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TC Packet 10-24-2017TOWN OF AVON, COLORADO TOWN OF AVON MEETINGS FOR TUESDAY, OCTOBER 24, 2017 AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 5:05 PM AVON TOWN HALL, ONE LAKE STREET _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 1 AVON LIQUOR LICENSING AUTHORITY MEETING BEGINS AT 5:00 PM (SEE SEPARATE AGENDA PAGE 3) AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 5:05 PM (SEE AGENDA BELOW) 1.CALL TO ORDER & ROLL CALL 2.APPROVAL OF AGENDA 3.MEETING PROCEDURES FOR THE MEETING OF OCTOBER 10, 2017 ACTION ITEMS •PRESENTATION OF ITEM •PUBLIC COMMENT – THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK, UNLESS MAJORITY OF COUNCIL AGREES TO A LONGER TIME •COUNCIL DISCUSSION •MOTION •COUNCIL DISCUSSION •VOTE WORK SESSION AND PRESENTATIONS •PRESENTATION OF ITEM •COUNCIL DISCUSSION •PUBLIC COMMENT – THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK, UNLESS MAJORITY OF COUNCIL AGREES TO A LONGER TIME •COUNCIL DIRECTION 4.PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA* THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK, UNLESS MAJORITY OF COUNCIL AGREES TO A LONGER TIME (5 MINUTES) 5.PRESENTATION 5.1. UPDATE ON EAGLE COUNTY TRANSIT DEVELOPMENT PLAN (GEOFF SLATER, CHRIS LUBBERS) (60 MINUTES) 6.ACTION ITEMS 6.1. PUBLIC HEARING SECOND READING OF ORDINANCE 17-15 FOR CAPITAL LEASE PURCHASE (ASSISTANT TOWN MANAGER SCOTT WRIGHT) (5 MINUTES) 6.2. CONSENT AGENDA (5 MINUTES) 6.2.1. APPROVAL OF RESOLUTION 17- 23 THE FIRST AMENDMENT TO WET WELL EASEMENT AGREEMENT (TOWN ENGINEER JUSTIN HILDRETH) 6.2.2. APPROVAL OF A BILL OF SALE FOR THE AVON PUBLIC SAFETY FACILITY SEWER MAIN (TOWN ENGINEER JUSTIN HILDRETH) 6.2.3. APPROVAL OF MINUTES FROM OCTOBER 10, 2017 COUNCIL MEETING (DEPUTY TOWN MANAGER PRESTON NEILL) 7.WORK SESSION 7.1. BUDGET WORK SESSION FOR THE FOLLOWING TOWN FUNDS: GENERAL, TRANSIT, FLEET AND EQUIPMENT REPLACEMENT (ASSISTANT TOWN MANAGER SCOTT WRIGHT) (60 MINUTES) TOWN OF AVON, COLORADO TOWN OF AVON MEETINGS FOR TUESDAY, OCTOBER 24, 2017 AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM AVON TOWN COUNCIL REGULAR MEETING BEGINS AT 5:05 PM AVON TOWN HALL, ONE LAKE STREET _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 2 8. WRITTEN REPORTS 8.1. ADOPTION OF ORDINANCE 17-08 8.2. SUMMARY OF UPPER EAGLE REGIONAL WATER AUTHORITY SEPTEMBER 28, 2017, REGULAR BOARD MEETING 8.3. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT MARTHA ANDERSON) 9. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (20 MINUTES) 10. ADJOURNMENT ______________________________________________________________________________________________________________________________________________________________________________________________ *Public Comments: Council agendas shall include a general item labeled “Public Comment” near the beginning of all Council meetings. Members of the public who wish to provide comments to Council greater than three minutes are encouraged to schedule time in advance on the agenda and to provide written comments and other appropriate materials to the Council in advance of the Council meeting. The Mayor shall permit public comments for any action item or work session item, and may permit public comment for any other agenda item, and may limit such public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. Article VI. Public Comments, Avon Town Council Simplified Rules of Order, Adopted by Resolution No. 17-05. TOWN OF AVON MEETINGS FOR TUESDAY, OCTOBER 24, 2017 AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM AVON TOWN HALL, ONE LAKE STREET _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK DEBBIE HOPPE AT 970-748-4001 OR EMAIL DHOPPE@AVON.ORG WITH ANY SPECIAL REQUESTS. 3 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA 4. RENEWAL OF LIQUOR LICENSES 4.1. APPLICANT: NOVA ENTERTAINMENT, LLC D/B/A LOADED JOE’S LOCATION: 82 E. BEAVER CREEK BLVD. #14 TYPE: HOTEL AND RESTAURANT MANAGER: KENT BEIDEL 4.2. APPLICANT: AVON PROPERTIES LEASING, LLC D/B/A VILLAGE WAREHOUSE WINES LOCATION: 101 FAWCETT ROAD TYPE: RETAIL LIQUOR STORE MANAGER: PETER CUCCIA 5. REPORT OF CHANGE – CHANGE OF MANAGER 5.1. APPLICANT: Y&Z, INC. D/B/A NOZAWA SUSHI & KITCHEN LOCATION: 240 CHAPEL PLACE MANAGER: ASHLEY MUELLER 6. MINUTES FROM OCTOBER 10, 2017 7. ADJOURNMENT      TOWN OF AVON, COLORADO  AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, OCTOBER 10, 2017  AVON TOWN HALL, ONE LAKE STREET    Page 1  1. CALL TO ORDER AND ROLL CALL  Chairwoman Fancher called the meeting to order at 5:01 p.m.  A roll call was taken and Board members  present were Sarah Smith Hymes, Scott Prince and Megan Burch.  Jake Wolf arrived at 5:02. Matt  Gennett and Amy Phillips were absent.  Also present were Town Manager Virginia Egger, Town Attorney  Eric Heil, Police Chief Greg Daly, Deputy Town Manager Preston Neill and Secretary Brenda Torres.  2. APPROVAL OF AGENDA   There were no changes to the agenda.     3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON TOPICS NOT ON THE AGENDA    No public comments were made.    4. PUBLIC HEARING SPECIAL EVENT PERMIT  Start time: 00:01:18  4.1. Applicant Name: First Descents  Event Name: Man of the Cliff  Event Dates: October 14 & 15, 2017  Event Time: 9:00 a.m. until 5:00 p.m.  Location: Nottingham Park  Event Manager: Adam Williams  Permit Type: Malt, Vinous & Spirituous Liquor  The application was presented with no concerns.    Board member Burch moved to approve the renewal  application for this Special Event.  Board member Wolf seconded the motion and it passed unanimously  by those present.  Board member Gennett and Board member Phillips were  absent.     5. RENEWAL OF LIQUOR LICENSES   Start time: 00:02:22  5.1.  Applicant Name: Northside Coffee & Kitchen, LLC d/b/a Northside Coffee & Kitchen  Location: 20 Nottingham Road Unit #A & C  Type: Hotel and Restaurant  Manager: Jim Pavelich  The application was presented with no concerns.  Jim Pavelich was present to answer any questions.   Board member Burch moved to approve the renewal application.  Board member Wolf seconded the  motion and it passed unanimously by those present. Board member Gennett and Board member Phillips  were  absent.       5. REPORT OF CHANGE – MODIFICATION OF PREMISES  Start time: 00:03:43  6.1.   Applicant Name: Northside Coffee & Kitchen, LLC d/b/a Northside Coffee & Kitchen  Location: 20 Nottingham Road Unit #A & C  Manager: Jim Pavelich  The application was presented with no concerns.  Vice Chairwoman Smith Hymes moved to approve the  renewal application.  Board member Scott seconded the motion and it passed unanimously by those  present. Board member Gennett and Board member Phillips were  absent.             TOWN OF AVON, COLORADO  AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, OCTOBER 10, 2017  AVON TOWN HALL, ONE LAKE STREET    Page 2  6. MINUTES FROM OCTOBER 10, 2017  Start time: 00:04:54  Vice Chairwoman Smith Hymes moved to approve the minutes from the September 26, 2017, Liquor  Authority meeting.  Board member Burch seconded the motion and it passed unanimously by those  present.  Board member Gennett and Board member Phillips were  absent.    7. ADJOURNMENT   There being no further business to come before the Board, Chairwoman Fancher moved to adjourn the  liquor meeting.  The time was 5:07 p.m.      RESPECTFULLY SUBMITTED:                          ____________________________________          Brenda Torres, Secretary    APPROVED:  Jennie Fancher    ______________________________________    Sarah Smith Hymes  ______________________________________    Jake Wolf     ______________________________________    Megan Burch    ______________________________________    Matt Gennett      ______________________________________    Scott Prince    ______________________________________    Amy Phillips    ______________________________________  TOWN COUNCIL REPORT  To:  Honorable Mayor Jennie Fancher and Avon Town Council  From:  Preston Neill, Deputy Town Manager  Date:  October 24, 2017  Topic:  UPDATE ON EAGLE COUNTY TRANSIT DEVELOPMENT PLAN  ACTION BEFORE COUNCIL:    No action is required.  The work session is seeking your input and discussion only.   PRESENTATION:  Chris Lubbers, Director of Transit and Fleet Services for Eagle County, and Geoff Slater and Gretchen  Johnson from Nelson\Nygaard, will attend Tuesday’s meeting to provide an update on Eagle  County’s Transit Development Plan Project.   Anticipated presentation items include:  Project overview Summary of public outreach to date Review of existing conditions, market analysis and route profiles Next steps Questions, Discussion and Input ATTACHMENT:  Eagle Co. Transit Development Plan Update  Eagle Co. Transit Development Plan Update October 2017 Community Presentations Agenda Study Goals and Timeline Existing Transit in Eagle County ECO Transit Today Service Offered Who Rides ECO Transit? Demand for Transit Recent Performance Trends What Stakeholders Want Potential Service Improvements 2 Study Goals and Timeline 3 Goals Improve service Better service for existing riders Attract new riders Serve new areas, if appropriate Improve integration with other Eagle County transit providers Make service easier to use 4 Study Scope and Timeline 5 thru Summer 2017 Summer 2017 Fall 2017 Early Winter 2017 Winter 2018 Winter/Spring 2018 Existing Transit in Eagle County 6 Eagle County Transit Providers Five transit providers in the I-70 corridor ECO Transit: Regional service Avon Transit: Local service in the Town of Avon Beaver Creek Transit: Local service in Beaver Creek and Bachelor Gulch Vail Transit: Local service within the Town of Vail CDOT: Bustang service between Glenwood Springs and Denver with stops at the Vail Transportation Center and the Eagle Chambers Park-and-Ride 7 ECO Transit Today 8 Winter Service Five routes: •Valley: Combination of local and express service between Dotsero and Vail •Highway 6: Edwards to Vail via Avon and EagleVail. •Leadville: Peak period service between Leadville and Vail •Minturn: Peak period service between Minturn and Vail •Vail-Beaver Creek Express: Period express service between Vail and Beaver Creek via Avon 9 Off-season Service Four routes: •Valley •Highway 6 •Leadville •Minturn Same alignments as in the winter Similar spans of service but less frequent on the Valley and Highway 6 routes 10 Local Service Avon Transit: •Major connections to ECO Transit at Avon Station and Elk Lot •Other ECO Transit connections available at Beaver Creek Village, Bear Lot, and other local stops Beaver Creek Transit: •Connections to ECO Transit and Avon Transit primarily at Elk Lot, Bear Lot, and Beaver Creek Village 11 Ridership 58% of ridership in winter; 42% rest of year Three-fifths of ridership is on over just two-fifths of service days 12 Route Winter 2016/17 Off-season 2016 Highway 6 377,131 280,523 Valley/Western Circulator 153,359 98,590 Leadville 10,890 12,070 Minturn 3,314 2,228 Vail/Beaver Creek Express 6,377 - Who Rides ECO Transit? Typical Winter Rider 80%employed full-or part-time 81%earn less than $75,000 85%are full-or part-time residents 84%use transit at least several times per week Typical Off-season Rider 82%employed full-or part-time 94%make less than $75,000 87%are full-or part-time residents 88%use transit at least several times per week 13 Reasons for Riding ECO Transit 14 48% 5% 16% 13% 9% 4% 5% 33% 18% 17% 13% 7% 4% 8% I do not own a car Parking is not available or expensive at my destination Taking the bus is more affordable than buying gas I am doing my part for the environment I cannot drive for health or legal reasons I prefer to spend time on activities other than driving Other WinterOff-season Don’t Own Car Parking Not Available More Affordable For the Environment Can’t Drive To Do Other Things Other Reasons for Not Riding ECO Transit 15 32% 1% 8% 10% 30% 37% 38% 38% Other Makes me feel uncomfortable or unsafe I bike or walk most places Hard to understand where I need to go Can't get where I need to go Takes too long Doesn't run at the right times I need a car for work or errandsNeed Car for Work or Errands Doesn’t Run When I Need to Travel Does Go to Where I Need to Go Too Hard to Understand I Walk or Bike Instead Makes Me Uncomfortable Other Demand for Transit 16 Population and employment densities are the strongest indicators of transit demand. Where larger numbers of people live and/or work in close proximity, transit demand is higher. Also: •Socio-economic characteristics –for example, income, auto availability, minority status, disability status, and age •Land uses and the location of major activity centers •Travel flows Underlying Demand for Transit 17 Highest demand: Edwards Eagle River Village Mobile Home Park Intersection of US 6 and Edwards Access Rd Residential areas west of Berry Creek School Avon Between I-70 and US 6 west of Avon Rd Along US 6 east of Avon Rd At and around Walmart Beaver Creek Village Most areas served by Highway 6 or Vail/Beaver Creek Express route 18 Population and Employment: Edwards and Avon 19 Work trips (all modes) heavily concentrated in I-70/US 6 corridor Highest volumes: Gypsum –Eagle Eagle –Avon Edwards –Vail Avon –Vail 2,500 daily year-round work trips to Vail 1,100 from Avon 900 from Edwards Travel Flows: I-70 Corridor ECO Transit Performance 20 Ridership is Increasing Increasing since the end of the Recession Up 45% since 2010 Annual ridership in 2016 was nearly 920,000 21 0.0 0.2 0.4 0.6 0.8 1.0 2009 2010 2011 2012 2013 2014 2015 2016Millions ECO Transit Has Been Increasing Service 22 Up 20% since 2009 Up 11% since 2009 Annual Revenue Miles Annual Revenue Hours 0.0 0.5 1.0 1.5 2.0 2009 2010 2011 2012 2013 2014 2015 2016Millions 0.0 20.0 40.0 60.0 80.0 2009 2010 2011 2012 2013 2014 2015 2016Thousands Operating Costs Operating costs have increased by only 2% since 2009 23 $7.5 $6.3 $6.2 $6.6 $6.7 $6.8 $7.2 $7.7 $0 $2 $4 $6 $8 $10 2009 2010 2011 2012 2013 2014 2015 2016Millions What Stakeholders Want 24 Stakeholders Have engaged a broad range of stakeholders through one-on-one interviews, advisory committee meetings, and surveys 25 Perception of Transit Transit is generally good, but could/should be better Desires for better transit driven by a number of factors, but primarily: Better access to jobs without driving Compete better with Summit, Pitkin, and other counties Many believe that the county has an appetite for a much more robust system 26 Key Areas for Improvement Provide faster and longer service Operate service more frequently Provide better off-season service Develop a more robust county-wide transit system 27 Improve collaboration between county transit operators Provide better information Use transit to compete more effectively for visitors (Currently, 85% of ECO riders are full-or part-time residents, 15% are visitors.) Reduce fares Potential Service Improvements 28 Service Simpler, better defined services, especially in western Valley For example, separate Valley Local and Valley Express routes More frequent service Later service More robust off-season service More seamless connections between different providers 29 Information and Collaboration Better collaboration between providers to develop a more seamless regional system More legible information on all available services Transit information through a single source App-based schedule and real-time information 30 Branding, Marketing, and Fares Regional marketing Similar, but unique, branding Free fare for local trips (for consistency with other providers) 31 32 eaglecountytransit.com What changes and improvements would you like to see? Demand for Transit –Supplemental Maps 33 Population and Employment: Gypsum & Eagle Highest demand: Gypsum A few scattered areas Eagle Downtown/around county offices Multi-family housing along Nogal Road Dense single family housing along Sylvan Lake Road Most high demand areas served by Valley route except: Nogal Road Sylvan Lake Road 34 Very high demand in Vail: All areas south of I-70 east of Lionshead and west of the Vail Golf Club West Vail Except for West Vail, relatively low other places north of I-70 Moderate to low demand in Minturn: Development is concentrated, but community size is small ECO Transit: Serves all areas with highest demand Provides limited service to Minturn 35 Population and Employment: Vail & Minturn Leadville has moderate demand Highest demand along US 24 ECO Transit provides limited service to Leadville 36 Population and Employment: Leadville Low work trip volumes: 125 from Minturn to Vail 90 from Leadville to Vail 37 Travel Flows: Leadville and Minturn Page 1 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Scott Wright, Asst. Town Manager Meeting Date: October 10, 2017 Re: Ordinance No. 17-15, Clayton Holdings LLC State & Municipal Lease/Purchase Agreement; Lease Number: 5000218-001 Action Before Council This is a public hearing and second reading of an ordinance adopting a Clayton Holdings LLC State & Municipal Lease/Purchase Agreement; Lease Number: 5000218-001, for the financing of the purchase of an Altec AT200A lift truck for the Town Electrician, and 2018 Kenworth T800H plow truck. First reading passed on a vote of 4-2 with one councilor abstaining. Proposed Motion “Motion to approve Ordinance 17-15, an ordinance authorizing the execution and delivery of a state and municipal lease/purchase agreement dated October 5, 2017 between the Town of Avon and Clayton Holdings LLC to purchase a lift truck and plow truck pursuant to Exhibit A of such agreement.” Summary Capital lease purchases are a capital financing tool that lessen the burden of an initial purchase of capital equipment and spreads the cost out over the estimated useful life of the asset. The lift truck was included in the original 2017 budget in Buildings and Facilities for $60,000. The final revised budget will reflect the purchase price of $80,204. The plow truck is a replacement for plow truck #111, an International plow truck originally purchased via a lease purchase in 1999. The plow truck was included in the original 2017 budget in Equipment Replacement for $185,000. The final revised budget will reflect the actual purchase price of $275,613. The reason for the higher cost due primarily to federal mandates for manufacturers’ to meet Tier 2 federal emission standards. The emission standards adds a DEF tank, delivery system, and exhaust after-treatment regenerative burning mufflers. In addition, staff requested that the plow truck be fitted with an additional wing to be able to plow the Metcalf Rd. bike lane (and other bike lanes in one pass. It should be noted that the plow truck is utilized as a dump truck in the summer months.  