TC Ord. No. 2014-17 Financing of certain public improvements of the TownTOWN OF AVON, COLORADO
ORDINANCE NO. 14 -17
SERIES OF 2014
AN ORDINANCE AUTHORIZING THE FINANCING OF CERTAIN
PUBLIC IMPROVEMENTS OF THE TOWN, AND IN CONNECTION
THEREWITH AUTHORIZING THE LEASING OF CERTAIN TOWN
PROPERTY AND THE EXECUTION AND DELIVERY BY THE TOWN
OF A SITE AND IMPROVEMENT LEASE, A LEASE PURCHASE
AGREEMENT, A DISCLOSURE CERTIFICATE, A PRELIMINARY
OFFICIAL STATEMENT AND OTHER DOCUMENTS AND MATTERS
RELATING TO CERTAIN CERTIFICATES OF PARTICIPATION,
SERIES 2014A; SETTING FORTH CERTAIN PARAMETERS AND
RESTRICTIONS WITH RESPECT TO THE FINANCING;
AUTHORIZING OFFICIALS OF THE TOWN TO TAKE ALL ACTION
NECESSARY TO CARRY OUT THE TRANSACTIONS
CONTEMPLATED HEREBY; RATIFYING ACTIONS PREVIOUSLY
TAKEN; AND PROVIDING OTHER MATTERS RELATED THERETO.
WHEREAS, the Town of Avon, Eagle County, Colorado (the "Town ") is a duly organized and
existing home rule municipality of the State of Colorado, created and operating pursuant to
Article XX of the Constitution of the State of Colorado and the home rule charter of the Town
(the "Charter "); and
WHEREAS, pursuant to Chapter XIV of the Charter, the Town is authorized to enter into one or
more leases or lease - purchase agreements for land, buildings, equipment and other property for
governmental or proprietary purposes; and
WHEREAS, the Town is authorized by Article XX, Section 6 of the Colorado Constitution, its
Charter, and part 8 of Article 15 of title 31, Colorado Revised Statutes ( "C.R.S. "), to enter into
rental or leasehold agreements in order to provide necessary land, buildings, equipment and other
property for governmental or proprietary purposes; and
WHEREAS, for the functions or operation of the Town, it is necessary that the Town finance
the acquisition of certain real property and all buildings and improvements located thereon for
Town purposes, and as authorized by law (collectively, the "Project "); and
WHEREAS, the Town owns, or will own, in fee title, the Site and the premises, buildings and
improvements located thereon (the "Leased Property "), as further described in the Site Lease and
the Lease (hereinafter defined); and
WHEREAS, the Town Council of the Town (the "Town Council ") has determined, and now
hereby determines, that it is in the best interest of the Town and its inhabitants that the Town
lease the Leased Property to UMB Bank, n.a., as trustee under the Indenture (the "Trustee ")
pursuant to a Site Lease between the Town, as lessor, and the Trustee, as lessee (the "Site
Ord. No. 14 -17 Approving Certificates of Participation
September 23, 2014
Page 1 of 11
Lease "), and lease back the Trustee's interest in the Leased Property pursuant to the terms of a
Lease Agreement (the "Lease ") between the Trustee, as lessor, and the Town, as lessee; and
WHEREAS, pursuant to the Lease, and subject to the right of the Town to terminate the Lease
and other limitations as therein provided, the Town will pay certain Base Rentals and Additional
Rentals (as such terms are defined in the Lease) in consideration for the right of the Town to use
the Leased Property; and
WHEREAS, the Town's obligation under the Lease to pay Base Rentals and Additional Rentals
shall be from year to year only; shall constitute currently budgeted expenditures of the Town;
shall not constitute a mandatory charge or requirement in any ensuing budget year; and shall not
constitute a general obligation or other indebtedness or multiple fiscal year financial obligation
of the Town within the meaning of any constitutional, charter, statutory limitation or requirement
concerning the creation of indebtedness or multiple fiscal year financial obligation, nor a
mandatory payment obligation of the Town in any ensuing fiscal year beyond any fiscal year
during which the Lease shall be in effect; and
WHEREAS, the Trustee will enter into an Indenture of Trust (the "Indenture ") pursuant to
which there is expected to be executed and delivered certain certificates of participation (the
"2014A Certificates ") dated as of their date of delivery that shall evidence proportionate interests
in the right to receive certain Revenues (as defined in the Lease), shall be payable solely from the
sources therein provided and shall not directly or indirectly obligate the Town to make any
payments beyond those appropriated for any fiscal year during which the Lease shall be in effect;
and
WHEREAS, the net proceeds of the 2014A Certificates are expected to be used to finance the
Project; and
WHEREAS, there has also been presented to this meeting of the Town Council the form of
Continuing Disclosure Certificate (the "Continuing Disclosure Certificate "); and
WHEREAS, there will be executed and distributed in connection with the sale of the 2014A
Certificates an Official Statement (the "Official Statement ") in substantially the form of the
Preliminary Official Statement (the "Preliminary Official Statement ") relating to the 2014A
