TC Council Packet 09-09-2014 TOWN OF AVON, COLORADO
TOWN OF AVON MEETINGS FOR TUESDAY, SEPTEMBER 9, 2014
AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM
REGULAR MEETING BEGINS AT 5:15 PM
AVON TOWN HALL, ONE LAKE STREET
Page 1
PRESIDING OFFICIALS
MAYOR RICH CARROLL
MAYOR PRO TEM JENNIE FANCHER
COUNCILORS DAVE DANTAS, CHRIS EVANS, ALBERT “BUZ” REYNOLDS, JR., JAKE WOLF, MATT
GENNETT
TOWN STAFF
TOWN ATTORNEY: ERIC HEIL TOWN MANAGER: VIRGINIA EGGER TOWN CLERK: DEBBIE HOPPE
ALL REGULAR MEETINGS ARE OPEN TO THE PUBLIC EXCEPT EXECUTIVE SESSIONS.
GENERAL COMMENTS ARE WELCOME DURING PUBLIC COMMENT, AND COMMENTS ARE ALSO WELCOME ON ANY AGENDA TOPIC.
PLEASE VIEW AVON’S WEBSITE, HTTP://WWW.AVON.ORG, FOR MEETING AGENDAS AND MATERIALS.
AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AND AVON LIBRARY.
THE AVON TOWN COUNCIL MEETS THE 2ND AND 4THTUESDAYS OF EACH MONTH.
______________________________________________________________________________________________________________
AVON LIQUOR LICENSING AUTHORITY MEETING BEGINS AT 5:00 PM (SEE SEPARATE AGENDA PAGE 3)
REGULAR MEETING BEGINS AT 5:15 PM
1. CALL TO ORDER & ROLL CALL
2. APPROVAL OF AGENDA
3. PUBLIC COMMENT
4. WORK SESSION
4.1. JOINT SESSION WITH AVON PLANNING AND ZONING COMMISSION (PLANNING MANAGER MATT PIELSTICKER)
4.2. REVIEW AND DIRECTION ON COMCAST FRANCHISE AGREEMENT TOPICS (TOWN MANAGER VIRGINIA EGGER)
5. ACTION ITEMS
5.1. PUBLIC HEARING SECOND READING OF ORDINANCE 14-13 APPROVING THE GRANT OF A REVOCABLE
ENCROACHMENT LICENSE TO INSTALL, CONSTRUCT AND MAINTAIN PRIVATE IMPROVEMENTS ON TOWN-
OWNED RIGHT-OF-WAY AND PROPERTY AT CHRISTY SPORTS FOR DEVELOPMENT OF A DDITIONAL PUBLIC
PARKING – C ONTINUED FROM AUGUST 26, 2014 MEETING (PLANNING MANAGER MATT PIELSTICKER)
5.2. PUBLIC HEARING FIRST AMENDMENT TO DEVELOPMENT AGREEMENT FOR WYNDHAM TIME-SHARE PROJECT
(PLANNING MANAGER MATT PIELSTICKER)
5.3. RESOLUTION NO. 14-22 ADOPTING THE AUTHORITY AGREEMENT AMENDING AND RESTATING THE AGREEMENT
ESTABLISHING THE UPPER EAGLE REGIONAL W ATER AUTHORITY AND THE MASTER SERVICE CONTRACT
(TOWN ATTORNEY ERIC HEIL)
5.4. RESOLUTION NO. 14-23 ADOPTION OF 2015-16 STRATEGIC PLAN (TOWN MANAGER VIRGINIA EGGER)
5.5. MINUTES FROM AUGUST 26, 2014 MEETING (TOWN CLERK DEBBIE HOPPE)
6. WORK SESSION
6.1. 2015-16 BUDGET WORK SESSION (ASSISTANT TOWN MANAGER SCOTT WRIGHT)
6.1.1. RECOMMENDATION FOR REVENUE PROJECTIONS, INCLUDING FEES AND CHARGES FOR SERVICES, IF ANY
6.1.2. FUND BALANCE, CONTINGENCY & STABILIZATION FUND R ECOMMENDATION
6.1.3. EMPLOYEE COMPENSATION: SALARY & HEALTH INSURANCE PROPOSAL
TOWN OF AVON, COLORADO
TOWN OF AVON MEETINGS FOR TUESDAY, SEPTEMBER 9, 2014
AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM
REGULAR MEETING BEGINS AT 5:15 PM
AVON TOWN HALL, ONE LAKE STREET
Page 2
6.2. REPORT ON P ROCUREMENT POLICY (ASSISTANT TO THE T OWN MANAGER PRESTON NEILL)
7. COMMITTEE MEETING UPDATES: COUNCILORS AND MAYOR
7.1. UERWA M EETING – COUNCILOR BUZ REYNOLDS
7.2. UPDATE ON WILD WEST RIDGE CONSTRUCTION ESTIMATE AND SCHEDULE – MAYOR RICH CARROLL
7.3. UPDATE ON STAGE – COUNCILOR JAKE WOLF
8. COUNCIL COMMENTS
9. MAYOR REPORT AND FUTURE AGENDA ITEMS
10. EXECUTIVE SESSION (THIS MEETING IS NOT OPEN TO THE PUBLIC)
10.1. FOR THE PURPOSE OF A CONFERENCE WITH THE TOWN ATTORNEY TO RECEIVE LEGAL ADVISE UNDER
CRS 24-6-402(2)(B) AND TO DISCUSS THE PURCHASE, ACQUISITION, LEASE, TRANSFER OR SALE OF REAL,
PERSONAL OR OTHER P ROPERTY INTEREST UNDER CRS 24-6-204(2)(A)
11. ADJOURNMENT
TOWN OF AVON, COLORADO
TOWN OF AVON MEETINGS FOR TUESDAY, SEPTEMBER 9, 2014
AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM
AVON TOWN HALL, ONE LAKE STREET
Page 3
PRESIDING OFFICIALS
CHAIRMAN RICH CARROLL
VICE CHAIRMAN TODD GOULDING
BOARD MEMBERS DAVE DANTAS, CHRIS EVANS, JENNIE FANCHER
ALBERT “BUZ” REYNOLDS, JR., JAKE WOLF, MATT GENNETT
TOWN STAFF
TOWN ATTORNEY: ERIC HEIL TOWN MANAGER: VIRGINIA EGGER TOWN CLERK: DEBBIE HOPPE
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, AND AVON LIBRARY
1. CALL TO ORDER AND ROLL CALL
2. APPROVAL OF AGENDA
3. PUBLIC COMMENT
4. PUBLIC HEARING SPECIAL EVENTS PERMIT
4.1. Applicant Name: Realm of Caring
Event Name: Man on the Cliff
Event Dates: September 27-28, 2014; 9:30 am until 7 pm
Location: Nottingham Park
Event Manager: Amanda Williams
5. RENEWAL OF LIQUOR LICENSES
5.1. Applicant: R& E Enterprise LLC d/b/a Gondola Pizza
Location: 240 Chapel Place #13
Type: Hotel and Restaurant
Manager: Claudia Popa
6. MINUTES FROM AUGUST 26, 2014
7. ADJOURNMENT
Special Events Memo Man on the Cliff.docx 1 | Page
REPORT FOR AVON LIQUOR LICENSING AUTHORITY
To: Avon Liquor Licensing Authority
From: Debbie Hoppe, Town Clerk
Date: September 9, 2014
Agenda topic: SPECIAL EVENTS PERMIT APPLICATION – PUBLIC HEARING
The Town Council serving as the Local Liquor Licensing Authority will consider a Special Events Permit
Application for the upcoming Man on the Cliff Event. A public hearing is required before final action is
taken.
Applicant Name: Realm of Caring
Event Name: Man on the Cliff
Event Dates: September 27-28, 2014; 9:30 am until 7 pm
Location: Nottingham Park
Event Manager: Amanda Williams
The applicant has submitted the appropriate materials required by the State of Colorado Liquor
Enforcement Division and all materials are in order. Walking Mountains Science Center is applying for malt,
vinous, spirituous liquor and fermented malt beverage(3.2% Beer) permit to serve/sell beverages at One
Lake Street (Nottingham park) for the September 27 & 28th “Man on the Cliff Event”. The park premise
has been posted with notice of the public hearing for this application. The event manager will be present
to answer question about the application. There are local liquor licensing fees associated with the special
event permit; the applicant has submitted the appropriate state & local fees.
Special Events permits are issued by the Liquor Enforcement Division and the Local Licensing Authority to
allow particular types of organizations, municipalities, and political candidates to sell, serve or distribute
alcohol beverages in connection with public events. Because of their temporary nature, needs and desires
(reasonable requirements of the neighborhood) are not considered by the licensing authorities as a
condition of issuance. Applications are made directly with the local licensing authority having jurisdictions
over the place of the event. Article 48 of Title 12 regulates the issuance of special events permits. Note
that these permits may only be issued for prescribed hours during the day and for not more than 15 days in
any one calendar year.
SPECIAL EVENTS PERMIT APPLICATIONS ATTACHMENTS:
The applicants for the special events permit have submitted the following materials:
Application for a Special Events Permits (State form DR 8439)
Alcohol Management Plan
Diagram where liquor will be served
Certificate of Good Standing
Police Report on Background Checks
TOWN OF AVON, COLORADO
AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, AUGUST 26, 2014
AVON TOWN HALL, ONE LAKE STREET
FINAL ALB 08-26-2014 Minutes Page 1
1. CALL TO ORDER AND ROLL CALL
Mayor Carroll called the meeting to order at 6:20 pm. A roll call was taken and Board members present were
Dave Dantas, Buz Reynolds, Matt Gennett, Jennie Fancher, Chris Evans, and Jake Wolf. Also present were
Town Manager Virginia Egger, Town Attorney Eric Heil, Assistant Town Manager Scott Wright, Planning
Manager Matt Pielsticker, Executive Assistant Preston Neill and Town Clerk Debbie Hoppe as well as
members from the public.
2. APPROVAL OF AGENDA
There were no changes to the agenda.
3. PUBLIC COMMENT
4. RENEWAL OF LIQOUR LICENSES
4.1. Applicant: Dillon Companies, Inc. d/b/a City Market #26
Location: 260 Beaver Creek Place
Type: 3.2% Beer Retail
Manager: Jeff Gentilini
The application was presented with no concerns for the renewal application. Board member Fancher moved
to approve the 3.2 % beer retail liquor license for Dillon Companies, Inc. d/b/a City Market #26; and Board
member Evans seconded the motion and it passed unanimously with those present.
4.2. Applicant Name: Chair Four LLC d/b/a VIN 48
Address: 48 E. Beaver Creek Blvd.
Type: Hotel and Restaurant
Manager: Collin Baugh
The application was presented with no concerns for the renewal application. Board member Fancher moved
to approve the hotel and restaurant liquor license for Chair Four LLC d/b/a Vin 48; and Board member Evans
seconded the motion and it passed unanimously with those present.
6. MINUTES FROM AUGUST 12, 2014
Board member Dantas moved to approve the Minutes from August 12, 2014; Board member Fancher
seconded the motion and it passed unanimously with those present.
TOWN OF AVON, COLORADO
AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, AUGUST 26, 2014
AVON TOWN HALL, ONE LAKE STREET
FINAL ALB 08-26-2014 Minutes Page 2
7. Adjournment
There being no further business to come before the Board, the meeting adjourned at 6:25 pm.
RESPECTFULLY SUBMITTED:
____________________________________
Debbie Hoppe, Town Clerk
APPROVED:
Rich Carroll ______________________________________
Dave Dantas ______________________________________
Chris Evans ______________________________________
Jennie Fancher ______________________________________
Albert “Buz” Reynolds ______________________________________
Jake Wolf ______________________________________
Matt Gennett ______________________________________
TOWN COUNCIL REPORT
PAGE 1 OF 1
To: Mayor and Town Council
From: Matt Pielsticker, AICP, Planning Manager
Date: August 28, 2014
Agenda Topic: Planning and Zoning Commission: Bi-Annual Work Session
The Planning and Zoning Commissioners will join Council in a work session to discuss the following topics as
requested by the Planning and Zoning Commissioners. Forty-five (45) minutes has been planned for this discussion.
A copy of the 2015-16 Strategic Plan will be provided to PZC members in advance of the meeting regarding Item 4.
Agenda – Council/PZC Work Session
1. Design Review Process
• Director review of Development Plans, with discretionary PZC review. Director makes decisions on
Minor Development Plans with discretionary referrals to PZC. Minor Development plans include all
exterior modifications to buildings or properties that do not result in 600 sq. ft. or more of additional
space.
• Drift toward prescriptive design standards. Current codes allow some room for interpretation by PZC.
2. Color Standards
• Recent Code Amendments and direction moving forward with amendments to LRV.
3. Potential Landscaping Regulation Revisions
• Garden Fencing. Current standards for Wildridge permit 4’ high, split rail design, enclosing not more
than 2,000 sq. ft., and shall not delineate property lines. In all other zone districts, 42” – 6’ height with
varying allowances for materials and colors compatible with principal buildings.
• Quantity Requirements, with lack of Dispersion Requirements
• Parking Lot perimeter Requirements.
4. Long-Range Planning Work
• 2015-16 Strategic Plan review
• Multi-model Parking and Transportation Plan prioritized
• PZC desire to “marry” district plans with Comprehensive Plan
5. Affordable Housing
• Employee Housing Mitigation. Currently triggered only when Development Plan exceeds maximum lot
coverage requirements in Neighborhood Commercial (NC), Mixed-Use Commercial, and Town Center
(TC) zone districts. Formula for number of units required is based on job generation data contained in
§7.20.100, Employee Housing Mitigation, AMC.
• Affordable Housing Fund Money prioritization
6. Timeliness of PZC/Council Decisions
• Development Season and decisiveness required to meet deadlines
• Cost of delays - Examples
TOWN COUNCIL REPORT
To: Honorable Mayor and Town Council
From: Preston Neill, Executive Assistant to the Town Manager
Date: September 9, 2014
Agenda Topic: Franchise Agreement between the Town of Avon and COMCAST of Colorado
BACKGROUND:
The purpose of a cable Franchise Agreement is to grant to a franchisee, such as COMCAST, the right to
access and use Town of Avon public ways (right-of-ways) for the installation and repair of wires and
other equipment, such as pedestals, for the operation of a cable system. The Town is compensated
for the use of public way through a franchise fee, which is currently 5% of COMCAST’s Gross Revenue
within the Town.
In addition to important requirements for how business activity is administered in the right-of-way, the
Franchise also includes a requirement that two Public Education or Governmental (PEG) Access
Channels be provided, with the Town having management authority to designate a provider, and
certain requirements for use of the stations. The franchisee collects and provides to the Town a
capital support fee for the PEG, which is currently fifty cents ($0.50) per month per individual
residential subscriber and 25 cents ($0.25) per month per bulk-billing subscriber.
The most recent Franchise Agreement between the Town of Avon and COMCAST of Colorado was a
15- year agreement originally approved with TCI Cablevision of the Rockies, Inc. and later assigned to
COMCAST. It expired on December 31, 2010. Pursuant to the Federal Telecommunications Act, the
expired Agreement continues on a month-to-month basis until both the Town and COMCAST agree to
a new Franchise Agreement. After the expiration, the Town stated it wished to defer the negotiation
of a new franchise until such time as Vail completed its review and approval of a new franchise. The
Franchise Agreement between the Town of Vail and COMCAST of Colorado was completed in 2012 and
commenced on January 1, 2013.
NEW FRANCHISE AGREEMENT TERMS
The Town of Avon was provided by COMCAST its “Model Agreement” for the purpose of entering into
a Franchise Agreement with COMCAST of Colorado for the provision of cable services in the Town of
Avon. A comparative analysis was conducted between the Model Agreement and the Vail-COMCAST
Agreement for the purpose of identifying the differences and similarities.
The comparative review was shared with COMCAST and their response is attached to this report.
Unless otherwise noted below, staff concurs with the COMCAST responses.
Town Manager Virginia Egger was provided comments from Public Access Television Channel 5 by
letter dated August 23, 2014. The letter(“Channel 5”) is included with this report and reflected in the
recommendations below.
STAFF RECOMMENDATIONS
Town staff has identified several key differences in the agreements. In addition, since Vail’s adoption
of its Franchise Agreement, progressive changes have been made by Colorado communities in
franchise negotiations. Recommendations for Avon’s renewal are as follows:
• General Procedures: Where the Model-Vail differences are general procedures, the
recommendation is to accept the more beneficial term to remain consistent with the Town of Vail
terms. A typical example is the Vail-COMCAST Franchise Agreement states that Franchise Fee
payments shall be due and payable no later than thirty (30) days after said dates, whereas the
Model Agreement states sixty (60) days. If channels are changed, Vail would receive $2,000, Avon
$1,000. The channel fee change is supported by Channel 5 in like amount to Vail.
• Definition of Gross Revenue: The Vail-COMCAST Franchise Agreement finds that Franchise fees are
not a tax and are therefore need to be included in “Gross Revenue”, while in the Model
Agreement finds that “Gross Revenue” does not include Franchise fees. While including the fee in
gross revenues will be a fee passed on to cable subscribers, the finding that a fee is not a tax is
germane, and staff recommendation is to define the fee as has been done in Vail.
• Franchise Term: In order to allow the termination date to coincide with the termination date
established in the ten (10) year agreement between the Town of Vail and COMCAST of Colorado,
staff recommends a term of eight (8) years, beginning on the effective date, January 1, 2015.
• Franchise Fee: Similar to the most recent Franchise Agreement between the Town of Avon and
COMCAST of Colorado, the Agreement will grant COMCAST a nonexclusive authorization to make
reasonable and lawful use of the public ways in the Town of Avon. As compensation for the use of
public ways, COMCAST shall make quarterly payments as a “Franchise Fee” to the Town an
amount equal to five percent (5%) of COMCAST’s gross revenue. Staff recommends no change.
• PEG Access Channels: Two (2) Public, Educational, or Governmental (PEG) Access Channels will be
provided by COMCAST, at no charge. In addition, the Town of Avon would continue to receive
from COMCAST, in quarterly payments, a “PEG Fee” in the amount equal to fifty cents ($0.50) per
residential subscriber per month as capital support for PEG access.
Staff recommended the Town retain during the term of the Agreement the right to reduce or
increase this fee following a public hearing. Channel 5 is requesting consideration of increasing
the fee up to $0.75 for residential subscribers to more adequately fund capital improvements. The
current bulk subscribers’ fee of $0.25 is recommended to remain the same in the new contract and
also have the potential to increase to $0.40. Staff believes a fee increase could lead to more Avon
content being developed and played on Channel 5. These fees are direct pass through charges to
subscribers.
• Access Channel Trigger: As recommended by Channel 5, a trigger for when an additional access
channel should be provided in the Franchise Agreement.
• Insurance: While Vail’s insurance requirements exceed those of the Model Agreement, the levels
proposed seem adequate unless Attorney Eric Heil recommends a different level.
• Customer Service Standards: A significant new term found in other Colorado municipal franchises
with COMCAST is the inclusion of a set of Customer Service Standards (CSS). standards establish
uniform requirements for the quality of service that COMCAST is expected to offer to customers.
In order to ensure the provision of quality customer service, the Town has received the standards
created by the Colorado Communications and Utilities Alliance (CCUA) from COMCAST to
implement. These standards have been adopted by numerous municipalities throughout Colorado.
These standards include, but are not limited to, 24/7 local telephone access for service/repair
requests and billing/service inquiries, 24/7 accessibility to dispatchers and technicians, a complaint
procedure and an established window for problem resolution following a customer service call.
• Regulatory Changes: Finally, staff recommends the Agreement include a stipulation that
addresses a situation where one or more federal regulations, which would have a substantive
rule(s) change that will affect the regulation of cable providers, that Avon reserve the right to
renegotiate the terms of the Agreement. Federal regulators, with cable providers becoming the
providers of new services, including phone and internet, can be expected to promulgate new rules
for such providers prior to the expiration date of the Agreement.
COUNCIL ACTION:
Town staff requests direction from the Town Council regarding the terms for inclusion in the Franchise
Agreement for preparation of First Reading materials.
From: Davis, Andy [mailto:andy_davis@cable.comcast.com]
Sent: Wednesday, September 03, 2014 2:50 PM
To: Preston Neill; Virginia Egger
Cc: porter@wharton-group.net
Subject: Response to proposed changes...
Virginia/Preston,
Thanks to both of you for the feedback and proposed changes to the draft renewal. Below are my
responses to the changes that you proposed. As I’ve mentioned previously, several of the provisions that
you have highlighted were a by-product of the circumstances that existed in Vail at the time of the
renewal. Those circumstances don’t exist in Avon. That being said, we can likely work with several of the
proposed changes while a few others will require further discussion…
Section 1 – Definitions
• Gross Revenues: The initial language was intended to ensure revenue neutrality. While we
can make the change that you have proposed to Gross Revenues, it will result in a fee
increase on your constituents/our subscribers.
• Institutional Network: INets are no longer part of our franchise agreements. If the city is
interested in a network like this, it would need to contract that service with our Business
Services team.
Section 3 – Franchise Fee and Controls
• 3.2 - Payments: While 30 days is in the Vail agreement, we have found that the timeline is
very tight following the end of the quarter. We would propose 45 days as a compromise.
Section 5 – Franchise Insurance Requirements
• 5.3 Insurance: Nearly all of our most recent agreements are at the levels that we proposed,
and this includes cities much larger than Avon. If it is important to the Town to include the
same insurance levels as Vail, we can make this change.
• 5.5 Performance Bond: This provision was related to specific issues that existed in Vail at
the time of the renewal. Further, it has never been an issue in Avon. We’ll have to discuss
this further to better understand the Town’s perspective and the need for this provision.
Section 7 – Records
• 7.1 Required Records: Again, the 2 reports that you have cited were related to specific
issues in Vail that have not been issues previously in Avon. Additionally, the Town already
receives annual reports from us, and I would be curious to know if those reports are utilized.
The Town can request reports from us at any time if it wants the information. We would like
to better understand the Town’s interest in and actual use of this information before
agreeing to the proposed changes.
Section 9 – Access
• 9.2 Triggers for Additional Access Channels: We will need to better understand the Town’s
future programming needs and how they justify the inclusion of this provision. The Vail
Valley is serviced by PEG programming coming from Vail and Eagle County, so it will be
difficult to add an additional channel – and the bandwidth it requires – to Avon specifically
without stronger justification.
• 9.2 (AFA) Underutilized Channel Access: We can agree to this proposed change.
