the Denver and Rio Grande Western Railroad right-of-way line and easterly of Final Plat - Amendment No. 4 Benchmark at Beaver Creek, according to the plat thereof recorded in the office of the Eagle County, Colorado, Clerk and Recorder in Book 274 at Page 701, said parcel bein, * more particularly described as follows: . - - - - - - ___ - /a, 05/08/2002 01 : 13F B-1 135 R 375.00 D 0.00 il Sara J Fisher Easle, CO Beginning at a point on the southerly right-of-way line of said Interstate Highway No. 70 whence the North 1/4 corner of said Section 7 bears NlO"17'20"W 3308.72 feet; thence the following twelve courses along said southerly n~t-of-way line: (1) S70'22'43"E 43 1.20 feet; (2) S68O23'13"E 333.80 feet; (3) S5 l"44'13"E 352.60 feet; (4) S24"13'13"E 96.20 feet; (5) S45'43'43"E 203.80 feet; (6) S37'16'13"E 327.70 feet; (7) S32"40'43"E 164.70 feet; (8) S50"10'13"E 210.60 feet; (9) S38'45'13"E 521.50 feet; (10) S69O45'43"E 670.90 feet; (1 1) S80°21'43"E 654.70 feet; (12) 335.72 feet along the arc of a curve to the right, having a radius of 1734.90 feet, a central angle of 11"05'14", and a chord that bears S72'08'02"E 335.19 feet to the easterly line of said SW 1/4 SW 1/4 of Section 8; thence SOO"OJ'OO"W 65.80 feet dong said easterly line to the southerly line of said Section 8; thence.N89"32'28"W 529.28 feet along said southerly line to the northerly right-of-way line of said Denver and €50 Grande;. Western Railxoad; thence the following twelve courses along said northerly right-of-way line: (1) angle of 03"44'42", and a chord that bears N79O30'09"W 132.89 feet; (2) N68"37'48"W 527.88 feet; (3) angle of 02"17'28", and a chord that bears N69'46'32"W 231.09 feet; (4) S0Oo14'31"E 21.20 feet; (5) angle of 1 1 "21'55", and'a chord that bears N76O32'02''W 1140.63 feet; (6) N82"13'001.'W 1136.53 feet; (7) angle of 16"42'10'!, and a chord that bears N73"51'55"W 546.1 1 feet; (8) NOO" 12'23"W 22.04 feet; (9) angle of 00"51'50", and a chord that bears N64"47'55"W 25.04 feet; (I 0) N64"22'00"W 2363.48 feet; (1 1) angle of 01"39'12", and a chord that bears N65"11'36"W 993.41 feet; (12) 132.91 feet along the arc of it curve tcl the right, having a radius of 2033.48 feet, a central 23 I. I2 feet along the arc of a curve to the left, having a radius of 5779.70 feet, a central 1 142.50 feet. along the arc of a curve to the left, having a radius of 5759.70 feet, a central 548.06 feet along.the arc of a curve to the right, having a radius of 1880.00 feet' a central 28.04 feet along the arc of a curve to the right, having a radius of 1860.00 feet, a central 993.44 feet along the arc of a curve to the left, having a radius of 34427.50 feet, a central N66"01'12"W 1260.13 feet to the easterly line of said Final Plat - Amendment No. 4 Benchmark at Beaver Creek; thence NlS"56'36"E 996.58 feet along said easterly line to said southerly right-of-way line of Interstate Highway No. 7'0; thence the following nine courses along said southerly right-of-way line: 13 of 75 05/08/2Q02 01 : 13FBm2 135 R 375.00 D Q.00 /I Sara J Fisher Eagle, CO TOWN COUNCIL REPORT To: Honorable Mayor Rich Carroll and Avon Town Council From: Virginia Egger, Town Manager Date: April 3, 2013 Re: Post Boulevard Surge: Clean-up of Post Boulevard At Tuesday’s meeting, I am requesting direction from Council as to the clean-up of Post Boulevard. As you are aware, one key element of the Traer Creek settlement is the conveyance of Post Boulevard infrastructure to the Town from the Traer Creek Metropolitan District. The improvements include the street, sidewalks, lights and landscaping within two-feet of the sidewalk. The conveyance will occur immediately upon the completion of all required settlement documents and the issuance of Traer Creek bonds. Concurrent with the conveyance of the improvements, and additional .75% retail sales fee will be collected on Village of Avon businesses for the Town of Avon. The fee is estimated to generate $631,800 per year, with the first $120,000 being dedicated to the Asphalt Overlay Fund each year for maintenance and improvements of the roadway. The remaining monies are available to maintain and improve the other infrastructure and/or other Town needs. While many settlement documents have moved to completion, five (5) documents are still in process, including Nottingham Dam Easement Agreement, the Wet Well Agreement, Amendments to Traer Creek Metropolitan District Service Plan, Amendments to The Village Metropolitan District Service Plan and Closing Receipt and Escrow Agreement. Attorney Eric Heil’s Avon Village Settlement Update addresses the status of these documents. Finalization of the documents is moving steadily forward, but there is no known date as to when everything will be completed. The .75% add-on retail sales fee for improvements will not be available in the next two to three months, a period of time when maintenance to Post Boulevard should commence. The Town’s Parks and Road