Page 2 The amount of the lease is $355,817.62 ($352,060 on the proposal) to be amortized over a term of seven (7) years with annual payments of $55,486.41 at an interest rate of 2.24%. The amount of the lease changed slightly subsequent to receiving the proposals due to final pricing of the equipment. Requests for quotes were sent to four different financing entities. The Town received two quotes back that met our terms for the financing. Clayton Holding’s interest rate was the lowest received. As a side note, Clayton Holdings is an equity subsidiary of Commerce Bank. The Town has used Commerce Bank previously for capital lease/purchase financings, the most recent in 2013. Attachments: A – Clayton Holdings LLC Bank Proposal and Terms B – Ordinance No. 17-15 C – Lease/Purchase Agreements and Documents 8000 Forsyth Boulevard St. Louis, Missouri 63105-1797 (314) 746-3678 09/21/2017 Scott C. Wright Assistant Town Manager/Finance Director Town of Avon 1 Lake Street, P.O. Box 975 Avon, CO 81620 Dear Mr. Wright: On behalf of Clayton Holdings, LLC, we would like to offer the following lease-purchase proposal for your consideration: Type of Financing: A tax-exempt, State and Municipal Lease/ Purchase Agreement (the “Lease”). Lessor: Clayton Holdings, LLC – An equity subsidiary of Commerce Bank. Lessee: Town of Avon, CO Equipment: One (1) New Plow Truck One (1) New Lift Truck Total Finance Amount: $352,060.00 Commencement Date: 11/24/2017 Base Term: 7 years (84 months) Interest Rate: 2.24% fixed, rate locked until 10/20/2017 Payment Frequency: A. Annual/Arrears *The first payment is due one year after closing. B. Semiannual/Arrears *The first payment is due six months after closing. Payment Amount: A. Annual/Arrears - $54,900.44 (7 payments, first due one year after closing) B. Semiannual/Arrears - $27,310.46 (14 payments, (first due six months after closing) Documentation: Shall be provided by Lessor. Funding of the Lease is contingent, in part; upon receipt and review by Lessor of executed Lease documentation in form acceptable to Lessor and Lessee. Interest Rate Adjustment: The above quoted interest rate is based on a spread over the Seven (7) year Interest Rate Swap as quoted in the Federal Reserve Statistical Release H.15 (the “Index”). For Purposes of this proposal, the Seven (7) year interest rate swap as of 09/20/2017 is 2.04%. ATTACHMENT A In the event the transaction does not close by 10/20/2017, Lessor reserves the right, but has no obligation, to adjust the Interest Rate after 10/20/2017 based on changes in the Index between the Quote Date and the Commencement Date. The adjustment, if made, would preserve Lessor’s original lease investment assumption on a nominal pre-tax yield basis. The indexed or floating rate after 10/20/2017 would be calculated according to the following formula: Then Current Seven (7) year H15 Swap rate as published by the Federal Reserve plus # bps x .65 = Transaction Rate Example: Seven (7) year Swap Rate as of 09/20/2017 = 2.04% + 141 bps = 3.45% x .65 = 2.24% Interest will be computed on the basis of an Actual/360-day year and must be exempt from federal income taxation. Early purchase Option: In the event Lessee desires to prepay this lease, they may do so in whole, but not in part at a premium of the then current outstanding principal balance, calculated as follows; 3% in year (1), 2% in year (2), and 1% in each year thereafter until maturity. Provided however, that the Lessee is using internally generated funds to prepay the lease, the prepayment penalty would be waived and there would be no prepayment penalty on the agreement. General Terms: This financing structure, rate and payment are based on the Transaction being designated as Tax Exempt and Non-Bank Qualified under the IRC Section 103 and 265 b (3). The Lessee does intend to issue more than $10 million dollars in tax-exempt obligations in the current calendar year. Titles/Liens: Lessor shall have a perfected security interest in the Equipment. Titled equipment will require a 1st lien position on the MSO and Title. Non-appropriation: The Lease shall provide for Lessee to terminate the agreement at the end of any fiscal period if insufficient funds are available to make the scheduled Rental Payments due in the following fiscal period. Escrow: Upon closing, funds shall be disbursed into an escrow account to be maintained by Commerce Trust as escrow agent. Upon final delivery and acceptance of all of the equipment, and receipt of Lessee's authorization to release funds, escrow agent shall disburse payment to the vendors. Terms, conditions, and procedures regarding escrow and escrow agreement are subject to mutual approval by Lessee and Lessor. It is intended that the interest earnings on un-disbursed funds shall accrue for the benefit of Lessee. An escrow account shall be established at Commerce Trust. There is a $250.00 fee for the escrow account. This fee is not applicable if an escrow account is not required. Commerce Trust does assess a cash management fee which is deducted from the Escrow Earnings. Net Lease: The lease shall be a net lease in all respects, and Lessee shall be responsible for all fees, charges, assessments or other costs and expenses of every nature whatsoever arising from the lease of the Equipment. ATTACHMENT A Not a Commitment: The terms set forth herein reflect a proposed, preliminary structure and are subject to final credit approval by Clayton Holdings, LLC and the negotiation of mutually acceptable documentation. These terms are being provided to the Lessee with the understanding that neither the terms nor their substance shall constitute a definitive agreement or an exhaustive statement of all terms and conditions which may ultimately be included in a transaction among Lessee and Lessor. This is a proposal only and not a commitment to lend. Final approval and funding of the transaction is based on a formal credit review by Lessor, including final lease documentation acceptable to both Lessee and Lessor. This proposal is not intended to, and does not create, in any way, a legally binding or any other type of commitment or obligation on the part of Clayton Holdings, LLC, or any of its/their subsidiaries, and/or any of its/their employees. Information regarding this proposal, including the financial statements of Lessee necessary to complete the credit process, may be provided to third party funding sources in either written or electronic format. The representative shown below is “not” a Municipal advisor, financial advisor, agent or fiduciary to any person or entity. Clayton Holdings, LLC and its representatives are responding to an RFP issued by the Lessee. Lessee acknowledges that it is entitled to engage municipal advisory services should it elect to do so. Clayton Holdings, LLC is acting for its own loan account; this communication consists solely of general information under which Clayton Holdings, LLC may be willing to fund a loan. Thank you for the opportunity to offer this proposal. We appreciate your consideration and look forward to your favorable response. Should you have any questions, please do not hesitate to contact us. Respectfully submitted, Frank D. Hill Officer of Clayton Holdings, LLC Senior Vice President, Tax Exempt-Leasing & Finance Phone: 785-587-1541 frank.hill@commercebank.com ATTACHMENT A 9/22/2017 12:45 PM Page 1Town of Avon, CO Trucks - Annual Compound Period:Annual Nominal Annual Rate:2.240% CASH FLOW DATA Event Date Amount Number Period End Date 1 Loan 11/24/2017 352,060.00 1 2 Payment 11/24/2018 54,900.44 7 Annual 11/24/2024 AMORTIZATION SCHEDULE - Normal Amortization, 360 Day Year Date Payment Interest Principal Balance Loan 11/24/2017 352,060.00 2017 Totals 0.00 0.00 0.00 1 11/24/2018 54,900.44 7,886.14 47,014.30 305,045.70 2018 Totals 54,900.44 7,886.14 47,014.30 2 11/24/2019 54,900.44 6,833.02 48,067.42 256,978.28 2019 Totals 54,900.44 6,833.02 48,067.42 3 11/24/2020 54,900.44 5,756.31 49,144.13 207,834.15 2020 Totals 54,900.44 5,756.31 49,144.13 4 11/24/2021 54,900.44 4,655.48 50,244.96 157,589.19 2021 Totals 54,900.44 4,655.48 50,244.96 5 11/24/2022 54,900.44 3,530.00 51,370.44 106,218.75 2022 Totals 54,900.44 3,530.00 51,370.44 6 11/24/2023 54,900.44 2,379.30 52,521.14 53,697.61 2023 Totals 54,900.44 2,379.30 52,521.14 7 11/24/2024 54,900.44 1,202.83 53,697.61 0.00 2024 Totals 54,900.44 1,202.83 53,697.61 Grand Totals 384,303.08 32,243.08 352,060.00 ATTACHMENT A 9/22/2017 12:46 PM Page 1Town of Avon, CO Trucks - Semiannual Compound Period:Semiannual Nominal Annual Rate:2.240% CASH FLOW DATA Event Date Amount Number Period End Date 1 Loan 11/24/2017 352,060.00 1 2 Payment 5/24/2018 27,310.46 14 Semiannual 11/24/2024 AMORTIZATION SCHEDULE - Normal Amortization, 360 Day Year Date Payment Interest Principal Balance Loan 11/24/2017 352,060.00 2017 Totals 0.00 0.00 0.00 1 5/24/2018 27,310.46 3,943.07 23,367.39 328,692.61 2 11/24/2018 27,310.46 3,681.36 23,629.10 305,063.51 2018 Totals 54,620.92 7,624.43 46,996.49 3 5/24/2019 27,310.46 3,416.71 23,893.75 281,169.76 4 11/24/2019 27,310.46 3,149.10 24,161.36 257,008.40 2019 Totals 54,620.92 6,565.81 48,055.11 5 5/24/2020 27,310.46 2,878.49 24,431.97 232,576.43 6 11/24/2020 27,310.46 2,604.86 24,705.60 207,870.83 2020 Totals 54,620.92 5,483.35 49,137.57 7 5/24/2021 27,310.46 2,328.15 24,982.31 182,888.52 8 11/24/2021 27,310.46 2,048.35 25,262.11 157,626.41 2021 Totals 54,620.92 4,376.50 50,244.42 9 5/24/2022 27,310.46 1,765.42 25,545.04 132,081.37 10 11/24/2022 27,310.46 1,479.31 25,831.15 106,250.22 2022 Totals 54,620.92 3,244.73 51,376.19 11 5/24/2023 27,310.46 1,190.00 26,120.46 80,129.76 12 11/24/2023 27,310.46 897.45 26,413.01 53,716.75 2023 Totals 54,620.92 2,087.45 52,533.47 13 5/24/2024 27,310.46 601.63 26,708.83 27,007.92 14 11/24/2024 27,310.46 302.54 27,007.92 0.00 2024 Totals 54,620.92 904.17 53,716.75 Grand Totals 382,346.44 30,286.44 352,060.00 ATTACHMENT A 9/22/2017 12:46 PM Page 2 Last interest amount increased by 0.05 due to rounding. ATTACHMENT A Ordinance No. 17-15 Clayton Holdings LLC State & Municipal Lease/Purchase Agreement October 10, 2017 Page 1 of 4 TOWN OF AVON, COLORADO ORDINANCE NO. 17-15 SERIES OF 2017 AN ORDINANCE AUTHORIZING THE EXECUTION AND DELIVERY OF A STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT DATED OCTOBER 5, 2017 BETWEEN THE TOWN OF AVON AND CLAYTON HOLDINGS LLC TO PURCHASE A LIFT TRUCK AND PLOW TRUCK PURSUANT TO SCHEDULE A OF SUCH AGREEMENT Whereas, Town of Avon (“Lessee”), a body politic and corporate duly organized and existing as a home rule authority municipal corporation and body politic organized under the laws of the State of Colorado, is authorized by the laws of the State of Colorado and by Section 14.9(a) of the Avon Home Rule Charter to purchase, acquire and lease personal property for the benefit of the Lessee and its inhabitants and to enter into leasehold agreements with respect thereto; and Whereas, the Lessee desires to purchase, acquire and lease a 2018 Kenworth T800H Snowplow Truck, and a Altec AT200A Lift Truck (“Equipment”) constituting personal property necessary for the Lessee to perform essential governmental functions; and Whereas, the Avon Town Council finds that Schedule C to the Clayton Holdings LLC State & Municipal Lease/Purchase Agreement (the “Agreement”) allows the Town to acquire the Equipment within a period not exceeding the useful life of the Equipment; and Whereas, the Avon Town Council, as the governing body of the Lessee, deems it for the benefit of the Lessee and for the efficient and effective administration thereof to enter into the Agreement for the purchase, acquisition and leasing of the Equipment therein described on the terms and conditions therein provided. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. Approval of Documents. The Agreement and Exhibits as provided are hereby approved in substantially the form presented at this meeting, with such insertions, omissions and changes as shall be approved by the Mayor of the Town of Avon or other members of the governing body of the Town of Avon executing the same, the execution of such documents being conclusive evidence of such approval; and the Mayor of the Town of Avon is hereby authorized and directed to execute, and the Town Clerk of the Town of Avon is hereby authorized and directed to attest and countersign the Agreement and any related Exhibits attached thereto and to the respective parties thereto, and the Town Clerk of the Town of Avon is hereby authorized to affix the seal of the Town of Avon, as Lessee, to such documents. Capitalized terms in this Ordinance shall have the same meaning as defined in the Agreement unless such terms are otherwise defined in this Ordinance. Section 2. Other Actions Authorized. The officers and employees of the Lessee shall take ATTACHMENT B Ordinance No. 17-15 Clayton Holdings LLC State & Municipal Lease/Purchase Agreement October 10, 2017 Page 2 of 4 all action necessary or reasonably required by the parties to carry out, give effect to and consummate the transactions contemplated thereby including execution and delivery of the following document and to take all action necessary in conformity therewith, including, without limitation, the execution and delivery of any closing and other documents required to be delivered in connection with the Agreement, including the following documents: (A) Property Description (B) Delivery and Acceptance Certificate (C) Rental Payments and Lease Term (D) Opinion of Counsel (E) Lessee Certification (F) Essential Use/Source of Funds letter (G) Proof of Insurance (H) ACH Payment Authorization Form (I) Disbursement Letter (J) Form 8038-G (K) Escrow Agreement and Exhibits Section 3. No General Liability. Nothing contained in this Ordinance, Agreement nor any other instrument shall be construed with respect to the Lessee as incurring a pecuniary liability or charge upon the general credit of the Lessee or against its taxing power, nor shall the breach of any agreement contained in this Ordinance, the Agreement, or any other instrument or document executed in connection therewith impose any pecuniary liability upon the Lessee or any charge upon its general credit or against its taxing power, except to the extent that the Lease Payments payable under Exhibit C of the Agreement are special limited obligations of the Lessee as provided in such Exhibit. Section 4. Appointment of Authorized Lessee Representatives. The Town Manager and Finance Director of the Lessee are each hereby designated to act as authorized representatives of the Lessee for purposes of Exhibit C until such time as the Town Council of the Town of Avon, as Lessee, shall designate any other or different authorized representative. Section 5. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and ATTACHMENT B Ordinance No. 17-15 Clayton Holdings LLC State & Municipal Lease/Purchase Agreement October 10, 2017 Page 3 of 4 each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term “provision” means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term “application” means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 6. Effective Date. This Ordinance shall take effect thirty days after final adoption in accordance with Section 6.4 of the Avon Home Rule Charter. Section 7. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. Section 8. Publication by Posting. The Town Clerk is ordered to publish this Ordinance by posting notice of adoption of this Ordinance on final reading by title in at least three public places within the Town and posting at the office of the Town Clerk, which notice shall contain a statement that a copy of the ordinance in full is available for public inspection in the office of the Town Clerk during normal business hours. [SIGNATURE PAGE FOLLOWS] ATTACHMENT B Ordinance No. 17-15 Clayton Holdings LLC State & Municipal Lease/Purchase Agreement October 10, 2017 Page 4 of 4 INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED POSTED AND REFERRED TO PUBLIC HEARING and setting such public hearing for 5:30 on October 24, 2017 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado, on October 10, 2017. ____________________________ Jennie Fancher, Mayor Published by posting in at least three public places in Town and posting at the office of the Town Clerk at least seven days prior to final action by the Town Council. ATTEST: APPROVED AS TO FORM: ____________________________ ____________________________ Debbie Hoppe, Town Clerk Eric Heil, Town Attorney INTRODUCED, FINALLY APPROVED, AND PASSED ON SECOND READING, AND ORDERED PUBLISHED BY POSTING on October 24, 2017. ____________________________ Jennie Fancher, 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 ATTACHMENT B CLAYTON HOLDINGS, LLC STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease Number: 5000218-001 This State and Municipal Lease/Purchase Agreement (the "Lease") is made and entered into on this, the 5th day of October 2017 by and between Clayton Holdings, LLC with offices at 8000 Forsyth Boulevard, Suite 510, St. Louis, Missouri 63105 (herein called the "Lessor"), and Town of Avon, Colorado with its principal address at 1 Lake Street, Avon, CO 81620 (herein called the "Lessee"), wherein it is agreed as follows: 1. LEASE OF EQUIPMENT: Lessee hereby requests Lessor to acquire the equipment described in Schedule A attached hereto and made a parthereof. Subject to the terms and conditions hereof, Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor the equipmentdescribed in Schedule A, with all replacement parts, repairs, additions and accessories incorporated therein or affixed thereto (herein collectivelycalled the "Equipment"). 2. DELIVERY AND ACCEPTANCE: Lessee agrees to order the Equipment from the supplier of such Equipment, but will not be liable for specificperformance of this Lease or for damages if for any reason the supplier delays or fails to fill the order. Lessee will cause the Equipment to bedelivered at the location specified in Schedule A (the "Equipment Location"). Lessee will pay all transportation and other costs, if any, incurred inconnection with the delivery and installation of the Equipment. Any delay in such delivery will not affect the validity of this Lease. Lessee will accept the Equipment as soon as it has been delivered and is operational, or as soon as any manufacturer or vendor preacceptance test periodhas expired. Lessee will have no more than thirty (30) days from the date of delivery of the Equipment to accept such Equipment. In the eventthe Equipment is not accepted by Lessee within thirty (30) days from the date of its delivery, Lessor, at Lessor's sole option, will have the right toterminate this Lease. Lessee will evidence its acceptance of the Equipment by executing and delivering to Lessor a delivery and acceptancecertificate in the form of Schedule B attached hereto and made a part hereof (the "Acceptance Certificate"). Lessee hereby authorizes the Lessorto add to this Lease and to any other description of the Equipment the serial number of each item of Equipment when available. 3.TERM: This Lease will become effective upon the execution hereof by Lessee and Lessor. The initial term of this Lease will commence on theearlier of the date Lessee executes the Acceptance Certificate or the date funds sufficient to purchase the Equipment are deposited with a bankor trust company in an escrow fund (the "Start Date") and will extend through the end of Lessee's fiscal year containing the Start Date. Unlessearlier terminated as expressly provided for in this Lease, the term of this Lease will be automatically renewed on a year-to-year basis for the number of annual fiscal periods necessary to comprise the lease term as set forth in Schedule C attached hereto and made a part hereof (the"Lease Term"). 