• 9.3 (AFA) Access Channel Location: Avon’s number of subscribers is roughly 1/3 the number
in Vail. Arguably, the amount we proposed should be even less than $1,000. However, we
can consider this increase if it’s important to the Town.
• 9.4 (AFA) Access Channel Promotion: This provision no longer exists in most of our updated
agreements, and notably, while this language exists in the Vail agreement, the Town has
never used it. We believe that one insert is a reasonable compromise.
• 9.5 (AFA) PEG Fee: First, Comcast already collects and provides to the Town a PEG fee of
$0.50, so the changes regarding notification are not necessary. As for the ability to increase
to $1.00, only one other community outside of Denver (that I’m aware of) has a PEG fee
beyond $0.50, and while the increase language does exist in the Vail franchise, this change
in the current context will be difficult to sell internally. We can’t agree to this without
further discussion.
Hopefully, you’ve also had a chance to look at the model CCUA Customer Service Standards that I shared
with you on 8/21. Again, these were carefully negotiated over multiple years, and they are the standards
being adopted across the Front Range and elsewhere in the state. Again, to be clear, deviations from
this set of standards will be very difficult, if not impossible, to get approved internally.
Thanks and let me know if you’d like to go over all of this on a phone call, or we could meet in person on
Tuesday (9/9) before the Study Session. Let me know what you prefer.
Andy Davis
Director, Regulatory and Government Affairs
Comcast | Mile High Region
8000 E. Iliff Avenue, Denver, CO 80231
E: andy_davis@cable.comcast.com
O: 303.603.2424
M: 720.951.2868
LinkedIn Profile
Learn more about Comcast’s Community Investments and their impact
Vail Valley Community Television Corp.
(DBA Public Access TV 5)
281 Metcalf Road, Unit 203
PO Box 5600
Avon, CO 81620
Aug. 23, 2014
Virginia Egger
Town of Avon
1 Lake Street
Avon, CO 81620
Virginia,
Following Dan Wheery's suggestion to pursue an E-Metro connection in lieu of the fiber option, I spoke with
Comcast representatives to determine the cost and implementation of an E-Metro connection for sending
video from the municipal building to PATV5 for live broadcast of council meetings and other events on
Channel 5. The cost for 10 MBPS of bandwidth (which may or may not be adequate for sending video and
requires additional research) costs approximately $400 a month, which is beyond our means. The
representatives are determining if there is any room to be more aggressive with pricing and will get back to
me with a cost. I also suggested the possibility of Comcast trading sponsorship of live broadcast of council
meetings in return for free use of the service. Their plan is to discuss this option with Andy Davis to
determine if a partnership may be agreed upon.
In regards to your analysis between the Avon and Vail franchise agreements, I have a few comments:
Section 9. Access - We believe that a trigger for additional access channels should remain in the agreement,
as we discussed at our meeting. It is important for this trigger to remain if programming grows beyond the
bounds of one channel or a parallel station in high definition is required.
Section 9.4 - We insist that any channel move incur the same amount as the Vail agreement. A move would
require us to completely overhaul marketing materials, video graphics, print materials and would also require
additional community outreach to inform the community of the move.
Section 9.6 (9.5) PEG Fee - As we discussed at our meeting, we feel it would benefit the town to include a PEG
fee up to $0.75 for residential subscribers to more adequately fund capital improvements. Also, we ask that
the fee for bulk subscribers of $0.25, which was in the previous Avon agreement, remain in the new contract
and also have the potential to increase to $0.40.
Thank you,
J.K. Perry
Executive Director
Public Access TV 5
970-949-5657
vailchan5@comcast.net
publicaccess5.org
TOWN COUNCIL REPORT
To: Honorable Mayor and Town Council
From: Matt Pielsticker, Planning Manager
Date: September 3, 2014
Re: Public Hearing Second Reading Ordinance 14-13 Revocable Encroachment License for Public
Parking Lot
BACKGROUND
The Planning and Zoning Commission approved the design for development of a public parking lot west of
Christy Sports at its April 24, 2014, meeting. The proposed site is Town-owned land, currently planted in grasses
with several trees on the lot. Staff recommended the change as a better use of the land considering location
near at the core of East Avon and onto Avon Road. The parking lot would be developed by Hoffmann
Commercial Properties at its cost. Twenty-eight (28) parking spaces would be provided. The parking would
remain open to the public.
Development of the parking lot requires a License from the Town Council. Council has taken the following
actions on the License:
• Passed First Reading of Ordinance 14-13, with certain terms and conditions;
• Council at its meeting of July 2, 204, continued action with direction to renegotiate the terms and
conditions of the lease;
• Continued Second Reading and the required Public Hearing to the August 26, 2014, meeting rather than
taking action. The Council directed staff to inform the applicant that Council would not consider action
for proposed uses on any Town property until all improvements being made or having been made on
properties owned by Hoffmann Commercial Properties are brought into code compliance;
• Continued Second Reading and required Public Hearing to September 9, 2014. Council reviewed
“compliance” updates related to improvements being made on Hoffmann Commercial Properties and
Town properties.
CODE COMPLIANCE SUMMARY
Per Council’s request, the following summary includes development work completed or in process on
Town property and Hoffmann Commercial Properties lands and buildings and status of compliance
with Town codes. While numerous actions have been taken by the company to come into
compliance, this update identifies those areas still not in compliance.
1. Landscaping in the Chapel Square PUD, including landscaping on Hoffmann property and Town-
owned property.
STATUS: In Compliance. A Minor Development Plan application was submitted, approved by
Staff on August 15, and conditioned upon the execution of a maintenance agreement be
completed for landscaping on portions of Tract A, Town owned property. The Town Attorney
has drafted a License/Maintenance agreement, and it is currently in review by Traer Creek and
HCRE parties.
2. Painting of accessory building elements at the Chapel Square PUD without color approval.
STATUS: In Compliance. A Minor Development Plan application was approved by Staff for this
accent color on private property.
Page 2
3. Installation of monument sign at Nottingham Station without first submitting an application and
gaining approval of a Master Sign Program Amendment application.
STATUS: In Compliance. A Master Sign Program Amendment was approved by PZC on
September 2, 2014.
4. Installation of monument sign at Christy Sports on Town Property without first submitting an
application and gaining approval of Master Sign Program Amendment for Christy Sports or
approval to work in right-of-way.
STATUS: In Compliance/In Process. A Master Sign Program was submitted and was reviewed by
PZC on September 2nd. The PZC continued the application in order for Christy Sports to revise the
building mounted signs as part of the sign program.
5. Removal of light fixture and new construction of statue base and lighting, and installation the
bronze sculpture, “Legend of Ulele Bust”, in Chapel Square PUD. Portions of the new
improvements are located on Town-owned property.
STATUS: In Compliance/In Process. A complete application was submitted, with necessary
survey information. This item is scheduled for review with PZC on September 16th. If the
application is approved, it will be conditioned upon the execution of a maintenance/license
agreement.
6. Removal of Landscaping in Town Right-of-Way without Right-of-Way permit for construction in
Town Right-of-Way or design approval.
STATUS: In Compliance/In Process. A complete Minor Development Plan application was
submitted and is currently under Staff review for processing.
7. Painting of Town-owned property including benches, railings, and trash receptacles without
color approval or Right-of-Way permit for construction in Town Right-of-Way.
STATUS: Not in Compliance. A letter was sent to HCRE on August 19th documenting the painting
of eight (8) benches, three (3) fences, one (1) trash receptacle, and one (1) handrail on Town
property without color or right-of-way approvals. The letter required repainting by August 29th;
the work remains incomplete and was “delayed due to weather.” An update will be provided at
the meeting.
8. Use of Town electric power for new Monument Sign at Christy Sports Building.
STATUS: Not in Compliance. According to HCRE, an electrician is scheduled to work on this issue
Friday, September 5th. An update will be provided at the meeting.
REVOCABLE ENCROACHMENT LICENSE
The Revocable Encroachment License presented in Ordinance 14-13 provides for:
• A 99-year lease, with the Town having the ability at any time to pay for the actual costs of parking lot
improvements. The developer will provide an accounting of the actual costs, however, total
improvement purchase is capped at not to exceed $175,000, the developer’s estimated cost of
construction.
Page 3
• The parking lot improvements must be completed by November 15, 2015.
• A permanent Access Easement Area would be provided from the developer to the Town, prior to
construction commencing, to ensure access to the parking lot should the Town acquire the
improvements and want to continue use of the property as a parking lot.
• Until such time as the Town acquires the improvements, all operations and maintenance of the parking
lot is the responsibility of Hoffmann Commercial Properties.
AVAILABLE ACTIONS:
• Approve Ordinance 14-13 as drafted.
• Approve Ordinance 14-13 with modifications
• Continue Ordinance 14-13 to a future meeting
MOTION:
If Council wishes to proceed with the Ordinance after the Public Hearing, the recommended motion is: I move
to approve Ordinance 14-13 [with or without modifications.]
ATTACHMENT:
Ordinance 14-13
Ord. No 14-13 Approving Revocable License Agreement
September 9, 2014
Page 1 of 3
TOWN OF AVON
ORDINANCE 14-13
SERIES of 2014
AN ORDINANCE APPROVING AN AGREEMENT BY AND BETWEEN THE
TOWN OF AVON AND HOFFMAN COMMERICAL PROPERTIES FOR THE
GRANT OF A REVOCABLE ENCROACHMENT LICENSE TO INSTALL,
CONSTRUCT, AND MAINTAIN PRIVATE IMPROVEMENTS ON TOWN-
OWNED RIGHT-OF-WAY AND PROPERTY
WHEREAS, the Town Council has authority to grant revocable encroachment licenses for
Town owned public property and/or right-of-ways;
WHEREAS, the Town Council conducted a public hearing on July 22, 2014, then continued
such public hearing to August 26, 2014, then continued the public hearing to September 9, 2014;
WHEREAS, the Town Council finds that the grant of a revocable encroachment license to
construct parking open to the general public on a public property adjacent to the Christy Sports
western parking lot and on a portion of Avon Road will promote the Avon Comprehensive Plan
and promote economic vitality in the Avon commercial core and will thereby promote the
healthy, safety and general welfare of the Avon community; and,
WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the
Town Council desires to comply the requirements of the Avon Home Rule Charter by setting a
public hearing in order to provide the public an opportunity to present testimony and evidence
regarding the application and that approval of this Ordinance on first reading does not constitute
a representation that the Town Council, or any member of the Town Council, supports, approves,
rejects, or denies this Ordinance.
NOW, THEREFORE, 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. Revocable License Agreement Approved. The attached Revocable License
Agreement is hereby approved and accepted.
Section 3. Mayor and Town Clerk Authorized to Execute Documents. The Mayor and
Town Clerk are authorized to execute documents approved in this Ordinance and take such other
actions as may be reasonably necessary to implement the actions in this Ordinance.
Section 4. 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
Ord. No 14-13 Approving Revocable License Agreement
September 9, 2014
Page 2 of 3
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 5. Effective Date. This Ordinance shall take effect thirty days after public notice
following final passage in accordance with Section 6.4 of the Avon Home Rule Charter.
Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this
Ordinance is promulgated under the general police power of the Town of Avon, that it is
promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary
for the preservation of health and safety and for the protection of public convenience and
welfare. The Town Council further determines that the Ordinance bears a rational relation to the
proper legislative object sought to be obtained.
Section 7. Publication by Posting. The Town Clerk is ordered to publish this Ordinance by
posting notice of adoption of this Ordinance on final reading by title in at least three public
places within the Town and posting at the office of the Town Clerk, which notice shall contain a
statement that a copy of the ordinance in full is available for public inspection in the office of the
Town Clerk during normal business hours.
[Signature page follows]
Ord. No 14-13 Approving Revocable License Agreement
September 9, 2014
Page 3 of 3
INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED POSTED
AND REFERRED TO PUBLIC HEARING and setting such public hearing for July 22, 2014
at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon,
Colorado, on July 15, 2014.
____________________________
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 six days prior to final action by the Town Council.
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________
Debbie Hoppe, Town Clerk Eric J. Heil, Town Attorney
INTRODUCED, FINALLY APPROVED, AND PASSED ON SECOND READING, AND
ORDERED PUBLISHED BY POSTING on September 9, 2014.
____________________________
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:
_______________________________
Debbie Hoppe, Town Clerk
Avon Road Revocable Encroachment License Agreement
for Parking Lot Improvements
Page 1 of 6
AN AGREEMENT BY AND BETWEEN THE TOWN OF AVON AND HOFFMANN
COMMERCIAL PROPERTIES FOR THE GRANT OF A REVOCABLE ENCROACHMENT
LICENSE TO INSTALL, CONSTRUCT, AND MAINTAIN PRIVATE IMPROVEMENTS ON
TOWN-OWNED RIGHT-OF-WAY and PROPERTY
1.0 PARTIES. The parties to this agreement (“Agreement”) are the TOWN OF AVON,
COLORADO, a Colorado home rule municipality (“Town”) and HOFFMAN
COMMERCIAL PROPERTIES (“Licensee”). This Agreement is effective upon
execution by the Licensee and following execution by the Mayor on the date indicated
below.
2.0 RECITALS AND PURPOSE.
2.1. The Town is the owner of certain property located in the Town of Avon, Eagle
County, Colorado, commonly known as Avon Road. A portion of Avon Road that
is subject to this Agreement is more specifically described on Exhibit to
License: Private Improvements (“Exhibit”) and such portion of Avon Road
shall be referred to as the “Town Property”.
2.2. The Licensee has expressed a desire to encroach upon and occupy the Town
Property for the purpose of installing, constructing, and maintaining certain
temporary landscape improvements.
2.3. Licensee agrees to construct public parking and landscaping (“Private
Improvements”) on the Town Property, which the Town desires and
acknowledges is a valuable public benefit that promotes goals of the Town’s
Comprehensive Plan. Town further finds that the Private Improvements on Town
Property provide benefits and value that equal or exceed the value of the Town
Property that the Town is providing for use by Licensee.
2.4. The Town is willing to grant a revocable license to the Licensee under the terms
and conditions as hereinafter specified in this Agreement provided that nothing in
this Agreement shall waive or modify any obligation to seek building permits,
right-of-way permits (including traffic control), variances, or other approval
necessary to meet any obligation imposed by law. The Licensee remains
obligated to apply for and obtain all necessary permits and approvals, pay all
required fees, and comply with all applicable local laws, including but not limited
to any applicable provisions in the Avon Municipal Code.
3.0 TERMS AND CONDITIONS.
3.1. The Town hereby grants to the Licensee a revocable license for the
encroachment and occupation described as follows: landscape plantings (trees,
shrubs, and ground cover), retaining walls, as such Private Improvements are
depicted on the Exhibit; provided, however, that nothing in this Agreement is
intended to waive, alter, modify, or permit any violation of any local law
applicable within the Town of Avon. To the extent that the location or other
specifications of this Agreement or any exhibit conflicts with local laws, the local
law shall govern. Except for the encroachment and occupation of the Private
Avon Road Revocable Encroachment License Agreement
for Parking Lot Improvements
Page 2 of 6
Improvements identified in this ¶ 3.1 and depicted on the Exhibit, no other
encroachment, structure, improvement, vehicle, fence, wall, landscaping, or any
other real or personal property shall be erected, installed, constructed, parked,
stored, kept, or maintained in any way or fashion on the Town Property. As a
condition to the license granted in this Agreement, Licensee shall construct the
Private Improvements as depicted on the Exhibit , which Private Improvements
shall be constructed according to Town’s standards and which shall be
completed by November 15, 2015 and Licensee hereby conveys a perpetual
access easement (“Access Easement”) across the area depicted as the “Access
Easement Area” on the Exhibit , which Access Easement shall run with the land
and shall survive the termination or expiration of this Agreement.
3.2. The encroachment and occupation of Private Improvements as specified in ¶ 3.1
above shall continue from the date of this Agreement for a period of NINETY-
NINE (99) YEARS, until August 11, 2113, unless earlier terminated in
accordance with the terms of this Agreement. Town may terminate this
Agreement at any time, with or without cause, upon tendering reimbursement
payment in full for the cost (“Cost”) of the Private Improvements without any
depreciation. The Cost of Private Improvements shall be determined as follows:
Upon completion of the Private Improvements and no later than December 31,
2015, Licensee shall submit to the Town documentation of Cost associated with
completion of the Private Improvements. Cost may include construction,
engineering, design, testing, inspection, survey and legal expenses. Town shall
have thirty (30) days from the date of receiving documentation of Cost to submit
a written objection, which objection shall be limited to inadequacy of the
documentation or costs not directly related to the Private Improvements. If Town
does not submit a written objection then the Cost of the Private Improvements as
submitted by Licensee shall be deemed accepted by the Town. If Town objects,
then Licensee shall submit additional documentation to evidence the Cost of the
Private Improvements within thirty (30) days. Notwithstanding the foregoing,
Town and Licensee agree that Town’s obligation to tender a reimbursement
payment of Costs as a condition of early termination shall not exceed TWO
HUNDRED THOUSAND DOLLARS ($175,000.00).
3.3. The Licensee agrees to construct, maintain, and repair the Private Improvements
placed or located on the Town Property by the Licensee or its lessees, agents,
employees, or other persons under the control or direction of the Licensee
pursuant to this Agreement at the cost and expense of the Licensee and at no
cost or expense to the Town. The Licensee agrees that the Private
Improvements shall be accessible and open to parking by the general public
without charge and that overnight parking shall not be permitted without consent
of the Town. Limiting parking to periods of time shall be allowed (e.g. a 2-hour
parking limit). The Licensee agrees to erect and maintain appropriate signage
for parking. The Licensee agrees to provide private enforcement of parking
regulations consistent with this Agreement and acknowledges that Town may
provide parking enforcement assistance in a manner consistent with, and
according to, Town policies as is provided for other private commercial parking
areas open to the general public.
Avon Road Revocable Encroachment License Agreement
for Parking Lot Improvements
Page 3 of 6
3.4. The Licensee agrees to remove or cover graffiti or other damage caused to the
Private Improvements within a reasonable time following notice or knowledge of
such damage or within forty-eight (48) hours of delivery to the Licensee of a
written demand by the Town, whichever is earlier. The Licensee shall not erect,
cause to be erected or permit the erection of any sign, advertising object, or
illustration upon any improvement, structure, fence, or wall placed or located by
the Town Property pursuant to this Agreement and shall promptly remove any
such sign or advertising.
3.5. The Licensee agrees to maintain the landscaping in a healthy condition at all
times during this Agreement and shall be responsible for ensuring the proper
pruning or replacement as necessary to present a healthy landscape condition.
3.6. The Licensee expressly agrees to, and shall, indemnify and hold harmless the
Town and any of its officers, agents, or employees from any and all claims,
damages, liability, or court awards, including costs and attorney’s fees that are or
may be awarded as a result of any loss, injury or damage sustained or claimed to
have been sustained by anyone, including but not limited to, any person, firm,
partnership, or corporation, in connection with or arising out of any omission or
act of commission by the Licensee or any of its employees, agents, partners, or
lessees, in encroaching upon the Town Property. In particular and without
limiting the scope of the foregoing agreement to indemnify and hold harmless,
the Licensee shall indemnify the Town for all claims, damages, liability, or court
awards, including costs and attorney’s fees that are or may be awarded as a
result of any loss, injury or damage sustained or claimed to have been sustained
by anyone, including but not limited to, any person, firm, partnership, or
corporation, in connection with or arising out of any claim in whole or in part that
all or any portion of the Private Improvements and encroachment permitted by
this Agreement constitutes a dangerous and/or unsafe condition within a public
right-of-way.
3.7. The Licensee agrees that it will never institute any action or suit at law or in
equity against the Town or any of its officers or employees, nor institute,
prosecute, or in any way aid in the institution or prosecution of any claim,
demand, or compensation for or on account of any damages, loss, or injury either
to person or property, or both, known or unknown, past, present or future, arising
as a result of or form the revocable license granted to the Licensee by this
Agreement. This provision includes but is not limited to claims relating to road
maintenance, snow removal or other public works activities performed by or on
behalf of the Town.
3.8. The Licensee agrees that the Town is not liable, and will not assume any liability,
responsibility, or costs for any damage, maintenance, or repair of any Private
Improvements erected or maintained by the Licensee under this Agreement.
3.9. The Licensee agrees to repair and reconstruct any damage to the Town Property
upon termination of this Agreement or removal of the Private Improvements
described in ¶ 3.1 and any other improvements erected by the Licensee on the
Town Property and the Licensee shall return the Town Property to its original
condition at the cost and expense of the Licensee and at no cost or expense to
Avon Road Revocable Encroachment License Agreement
for Parking Lot Improvements
Page 4 of 6
the Town. In the event that Licensee does not remove the Private Improvements
and repair and restore Town Property to the condition prior to this Agreement
within the time period determined in ¶ 3.2 above, then Licensee shall be deemed
to have abandoned the Private Improvements and any rights thereto and the
Town may proceed to remove the Private Improvements. The Town may seek
recovery of all costs incurred for the removal of Private Improvements from Town
Property, repair of damages to Town Property, and restoration of Town Property,
including legal costs and reasonable attorney fees.
3.10. The Licensee agrees to procure and maintain, at its own cost, a policy or policies
of insurance protecting against injury, damage or loss occurring on the licensed
premises in the minimum amount of $1,000,000.00 per occurrence. Such policy
or policies shall name the Town as an “additional insured”. However, the
Licensee’s failure to take such steps to insure the premises shall not waive,
affect, or impair any obligation of the Licensee to indemnify or hold the Town
harmless in accordance with this Agreement.
3.11. The Licensee shall be deemed to have intentionally and irrevocably abandoned
and relinquished rights and interest in the Private Improvements in the event that
the Licensee conveys all the Licensee’s interest in the property or properties
obtaining access or receiving benefit from the improvements and encroachments
described in this Agreement. The Town shall be entitled to rely upon the public
records of ownership maintained by the office of either the Eagle County Clerk
and Recorder or the Eagle County Assessor in rendering a determination that the
Licensee has abandoned and relinquished the Licensee’s rights and interests as
provided by this paragraph. In such event, the Town may remove and demolish
such improvements without notice to the Licensee.
4.0 TERMINATION FOR DEFAULT. Town may elect to terminate this Agreement and
revoke the license for encroachment on Town Property in the event that Licensee
defaults under any provision of this Agreement provided that Town first provides written
notice describing the default and Licensee fails to cure by 5:00 p.m. Mountain Time on
the third business day after the date of the written notice of default if such default
involves a failure to permit parking by the general public in accordance with ¶ 3.3 or a
failure to provide and maintain insurance required by ¶ 3.10 or fails to cure within thirty
(30) days after the date of a written notice of default for all other defaults in this
Agreement.