and Bridge Divisions completed last month respective Work Plans for this year. The effort was completed in order to ensure work is scheduled in a manner which manages the work product in the most efficient manner; facilitates periods of time when the two Divisions need to rely on shared labor, and to provide productive work periods when considering the demands on the Divisions during Special Events. Anticipating the future conveyance of Post Boulevard this year, the clean-up, planting and maintenance and operations of the street lights was planned into the Work Plans. With the unusual condition of Nottingham Lake not being available this summer, the Divisions identified five (5) days within the period of April 15 – April 25th as a good time to clean-up Post Boulevard without retaining outside contractors and to work around any inclement weather. The Divisions will not have any available labor during the peak summer season of May through August because of the summer special event season and existing maintenance responsibilities. The clean-up, known in-house as the Post Boulevard Surge, includes the removal of dead plant material, cinders on the sidewalks and cinders and debris in the landscaping – a necessary initial step to the longer term maintenance of the areas. Street cinders are removed by the Town in its regular street sweeping program. The Town staff also plans to work with TCMD in representatives in the next several months to test the irrigation water system and to evaluate the street lamps for operational efficiency and needed repairs. New plantings and use of irrigation water ideally would commence in September with funding from the .75% retail fee. The costs of the clean-up include labor of $11,600, without benefits, and the cost of equipment time, which has not been calculated. All costs are currently in the budget. A request of $5,800 has been made to TCMD to share in the labor costs and to provide the requisite agreement allowing the Town to do the cleaning, including indemnification and being named as an additional insured. At this time, TCMD has responded that they are still reviewing the request and we anticipate hearing from them prior to Council’s meeting. Jeff layman, Eagle-Vail, has offered to assist with cleaning-up the US 6/Post Boulevard roundabout during the Surge. Town Parks and Road and Bridge Divisions are prepared to do the clean-up this spring, however, it is Council’s decision as to whether this is work the Town wants done prior to full documents being completed and receipt of the .75% retail sales fee in-hand. If Council prefers, the work will not be done this April, but will commence once monies are available or reconsidered this fall. Depending on the season, work will be done by Town staff to the greatest degree possible with outside contractors or temporary workers ($12,520+equipment) being retained for the initial clean-up. Work in the fall would most likely delay plantings until 2014. In conclusion, the benefit of cleaning-up Post Boulevard this spring is obvious. The dedication of Town resources without the benefit of the finalization of the settlement agreement and .75% retail sales fee is the determinant question before Council. TOWN COUNCIL REPORT To: Honorable Mayor and Town Council From: Virginia Egger, Town Manager Date: April 4, 2013 Agenda Topic: 1st Quarterly Report on the 2013-14 Strategic Plan & 2013 Work Plan & Recommended Amendments to 2nd Quarter Please find attached Council’s adopted 2013-14 Strategic Plan & 2013 Work Plan [Strategic Plan], including a progress report on the 1st Quarter actions and recommendations for changes to the 2nd Quarter program [see bullet points in each section]. 1st Quarter Work Plan Review I think you will find the 1st Quarter, while ambitious, has largely been completed. This is important as several of the Strategic Plan elements rely upon 1st Quarter work being accomplished. What is not apparent in the 1st Quarter Report is the other project work, beyond day-to-day responsibilities. This includes, but is not limited to a comprehensive review of capital projects in preparation for the 2014 budget and office and facility clean-up (to be completed by the end-of-the-year). 