4.RENT: Lessee agrees to pay Lessor or any Assignee (as defined in Section 22 below), the rental payments for the Equipment as set forth inSchedule C (the "Rental Payments"). A portion of each Rental Payment is paid as and represents the payment of interest as set forth inSchedule C. The Rental Payments will be payable without notice or demand, at the office of Lessor (or such other place as Lessor or anyAssignee may designate in writing, from time to time) and will commence on the Start Date or as otherwise set forth in Schedule C, and the remaining Rental Payments will be payable on the same day of each consecutive month or quarter or semiannual or annual period thereafter (asdesignated in Schedule C) for the duration of the Lease Term. Any notice, invoicing, purchase orders, quotations or other forms or proceduresrequested by Lessee in connection with payment will be fully explained and provided to Lessor or any Assignee sufficiently in advance of thepayment due date for the completion thereof by Lessor or any Assignee prior to such payment date, but none of the foregoing will be a condition to Lessee's obligation to make any such payment. If Lessee fails to pay any monthly rental payment or any other sums under the Lease within ten(10) days when the same becomes due, Lessee shall pay to Lessor (in addition to and not in lieu of other rights of Lessor) a late charge equal tothe greater of five (5%) percent of such delinquent amount or Twenty-Five Dollars ($25.00), but in any event not more than the maximumpermitted by law. Such late charge shall be payable by Lessee upon demand by Lessor and shall be deemed rent hereunder. Lesseeacknowledges and agrees that the late charge (i) does not constitute interest, (ii) is an estimate of the costs Lessor will incur as a result of the latepayment and (iii) is reasonable in amount. Lessor and Lessee understand and intend that the obligation of Lessee to pay Rental Paymentshereunder will constitute a current expense of Lessee and will not in any way be construed to be a debt of Lessee in contravention of anyapplicable constitutional or statutory limitation or requirement concerning the creation of indebtedness by Lessee. EXCEPT AS SPECIFICALLYPROVIDED IN SECTION 8 HEREOF, THE RENTAL PAYMENTS SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS AND WILLNOT BE SUBJECT TO ANY SETOFF, DEFENSE, COUNTERCLAIM, ABATEMENT OR RECOUPMENT FOR ANY REASON WHATSOEVER. Notwithstanding the foregoing, in the event that Lessee, by its use of the Equipment or by its actions or omissions or by any means whatsoever,causes any interest payments as set forth in Schedule C to be included in Lessor's gross income, Lessee agrees that the interest portion of theRental Payments on Schedule C will be adjusted commencing with the first day of the next succeeding fiscal year of the Lessee, but only if thisLease is renewed for such fiscal year, and thereafter, so that Lessor, its Assignees and any participants with such, will be in the same after-taxposition they would have been in had such payment been excluded from the gross income of Lessor, its Assignees and any participants with suchunder Section 103 of the Code. 5. AUTHORITY AND AUTHORIZATION: Lessee represents, warrants and covenants that (a) it will do or cause to be done all things necessary to preserve and keep in full force and effect (i) its existence, and (ii) subject to Section 8 hereof, the Lease; (b) it has complied with all bidding andbudgeting requirements where necessary and by due notification has presented this Lease for approval and adoption as a valid obligation on itspart and that all requirements have been met and procedures have been followed to ensure the enforceability of the Lease; (c) it has sufficientappropriations or other funds available to pay all amounts due hereunder for the current fiscal year period; (d) no event has occurred and nocondition exists which, upon the execution of this Lease or with notice or the passage of time or both, would constitute a default under any debt,revenue or purchase obligation which it has issued or to which it is a party (the "Obligation") nor has it been in default under any Obligation at anytime during the past five (5) years, and (e) no lease, rental agreement or contract for purchase, to which Lessee has been a party, at any timeduring the past five (5) years, has been terminated by Lessee as a result of insufficient funds being appropriated in any fiscal period. ATTACHMENT C 6.LESSEE CERTIFICATION: Lessee warrants and covenants that (i) it is a state, or a political subdivision thereof, within the meaning of Section103 of the Internal Revenue Code of 1986, as amended (the "Code"), and the related regulations and rulings thereunder; (ii) subject to Section 8hereof, Lessee's obligation under this Lease constitutes an enforceable obligation issued by or on behalf of a state, or political subdivision thereof, such that any interest income derived under this Lease and due Lessor or its Assignee, including, but not limited to, those amounts designated asinterest in Schedule C, will not be includable in the gross income of Lessor, its Assignee or any participants with such for the purposes of federalincome taxation; (iii) this Lease represents a valid deferred payment obligation of Lessee for the amount herein set forth; (iv) Lessee has the legalcapacity to enter into this Lease and is not in contravention of any state, county, district, city or town statute, rule, regulation or other governmental provision; (v) during the Lease Term, the Equipment will not be used in a trade or business of any other person or entity; (vi)Lessee will complete and file on a timely basis, Internal Revenue Service form 8038G or 8038GC, as appropriate, in the manner set forth inSection 149(e) of the Code; and (vii) Lessee will not take any action or permit the omission of any action reasonably within its control which actionor omission will cause the interest portion of any Rental Payment hereunder to be includable in gross income for federal income taxationpurposes. 7. APPROPRIATIONS AND ESSENTIAL USE: Lessee reasonably believes that sufficient funds can be obtained to make all Rental Payments during the Lease Term. The responsible financial officer of Lessee will do all things lawfully within his or her power to obtain funds from which theRental Payments, including any Rental Payments required by Section 4 hereof, may be made, including making provisions for such payments, tothe extent necessary, in each proposed annual budget submitted for approval in accordance with applicable procedures of Lessee. Notwithstandingthe foregoing, the decision whether or not to budget or appropriate funds or to extend this Lease for any subsequent annual fiscal period is solely withinthe discretion of the then current governing body of Lessee. It is Lessee's current intent to make the Rental Payments for the full Lease Term iffunds are legally available therefore, and in that regard Lessee represents that (a) the use of the Equipment is essential to its proper, efficient,and economic functioning or to the services that it provides to its citizens; (b) Lessee has an immediate need for and expects to make immediateuse of substantially all the Equipment, which need is not temporary or expected to diminish in the foreseeable future; and (c) the Equipment willbe used by the Lessee only for the purpose of performing one or more of its governmental or proprietary functions consistent with the permissiblescope of its authority. 8.NONAPPROPRIATION OF FUNDS: In the event no funds or insufficient funds are appropriated and budgeted or otherwise made available forRental Payments, including any Rental Payments required by Section 4 hereof, for any fiscal period in which the Rental Payments for theEquipment are due under this Lease, then, without penalty, liability or expense to Lessee, this Lease will thereafter terminate and be rendered nulland void on the last day of the fiscal period for which appropriations were made, except as to (i) the portions of the Rental Payments hereinagreed upon for which funds have been appropriated and budgeted or are otherwise available and (ii) Lessee's other obligations and liabilitiesunder this Lease relating to, accruing or arising prior to such termination. Lessee will, not less than sixty (60) days prior to the end of suchapplicable fiscal period, in writing, notify Lessor and any Assignee of such occurrence, but failure to give such notice will not prevent suchtermination. In the event of such termination, Lessee agrees to peaceably surrender possession of the Equipment to Lessor or its Assignee onthe day of such termination, packed for shipment in accordance with manufacturer's specifications and eligible for manufacturer's maintenance,and freight prepaid and insured to any location in the continental United States designated by Lessor, all at Lessee's expense, Lessor or itsAssignee may exercise all available legal and equitable rights and remedies in retaking possession of the Equipment. 9. EXCLUSION OF WARRANTIES; LIMITATIONS OF LIABILITY; DISCLAIMER OF CONSEQUENTIAL DAMAGES: LESSEE HAS SELECTEDBOTH THE EQUIPMENT AND THE VENDOR(S) FROM WHOM LESSOR IS TO PURCHASE THE EQUIPMENT IN RELIANCE HEREON. LESSEE ACKNOWLEDGES AND AGREES THAT THE EQUIPMENT IS OF A SIZE, DESIGN AND CAPACITY SELECTED BY LESSEE, THATLESSOR IS NOT A MANUFACTURER, VENDOR, DISTRIBUTOR OR LICENSOR OF SUCH EQUIPMENT, AND THAT LESSOR LEASES THEEQUIPMENT AS IS AND HAS NOT MADE, AND DOES NOT HEREBY MAKE, ANY REPRESENTATION, WARRANTY OR COVENANT, EXPRESS OR IMPLIED, WITH RESPECT TO THE MERCHANTABILITY, CONDITION, QUALITY, DURABILITY, DESIGN, OPERATION,FITNESS FOR USE, OR SUITABILITY OF THE EQUIPMENT IN ANY RESPECT WHATSOEVER OR IN CONNECTION WITH OR FOR THE PURPOSES AND USES OF LESSEE, OR ANY OTHER REPRESENTATION, WARRANTY OR COVENANT OF ANY KIND OR CHARACTER,EXPRESS OR IMPLIED, WITH RESPECT THERETO INCLUDING ANY WARRANTIES OF TITLE OR AGAINST INFRINGEMENT OR ANYWARRANTIES ARISING FROM A COURSE OF DEALING, USAGE OR PRACTICE, ALL OF WHICH ARE SPECIFICALLY DISCLAIMED BY LESSOR AND IN NO EVENT SHALL LESSOR BE OBLIGATED OR LIABLE FOR ACTUAL, INCIDENTAL, CONSEQUENTIAL OR OTHERDAMAGES OF OR TO LESSEE OR ANY OTHER PERSON OR ENTITY ARISING OUT OF OR IN CONNECTION WITH THE EQUIPMENT, INCLUDING BUT NOT LIMITED TO THE SALE, LEASE, USE, PERFORMANCE OR MAINTENANCE OF THE EQUIPMENT, INCLUDINGINTERRUPTION OF SERVICE, LOSS OF DATA, LOSS OF REVENUE OR PROFIT, LOSS OF TIME OR BUSINESS, OR ANY SIMILAR LOSS,EVEN IF ANY SUCH PERSON IS ADVISED IN ADVANCE OF THE POSSIBILITY OR CERTAINTY OF SUCH DAMAGES AND EVEN IF LESSEE ASSERTS OR ESTABLISHES A FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY PROVIDED IN THIS LEASE. Lessee acknowledges that neither the original vendor nor licensor of the Equipment (including the salespersons of any of them) is an agent of Lessor, nor are they authorized to waive or alter any terms of this Lease. Lessee hereby waives any claim (including any claim based on strict or absolute liability in tort) it might have against Lessor or any assignee of the Lessor for any loss, damage or expense caused by or with respect to the Equipment. Lessor hereby assigns to Lessee during the Lease Term, to the extent permitted by law, all manufacturer's warranties, if any, that it may have with respect to the Equipment, and Lessor authorizes Lessee to obtain the customary services furnished in connection with such warranties at Lessee's expense. Lessor authorizes Lessee, to the extent permitted by law, to enforce in its own name any warranty, representation or other claim enforceable against the manufacturer. Lessor assumes no responsibility for shipment, delivery, installation or maintenances, and all claims of Lessee with respect thereto, whether for delay, damage or otherwise, will be made against the manufacturer. Lessor, at its option, may provide in its purchase order that the manufacturer agrees that any of such claims may be made by Lessee directly against the manufacturer. The obligation of Lessee to pay the Rental Payments as defined in Section 4 will not be abated, impaired or reduced by reason of any claims of Lessee with respect to the Equipment, including but not limited to its condition, quality, workmanship, delivery, shipment, installation, defects or otherwise. 10. TITLE, SECURITY INTEREST: Title to the Equipment is deemed to be in Lessee so long as no Event of Default pursuant to section 19 belowhas occurred and/or this Lease has not been terminated pursuant to the provisions of Section 8 above. Upon the earlier of (i) termination of thisLease in accordance with Section 8 above or (ii) the occurrence of an Event of Default by Lessee pursuant to Section 19 below, title will immediately revert to Lessor free of any right, title or interest of Lessee unless Lessor elects otherwise. In order to secure all of Lessee'sobligations hereunder, Lessee hereby (a) to the extent permitted by law, grants to Lessor a first and prior security interest in any and all rights,titles and interest of Lessee in the Lease, the Equipment and in all additions, attachments, accessions, accessories, replacements, improvementsand substitutions thereto, now or hereafter acquired, together will all rents, issues, income, profits and proceeds thereof, including insuranceproceeds; (b) agrees that financing statements evidencing such security interest may be filed; and (c) agrees to execute and deliver all certificatesof title and other instruments necessary or appropriate to evidence and perfect such security interest. Lessee further agrees that the UniformCommercial Code will apply as between the parties hereto and Assignees of Lessor. ATTACHMENT C 11.PERSONAL PROPERTY: The Equipment is, and will remain, personal property and will not be deemed to be affixed or attached to real propertyor any building thereon. If requested by Lessor, Lessee will, at Lessee's expense, furnish to Lessor landlord or mortgagee waiver with respect to the Equipment. 12.USE; REPAIRS: Lessee will use the Equipment in a careful manner for the use contemplated by the manufacturer of the Equipment and will comply with all laws, ordinances, insurance policies and regulations relating to, and will pay all costs, claims, damages, fees and charges arisingout of, its possession, use or maintenance. Lessee, at its sole costs and expense, will maintain the Equipment according to the manufacturer'srecommended guidelines or the equivalent and meet any and all recertification requirements and will furnish proof of such maintenance, ifrequested by Lessor and will furnish all needed servicing and parts, which parts will become part of the Equipment. If the Equipment is such as is customarily covered by a maintenance agreement, Lessee will furnish Lessor with a maintenance agreement with a party satisfactory to Lessor. 13.ALTERATIONS: Lessee will not make any alterations, additions or improvements to the Equipment without Lessor's prior written consent, and any permitted alteration or attachment which cannot be readily removed without damaging the Equipment's originally intended function or valuewill become part of the Equipment. 14.LOCATION; INSPECTION: The Equipment will not be removed from, or if the Equipment consists of rolling stock, its permanent base will not bechanged from the Equipment Location without Lessor's prior written consent, which consent will not be unreasonably withheld. Lessor will beentitled to enter upon the Equipment Location or elsewhere during reasonable business hours to inspect the Equipment or observe its use andoperations. 15. LIENS AND TAXES: Lessee will keep the Equipment free and clear of all levies, liens and encumbrances except those created under this Lease. Lessee will pay, when due, all charges and taxes (federal, state and local) which may now or hereafter be imposed upon the ownership, leasing,rental, sale, purchase, possession or use of the Equipment, excluding however, all taxes on or measured by Lessor's income. If Lessee fails topay said charges and taxes when due, Lessor will have the right, but will not be obligated, to pay said charges and taxes. If Lessor pays anycharges or taxes for which Lessee is responsible or liable under this Lease, Lessee will, upon demand, reimburse Lessor therefor. 16. RISK OF LOSS; DAMAGE; DESTRUCTION: Lessee assumes all risk of loss of or damage to the Equipment from any cause whatsoever, andno such loss of or damage to the Equipment will relieve Lessee of the obligation to make the Rental Payments or to perform any other obligation under this Lease. In the event of damage to any item of Equipment, Lessee will immediately place the same in good repair (the proceeds of anyinsurance recovery will be applied to the cost of such repair). If Lessor determines that any item of Equipment is lost, stolen, destroyed ordamaged beyond repair, Lessee, at the option of Lessor, will (a) replace the same with like equipment in good repair; or (b) on the next RentalPayment date pay to Lessor (i) all amounts owed by Lessee under this Lease, including the Rental Payment due on such date, and (ii) an amount not less than the balance of the Rental Payments then remaining unpaid hereunder. In the event that Lessee is obligated to make such paymentwith respect to less than all of the Equipment, Lessor will provide Lessee with the pro rata amount of the Rental Payment and the balance of theRental Payments then remaining unpaid hereunder, as applicable, to be made by Lessee with respect to the Equipment which has suffered theevent of loss. 17.INSURANCE: Lessee will, at its expense, maintain at all times during the Lease Term (a) fire and extended coverage, public liability and propertydamage insurance with respect to the Equipment in such amounts, covering such risks, and with such insurers as will be satisfactory to Lessor. In no event will the insurance limits be less than the greater of (i) an amount equal to the balance of the Rental Payments then remaining for theLease Term or (ii) any minimum required by any co-insurance provisions of such insurance, (b) liability insurance that protects Lessor fromliability in all events in form and amount satisfactory to Lessor, and (c) workers' compensation coverage as required by the laws of the state inwhich Lessee is located. Each insurance policy required by clause (b) of the preceding sentence will name Lessee as an insured and Lessor or its assigns as an additional insured and loss payee, as appropriate, and each insurance policy required by the preceding sentence will contain aclause requiring the insurer to give Lessor or its Assignee at least thirty (30) days prior written notice of any alteration in the terms of such policyor the cancellation thereof. The proceeds of any such policies will be payable to Lessee and Lessor or its assigns, as their interest may appear.Upon acceptance of the Equipment and upon each insurance renewal date, Lessee will deliver to Lessor a certificate evidencing such insurance. In the event of any loss, damage, injury or accident involving the Equipment, Lessee will promptly provide Lessor with written notice hereof andmake available to Lessor all information and documentation relating thereto. Notwithstanding the foregoing, with Lessor's prior written consent,Lessee may self-insure against any and all risks for which insurance is required. 18.INDEMNIFICATION: To the extent permitted by law, and solely from legally available funds, Lessee agrees to indemnify Lessor against, and holdLessor, its Assignees, or any participants with such, harmless from, any and all claims, actions, proceedings, expenses, damages, liabilities orlosses (including, but not limited to, attorneys' fees and court costs) arising in connection with the Equipment, including, but not limited to, its selection, purchase, delivery, possession, use, operation or return and the recovery of claims under insurance policies thereon. 19.EVENTS OF DEFAULT: The Term "Event of Default" as used in this Lease, means the occurrence of any one or more of the following events: (a) Lessee fails to make any Rental Payment (or any other payment) as it becomes due in accordance with the terms of this Lease, and any suchfailure continues for ten (10) days after the date thereof; (b) Lessee fails to perform or observe any other covenant, condition or agreement to beperformed or observed by it hereunder and such failure is not cured within ten (10) days after written notice thereof by Lessor; (c) the discovery byLessor that any statement, representation or warranty made by Lessee in this Lease or in any document delivered by Lessee pursuant hereto or in connection herewith is false, misleading or erroneous in any material respect; (d) Lessee becomes insolvent, is unable to pay its debts as theybecome due, makes an assignment for the benefit of creditors, applies or consents to the appointment of a receiver, trustee, conservator orliquidator of Lessee or of all or substantial part of its assets, a petition for relief is filed by Lessee under federal bankruptcy, insolvency or similarlaws, or a petition in a proceeding under any bankruptcy, insolvency or similar laws, is filed against Lessee and is not dismissed within thirty (30) days thereafter; (e) Lessee suffers an adverse material change in its financial condition or operations from the date hereof and, as a result,Lessor deems itself insecure; or (f) Lessee is in default under any other agreement executed at any time with Lessor, its affiliates or Lessor'sAssignee or under any other agreement or instrument by which it is bound. 