Certificates as approved by the Finance Director of the Town; and
WHEREAS, Section 11 -57 -204 of the Supplemental Public Securities Act, constituting Title 11,
Article 57, Part 2, Colorado Revised Statutes, as amended (the "Supplemental Act "), provides
that a public entity, including the Town, may elect in an act of issuance to apply all or any of the
provisions of the Supplemental Act; and
WHEREAS, there has been presented to the Town Council and are on file at the Town offices
the following: (i) the proposed form of the Site Lease; (ii) the proposed form of the Lease; and
(iii) the proposed form of the Continuing Disclosure Certificate to be provided by the Town (the
"Disclosure Certificate "); and
Ord. No. 14 -17 Approving Certificates of Participation
September 23, 2014
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WHEREAS, capitalized terms used herein and not otherwise defined shall have the meanings
set forth in the Lease; and,
WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the
Town Council desires to comply with the requirements of the Avon Home Rule Charter by
setting a public hearing in order to provide the public an opportunity to provide public comment
on this Ordinance 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. Short Title. This ordinance shall be known and may be cited by the short title
"2014A COP Ordinance."
Section. 2. Ratification and Approval of Prior Actions. All action heretofore taken (not
inconsistent with the provisions of this Ordinance) by the Town Council or the officers, agents or
employees of the Town Council or the Town relating to the Site Lease, the Lease, the
acquisition, construction, installation or improvement of the Project, and the execution and
delivery of the 2014A Certificates is hereby ratified, approved and confirmed.
Section 3. Finding of Best Interests. The Town Council hereby finds and determines,
pursuant to the Constitution, the laws of the State of Colorado and the Charter, that the
acquisition, construction, and installation of the Project, and the financing of the costs thereof
pursuant to the terms set forth in the Site Lease and the Lease are necessary, convenient, and in
furtherance of the Town's purposes and are in the best interests of the inhabitants of the Town
and the Town Council hereby authorizes and approves the same.
Section 4. Supplemental Act; Parameters. The Town Council hereby elects to apply all of
the Supplemental Act to the Site Lease and the Lease and in connection therewith delegates to
each of the Mayor, the Town Manager or the Finance Director the authority to make any
determination delegable pursuant to § 11- 57- 205(1)(a -1) of the Colorado Revised Statutes, as
amended, in relation to the Site Lease and the Lease, and to execute a sale certificate (the "Sale
Certificate ") setting forth such determinations, including without limitation, the term of the Site
Lease, the rental amount to be paid by the Trustee pursuant to the Site Lease, the term of the
Lease, and the rental amount to be paid by the Town pursuant to the Lease, subject to the
following parameters and restrictions:
(a) the term of the Site Lease shall not extend beyond December 31, 2050;
(b) the aggregate principal amount of the Base Rentals payable by the Town pursuant to the
Lease shall not exceed $6,300,000;
(c) the Lease Term shall not extend beyond December 31, 2040;
Ord. No. 14 -17 Approving Certificates of Participation
September 23, 2014
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(d) the maximum annual repayment cost of the Base Rentals under the Lease shall not
exceed $500,000, and the total repayment cost shall not exceed $12,500,000; and
(e) the maximum net effective interest rate on the interest component of the Base Rentals
relating to the 2014A Certificates shall not exceed 5.00 %.
Pursuant to § 11 -57 -205 of the Supplemental Act, the Town Council hereby delegates to each
of the Mayor, the Town Manager or the Finance Director the authority to sign a contract for the
purchase of the 2014A Certificates or to accept a binding bid for the 2014A Certificates and to
execute any agreement or agreements in connection therewith. In addition, each of the Mayor,
the Town Manager or the Finance Director is hereby authorized to determine if obtaining an
insurance policy for all or a portion of the 2014A Certificates is in the best interests of the Town,
and if so, to select an insurer to issue an insurance policy, execute a commitment relating to the
same and execute any related documents or agreements required by such commitment. Each of
the Mayor, the Town Manager or the Finance Director is also hereby authorized to determine if
obtaining a reserve fund insurance policy for the 2014A Certificates is in the best interests of the
Town, and if so, to select a surety provider to issue a reserve fund insurance policy and execute
any related documents or agreements required by such commitment.