2nd Quarter Work Plan A review of the scheduled work in the 2nd Quarter indicates most work is can be accomplished. Moving several planned work activities in Economic Development are now recommended for the 3rd Quarter. After the Council adopted the Strategic Plan, the Upper Eagle Valley Water Authority requested some changes to the priorities and timing of work planned with the Authority. The changes, now reflected in this Strategic Plan are: • Moved from 2nd Q to 4th Q - Evaluate and remediate liability concerns, if any, for Avon Drinking Water Facility fenced area with the Water Authority. • Moved from 4th Q to 2nd Q - Schedule review of Authority Agreement with Council and Water Authority representatives to begin identifying and developing solutions for needed amendments; plan to adopt changes no later than November 2014. The review of the Authority Agreement seems ambitious among the other planned Water Issues work, but I assume if the Authority is prepared to begin this work, Avon will work with them. Finally, Since adopted, other important major work has been identified. Council direction is requested as to whether you wish to also proceed on the following work: 1. At the March Liaison meeting with Traer Creek Metro District representatives, Councilors Fancher and Dantas were asked if the Town would join them in creating a Parking and Transportation Task Force to master plan the Town of Avon, including the Village at Avon, to Beaver Creek for this critical system. Since then, Beaver Creek representatives have been asked and they have indicated interest, if they would also participate. From a planner’s perspective, having a well-planned parking and transportation plan is the most important element of land use planning. All modes of transportation are included for the movement of vehicles, bicycles and pedestrians. Bringing stakeholders together to work on this system, prior to Traer Creek development and new development/redevelopment in Avon seems a high priority. If Council concurs, I, with the planning staff, recommend a Task Force be appointed and be an integral group participating in the Comprehensive Plan update. A recommendation on functions and stakeholder’s can be provided at your April 23rd meeting. 2. The approval of the Wyndham Hotel necessitates the evaluation of how Lettuce Shed Lane, the currently planned mall improvement and potential Main Street improvements interface with the Hotel and surrounding uses. It is an important moment to ensure for the planning of future improvements. The review of this area, leads to the important decision in regards to use of the Recreation Center land – parking structure or expansion of the facility – which, leads to an interest in how Town properties will be located in the future, including Lot 5 and Town Hall. The Town of Avon has done much good planning. The recommendation is that Council takes time to review the plans, and prior to mall improvements planned for 2014, evaluate all properties, including the prior Main Street plan, and potential uses. A site walk would be scheduled for May 14th, with staff summarizing the properties and offering a range of scenarios for discussion. Summary: It is important that each staff person is fully employed, but most importantly is that we are working on the right projects for the Town of Avon. I look forward the 1st Quarterly Review and discussion of the 2nd Quarter work to ensure that we are working on the right projects. 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 1 1st QUARTER UPDATE APRIL 9, 2013 2013-14 STRATEGIC PLAN 2013 WORK PLAN Adopted by the Avon Town Council Resolution 13-05, Series of 2013 February 26, 2013 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 2 Overview The Town of Avon, surrounded by natural beauty, is today a strong community that will build on its strengths to become a nationally and internationally recognized year-round mountain resort community. Committed to providing a high level of municipal services for our citizens and visitors, and the stewardship of our natural resources, Avon will expand its cultural, recreational and educational offerings in partnership with our broader community and regional public and private sector agencies, thereby ensuring sustained economic vitality and a vibrant community experience. Recent resort-oriented accommodations projects in Avon are of a higher standard than the Town attracted at its founding and in its early years. It is this superior level of quality development that Avon believes will be its comparative advantage in the future, and, therefore, will work to attract and promote these types of developments by ensuring Town plans and incentives are constructed in a manner which provides the development community clear and timely information; and by steadfastly maintaining a professional and solution-oriented municipal business. The Town will continue to value and support our full-time and part-time resident population by providing an exceptional level of municipal services and by working to retain existing businesses as the Town seeks to expand its retail and commercial base, while fostering our sense of community through both our spirit and the built environment. The importance of vibrancy and activity within the Town will be supported by attracting an array of new and diverse cultural and recreational events to Avon which are in concert with the values of our community and serve to nurture a cohesive sense of place and public. It is the Town of Avon’s elected officials and staff commitment to fiduciary responsibility, effectiveness and efficiency in providing government services and a practiced belief in open and transparent governance that will lead the successful implementation of this vision for the growth and development of Avon. 