20.REMEDIES: Upon the occurrence of an Event of Default, Lessor may, at its option, exercise any one or more of the following remedies: (a) bywritten notice to Lessee, declare an amount equal to all amounts then due under this Lease and all remaining Rental Payments which willbecome due during the then current fiscal year of Lessee to be immediately due and payable, whereupon the same will become immediately due and payable; (together with interest on such amount at the lesser of one and one-half (1 ½ %) percent per month or the maximum permitted bylaw from the date on which Lessor has declared this Lease to be in default; (b) by written notice to Lessee, request Lessee to (and Lessee agreesthat it will), at Lessee's expense, promptly return the Equipment to Lessor in the manner set forth in Section 8 hereof, or Lessor, at its option, mayenter upon the premises where the Equipment is located and take immediate possession of and remove the same without liability to Lessor or its ATTACHMENT C agents for such entry or for damage to property or otherwise; (c) sell or lease the Equipment or sublease it for the account of Lessee, holding Lessee liable for (i) all Rental Payments and other payments due to the effective date of such selling, leasing or subleasing, and (ii) for the difference between the purchase price, rental and other amounts paid by the purchaser, lessee or sublessee pursuant to such sale, lease or sublease and the remaining amounts payable by the Lessee through the end of the then current fiscal year of Lessee hereunder; and (d) exercise any other right, remedy or privilege which may be available to it under applicable law, including the right to (i) proceed by appropriate court action to enforce the terms of this Lease, (ii) recover damages for the breach of this Lease, and (iii) rescind this Lease as to any or all of the Equipment. In addition, Lessee will remain liable for all covenants and indemnities under this Lease and for all legal fees and other costs and expenses, including court costs, incurred by Lessor with respect to the enforcement of any of the remedies listed above or any other remedy available to Lessor. 21. EARLY PURCHASE OPTION: Lessee may, upon sixty (60) days prior written notice to Lessor, and provided Lessee has fully paid and performed all other obligations hereunder and provided no Event of Default has occurred and is continuing, pay to Lessor the applicable amount set forth on Schedule C attached hereto, whereupon title to the Equipment will become unconditionally vested in Lessee, and Lessor will transfer any and all of its right, title and interest in the Equipment to Lessee as is, where is, without warranty, express or implied, except that Lessor will warrant to Lessee that the Equipment is free and clear of any liens created by Lessor. 22. ASSIGNMENT: Except as expressly provided herein, Lessee will not (a) assign, transfer, pledge, hypothecate or grant any security interest in, or otherwise dispose of, this Lease or the Equipment or any interest in this Lease or the Equipment or (b) sublet or lend the Equipment or permit the Equipment to be used by anyone other than Lessee or Lessee's employees unless Lessee obtains the prior written consent of Lessor and an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations satisfactory to Lessor that such action will not adversely affect the exclusion of the interest portions of the Rental Payments from gross income for federal income tax purposes. Lessor, without the consent of Lessee, may assign all or any portion or portions of its right, title and interest in and to this Lease, the Equipment and any other documents executed with respect to this Lease, and/or grant or assign all or any portion or portions of its security interest in this Lease and the Equipment, in whole or in part to various assignees, their agents or trustees (each and any one hereinafter referred to as an "Assignee"). Any such assignment to an Assignee may provide that the Lessor or the Assignee will act as a collection and paying agent for owners of certificates of participation in this Lease, or may provide that a third-party trustee or agent will act as collection and paying agent for any Assignee, provided that any such trustee or agent will maintain registration books as a register of all persons who are owners of certificates of participation or other interest in Rental Payments and Lessee receives written notification of the name and address of the trustee or agent and a copy of the pooling and fractionalization agency or trustee agreement, if any. Any such Assignee will have all of the assigned rights of Lessor under this Lease. Subject to the foregoing, this Lease will inure to the benefit of and will be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. Any assignment or reassignment of any of Lessor's right, title or interest in this Lease or the Equipment will be effective upon receipt by Lessee of a duplicate original of the counterpart document by which the assignment or reassignment is made, disclosing the name and address of each such Assignee and, where applicable, to whom further payments hereunder should be made. During the Lease Term, Lessee covenants that it will keep a complete and accurate record of all assignments in form necessary to comply with Section 149(a) of the Code and the regulations, proposed or existing, from time to time promulgated thereunder. Lessee agrees to acknowledge in writing any assignments if so required. Lessee agrees that, upon notice of assignment, if so instructed it will pay directly to the Assignee, or its Trustee or Agent without abatement, deduction or setoff all amounts which become due hereunder. Lessee further agrees that it will not assert against any Assignee, Trustee or Agent any defense, claim, counterclaim or setoff on account of any reason whatsoever with respect to any Rental Payments or other amounts due hereunder or with respect to any action brought to obtain possession of the Equipment pursuant to this Lease. 23. FINANCIAL STATEMENTS: Each year during the term of this Lease, Lessee hereby agrees to deliver to Lessor a copy of: (i) annual audited financial statements within one hundred twenty (120) days of Lessee’s fiscal year-end; and (ii) within a reasonable period of time, any other financial information Lessor requests from time to time. 24. NATURE OF AGREEMENT: Lessor and Lessee agree that upon the due and punctual payment and performance of the installments of Rental Payments and other amounts and obligations under this Lease, title to the Equipment will vest permanently in Lessee as provided in this Lease, free and clear of any interest, lien or security of Lessor therein. 25. AMENDMENTS: This Lease may be amended or any of its terms modified for the purpose of adding Equipment, with the written consent of the parties hereto. In such event, additions to or additional Schedules attached hereto will be executed by Lessee. All other amendments or modifications of the terms of this Lease (except for the addition or serial numbers for the Equipment as set forth in the Acceptance Certificate) must be accomplished by written consent of Lessee and Lessor, or its Assignee, if any; provided, however, that no amendment of this Lease will operate to reduce or delay any Rental Payments to be made hereunder without the consent of Lessor, or its Assignee, at the time of such amendment. 26. NOTICES: All notices to be given under this Lease must be made in writing and mailed by certified mail to the other party at its address set forth herein or at such address as the party may provide in writing from time to time. Any such notice will be deemed to have been received five (5) days subsequent to mailing. 27. SECTION HEADINGS: All section headings contained herein are for the convenience of reference only and are not intended to define or limit the scope of any provision of this Lease. 28. GOVERNING LAW: This Lease will be governed by the provisions hereof and by the laws of the State of Colorado. 29. FURTHER ASSURANCES: Lessee will deliver to Lessor (i) an opinion of counsel in substantially the form of Schedule D attached hereto or as Lessor may otherwise request; and (ii) if applicable, a certificate of a duly authorized official as to designation as a qualified tax-exempt obligation. Moreover, Lessee will execute or provide, as requested by Lessor, any documents and information that are reasonably necessary with respect to the transaction contemplated by this Lease. 30. ENTIRE AGREEMENT: This Lease, together with the Schedules attached hereto and made a part hereof and other attachments hereto and other documents or instruments executed by Lessee and Lessor in connection herewith, constitute the entire agreement between the parties with respect to the lease of the Equipment, and this Lease will not be modified, amended, altered or changed except with the written consent of Lessee or Lessor. ATTACHMENT C 31. SEVERABILITY: Any provision of this Lease found to be prohibited by law will be ineffective to the extent of such prohibition without invalidating the remainder of this Lease. 32. WAIVER: The waiver by Lessor of any breach by Lessee of any term, covenant or condition, hereof will not operate as a waiver of any subsequent breach hereof. 33. CERTIFICATION AS TO ARBITRAGE: Lessee hereby represents as follows: (a) The estimated total costs of the Equipment will not be less than the total principal amount of the Rental Payments. (b) The Equipment has been ordered or is expected to be ordered within six months of the effective date of this Lease, and the Equipment is expected to be delivered and installed, and the Vendor fully paid, within one (1) year of the effective date of this Lease. (c) Lessee has not created or established, and does not expect to create or establish, any sinking fund or other similar fund (i) that is reasonably expected to be used to pay the Rental Payments, or (ii) that may be used solely to prevent a default in the payment of Rental Payments. (d) The Equipment has not been, and is not expected to be, sold or otherwise disposed of by Lessee, either in whole or in major part, prior to the final Rental Payment. (e) To the best of Lessee's knowledge, information and belief, the above expectations are reasonable. 34. ELECTRONIC TRANSACTIONS. The parties agree that the transaction described herein may be conducted and related documents may be stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE. TO PROTECT YOU (LESSEE(S) AND US (LESSOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT. BY SIGNING BELOW, YOU AND WE AGREE THAT THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN US. Lesssor: Clayton Holdings, LLC Authorized Signature: _____________________________ Printed Name: ___________________________________ Title: __________________________________________ Date: __________________________________________ Lessee: Town of Avon, Colorado Authorized Signature: _____________________________ Printed Name: ___________________________________ Title: __________________________________________ Date: __________________________________________ EIN # 84-0771088 ATTACHMENT C SCHEDULE A TO STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. 5000218-001 Description of Equipment Location of Equipment Street Address: Public Works Facility, 500 Swift Gulch Road City: Avon State: CO Zip Code: 81620 Lessee hereby certifies that the description of the property set forth above constitutes an accurate account of the Equipment as referred to in the Lease. Town of Avon, Colorado LESSEE: BY: X DATE: DESCRIPTION OF LEASED EQUIPMENT (Make. Kind. Model Number. Serial Number, Any other pertinent identification) One (1) 2018 Kenworth T800H Snowplow Truck $275,613.62 VIN: _________________________________ One (1) Altec AT200A Lift Truck, E350 Chassis with Altec Aluminum Body ILO F450 Chassis $80,204.00 VIN: _________________________________ TOTAL $355,817.62 ATTACHMENT C SCHEDULE B TO STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. 5000218-001 DELIVERY AND ACCEPTANCE CERTIFICATE TO: Clayton Holdings, LLC Reference is made to the State and Municipal Lease/Purchase Agreement between the undersigned Town of Avon, Colorado ("Lessee"), and Clayton Holdings, LLC ("Lessor"), dated October 5, 2017 ("Lease") and to the Equipment as such term is defined therein. In connection therewith we are pleased to confirm to you the following: 1. All of the Equipment has been delivered to and received by the undersigned; all installation or otherwork necessary prior to the use thereof has been completed; said Equipment has been examined and/or tested and is in good operating order and condition and is in all respects satisfactory to the undersigned and as represented, and said Equipment has been accepted by the undersigned and complies with all terms of the Lease. Consequently, you are hereby authorized to pay for the Equipment in accordance with the terms of any purchase orders for the same. 2. In the future, in the event the Equipment fails to perform as expected or represented we will continue to honor the Lease in all respects and continue to make our rental and other payments thereunder in the normal course of business and we will look solely to the vendor, distributor or manufacturer for recourse. 3. We acknowledge that Lessor is neither the vendor nor manufacturer or distributor of the Equipment and has no control, knowledge or familiarity with the condition, capacity, functioning or other characteristics of the Equipment 4. The serial number for each item of Equipment which is set forth on Schedule A to the Lease is correct. This certificate will not be considered to alter, construe, or amend the terms of the Lease. LESSEE: Town of Avon, Colorado X DATE: ATTACHMENT C Lessee:Town of Avon, ColoradoLessor:Clayton Holdings, LLC Lease Number:5000218-001 Lease Term in Months: _____________________Rental Periods _____________________ Capital Cost of Equipment: $355,817.62 Rental Payment Date Payment Amount Amount Credited to Interest Amount Credited to Capital Cost Outstanding Principal Balance LESSEE:TOWN OF AVON, COLORADO SIGNED BY: TITLE AND DATE: SCHEDULE C Interest, if any, accruing from the Start Date to the actual date of funding shall be retained by Lessor as additional consideration for entering into this Lease Purchase Agreement. In the event Lessee desires to prepay this lease, they may do so in whole, but not in part at a premium of the then current Outstanding Principal Balance, calculated as follows; 3% in year (1), 2% in year (2), and 1% in each year thereafter until maturity. There is no prepayment penalty if Lessee is using internally generated funds for prepayment.SAMPLEWN OF AVON, COLORAAVON, COLORA unding shall beding shall be his Lease Purchase Agreemense Purchase Agree do so in whole, but not in part so in whole, but not in par nd 1% in each year thereafter in each year thereafter ASASASASSATTACHMENT C SCHEDULE D TO STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. 5000218-001 OPINION OF COUNSEL (To be on Letterhead of Lessee's Counsel) [Date] Re: State and Municipal Lease/Purchase Agreement No. 5000218-001 dated October 5, 2017 (the "Lease"), between Clayton Holdings, LLC ("Lessor") and Town of Avon, Colorado ( "Lessee") Ladies and Gentlemen: As legal counsel to Lessee, I have examined (a) the Lease, which, among other things, provides for the sale to and purchase by the Lessee of the Equipment, (b) an executed counterpart of the ordinance or resolution of Lessee which, among other things, authorizes Lessee to execute the Lease and (c) such other opinions, documents and matters of law as I have deemed necessary in connection with the following opinions. Based on the foregoing, I am of the following opinions: 1. Lessee is a public body corporate and politic, duly organized and existing under the laws of the State, and has a substantial amount of one or more of the following sovereign powers: (a) the power to tax, (b) the power of eminent domain, and (c) police power. 2. Lessee has the requisite power and authority to purchase the Equipment and to execute and deliver the Lease and to perform its obligations under the Lease. 3. The Lease and the other documents either attached thereto or required therein have been duly authorized, approved and executed by and on behalf of Lessee, and the Lease is a valid and binding obligation of Lessee enforceable in accordance with its terms. 4. The authorization, approval and execution of the Lease and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all open meeting laws, public bidding laws and all other applicable state and federal laws. 5. There is no proceeding pending or threatened in any court or before any governmental authority or arbitration board or tribunal that, if adversely determined, would adversely affect the transactions contemplated by the Lease or the security interest of Lessor or its assigns, as the case may be, in the Equipment. Furthermore, I confirm that the name of the Lessee as stated in the Lease, as Town of Avon, Colorado is the exact legal name of the Lessee for all purposes contemplated herein. All capitalized terms herein shall have the same meanings as in the Lease. Lessor, its successors and assigns and any counsel rendering an opinion on the tax-exempt status of the interest components of Rental Payments are entitled to rely on this opinion. Very truly yours, ATTACHMENT C SCHEDULE E TO STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. 5000218-001 I, ______________________________ , do hereby certify that I am the duly elected, or appointed and acting Secretary/Clerk of the Town of Avon, Colorado, an agency duly organized and existing under the laws of the State of Colorado (the "Lessee"), and that the following resolutions have been presented to and duly adopted by the ________________at a meeting duly and regularly held and convened in accordance with applicable law on the day of _____________________________, 20____. WHEREAS, the Lessee is entering a State and Municipal Lease/Purchase Agreement ("Lease") dated October 5, 2017, with Clayton Holdings, LLC; WHEREAS, Lessee has carefully reviewed its financing requirements for the current calendar year and reasonably expects that it will not issue more than ten million dollars ($10,000,000) of tax-exempt obligations during the calendar year; NOW, THEREFORE, be it RESOLVED, that the Lessee be, and hereby is, authorized to enter into the Lease with Clayton Holdings, LLC for a period of ____ months, and be it further RESOLVED, that the following officials of the Lessee be, and hereby are, authorized, empowered and directed to sign on its behalf the Lease and any addenda, schedules, notes, UCC financing statements or other instruments issued under the provision of the Lease and any other instrument or document which may be necessary or expedient in connection with agreement upon or fulfillment of the provisions of the Lease. Title Printed Name Signature ____________ _____________ _____________________ ____________ _____________ _____________________ RESOLVED, that pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, this Lease be and hereby Is designated a "qualified tax-exempt obligation" includable within the ten million dollars ($10,000,000) of the aggregate issues designated as "qualified tax-exempt obligations" for the calendar year within which this Lease is entered into. RESOLVED, that Lessee shall not designate more than ten million dollars ($10,000,000) of tax-exempt obligations during the current calendar year as qualified tax-exempt obligations and Lessee, together with its subordinate entities, does not reasonably expect to issue more than ten million dollars ($10,000,000) of tax-exempt obligations during the current calendar year. IN WITNESS WHEREOF, I have duly executed this certificate and affixed the seal hereto this day____ of _________, 2017. LESSEE: Town of Avon, Colorado BY: X ATTACHMENT C STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. 