5.0 ASSIGNMENT. This Agreement shall not be assigned by the Licensee without the prior
written consent of the Town which may withhold its consent for any reason; provided that
the Town encourages the Licensee to inform any purchaser of the Licensee’s property or
interests of the existence of this Agreement and the Town will promptly consider any
request by the Licensee for assignment of this Agreement to such subsequent
purchaser.
6.0 NOTICES. Any notice required or permitted by this Agreement shall be in writing and
shall be deemed to have been sufficiently given for all purposes if personally served or if
sent by certified mail or registered mail, postage and fees prepaid, addressed to the
party to whom such notice is to be given at the address set forth on the signature page
below, or at such other address as has been previously furnished in writing, to the other
Avon Road Revocable Encroachment License Agreement
for Parking Lot Improvements
Page 5 of 6
party or parties. Such notice shall be deemed to have been given when deposited in the
United States Mail.
7.0 INTEGRATION AND AMENDMENT. This Agreement represents the entire agreement
between the parties and there are no oral or collateral agreements or understandings.
This Agreement may be amended only by an instrument in writing signed by the parties.
If any other provision of this Agreement is held invalid or unenforceable, no other
provision shall be affected by such holding, and all of the remaining provisions of this
Agreement shall continue in full force and effect. Invalidation of the Agreement in its
entirety shall revoke any authorization, whether explicit or implied to the continuing use
and occupancy of the Town Property for the Private Improvements.
8.0 GOVERNING LAW AND VENUE. This Agreement shall be governed by the laws of the
State of Colorado and venue for any action arising under this agreement shall be in the
appropriate court for Eagle County, Colorado.
9.0 WAIVER OF BREACH. 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.
10.0 BINDING EFFECT. This Agreement shall inure to the benefit of, and be binding upon,
the parties, their respective legal representatives, successors, heirs, and assigns;
provided, however, that nothing in this paragraph shall be construed to permit the
assignment of this Agreement except as otherwise expressly authorized herein.
11.0 UNDERLYING INTENT AND SCOPE. It is the intent of this Agreement that the Town
shall incur no cost or expense attributable to or arising from the construction,
maintenance, or operation of the Private Improvements and encroachment permitted by
this Agreement and that, in all instances, the risk of loss, liability, obligation, damages,
and claims associated with the encroachment shall be borne by the Licensee. This
Agreement does not confer upon the Licensee any other right, permit, license, approval,
or consent other than that expressly provided for herein and this Agreement shall not be
construed to waive, modify, amend, or alter the application of any other federal, state, or
local laws, including laws governing zoning, land use, property maintenance, or
nuisance.
12.0 AUTHORITY TO BIND PARTY. The undersigned persons represent that they are
expressly authorized to execute this Agreement on behalf of the Parties and to bind their
respective Parties and that the Parties may rely upon such representation of authority.
13.0 LEGAL FEES AND COSTS. In the event the Town seeks legal action to enforce this
Agreement or to recover reimbursement costs for removal of Private Improvements
from, repair of any damages, and/or restoration of Town property subject to this
Agreement, Town shall be entitled to recover any and all legal costs and attorney’s fees
incurred.
[SIGNATURE PAGE FOLLOWS]
Avon Road Revocable Encroachment License Agreement
for Parking Lot Improvements
Page 6 of 6
DATED AUGUST 12, 2014.
TOWN OF AVON:
By: ________________________________
Rich Carroll, Mayor
ATTEST: Approved as to Form:
_________________________________ ______________________________
Debbie Hoppe, Town Clerk Eric Heil, Town Attorney
LICENSEE:
By: _________________________________
Name:_______________________________
Title:________________________________
Address: PO Box 1980
Avon, CO 81620
STATE OF COLORADO )
)
COUNTY OF EAGLE )
The foregoing instrument was acknowledged before me this ________ day of
____________________, 20____, personally by _______________________________.
___________________________________
Notary Public
(SEAL) Commission expires: _____________
TOWN COUNCIL REPORT
1st Amendment to Wyndham Development Agreement PAGE 1 OF 4
To: Mayor and Town Council
From: Matt Pielsticker, AICP, Planning Manager
Date: September 3, 2014
Agenda Topic: First Amendment to Wyndham Resort Development Agreement – PUBLIC HEARING
Introduction
The Town Council approved the Wyndham project on Lot 61 (aka 75 Benchmark Road) along with a
Development Agreement by Ordinance No. 13-03 in February of 2013. Since that time some of the
public improvements contemplated in the Development Agreement on Lettuce Shed lane have
changed. Town staff has proposed amendments to the Development Agreement. Wyndham’s
successor to the Development Agreement is 75 Benchmark LLC. The First Amendment to
Development Agreement is attached to this memorandum. Per the original Development
Agreement, the Council is required to conduct a public hearing for an amendment but may approve
the amendment by motion. 75 Benchmark LLC has reviewed and approved the proposed
amendments. .
Summary
Following is a summary of the three (3) amendments:
• Existing Section 5.2(a)
Proposed Section 5.2(a)
(a) Area A of Exhibit B: Owner agrees to install all landscaping, hardscape and
other similar improvements, consistent with the 2014 Mall Improvement Plan, withing
Area A of Exhibit B as called out in the Development Plan and agrees to pay Town
$25,693.34 for the installation of bollard lighting within Area A of Exhibit B.
Rationale: Area A of Exhibit B is the area between the Wyndham timeshare building and
the edge of the Lettuce Shed Lane Path. The current wording anticipated that Wyndham
would purchase and construct five (5) light fixtures in this area and the rest of the
Wyndham landscaping. During the design process for the updated (2104) Mall
Improvement Plans, the lighting was modified to include five (5) bollard style lights and
step lighting in a seating wall along the entire stretch of the path. Since the construction
of the light fixtures is integral to the rest of the Town’s improvements in the area,
including electrical work, it was determined that having the Town’s contractor purchase
and install the lights would be more efficient for both Town and 75 Benchmark LLC.
TOWN COUNCIL REPORT
1st Amendment to Wyndham Development Agreement PAGE 2 OF 4
• Existing Section 5.2(b)
Proposed Section 5.2(b)
(b) Area B of Exhibit B: Town agrees to install Area B of Exhibit B (the LSL Path) as
called out in the Development Plan. The Town agrees to complete all construction within
Area B of Exhibit B on or before the date that construction of the Development is complete,
as evidenced by Owner’s application to the Town for a certificate of occupancy for the
Development.
Rationale: The Town Staff determined that extending the heat recovery infrastructure
down the length of the mall would be cost prohibitive compared to the cost of snow
removal by contract, by hand in the same areas.
• Existing Section 5.2(h)
Proposed Section 5.2(h)
-STRUCK IN ITS ENTIRETY-
Rationale: After further reviewing the feasibility of this snow melt system during the 2013
redesign phase, the system was removed from the project. The heat recovery system will
instead be earmarked for future expansion of municipal buildings as environed in the
Town’s Master Plan documents (i.e. future town hall, recreation center expansion).
TOWN COUNCIL REPORT
1st Amendment to Wyndham Development Agreement PAGE 3 OF 4
Staff Recommendation
Approve the “First Amendment to Development Agreement” as drafted and attached hereto.
Proposed Motion
“I move to approve the First Amendment to Development Agreement as attached to Matt
Pielsticker’s memorandum dated September 3, 2014.”
Attachments
Public Property Improvement Plan from Development Agreement
First Amendment to Development Agreement
TOWN COUNCIL REPORT
1st Amendment to Wyndham Development Agreement PAGE 4 OF 4
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
WHEREAS, the Town of Avon (“Town”) and Wyndham Vacation Resorts, Inc. (“Wyndham”) entered into a Development Agreement dated February 26, 2013, (“Development Agreement”) concerning Lot 1, a Resubdivision of a Replat of Lot 61, Block 2, Benchmark at Beaver Creek, according to the Plat thereof filed February 23, 2004 at Reception no. 868662, County of Eagle, State of Colorado (“Property”); and,
WHEREAS, Wyndham conveyed the Property to 75 Benchmark LLC (“Owner”), on October 22,2013, and as such, Wyndham assigned the Development Agreement to Owner in that certain Assignment and Assumption of Development Agreement, dated October 22, 2013.
WHEREAS, the Town and Owner desire to amend the Development Agreement in writing in accordance with Section 9.7, and the Town has posted notice and conducted public hearings as required.
NOW, THEREFORE, the Town and Owner agree to the amend Sections 5.2(a), 5.2(b) and 5.2(h) to the Development Agreement as follows:
Section 5.2(a) of the Development Agreement is amended by replacing Section 5.2(a) in its entirety to read as follows:
(a) Area A of Exhibit B: Owner agrees to install all landscaping, hardscape and other similar improvements, consistent with the 2014 Mall Improvement Plan, within Area A of Exhibit B as called out in the Development Plan and agrees to pay Town $25,693.34 for the installation of bollard lighting within Area A of Exhibit B.
Section 5.2(b) is amended by deleting the second sentence, so that Section 5.2(b) shall read in its entirety as follows:
(b) Area B of Exhibit B: Town agrees to install Area B of Exhibit B (the LSL Path) as called out in the Development Plan. The Town agrees to complete all construction within Area B of Exhibit B on or before the date that construction of the Development is complete, as evidenced by Owner’s application to the Town for a certificate of occupancy for the Development.
Section 5.2(h) is deleted in its entirety.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, Town and Owner have executed this Agreement as of the date first written above. TOWN: TOWN OF AVON
By:__________________________________ Rich Carroll, Mayor
ATTEST ___________________________________ Debbie Hoppe, Town Clerk
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
Subscribed before me this _______ day of _________________, 20__, by
_________________ as Mayor and ___________________ as Town Clerk of Town of Avon, a
Colorado municipal corporation.
My commission expires: _______________________
__________________________________________
Notary Public
OWNER:
75 Benchmark LLC, a Colorado limited liability company
By:____________________________________ Its:____________________________________
STATE OF __________ )
) ss.
COUNTY OF ___________ )
Subscribed before me this _______ day of _________________, 20__, by
________________________ as _________________________________ of 75
BENCHMARK LLC, a Colorado limited liability company.
My commission expires: _______________________
__________________________________________
Notary Public
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
WHEREAS, the Town of Avon (“Town”) and Wyndham Vacation Resorts, Inc. (“Wyndham”) entered into a Development Agreement dated February 26, 2013, (“Development Agreement”) concerning Lot 1, a Resubdivision of a Replat of Lot 61, Block 2, Benchmark at Beaver Creek, according to the Plat thereof filed February 23, 2004 at Reception no. 868662, County of Eagle, State of Colorado (“Property”); and,
WHEREAS, Wyndham conveyed the Property to 75 Benchmark LLC (“Owner”), on October 22,2013, and as such, Wyndham assigned the Development Agreement to Owner in that certain Assignment and Assumption of Development Agreement, dated October 22, 2013.
WHEREAS, the Town and Owner desire to amend the Development Agreement in writing in accordance with Section 9.7, and the Town has posted notice and conducted public hearings as required.
NOW, THEREFORE, the Town and Owner agree to the amend Sections 5.2(a), 5.2(b) and 5.2(h) to the Development Agreement as follows:
Section 5.2(a) of the Development Agreement is amended by replacing Section 5.2(a) in its entirety to read as follows:
(a) Area A of Exhibit B: Owner agrees to install all landscaping, hardscape and other similar improvements, consistent with the 2014 Mall Improvement Plan, within Area A of Exhibit B as called out in the Development Plan and agrees to pay Town $25,693.34 for the installation of bollard lighting within Area A of Exhibit B.
Section 5.2(b) is amended by deleting the second sentence, so that Section 5.2(b) shall read in its entirety as follows:
(b) Area B of Exhibit B: Town agrees to install Area B of Exhibit B (the LSL Path) as called out in the Development Plan. The Town agrees to complete all construction within Area B of Exhibit B on or before the date that construction of the Development is complete, as evidenced by Owner’s application to the Town for a certificate of occupancy for the Development.
Section 5.2(h) is deleted in its entirety.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, Town and Owner have executed this Agreement as of the date first written above. TOWN: TOWN OF AVON
By:__________________________________ Rich Carroll, Mayor
ATTEST ___________________________________ Debbie Hoppe, Town Clerk
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
Subscribed before me this _______ day of _________________, 20__, by
_________________ as Mayor and ___________________ as Town Clerk of Town of Avon, a
Colorado municipal corporation.
My commission expires: _______________________
__________________________________________
Notary Public
OWNER:
75 Benchmark LLC, a Colorado limited liability company
By:____________________________________ Its:____________________________________
STATE OF __________ )
) ss.
COUNTY OF ___________ )
Subscribed before me this _______ day of _________________, 20__, by
________________________ as _________________________________ of 75
BENCHMARK LLC, a Colorado limited liability company.
My commission expires: _______________________
__________________________________________
Notary Public
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 Avon Town Council members
FROM: Eric J. Heil, Town Attorney
RE: Amendments to Authority Agreement
DATE: September 4, 2014
SUMMARY: The Upper Eagle River Water Authority (“Authority”) has proposed amendments to the 1984
Establishing Agreement and the 1998 Master Service Agreement and has proposed consolidating the two
agreements into one agreement, the “Authority Agreement”. This memorandum identifies the substantive
changes in the Authority Agreement compared to the existing agreements. Attached is Resolution 14-22
which would adopt the Authority Agreement. Also attached is a Letter Agreement concerning any changes
to the Traer Creek water rights which is to be considered and approved in conjunction with the Authority
Agreement. Finally, three REDLINE sheets are included to show specific revisions from the Authority
board meeting on August 28, 2014.
SUBSTANTIVE CHANGES:
Paragraph 12. Language regarding the leasing and conveyance of water rights by Contracting Parties to
the Authority has been combined and updated to define the right of Contracting parties to participate as a
co-applicant in any water court proceeding involving water rights leased to the Authority. The Authority’s
obligation to administer each Contracting Party’s leased augmentation plans or water transfer decrees is
better defined in accordance with local government law by stating the Authority will “use its best efforts to
protect leased Water Rights from injury.”
Fees: Fee increases that required unanimous consent in the original agreements still require unanimous
consent; however, the Authority Agreement refers to “consent of all the Authority Board Members” rather
than unanimous consent of the Contracting Parties. This provides a simplified procedure for the Authority
record keeping because it only requires verifying that each Authority Board member has approved the rate
increase rather than also obtaining resolutions and certifications from the governing body of each
Contracting Party. At the Authority Board meeting on August 28, 2014, there was significant discussion
and difference of opinion on whether fee increases should require unanimous consent versus a majority
plus one (currently 5 out of 6 votes). The Authority Agreement as included with this memorandum is the
version submitted by the Authority staff to the Contracting Parties for consideration. The Authority
Agreement includes additional definition of various fees for capital improvements and operations. Pursuant
to statutory authority and general local government law, the Authority has broad implied authority to
establish fees related to improvements and authority. The additional definition of specific fees improves
administration by defining and documenting existing practices.
Debt Service Fee: The Authority Agreement includes a new fee provision for Debt Service Fee, which is a
fee that was presented and approved by unanimous consent of Contract Parties last spring. Any
additional, new or increased Debt Service Fee would require unanimous consent of all Authority Board
Members.
Differential Service Charge: The Authority Agreement includes a new potential fee referred to as a
Differential Service Charge. The Differential Service Charge can be approved by a majority vote of the
Authority Board members; however, the affected Contracting Party can prevent the imposition of a
Differential Service Charge by objecting within 30 days of notice of such charge.
M EMORANDUM & PLANNING, LLC
Avon Town Council
Amended Upper Eagle River Water Authority Agreement
September 4, 2014
Page 2 of 2
Plant Investment Fee: The Plant Investment Fee language has been updated to reference the state
statute regarding development charges for capital expenditures. The existing agreements allowed the
Authority Board to increase Plant Investment Fees up to the inflationary index by a simple majority vote and
required unanimous consent for any increases above the inflationary index. The new language requires
unanimous consent of all the Authority Board Members for any increase.
Treated Water Storage Fee: The existing agreements do not expressly address a Treated Water Storage
Fee although the Authority has imposed a fee for this purpose. The Authority Agreement includes a
specific definition of such term and allows the establishment and setting of the Treated Water Storage Fee
by simple majority vote (i.e. 4 votes).
Cash-in-Lieu of Water Rights Fee: The existing agreements do not expressly address a Cash-in-Lieu of
Water Rights Fee although the Authority has accepted cash-in-lieu of conveyance of water rights. The
Authority Agreement includes a specific definition of such term and allows the establishment and setting of
a Cash-in-Lieu of Water Rights Fee by a simple majority vote (i.e. 4 votes).
Other amendments update and clarify language related to the Authority’s practices and accounting for
costs, such as the definition of “Cost of Authority Assets.”
PROPOSED MOTION: “I move to approve Resolution No. 14-22 A RESOLUTION APPROVING
THE AUTHORITY AGREEMENT AMENDING AND RESTATING THE AGREEMENT
ESTABLISHING THE UPPER EAGLE REGIONAL WATER AUTHORITY AND THE
MASTER SERVICE CONTRACT (“Authority Agreement”) AND APPROVING A LETTER
AGREEMENT REGARDING TRAER CREEK WATER RIGHTS (“Letter Agreement”)
Thank you, Eric
ATTACHMENTS: A: Resolution No. 14-22 with Authority Agreement and Letter Agreement
B: Three Redline Pages indicating language changes approved at August 28, 2014
Upper Eagle River Water Authority board meeting.
Resolution No. 14-22 Approving the Authority Agreement
September 9, 2014
TOWN OF AVON, COLORADO
RESOLUTION NO. 14-22
SERIES OF 2014
A RESOLUTION APPROVING THE AUTHORITY AGREEMENT
AMENDING AND RESTATING THE AGREEMENT ESTABLISHING
THE UPPER EAGLE REGIONAL WATER AUTHORITY AND THE
MASTER SERVICE CONTRACT (“Authority Agreement”) AND
APPROVING A LETTER AGREEMENT REGARDING
TRAER CREEK WATER RIGHTS (“Letter Agreement”)
WHEREAS, the Upper Eagle River Water Authority (“Authority”) have proposed amendments
and updates to the 1984 Establishing Agreement and 1998 Master Service Agreement as well as
have proposed consolidating both agreements into one agreement for efficiency, convenience
and accuracy; and
WHEREAS, the Avon Town Council finds that the Authority Agreement is acceptable and will
enhance the governance and function of the Authority; and,
WHEREAS, CRS §29-1-204.2 authorizes the establishment of an authority by a combination of
municipalities and special districts with such purpose and powers as is set forth in the Authority
Agreement; and,
WHEREAS, the Avon Town Council finds that the Authority Agreement will promote the
health, safety and general welfare of the Avon community by improving the governing terms by
which the Authority provides water to the Town of Avon, the other members of the Authority,
and third parties who receive water from the Authority; and,
WHEREAS, the Avon Town Council finds that the Letter Agreement clarifies and confirms the
Town of Avon’s rights with regard to the Traer Creek water rights conveyed to the Authority and
is an essential supplemental and complimentary agreement to the Authority Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF AVON, COLORADO, that the Town of Avon hereby approves the Authority Agreement
attached hereto as Exhibit A and approves the Letter Agreement attached hereto as Exhibit B;
authorizes the Mayor to execute the Authority Agreement and Letter Agreement; and authorizes
the Mayor, Town Manager and Town Attorney to review and approve any additional
amendments to Authority Agreement and Letter Agreement to correct typographical, citation,
reference and grammar errors and such amendments as may be determined acceptable to the
other members of the Authority which do not adversely affect the interests of the Town of Avon.
ADOPTED September 9, 2014.
AVON TOWN COUNCIL
BY:_______________________________ Attest:_____________________________
Rich Carroll, Mayor Debbie Hoppe, Town Clerk
ATTACHMENT A
AUTHORITY AGREEMENT
AMENDING AND RESTATING THE
AGREEMENT ESTABLISHING THE
UPPER EAGLE REGIONAL WATER AUTHORITY
AND THE MASTER SERVICE CONTRACT
THIS AMENDED AND RESTATED AGREEMENT, (“Authority
Agreement”) establishing the Upper Eagle Regional Water Authority (“Authority”) is
made and entered into this 1st day of October, 2014, by and among ARROWHEAD
METROPOLITAN DISTRICT, TOWN OF AVON (its predecessor being the Avon
Metropolitan District), BEAVER CREEK METROPOLITAN DISTRICT, BERRY
CREEK METROPOLITAN DISTRICT, EAGLE-VAIL METROPOLITAN DISTRICT,
and EDWARDS METROPOLITAN DISTRICT, all of which are municipal or quasi-
municipal corporations of the State of Colorado, all of which are located in the County of
Eagle, State of Colorado (referred to individually as a “Contracting Party” and
collectively as the “Contracting Parties”).