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 3 Strategic Plan Fiscal Years 2013 - 2014 Tier 1 Priority: Fiscal Year 2013 1) Develop Business-like Practices and Culture of Town Hall – Ensure that Town government is operated as a “competitive” business and in a manner which is client-focused and solution-oriented, meeting the highest standards of fiduciary responsibility, implementing best practices, and using Town resources effectively and efficiently in every department. Tier 2 Priorities: Fiscal Year 2013 2) Economic Development – Ensure that the Town of Avon is prepared for new development and re- development. Evaluate Urban Renewal Authority expansion and other incentives to promote quality development of a high standard; update the Avon Comprehensive Plan as needed and work closely with the Planning and Zoning Commission to understand respective roles so that developers have a good sense of what can and what cannot be negotiated. 3) Village at Avon Partnership – Meet with representatives of the Village at Avon and the Traer Creek Metropolitan District to develop understandings and trust necessary for the future development of the Village. This outreach and communication is the responsibility of all elected and appointed officials and the employees of the Town of Avon. Tier 2 Priorities: Fiscal Years 2013-2014 4) Special Events – Identify near term opportunities for special events and develop a longer term special events strategy. In March, hold a work session to establish the duties and membership of a Cultural Arts and Special Events Commission to lead this effort for the Town. Be spontaneous, when appropriate. 5) 2015 World Alpine Championships – Planning for all three phases of this internationally renowned event must be initiated: 1) Pre-event promotion and marketing; 2) Stellar events and promotion of Avon as a place to return to need to be produced during the event; and 3) Post-event requires a follow-up promotional plan to encourage and/or book guest return visits. Tier 3 Priorities: Fiscal Years 2013- 2014 6) Water Issues – Identify water issues and develop a timetable and approach for resolution over the next year or two; manage what can be done against higher priorities. 7) Transit Consolidation – Avon should be a leader in working to provide a consolidated transit operation in the valley. With negotiations for 3rd parties in the new I-70 RTF needed, service availability in Fleet, plus planning for the 2015 World Cup, begin to build on these opportunities for a longer term cooperative partnership. 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 4 2013 Work Plan Develop Business-like Practices and Culture of Town Hall Tier 1 Priority: Fiscal Year 2013 Leader: Mayor Rich Carroll Staff: Town Manager Virginia Egger Ensure that Town government is managed and operated as a “competitive” business and in a manner which is client-focused and solution-oriented, meeting the highest standards of fiduciary responsibility, implementing best practices, and using Town resources effectively and efficiently in every department. 1st Quarter January – March 2013 1.1 Develop Core Values and Cultural Statement with Staff; implement with orientation session and on-going team building exercises • During January and February all employees were invited to meet with the Town Manager to share ideas and concerns. • Representative ad hoc group of 14 employees reviewed the themes which came out of the meetings and developed a draft Cultural Statement, which was distributed to all staff on March 25th • Meetings are set the first two weeks of April for staff review and comment • A final Cultural Statement will be completed based upon these comments and staff will be asked what training they believe is needed to implement the Cultural Statement, with sessions being developed and implemented with at least one session each quarter 1.2 Determine organizational structure and staffing for Public Works, Recreation and Community Development Department prior to recruiting vacant Director positions, assessing whether the position(s) should be filled; implement decisions 1.3 Recruit and hire for Director vacancies based upon final organizational plan • Parks and Recreation Department formed; with Parks moving to the Recreation Department it was determined that Fleet, Transit and Road and Bridge are discreet divisions with little cross-over supervisory requirements, therefor, the Public Works Department position will remain vacant. • Determination was made that Community Development Director should remain vacant due to current low application demand and that current staff is capable of taking on managerial duties with training and mentoring by the Town Manager. A Planning Technician job was created and filled with existing staff, which included