5000218-001 ESSENTIAL USE/SOURCE OF FUNDS LETTER October 5, 2017 Clayton Holdings, LLC 8000 Forsyth Boulevard St. Louis, Missouri 63105 Re: State and Municipal Lease/Purchase Agreement No. 5000218-001, dated October 5, 2017 (the "Lease"), between Clayton Holdings, LLC ("Lessor") and Town of Avon, Colorado ("Lessee") Ladies and Gentlemen: This confirms and affirms that the Equipment described in the Lease is essential to the function of the undersigned or to the service we provide to our citizens. Further, we have an immediate need for, and expect to make immediate use of, substantially all such Equipment, which need is not temporary or expected to diminish in the foreseeable future. Such Equipment will be used by us only for the purpose of performing one or more of our governmental or proprietary functions consistent with the permissible scope of our authority. Specifically, such Equipment was selected by us to be used as follows: ____________________________________________________________ _______________________________________________________________________________________________________ The estimated useful life of such Equipment based upon manufacturer's representations and our projected needs is ___________ years. Our source of funds for payments of the Rental Payments due under the Lease for the current fiscal year is ___________________. We currently expect and anticipate adequate funds to be available for all future payments of rent due after the current fiscal year for the following reasons: ________________________________________________________________________________________________________ Very truly yours, LESSEE: Town of Avon, Colorado BY: X DATE: ATTACHMENT C Proof of Insurance Insurance Agent Name: Agency Name: Address: Phone Number: E-Mail: Ladies and Gentlemen: Please add Clayton Holdings, LLC, as both sole loss payee under property insurance covering the equipment listed on attached Schedule A and additional insured under the general liability insurance policy. The minimum liability coverage is $5,000,000.00 if any part of the Equipment constitutes a motor vehicle and $1,000,000 if the Equipment constitutes other than motor vehicles. Please mail or fax an insurance certificate to: Clayton Holdings, LLC P.O. Box 11309 St. Louis, MO 63105 Fax # 314-746-3744 Please note that the Bank requires 30 day written notice of cancellation of the policy covering leased equipment. LESSEE: Town of Avon, Colorado By: Title: ATTACHMENT C ACH Payment Authorization Form Lease No. / Loan No: 5000218-001 Lessee / Borrower: Town of Avon, Colorado I authorize Commerce Bank (“Commerce”) to initiate debit entries and to initiate, if necessary, credit entries and adjustments for any debit entries in error on behalf of CBI Equipment Finance, Clayton Holdings or Commerce Bank as lender or lessor in the amount shown, and from the checking or savings account with the depository institution (“Bank”) named below, on the payment due date. Bank Name: Address: ABA Routing No.: Account No.: (X) Checking ( ) Savings This is a (X) New or ( ) Updated authorization form. [Monthly/Quarterly/Semi-Annual/Annual] Debit Amount(s): $[ ] Begin Auto Debit with Invoice Date Due: [ ] The final or balloon payment, if different from the [Monthly/Quarterly/Semi-Annual/Annual] payment, will not be auto debited. I understand that this authorization will remain in full force and effect until I notify COMMERCE BANK at the address or phone number below that I wish to revoke this authorization. I understand that COMMERCE BANK requires at least 5 days prior notice in order to process any such cancellation. X X Borrower / Lessee Signature Date Note that there is NO charge for this service. Also, your “Bank” need not be Commerce Bank to benefit from this feature. Any bank account can be auto debited. To commence service please return this form with your document package or send this signed form and a voided check (unless COMMERCE BANK is already currently debiting this same account for another lease schedule) to: COMMERCE BANK P.O. Box 11309 Clayton, MO 63105 or LeasingACH@Commercebank.com To discontinue or amend service, please email the request to the address above or call COMMERCE BANK at 314.746.3726. ATTACHMENT C DISBURSEMENT LETTER Date: November 27, 2017 To: Clayton Holdings, LLC 8000 Forsyth Boulevard, Suite 510 St. Louis, MO 63105 RE: Town of Avon, Colorado Lease Number: 5000218-001 Ladies and Gentlemen: Please disburse the proceeds of the above lease as follows: Wire or send to PAYEE Commerce Bank Escrow Account $355,817.62 Total Disbursement $355,817.62 Sincerely, LESSEE: Town of Avon, Colorado DATE: _________________________________________________________________________________________________ X BY: TITLE: ATTACHMENT C SAMPLMPLEEEEEEEEEEEEELLELELEEEELLLELELEEEELLLLELELEEEPPLPLPLLLLPPPLPLPLLLLPLPPPPPPMMMPMPMPPPPMMMMMMMMMPMPMPMPMPMPPPPMAMAAAMAMAMAMAMAMAMAMMMMMMMMMMMAMAAAAAAAMAMMMMMMMMAMMASASSASASASASASASASAAAAAAAAAASSSSSSASASASASAAASSSSSSSSASASASASASASASASAAAAASSSSSSSASASASASASASASASASASAAASSSSSSSSSAMSSSSSSSSSSSSAAMAMAMAMAMAMAMAMAMATTACHMENT C SAMPLPLEEEEEEEEEEEEEEEEEELLLELELELELELELELELELEEEEEELLLLLLELELELELELELELEEEEEEEELLLLLLLLELELELELEEEEPLPLPLMMMPMPMPMPMPMPMPMPMPMPPPPPPPPPPPMMMMMMMPMPMPMPMPMPMPMPMPMPPPPPPPPPPPMMMMMMMMMAMAAAAMAMMMMMAAAMAMAAAAMAMAMAMAMAMAMAMAMAMAMAMMMMMMASAAAAASSSASASASASASASASASAAAAAAAAAAAATTACHMENT C Lease No. 5000218-001 8038-G QUESTIONNAIRE Name of Lessee: Town of Avon, Colorado Address of Lessee: 1 Lake Street, Avon, CO 81620 Contact Person: Judy Popeck, Accounting Assistant Telephone Number: 970.748.4003 Email Address: jpopeck@avon.org Lessee's FEIN: 84-0771088 GENERAL In September 2011, the Internal Revenue Service (“IRS”) updated Form 8038-G (the form used by Lessees to report the issuance of a tax-exempt obligation). The revised Form 8038-G asks specific questions about written procedures to: (1) monitor private use of assets financed with proceeds of a tax-exempt obligation and, as necessary, to take remedial actions to correct any violations of federal tax restrictions on the use of financed assets; and (2) monitor the yield on the investment of gross proceeds of tax-exempt obligations and, as necessary, make payments of arbitrage rebate earned to the United States. In addition, the revised Form 8038- G asks Lessees to report whether any proceeds will be used to reimburse the Lessee for an expenditure paid prior to issuance. This questionnaire is designed to obtain the information necessary to complete Form 8038-G for the Lease. Lessee will be required to review and approve the information entered prior to signing the 8038- G form. At this time, the consequences of not having adopted written procedures to monitor private use of financed assets and yield on the investment of gross proceeds of tax-exempt obligations are unknown. If you have further questions, please consult your regular bond or legal counsel. Part 1 – Written Tax Compliance Procedures Note: If either of these questions is not answered, we will assume the Lessee has not adopted the described procedures. 1. Has the Lessee established written procedures to monitor compliance with federal tax restrictions for the term of the lease? The written procedures should identify a particular individual within Lessee’s organization to monitor compliance with the federal tax requirements related to use of the financed assets and describe actions to be taken in the event failure to comply with federal tax restrictions is contemplated or discovered. Yes ___ No ___ 2. Has the Lessee established written procedures to monitor the yield on the investment of proceeds of the Lease on deposit in an escrow account or similar fund prior to being spent and to ensure that any positive arbitrage rebate earned is paid to the United States? Yes ___ No ___ Part 2 – Reimbursement of Prior Expenditures 1. As of the funding date, were any of the proceeds of the Lease used to reimburse Lessee for expenditures paid to acquire the financed assets prior to the funding date of the Lease? Yes ___ No ___ If yes, please attach a spreadsheet listing the expenditure(s) together with the date paid, vendor paid and purpose of the expenditure or other proof of the expenditure(s) containing this information (i.e. invoices, receipts, cancelled checks). Items 2 and 3 need to be completed ONLY if the answer to item 1 above is YES. 2. Please attach a copy of Lessee’s resolution of intent to finance the financed assets, which includes date of adoption. 3. What is the amount of proceeds of the Lease reimbursed to Lessee? $_____________________ BY: NAME: TITLE: DATE: ATTACHMENT C ESCROW AGREEMENT This Escrow Agreement (the “Escrow Agreement”), dated as of October 5, 2017, and entered into among CLAYTON HOLDINGS, LLC, a Missouri banking corporation (together with its successors and assigns, “Lessor”), TOWN OF AVON, COLORADO, schools and political subdivision existing under the laws of Missouri (“Lessee”), and COMMERCE BANK, a Missouri banking corporation, as escrow agent (together with its successors and assigns, the “Escrow Agent”). Name of Acquisition Fund: “Avon CH Sch 001” Amount of Deposit into the Acquisition Fund: $355,817.62 TERMS AND CONDITIONS 1. This Escrow Agreement relates to and is hereby made a part of the State and Municipal Lease/Purchase Agreement dated as of October 5, 2017, (the “Lease”), between Lessor and Lessee. 2. Except as otherwise defined herein, all terms defined in the Lease shall have the same meaning for the purposes of this Escrow Agreement as in the Lease. 3. Lessor, Lessee and the Escrow Agent agree that the Escrow Agent will act as sole Escrow Agent under the Lease and this Escrow Agreement, in accordance with the terms and conditions set forth in this Escrow Agreement. The Escrow Agent shall not be deemed to be a party to the Lease, and this Escrow Agreement shall be deemed to constitute the entire agreement between Lessor and Lessee and the Escrow Agent. 4. There is hereby established in the custody of the Escrow Agent a special trust fund designated as set forth above (the “Acquisition Fund”) to be held and administered by the Escrow Agent in trust for the benefit of Lessor and Lessee in accordance with this Escrow Agreement. 5. Lessor shall deposit in the Acquisition Fund the amount specified above. Moneys held by the Escrow Agent hereunder shall be invested and reinvested by the Escrow Agent upon written order of an authorized Lessee representative, in accordance with the Arbitrage Instructions attached as Exhibit A, in Qualified Investments (as defined below) maturing or subject to redemption at the option of the holder thereof prior to the date on which it is expected that such funds will be needed. If an Authorized Lessee Representative fails to timely direct the investment of any moneys held hereunder, the Escrow Agent shall invest and reinvest such moneys in Qualified Investments described in 6(vi) below. Such investments shall be held by the Escrow Agent in the Acquisition Fund; any interest and gain earned on such investments shall be deposited in the Acquisition Fund, and any losses on such investments shall be charged to the Acquisition Fund. The Escrow Agent may act as purchaser or agent in the making or disposing of any investment. Qualified Investments described in 6(vi) below will be subject to an annualized sweep fee charged monthly to the earnings on monies invested. 6. “Qualified Investments” means, to the extent the same are at the time legal for investment of the funds being invested: (i) direct general obligations of the United States of America; (ii) obligations the timely payment of principal of and interest on which is fully and unconditionally guaranteed by the United States of America; (iii) general obligations of the agencies and instrumentalities of the United States of America acceptable to Lessor; (iv) certificates of deposit, time deposits or demand deposits with any bank or savings institution including the Escrow Agent or any affiliate thereof, provided that such ATTACHMENT C -2- certificates of deposit, time deposits or demand deposits, if not insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, are fully secured by obligations described in (i), (ii) or (iii) above; or (v) repurchase agreements with any state or national bank or trust company, including the Escrow Agent or any affiliate thereof, that are secured by obligations of the type described in (i), (ii) or (iii) above, provided that such collateral is free and clear of claims of third parties and that the Escrow Agent or a third party acting solely as agent for the Escrow Agent has possession of such collateral and a perfected first security interest in such collateral; or (vi) money market mutual funds that are invested in securities described in (i), (ii) or (iii) and that are rated “Aaa” by Moody's Investors Service or “AAAm-G” by Standard & Poor's Ratings Services or the comparable rating by Fitch IBCA, Inc. 7. Moneys in the Acquisition Fund shall be used to pay for the cost of acquisition of the Equipment listed in the Lease. Such payment shall be made from the Acquisition Fund upon presentation to the Escrow Agent of one or more properly executed Payment Request and Acceptance Certificates, a form of which is attached as Exhibit B, executed by Lessee and approved by Lessor, together with an invoice for the cost of the acquisition of said Equipment and a written approval by Lessor of the Vendor be paid. In making any disbursement pursuant to this Section 7, the Escrow Agent may conclusively rely as to the completeness and accuracy of all statements in such Payment Request and Acceptance Certificate, and the Escrow Agent shall not be required to make any inquiry, inspection or investigation in connection therewith. The approval of each Payment Request and Acceptance Certificate by the Lessor shall constitute unto the Escrow Agent an irrevocable determination by the Lessor that all conditions precedent to the payment of the amounts set forth therein have been completed. 8. The Acquisition Fund shall terminate upon the occurrence of the earlier of (a) the presentation of a proper Payment Request and Acceptance Certificate and the Final Acceptance Certificate, a form of which is attached as Exhibit C, properly executed by Lessee, or (b) the presentation of written notification by the Lessor, or, if the Lessor shall have assigned its interest under the Lease, then the assignees or subassignees of all of Lessor's interest under the Lease or an Agent on their behalf, that the Lease has been terminated pursuant to Section 8 or 20 of the Lease. Upon termination as described in clause (a) of this paragraph, any amount remaining in the Acquisition Fund shall be used to prepay the principal portion of Rental Payments unless Lessor directs that payment of such amount be made in such other manner directed by Lessor that, in the opinion of nationally recognized counsel in the area of tax-exempt municipal obligations satisfactory to Lessor, will not adversely affect the exclusion of the interest components of Rental Payments from gross income for federal income tax purposes. If any such amount is used to prepay principal, the Rental Payment Schedule attached to the Lease shall be revised accordingly as specified by Lessor. Upon termination as described in clause (b) of this paragraph, any amount remaining in the Acquisition Fund shall immediately be paid to Lessor or to any assignees or subassignees of Lessor interest in this Lease. 9. The Escrow Agent may at any time resign by giving at least 30 days written notice to Lessee and Lessor, but such resignation shall not take effect until the appointment of a successor Escrow Agent. The substitution of another bank or trust company to act as Escrow Agent under this Escrow Agreement may occur by written agreement of Lessor and Lessee. In addition, the Escrow Agent may be removed at any time, with or without cause, by an instrument in writing executed by Lessor and Lessee. In the event of any resignation or removal of the Escrow Agent, a successor Escrow Agent shall be appointed by an instrument in writing executed by Lessor and Lessee. Such successor Escrow Agent shall indicate its acceptance of such appointment by an instrument in writing delivered to Lessor, Lessee and the predecessor Escrow Agent. Thereupon such successor Escrow Agent shall, without any further act or deed, be fully vested with all the trusts, powers, rights, duties and obligations of the Escrow Agent ATTACHMENT C -3- under this Escrow Agreement and the predecessor Escrow Agent shall deliver all moneys and securities held by it under this Escrow Agreement to such successor Escrow Agent whereupon the duties and obligations of the predecessor Escrow Agent shall cease and terminate. If a successor Escrow Agent has not been so appointed with 90 days of such resignation or removal, the Escrow Agent may petition a court of competent jurisdiction to have a successor Escrow Agent appointed. 10. Any corporation or association into which the Escrow Agent may be merged or converted or with or into which it may be consolidated, or to which it may sell or transfer its corporate trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from any merger, conversion, sale, consolidation or transfer to which it is a party, shall be and become successor Escrow Agent hereunder and shall be vested with all the trusts, powers, rights, obligations, duties, remedies, immunities and privileges hereunder as was its predecessor, without the execution or filing of any instrument or any further act on the part of any of the parties hereto. 11. The Escrow Agent incurs no responsibility to make any disbursements pursuant to the Escrow Agreement except from funds held in the Acquisition Fund. The Escrow Agent makes no representations or warranties as to the title to any Equipment listed in the Lease or as to the performance of any obligations of Lessor or Lessee. 12. The Escrow Agent may act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine, may assume the validity and accuracy of any statement or assertion contained in such a writing or instrument, and may assume that any person purporting to give any writing, notice, advice or instructions in connection with the provisions hereof has been duly authorized to do so. The Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form, manner and execution, or validity of this Escrow Agreement other than its own execution thereof or any instrument deposited with it, nor as to the identity, authority or right of any person executing the same; and its duties hereunder shall be limited to those specifically provided herein. 13. Unless the Escrow Agent is guilty of negligence or willful misconduct with regard to its duties hereunder, Lessee, to the extent permitted by law, and Lessor jointly and severally hereby agree to indemnify the Escrow Agent and hold it harmless from any and all claims, liabilities, losses, actions, suits or proceedings at law or in equity, or any other expense, fees or charges of any character or nature, which it may incur or with which it may be threatened by reason of its acting as Escrow Agent under this Escrow Agreement; and in connection therewith, to indemnify the Escrow Agent against any and all expenses, including reasonable attorneys' fees and the cost of defending any action, suit or proceeding or resisting any claim. 14. The aggregate amount of the costs, fees, and expenses of the Escrow Agent in connection with the creation of the escrow described in and created by this Escrow Agreement and in carrying out any of the duties, terms or provisions of this Escrow Agreement is a one-time fee in the amount of $250.00 to be paid by Lessee concurrently with the execution and delivery of this Escrow Agreement. Notwithstanding the preceding paragraph, the Escrow Agent shall be entitled to reimbursement from Lessor of reasonable out-of-pocket, legal or extraordinary expenses incurred in carrying out the duties, terms or provisions of this Escrow Agreement. Claims for such reimbursement may be made to Lessor and in no event shall such reimbursement be made from funds held by the Escrow Agent pursuant to this Escrow Agreement. The Escrow Agent agrees that it will not assert any lien whatsoever on any of the money or Qualified Investments on deposit in the Escrow Fund for the payment of fees and expenses for services rendered by the Escrow Agent under this Escrow Agreement or otherwise. ATTACHMENT C -4- 15. If Lessee, Lessor or the Escrow Agent shall be in disagreement about the interpretation of the Lease or this Escrow Agreement, or about the rights and obligations, or the propriety of any action contemplated by the Escrow Agent hereunder, the Escrow Agent may, but shall not be required to, file an appropriate civil action to resolve the disagreement. The Escrow Agent shall be indemnified by Lessor and Lessee, to the extent permitted by law, for all costs, including reasonable attorneys' fees and expenses, in connection with such civil action, and shall be fully protected in suspending all or part of its activities under this Escrow Agreement until a final judgment in such action is received. 