RECITALS
WHEREAS, each of the Contracting Parties is authorized to own and operate
water systems or facilities and is empowered to supply water for domestic and other
public and private purposes by any available means, and to provide all necessary
property, diversion works, reservoirs, treatment works and facilities, equipment and
appurtenances incident thereto; and
WHEREAS, any combination of municipalities, special districts or other political
subdivisions of this state that are authorized to own and operate water systems or
facilities may establish, by contract with each other, a separate governmental entity, to be
known as a water authority, to be used by the contracting parties to effect the
development of water resources, systems, or facilities in whole or in part for the benefit
of the inhabitants of such contracting parties or others at the discretion of the board of
directors of the water authority, C.R.S. § 29-1-204.2 (the “Act”); and
WHEREAS, such contractual relationships between local governments are
encouraged by Section 18(2)(a) and (b), Article XIV of the Colorado Constitution,
Section 29-1-203, C.R.S., and Section 32-1-1001, C.R.S., to provide intergovernmental
services and facilities, when authorized by their governing bodies; and
EXHIBIT A: AUTHORITY AGREEMENT
2
WHEREAS, the Authority was established by the Contracting Parties as a
political subdivision and a public corporation of the State of Colorado, separate from the
Contracting Parties and having the duties privileges, immunities, rights, liabilities, and
disabilities of a public body politic and corporate, by the Agreement Establishing the
Upper Eagle Regional Water Authority made on September 18, 1984 and as amended on
April 1, 1985 (“EA”); since its establishment, the Authority has been and shall continue
to be used by the Contracting Parties to effect the development of water resources,
systems, and facilities in whole or in part for the benefit of their inhabitants or others at
the discretion of the Board of Directors of the Authority; and the Authority is now the
largest water service provider in Eagle County and is governed by a board of directors
appointed by the governing bodies of the Contracting Parties; and
WHEREAS, the Contracting Parties entered into an Amended and Restated
Master Service Contract (“MSC”) made as of January 1, 1998. The Contracting Parties
and the Authority desire to amend and restate the MSC and replace it by this Authority
Agreement to re-affirm the conveyance of their individual Water Systems to the
Authority and for simplification and accommodation of changes in operation and law;
and
WHEREAS, the establishment of the Authority by the Contracting Parties in
Eagle County, Colorado, has served a public purpose and has promoted the health, safety,
prosperity, security and general welfare of the inhabitants and taxpayers of the
Contracting Parties, Eagle County, and the State of Colorado; and
WHEREAS, the Authority provides treated water to customers of third parties by
contract under substantially the same terms, conditions and costs under which it provides
treated water to its Water Service Customers, as hereinafter defined. The third parties
presently so served are:
A. EMD Limited Liability Company, PVRT NOTT I LLC, PVRT NOTT II
LLC, and PVRT NOTT III LLC, per agreement with Eagle-Vail originally
dated May 15, 1997, with a First Amendment dated June 22, 1999, under
which the Town of Avon has been substituted for Eagle-Vail to provide
water service to the Village at Avon that has now been annexed to the
Town of Avon;
B. Kensington Partners, Stag Gulch Partners, and Galena Partners (collectively
known as the Partnerships), per an Amended and Restated Water Service
Agreement with Cordillera Metropolitan District as successor to Squaw
Creek Metropolitan District to provide water service to the Cordillera
service area;
EXHIBIT A: AUTHORITY AGREEMENT
3
C. Bachelor Gulch Metropolitan District, under Section 9(b) of an Exclusion
Agreement between Beaver Creek and Vail Associates, Inc., dated January
4, 1995; and
D. Chateau St. Claire (now known as The Ascent), per a Water Service
Agreement with Eagle-Vail, dated December 12, 1996, which is now
annexed to and served through the Town of Avon.
WHEREAS, it is the responsibility of the Authority to provide a dependable legal
and physical supply of water to the Contracting Parties in all reasonably foreseeable
hydrologic conditions; and
WHEREAS, it is the responsibility of the Authority to meet its water service
obligations to any third party it serves by contract.
WHEREAS, the Contracting Parties and the Authority now wish to replace the
EA and the MSC, which are hereby known as the “Authority Agreement.”
NOW, THEREFORE, in consideration of the mutual performance of the
covenants, agreements and promises set forth hereinafter, the Contracting Parties agree to
replace, amend and restate Agreement Establishing the Upper Eagle Regional Water
Authority made on September 18, 1984 and as amended on April 1, 1985, and the
Amended and Restated Master Service Contract made and entered into as of January 1,
1998, by this Authority Agreement to read in its entirety as follows:
ESTABLISHMENT OF UPPER EAGLE REGIONAL WATER AUTHORITY
1. Effective Date. The effective date of this Authority Agreement shall be January
1, 2014. As of the effective date of this Authority Agreement, the EA and the
MSC are hereby superseded and all water rights activities and formal Board
actions, consents and approvals of the Authority taken prior to the Effective Date
are hereby ratified and affirmed, and any contracts or stipulations entered into or
decrees obtained remain in full force and effect, except as provided in
Paragraph 49. Such Board actions, consents and approvals shall include all formal
actions of the Board and all contracts, stipulations, settlements, decrees and other
water rights activities approved on behalf of the Authority by an authorized
representative (including without limitation the Authority general manager or legal
counsel), which actions were noticed to the Board in Authority Board meeting
minutes or public Authority board meeting packets, or where copies of the
contracts, stipulations, settlements, decrees or other water rights activities were
given to the Authority Board and no objection was raised. The organization of the
Authority pursuant to law and the obligations incurred by and the bonds of such
Authority issued after September 18, 1984, and the proceedings related thereto, are
hereby validated.
EXHIBIT A: AUTHORITY AGREEMENT
4
2. Term. This Authority Agreement shall remain in effect until the Authority has no
bonds, notes or other obligations outstanding in accordance with the terms of such
obligations and the Contracting Parties unanimously consent to the dissolution of
the Authority. The Initial Term of this Authority Agreement shall be ten (10)
years ending on December 31, 2023, but such term shall be subject to automatic
renewal and extension for successive ten (10) year terms thereafter unless all of
the Contracting Parties unanimously approve changes to this Authority Agreement
during any extended term to be effective on the first day of the extended term,
including provision for payment of all bonds, notes and other obligations
outstanding in accordance with their terms.
3. Establishment of the Upper Eagle Regional Water Authority. By contract
with each other as authorized by the Act, the Contracting Parties do hereby ratify
and affirm the establishment of the Upper Eagle Regional Water Authority
(“Authority”) on September 18, 1984, a political subdivision and a public
corporation of the State of Colorado, separate from the Contracting Parties and
having the duties, privileges, immunities, rights, liabilities, and disabilities of a
public body politic and corporate.
The Contracting Parties have developed water resources, systems and facilities for
the benefit of their inhabitants which are now owned or leased by and operated by
the Authority to provide water service directly to Authority Water Service
Customers residing within and without the jurisdictional boundaries of the
Contracting Parties. The legislative power of the Authority is vested in its Board
of Directors. The Board of Directors operates by a majority vote on some items, a
super-majority (majority plus one) vote on other items and unanimous consent to
add a Contracting Party or to modify this Authority Agreement. The Authority
may continue to operate in perpetuity until rescinded or terminated by the
Contracting Parties, except that such contract may not be rescinded or terminated
so long as the Authority has bonds, notes, or other obligations outstanding, unless
provision for full payment of such obligations, by escrow or otherwise has been
made. Under the Act, the Authority’s powers include, but are not limited to the
power to make and enter into contracts; to employ agents and employees; to
acquire, construct, manage, maintain, or operate water systems, facilities, works or
improvements, or any interest therein; to condemn property for public use as
rights-of-way; to incur debts, liabilities, or obligations; to sue and be sued in its
own name; to have and use a corporate seal; to fix, maintain, and revise fees, rates,
and charges for functions, services or facilities provided by the Authority; to
adopt, by resolution, rules and regulations respecting the exercise of its powers
and the carrying out of its purposes; to exercise any other powers which are
essential to the provision of functions, services or facilities by the entity and which
are specified in this Authority Agreement; to do and perform any acts and things
authorized by the Act under, through, or by means of an agent or by contracts with
EXHIBIT A: AUTHORITY AGREEMENT
5
any person, firm or corporation; to permit other municipalities, special districts, or
political subdivisions of this state that are authorized to provide water to enter the
contract at the discretion of the Board of Directors, subject to fulfilling any and all
conditions or requirements of the contract establishing the Authority, except that
rates need not be uniform between the Authority and the Contracting Parties; and
to provide for the rehabilitation of any surfaces adversely affected by the
construction of water pipelines, facilities, or systems through the rehabilitation of
plant cover, soil stability, and other measures appropriate to the subsequent
beneficial use of such lands.
4. Definitions. The terms listed in this Paragraph shall have the meanings herein
specified for all purposes of this Authority Agreement, and of any instrument or
document appertaining hereto, except where the context, by clear implication
otherwise requires.
a. “Act” shall mean C.R.S. § 29-1-204.2, as amended, which provides for
creation of, and establishes powers attendant to, water authorities.
b. “Annual Budget” shall mean, with respect to a Contract Year, the budget
of the Authority prepared in accordance with Paragraph 25 hereof for such
Contract Year, or, in the case of an amended Annual Budget, for the
remainder of such Contract Year.
c. “Annual Costs” shall mean, with respect to a Contract Year, and to the
extent not paid or to be paid from the proceeds of Obligations or other
funds legally available to the Authority, the Cost of Authority Assets, and
all costs and expenses of the Authority that are paid or incurred during such
Contract Year and are allocable to Authority Assets, including, but not
limited to, the payment of the Debt Service, the Operation and Maintenance
Expenses, and all Depreciation and Replacement Expenses.
d. “Authority” shall mean the Upper Eagle Regional Water Authority.
e. “Authority Assets” shall mean the water rights and facilities owned by the
Authority on the effective date of this Authority Agreement, including the
Contracting Parties’ former Water Systems, and the shares in the Eagle
Park Reservoir Company representing up to 579 acre-feet of Eagle Park
Reservoir Project Yield water. Definition and scope of Authority Assets
shall automatically be further modified in the future by water rights and
facilities acquired by or disposed of by the Authority during the term of this
Authority Agreement.
EXHIBIT A: AUTHORITY AGREEMENT
6
f. “Base Charge” shall mean the amount charged each SFE irrespective of
quantity of water used, which charge may be modified as provided in
subparagraph a of paragraph 22 of this Authority Agreement.
g. “Cash-in-Lieu of Water Rights Fee” shall mean a payment of cash in lieu
of the dedication of water rights, in the discretion of the Authority’s Board
of Directors, sufficient to serve the applicant’s proposed water demands
and uses as required by the Authority’s Board of Directors.
h. “Contract Year” shall mean a year coterminous with the fiscal year of the
Authority for the purpose of calculating Annual Costs.
i. “Costs of Authority Assets” shall mean the Authority’s capital costs
properly attributable to the construction and other acquisition of Authority
Assets, including, but not limited to:
(1) the cost of acquisition by or for the Authority of real or personal
property or any interest therein;
(2) costs of physical construction, engineering, inspection, fiscal, and
legal expenses relating to Authority Assets;
(3) interest which is estimated will accrue during the construction or
other acquisition period and for a period not exceeding one (1) year
thereafter on Obligations;
(4) any discount on the sale of the Obligations; costs of financial,
professional, and other estimates relating to Authority Assets;
(5) any administrative, operating, and other expenses of the Authority
prior to and during any acquisition period and for a period not
exceeding one (1) year thereafter, attributable to Authority Assets as
may be determined by the Board of Directors;
(6) all other expenses as may be necessary or incident to the financing,
acquisition, improvement, equipping, and completion of Authority
Assets and the placing of the same in operation; and
(7) provision of reserves for working capital, Operation and
Maintenance Expenses or for payment or security of principal or
interest on the Obligations as the Board of Directors may determine.
j. “Debt Service” shall mean, with respect to any period, the aggregate of the
amounts of principal, interest and redemption premium, if any, required to
EXHIBIT A: AUTHORITY AGREEMENT
7
be paid from revenues of the Authority during said period on any
Obligations then outstanding in accordance with their terms.
k. “Debt Service Rate/Fees” shall mean a billing rate that when applied to the
Customer account’s SFE factor, results in a portion of the charges due from
the Customer to the Authority. Revenues collected by the Authority from
Debt Service Fees are used by the Authority specifically to pay debt service
on borrowed funds.
l. “Depreciation and Replacement Expenses” shall mean a charge to
operations of the Cost of Authority Assets based on the calculated useful
life of such Assets.
m. “Dwelling Unit” shall mean a habitation of an average size.
n. “Obligations” shall mean bonds, notes, or other evidences of borrowing by
the Authority for purposes of acquiring or constructing Authority Assets or
any bond, note or other borrowing executed and delivered to refund same.
o. “Operation and Maintenance Expenses” shall mean all expenses incurred
in the operation and maintenance of the Authority’s Water System and
normally recurring expenses incurred by the Authority in the conduct of its
activities which are properly Authority costs under generally accepted
accounting principles as applied to governmental units. Such term does not
include Depreciation and Replacement Expenses or reserves therefor, or
Debt Service on the Authority’s Obligations, or principal of or interest on
any other borrowing of the Authority.
p. “Plant Investment Fee” shall mean the one-time charge per SFE for each
property served by the Authority as a pro-rata share of the capital costs
necessary to serve new development. Receipts from Plant Investment Fees
may offset the Debt Service Fee unless the Board of Directors reserves such
revenues for capital improvements in a Restricted Reserve Fund. Plant
Investment Fee is subject to increases by the Board of Directors of the
Authority as provided in subparagraph a of paragraph 23 of this Authority
Agreement.
q. “Service Charge” shall be the charge to each customer for Water Service
by the Authority, which charge shall be calculated as provided in
subparagraph b of paragraph 22 of this Authority Agreement. As so
calculated, the Service Charge may be identified as the Water Usage
Charge in Statements issued by the Authority.
EXHIBIT A: AUTHORITY AGREEMENT
8
r. “Single Family Equivalent Unit (SFE)” shall mean a use which is
estimated to have an impact upon the Water System equal to that of the
average usage of a Dwelling Unit, as determined by the Authority.
s. “Surcharge” shall mean a charge unilaterally imposed by a Contracting
Party on a customer within any Contracting Party’s jurisdictional
boundaries.
t. “Treated Water Storage Fee” shall mean a fee charged to a customer for
water storage facilities for property which is newly included into a
Contracting Party, either by annexation, inclusion or contract, or property
which has received an increase in its allowed density, which action has
resulted in a need for additional treated water storage.
u. Water Rights Cash-in-Lieu Fee” shall mean a cash payment made in lieu
of water rights dedication where water rights are not available to the
developer to dedicate and payment of such Fee has been specifically and
formally approved by the Board of Directors of the Authority.
v. “Water Rights Fund” shall mean the fund or escrow of monies received
for water rights purchases and expenses. Water Rights Cash-in-Lieu Fees
and related revenues shall be deposited to this Fund.
w. “Water Service” shall mean the Authority’s construction and other
acquisition of Authority Assets, its diversion, storage, treatment,
transmission of water for use by inhabitants of the Authority’s service area
or others, and its maintenance of Authority Assets at all times in good and
workable condition and available for such transmission.
x. “Water Service Customer” shall mean customers of the Authority
residing within and without the jurisdictional boundaries of the Contracting
Parties receiving water service from the Authority.
y. “Water System” shall mean all facilities and properties, real, personal,
mixed or otherwise, now owned or hereafter acquired for provision of
Water Service by any Contracting Party or the Authority through purchase,
construction, or otherwise, and in any way appertaining thereto, whether
situated within or without the limits of the Contracting Parties, or both
within or without the limits of the Contracting Parties, excluding water
rights.
z. “Water Tap Fee” shall mean the impact fee or similar development charge
that may be imposed by a Contracting Party pursuant to C.R.S. § 29-20-
104.5 to fund expenditures by such local government on water capital
EXHIBIT A: AUTHORITY AGREEMENT
9
facilities needed to serve new development within its jurisdictional
boundaries. Water Tap Fees shall, unless formally requested not to, be
collected by the Authority and remitted to the Contracting Party imposing
the Water Tap Fee for expenditure on capital facilities needed to serve the
new development for which the Water Tap Fee was imposed.
5. Purposes. The purposes of the Authority are to supply water for domestic and
other public and private purposes; to provide all necessary water diversion works,
reservoirs, treatment works and facilities, equipment and appurtenances incident
thereto; to effect the development of water resources, systems or facilities, in
whole or in part, for the use and benefit of the Contracting Parties, their
inhabitants, and others; and to provide efficient, effective, and reliable water
service.
6. Functions or Services. The functions or services to be provided by the Authority
are the provision of treated water to persons residing within the boundaries of the
Contracting Parties and to others residing within the Service Area of the Authority
and having a water tap served by the Authority’s water distribution system
(collectively “Water Service Customers”), by:
a. Acquiring raw water from the Contracting Parties, from others with whom
the Authority contracts to furnish treated water, and from those persons or
entities who have raw water available for treatment and use by the
Contracting Parties or others.
b. Acquiring, constructing, owning, reconstructing, improving, rehabilitating,
repairing, operating, and maintaining by way of illustration and not
limitation, the following: raw water diversion, transmission and storage
facilities; water treatment facilities and treated water storage systems,
together with any and all appurtenances thereto; or interests in any of the
above-described facilities, for the purpose of diverting and delivering raw
water to the treatment facilities, treating such water, and delivering treated
water from the treatment facilities to the Authority’s Water Service
Customers.
c. Acquiring water rights and developing water resources for treatment,
augmentation and use by the Contracting Parties, their inhabitants, and
others.
d. Selling treated water to the Authority’s Water Service Customers.
e. Providing such other services or functions as may be authorized by law and
determined by the Authority Board of Directors, to be in the best interests
of the Contracting Parties and the Authority’s Water Service Customers.
EXHIBIT A: AUTHORITY AGREEMENT
10
7. Powers of the Authority. To enable the Authority to carry out its functions and
provide the services described herein, the Authority, acting by and through its
Board of Directors, shall have the following general powers:
a. To develop water resources, systems and facilities, in whole or in part, for
the benefit of the Contracting Parties and the Authority’s Water Service
Customers or others, at the discretion of the Board of Directors, subject to
fulfilling the terms and conditions of this Authority Agreement.
b. To acquire, own, construct, manage, maintain, or operate water systems,
facilities, works, or improvements, or any interest therein.
c. To acquire, hold, lease (as lessor or lessee), sell or otherwise dispose of any
legal or equitable interest in real or personal property, including water
rights, utilized for the purposes of raw water diversion, storage,
transmission and treatment, storage and distribution of treated water, in the
discretion of the Authority’s Board of Directors.
d. To conduct its business and affairs for the benefit of the Contracting Parties
and its Water Service Customers, in the discretion of the Authority’s Board
of Directors.
e. To enter into, make and perform contracts of every kind with other local
governmental entities, the State of Colorado, or any political subdivision
thereof, the United States, or any political subdivision thereof, and any
individual, firm, association, partnership, corporation or any other
organization of any kind.
f. To hire agents, including, but not limited to, engineers, attorneys, architects
and consultants, and employees.
g. To incur debts, liabilities or obligations to the extent and in the manner
permitted by law, and borrow money and, from time to time, to make,
accept, endorse, execute and deliver bonds, notes and other obligations of
the Authority for moneys borrowed; or in payment for property acquired, or
for any of the other purposes, services or functions of the Authority, as
provided by law; and to the extent permitted by law, to secure the payment
of any such obligations by mortgage, pledge, deed, indenture, agreement or
other collateral instrument, or by other lien upon or assignment of all or any
part of the properties, rights, assets, contracts, easements, revenues and
privileges of the Authority; provided, however, in no event shall the
Authority be authorized to encumber any interest in water rights assigned
or leased to the Authority by a Contracting Party, unless authorized by the
Contracting Party.
EXHIBIT A: AUTHORITY AGREEMENT
11
h. To own, operate and maintain real and personal property and facilities in
common with others, and to conduct joint, partnership, cooperative or other
operations with others, and to exercise all powers granted herein in joint,
partnership or cooperative efforts and operations with others.
i. To condemn property for use as rights-of-way only if such property is not
owned by any public utility and devoted to public use pursuant to State
authority.
j. To adjudicate, operate and administer changes of water rights and plans for
augmentation, and to keep appropriate records in connection therewith.
The water rights held by or leased to the Authority shall be used in an
integrated fashion for the benefit of all Authority members and contractees,
such an integrated water system being one of the purposes for which the
Authority was formed.
k. To sue, and to be sued, in its own name.
l. To have and use a corporate seal.
m. To fix, maintain and revise fees, rates and charges for all water functions,
services or facilities provided by the Authority; such rates and charges to be
in such amount or amounts as necessary to provide for the acquisition or
development of raw water, the operation and maintenance of Authority
facilities, debt service and reserves, capital improvements and other
obligations and expenses of the Authority. All Water Service Customers
shall be charged at the same rate for treated water delivered to their water
meter, unless non-uniformity of rates is required by bond covenants, and in
such case, the non-uniformity of rates shall be subject to the approval of the
Authority’s Board of Directors. The requirement for uniform rates for the
Water Service Customers shall not prohibit the Authority from a rate
structure incorporating peak period pricing concepts or an increasing block
or tier rate based upon per capita consumption rates. The Authority shall
not utilize a declining block rate structure. The requirement for uniform
rates for the Water Service Customers shall not prohibit the Authority from
entering into water service agreements with third parties providing for
different fees, rates and charges in the discretion of the Board of Directors.
n. To adopt, by resolution, rules and regulations respecting the exercise of its
powers and carrying out of its purposes.
o. To receive contributions, gifts, bequests or other grants of cash, equipment
or services from the Contracting Parties or other entities, individuals, or
political subdivisions.
EXHIBIT A: AUTHORITY AGREEMENT
12
p. To do and perform any acts and things authorized by the Act under,
through, or by means of an agent or by contracts with any person, firm,
corporation or special district.
q. Subject to approval of the governing bodies of the Contracting Parties as
hereinafter provided, to permit other municipalities, special districts, or
political subdivisions of this State that are authorized to supply water to
enter the Authority Agreement as an additional Contracting Party at the
discretion of the Board of Directors, subject to fulfilling any and all
conditions or requirements of the Authority Agreement or requirements
established by the Board of Directors; except that rates need not be uniform
between the Authority and an additional Contracting Party.
r. To provide for, if required, the rehabilitation of any surfaces adversely
affected by the Authority’s construction of water pipelines, facilities or
systems through the rehabilitation of plant cover, soil stability, pavement,
and other measures appropriate to the subsequent beneficial use of such
lands.
s. In general, to exercise all powers which are now, or hereinafter may be,
conferred by law upon a water authority organized pursuant to the Act, or
its contracting parties, or necessary, incidental, convenient or conducive to
the attainment of its purposes and provision of its functions, services and
facilities, subject to such limitations as are, or may be, prescribed by law or
this Authority Agreement.
8. Board of Directors. The governing body of the Authority shall be the Board of
Directors in which all legislative power of the Authority is vested.
a. Number: The number of Directors shall be equal to the number of
Contracting Parties (currently six). Each Contracting Party shall be entitled
to fill one Director’s position which shall be by appointment made by the
governing body of that Contracting Party. Each Director shall be entitled to
cast one (1) vote. The Director representing a Contracting Party in default
under the Authority Agreement shall lose voting rights until the default is
cured.
b. Appointment: The governing body of each Contracting Party shall appoint
one (1) principal member of the Board of Directors, and one or more
alternate members who, in the discretion of the Contracting Party, may or
may not be an elected official of that Contracting Party. Such alternate
member shall act and vote only in the absence of the principal member
appointed by the same body.