reduced hours for GIS; Community Development planner positions were evaluated with a Senior Planner position being established with general supervisory responsibilities for the Department. • Offices relocation plan was developed and implemented with final relocation of Building Division to Fleet Mezzanine to occur in early May 1.4 Evaluate and establish IT priorities – provide a rigorous review of cost-benefit for proposed improvements and carry-out a mandate for efficiency • Department Heads met in January and identified all IT demands and established Laserfiche implementation as the highest priority; Police Sleuth and eticket software changes deferred until complete interfaces completed with outside agencies. Other priorities: • Phone system bids distributed and cell service coverage evaluated; recommendation next week • Finance Department Evaluations underway: automating payroll and business license functions, including credit card payments 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 5 • Email archiver research underway; common work order system & meeting scheduler applications being reviewed • Software inventory being completed 1.5 Finalize work plans for all departments for seasonal and 2013 budget goals, including new maintenance plans for Village at Avon improvements • Work Plans completed • Village at Avon work plan for improvements completed; implementation requires completion of settlement documents and bond issue and working with Traer Creek to evaluate irrigation and electrical systems 2nd Quarter April – June 2013 2.1 Complete a comprehensive review of all Town departments to assess the necessity of tasks and functions, effectiveness and efficiency in meeting department responsibilities, staffing levels, and future needs; present to Town Council 2.2 Develop budget process and schedule for Council approval; evaluate developing 2 – 3 year General Fund budgets 2.3 Staff training on “competitive” business practices and fiduciary responsibility 2.4 Complete all Village at Avon implementing documents 3rd Quarter – July – September 2013 3.1 Hold Council Retreat to evaluate and amend 2013-14 Strategic Plan and 2013 Work Plan, as needed 3.2 Review and update Asset and Capital Five Year Plans 3.3 Mid-year 2013 budget review and amendment, if needed 4th Quarter October – December 2013 4.1 Review and update Strategic Plan 4.2 Budget preparation, hearings and adoption 4.3 Prepare 2014 Work Plans 2013 Work Plan Economic Development Tier 2 Priority: Fiscal Year 2013 & 2014 Leaders: Economic Development Subcommittee Councilors Todd Goulding and Chris Evans Staff: Town Manager Virginia Egger, Community Development and Finance Department Staff Ensure that the Town of Avon is prepared for new development and re-development. Evaluate URA expansion and other incentives to promote quality development of a high standard; update the Comprehensive Plan as needed and work closely with the Planning and Zoning Commission to understand respective roles so that developers have a good sense of public benefit expectations, incentives and minimum development requirements for critical project elements, such as parking. 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 6 1st Quarter January – March 2013 1.1 Develop a land development “tool box” which identifies appropriate incentives and a regulatory framework to support and partner with land developers and the building community. This will encourage the project standards and reasonable surety for developments to create and permit projects in a manner that respects the time-value of resources. • PZC identified areas for Code improvement • Work just commencing. For 2nd Q: From the April 4th session with Councilors Evans and Goulding and staff: o Collect primary and secondary sources of data, which can be used to measure and guide economic development efforts o Research other successful Economic Development programs; structure and funding o Research branding efforts: Stakeholder’s, process, cost, timeframe, what initial work should Avon do prior to a branding effort o Goals of a Town of Avon economic development effort: In 3-5 years turn-over to a NGO, identify a single point of contact • Successful schedule and timely review of Wyndham project 2nd Quarter April – June 2013 2.1 Evaluate expansion of URA into other qualified areas of Avon • Move to 3rd Quarter 2.2 If URA expansion is desirable, solicit RFQ and identify budgetary needs • Move to 3rd Quarter 2.3 Host a business summit for existing businesses to listen to how the Town of Avon can support business vitality  Define and implement the Town “brand”  Evaluate the benefit of a business survey; and  Create action plan with the business community • Move to 3rd Quarter if needed 2.4 Review and update the Town’s Private-Public Partnership Policy and investment Policy, as needed. • Move to 3rd Quarter if needed 2.5 Evaluate and select data base and revenue software/spreadsheet