The Town Council hereby agrees and acknowledges that the proceeds of the 2014A
Certificates will be used to finance the costs of the Project and to pay other costs of issuance.
Section 5. Approval of Documents. The Site Lease, the Lease, and the Disclosure
Certificate, in substantially the forms presented to the Town Council and on file with the Town,
are in all respects approved, authorized and confirmed, and the Mayor or Mayor Pro Tem of the
Town is hereby authorized and directed for and on behalf of the Town to execute and deliver the
Site Lease, the Lease, and the Disclosure Certificate in substantially the forms and with
substantially the same contents as presented to the Town Council, provided that such documents
may be completed, corrected or revised as deemed necessary by the parties thereto in order to
carry out the purposes of this Ordinance.
Section 6. Approval of Official Statement. A Preliminary Official Statement and a final
Official Statement, in substantially the form of the Official Statement relating to the 2010
Certificates of Participation, which such updates and revisions as hereafter approved by the
Mayor, the Town Manager or the Finance Director, and as hereafter presented to the Town
Council and on file with the Town, is in all respects approved and authorized. The Mayor is
hereby authorized and directed, for and on behalf of the Town, to execute and deliver the final
Official Statement in substantially the form and with substantially the same content as the
Preliminary Official Statement, with such changes as may be approved by the Town Manager or
the Finance Director. The distribution of the Preliminary Official Statement and the final
Official Statement to all interested persons in connection with the sale of the 2014A Certificates
is hereby ratified, approved and authorized.
Section 7. Authorization to Execute Collateral Documents. No provision of this
ordinance, the Site Lease, the Lease, the Indenture, or the 2014A Certificates, shall be construed
as creating or constituting a general obligation or other indebtedness or multiple fiscal year
financial obligation of the Town within the meaning of any constitutional, statutory or home rule
Ord. No. 14 -17 Approving Certificates of Participation
September 23, 2014
Page 4 of 11
charter provision, nor a mandatory charge or requirement against the Town in any ensuing fiscal
year beyond the then current fiscal year. The Town shall have no obligation to make any
payment with respect to the 2014A Certificates except in connection with the payment of the
Base Rentals (as defined in the Lease) and certain other payments under the Lease, which
payments may be terminated by the Town in accordance with the provisions of the Lease.
Neither the Lease nor the 2014A Certificates shall constitute a mandatory charge or requirement
of the Town in any ensuing fiscal year beyond the then current fiscal year or constitute or give
rise to a general obligation or other indebtedness or multiple fiscal year financial obligation of
the Town within the meaning of any constitutional, statutory or Charter debt limitation and shall
not constitute a multiple fiscal year direct or indirect debt or other financial obligation
whatsoever. No provision of the Site Lease, the Lease or the 2014A Certificates shall be
construed or interpreted as creating an unlawful delegation of governmental powers nor as a
donation by or a lending of the credit of the Town within the meaning of Sections 1 or 2 of
Article XI of the Colorado Constitution. Neither the Lease nor the 2014A Certificates shall
directly or indirectly obligate the Town to make any payments beyond those budgeted and
appropriated for the Town's then current fiscal year.
Section 8. No General Obligation Debt. No provision of this Ordinance, the Site Lease,
the Lease, the Indenture, the 2014A Certificates, the Preliminary Official Statement, or the final
Official Statement shall be construed as creating or constituting a general obligation or other
indebtedness or multiple fiscal year financial obligation of the Town within the meaning of any
constitutional, statutory or Charter provision, nor a mandatory charge or requirement against the
Town in any ensuing fiscal year beyond the then current fiscal year. The Town shall have no
obligation to make any payment with respect to the 2014A Certificates except in connection with
the payment of the Base Rentals (as defined in the Lease) and certain other payments under the
Lease, which payments may be terminated by the Town in accordance with the provisions of the
Lease. Neither the Lease nor the 2014A Certificates shall constitute a mandatory charge or
requirement of the Town in any ensuing fiscal year beyond the then current fiscal year or
constitute or give rise to a general obligation or other indebtedness or multiple fiscal year
financial obligation of the Town within the meaning of any constitutional, statutory or Charter
debt limitation and shall not constitute a multiple fiscal year direct or indirect debt or other
financial obligation whatsoever. No provision of the Site Lease, the Lease or the 2014A
Certificates shall be construed or interpreted as creating an unlawful delegation of governmental
powers nor as a donation by or a lending of the credit of the Town within the meaning of
Sections 1 or 2 of Article XI of the Colorado Constitution. Neither the Lease nor the 2014A
Certificates shall directly or indirectly obligate the Town to make any payments beyond those
budgeted and appropriated for the Town's then current fiscal year.