EXHIBIT A: AUTHORITY AGREEMENT
13
c. Term: Each Director shall serve at the pleasure of the governing body of
the Contracting Party by whom he or she was appointed until replaced at
the pleasure of that governing body.
d. Vacancies: A vacancy occurring in the Board of Directors, whether such
vacancy be the result of loss of eligibility, resignation, death, removal or
disability, shall be filled in the same manner of appointment or selection as
provided above.
e. Compensation: Directors may receive compensation for their services
within statutory limits, if any, as may be provided by resolution of the
Board of Directors, and the Board of Directors, by resolution, shall provide
for reimbursement to the Directors of their actual expenses incurred on
behalf of the Authority.
f. Regular Meetings: The Board of Directors, from time to time, may provide
by resolution for the time and place of holding regular meetings without
notice to the Directors, other than such resolution.
g. Special Meetings: Special meetings of the Board of Directors may be held
as often as the needs of the Authority require, upon notice to each Director
as hereinafter provided.
h. Notice of Meetings: Notice of the time and place designated for all regular
meetings shall be posted in at least three public places within the Service
Area of the Authority, and, in addition, one such notice shall be posted in
the office of the Eagle County Clerk and Recorder. Such notices shall
remain posted and shall be changed in the event that the time or place of
such regular meetings is changed. Special meetings may be called by any
director by informing the other directors of the date, time, and place of such
special meeting, and the purpose for which it is called, and by posting
notice as provided by law at least seventy-two hours prior to said meeting.
Notice of any regular or special meeting may also be posted on the
Authority’s website. All official business of the Board of Directors shall be
conducted only during said regular or special meetings at which a quorum
is present, and all said meetings shall be open to the public.
i. Waiver: Whenever any notice is required to be given to any Director of the
Authority under the provisions of law or this Authority Agreement, a
waiver thereof in writing signed by such Director, whether before or after
the time stated therein, shall be equivalent to the giving of such notice.
Attendance of a Director at any meeting of the Board of Directors shall
constitute a waiver by such Director of notice of such meeting, except when
such Director attends such meeting for the express purpose of objecting to
EXHIBIT A: AUTHORITY AGREEMENT
14
the transaction of any business because the meeting is not lawfully
convened.
j. Quorum: A majority of the Directors then in office shall constitute a
quorum for the transaction of business; provided that, if less than a quorum
is present, the Directors present may adjourn the meeting from time to time,
provided, further, that the Secretary shall notify any absent Directors of the
time and place of such adjourned meeting. Unless otherwise provided
herein, the act of a majority of the Directors present at a meeting at which a
quorum is present shall be an act of the Board of Directors.
k. Duties of the Board: The duties of the Board of Directors shall be:
(1) To govern the business and affairs of the Authority.
(2) To exercise all powers of the Authority.
(3) To comply with the provisions of Part 1 (Local Government Budget
Law of Colorado), Part 5 (Local Government Uniform Accounting
Law) and Part 6 (Local Government Audit Law) of Article 1, Title
29 of C.R.S., as amended.
(4) To adopt a budget which complies with statutory and other
restrictions imposed by law on the affairs of the Authority.
(5) To monitor, accept, authorize and/or approve the financial
transactions of the Authority.
(6) To provide for the services of a firm of independent certified public
accountants to audit and examine, at least annually, the financial
records and accounts of the Authority, and to report thereupon to the
Board of Directors.
(7) To keep records of the Authority’s proceedings.
(8) To adopt such by-laws as appropriate for the conduct of its business
not in conflict herewith.
9. Officers. The Officers of the Authority shall be a Chairman, Vice-Chairman,
Secretary, Treasurer, and such other officers and assistant officers as may be
authorized by the Board of Directors from time to time, to perform such duties as
may be approved by the Board of Directors. The Chairman, Vice-Chairman and
Treasurer shall be principal members of the Board of Directors, but the other
Officers of the Authority need not be members of the Board.
EXHIBIT A: AUTHORITY AGREEMENT
15
a. Regular Elections and Term of Office: At the first regularly scheduled
meeting after regular special district elections, the members of the Board of
Directors shall elect Officers who shall serve as Officers of the Authority
until the next succeeding election of Officers or until their successors are
elected and qualified. Vacancies or new offices may be filled at any
meeting of the Board of Directors.
b. Removal: Any officer or agent elected or appointed by the Board of
Directors may be removed by the Board of Directors, with or without
cause, whenever in its judgment the best interests of the Authority will be
served thereby.
c. Duties of Officers: In addition to duties designated by the Board of
Directors, the duties of the officers shall include the following:
(1) Chairman. The Chairman shall preside at all meetings of the Board
of Directors and, except as otherwise delegated by the Board of
Directors, shall execute all legal instruments of the Authority.
(2) Vice-Chairman. The Vice-Chairman shall, in the absence of the
Chairman, or in the event of his inability or refusal to act, perform
the duties of the Chairman, and when so acting, shall have all the
powers of, and be subject to all restrictions upon, the Chairman.
(3) Secretary. The Secretary shall maintain the official records of the
Authority, including this Authority Agreement, by-laws, rules and
regulations established by the Board of Directors, minutes of the
meetings of the Board of Directors, and a register of the names and
addresses of the Directors and Officers, and shall issue notice of
meetings and attest and affix the corporate seal to all documents of
the Authority.
(4) Treasurer. The Treasurer shall serve as financial official of the
Authority, and pursuant to the budget adopted by the Board of
Directors governing the financial transactions of the Authority and
the restrictions imposed by law, be responsible for the receipt,
custody, investment and disbursement of the Authority’s funds and
securities, and for duties incident to the office of Treasurer.
(5) General Manager; Legal Counsel, Auditor and Special Consultants.
The Board of Directors may appoint a General Manager or contract
with an administrator to serve in such capacity for such term and
upon such conditions, including compensation, as the Board may
establish, or the Board of Directors may enter into an Operations
EXHIBIT A: AUTHORITY AGREEMENT
16
Agreement for management services as authorized by Section 28 of
this Authority Agreement. The General Manager or administrator
shall report directly to the Board of Directors of the Authority. Such
General Manager or administrator shall have general supervision
over the administration of the affairs, employees and business of the
Authority and shall be charged with the hiring and discharging of
employees and the management of the Authority properties. Such
General Manager or administrator shall have the care and custody of
the general funds of the Authority and shall deposit or cause to be
deposited the same in the name of Authority in such banks or
savings associations as the Board of Directors may select. Such
General Manager or administrator will approve all vouchers, orders
and checks for payment, and shall keep or cause to be kept regular
books of account of all Authority transactions and shall obtain, at the
Authority’s expense, such bond for the faithful performance of his or
her duties as the Board of Directors may designate. The Board of
Directors may delegate such powers and duties to the General
Manager or administrator as it deems appropriate, and authorize its
General Manager to execute any contracts approved by the Board of
Directors in each Contract Log, or otherwise in a formal meeting.
The Board of Directors may also engage the services of General
Counsel, Water Counsel, Special Counsel, the Auditor, and any
special consultants as necessary to the management and operations
of the Authority.
(6) Assistant Secretaries and Assistant Treasurers. The Board may
appoint such assistants as it deems necessary and appropriate.
(7) Miscellaneous. The duties and functions of the Secretary and the
Treasurer may be performed by a single individual who shall be a
principal member of the Board. If the individual performing the
duties of Secretary is not a member of the Board of Directors, such
individual may receive such compensation as is deemed appropriate
by the Board of Directors.
d. Bonds of Officers. The Treasurer and any other Officer or agent of the
Authority charged with the responsibility for the custody of any of its funds
or property shall give bond in such sum and with such surety as the Board
of Directors shall determine. The Board of Directors, in its discretion, may
also require any other Officer, agent or employee of the Authority to give
bond in such amount and with such surety as shall be determined. The cost
of such bond shall be an expense payable by the Authority.
EXHIBIT A: AUTHORITY AGREEMENT
17
10. Indemnification of Directors, Officers and Employees.
a. Directors, Officers and Employees: Each Director, Officer or Employee of
the Authority, whether or not then in office, and his or her personal
representatives, shall be indemnified by the Authority to the extent
permitted by law against all costs and expenses actually and necessarily
incurred by him or her in connection with the defense of any action, suit or
proceeding in which he or she may be involved or to which he or she may
be made a party by reason of his or her being, or having been, such
Director, Officer or Employee, except in relation to matters as to which he
or she shall be finally adjudged in such action, suit or proceeding to be
liable for willful negligence or misconduct in the performance of his or her
duties. The Authority shall pay the costs and expenses actually and
reasonably incurred by a Director, Officer or Employee in connection with
the defense of any allegation, action and proceeding arising out of an act or
omission of such person during the performance of such person’s duties
within the scope of such person’s service or appointment, including
reasonable attorneys’ fees, where the action lies or could lie in tort,
including any such action brought pursuant to Federal law in any court of
this State, in accordance with the Colorado Governmental Immunity Act.
As a prerequisite to such payment, the Director, Officer or Employee must
furnish the District with an affidavit stating that the action against him or
her is not purely personal; that, to his or her reasonable belief, the act or
omission upon which the claim is based reasonably relates to the business
affairs of the Authority; and that the Director, Officer or Employee acted in
good faith and in a manner which a reasonable person would have acted
under the circumstances and which was not opposed to the best interests of
the Authority. However, the Authority shall not pay such judgment or
settlement and shall seek reimbursement from the Director, Officer or
Employee for the actual costs of his or her defense, including actual
attorneys’ fees, where it is determined by a court of competent jurisdiction
(a) that the injuries did not arise out of an act or omission of the Director,
Officer or Employee occurring during his or her term of appointment or
employment with the Authority and within his or her scope of duties or
employment, or (b) that, unless otherwise expressly authorized by the
Board of Directors of the Authority, the Director’s, Officer’s or Employee’s
act or omission was willful and wanton. Such costs and expenses shall
include amounts reasonably paid in settlement for the purpose of curtailing
the cost of litigation in the reasonable discretion of the Board. The
foregoing right of indemnification shall not be exclusive of other rights to
which the Director, Officer or Employee may be entitled as a matter of law
or by agreement.
EXHIBIT A: AUTHORITY AGREEMENT
18
b. Payment: All claims to be paid as a result of the indemnification provided
hereunder shall be paid by the Authority or its insurer up to, but not to
exceed the applicable limitations under the Colorado Governmental
Immunity Act. The Authority specifically reserves any defenses which are
available to any Director, Officer or Employee under the Colorado
Governmental Immunity Act or by common law. The Authority may pay
judgments and settlements in accordance with the Colorado Governmental
Immunity Act even if sovereign immunity bars the action against the
Authority.
11. Prior Conveyances of Water Systems. The Contracting Parties and other parties
served by contract have previously conveyed to the Authority their individual
water systems, except for certain golf course water systems, raw water storage and
raw water irrigation systems, subject to existing agreements between the Authority
and any Contracting Party. The customers of the Contracting Parties thereby
became Water Service Customers of the Authority. The Authority shall make
Rules and Regulations concerning the operation of the Authority’s Water System,
except as to the amount of the Water Tap Fees and Surcharges. These Water
Systems were accepted by the Authority in “as is” condition and (subject to any
contract obligations) all future maintenance, repair and upgrade expenses became
the obligations of the Authority, and not the obligations of the Contracting Parties
or the third party served by contract. The conveyance of water systems effected
by the MSC is hereby ratified and confirmed.
12. Water Rights. The Contracting Parties have leased and/or conveyed to the
Authority all of the Contracting Parties’ right, title and interests in and to the
Contracting Parties’ water rights and may lease, convey or assign additional water
rights in the future (“Water Rights”), including the right to use all diversion
ditches, pipelines, headgates and structures, reservoirs or other storage structures,
pumps, casings, and other improvements and easements associated or used in
connection with the Water Rights (the “Associated Improvements”), for the
Authority’s use in carrying out its functions and providing Water Service in
accordance with the terms hereof. The provisions of such leases, as they have
been and may be amended from time to time, or any conveyances or assignments
are not intended to be modified by this Authority Agreement. The Authority shall
maintain the Associated Improvements. The Contracting Parties shall have the
right to continue to own their individual water rights and Associated
Improvements, or to convey them to the Authority. The Authority shall be solely
responsible for future adjudication and diligence proceedings for the Water Rights,
provided that the respective Contracting Party shall have the right, but not the
obligation, to participate in any proceeding in which its leased Water Rights are
involved as a co-applicant for the purpose of monitoring such proceedings and to
protect the respective Contracting Party’s leased Water Rights. In the event a
EXHIBIT A: AUTHORITY AGREEMENT
19
Contracting Party elects to participate as a co-applicant in any proceeding in which
its leased Water Rights are involved, the Authority agrees that the filing, any
pleadings, and any stipulation shall be subject to consent of the co-applicant
Contracting Party, which consent shall not be unreasonably withheld. The election
by a Contracting Party not to participate as a co-applicant in any adjudication,
change or diligence proceeding involving leased Water Rights after receiving
notice of such application or proceeding shall be deemed to constitute affirmative
consent to the Authority’s adjudication of any changes to the Water Rights that are
deemed appropriate by the Authority including, but not limited to, the type of use,
place of use, points of diversion, and quantification of historic use. The Authority
also agrees to administer each Contracting Party’s leased augmentation plans or
water transfer decrees according to the terms of the decrees, and use its best efforts
to protect those leased Water Rights from injury, including the filing of statements
of opposition in Water Courts as deemed appropriate by the Authority.
13. Assets Held in Trust. All assets and properties of the Authority shall be held in
trust by the Authority for the Contracting Parties for the purposes herein
mentioned, including the payment of liabilities of the Authority.
14. Financial Obligations of the Authority. The bonds, notes, and other obligations
issued by the Authority shall not be the debts, liabilities, or obligations of the
Contracting Parties because the Contracting Parties have provided for payment to
the Authority of funds from proprietary revenues for water services rendered by
the Authority; from proprietary revenues or other public funds as contributions to
defray the costs of any its purposes; and from proprietary revenues or other public
funds as advances for any purpose subject to repayment by the Authority. The
Authority is authorized to issue bonds, notes, or other obligations payable solely
from the revenues derived from the function, service, system or facility or the
combined functions, services, systems, or facilities of the Authority or from any
other available funds of the Authority.
The terms, conditions and details of any bonds, notes, and other obligations of the
Authority, the procedures related thereto, and the refunding thereof shall be set
forth in the resolution authorizing said bonds, notes, or other obligations and, as
nearly as may be practicable, shall be substantially the same as those provided in
part 4 of article 35 of title 31, C.R.S., relating to water and sewer revenue bonds;
except that the purposes for which the same may be issued shall not be so limited
and except that said bonds, notes, and other obligations may be sold at public or
private sale. Bonds, notes, or other obligations so issued by the Authority shall
not constitute an indebtedness of any Contracting Party within the meaning of any
constitutional or statutory limitations or other provision. Each bond, note, or other
obligation so issued by the Authority shall recite in substance that said bond, note,
or other obligation, including the interest thereon, is payable solely from the
EXHIBIT A: AUTHORITY AGREEMENT
20
revenues and other available funds of the Authority pledged for the payment
thereof and that said bond, note, or other obligation does not constitute a debt of
the Authority or the Contracting Parties within the meaning of any constitutional
or statutory limitation or provision. Notwithstanding any statutory provision to the
contrary, such bond, notes, and other obligations of the Authority may be issued to
mature at such times not beyond forty years from their respective issue dates, shall
bear interest at such rates, and shall be sold at, above, or below the principal
amount thereof, all as shall be determined by the Board of Directors of the
Authority.
The resolution, trust indenture, or other security agreement under which any
bonds, notes, or obligations of the Authority are issued shall constitute a contract
with the holders thereof, and it may contain such provisions as shall be determined
by the Board of Directors of the Authority to be appropriate and necessary in
connection with the issuance thereof and to provide security for the payment
thereof, including, without limitation, any mortgage or other security interest in
any revenues, funds, rights, or properties of the Authority. To the extent permitted
by law, the bonds, notes, and other obligations of the Authority and the income
therefrom shall be exempt from taxation by the State of Colorado, except
inheritance, estate, and transfer taxes.
15. Consolidation of Two or More Contracting Parties. If any two (2) or more of
the Contracting Parties consolidate either their water service function or all of their
respective functions, then, in that event, the entity in existence, after court
approval of such consolidation, shall be the successor in interest to all those
Contracting Parties which have been so consolidated. Upon issuance of a court
order establishing a consolidated entity, those Contracting Parties consolidating
shall no longer be entitled to separate representation on the Authority’s Board of
Directors. Instead, the consolidated entity shall be entitled to one (1) principal
member on the Board of Directors whose selection and term shall be as provided
herein. As successor in interest, the consolidated entity shall have all rights,
powers, duties, and obligations hereunder as the original Contracting Parties.
16. Dissolution of the Authority. Dissolution (including any sale of Authority
Assets) shall require the unanimous consent of the Contracting Parties and
provision for a successor entity or entities that will continue to provide service to
the Water Service Customers. If the Authority then has financial obligations or
outstanding bonds, any provision for dissolution shall specifically provide either
that all such financial obligations shall be paid in full by the Authority or that
funds or securities meeting the investment requirements established in part 6 of
article 75 of title 24, C.R.S., shall be placed in escrow, prior to dissolution, in a
state or national bank within this state having trust powers and which is a member
of the federal deposit insurance corporation and stating that such funds or
EXHIBIT A: AUTHORITY AGREEMENT
21
securities will be sufficient for the payment of the financial obligations and
outstanding bonds of the Authority and all expenses related thereto, including
charges of any escrow agent.
Upon dissolution without conveyance of all Water Rights (as defined herein) and
assets to a successor entity, the interests in Unallocated Water Rights (as defined
herein) and net assets of the Authority shall be distributed to each Contracting
Party in proportion to the average annual amount of treated water sold within the
boundaries of each Contracting Party to the total annual amount of treated water
sold to all Contracting Parties.
17. Adding or Deleting Parties. No party may be added to this Authority Agreement
as a Contracting Party without the unanimous consent of all Contracting Parties
authorized by a written document formally approved by the governing body of
each Contracting Party. A party added as a Contracting Party shall be subject to
such terms and conditions as the Board of Directors, in its sole discretion, may
determine; provided, however, that a new Contracting Party shall be assessed a
capital investment fee to cover its pro rata share of the costs of those capital assets
previously purchased or constructed by the Authority for joint use by all
Contracting Parties.
A Contracting Party may withdraw from this Authority Agreement by written
document authorized by the governing body of such Contracting Party, which
shall be presented to the Authority not earlier than June 1st or later than July 15th of
any calendar year; provided, however, such withdrawing Contracting Party shall
remain liable for any and all financial obligations and all indebtedness incurred
pursuant to any contract between the Authority and the Contracting Party pursuant
to which the Authority provides service to the Contracting Party and shall remain
liable for its proportionate share of outstanding Obligations on the date of
withdrawal, as defined in Section 16.
If a withdrawing Contracting Party wishes to no longer receive water service from
the Authority and to reacquire the components of its individual Water System not
used to provide water service to Customers of the Authority residing outside the
jurisdictional boundaries of the withdrawing Contracting Party, the Authority and
the withdrawing Contracting Party shall agree on terms regarding the re-
conveyance of such components to the withdrawing Contracting Party and the
ownership, use and maintenance of any components of the withdrawing
Contracting Party's individual Water System used to provide water service to
Customers of the Authority residing outside the jurisdictional boundaries of the
withdrawing Contracting Party.
Upon withdrawal, a withdrawing Contracting Party shall have no further interest,
right or title in or to any assets or equity of the Authority, and shall forfeit its
EXHIBIT A: AUTHORITY AGREEMENT
22
status as a “Contracting Party” with regard to its Board of Directors position and
voting rights inherent therein, unless there is a specific agreement to the contrary;
provided, however, that the following shall immediately vest in such withdrawing
Contracting Party:
a. Any water rights conveyed, assigned, leased or otherwise contributed to the
Authority by such withdrawing Contracting Party or by the withdrawing
Contracting Party’s predecessor for the purpose of providing water service
to that Contracting Party’s water service area, which shall vest in the
withdrawing Contracting Party by the Authority reconveying or reassigning
such water rights to the withdrawing Contracting Party or terminating the
lease to such water rights.
b. Any direct flow or storage water rights that are owned by the Authority and
originally conveyed, assigned or otherwise contributed or paid for by a
third party or otherwise allocated by the Authority to any withdrawing
Contracting Party in return for a commitment to provide water service to a
given parcel or parcels of property located within the boundaries of the
withdrawing Contracting Party shall immediately vest in the withdrawing
Contracting Party. Such vesting shall occur by the Authority reconveying
or reassigning such water rights to the withdrawing Contracting Party.
c. The amount of Eagle Park Reservoir water owned by the Authority and
allocated to any withdrawing Contracting Party in the Eagle Park Reservoir
Agreement dated October 23, 1996, among the Authority and the
Contracting Parties shall immediately vest in any withdrawing Contracting
Party. Such vesting shall occur by the Authority assigning the shares of
stock in the Eagle Park Reservoir Company for such amount of Eagle Park
Reservoir water to the withdrawing Contracting Party.
d. The amount of Green Mountain Reservoir water available to the Authority
under a valid contract with the Bureau of Reclamation and allocated to any
withdrawing Contracting Party, if any, in the decree of the District Court in
and for Water Division No. 5 in Case No. 92CW291 shall be assigned by
the Authority to the withdrawing Contracting Party. The Authority shall
request such assignment and implement the effect of such assignment as
soon as possible after the date of withdrawal.
The foregoing are hereinafter the “Allocated Water Rights.”
18. Water Rights Report. The foregoing categories of water rights shall be
identified in the water rights report entitled the “Analysis of Water Rights, Future
Water Use, and Related Water Rights Issues” prepared for each Contracting Party
and updated immediately and thereafter every two years by the Authority’s water
EXHIBIT A: AUTHORITY AGREEMENT
23
counsel and water resource engineer (the “Water Rights Reports”). The Water
Rights Reports shall also identify any other direct flow water rights that are owned
by the Authority and not originally conveyed by a Contracting Party, and any
other storage water rights that are owned or leased by the Authority and not
originally conveyed or assigned by a Contracting Party (the “Unallocated Water
Rights”). The Unallocated Water Rights shall not be conveyed or assigned to a
withdrawing Contracting Party and shall be retained by the Authority for its use
and for the benefit of the remaining Contracting Parties. If the Contracting Party’s
Allocated Water Rights significantly change in type or quantity during the interim
between such updates, the Authority will revise the list of water rights allocated to
that Party and provide a copy of such revised list to the Contracting Parties.