system to assist with statistical analysis of key metrics identification in collaboration with Avon businesses and regional economic development committees; understand the demographic characteristics of visitors to the region 2.6 Identify with the Planning and Zoning Commission: 1) Elements of the Comprehensive Plan, and, as appropriate, area specific and service plans, such as the District Plans and Transportation Plan, which should be amended to meet the current vision of the Town; and 2) Code amendments, including “clean-up” of definitions, charts, etc. identified through use of the Code over the past year and sections which should be updated, and sections which should be updated, such as the sign code. 2.7 Develop the scope, public process, including possible Community Survey, and schedule for commencement and completion of the Comprehensive Plan Update. 2.8 Negotiate and finalize multi-year Comcast Franchise Agreement 3rd Quarter – July – September 2013 3.1 Complete URA expansion, if being pursued 3.2 Commence Comprehensive Plan Update. 2.9 Commence Municipal Code clean-up amendments, including functional review of the regulatory process to ensure applications meet the Comprehensive Plan and land use codes and provide a review process that is substantive, not unnecessarily duplicative or unreasonably lengthy. Assess the delegation of decision-making authority to meet the Town’s client-focused and solution-oriented mandate. 4th Quarter October – December 2013 4.1 Complete Comprehensive Plan Update 4.2 Complete Code Clean-up 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 7 4.3 Commence work on other prioritized updates for specific land use plans, such as East Avon, Transportation Development, etc. 4.3 Evaluate opportunity for a “sister city/ international city” partnership 2013 Work Plan Village at Avon Partnership Tier 2 Priority - 2013 Leaders: Traer Creek Liaison Appointees Dave Dantas and Jennie Fancher Staff: Town Manager Virginia Egger, Public Works, Parks, Community Development and Engineering Staff Meet with representatives of the Village at Avon and the Traer Creek Metropolitan District to develop understandings and the trust necessary for the future development of the Village. This outreach and communication is the responsibility of all elected and appointed officials and the employees of the Town of Avon. 1st Quarter January – March 2013 1.1 Complete Settlement documents which require execution by the Town of Avon; continue to assist and advise on other document approvals, as appropriate, to complete all Settlement agreements. • In process 1.2 Collect, consolidate, organize and prepare action summaries of all Village at Avon documents, agreements and assignments within Town Hall. The Community Development Department will be the primary contact and responsible party for understanding and managing the Village at Avon settlement agreements once finalized by Town Council. • 90% complete; final collection of documents to be finalized by April 19th 1.3 Meet with Village at Avon districts to review infrastructure responsibilities and processes for design approvals; communicate maintenance plan for FY 2013 • Completed 1.4 Liaison Appointees and appropriate staff will meet in a general overview session in January and March to discuss current issues and future opportunities • Completed • At March meeting TCMD requested the formation of a Parking and Transportation Task Force to master plan their property and the Town’s systems to Beaver Creek • At the same meeting, the Town requested partnership to clean-up Post Blvd. in April and work on irrigation and electrical systems 2nd Quarter April – June 2013 2.1 Liaison Appointees and appropriate staff will meet in a general overview session in May and June to discuss current issues and future opportunities 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 8 2.2 Assist as appropriate to complete Water Tank design and Water Authority bond issue 2.3 Identify and request, as determined, use of Traer Creek property for 2013 special events 3rd Quarter – July – September 2013 3.1 Liaison Appointees and appropriate staff will meet in a general overview session in August to discuss current issues and future opportunities 3.2 Upon completion of bond issue, Settlement document completion and escrow release, begin Village at Avon infrastructure clean-up and maintenance 3.3 Identify and request, as determined, use of Traer Creek property for 2014 & 2015 World Alpine Championships 4th Quarter October – December 2013 4.1 Liaison Appointees and appropriate staff will meet in a general overview session in October and November to discuss current issues and future opportunities 2013 Work Plan Special Events Tier 2 Priority – Fiscal Years 2013-2014 Leaders: Councilors Jake Wolf and Buz Reynolds Staff: Town Manager Virginia Egger and Parks and Recreation Staff Identify near term opportunities for special events and