16. The Escrow Agent may consult with counsel of its own choice and shall have full and complete authorization and protection for any action or non-action taken by the Escrow Agent in accordance with the opinion of such counsel. The Escrow Agent shall otherwise not be liable for any mistakes of facts or errors of judgment, or for any acts or omissions of any kind unless caused by its negligence or willful misconduct. 17. This Escrow Agreement shall be governed by and construed in accordance with the laws of the state in which the Escrow Agent is located. 18. In the event any provision of this Escrow Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 19. This Escrow Agreement may not be amended except by a written instrument executed by Lessor, Lessee and the Escrow Agent. 20. This Escrow Agreement may be executed in several counterparts, each of which so executed shall be an original. ATTACHMENT C -5- IN WITNESS WHEREOF, Lessor, Lessee and the Escrow Agent have caused this Escrow Agreement to be executed by their duly authorized representatives. CLAYTON HOLDINGS, LLC LESSOR By: Title: TOWN OF AVON, COLORADO LESSEE By: Title: COMMERCE BANK ESCROW AGENT By: Title: ATTACHMENT C EXHIBIT A ARBITRAGE INSTRUCTIONS These Arbitrage Instructions provide procedures for complying with § 148 of the Internal Revenue Code of 1986, as amended (the “Code”), in order to preserve the exclusion from federal gross income of the interest portions of the Rental Payments under the Lease. 1. Temporary Period/Yield Restriction. Except as described in this paragraph, money in the Acquisition Fund must not be invested at a yield greater than the yield on the Lease. Proceeds of the Lease in the Acquisition Fund and investment earnings on such proceeds may be invested without yield restriction for three years after the Start Date of the Lease. If any unspent proceeds remain in the Acquisition Fund after three years, such amounts may continue to be invested without yield restriction so long as Lessee pays to the IRS all yield reduction payments under § 1.148-5(c) of the Treasury Regulations. 2. Opinion of Bond Counsel. These Arbitrage Instructions may be modified or amended in whole or in part upon receipt of an opinion of nationally recognized counsel in the area of tax-exempt municipal obligations, satisfactory to Lessor, that such modifications and amendments will not adversely affect the exclusion of the interest components of Rental Payments from gross income for federal income tax purposes. ATTACHMENT C -1 EXHIBIT B FORM OF PAYMENT REQUEST AND ACCEPTANCE CERTIFICATE To: COMMERCE BANK, Escrow Agent and Lessor 8000 Forsyth Blvd. St. Louis, Missouri 63105 Re: Avon CH Sch 001 Acquisition Fund established by the Escrow Agreement, dated as of October 5, 2017 (the “Escrow Agreement”) among Clayton Holdings, LLC, as lessor (“Lessor”), Town of Avon, Colorado (“Lessee”) and Commerce Bank, as Escrow Agent (the “Escrow Agent”) Ladies and Gentlemen: The Escrow Agent is hereby requested to pay from the Acquisition Fund to the person or corporation designated below as Payee, the sum set forth below in payment of a portion or all of the cost of the acquisition of the equipment or the interest portions of Rental Payment(s) described below. The amount shown below is due and payable under the invoice of the Payee attached hereto with respect to the cost of the acquisition of the equipment or payment of the interest portions of Rental Payment(s) and has not formed the basis of any prior request for payment. The equipment described below is part or all of the “Equipment” that is listed in State and Municipal Lease/Purchase Agreement dated as of October 5, 2017 (the “Lease”) described in the Escrow Agreement. Equipment: Payee: Amount: $ Lessee hereby certifies and represents to and agrees with Lessor and the Escrow Agent as follows: (1) The Equipment described above (a) has been delivered, installed and accepted on the date hereof, or (b) the amount requested is a down payment currently due on said Equipment. (2) If (1)(a) is applicable, Lessee has conducted such inspection and/or testing of said Equipment as it deems necessary and appropriate and hereby acknowledges that it accepts said Equipment for all purposes. (3) If (1)(a) is applicable, Lessee is currently maintaining the insurance coverage required by Section 17 of the Lease. ATTACHMENT C -2 Lessee hereby certifies and represents to Lessor and the Escrow Agent that no event or condition that constitutes, or with notice or lapse of time or both would constitute, an Event of Default (as such term is defined in the Lease) exists at the date hereof. Dated: _____________________, 20____. TOWN OF AVON, COLORADO LESSEE By: ___________________________________ Title: APPROVED: CLAYTON HOLDINGS, LLC LESSOR By: Title: ATTACHMENT C EXHIBIT C FINAL ACCEPTANCE CERTIFICATE [THIS CERTIFICATE IS TO BE EXECUTED ONLY WHEN ALL EQUIPMENT HAS BEEN ACCEPTED] The undersigned hereby certifies that the equipment described above, together with the equipment described in and accepted by Payment Request and Acceptance Certificates previously filed by Lessee with the Escrow Agent and Lessor pursuant to the Escrow Agreement, constitutes all of the Equipment subject to the Lease. Dated: ____________________ TOWN OF AVON, COLORADO LESSEE By: Title: ATTACHMENT C TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Justin Hildreth, Town Engineer Meeting Date: October 24, 2017 Agenda Topic: Resolution 17-23, the First Amendment to Wet Well Easement Agreement for the Post Blvd Irrigation System ACTION BEFORE COUNCIL: Resolution 17-23, The First Amendment to Wet Well Easement Agreement for the Post Blvd Irrigation System with Traer Creek-RP, LLC is presented to Council for consideration. PROPOSED: “I move to Approve Resolution 17-23, the First Amendment to Wet Well Easement Agreement for the Post Blvd Irrigation System with Traer Creek-RP, LLC. DISCUSSION: The first amendment to the agreement includes 2 proposed changes to the existing agreement. The original agreement required that all equipment be placed underground. The wet well has flooded twice requiring replacement of the electrical components. This amendment will allow the electrical equipment to be placed above ground subject to approval of the Traer Creek Design Review Board. The 2018 water fund budget includes $38,000 to complete the project. Upon completion of the project the irrigation system will return to using non-potable water at a significant cost savings. The second change will allow the property owner to relocate the access to the wet well once that area is developed. The Town Attorney has reviewed and found agreement to be acceptable. RECOMMENDATION: Approve Resolution 17-23, the First Amendment to the West Well Easement Agreement ATTACHMENT: Resolution 17-23 RESOLUTION 17-23 APPROVING FIRST AMENDMENT TO WET WELL EASEMENT AGREEMENT WHEREAS, the Avon Town Council has determined that an amendment to the Wet Well Easement Agreement will allow for beneficial and efficient improvements to the wet well on Lot 1, Village (at Avon); and, WHEREAS, the Town Council finds that approval of the attached First Amendment to the Wet Well Easement Agreement will promote the health, safety, prosperity, convenience and general welfare of the Avon community by facilitating improvements to the well wet located on Lot 1, Village (at Avon). NOW THEREFORE, the Avon Town Council, hereby RESOLVES to approve the First Amendment to Wet Well Easement Agreement attached hereto as Exhibit A. ADOPTED October 24, 2017 by the AVON TOWN COUNCIL By:_______________________________ Attest:___________________________ Jennie Fancher, Mayor Debbie Hoppe, Town Clerk {00393692 / 1 } 1 FIRST AMENDMENT TO WET WELL EASEMENT AGREEMENT THIS FIRST AMENDMENT TO WET WELL EASEMENT AGREEMENT (this “First Amendment”) is made as of the ___ day of October, 2017 (the “Effective Date”) by and between TRAER CREEK-RP LLC, a Colorado limited liability company (“Grantor”), and the TOWN OF AVON, a home rule municipal corporation of the State of Colorado (“Grantee”). WITNESSETH: WHEREAS, Grantor and Grantee are parties to that certain Wet Well Easement Agreement dated June 7, 2013 and recorded at Reception No. 201412797 of the Eagle County, Colorado real property records (the “Agreement”), pursuant to which Grantor granted to Grantee a perpetual non-exclusive easement in, through, over, under and across a portion of that certain real property located in the Town of Avon, Eagle County, Colorado legally described as Lot 1, The Village (At Avon), Filing 1 (“Lot 1”); and WHEREAS, all capitalized terms used herein shall have the same meanings as ascribed thereto in the Agreement; and WHEREAS, Grantor desires to clarify Grantee’s rights of ingress and egress to the Easement Area across certain portions of Lot 1 as described below; and WHEREAS, Grantor and Grantee desire to amend the Agreement to confirm their intention that, from after the Effective Date of this First Amendment, Grantee will have the rights of ingress and egress to the Easement Area across certain portions of Lot 1 as hereinafter described. NOW, THEREFORE, in consideration of the covenants contained herein, and with the intent to be legally bound hereby, the parties agree as follows: 1.Amendment to Agreement Section 1(a). Section 1(a) of the Agreement is hereby amended and restated in its entirety to read as follows: (a) A perpetual non-exclusive easement in, through, over, under and across that certain parcel of real property located in the Town of Avon, Eagle County, Colorado, as more particularly described on Exhibit A attached hereto and incorporated herein by this reference ("Easement Area") for (i) vehicular and pedestrian ingress and egress to the Improvements (as defined below); and (ii) construction, reconstruction, operation, use, maintenance, repair, replacement and/or removal of certain water lines and mains, manholes, conduits, ventilators, access doors, cables, landscaping improvements, wells, well casings, tanks, motors, pumps, electrical facilities and apparatus, meters, and related improvements and appurtenances thereto (collectively, the "Improvements"), provided that all such improvements shall be located underground or on the surface of the Easement Area and shall not be located above the surface of the Easement Area unless prior approval is granted by the Village (at Avon) Design Review Board, subject and pursuant to the terms and conditions set forth herein ("Easement"); and Exhibit A {00393692 / 1 } 2 2.Amendment to Agreement – Section 1.(b). Section 1 of the Agreement is hereby amended by approving and adopting a new Section 1.(b) to read as follows: (b) Following completion of construction of new improved parking areas, drive aisles and roadways within the easterly 100ʹ of Lot 1 between the Nottingham Puder Ditch and East Beaver Creek Boulevard rights-of-way (the “New Drive Surface Improvements”), a perpetual non-exclusive easement for vehicular and pedestrian ingress and egress over, across, upon and through the New Drive Surface Improvements, as the same may thereafter be modified from time to time, along the most reasonably direct path necessary to reach Grantee’s wet well vault currently located within the Easement Area. 3.Wet Well Easement Agreement Ratification; Conflicts. The terms and provisions of the Agreement as amended by this First Amendment are hereby ratified, confirmed and adopted by the parties. Except as expressly modified by this First Amendment, all other terms and provisions of the Agreement shall remain in full force and effect. In the event of any conflict between this First Amendment and the Agreement, this First Amendment shall control. 4.Authority. The parties hereby represent and warrant to the other that: (a) such partyhas the requisite authority to execute this First Amendment; and (b) the person executing this First Amendment on behalf of such party is authorized to enter into this First Amendment on behalf of such party and to bind such party. 5.Counterparts. This First Amendment may be executed electronically and/or incounterparts, each of which shall be deemed an original, but both of which, when taken together shall constitute one and the same First Amendment. [Signatures on following page] Exhibit A {00393692 / 1 } 3 IN WITNESS WHEREOF, each party acknowledges that a duly authorized representative of such party has executed this First Amendment as of the Effective Date, and acknowledges that such party has read, understands and agrees to the terms and conditions set forth in this First Amendment. GRANTOR: TRAER CREEK-RP LLC a Colorado limited liability company By: Traer Creek LLC, a Colorado limited liability company, its Manager By: Marcus Lindholm, Manager STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2017, by Marcus Lindholm, as Manager of Traer Creek LLC, a Colorado limited liability company and Manager of Traer Creek-RP LLC, a Colorado limited liability company, on behalf of the companies. Witness my hand and official seal. My commission expires: Notary Public Exhibit A {00393692 / 1 } 4 GRANTEE: TOWN OF AVON a home rule municipal corporation of the State of Colorado By: Name: Title: STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this _____ day of ______________, 2017, by ____________________, as ____________________ of the Town of Avon, a Colorado home rule municipal corporation, on behalf of the corporation. Witness my hand and official seal. My commission expires: Notary Public Exhibit A TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Justin Hildreth, Town Engineer Meeting Date: October 24, 2017 Agenda Topic: Approving Bill of Sale that will convey a sewer main constructed for the Avon Joint Public Safety Facility ACTION BEFORE COUNCIL: The Bill of Sale that will convey the Avon Joint Public Safety Facility sewer main to the Eagle River Water and Sanitation District (ERWSD) is presented to Council for consideration. The Bill of Sale will transfer Avon’s portion of ownership of the sewer main constructed for the Avon Joint Public Safety Facility which is located at 60 Buck Creek Road to the ERWSD. Since the property is jointly owned by the Town of Avon and the Eagle River Fire Protection District (ERFPD), both entities must approve the Bill of Sale and the ERFPD approved it at their September meeting. ERWSD presented its standard form for the Bill of Sale, which the Town Attorney has reviewed and found to be acceptable. PROPOSED: “I move to Approve the Bill of Sale conveying the Avon Joint Public Safety Facility sewer main to the ERWSD. DISCUSSION: The Bill of Sale transfers ownership of the sanitary sewer main constructed as part of the Avon Join Public Safety Facility project for the ERWSD to operate and maintain. The Bill of Sale has a 2-year warranty period that runs from the date of “Construction Acceptance”. Construction acceptance is contingent on the completion of the Bill of Sale and is expected to occur shortly after the Bill of Sale is approved. RECOMMENDATION: Approve the Bill of Sale conveying the sewer main to ERWSD. ATTACHMENTS: Bill of Sale – Sewer Main Page 1 of 3 BILL OF SALE – SEWER MAIN KNOW ALL MEN BY THESE PRESENTS, that Eagle River Fire Protection District and the Town of Avon, (“Seller”), for and in consideration of the mutual promises and assurances made herein, the sufficiency of which is hereby acknowledged, and other valuable consideration to be paid by EAGLE RIVER WATER & SANITATION DISTRICT, a quasi-municipal corporation of the State of Colorado (“District”), has bargained and sold, and by these presents does grant and convey unto the District, its successors and assigns, the following property: The sewer system, equipment, and related appurtenances and facilities, including all related personal property (the “Improvements”), which are constructed or otherwise acquired by Seller within the property generally known as Avon Public Safety Facility, 60 Buck Creek Road, Avon, Colorado, and described on Exhibit A, attached hereto and incorporated herein by reference. To have and to hold the same, unto the District, its successors and assigns forever, and Seller, for itself, its successors and assigns, covenants and agrees to and with the District, its successors and assigns, to warrant and defend the sale of said Improvements, hereby made unto the District, its successors and assigns, against all and every person or persons whomsoever, and warrants that the conveyance of the Improvements to the District, its successors and assigns, is made free from any claim or demand whatsoever. The Seller further agrees and assures: 1.That all of the Improvements described herein were installed in substantial compliance with the District’s Rules and Regulations and applicable construction standards, and that said Improvements are in first-class working order, free from any defect whatever. 2.That no charges for materials or labor are due and payable on any of the Improvements described herein, and that Seller shall indemnify, defend, and hold the District and its agents, employees, engineers, and attorneys, harmless from and against all claims, damages, judgments, losses, and expenses of every nature, including reasonable attorney’s fees, arising at any time out of any act or omission of Seller and its employees, subcontractors and their employees, and all other persons directly or indirectly involved or performing work for Seller on the Improvements described herein. 3.If within two (2) years after the date of Construction Acceptance of the Improvements by the District, any Work is found to be defective, Seller shall promptly, without cost to the District and in accordance with the District’s written instructions, within seven (7) days after the District’s issuance of written instructions correct the defective Work at Seller’s cost. If Seller does not promptly comply with the terms of such instructions or in an emergency where delay would cause serious risk of loss or damage, the District may have the defective Work corrected or removed and replaced, and all direct and indirect costs of such removal and replacement, including Page 2 of 3 compensation for additional professional services, shall be paid by Seller. Seller shall also pay for any damage done to other work, other property or persons that occurred as a result of the defective Work within the TWO-YEAR warranty period. 4. Except for any notice required by law to be given in another manner, (a) any notice to Seller provided for in this Bill of Sale shall be in writing and shall be given and be effective upon (1) delivery to Seller or (2) mailing such notice by first class U.S. mail, addressed to Seller to Seller’s address stated herein or at such other address as Seller may designate by notice to the District and (b) any notice to the District shall be in writing and shall be given and be effective upon (1) delivery to the District or (2) mailing such notice by first class U.S. mail, to the District’s address stated herein or to such other address as the District may designate by notice. IN WITNESS WHEREOF, the Seller has caused its name to be hereunto subscribed this day of , 20__. SELLER: By: (Title) Mailing Address STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this day of , 20__, by as of . WITNESS my hand and official seal. (S E A L) Notary Public My commission expires: Page 3 of 3 IN WITNESS WHEREOF, the Seller has caused its name to be hereunto subscribed this day of , 20__. SELLER: By: (Title) Mailing Address STATE OF COLORADO ) ) ss. COUNTY OF EAGLE ) The foregoing instrument was acknowledged before me this day of , 20__, by as of . WITNESS my hand and official seal. (S E A L) Notary Public My commission expires: 0101 FAWCETT ROAD, SUITE 260, AVON, COLORADO 81620970.926.6007 MARTINMARTIN.COMAVON PUBLICSAFETY FACILITYWATER AND SANITARYDRAWING OF RECORDRDEXHIBIT A FOR BILL OF SALE - SEWER MAIN TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, OCTOBER 10, 2017  AVON TOWN HALL, ONE LAKE STREET  Page 1  1.A CALL TO ORDER & ROLL CALL Mayor Fancher called the meeting to order at 5:07 p.m. A roll call was taken and Council members present were Scott Prince, Jake Wolf, Megan Burch and Sarah Smith Hymes. Matt Gennett and Amy Phillips were absent. Also present were Town Manager Virginia Egger, Town Attorney Eric Heil, Police Chief Greg Daly, Deputy Town Manager Preston Neill, and Deputy Town Clerk Brenda Torres. 