Section 9. Reasonableness of Rentals. The Town Council hereby determines and declares
that the Base Rentals due under the Lease, in the maximum amounts authorized pursuant to
Section 3 hereof, constitute the fair rental value of the Leased Property and do not exceed a
reasonable amount so as to place the Town under an economic compulsion to renew the Lease or
to exercise its option to purchase the Trustee's leasehold interest in the Leased Property pursuant
to the Lease. The Town Council hereby determines and declares that the period during which
the Town has an option to purchase the Trustee's leasehold interest in the Leased Property (i.e.,
the entire maximum term of the Lease) does not exceed the useful life of the Leased Property.
Ord. No. 14 -17 Approving Certificates of Participation
September 23, 2014
Page 5 of 11
The Town Council hereby further determines that the amount of rental payments to be received
by the Town from the Trustee pursuant to the Site Lease is reasonable consideration for the
leasing of the Leased Property to the Trustee for the term of the Site Lease as provided therein.
Section 10. No Recourse against Officers and Agents. Pursuant to § 11 -57 -209 of the
Supplemental Act, if a member of the Town Council, or any officer or agent of the Town acts in
good faith, no civil recourse shall be available against such member, officer, or agent for
payment of the principal, interest or prior redemption premiums on the 2014A Certificates. Such
recourse shall not be available either directly or indirectly through the Town Council or the
Town, or otherwise, whether by virtue of any constitution, statute, rule of law, enforcement of
penalty, or otherwise. By the acceptance of the 2014A Certificates and as a part of the
consideration of their sale or purchase, any person purchasing or selling such 2014A Certificate
specifically waives any such recourse.
Section 11. Repealer. All bylaws, orders, resolutions and ordinances, or parts thereof,
inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer
shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof,
heretofore repealed.
Section 12. Severability. If any provision of this Ordinance, or the application of such
provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall
not affect other provisions or applications of this Ordinance which can be given effect without
the invalid provision or application, and to this end the provisions of this Ordinance are declared
to be severable. The Town Council hereby declares that it would have passed this Ordinance and
each provision thereof, even though any one of the provisions might be declared unconstitutional
or invalid. As used in this Section, the term "provision" means and includes any part, division,
subdivision, section, subsection, sentence, clause or phrase; the term "application" means and
includes an application of an ordinance or any part thereof, whether considered or construed
alone or together with another ordinance or ordinances, or part thereof, of the Town.
Section 13. Interpretation. This Ordinance shall be so interpreted and construed as to
effectuate its general purpose.
Section 14. Charter Controls. Pursuant to Article XX of the State Constitution and the
Charter, all State statutes that might otherwise apply in connection with the provisions of this
Ordinance are hereby superseded to the extent of any inconsistencies or conflicts between the
provisions of this Ordinance and the Sale Certificate authorized hereby and such statutes. Any
such inconsistency or conflict is intended by the Town Council and shall be deemed made
pursuant to the authority of Article XX of the State Constitution and the Charter.
Section 15. Effective Date, Recording, and Authentication. This Ordinance shall be in full
force and effect thirty days after the date of final passage in accordance with Section 6.4 of the
Charter. This Ordinance shall be numbered and recorded in the official records of the Town kept
for that purpose, and shall be authenticated by the signatures of the Mayor and Mayor Pro -Tem
and Town Clerk, and published in accordance with law.
Ord. No. 14 -17 Approving Certificates of Participation
September 23, 2014
Page 6 of 11
Section 16. Safety Clause. The Town Council hereby finds, determines and declares that this
Ordinance is promulgated under the general police power of the Town, 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 17. Publication. The Town Clerk is ordered to publish this Ordinance in full after
adoption on first reading, and such publication shall include the day, hour and place at which
Council shall hold a public hearing on said ordinance. The Ordinance shall be published in full
after final passage pursuant to the Charter.
INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED PUBLISHED
IN FULL AND REFERRED TO PUBLIC HEARING, and setting such public hearing for
October 14, 2014, at 5:30 p.m., at the Council Chambers of the Avon Municipal Building,
located at One Lake Street, Avon, Colorado, on September 23, 2014.