WATER SERVICE BY THE AUTHORITY
19. Water Service. The Authority agrees to sell and furnish to persons and entities
which are present and future customers of the Water System, all Water Service as
these Water Service Customers shall reasonably require, subject to any use
limitations then in effect and to the extent that the Authority shall have the
capacity to provide such Water Service. The Water Service Customers shall pay
the Authority the Base Charge, Debt Service Charge and Service Charges for all
Water Service provided by the Authority; provided, however, that the obligation to
pay for all such Water Service shall be and is an obligation of the Water Service
Customers during the term hereof and, except as provided in Paragraph 49, is not a
lien, charge or liability against the Contracting Parties or against any property or
funds of the Contracting Parties, and the obligations to pay the Authority for all
Water Service furnished hereunder does not constitute a debt, liability or
obligation of the Contracting Parties and the Contracting Parties are not required
to pay such obligation. The Water Service Customers shall make and pay for all
connections to the Authority’s Water System.
The Contracting Parties shall have the obligation continuously to provide rights to
raw water to the Authority, in amounts which are adequate to allow provision of
Water Service to present and future customers of the Authority who connect to
the portion of the Authority’s Water System within each Contracting Party’s
jurisdictional boundaries. It is mutually understood the Authority will acquire or
design and construct such Authority Assets and all necessary appurtenances
thereto, so as to enable it reasonably to provide all Water Service to its Water
Service Customers, present and future as part of an integrated water supply
system.
20. Covenants and Representations of the Authority and the Contracting Parties.
a. The Authority shall use reasonable diligence to provide Water Service
hereunder and shall maintain the Authority’s Water System in good
EXHIBIT A: AUTHORITY AGREEMENT
24
condition at all times. It is the intent of this Authority Agreement that the
Authority provide water to the present and future Water Service Customers
of the Authority and third parties which is treated to meet State and/or
Federal Safe Drinking Water Standards and in compliance with
environmental laws and regulations. If operation of the Water System shall
be interrupted, or become defective by reason of force majeure, the
Authority shall not be liable therefor or for damages caused thereby.
b. The Authority shall diligently enforce and take all reasonable steps, actions
and proceedings necessary for the enforcement of all terms, covenants and
provisions of this Authority Agreement.
c. The Authority covenants and agrees that it will operate, maintain and
manage the Authority’s Water System or cause the same to be operated,
maintained and managed in an efficient and economical manner, consistent
with sound municipal utility practice and in accordance with standards
normally used by municipal utilities owning like properties to provide
efficient, effective, and reliable water service.
d. The Contracting Parties covenant to provide to the Authority adequate
rights to raw water from their Water Rights or any other source, to allow
continuous provisions of adequate Water Service to the present and future
Water Service Customers of the Authority, and to meet Authority’s
obligations under this Authority Agreement. The Contracting Parties
represent that their Water Rights and related interests are free and clear of
all liens and encumbrances and, subject to physical availability of water,
are sufficient to provide for all water needs of the Contracting Parties
within their present boundaries, but recognize the Authority may use their
water rights throughout the Authority’s integrated water service system.
e. The provisions of this Authority Agreement are covenants of the
Contracting Parties and the Authority for the benefit and protection of the
Authority, the Contracting Parties and the owners and holders of
Obligations, it being recognized that the owners and holders of such
Obligations shall be third-party beneficiaries of such covenants, and it is
understood by the Contracting Parties that the initial purchaser of any issue
of Obligations has and will agree to the purchase of Obligations
conditioned upon these covenants.
f. For and in consideration of the payments to be made by the present and
future Water Service Customers of the Authority under this Authority
Agreement, the Authority agrees to use reasonable diligence to provide
Water Service to the present and future Water Service Customers of the
Authority under the terms of this Authority Agreement, and such payments
EXHIBIT A: AUTHORITY AGREEMENT
25
by the present and future Water Service Customers of the Authority shall be
in consideration for the Authority’s agreement to provide such Water
Service.
21. Rate Covenant. The Board of Directors of the Authority shall establish, maintain
and collect from present and future Water Service Customers of the Authority and
third parties, reasonable Plant Investment Fees, Water Storage Fees, Base Fees and
Service Charges for the Water Service provided which shall produce revenues at
least sufficient, together with other revenues legally available to the Authority, to
enable the Authority to provide Water Service to present and future Water Service
Customers of the Authority and third parties and to comply with any rate
maintenance covenants of Obligations.
22. Water Use Fees. Periodic fees and charges imposed by the Authority for the use
of water may include the following:
a. Base Charge. The Board of Directors of the Authority shall establish the
Base Charge to be paid monthly by every Water Service Customer and
which shall mean the amount charged each SFE irrespective of quantity of
water used. The Base Charge is subject to increases by the Board of
Directors of the Authority, provided that such increases do not exceed the
increase(s) in the Denver-Boulder-Greeley Consumer Price Index since
December 31 of the calendar year in which the Base Charge was previously
increased. If the proposed increase exceeds the increases in the Denver-
Boulder-Greeley Consumer Price Index since December 31 of the calendar
year in which the Base Charge was previously increased, such increase
must be approved by unanimous vote or consent of all of the Authority
Board Members to be effective.
b. Service Charge. The Service Charge of the Authority to its Water Service
Customers shall be:
(1) non-discriminatory;
(2) fair and reasonable; and
(3) adequate (after taking into consideration other moneys available or
anticipated to be received) in each Contract Year so that the Service
Charges in each Contract Year shall be at least equal to:
(i) Operation and Maintenance Expenses;
(ii) An amount equal to 110% of the debt service requirements
for such Contract Year on or with respect to the outstanding
EXHIBIT A: AUTHORITY AGREEMENT
26
Obligations payable from the revenue of the Authority unless
the debt service is otherwise provided for;
(iii) An amount equal to any payments required to be made to any
reserve fund, on or with respect to the outstanding
Obligations payable from the revenues of the Authority;
(iv) An amount equal to current costs of improvements to the
Authority’s Water System, excluding major capital additions,
made in the ordinary course of business; and
(v) Any amounts required to meet then existing deficiencies
pertaining to any fund or account relating to any outstanding
Obligations, including any deficiencies in any bond reserve
funds and any operations reserve funds.
(4) The Service Charge shall be determined by dividing the estimated
Annual Costs to treat and deliver water by the estimated annual
amount of water treated and delivered to all the Parties and third
parties served by the Authority. The resulting average water cost is
then used to establish the rates to be charged for each tier in the
Authority’s tiered rate structure where the rate charged for water use
increases as more water is used. The objective is to recover the
Annual Costs through the sale of water to all customers.
(5) If the Board of Directors of the Authority proposes to establish a
new Service Charge, other than in connection with an Annual
Budget, it shall give the Contracting Parties and third parties written
notice that it is establishing a new Service Charge for Water Service,
setting forth such Charge, on a date certain which shall not be less
than thirty (30) days from the mailing of the notice of each
Contracting Party and third party, all such notices to be mailed
simultaneously.
c. Debt Service Fees. Any new Debt Service Fee shall require unanimous
vote or consent of all Authority Board Members. Once established, the
Board of Directors of the Authority shall calculate the debt service billing
rate that when applied to the Customer account’s SFE factor, results in
collection of the charges due from the Customer to the Authority for its
proportionate share of the Authority’s Debt Service. Revenues collected by
the Authority from Debt Service Fees shall be used by the Authority
specifically to pay debt service on borrowed funds.
EXHIBIT A: AUTHORITY AGREEMENT
27
d. Differential Service Charge. The Board of Directors of the Authority may
establish and impose a Differential Service Charge on a customer or an area
served by the Authority to accommodate a differential cost of service or
capital facility needs of said area. Notice of such Differential Service
Charge shall be given in writing to the Contracting Party whose territory
includes the area in which the Differential Service Charge shall be
imposed; and no such Differential Service Charge shall be effective if the
affected Contracting Party objects within thirty (30) days of receipt of such
notice.
e. Surcharges. A charge may be unilaterally imposed by a Contracting Party
on a customer within that Contracting Party’s jurisdictional boundaries that
is to be collected by the Authority.
23. New Development / Facility Expansion Fees. Fees and charges imposed or
collected by the Authority may include the following:
a. Plant Investment Fee. The Board of Directors of the Authority by
unanimous vote or consent shall establish a Plant Investment Fee which
shall be the one time charge per SFE to each property served by the
Authority required to be paid to connect to the Authority’s Water System.
The Plant Investment Fee is imposed for recovery of capital investments
associated with capital components of the Water System, and shall be
calculated and accounted for as required by C.R.S. § 29-1-801, et seq.
related to development charges for capital expenditures. Specifically, the
Plant Investment Fee shall be based upon capital improvements
necessitated by the use to be connected to the Water System, or the change
in use of an existing service. Any proposal to increase the Plant Investment
Fee shall be introduced at least forty-five (45) days prior to the date of its
approval by the Board of Directors and written notice of such change shall
be given to all of the Authority Board Members at the time of introduction.
Adoption of the increased Plant Investment Fee shall require a unanimous
vote or consent of all the Authority Board Members.
b. Treated Water Storage Fees. The Contracting Parties have adopted a
system of assessing Treated Water Storage Fees. Such Fees shall be
assessed by and collected and retained by the Authority as provided by the
Rules and Regulations of the Authority.
c. Cash-in-Lieu of Water Rights Fee. A Cash-in-Lieu of Water Rights Fee
may be established by the Board of Directors as a payment of cash in lieu
of the dedication of water rights, in the discretion of the Authority’s Board
of Directors, sufficient to serve the proposed water demands and uses of an
applicant for water service from the Authority.
EXHIBIT A: AUTHORITY AGREEMENT
28
d. Water Tap Fee. A Water Tap Fee may be established unilaterally by a
Contracting Party as herein provided (see Definitions) for a specific period
of time and will be collected by and remitted to that Contracting Party by
the Authority to fund expenditures by such local government on water
capital facilities needed to serve new development within its jurisdictional
boundaries.
e. Line Extensions and System Additions. Extensions of existing lines and
construction of System additions may be approved by the Authority and the
cost of the extension or construction may be passed on to developers.
When constructed and accepted by the Authority, such line extensions and
system additions shall become part of the Authority’s Water System.
24. Easements. The Contracting Parties mutually agree that the Authority or its agent
shall have full access to or over any easement, right-of-way or property granted to
or held by the Contracting Parties for purposes of water mains and all
appurtenances thereto if, and to the extent, required by the Authority for any and
all purposes required for the Authority Assets.
25. Annual Budget. In compliance with the provisions of Part 1 (Local Government
Budget Law of Colorado), Part 5 (Local Government Uniform Accounting Law)
and Part 6 (Local Government Audit Law) of Article 1, Title 29 of C.R.S., as
amended,
a. The Authority shall prepare, or cause to be prepared, an Annual Budget
which shall itemize estimates of Annual Costs and all revenues, income or
other funds to be applied to such Annual Costs for and applicable to each
Contract Year. The Authority shall prepare such Annual Budget in a timely
fashion, which will allow the Contracting Parties and the Authority to
comply with applicable budget laws.
b. The Authority, prior to the beginning of each Contract Year, shall adopt the
Annual Budget for such Contract Year, and the Service Charges for such
Contract Year, and shall cause copies of such Annual Budget and the
schedule of Service Charges to be promptly delivered to the Contracting
Parties.
c. If at any time or from time to time after the adoption of the Annual Budget
in accordance with subparagraphs a. and b. of this paragraph, the Authority
estimates that the actual Annual Costs or revenues for the Contract year, or
any part thereof for which such Annual Budget applies, will be greater or
less than the Annual Costs or revenues set forth in the Annual Budget, then
the Authority may prepare an amended Annual Budget. The amended
EXHIBIT A: AUTHORITY AGREEMENT
29
Annual Budget shall be timely adopted by the Authority and promptly
transmitted to the Contracting Parties.
d. In the event the Annual Budget for the ensuing Contract Year has not been
adopted on or before the first day of any Contract Year, the total amount
budgeted for the preceding Contract Year shall be the total amount of the
temporary budget for such purposes for the ensuing Contract Year. Such
temporary budget shall be effective only until such time as a permanent
Annual Budget has been finally adopted and approved. The Board of the
Authority shall be responsible for the allocation for expenditure of the total
amount of the temporary budget until a permanent budget is adopted and
approved.
26. Billing. The Contracting Parties hereby delegate to the Authority all rights to
collect fees, charges, penalties and interest payable to the Authority. The
Authority shall directly read the meters and bill the present and future Water
Service Customers of the Authority and third parties for Service Charges,
Surcharges if applicable, and other charges monthly.
27. Records and Accounts. The Authority shall keep accurate records and accounts
of Authority Assets and of the transactions relating thereto, as well as of the
operations of the Authority, in accordance with generally accepted accounting
principles as applied to governmental units. Within one hundred twenty (120)
days after close of each Contract Year, the Authority shall cause such records and
accounts, and all transactions of the Authority with respect to such Contract Year
to be subject to an annual audit by an independent certified public accountant. A
copy of each such annual audit shall be sent by the Authority to the Contracting
Parties. The Authority shall comply with the provisions of Part 1 (Local
Government Budget Law of Colorado), Part 5 (Local Government Uniform
Accounting Law) and Part 6 (Local Government Audit Law) of Article 1, Title 29
of C.R.S., as amended.
OPERATIONS AND ADMINISTRATION
28. Operations Agreement. The Board of Directors of the Authority may enter into
an Operations Agreement with any third party water utility operator, including but
not limited to the Eagle River Water and Sanitation District, to provide
management, annual capital plan management, engineering, operations and
preventive, predictive and corrective maintenance, meter reading and billing,
accounting and financial requirements, laboratory activities, and quality assurance
necessary to manage and operate Authority's Facilities in compliance with this
Authority Agreement and legal and regulatory requirements and at levels which
EXHIBIT A: AUTHORITY AGREEMENT
30
meet or exceed those generally accepted standards customary to the industry. In
lieu of an Operations Agreement with a third party utility operator, the Board of
Directors of the Authority may determine to provide some or all of the foregoing
services by hiring and employing sufficient highly-trained, qualified and
experienced personnel, including management, engineering, maintenance,
financial, accounting, customer service and billing, technical, laboratory and
administrative staff who meet applicable State of Colorado certification and/or
licensing requirements, to manage, operate, maintain and otherwise administer the
Authority's Facilities. An Operations Agreement shall not be required and the
Board of Directors may choose to provide for operations and administration of the
Authority solely through Authority employees and consultants.
29. Execution of Contracts. Except as otherwise provided by law, the Board of
Directors may authorize any officer or officers, agent or agents, or the General
Manager to enter into any contract, or execute and deliver any instrument in the
name and on behalf of the Authority.
30. Negotiable Instruments. All checks, drafts or other orders for payment of money
and all notes, bonds, or other evidences of indebtedness issued in the name of the
Authority shall be signed by such officer or officers, agent or agents, employee or
employees of the Authority, and in such manner as, from time to time, shall be
determined by resolution of the Board of Directors.
31. Deposits. All funds of the Authority shall be deposited, from time to time, to the
credit of the Authority, pursuant to law, in such bank or banks as the Board of
Directors may select.
32. Fiscal Year. The fiscal year of the Authority shall be the calendar year.
33. Principal Place of Business. The principal place of business of the Authority
shall be 846 Forest Road, Vail, CO 81657, unless changed. Annually, on or
before the 1st day of February of each year, and within thirty (30) days following
any change, the Authority shall file with the Division of Local Government the
name of the agent for service of process on the Authority, and the address of the
principal place of business of the Authority.
34. Debt Not That of Contracting Parties. Pursuant to Section 29-1-204.2(5),
C.R.S., the bonds, notes and other obligations of the Authority shall not be the
debts, liabilities or obligations of the Contracting Parties or parties which may be
future Contracting Parties.
35. Notices. Any formal notice, demand or request provided for in this Authority
Agreement shall be in writing and shall be deemed properly served, given or made
if delivered in person or sent by registered or certified mail, postage prepaid
EXHIBIT A: AUTHORITY AGREEMENT
31
(provided that bills sent hereunder may be sent by first class mail) to the
Contracting Parties.
36. Default.
a. It is an event of default by a Contracting Party hereunder if:
(1) the Contracting Party defaults in the punctual performance or
observation of any covenants, agreements, or conditions on the part
of the Contracting Party in this Authority Agreement for a period of
thirty (30) days after the notifying Party or the Authority shall have
given the Contracting Party notice thereof in the manner provided in
paragraph 35;
(2) a voluntary or involuntary petition under federal or state bankruptcy
laws by or against a Contracting Party is filed or a receiver for any
of the Contracting Party’s assets is appointed; or
(3) a Contracting Party is dissolved and this Authority Agreement is not
assigned by the Party in accordance with paragraph 47.
b. It is an event of default by the Authority hereunder if the Authority fails or
defaults in the punctual performance or observation of the covenants,
agreements or conditions on the part of the Authority in this Authority
Agreement, except that the Authority will only be in default of its
covenants to use reasonable diligence to provide Water Services contained
in paragraph 20 if it has totally failed to provide any Water Services for a
period of two (2) days or more after the notifying Contracting Party shall
have given the Authority notice thereof in the manner provided in
paragraph 35.
37. Remedies Upon Default.
a. Upon the occurrence and continuance of an event of default by any party to
this Authority Agreement, the non-defaulting party or parties may take one
or more of the following remedial actions:
(1) utilize the defaulting party’s water rights to provide the Water
Service contemplated under this Authority Agreement.
(2) proceed against the defaulting party, its governing body, and its
agents, officers, and employees to protect the rights of the non-
defaulting party or parties hereunder by mandamus or other suit,
action or special proceedings in equity or at law, in any court of
competent jurisdiction, either for appointment of a receiver (the
EXHIBIT A: AUTHORITY AGREEMENT
32
consent to such appointment being expressly hereby granted by the
defaulting party) or for the specific performance of any covenant or
agreement contained herein or an award of execution of any power
herein granted for the enforcement of any proper legal or equitable
remedy as the non-defaulting party or parties may deem most
effectual to protect and enforce the rights aforesaid, or thereby to
enjoin any act or thing which may be unlawful or in violation of any
right of the non-defaulting party or parties, or to require the
governing body of the defaulting party to act as if it were the trustee
of an express trust, or any combination of such remedies.
b. Upon the occurrence and continuance of an event of default by a party, the
non-defaulting party or parties or any receiver appointed in any proceedings
to protect the rights of the non-defaulting party or parties hereunder may
prescribe fees, rates and other charges and may collect, receive and apply
all amounts arising thereafter in the same manner as the defaulting party
itself might do.
c. Upon the occurrence and continuance of an event of default by a party to
this Authority Agreement, the non-defaulting party or parties shall have all
of the rights and remedies provided at law and in equity, except that in no
event shall the defaulting party or parties be relieved of their obligations
hereunder.
d. The failure of a party to this Authority Agreement to proceed in any
manner herein provided shall not relieve any other party or any of its
officers, agents or employees of any liability for failure to perform or carry
out any duty, obligation or other commitment. Each right or privilege of
each party is in addition and is cumulative to any other right or privilege,
and the exercise of any right or privilege by or on behalf of such party.
38. Existing Debt of Contracting Parties. Any debt of any Contracting Party for
construction of the Water System of the Contracting Party shall remain and be the
obligation of that Contracting Party and not of the Authority.
39. Force majeure.
a. If for any reason of force majeure any of the Contracting Parties hereto or
the Authority shall be rendered unable, wholly or in part, to carry out its
obligations under this Authority Agreement and, subject to physical
availability of water, to provide rights to raw water to the Authority as
herein provided, then if such party shall give notice, and the full particulars
of such reasons in writing to the Contracting Parties and the Authority
within a reasonable time after the occurrence of the event or cause relied
EXHIBIT A: AUTHORITY AGREEMENT
33
on, the obligations of the party giving such notice, so far as it is affected by
such force majeure, shall be suspended during the continuance of the
inability then claimed, but for no longer period, and such party shall
endeavor to remove or overcome such inability with all reasonable
dispatch. The term force majeure, as employed herein, shall mean acts of
God; strikes; lockouts, or other industrial disturbances; acts of the public
enemy; orders or actions of any kind of the government of the United States
or of the State of Colorado or any civil or military authority; insurrections;
riots; epidemics; landslides; lightning; earthquakes; fires; hurricanes;
storms; floods; washouts; droughts; arrests; restraints of government and
people; civil disturbances; explosions; breakage or accident to dams,
machinery, pipelines, or canals or other structures or machinery; on account
of any other cause not reasonably within the control of the party claiming
such inability. It is understood and agreed that the settlement of strikes and
lockouts shall be entirely within the discretion of the party having the
difficulties, and that the above requirement that any force majeure shall be
remedied with all reasonable dispatch shall not require the settlement of
strikes and lockouts by acceding to the demand of the opposing parties
when such settlement is unfavorable in the judgment of the party having the
difficulty.
b. No damage shall be recoverable from the Authority or any Contracting
Party by reason of the causes above mentioned.
40. Insurance.
a. The Authority shall maintain, or cause to be maintained in force for the
benefit of the Authority, such insurance as shall be reasonably available and
as is usually carried by municipal water utilities constructing and operating
water treatment, storage and transmission facilities. In addition, the
Authority shall maintain general liability insurance coverage in an amount
not less than $350,000 per person/$990,000 per occurrence, and $1,000,000
aggregate, or any such higher amounts as may be called for under the
Colorado Governmental Immunities Act, Section 24-10-101, et seq.,
C.R.S.; provided, however, in any event, the Authority shall maintain, or
cause to be maintained, in force, insurance in such amounts and against
such risks as required by any bond resolution.
b. The Authority will secure and maintain fidelity insurance or bonds in the
amount of at least Twenty-Five Thousand Dollars ($25,000.00) on the
treasurer and any officer or agent of the Authority charged with the
responsibility for the custody of any of its funds or property. The Board of
Directors, in its discretion, may also require any other officer, agent, or
employee of the Authority to give bond in such amount and with such
EXHIBIT A: AUTHORITY AGREEMENT
34
surety as shall be determined. Costs of such bond shall be an expense
payable by the Authority.
c. The Authority may establish and create a special fund for the purpose of
providing a self-insurance fund. Amounts to be deposited in, or credited to,
such fund in any Contract Year shall be accounted for as Operation and
Maintenance Expenses. To the extent that moneys are deposited in such
fund, if created, such moneys shall be invested in Investment Securities, as
defined in any bond resolution. To the extent of the amounts held in such
fund, the face amount of appropriate insurance policies may be reduced.
41. Reports. The Authority shall prepare and issue to the Contracting Parties the
following reports for each Contract Year:
a. financial and operating statements relating to Authority Assets;
b. status of construction of Authority Assets during construction; and
c. analysis of operations relating to the Authority.
42. Access. The Contracting Parties shall at all times have reasonable access to
examine any and all books and records of the Authority and to inspect the
Authority’s Water System. The Authority and the Contracting Parties each give
the other the right to enter the premises of the other at all reasonable times for the
purpose of repairing or removing facilities and performing work incidental to
delivery and receipt of Water Service furnished hereunder.