2.APPROVAL OF AGENDA Councilor Prince said he would like the minutes pulled off of the Consent Agenda. He made a motion to remove the September 26, 2017, Meeting Minutes from the Consent Agenda. Mayor Pro Tem Smith Hymes seconded the motion and the motion passed unanimously by Council members present. Councilor Gennett and Councilor Phillips were absent. 3.MEETING PROCEDURES FOR THE MEETING OF OCTOBER 10, 2017 4.PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA Michael Cacioppo requested an additional minute for public comment. Councilor Burch made a motion to add one minute to Mr. Cacioppo’s allotted time. Councilor Burch seconded the motion. The result of the vote was 2 to 2 with Councilor Prince not voting and Councilor Gennett and Councilor Phillips absent. Councilor Prince suggested that Mr. Cacioppo make his comments in three minutes, at which time, the Council would decide whether to allow for an additional minute. Mr. Cacioppo made comments about events that occurred at the September 26, 2017, Council meeting. 5.PRESENTATION 5.1. SWEARING IN OF PATROL OFFICER BAL HERRERA (POLICE CHIEF GREG DALY) Chief Daly introduced and Brenda Torres swore in Balmore Herrera as Avon’s newest police  officer. After the presentation, Mayor Pro Tem Smith Hymes made a motion for a quick, five‐ minute recess for photos. Councilor Wolf seconded the motion and the motion passed  unanimously by those present. Councilor Gennett and Councilor Phillips were absent.   6.ACTION ITEMS 6.1. PUBLIC HEARING SECOND READING OF ORDINANCE 17‐08, ADOPTING A NEW CHAPTER 8.38 OF TITLE 8 OF THE AVON MUNICIPAL CODE ESTABLISHING DISPOSABLE BAG REQUIREMENTS, INCLUDING A DISPOSABLE PAPER  BAG FEE AND PROVIDING FOR THE COLLECTION AND DESIGNATION OF SUCH FEE (DEPUTY TOWN MANAGER  PRESTON NEILL)  Mayor Fancher opened the public hearing and Todd Rohr and Michael Cacioppo commented on  the proposed ordinance. They both expressed that they do not agree with what is proposed.  Maria deSimone thanked the Council for taking on this initiative and encouraged the Council to  approve second reading. Mayor Pro Tem Smith Hymes asked for a small edit to be applied to  one of the “Whereas” statements in Ordinance 17‐08. Council agreed to the change. Mayor Pro  Tem Smith Hymes made a motion to approve Second Reading of Ordinance 17‐08, thereby    TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, OCTOBER 10, 2017  AVON TOWN HALL, ONE LAKE STREET  Page 2    adopting a new Chapter 8.38 of Title 8 of the Avon Municipal Code establishing disposable bag  requirements, including a disposable paper bag fee and providing for the collection and  designation of such fee. The motion included the selection of alternate language Option A  (Upon the effective date, Retailers shall be required to remit one hundred percent (100%) of the  Disposable Paper Bag Fee to the Town) with a change to include that "For the first twelve (12)  months following the effective date of the Disposable Paper Bag Fee, each Retailer may retain  twenty percent (20%) of the Disposable Paper Bag Fee to be taken as a Retailer credit against  the Disposable Paper Bag Fee due to the Town. The remaining eighty percent (80%) of the  Disposable Bag Fee shall be remitted to the Town. Thereafter the entirety of all collected  Disposable Bag Fees shall be remitted to the Town." Council Gennett seconded the motion and  the motion passed on a vote of 4 to 2, with Councilor Wolf and Councilor Burch voting no.  Councilor Phillips was absent. Councilor Gennett joined the meeting during this item.     6.2. PUBLIC HEARING SECOND READING OF ORDINANCE 17‐14, APPROVING A CODE TEXT AMENDMENT  APPLICATION AMENDING TITLE 7 AND THE DEFINITION OF FAMILY (PLANNING DIRECTOR MATT PIELSTICKER)  Mayor Fancher opened the public hearing and no comments were made. Councilor Burch made  a motion to approve Second Reading of Ordinance 17‐14, thereby approving a Code Text  Amendment Application amending Title 7: Development Code, and the definition of Family.  Mayor Pro Tem Smith Hymes seconded the motion and the motion passed unanimously by  those present. Councilor Phillips was absent.    6.3.  FIRST READING OF ORDINANCE 17‐15 FOR CAPITAL LEASE PURCHASE (ASSISTANT TOWN MANAGER SCOTT  WRIGHT)  Michael Cacioppo commented on this item. Councilor Gennett made a motion to approve First  Reading of Ordinance 17‐15, an ordinance authorizing the execution and delivery of a state and  municipal lease/purchase agreement dated October 5, 2017 between the Town of Avon and  Commerce Bank to purchase a lift truck and plow truck pursuant to Exhibit A of such  agreement. Mayor Pro Tem Smith Hymes seconded the motion and the motion failed on a vote  of 3 to 3, with Councilor Prince, Councilor Burch and Councilor Wolf voting no. Councilor Phillips  abstained from the vote. Councilor Prince made a motion to direct staff to purchase the two  pieces of equipment with cash and to submit a budget amendment to transfer funds so that  Real Estate Transfer Tax dollars are used to buy the equipment. Councilor Wolf seconded the  motion and the motion failed on a vote of 3 to 3, with Mayor Fancher, Mayor Pro Tem Smith  Hymes and Councilor Gennett voting no. Councilor Phillips abstained from the vote. Councilor  Gennett made a motion to approve First Reading of Ordinance 17‐15, an ordinance authorizing  the execution and delivery of a state and municipal lease/purchase agreement dated October 5,  2017 between the Town of Avon and Commerce Bank to purchase a lift truck and plow truck  pursuant to Exhibit A of such agreement. Councilor Wolf seconded the motion and the motion  passed on a vote of 4 to 2, with Councilor Prince and Councilor Burch voting no. Councilor  Phillips abstained from the vote. Councilor Phillips joined the meeting during this item.         TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, OCTOBER 10, 2017  AVON TOWN HALL, ONE LAKE STREET  Page 3    6.4. RESOLUTION 17‐21 IN SUPPORT OF EAGLE COUNTY’S BALLOT QUESTION 1A (DEPUTY TOWN MANAGER      PRESTON NEILL)  Councilor Wolf made a motion to approve Resolution 17‐21, in Support of Eagle County’s Ballot  Question 1A. Councilor Gennett seconded the motion and the motion passed unanimously.    6.5. REVIEW AND ACTION TO SOLICIT PRIVATE BUSINESSES FOR LEASING FIRE STATION #7 FOR INTERIM EMPLOYEE      HOUSING (PLANNING DIRECTOR MATT PIELSTICKER)  Councilor Wolf made a motion to authorize the Town Manager to solicit private businesses for  leasing portions of Fire Station #7 for interim employee housing, selection by lottery of the  successful firm and lease execution; and authorization of $16,000.00 from the Affordable  Housing Fund for improvements at the next budget amendment, with all rents being accounted  for in the Affordable Housing Fund. Councilor Wolf also added a condition to cap the rents at  $700 per month. Councilor Gennett seconded the motion. Councilor Prince made a suggestion  to include add "and all expenses" to the second bullet of the motion. Councilor Wolf amended  his motion to include the suggested language. Councilor Gennett accepted the amended  motion. The motion passed on a vote of 6 to 1 with Councilor Phillips voting no.      6.6. CONSENT AGENDA     6.6.1. APPROVAL OF RESOLUTION 17‐22 SUPPORTING THE GRANT AGREEMENT BETWEEN THE TOWN OF AVON,    ACTING AS FISCAL AGENT, ON BEHALF OF WALKING MOUNTAINS SCIENCE CENTER AND THE STATE     BOARD OF THE GREAT OUTDOORS COLORADO TRUST FUND (DEPUTY MANAGER PRESTON NEILL)  Councilor Gennett made a motion to approve the Consent Agenda, without item 6.6.2  “Approval of Minutes from September 26, 2017 Council Meeting.” Councilor Wolf  seconded the motion and the motion passed unanimously.       6.6.2. APPROVAL OF MINUTES FROM SEPTEMBER 26, 2017 COUNCIL MEETING (DEPUTY TOWN MANAGER     PRESTON NEILL)   Councilor Prince and Councilor Burch provided various edits to the minutes. Councilor  Burch moved to approve the minutes with the edits provided. Mayor Pro Tem Smith  Hymes seconded the motion and the motion passed on a vote of 6 to 1. Councilor Wolf  voted no.    7. WORK SESSION  7.1. REVIEW AND DIRECTION IN REGARDS TO 2018 SPECIAL EVENTS FUNDING, AS RECOMMENDED BY THE AD HOC   SPECIAL EVENTS COMMITTEE (AHSEC CHAIR BOBBY BANK)  Bobby Bank, Ad Hoc Special Events Committee Chair, presented this item. Michael Cacioppo,  Tom Dobrez, Ruthie Stanley, and Tom Butz commented. Council provided direction to staff to  move forward as presented. Additional direction was provided to staff to continue working to  invest in capital equipment to lower costs to producers. Finally, direction was provided to the  Town Manager to write into special event agreements two general admission tickets for each    TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, OCTOBER 10, 2017  AVON TOWN HALL, ONE LAKE STREET  Page 4    Council member and each member of the Ad Hoc Special Events Committee. Councilor Gennett  left the meeting during this item.     7.2. REVIEW AND DIRECTION IN REGARDS TO 2018 COMMUNITY GRANT PROGRAM FUNDING, AS RECOMMENDED BY  THE AD HOC REVIEW COMMITTEE (DEPUTY TOWN MANAGER PRESTON NEILL)  Michael Cacioppo commented on this item. Council provided direction to staff to move forward  with the recommended award amounts, as presented. Direction was also given to staff to have  non‐profits identify on future applications what their liquor permit proceeds have been.     8. WRITTEN REPORT  8.1. REVIEW OF LAW REGARDING REMOVAL OF A DISRUPTIVE CITIZEN(S) AND DIRECTION TO THE AVON TOWN  ATTORNEY FOR ANY MODIFICATIONS TO PROCEDURES  Michael Cacioppo and Todd Rohr commented on this written report.    9. MAYOR & COUNCIL COMMENTS & MEETING UPDATES   Councilor Phillips remarked that the EGE Air Alliance recently held a board retreat.    10. ADJOURNMENT   There being no further business to come before the Council, Mayor Fancher moved to adjourn the  regular meeting.  Councilor Phillips seconded the motion and the motion passed unanimously by those  present. Councilor Gennett was absent. The time was 9:27 p.m.      These minutes are only a summary of the proceedings of the meeting.  They are not intended to be  comprehensive or to include each statement, person speaking or to portray with complete accuracy.  The  most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk’s  office, and the video of the meeting, which is available at www.highfivemedia.org.                                 TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, OCTOBER 10, 2017  AVON TOWN HALL, ONE LAKE STREET  Page 5        RESPECTFULLY SUBMITTED:                                                      ________________________________                                                   Preston Neill, Deputy Town Manager  APPROVED:    Jennie Fancher  ________________________________     Sarah Smith Hymes  ________________________________     Jake Wolf    ________________________________      Megan Burch  ________________________________     Matt Gennett    ________________________________     Scott Prince  ________________________________      Amy Phillips  ________________________________  2018-19 Budget Work Session ALL TOWN FUNDS Page 1 of 7 TOWN COUNCIL REPORT To: Honorable Mayor Jennie Fancher and Avon Town Council From: Scott Wright, Finance Director Virginia C. Egger, Town Manager Date: October 24, 2017 Re: 2018 Budget Work Session – All Funds PURPOSE OF THE BUDGET WORK SESSION The 2017-2019 Strategic Plan as adopted by Town Council on July 25, 2017. The Strategic Plan serves to help guide decision-making and provide the structure for ensuring that investments and programs reflection and programs reflect Council priorities in achieving the vison and adopted plans of the Town of Avon. The 2018-2019 Town budget, comprised of ten (10) funds, is developed to successfully implement the Strategic Plan’s strategies, which require funding. Town Council budget work sessions, which provided direction to staff for budget development, to date, have included: •August 22: Revenue projections and funding levels for Community Grants and SpecialEvents •September 26: Capital Projects Fund, Affordable Housing Fund, Community Enhancement Fund, Debt Service Fund and Water Fund Tuesday’s work session presents draft budgets for the General, Transit, Fleet and Equipment Replacement Funds. SUMMARY OF PREVIOUS BUDGET WORK SESSIONS September 26 – Worksession At the September 26 work session, staff reviewed the Capital Projects Fund, Affordable Housing Fund, Community Enhancement Fund, Debt Service Fund, and Water Fund budgets. August 22 - Worksession Revenue Projections Sales Tax Revenues: Use 1.5% increase for 2017. For 2018 and 2019 projections amounts remain flat. 2018-19 Budget Work Session ALL TOWN FUNDS Page 2 of 7  Accommodation Taxes: Use year-to-date 2017 collections plus 2016 remaining monthly actuals for 2017 projection. For 2018 projection, use projected 2017 collections and reduce by 1%, for 2019,the projection remains flat.  Avon Recreation Center Admission Fees: No change in rates in resident monthly pass rates.  Fleet Maintenance Shop Rates: No change for shop labor rates for 2018 or 2019.  Real Estate Transfer Taxes: Supported an estimated amount of $2.2 million for base level transfer tax revenues. In addition, supported reserving additional amounts received from Wyndham Vacation Ownership sales of up to $3.5 million in 2017 and 2018 for purposes of funding the Town-owned Properties program currently under study. August 22 – Community Grants  Town Council agreed with the staff recommendation of a total not-to-exceed allocation of $161,000 for community funding. August 22 – Special Events  Town Council agreed with the Ad Hoc Special Events Committee’s recommendation of a total not-to-exceed Special Events Reserve funding of $500,000. SUMMARY OF MAJOR SERVICES, IMPROVEMENTS & PROJECTS 2018-2019 BUDGET SUMMARY OF FUND ACTIVITY The following information provides Revenue and Expenditure changes by Fund as well as major activities. The 2018 Proposed Budget provides department narratives, staffing levels, 2017 major accomplishments, performance metrics and line item detail. GENERAL FUND General Fund Budget: 2017 2018 2019 Total General Fund Revenues: $ 16,778,451 $ 16,580,030 $ 16,582,074 Total General Fund Expenditures: 16,934,241 16,539,920 16,581,285 Total Change $ (155,790) $ 40,110 $ 789 For 2017, General Fund transfers-out to the Capital Projects Fund are budgeted at $1,120,000. The majority of these transfers - $1,000,000 - represent undesignated 2017 General Fund reserves over and above the Town’s 3% TABOR Emergency Reserve and the 25% minimum reserve balance, and any other assigned or committed fund balances. The remaining $120,000 in transfers-out to the Capital Projects Fund are required pursuant to the Town’s agreement with Traer Creek for the purpose of future asphalt overlays in the Village at Avon. There are no transfers-out budgeted to go to the Capital Projects Fund for 2018 or 2019 at this time. After completion of the 2017 annual audit, and after reviewing of revenue trendlines and non-discretionary costs, consideration will be given to budgeting a transfer-out to the Capital Fund of undesignated fund balances. 2018-19 Budget Work Session ALL TOWN FUNDS Page 3 of 7 Detailed Expenditures by Department General Government 2018 Proposed Budget $ 1,212,848 2019 Proposed Budget $ 1,210,969 2017 Revised Budget 1,200,332 2018 Proposed Budget 1,212,848 Total Change $ 12,516 Total Change $ (1,879) - For 2018 a Town clean-up day has been budgeted at $1,000. - The budget does not include any funding, at this time, for broadband implementation, pending the outcome of the November 7th election. - Funding of $2,500 has been provided for the Town Council for consulting and training. In addition, $3,600 has been included for professional development for CAST meetings, the CML Conference, and the Creative Industries Summit. - Beginning January 1, 2018, the Deputy Town Clerk salary will be split 50/50 between the Town Clerk and Municipal Court, and that position will no longer assist the Police Dept. - In Community Relations, $25,000 has been included for a community survey. Human Resources Department 2018 Proposed Budget $ 503,153 2019 Proposed Budget $ 480,048 2017 Revised Budget 445,365 2018 Proposed Budget 503,153 Total Change $ 57,788 Total Change $ (23,105) - Employee Compensation - Since 2014, the Town has implemented a successful annual market survey, studying comparable salary data for the Towns of Vail and Breckenridge and Eagle County. Over the past two years Breckenridge and Eagle County have implemented new salary ranges, which have been determined are not comparable to Avon’s salary ranges, and, therefore, apples-to-apples comparisons. The entities have based their new salary ranges on salary studies conducted by Mountain States Employment Council recommendations. For 2018, we are recommending that our salary ranges remain at the current levels and that we delay any market changes until Avon also conducts a salary study by Mountain States. The budget recommendation for the study is $15,000. For 2018, all staff, based upon successful performance evaluations, will be awarded either a one-step salary increase in the current step program, or a 2% top-of-range bonus. The average increase for all step increases and/or bonuses is 3.01%, or an increase of $187,286, over 2017 levels. For 2019, a placeholder of 2% has been incorporated into the budget. - Health, Dental and Life Insurance Benefits - Based on the Town’s pre-renewal analysis, including trended paid claims and estimated increases for stop loss insurance, the Town’s overall cost for health, dental/vision and life insurance coverages is projected to increase by 7.85% or $148.33 PMPE. There are no projected changes in employee plan coverages. - Over the past three years, the Town has been able to maintain employee premiums at a flat line. However, due to ever-increasing health care costs, for 2018 employee premiums will increase slightly. . The increase will be apportioned to the Town and to Employees at the same ratios as currently in place. For an employee with only single coverage, the 2018-19 Budget Work Session ALL TOWN FUNDS Page 4 of 7 total increase for medical, dental, vision and prescription will be $3.16 per month. For an employee with one family member covered, the increase will be $6.90. For an employee plus all family, the increase will be $9.98 per month. - $6,000 for supervisory town-wide training has been included for 2018. - $9,900 has been added to centralize within the HR department alcohol and drug testing and DOT physicals for all town employees. - $25,340 for AnalyticsNOW, an enterprise license with metadata links developed specifically for the Superion FinancePlus suite of applications that the Town utilizes for personnel onboarding, payroll and fund accounting functions. An unlimited number of users will be able to develop and use reports and utilize dashboards to assist and gain efficiencies in several HR related processes. Finance, IT and Nondepartmental 2018 Proposed Budget $ 1,953,038 2019 Proposed Budget $ 1,981,845 2017 Revised Budget 1,781,911 2018 Proposed Budget $ 1,953,038 Total Change $ 171,127 Total Change $ 28,807 - A new Senior Accountant position is included for the 2018 year. This position will be responsible for the budgeting process, and will provide accounting support with monthly accounting duties, cross-training and backup, and special projects. This Senior Accountant position, along with the Senior Accountant–Tax position are important to the Finance department’s ability to handle growth demands and are key to succession planning. - $10,000 for PubWorks data conversion and training in 2018 for the transfer of Town fixed assets to the PubWorks asset management module. PubWorks is a comprehensive, GIS-integrated asset and management software and is a solution that provides seamless integration among departments managing work orders, service requests, fixed assets, fleet maintenance and job costing. The Town previously purchased the PubWorks software in 2016 for use in the Public Works