ATTEST:
Debbie Hoppe, Town Clerk
TOWN OF AVON, CO
Rich Carroll, Mayor
APPROVED AS TO FORM:
Eric J. Heil, Town Attorney
INTRODUCED, FINALLY APPROVED, PASSED ON SECOND READING, AND
ORDERED PUBLISHED IN FULL on October 14, 2014.
Rich Carroll, Mayor
ATTEST:
Debbie Hoppe, Town Clerk
Ord. No. 14 -17 Approving Certificates of Participation
September 23, 2014
Page 7 of 11
Section 16. Safety Clause. The Town Council hereby finds, determines and declares that this
Ordinance is promulgated under the general police power of the Town, 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 17. Pp. licatiott. The Town Clerk is ordered to publish this Ordinance in full after
adoption on first reading, and such publication shall include the day, hour and place at which
Council shall hold a public hearing on said ordinance The Ordinance shall be published in full
after final passage pursuant to the Charter.
INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED PUBLISHED
IN FULL AND REFERRED TO PUBLIC HEARING, and setting such public hearing for
October 14, 2014, at 5:30 p.m., at the Council Chambers of the Avon Municipal Building,
located at One Lake Street, Avon, Colorado, on September 23, 2014.
:TOWN OF AVON, CO
Rich Carroll, Mayor
ATTEST APPRO D AS TO FORM:
Debbie Town Clerk Eric J. Hei n Attorney
INTRODUCED, FINALLY APPROVED, PASSED ON SECOND READING, AND
ORDERED PUBLISHED IN FULL on October 14, 2014.
Rich Carroll, Mayor
ATTE*,cSToppc, 4Tn PClerk :
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serteftYtr 23, 2011
Pate 7 of It
STATE OF COLORADO )
COUNTY OF EAGLE ) SS.
TOWN OF AVON )
I, Debbie Hoppe, the Town Clerk of the Town of Avon, Colorado (the "Town "),
do hereby certify:
I, the duly elected, qualified, and acting Town Clerk of the Town of Avon,
Colorado (the "Town "), do hereby certify that:
(1) The foregoing pages are a true, correct and complete copy of an ordinance
(the "Ordinance ") that was introduced, approved on first reading and ordered published in full in
accordance with the Town Charter (the "Charter ") by the Town Council at a regular meeting
thereof held on September 23, 2014, and was introduced, approved on second and final reading,
and ordered published in full in accordance with the Charter on October 14, 2014, which
Ordinance has not been revoked, rescinded or repealed and is in full force and effect on the date
hereof.
(2) The Ordinance was duly moved and seconded, and the Ordinance was
approved on first reading, at the meeting of September 23, 2014, by an affirmative vote of a
majority of the membership of the entire Town Council as follows:
Councilmember
Voting "Yes"
Voting "No"
Absent
Abstaining
Rich Carroll
Jennie Fancher
David Dantas
Chris Evans
Matt Gennett
Buz Reynolds
Jake Wolf
(3) The Ordinance was duly moved and seconded, and the Ordinance was
approved on second and final reading, at the meeting of October 14, 2014, by an affirmative vote
of a majority of the membership of the entire Town Council as follows:
Ord. No. 14 -17 Approving Certificates of Participation
September 23, 2014
Page 1 of 11
Councilmember
Voting "Yes"
Voting "No"
Absent
Abstaining
Rich Carroll
Jennie Fancher
David Dantas
v
Chris Evans
Matt Gennett
Buz Reynolds
Jake Wolf
l�
(4) The members of the Town Council were present at such meetings and
voted on the passage of such Ordinance as set forth above.
(5) The Ordinance was authenticated by the signature of the Mayor, sealed
with the Town seal, attested by the Town Clerk, and recorded in the minutes of the Town
Council.
(6) There are no bylaws, rules or regulations of the Town Council that might
prohibit the adoption of the Ordinance.
(7) Notices of the meetings of September 23, 2014, and October 14, 2014, in
the forms attached hereto as Exhibit A were posted at the Town Hall not less than 24 hours prior
to each meeting in accordance with law.
(8) On SeptemberzZ 2014, and October 14, 2014, the Ordinance was
published in full in the Vail Daily, a newspaper of general circulation in the Town, in accordance
with the Charter. Affidavits of publication are attached hereto as Exhibit B.
S my hand and the seal of the Town affixed this I q day of October, 2014.
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Ord. No. 14 -17 Approving Certificates of Participation
September 23, 2014
Page 2 of 11
To n Clerk
EXHIBIT A
(Attach Notices of Meetings of September 23, 2014 and October 14, 2014)
FMII
EXHIBIT B
(Affidavits of Publication)