43. Governmental Rates, Regulations and Laws. This Authority Agreement shall
be subject to all valid rules, regulations and laws applicable thereto, as
promulgated by the United States of America, the State of Colorado, or any other
governmental body or agency having lawful jurisdiction or any authorized
representative or agency of any of them, which rules, regulations and laws shall
not impair the obligation of contracts, including this Authority Agreement.
44. Merger. This Authority Agreement constitutes the entire agreement among the
parties, except as to water rights leases, and all prior and contemporaneous
conversations, negotiations, possible alleged agreements, representations,
covenants, and warranties concerning the subject matter hereof are merged herein,
except as provided in paragraph 49.
45. Severability. The parties hereto agree that if any provision, or part of a provision,
of this Authority Agreement should contravene or be held invalid under the laws
of the State of Colorado by any court having competent jurisdiction, such
contravention or invalidity shall not invalidate the whole Authority Agreement,
but it shall be construed as though not containing that particular provision, or part
EXHIBIT A: AUTHORITY AGREEMENT
35
thereof, and the rights and obligations of the parties shall be construed and in force
accordingly.
46. Amendments. This Authority Agreement may be amended only by written
document approved by formal authority of the governing bodies of all of the
Contracting Parties; provided, however, that such amendment will not affect other
Obligations outstanding of the Authority unless provision for full payment of such
Obligations, by escrow or otherwise, has been made pursuant to such Obligations.
47. Assignment; Successors and Assigns. This Authority Agreement shall not be
assignable by a Contracting Party unless the Authority consents in writing to such
assignment, provided that such assignment does not materially and adversely
affect the rights or security of owners of the Authority’s Obligations, and shall not
be assignable by the Authority without the written consents of all the Contracting
Parties. This Authority Agreement shall be binding upon and inure to the benefit
of and be enforceable by the successors, assigns and legal representatives of the
parties hereto.
48. Original Counterparts. This Authority Agreement may be executed in
counterparts, each of which will be an original, but all of which together shall
constitute one and the same instrument.
49. Savings Provision. In the event that,
a. any provision of this Authority Agreement shall violate any covenant in or
constitute a default under any document authorizing Obligations of the
Authority or the Contracting Parties’ existing bond resolutions;
b. this Authority Agreement, in whole or in part, is held to be unenforceable,
as to that provision deemed unenforceable; or
c. a Contracting Party withdraws from the Authority and any outstanding
Obligations are not addressed herein,
then the provisions of the EA and MSC shall apply to the extent necessary to
avoid violation of any such covenant, default of an Obligation, or to establish the
relationship, rights and obligations of the withdrawing Contracting Party and the
Authority.
IN WITNESS WHEREOF, the Contracting Parties have caused this Authority
Agreement to be executed effective the date first above written.
[EXECUTION PAGES FOLLOW]
EXHIBIT A: AUTHORITY AGREEMENT
36
EXHIBIT A: AUTHORITY AGREEMENT
37
ARROWHEAD METROPOLITAN DISTRICT
By:
_______________, President
Attest:
_____________, Secretary
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
The foregoing Authority Agreement was acknowledged before me this _____ day
of _____________, 2014 by _______________________________ as President and
_________________________ as Secretary of the ARROWHEAD METROPOLITAN
DISTRICT.
Witness my hand and official seal.
My commission expires:
Notary Public
EXHIBIT A: AUTHORITY AGREEMENT
38
TOWN OF AVON, COLORADO, successor to
the Avon Metropolitan District
By:
_______________, Mayor
Attest:
_____________, Town Clerk
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
The foregoing Authority Agreement was acknowledged before me this _____ day
of _____________, 2014 by _______________________________ as Mayor and
_________________________ as Town Clerk of the TOWN OF AVON, COLORADO.
Witness my hand and official seal.
My commission expires:
Notary Public
EXHIBIT A: AUTHORITY AGREEMENT
39
BEAVER CREEK METROPOLITAN
DISTRICT
By:
_______________, President
Attest:
_____________, Secretary
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
The foregoing Authority Agreement was acknowledged before me this _____ day
of _____________, 2014 by _______________________________ as President and
_________________________ as Secretary of the BEAVER CREEK METROPOLITAN
DISTRICT.
Witness my hand and official seal.
My commission expires:
Notary Public
EXHIBIT A: AUTHORITY AGREEMENT
40
BERRY CREEK METROPOLITAN
DISTRICT
By:
_______________, President
Attest:
_____________, Secretary
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
The foregoing Authority Agreement was acknowledged before me this _____ day
of _____________, 2014 by _______________________________ as President and
_________________________ as Secretary of the BERRY CREEK METROPOLITAN
DISTRICT.
Witness my hand and official seal.
My commission expires:
Notary Public
EXHIBIT A: AUTHORITY AGREEMENT
41
EAGLE-VAIL METROPOLITAN DISTRICT
By:
_______________, President
Attest:
_____________, Secretary
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
The foregoing Authority Agreement was acknowledged before me this _____ day
of _____________, 2014 by _______________________________ as President and
_________________________ as Secretary of the EAGLE-VAIL METROPOLITAN
DISTRICT.
Witness my hand and official seal.
My commission expires:
Notary Public
EXHIBIT A: AUTHORITY AGREEMENT
42
EDWARDS METROPOLITAN DISTRICT,
formerly known as the Edwards Water District
By:
_______________, President
Attest:
_____________, Secretary
STATE OF COLORADO )
) ss.
COUNTY OF EAGLE )
The foregoing Authority Agreement was acknowledged before me this _____ day
of _____________, 2014 by _______________________________ as President and
_________________________ as Secretary of the EDWARDS METROPOLITAN
DISTRICT.
Witness my hand and official seal.
My commission expires:
Notary Public
EXHIBIT A: AUTHORITY AGREEMENT
[LETTERHEAD
of
the
Upper
Eagle
River
Water
Authority]
September
9,
2014
RE:
Letter
Agreement
regarding
Traer
Creek
Water
Rights
Dear
Mayor
Carroll,
Please
accept
this
Letter
Agreement
that
clarifies
and
confirms
the
Town
of
Avon’s
right
to
participate
as
a
co-‐applicant
in
any
water
court
proceeding
involving
the
water
rights
conveyed
to
the
Upper
Eagle
River
Water
Authority
by
the
Town
of
Avon
to
serve
the
Village
(at
Avon)
by
Special
Warranty
Deed,
dated
December
19,
2012,
recorded
on
August
1,
2014
at
Reception
No
201412789
(“Traer
Creek
Water
Rights”),
for the purpose of
monitoring such proceedings and to protect such Traer Creek Water Rights. In the event the
Town of Avon elects to participate as a co-applicant in any proceeding in which the Traer Creek
Water Rights are involved, the Authority agrees that the application, any pleadings initiated by
the Authority, and any stipulations shall be subject to consent of the Town of Avon, which
consent shall not be unreasonably withheld. The election by a Contracting Party not to
participate as a co-applicant in any adjudication, change or diligence proceeding involving Traer
Creek Water Rights after receiving notice of such application or proceeding shall be deemed to
constitute affirmative consent to the Authority’s adjudication of any changes to the Water Rights
that are deemed appropriate by the Authority including, but not limited to, the type of use, place
of use, points of diversion, and quantification of historic use.
By:________________________________________
[Name, Title on behalf of Authority]
AGREED AND ACCEPTED by Town of Avon:
By:_________________________________________
Rich
Carroll,
Mayor
Attest:____________________________________________________
Date:_______________________
Debbie
Hoppe,
Town
Clerk
EXHIBIT B
A
T
T
A
C
H
M
E
N
T
B
A
T
T
A
C
H
M
E
N
T
B
A
T
T
A
C
H
M
E
N
T
B
TOWN COUNCIL REPORT
To: Honorable Mayor Rich Carroll and Avon Town Council
From: Virginia C. Egger, Town Manager
Date: September 3, 2014
Agenda Topic: Resolution No. 14-23 Adopting Town of Avon 2015-16 Strategic Plan
SUMMARY
Resolution No. 14 – 23 is the adopting action for the Town of Avon 2015-16 Strategic Plan. The Strategic Plan is
the result of Council discussions at its August 12th and 23rd retreat work sessions, when accomplishments
over the last two years were reviewed; work was summarized for completion by the end of this year; and,
the strategic direction for 2015-16 deliberated. The Strategic Plan focuses on the key investments needed for
the Town to meet the document’s Overview Statement and other adopted plans of the Town and, thereby,
serves as a lead document in developing Avon’s first time two-year budget.
The two-year strategic program is expected to result in the Town of Avon becoming a model local
government in terms of fiduciary responsibility, communication with citizens and stakeholders, and in its
support of businesses, with improved infrastructure and an array of special cultural and recreational events
which attract both local residents and visitors.
Once the Strategic Plan is adopted, the staff will develop a detailed Work Plan for implementation.
RECOMMENDED MOTION
I move to adopt Resolution No. 14-23, [with or without amendments].
Attachment:
Resolution No. 14-23, Resolution Adopting the Town of Avon 2015-16 Strategic Plan
TOWN OF AVON, COLORADO
RESOLUTION NO. 14-23
SERIES OF 2014
RESOLUTION ADOPTING TOWN OF AVON 2015-2016 STRATEGIC PLAN
WHEREAS, the Avon Town Council participated in retreat sessions on August 12 and 23, 2014, in order
to discuss and identify the priorities, strategic work and future direction for the Town over the next
two years; and
WHEREAS, the Avon Town Council agreed to commit to the highest level of fiduciary responsibility,
effectiveness and efficiency in providing government services, and an attentive practice to open and
transparent governance to lead the successful implementation of strategic plans for the growth and
development of Avon; and
WHEREAS, the Avon Town Council has set forth its direction in the attached 2015-2016 Strategic Plan,
which establishes priorities and actions, with attention to be given first to the following topics:
- Develop and Support Business-like Practices and a High Performance Culture of Town Hall
- Civic Engagement & Participation
- Stakeholder & Regional Partnerships
- Infrastructure, Parks, Preserves, Trails and Sustainability
- Economic Development
- Land Use & Development
- Water Issues
- Grab the Bull by the Horns Opportunities; and
WHEREAS, the Avon Town Council has reviewed this document at its regular Town Council meeting
on September 9, 2014, in order to provide opportunities for the public to participate in the effort to
identify both Town priorities and direction for 2015 and 2016.
NOW, THEREFORE, BE IT RESOLVED the Avon Town Council adopts the Town of Avon 2015-2016
Strategic Plan as a critical implementation tool to help guide the Town in achieving a successful and
vibrant vision for the growth and development of Avon.
ADOPTED AND APPROVED by the Avon Town Council 9th day of September.
By: _________________________________ Attest:____________________________
Rich Carroll, Mayor Debbie Hoppe, Town Clerk
2015-16 STRATEGIC PLAN
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TOWN OF AVON
2015-2016 STRATEGIC PLAN
Adopted by the Avon Town Council
Resolution 14-23, Series of 2014
September 9, 2014
2015-16 STRATEGIC PLAN
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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.
2015-16 STRATEGIC PLAN
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Strategic Plan Fiscal Years 2015-16
Develop and Support Business-like Practices and a
High Performance Culture at Town Hall
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 each department.
Strategies:
Invest in a Leadership Training Program for Town Council
Hold a Council Retreat twice a year
Develop annual Work Plans in all departments to implement the Strategic Plan
Elected officials and staff will lead by example in conducting its operations, including but not limited to
abiding by Town codes, plans and initiatives for the private sector
Develop and distribute every two years an external Community Survey should be conducted in early
2015 to assess satisfaction with Town services and to gather public input about improvement priorities
and future development
Develop and distribute an annual internal Town Hall survey to ensure staff is meeting high service
expectations, efficiencies where possible, and its stated cultural values and objectives
Continue to review all Town departments to assess the necessity of tasks and functions, effectiveness
and efficiency in meeting department responsibilities, staffing levels, and future needs; evaluate
effectiveness of organizational changes
Schedule at least two (2) staff training sessions on “competitive” business practices and fiduciary
responsibility
Provide supervisor training; and “guest” service training for all employees
Ensure Town staff practices competitive pricing in purchasing resources for the Town
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Strategic Plan Fiscal Years 2015-16
Civic Engagement & Participation
The Town of Avon believes that citizen participation is essential to good governance, constructive performance
evaluation, public decision-making, innovation, facility investment and guided economic development
programs. Over the next two years, the Town of Avon will work to foster and support civic engagement by
encouraging citizen, visitor and youth participation.
Strategies:
Practice open and transparent government to maintain citizen trust
Conduct a comprehensive review of how municipalities are meeting the communication needs of
constituents to expand outreach efforts. This includes the use of social media (pro/con), website and
print (newspaper). All segments of the population should be included: younger generation and Hispanic
population.
Update Town of Avon website to serve as the most important information center for government
services and actions, Town activities, including but not limited to special events, multi-use trails, online
forms, timely news and important links
Avon will strive to be a regional and statewide leader, taking positions on boards and participating at
meetings
Establish ad hoc community boards to assist with major projects, such as but not limited to the
playground design, special event identification and development, street markets, code changes
Establish standing committees for on-going government programs such as the Trails Advisory Group
and Creative Arts Commission
Encourage volunteerism
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Strategic Plan Fiscal Years 2015-16
Stakeholder & Regional Partnerships
Meet with owners and representatives of the Village (at Avon), Traer Creek Metropolitan District, Hoffmann
Commercial Properties, East-West Partners/Starwood Capital Group and Beaver Creek Resort to develop good
communication, timely understandings and the trust necessary for the future development of the Town of Avon.
This outreach and communication is the responsibility of all elected and appointed officials and the employees of the
Town of Avon. In addition, strong relationships are needed with regional governments. Most prominent are the
interests shared with the Town of Vail, Eagle-Vail, Edwards and Eagle County in fostering smart growth and a
sustainable economy.
Strategies:
Throughout the year, Liaison Appointees and Town Manager will meet with respective principals for
developments in the Town of Avon to discuss current issues, development needs and opportunities
Annual or bi-annual sessions will be held in joint meeting settings with government partners
Throughout the year, fully participate and collaborate in regional transportation planning, service expansion,
identification consistency and transit efficiencies, as well as I-70 Corridor Demand Management work and
advocacy for an AGS station in Avon
Ensure Avon representatives apply for regional boards, including trails, affordable housing and transit
A peer group will be initiated of land use planners for tri-annual meetings
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Strategic Plan Fiscal Years 2015-16
Infrastructure, Parks, Preserves, Trails & Sustainability
Provide for the development of capital projects, which support the community-resort economy, and promote the
Town brand through a five-year capital investment plan, utilizing appropriate funding mechanisms such as pay-as-
you-go, new mill levy and/or current tax receipt long-term debt. Develop a strong foundation for the stewardship of
Avon’s natural resources through regional clean water programs and appropriate development of these green and
valuable resources. Promote sustainability of investments through the funding of maintenance and programs and
events designed to enhance the Town’s energy efficiency and waste reduction efforts.
Strategies:
Maintain Town infrastructure, including all buildings, roads, parks, preserves and trails; catch-up funding will
be required
With the Water Authority, promote water conservation
Evaluate the Vail recycling/solid waste program for implementation in Avon
Continue to prepare a Five Year Capital Plan while considering the following :
The current Town Hall is dysfunctional, energy inefficient and in need of major structural repair. A
renovated or new Town Hall should be considered a high priority
Identify the options for Town Hall future uses should the current civic services be relocated
Development of a Public Safety building with the Fire District
Bike climbing lane as part of Metcalf Road improvement
Regional support for meeting IMBA “Ride Center” status
Interim renovations and future expansion of the Recreation Center and investments in Town Park
will build Avon as an important Recreation and Cultural Center with the Pedestrian Mall
Modification to the Cabin for bathrooms needed for the Pavilion (Stage)
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Strategic Plan Fiscal Years 2015-16
Economic Development
The Town will continue to value and support a strong and diverse economy by providing an exceptional level of
municipal services for Avon businesses and by working to retain existing businesses as the Town seeks to expand its
retail and commercial base. The importance of vibrancy and activity within the Town will be supported by partnering
with existing special events and attracting an array of new and diverse cultural and recreational events to Avon,
which meet the Town’s brand and are in concert with the values of our community and serve to nurture a cohesive
sense of place and public.
Strategies:
Summer revenue, when measured by sales tax, lags winter receipts. The investment in special events is
needed to support restaurants and lodges – and is an important role for the Town. This is implicit with the
construction of the new Pavilion. Events must be evaluated annually for both ROI and ROO (Return on
Objectives), with financial success being achieved within three years.
Continue to solicit and fund signature events at the Nottingham Pavilion (Stage)
Outreach to Beaver Creek and VVF should be pursued to maximize regional event partnerships
Develop a marketing and management plan for the Pavilion (Stage) for private requests
With the completion of the Pedestrian Mall:
Funding and success of Après Avon is a high priority. Taking this success to Birds of Prey or other
important weekend should be planned
The Creative District should be pursued; including formation of a Creative Arts Committee. A
Creative Arts District Strategic Plan should be developed and adopted.
Town legislation to allow vendors on the Pedestrian Mall; with preference for local businesses
should be enacted
Summer farmer’s and/or arts’ market(s) should be implemented
An effective marketing plan for Avon’s events, vacation amenities (including lake, beach, and trails) should
be developed
With the investments in East Avon, attention should be given to lodging development in West Avon, District
standards updated and potential district formation for façade upgrades
Formalize the organization of the Economic Development Group to actively engage businesses with Town
government and for advice on special projects, such as branding was done in 2014 and to cultivate a strong
non-profit business association for the important work of local shopping programs, local business
promotion, etc.
Through regional partnerships, through the year, update website 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
Support regional efforts, with identification of Avon-specific benefits and measurable outcomes
Review and update the Town’s Private-Public Partnership Policy and investment Policy, as needed
Compile “Avon Business Summary Report”, which provides information about the characteristics of Avon’s
various business sectors, including inventory of retail and commercial spaces occupancy and vacancy data,
and leasing rates, to use as basis for partnering with the business community in attracting and expanding
business in Avon
If requested by the Town Council, evaluate expansion of URA into other qualified areas of Avon; if URA
expansion is desirable, solicit RFQ and identify budgetary needs
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Strategic Plan Fiscal Years 2015-16
Land Use & Development
The current redevelopment in Avon and preparing for future growth is essential to Avon’s on-going success as a
resort community. Through a critical evaluation of and modifications to the Town’s planning documents, the
Town has the opportunity to provide proper guidance and surety for future development and to attend to areas
of health, safety and welfare. The Town’s proactive planning for future growth, an openness to new
community-development trends and private property interests sets forth a dynamic relationship for the
construction of the built environment and requires Avon’s Community Development Department and Planning
and Zoning Commission to invest in professional development and information at the leading edge of resort
growth.
Strategies:
The development of an implementable multi-modal transportation and parking plan, in collaboration
with stakeholders, is a high priority and should result in a program for supporting Avon as a pedestrian
and bicycle friendly community, with seamless public transit and adequate parking
Work with the East Avon owner HCRE on a master development plan, district amendment and code
revisions to facilitate a streamlined process for development approvals
Identify with the Planning and Zoning Commission 2014 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. Evaluate whether Wildridge should be
“zoned” rather than continuing to have a PUD Zone for the development.
Develop the scope, public process, schedule for commencement and completion of the Comprehensive Plan
Update, including development of questions for the Community Survey, (Early 2015)
Revise the Sign Code
Process Annexation and Zoning applications, including surveying and public notification requirements, for the
85.99 acre “Village Parcel” deeded to Town trough the Eagle Valley Land Exchange of 2013
Take the lead in organizing mountain resort planning group to meet in different locations at least
annually with shared agenda items
Select and tour a mountain resort community similar to Avon at least once a year for the purposes of
studying transportation, design standards, affordable housing, main street improvements, etc.
Seek to finalize the County IGA/Joint Planning Area
Evaluate the Wildridge/Mountain Star/Singletree seasonal wild land fire program, including summer “hot
shot” staffing and community outreach for current home to amend residential landscaping
Organize study session with the County Commissioners and area jurisdictions to assess the areas
wildland fire program
Develop land use regulations for new development and major renovations to protect homes
from wildland fire
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Strategic Plan Fiscal Years 2015-16
Water Issues
Identify and unresolved water issues and develop a timetable and approach for resolution over the next two
years; manage what can be done against higher priorities.
Strategies:
Schedule with Council and Water Authority representatives a program and policy for the accounting and
dedicated use of unallocated water held by the Authority
Continue with the Water Authority, Avon representatives and Mountain Star residents to reach resolution
of the Mountain Star water tank, fire flow, and system delivery issues
Resolve Avon Drinking Water Facility fenced area for ownership and/or lease to the Water Authority.
Evaluate and remediate liability concerns, if any, for Avon Drinking Water Facility fenced area with the
Water Authority.
Participate as a member of the Urban Run-off Group to understand activities and possible 2015 funding
request for a Gore Creek Water Quality Improvement Plan. Seek to retain seat on the Executive
Committee.
Draft and execute an agreement with the ERWSD for long term cost sharing and O&M responsibilities of
the Heat Recovery System
Request evaluation and development of options for a lower monthly water rate for residences less than
3,500 square feet and for master water meters serving low income households
Organize water and wastewater documents and files at Town Hall; institutionalize knowledge. This
project is 95% complete.
Develop Water Bank for Village (at Avon) water uses
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Strategic Plan Fiscal Years 2015-16
Grab the Bull by the Horns Opportunities
In the last two years, Avon has taken action on unforeseen opportunities. Most notable are the West Avon
Preserve Multi-use Trails and design and construction of the Pavilion (Stage) and Pedestrian Mall continuation to
Benchmark Road. In addition, Avon actively sought out successful producers to develop new special events in
Nottingham Park, with Flavors of Colorado, WinterWonderGrass, Bravo!Vail and Man of the Cliff each seeing a first
year of seed funding support. These opportunities acted on, required the financial support and staff availability
and capability to be flexible and to shift work plan priorities. Avon desires to retain an alacrity to respond to
unforeseen opportunities and, whenever possible, to proactively engage in endeavors for the good future of the
Town.