develop a longer term special events strategy. In March, hold a work session to establish the duties and membership of a Cultural Arts and Special Events Commission to lead this effort for the Town. Be spontaneous, when appropriate. Beaver Creek Resort, with its recreational and cultural activities, is an important economic driver of the Avon economy, offering a vast array of amenities which add to the richness of the day-to-day life of Avon residents, the community and tourists. Avon will work closely to further build the relationship with Beaver Creek Resort Company and Vail Resorts that supports business brands, the tourist economy and community offerings, including but not limited meeting the transportation, security and amenity needs of a mature resort and community. 1st Quarter January – March 2013 1.1 Town Leaders and appropriate staff meet in March to: 1) Identify opportunities and tasks to increase special events for 2013; 2) Evaluate establishing a Cultural, Arts and Special Events Commission to promote and assist with the production of recreational, cultural, educational and social events • 2013 Special Events identified; on April 23rd Council agenda • No recommendation is yet ready on a Commission because focus in first Q was on information gathering and timely planning of 2013 Events 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 9 1.2 Evaluate success of Fire & Ice, including recommendation for continuation of the event or variation • On April 23rd Council agenda 2nd Quarter April – June 2013 2.1 Implement actions for Summer 2013 new Special Events, if any 2.2 Implement a process to identify, solicit, produce and to evaluate the value (spending, ROI, community interest) Special Events: the goal is to develop a strategic plan to grow Special Events next Five Years 3rd Quarter – July – September 2013 3.1 Implement actions for Fall 2013 new Special Events, if any 3.2 Draft Special Events Strategic Plan for FY 2014-15, with Cultural, Arts and Special Events Commission, if formed 4th Quarter October – December 2013 4.1 Implement actions for Winter 2013 new Special Events, if any 4.2 Budget for 2014 Special Events 2013 Work Plan 2015 World Alpine Championships – February 3 – 15, 2015 Tier 2 Priority: Fiscal Years 2013-2014 Leader: Mayor Rich Carroll and Mayor Pro Tem Staff: Town Manager Virginia Egger, Transportation, Police and Parks and Recreation Staff Planning for all three phases of this internationally renowned event must be initiated: 1) Pre-event promotion and marketing; 2) Production of stellar events and promotion of Avon as a place to return to need to be produced during the event; and 3) Post-event requires a follow-up promotional plan to encourage and/or book guest return visits. 1st Quarter January – March 2013 1.1 Identify Town staff participation to date and current participation activities • Completed 1.2 Meet with Vail Valley Foundation Ceil Folz to connect and commit Avon to support of the event and opportunities within Avon • Completed; Town Manager added to Festivals Committee • Councilors Fancher and Reynolds advocated for activities in Avon; Festival Committee has identified large building ice sculptures, music and food, which are identified now in Festival Plan • Requires continual promotion by the Town to complete plan as identified in 2nd Q 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 10 1.3 Meet with representatives of Avon lodging community to discuss opportunities for 2015 • Did not occur; may be better timed in 2nd Q 2nd Quarter & 3rd Quarter – April – September 2013 2.1 Develop comprehensive action plan for special events, marketing, logistics, security, sponsorship, partnerships 2.2 Commence implementation 2.3 Evaluate value of promotional video and social media in marketing Avon 4th Quarter October – December 2013 4.1 Continue implementation of plan 4.2 Update, as needed, mall improvement plans and be fully ready for bid and construction in 2014 2013 Work Plan Water Issues Tier 3 Priority: Fiscal Years 2013-2014 Leaders: Mayor Rich Carroll and Councilor Todd Goulding Staff: Town Manager Virginia Egger, Engineering Staff and Special Water Counsel Identify and water issues and develop a timetable and approach for resolution over the next two years; manage what can be done against higher priorities. 