Strategies:
Council members need to be in the community to learn of opportunities which can be assessed and when
viable acted upon
Maintain a fiscal position resilient to future economic fluctuations
Develop reserves for special events, recreation amenities and business development
Support a work culture that is flexible, innovative and resilient to change
TOWN OF AVON, COLORADO
AVON MEETING MINUTES FOR TUESDAY AUGUST 26, 2014
AVON TOWN HALL, ONE LAKE STREET
Page 1
1. CALL TO ORDER & ROLL CALL
Mayor Pro Tem Fancher called the meeting to order at 4:00 pm at the Swift Gulch conference room. A roll
call was taken and Council members present were Buz Reynolds, Matt Gennett, Dave Dantas, Jake Wolf and
Chris Evans. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Assistant Town
Manager Scott Wright, and Executive Assistant Preston Neill. (Mayor Carroll arrived late.)
2. WORK SESSION
2.1. DRAFT 2015-16 STRATEGIC PLAN
2.2. COMMUNICATION PROTOCOLS
3. ADJOURN TO AVON TOWN HALL COUNCIL CHAMBERS AT 6:00 PM
4. CALL TO ORDER & ROLL CALL
Mayor Carroll called the meeting to order at 6:25 pm. A roll call was taken and Council members present
were Jake Wolf, Buz Reynolds, Matt Gennett, Jennie Fancher, Chris Evans, and Dave Dantas. Also present
were Town Manager Virginia Egger, Town Attorney Eric Heil, Planning Manager Matt Pielsticker, Assistant
Town Manager Scott Wright, Executive Assistant Preston Neill and Town Clerk Debbie Hoppe as well as
members from the public.
5. AP PROVAL OF AGENDA
There were no changes to the agenda.
6. PUBLIC COMMENT
Michael Cacioppo, Wayne Hanson, Betty Todd and Tom Beaver commented.
7. ACTION ITEMS
7.1. PUBLIC HEARING ON APPEAL, IN ACCORDANCE WITH A VON MUNICIPAL CODE §7.16.160, APPEALS, FOR A
PZC DECISION TO DENY A MINOR DEVELOPMENT PLAN APPLICATION FOR 230 AND 245 CHAPEL PLACE,
CHAPEL SQUARE SUBDIVISION – HOFFMANN COMMERCIAL R EAL ESTATE
(PLANNING MANAGER MATT PIELSTICKER)
Mayor Carroll opened the Public Hearing and the following persons commented: Jeff Meier, Wayne
Hanson, Bette Todd, and Todd Frye.
Councilor Dantas moved to meet in Executive Session at 7:18 pm for a conference with the Town
Attorney for the purpose of receiving legal advice under C.R.S. §24-6-402(2)(b) regarding the Hoffmann
Commercial Real Estate Minor Development Plan appeal; Councilor Reynolds seconded the motion and it
passed unanimously by those present.
TOWN OF AVON, COLORADO
AVON MEETING MINUTES FOR TUESDAY AUGUST 26, 2014
AVON TOWN HALL, ONE LAKE STREET
Page 2
Councilor Reynolds moved to end Executive Session; Councilor Wolf seconded the motion and it passed
unanimously.
Executive Session adjourned at 7:55 pm.
Councilor Gennett moved to uphold the Planning and Zoning Commission Decision to deny the Appeal
Application and made the following findings:
1. The Avon Town Council considered the Planning and Zoning Commission’s decision made on May 6,
2014; considered the application materials; considered all correspondence between the Applicant
and Town Staff; considered written comments in the Council packet; and all public testimony at the
public hearings; and
2. The Application does not comply with §7.16.090(f)(1), Design Review, which reads “The design relates
the development to the character of the surrounding community; or, where redevelopment is
anticipated, relates the development to the character of Avon as a whole”;
3. The Avon Town Council finds that the “surrounding community” includes Buildings A, B, and C of the
Chapel Square PUD; and
4. The architectural style of this design element (shutters and exterior doors) is not representative of
the contemporary architectural style of the buildings; and
5. By only adding this design element to Buildings A and C, Buildings A, B, and C would not have a
consistent architectural style; and
6. The Avon Town Council has considered the applicable review criteria contained in §7.16.080(f),
Development Plan, Avon Municipal Code, and finds that the application does not comply with
§7.16.080(f)(4); specifically the building elevations as proposed are not “consistent with a previously
approved…planned development, or any other precedent plan or land use approval for the
property.”
Councilor Wolf seconded the motion and it passed unanimously by those present.
Councilor Dantas left meeting at 9:20 pm and did not return.
7.2. PUBLIC HEARING SECOND READING OF ORDINANCE 14-13 APPROVING THE GRANT OF A REVOCABLE
ENCROACHMENT LICENSE TO INSTALL, CONSTRUCT AND MAINTAIN PRIVATE IMPROVEMENTS ON TOWN-
OWNED RIGHT-OF-WAY AND PROPERTY AT CHRISTY SPORTS FOR DEVELOPMENT OF A DDITIONAL PUBLIC
PARKING – C ONTINUED FROM AUGUST 12, 2014 MEETING (TOWN MANAGER VIRGINIA EGGER)
Mayor Carroll opened the Public Hearing, no comments were made. Mayor Carroll moved to continue
Public Hearing Second Reading of Ordinance 14-13 to the September 9th meeting; Councilor Evans
seconded the motion and it passed unanimously by those present. (Councilor Dantas was absent.)
7.3. RESOLUTION NO. 14-20, SERIES OF 2014, REFERRING A B ALLOT QUESTION FOR THE RECREATION CENTER
EXPANSION AND REFURBISHMENT AND ASSOCIATED SURFACE P ARKING
(ASSISTANT TOWN MANAGER SCOTT WRIGHT)
TOWN OF AVON, COLORADO
AVON MEETING MINUTES FOR TUESDAY AUGUST 26, 2014
AVON TOWN HALL, ONE LAKE STREET
Page 3
Council Members are not in favor of a Ballot Question for the Recreation Center Expansion and
Refurbishment and associated Surface Parking at this November’s election and no action was taken.
7.4. REVIEW AND DIRECTION ON RESPONSES TO PAVILION FINANCING TERM SHEET
(ASSISTANT TOWN MANAGER SCOTT WRIGHT)
7.3. REVIEW OF FAIR CAMPAIGN PRACTICES (TOWN A TTORNEY ERIC HEIL)
7.6. ACTION ON PURCHASE AND SERVICE AGREEMENT FOR KRONOS TIME KEEPING SYSTEM
(ASSISTANT TOWN MANAGER SCOTT WRIGHT)
Mayor Pro Tem Fancher moved to approve Action on Purchase and Service Agreement for KRONOS
Time Keeping System; Councilor Evans seconded the motion, and it was approved unanimously by
those present.
7.7. MINUTES FROM AUGUST 12, 2014 MEETING (TOWN CLERK DEBBIE HOPPE)
Mayor Carroll asked to make a change under Call to O rder and Roll Call to insert ‘at the Swift Gulch
Conference R oom’. Councilor Evans moved to approve the M inutes as modified by Mayor Carroll;
Councilor Wolf seconded the motion and it passed unanimously by those present.
8. WORK SESSION
8.1. UPDATE ON M ETCALF R OAD BIKE CLIMBING LANE CONSTRUCTION COSTS AND SCHEDULE
(TOWN ENGINEER JUSTIN HILDRETH)
8.2. REVIEW AND DIRECTION REGARDING RULES AND REGULATIONS IN THE WEST AVON PRESERVE
(PLANNING MANAGER MATT PIELSTICKER)
Prentice & Carol O’Leary, Mary Ann Scherpf, and Lisa Curry commented.
9. COMMITTEE MEETING UPDATES: COUNCILORS AND MAYOR
10. COUNCIL COMMENTS
11. MAYOR REPORT AND FUTURE AGENDA ITEMS
12. WRITTEN REPORTS
12.1. FINANCIAL REPORT
13. E XECUTIVE SESSION
13.1. DISCUSSION TO DETERMINE POSITIONS RELATIVE TO MATTERS THAT MAY BE SUBJECT TO NEGOTIATIONS,
DEVELOPING STRATEGY FOR NEGOTIATIONS, AND/OR INSTRUCTING NEGOTIATORS, UNDER
C.R.S. §24-6 -402(2)(E) RELATED TO THE UPPER EAGLE REGIONAL WATER AUTHORITY MASTER AGREEMENT
TOWN OF AVON, COLORADO
AVON MEETING MINUTES FOR TUESDAY AUGUST 26, 2014
AVON TOWN HALL, ONE LAKE STREET
Page 4
Mayor Pro Tem Fancher moved to meet in Executive Session at 10:41 pm for a Discussion to Determine
Positions relative to Matters that may be subject to Negotiations, Developing Strategy For
Negotiations, and/or Instructing Negotiators, under C.R.S. §24-6-402(2)(e) related to the Upper Eagle
Regional Water Authority Master Agreement. Councilor Gennett seconded the motion and it passed
unanimously by those present.
Councilor Evans moved to end Executive Session; Councilor Wolf seconded the motion and it passed
unanimously.
Executive Session adjourned at 10:59 pm.
14. ADJOURNMENT
There being no further business to come before the Council, the regular meeting adjourned at 11:00 pm.
RESPECTFULLY SUBMITTED:
_________________________________
Debbie Hoppe, Town Clerk
APPROVED:
Rich Carroll ________________________________
Dave Dantas ________________________________
Chris Evans ________________________________
Jennie Fancher ________________________________
Albert “Buz” Reynolds ________________________________
Jake Wolf ________________________________
Matt Gennett ________________________________
TOWN COUNCIL REPORT
To: Honorable Mayor Rich Carroll and Avon Town Council
From: Kelly Huitt, Budget Analyst
Date: September 3, 2014
Agenda Topic: 2015-2016 Budget Work Session
A PowerPoint presentation including a Situational Analysis will be provided during the budget work session. The
information below is a summary of key facts.
Revenue Projections
General Fund
Sales Tax
Up 7.13% over 2013 and 4.75% over budget through June 2014
Total year over year growth equals $223,988.02, of which 43.51% can be attributed to new business
Increase current 2014 budget by an additional 4%, or $260,227, to reflect actual increases in revenue
collections
Project 4% year over year increase 2015-2016
Accommodations Tax
Up 7.69% over 2013 and 4.59% over budget through June 2014
Increase current 2014 budget by an additional 4%, or $36,611, to reflect actual increases in revenue
collections
Project 4% year over year increase 2015-2016
Property Tax
Decrease in 2013 net assessed values caused a -9.35% decrease in 2014 property tax revenue
2014 net assessed values remain flat keeping revenue stable for 2015
Project 10% increase in 2016 as it is a reassessment year
Building Fees
2014 saw a -61.35% decrease in Building Fees due to unusually high 2013 fees from the Wyndham
building permits
Project zero change in building fees in 2015-2016
Avon Recreation Center Admission Fees
Decrease final revised 2014 budget by $52,226 to reflect actual revenue collections
Project 4% increase in 2015 and 2016 as a result of improving economic conditions
Special Events Admission Fee
New fee in 2014- Budgeted $15,000 for Winter Wonder Grass ticket sales and actuals came in at $17,670.
The 2014 revised budget was amended to reflect this increase.
Anticipate a 27.33% increase in 2016 Winter Wonder Grass ticket sales based on projections provided by
the event producer and approved by staff. This estimate is provided that 3,750 tickets are sold daily.
Forecast 50% revenue increase in 2016. This is due to the contractual agreement by the producer to pay
the Town $1,000 for every 100 tickets sold over 3,800 per day. This estimate includes a 10% increase in
ticket sales to 4,125 daily and $3,000 per day for the 300 tickets estimated over 3,800.
Village at Avon Retail Sales Fee
Added $625,000 in revenues related to this add-on fee during the first amendment to the General Fund
budget
Project a 4% increase in 2015-2016
$150,000 will be transferred to CIP in 2015 and 2016 due to the requirement to fund the asphalt overlay
account
General Fund Summary
The 2014 original budget saw a ($103,123) decrease to major revenue sources in the General Fund due to
decreases in net assessed values and building fees.
Changes to the 2014 final budget based on actuals to date and the addition of the VAA RSF will realize
$872,372 in additional revenues
2015 budget projections equal a $368,541 increase in the Town’s major revenue sources
The 2016 budget anticipates another $537,084 in revenues over 2015 from a slight recovery in assessed
values combined with a 4% increase in sales tax, accommodations tax, and recreation fees.
Fleet Maintenance Shop Rates
Current Rates = $102/hr. for light duty vehicles and $110/hr. for heavy duty vehicles
The Town annually compares rates to private shops in order to stay competitive. Fleet rates were last
changed in 2011 when the fee went from one blanket rate of $105 for all vehicles to separate rates for
light duty vs. heavy duty vehicles.
A survey of regional private shops in 2014 produced an average of $118.33/hr. for light duty and
$141.00/hr. for heavy duty.
Based on this survey the Town plans to increase 2015 shop rates to $105 for light duty and $115 heavy
duty vehicles. This increase puts the Town’s rates more in line with other shops in the area while
remaining competitive by maintaining a lower than average rate for both vehicle types.
The increase in rates will translate into approximately $25,000 in additional revenue
Capital Projects – Real Estate Transfer Tax
Fund revenues are up 52.03% compared to 2013 and 157.44% compared to the budget through July 2014
Increase current 2014 budget by an additional 37.5%, or $600,000, to reflect actual increases in revenue
collections. Most of this increase is due to the large purchase of Chapel Square.
2015 RETT revenues are projected to increase 73.88% or $1,625,312 due to the anticipated sale of
Wyndham time shares.
2016 RETT collections are projected to go back down ($507,232) based on the 2015 liquidation of a large
amount of Wyndham time shares.
2015 Budget – Personnel Benefits & Compensation
PAGE 1 OF 2
TOWN COUNCIL REPORT
To: Honorable Mayor and Avon Town Council
From: Karyne Spadi, Human Resources Generalist
Date: August 26, 2014
Agenda Topic: Budget 2015: Review Proposed Employee Compensation and Benefits Program
Summary
Over the course of the past year, the Benefits and Compensation Committee has met periodically to
discuss various components which make up the compensation and benefits program of the Town. The
Committee is comprised of a representative group of employees and its recommendations are
provided to Department Heads for a final review and recommendation.
Recommendations regarding changes to employee salaries and wellness benefits for 2015 are
discussed below. There are no proposed changes to other compensation.
Employee Salary Step Program
A salary market survey was completed in July comparing Avon’s salary ranges to the Towns of Vail and
Breckenridge, and to Eagle County. For recreation positions, the Western Eagle County Metropolitan
Recreation District (WECMRD), and the Town of Silverthorne are used for the market analysis. The
results of the survey are used to evaluate adjustments to salary ranges, where appropriate. The salary
market survey from the above identified comparable markets reflects an average increase of 2.2%,
which results in a .46% increase when applied to Avon’s Salary Step Program. Council last year brought
salary pay ranges to the market, which has been effective in maintaining the Town’s compensation in
comparison to other governmental organizations with whom the Town competes for employees.
The Salary Step Program, launched in January 2014, is approaching the second year of implementation.
The step structure, designed to reflect the increasing value of an employee over the years and to provide
an unbiased approach for any employee to reach the top of the pay range, aligns with the employees’
stated culture of a “high performing ” with the “pay for performance” philosophy. Since implementation,
the program has been enthusiastically accepted by employees and exceedingly successful in
competitive hiring and retaining the best employees. Based on high performance, employees have
received between a 3% and 6% increase on his or her evaluation date.
A secondary objective, implemented recently by the Town Manager, endeavors to establish as the
minimum entry level salary, a figure equivalent to 70% of the Eagle County Average Minimum Wage
index (AMI), which is used for establishing income levels for acquiring affordable of housing within
Eagle County. The minimum established for 2015 is a beginning salary of $41,580. Six entry level
salaries of the Town have been adjusted up to this figure at an estimated total cost to the Town in
2015 of $4,694. In addition, four other salary ranges have been adjusted to reduce the total number
of steps necessary to reach the top step, which again, has been established at a level of at least 70%
of AMI.
2015 Budget – Personnel Benefits & Compensation
PAGE 2 OF 2
Collaborative meetings continue to thoroughly review current staffing levels of each position within
the parks, roads and bridges and transit divisions resulting in a new “rover” position and cross-
training of staff to meet the workload demands of the three divisions. This process has resulted in a
reduction of four full-time positions within these divisions and overall the Town has seen a reduction
in the number of full-time employees from a projected staffing level of 83.75 to an actual of 78.75 for
2014. Critical analysis will continue to monitor and create efficiencies within all Town divisions.
The changes to employee wages as proposed above result in the following expenditures:
Total Town of Avon Salaries: 2014 $4,665,820
2015 $4,873,578 (Proposed)
2014 Estimated Cost for Step Program:
(One step at successful performance evaluation anniversary date) $180,686 (3.73%)
Estimated Cost for Salary Range Market Adjustments: $ 22,378 (0.46%)
Estimated Cost for AMI Adjustment: $ 4,694 (0.10%)
$207,758 (4.29%)
Employee Health and Wellness Program
No changes to the Town’s health insurance coverages or other benefits are being contemplated for 2015.
This includes maintaining current staff contribution levels.
Over the past couple of years, the Town’s medical benefits have been under review, highly focused on the
changes occurring with National Health Care Reform and the Affordable Care Act (ACA). During this time,
due to changes in the ACA definitions of a full-time employee, a due diligence assessment created the
necessity to develop and define Employee Classification guidelines and hours associated with these
classifications. Implementation of the timekeeping software, Kronos, will assist with tracking and
calculating hours of regular and seasonal part-time employees.
In addition to containing coverage costs associated with the ACA, the Benefits and Compensation
Committee completed a thorough review of the benefits associated with implementing a Wellness
Program. After much review and discussion by the committee it was decided the first tier of the three year
Wellness Program be administered in house, a savings of $5,000. Originating from the goal of containing
health care costs by reducing premiums and claims, the program was established to increase the well-
being and productivity of all Town employees by creating a culture of health, whereby promoting
health as a valued part of the normal workday environment. The Committee will continue to evaluate
the Wellness Program and ways of reducing health care costs. It will remain the goal to contain the
employee contribution costs to the amount in 2014 for 2015 and to continue to provide superior benefits
and compensation as part of the total rewards package.
Staff will present a PowerPoint presentation during the budget work session on Tuesday and look forward
to your direction in effecting these changes in the 2015 budget
TOWN COUNCIL REPORT
To: Honorable Mayor and Town Council
From: Preston Neill, Executive Assistant to the Town Manager
Date: September 9, 2014
Agenda Topic: Town of Avon Procurement Policy Update
BACKGROUND:
Based on discussion and direction regarding the Town’s current Procurement Policy at the July 22,
2014, Town Council meeting, staff has researched the procurement/purchasing policies of several
comparable Colorado municipalities. The purpose is to identify what other municipality’s standards of
conduct/restrictions for public employees and elected officials are in procuring work. The policies of
the following Colorado cities and towns were analyzed: Aspen, Durango, Steamboat Springs, Telluride
and Vail.
TOWN OF AVON PROCUREMENT POLICY:
Attached are the applicable sections from the Town of Avon Procurement Policy, which state the
standards of conduct for public employees and Town Council members in procuring work for the
Town.
OTHER PROCUREMENT POLICIES – STANDARDS OF CONDUCT:
City of Aspen, Colorado: Municipal Code: Title 4 – Procurement Code
The City of Aspen’s Procurement Code defines “employee” as the following: “Employee means an
individual drawing a salary from a government body.” The code includes a section regarding “Conflict
of Interest” where it explains “unless a specific exemption is obtained…it shall be a breach of ethical
standards for any employee to participate directly or indirectly in drafting or preparing specifications,
obtaining or processing approvals, participating in source selection or contract formation or granting
approval for any procurement” when the employee is aware that the employee, any member of the
employee’s immediate family or a business or organization in which the employee or any member of
the employee’s immediate family has a financial interest pertaining to the procurement.
In the event a conflict exists, the code indicates “an employee shall promptly file a written statement
of disqualification and shall withdraw from further participation in the transaction involved. The
employee may, at the same time, apply to the City Attorney…for an advisory opinion as to what
further participation, if any, the employee may have in the transaction.”
City of Durango, Colorado: Purchasing Policy
The City of Durango’s Purchasing Policy emphasizes the unethicality for any employee or public official
“who is participating directly or indirectly in the purchasing process to become or to be, while such a
City employee or officer, the employee of any person contracting with the City.” This policy includes a
provision regarding waivers where a waiver from the conflict of interest may be granted by the City
Manager upon determining that “the contemporaneous employment or financial interest of the City
employee or officer has been publicly disclosed; the City employee or officer will be able to perform
the purchasing functions without actual or apparent bias or favoritism; and the award will be in the
best interests of the City.”
City of Steamboat Springs, Colorado: Personnel and Administrative Regulations Manual: Title III –
Procurement Regulations
Unlike the Town of Avon Procurement Policy, the City of Steamboat Springs’ Procurement Regulations
does not include a definition for “employee” to clarify who falls within the meaning. It does include a
section regarding “Conflict of Interest” that prohibits an employee from participating in or attempting
to influence a decision when a conflict of interest exists. Additionally, a conflict is described as “any
procurement of goods or services over $1,000, and/or any contract over $1,000, from an employee,
employee spouse or immediate family member.”
In the event a conflict exists, it does not necessarily mean the City of Steamboat Springs may not do
business with the individual or company identified with a conflict. Their policy requires that
“disclosure be made to the City Manager with a recommendation that proceeding with the
procurement where a conflict of interest exists, is in the ‘best interests’ of the city.”
Town of Telluride, Colorado: Municipal Code: Chapter 4, Article 6 – Procurement Code
The Town of Telluride’s Procurement Code only references the sale of town-owned property to
employees.
Town of Vail, Colorado: Policy: Town of Vail Purchasing (P-1)
Nowhere in the Town of Vail Purchasing Policy does it reference how employees/elected officials may
or may not participate in projects or work funded by the Town or anything related to Conflict of
Interest.
CONCLUSION:
The current Town of Avon Procurement Policy is very clear in identifying who falls within the definition
of “employee”: “Employee means an individual drawing a salary from the governmental body,
whether elected or not and any non-compensated individual performing a personal service for any
governmental body, including but not limited to members of the Town Council, members of volunteer
and/or advisory boards.”
The Town’s current Procurement Policy does not prohibit members of the Town Council from
submitting bids to procure work from the Town. It simply prohibits a Town Council from participating
in any part of the procurement process when such Town Council member is seeking to procure the
work.
This is similar to the policies of the City of Aspen, City of Durango and the City of Steamboat Springs.
The policies of the Town of Telluride and Town of Vail are less rigid.
COUNCIL ACTION:
Town staff requests direction from the Town Council should you desire changes to the current
Procurement Policy.
ATTACHMENT:
Standards of Conduct from the Town of Avon Procurement Policy