1st Quarter January – March 2013 1.1 Join the Upper Eagle River Water Authority in a “Water Summit” to identify all issues and develop a timetable and project approach for addressing issues on a prioritized basis. Seek to resolve all issues by November 1, 2014. • Issues, timetable and prioritization completed 1.2 Organize water and wastewater documents and files at Town Hall; institutionalize knowledge. • 90% completed; final electronic organization to be done by April 30 1.3 Hannewald Barn – Community Development Department to provide a report to Town Council at its March 26th work session regarding the historic preservation status of the barn and restrictions, if any, to relocation; report on historic and relocation status by April 1st to the ERWSD. • Completed with direction by Council in regards to allowing time for interested parties to find a relocation site and funding • Update planned for April 23rd Council meeting 1.4 Begin in March with the Water Authority, Avon representatives and Mountain Star residents the identification and resolution of the Mountain Star water tank, fire flow, irrigation and system delivery issues. Seek to resolve these important matters in a timely manner. • Town and Authority working group finalizing information and solution recommendations • Late May session set with Mountain Star representatives 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 11 1.5 As requested by the Water Authority, review and take action on March 12th on water rate increase for 2013 bond improvements. • Completed 2nd Quarter April – June 2013 2.1 Evaluate water counsel role and responsibilities; execute special water counsel retention agreement. 2.2 Contact Urban Run-off Group to request Avon Executive Committee appointment. Participate with the Group to understand activities and possible 2014 funding request for a Gore Creek Water Quality Improvement Plan. 2.3 With the Water Authority, beginning in early May, develop an understanding of how water rights and water use are accounted for and develop a process for future transactions. 2.4 Schedule review of Authority Agreement with Council and Water Authority representatives to begin identifying and developing solutions for needed amendments; plan to adopt changes no later than November 2014. 3rd Quarter – July – September 2013 3.1 Draft and execute an agreement with the ERWSD for long term cost sharing and O&M responsibilities of the Heat Recovery System. 3.2 Review Town and ERWSD 2002 Recreational Path Berm maintenance agreement; meet with ERSWD to decide on appropriate improvements and maintenance: incorporate in Avon’s 2014 budget. 3.3 In September, review the basis for the Avon’s water fees, which are assessed in addition to those tap fees and operational fees assessed by the Water Authority. 4th Quarter October – December 2013 4.1 Schedule 1) ERWSD presentation of its 20-year wastewater infrastructure master plan, including possible rate increase needs and Town’s 1041 requirements; and 2) Water Authority and ERWSD presentation on Eagle Mine’s metal loading issues on the Eagle River. 4.2 Evaluate and remediate liability concerns, if any, for Avon Drinking Water Facility fenced area with the Water Authority. 4.3 Schedule with the Water Authority work plans for 2014 issues: 4.3.1 Resolve Avon Drinking Water Facility fenced area for ownership and/or lease to the Water Authority. Deadline for resolution: September, 2014 2013 Work Plan Transit Consolidation Tier 3 Priority – Fiscal Years 2013-2014 Leaders: Councilors Buz Reynolds and Jake Wolf Staff: Town Manager Virginia Egger, Public Works Director and Transit Division Staff Avon should be a leader in working to provide a consolidated transit operation in the valley. With negotiations for 3rd parties in the new I-70 RTF needed, service availability in Fleet, plus planning for the 2015 World Cup, begin to build on these opportunities for a longer term cooperative partnership. 1st Quarter January – March 2013 1.1 Update cost estimates for vehicle storage at I-70 RTF 1.2 Update draft agreement for storage 2013-2014 STRATEGIC PLAN & 2013 WORK PLAN 1st Quarter Review – April 9, 2013 Pa g e 12 1.3 Develop marketing plan for I-70 RTF storage and Fleet Services • In process, Term Sheet will be presented to Council on April 23rd 1.4 Finalize use and contracting of grant funds remaining for Transit: $130,000 • Purchasing replacement van – 24 seats 1.5 Finalize decision on use of $600,000 grant funds for I-70 RTF construction • Council approved mezzanine construction; design completed including offices for Road and Bridge 1.6 Council direction on AGS participation • After CDOT presentation, direction was to pursue station; Mayor has sent letter and staff attending meetings 1.7 Throughout the year, fully participate in regional transportation and parking forums and in CDOT I-70 corridor planning • Participating in these meetings, both elected and appointed officials 2nd Quarter April – June 2013 2.1 Finalize negotiations and lease with ECO Transit for I-70 RTF storage 2.2 Market to other potential clients for bus/vehicle storage and Fleet Services 2.3 Evaluate transit services for FY 2014 and opportunities for regional efficiencies 2.4 As appropriate, participate in Regional Collaboration efforts on transit 3rd Quarter – July – September 2013 3.1 Finalize I-70 RTF lease agreements for 100% year-round occupancy 3.2 Assess demographic characteristics of bus riders and how best to disseminate information about transit service and about the Town 4th Quarter October – December 2013 TBD