department. In addition, the fleet maintenance module along with data conversion and training is included in the Fleet Maintenance Fund budget for 2018. - $51,578 in 2018 and 2019 to continue the Host Compliance program for the Town’s short-term rental licensing and compliance efforts. - $21,980 in 2019 for the Superion (formerly SunGard) fund accounting software upgrade. Community Development Department 2018 Proposed Budget $ 1,306,469 2019 Proposed Budget $ 1,320,764 2017 Revised Budget 1,529,951 2018 Proposed Budget 1,306,469 Total Change $ (223,482) Total Change $ 14,295 - A planning estimate of $30,000 is budgeted for consultant work in developing the Creative District. - Community Grants are budgeted at $161,000, including a contingency of $7,600. - Special Event Funding, in the amount of $500,000, has been aggregated into program 216 and renamed Special Event Funding. Funding is provided from 2018 new revenues totaling $400,000, 2018-19 Budget Work Session ALL TOWN FUNDS Page 5 of 7 and 2017 carry-over monies of $100,000, as a one-year transitional funding in response to the 2018 revenue projections. Police Department 2018 Proposed Budget $ 3,631,929 2019 Proposed Budget $ 3,572,668 2017 Revised Budget 3,304,540 2018 Proposed Budget 3,631,929 Total Change $ 327,389 Total Change $ (59,261) - With sales tax projections held flat and lodging taxes projected to decline, several items requested by the department are being delayed until a mid-year review. These include phasing of audio visual and furniture acquisitions until the new facility has been “lived in” for a period of time, phasing of police car replacement, and small tool acquisitions. The phasing review has current savings of $105,000 in the budget. - Part-time wages for an administrative assistant are included in the 2018 and 2019 budget. - For 2018, software costs of $59,000 has been included for an upgrade to the County records management system in which the Town participates. An additional cost of $25,000 was included in the 2017. budget These amounts represent the Town’s 15.12% share of the overall cost of the upgrade estimated at $550,000. Public Works - (Roads and Streets and Parks divisions) 2018 Proposed Budget $ 3,034,501 2019 Proposed Budget $ 3,203,889 2017 Revised Budget 2,924,875 2018 Proposed Budget 3,034,501 Total Change $ 109,626 Total Change $ 169,388 - Monies to assess Avon’s trees on Town-owned lands for disease is funding at $4,000. - Additional contractor landscape funding in the amount of $25,000, is budgeted to improve maintenance of landscaping on Lake Street Engineering – (Town Engineer and Buildings and Facilities divisions) 2018 Proposed Budget $ 1,478,588 2019 Proposed Budget $ 1,446,263 2017 Revised Budget 1,464,921 2018 Proposed Budget 1,478,588 Total Change $ 13,667 Total Change $ (32,325) - With the Energy Navigator monitoring systems being installed, the next step in implementing the Climate Action Plan is to conduct a Level 3 Energy Audit and Establishment of the CO2 Baseline. The cost for the Fleet Building is $25,000. - Includes all janitorial services, utilities and repairs and maintenance for Town buildings except for the Avon Regional Transportation Facility and the Fleet Maintenance Facility. Those facilities reside in enterprise funds are are budgeted in their respective fund. Recreation Department 2018 Proposed Budget $ 1,517,394 2019 Proposed Budget $ 1,559,839 2017 Revised Budget 1,411,931 2018 Proposed Budget 1,517,394 Total Change $ 105,463 Total Change $ 42,445 2018-19 Budget Work Session ALL TOWN FUNDS Page 6 of 7 - In 2017 the Recreation Department implemented the Avon Community Swim Program after a thorough review of the previous program and hired a swim program supervisor. For 2018 and 2019 a separate program budget has been developed, including private instruction, a part-time swim coach at 10 hrs./wk. for 42 wks., a part-time swim instructor at 5 hrs./wk. for 36 wks., and a master swim coach at 20 hrs./wk. for 12 weeks. FLEET MAINTENANCE ENTERPRISE FUND Fleet operations for the maintenance of Town rolling stock and equipment, as well as third party contracts for fleet services are budgeted within the Fleet Maintenance Enterprise Fund 2018 Proposed Budget $ 1,693,973 2019 Proposed Budget $ 1,703,472 2017 Revised Budget 1,622,757 2018 Proposed Budget 1,693,973 Total Change $ 71,216 Total Change $ 9,499 - Historically, a subsidy from the General Fund has been made to fleet maintenance to cover the capital cost of the Fleet Maintenance facility. The principal and interest on the debt for 2018 is $253,906. General Fund transfers in the amount of $415,000 and 425,000 respectively, are provided in both 2018 and 2019 to balance the budget. - As mentioned above, the PubWorks fleet maintenance module for job costing and work order billings is included in the 2018 budget in the amount of $19,575. - Shop rates for both 2018 and 2019 are budgeted to remain at their current 2017 levels. TRANSIT ENTERPRISE FUND Transit operations, management of the Avon Regional Transportation Facility and wash bay revenues and expenditures are budgeted within the Transit Enterprise Fund. 2018 Proposed Budget $ 1,687,784 2019 Proposed Budget $ 1,630,579 2017 Revised Budget 2,132,062 2018 Proposed Budget 1,687,784 Total Change $ (444,278) Total Change $ (57,205) - The total General Fund subsidy to support the Transit Fund in 2018 is $1,167,000. This compares favorably to the final revised 2017 budget of $1,390,415. - Service hours for 2018 are set at 14,639 hours and includes five routes during the winter months: the Blue, Red and Night Rider routes, a skier shuttle and an evening restaurant shuttle. - Revenues have been increased for the FTA operations award of $75,000 and increased $20,000 Beaver Creek Resort contribution to the skier shuttle and dinner bus. - Year-round funding for evening bus service from 6:00 to 10:00 p.m. is budgeted with Avon running the service and ending the contract with Peak One, for a savings of approximately $35,000. - Addition of one FTE and commensurate reduction in seasonal drivers to increase efficiency; average net cost is $25,000 for full-time benefits. - Continuation of the Zagster bike share program. 2018-19 Budget Work Session ALL TOWN FUNDS Page 7 of 7 EQUIPMENT REPLACEMENT INTERNAL SERVICE FUND 2018 Proposed Budget $ 584,517 2019 Proposed Budget $ 502,014 2017 Revised Budget 479,863 2018 Proposed Budget 584,517 Total Change $ 104,654 Total Change $ (82,503) - Annual expenditures are determined by equipment replacement schedules for equipment placed into the Fund at time of purchase; annual variations occur due to varying estimated useful lives. - Significant replacements budgeted for 2018 include police patrol vehicles (3). a streetsweeper,. and an excavator for the Town’s fleet, replacement rowers, recumbent bikes and upright bikes in the Recreation Center, new network switches, a large format copier for engineering, and a pavement cutter, lawn mower and field paint sprayer. ATTACHMENTS: Exhibit 1 – General Fund Budget Summary Exhibit 2 – Fleet Maintenance Budget Summary Exhibit 3 – Transit Budget Summary Exhibit 4 – Equipment Replacement Budget Summary Page 1 Fund Summary Original or Final Prev. Amend.Revised Proposed Proposed Actual Budget Budget Budget Budget 2016 2017 2017 2018 2019 REVENUES Taxes 12,672,461$ 12,900,212$ 12,770,684$ 12,828,034$ 12,828,034$ Licenses and Permits 259,997 206,100 323,878 226,100 226,100 Intergovernmental 1,014,141 1,032,778 1,055,129 1,029,926 1,008,926 Charges for Services 1,543,296 1,748,077 1,665,189 1,615,108 1,616,358 Fines and Forfeitures 91,014 92,445 92,445 92,445 92,445 Investment Earnings 73,208 75,000 135,000 135,000 150,000 Other Revenue 407,333 329,900 429,799 420,300 420,100 Total Operating Revenues 16,061,450 16,384,512 16,472,124 16,346,913 16,341,963 Other Sources Capital Lease Proceeds - - 80,000 - - Transfer-In From Capital Projects Fund 219,735 226,327 226,327 233,117 240,111 Total Other Sources 219,735 226,327 306,327 233,117 240,111 TOTAL REVENUES 16,281,185$ 16,610,839$ 16,778,451$ 16,580,030$ 16,582,074$ EXPENDITURES General Government 3,103,970$ 3,461,108$ 3,427,608$ 3,669,039$ 3,672,862$ Community Development 1,201,086 1,539,520 1,529,951 1,306,469 1,320,764 Public Safety 3,122,942 3,396,218 3,304,540 3,631,929 3,572,668 Public Works 3,823,374 4,608,512 4,389,796 4,513,089 4,650,152 Recreation 1,293,277 1,452,275 1,411,931 1,517,394 1,559,839 Total Operating Expenditures 12,544,649 14,457,633 14,063,826 14,637,920 14,776,285 Contingency - 194,493 - 200,000 75,000 Other Uses Transfers-Out to Town Center West Fund 77,576 - - - - Transfers-Out to Capital Projects Fund 1,670,000 1,120,000 1,120,000 120,000 120,000 Transfers-Out to Transit 1,134,994 1,408,000 1,390,415 1,167,000 1,185,000 Transfers-Out to Fleet Maintenance 450,000 400,000 360,000 415,000 425,000 Total Other Uses 3,332,570 2,928,000 2,870,415 1,702,000 1,730,000 TOTAL EXPENDITURES 15,877,219 17,580,126 16,934,241 16,539,920 16,581,285 NET SOURCE (USE) OF FUNDS 403,966 (969,287) (155,790) 40,110 789 FUND BALANCES, Beginning of Year 5,659,925 6,063,891 6,063,891 5,908,101 5,948,211 FUND BALANCES, End of Year 6,063,891$ 5,094,604$ 5,908,101$ 5,948,211$ 5,949,000$ FUND BALANCES: Nonspendable -$ -$ -$ -$ -$ Restricted For: 3% TABOR Emergency Reserve 664,805 664,805 664,805 664,805 664,805 Assigned For: Special Events - - - 100,000 100,000 Capital Improvements - - - - - Unassigned: 25% Minimum Reserve Balance 3,551,805 4,066,408 3,953,560 4,054,980 4,096,571 Undesignated, Unreserved 1,847,281 363,391 1,289,736 1,128,426 1,087,624 TOTAL FUND BALANCES 6,063,891$ 5,094,604$ 5,908,101$ 5,948,211$ 5,949,000$ MUNICIPAL SERVICESGeneral Fund #10 EXHIBIT 1 Page 2 Original or Final Prev. Amend.Revised Proposed Proposed Account Actual Budget Budget Budget Budget Number Description 2016 2017 2017 2018 2019 Taxes: 51101 General Property Tax 1,740,308$ 1,735,425$ 1,735,425$ 1,836,085$ 1,836,085$ 51102 General Property Tax - Delinquent Collections - 500 500 500 500 51103 General Property Tax - Interest 2,999 1,000 1,673 1,500 1,500 51104 General Property Tax - Abatements (1,000) - - - - 51201 Specific Ownership Tax 119,483 120,000 120,000 120,000 120,000 51301 Sales Tax 8,097,130 8,421,015 8,218,606 8,218,606 8,218,606 51302 Utility Tax 102,643 110,000 110,000 110,000 110,000 51303 Accommodation Tax 1,289,879 1,367,272 1,319,538 1,306,343 1,306,343 51304 Penalties and Interest 30,487 25,000 25,000 25,000 25,000 51305 Sales Tax Audit Assessments 122,764 5,000 20,000 5,000 5,000 51307 VAA Retail Sales Fee 735,280 700,000 781,822 775,000 775,000 51402 Franchise Fees 432,488 415,000 438,120 430,000 430,000 51000 Total Taxes 12,672,461 12,900,212 12,770,684 12,828,034 12,828,034 Licenses and Permits: 52101 Liquor Licenses 8,234 7,000 7,000 7,000 7,000 52102 Business Licenses 87,510 65,000 84,678 85,000 85,000 52103 Contractor's Licenses 12,520 10,500 10,500 10,500 10,500 52201 Building Permits 143,642 115,000 185,000 115,000 115,000 52205 Road Cut Permits 7,615 8,000 11,100 8,000 8,000 52207 Mobile Vendor Cart Permits 476 600 600 600 600 52209 School Site In-lieu-of Payment - - 25,000 - - 52000 Total Licenses and Permits 259,997 206,100 323,878 226,100 226,100 Intergovernmental: Federal Grants: 53106 Click It or Ticket 8,360 5,500 5,500 5,500 5,500 53107 Ballistic Vests 2,320 2,000 2,000 2,000 2,000 State Grants 53204 LEAF Grant 31,422 23,000 23,000 18,000 18,000 53206 High Visibility Grant 24,140 27,000 27,000 20,000 20,000 53299 Other State Grants 33,048 21,852 34,203 21,000 - Local Government/Other Agency 53402 Eagle County - Childcare 6,677 - - - - 53900 Eagle River Youth Coalition 570 8,500 8,500 8,500 8,500 Subtotal: Grants 106,537 87,852 100,203 75,000 54,000 State/County Shared Revenue: 53301 Conservation Trust 72,226 62,000 72,000 72,000 72,000 53302 Motor Vehicle Registration 24,639 22,000 22,000 22,000 22,000 53303 Highway User's Tax 193,388 201,963 201,963 201,963 201,963 53304 Cigarette Tax 43,200 42,000 42,000 42,000 42,000 53305 County Sales Tax 445,043 483,743 483,743 483,743 483,743 53306 Road & Bridge Fund 128,078 132,220 132,220 132,220 132,220 53308 State Severance Tax 1,030 1,000 1,000 1,000 1,000 Subtotal: Shared Revenue 907,604 944,926 954,926 954,926 954,926 53000 Total Intergovernmental 1,014,141 1,032,778 1,055,129 1,029,926 1,008,926 Revenue Detail MUNICIPAL SERVICESGeneral Fund EXHIBIT 1 Page 3 Original or Final Prev. Amend.Revised Proposed Proposed Account Actual Budget Budget Budget Budget Number Description 2016 2017 2017 2018 2019 Revenue Detail MUNICIPAL SERVICESGeneral Fund Charges for Services: General Government: 54102 Photocopying Charges 14$ 300$ 300$ 300$ 300$ 54103 License Hearing Fees - 100 100 100 100 54104 Other Fees and Charges 1,828 1,250 1,250 1,250 1,250 54105 CC & Paper Filing Fees 2,332 - - - - 54201 Plan Check Fees 104,641 95,000 95,000 95,000 95,000 54202 Subdivision Review Fees 916 1,000 1,000 1,000 1,000 54203 Design Review Fees 15,754 14,295 14,295 14,295 14,295 54204 Animal Control Fees 590 500 500 500 500 54206 Fire Impact Fee Administration Fees 832 750 750 750 750 54301 Police Reports 713 600 600 600 600 54302 Police Extra Duty 18,564 25,000 25,000 25,000 25,000 54303 Fingerprinting Fees 5,547 4,500 4,500 5,000 5,000 54304 VIN Inspection Fees 18,030 18,000 18,000 5,000 5,000 54305 False Alarm Fees/Misc Police Dept Fees 240 500 500 500 500 54306 National Night Out 1,430 2,000 2,000 2,000 2,000 54399 DUI Reimbursement 19,063 24,250 24,250 24,250 24,250 Subtotal: General Govern.190,494 188,045 188,045 175,545 175,545 Recreation Facility: 54601 Admission Fees 901,307 888,200 925,000 915,000 915,000 54602 Program Fees 46,582 88,810 88,810 94,580 94,580 54603 Rentals 49,426 45,000 45,000 42,500 42,500 54604 Merchandise Sales 8,598 8,500 8,500 8,500 8,500 54606 Rec Center Services 10,603 9,200 9,200 10,000 10,000 54607 Fitness Program Revenues 50,159 52,000 52,000 50,125 51,000 Other Recreation: 54651 Adult Program Revenues 19,378 25,350 25,350 24,921 25,921 54652 Cabin Equipment Rentals 17,542 13,500 22,000 17,500 17,500 54653 Athletic Field Rentals 8,535 - 2,000 2,000 2,000 54655 Youth Program Revenues 149,700 145,565 145,565 215,625 215,000 54670 Ticket Sales - 192,250 84,500 - - 54671 Revenues from Vendor Sales - 12,000 7,040 - - 54676 Sponsorships 38,000 40,000 25,600 38,000 38,000 54678 Event Fees 11,937 20,100 20,100 10,525 10,525 54679 Special Event Admission Fees 41,035 19,557 16,479 10,287 10,287 Subtotal: Recreation 1,352,802 1,560,032 1,477,144 1,439,563 1,440,813 54000 Total Charges for Services 1,543,296 1,748,077 1,665,189 1,615,108 1,616,358 Fines and Forfeitures: 55101 Court Fines - Traffic 47,006 51,300 51,300 51,300 51,300 55102 Court Fines - Criminal 22,958 21,000 21,000 21,000 21,000 55103 Court Fines - Parking 7,245 6,735 6,735 6,735 6,735 55105 Court Costs 7,280 7,000 7,000 7,000 7,000 55106 Jury Fees - 100 100 100 100 55107 Bond Forfeitures 250 100 100 100 100 55110 Police Training Surcharge 6,275 6,210 6,210 6,210 6,210 55000 Total Fines and Forfeitures 91,014 92,445 92,445 92,445 92,445 EXHIBIT 1 Page 4 Original or Final Prev. Amend.Revised Proposed Proposed Account Actual Budget Budget Budget Budget Number Description 2016 2017 2017 2018 2019 Revenue Detail MUNICIPAL SERVICESGeneral Fund Investment Earnings: 57101 Interest 73,208$ 75,000 135,000$ 135,000$ 150,000$ 57000 Total Investment Earnings 73,208 75,000 135,000 135,000 150,000 Other Revenues: 58101 Recreational Amenity Fees 250,468 235,000 325,000 325,000 325,000 58109 Bond Issuance Fees 10,696 9,800 10,532 10,200 10,000 58201 Lease of Town-Owned Property 46,662 40,000 40,000 40,000 40,000 58999 Miscellaneous Nonclassified Revenues 99,507 45,100 54,267 45,100 45,100 58000 Total Other Revenues 407,333 329,900 429,799 420,300 420,100 50000 TOTAL REVENUES 16,061,450$ 16,384,512$ 16,472,124$ 16,346,913$ 16,341,963$ EXHIBIT 1 Page 5 Department Expenditure Summaries Original or Final Prev. Amend.Revised Proposed Proposed Dept./Div.Actual Budget Budget Budget Budget Number Description 2016 2017 2017 2018 2019 General Government: 111 Mayor and Town Council 207,490$ 221,972$ 218,786$ 226,760$ 227,260$ 112 Boards and Commissions 12,454 18,066 18,192 16,049 16,049 113 Town Attorney 133,145 132,000 132,000 132,000 132,000 115 Town Clerk 135,048 126,191 124,455 117,913 120,153 121 Municipal Court 106,594 129,000 137,287 148,899 153,829 131 Town Manager 364,898 405,797 382,240 375,561 383,906 133 Community Relations 124,692 187,497 187,372 195,666 177,772 Subtotal General Government 1,084,321 1,220,523 1,200,332 1,212,848 1,210,969 Human Resources: 132 Human Resources 416,018 439,677 445,365 503,153 480,048 Finance and IT: 141 Finance 802,661 911,500 886,438 1,021,522 1,050,218 143 Information Systems 380,891 406,753 400,647 434,262 438,849 149 Nondepartmental 420,079 482,655 494,826 497,254 492,778 Subtotal Finance and IT 1,603,631 1,800,908 1,781,911 1,953,038 1,981,845 Total General Government and Finance 3,103,970 3,461,108 3,427,608 3,669,039 3,672,862 Community Development: 212 Planning 215,001 283,033 282,393 281,940 283,621 213 Building Inspection 141,694 149,265 148,302 151,049 153,263 214 Economic Development 37,147 - - - - 215 Town Produced Events 291,225 563,831 595,419 215,480 225,880 216 Special Event Funding Funding 307,788 360,771 296,217 400,000 400,000 217 Community Grants 208,231 182,620 207,620 161,000 161,000 218 Salute to the USA - - - 97,000 97,000 Total Community Development 1,201,086 1,539,520 1,529,951 1,306,469 1,320,764 Police Department: 311 Administration 535,815 686,574 685,087 775,392 729,506 312 Patrol 2,332,791 2,438,204 2,352,401 2,570,770 2,541,865 313 Investigations 254,336 271,440 267,052 285,767 301,297 Total Police Department 3,122,942 3,396,218 3,304,540 3,631,929 3,572,668 Public Works Engineering: 412 Engineering 267,207 251,376 245,969 283,636 312,293 418 Buildings and Facilities 1,085,263 1,293,193 1,218,952 1,194,952 1,133,970 Roads and Bridges: 413 Roads and Bridges 1,400,312 2,357,162 2,259,519 2,362,984 2,507,016 415 Parks and Grounds 1,070,592 706,781 665,356 671,517 696,873 Total Public Works Department 3,823,374 4,608,512 4,389,796 4,513,089 4,650,152 MUNICIPAL SERVICES General Fund EXHIBIT 1 Page 6 Department Expenditure Summaries Original or Final Prev. Amend.Revised Proposed Proposed Dept./Div.Actual Budget Budget Budget Budget Number Description 2016 2017 2017 2018 2019 MUNICIPAL SERVICES General Fund Recreation Department: 514 Administration 241,114 227,282 227,743 237,063 245,425 515 Adult Programs 50,914 56,087 55,962 61,906 53,757 516 Aquatics 441,428 574,478 533,684 542,219 543,545 518 Fitness 136,161 150,785 150,645 144,227 144,227 519 Guest Services 295,102 297,882 308,017 325,124 326,497 521 Youth Programs 128,558 145,761 135,880 149,536 189,069 523 Communtiy Swim Program - - - 57,319 57,319 Total Recreation 1,293,277 1,452,275 1,411,931 1,517,394 1,559,839 TOTAL OPERATING EXPENDITURES 12,544,649$ 14,457,633$ 14,063,826$ 14,637,920$ 14,776,285$ EXHIBIT 1 Page 1 Fund Summary Original or Final Prev. Amend.Revised Adopted Proposed Actual Budget Budget Budget Budget 2016 2017 2017 2018 2019 REVENUES Charges for Services 1,230,556$ 1,279,426$ 1,279,426$ 1,279,426$ 1,279,426$ Other Revenue 4,626 - - - - Total Operating Revenues 1,235,182 1,279,426 1,279,426 1,279,426 1,279,426 Other Sources Transfers-In from General Fund 450,000 400,000 360,000 415,000 425,000 Sales of Fixed Assets 5,400 - - - - Total Other Sources 455,400 400,000 360,000 415,000 425,000 TOTAL REVENUES 1,690,582 1,679,426 1,639,426 1,694,426 1,704,426 EXPENDITURES Public Works: Fleet Maintenance 1,636,907 1,652,546 1,622,757 1,693,973 1,703,472 Total Operating Expenditures 1,636,907 1,652,546 1,622,757 1,693,973 1,703,472 TOTAL EXPENDITURES 1,636,907 1,652,546 1,622,757 1,693,973 1,703,472 NET SOURCE (USE) OF FUNDS 53,675 26,880 16,669 453 954 FUND BALANCES, Beginning of Year 169,474 139,750 223,149 239,818 240,271 FUND BALANCES, End of Year 223,149$ 166,630$ 239,818$ 240,271$ 241,225$ MUNICIPAL SERVICES Fleet Maintenance Enterprise Fund #61 EXHIBIT 2 Page 1 Fund Summary Original or FinalPrev. Amend.Revised Proposed Proposed Actual Budget Budget Budget Budget 2016 2017 2017 2018 2019 REVENUES Taxes 40,258$ 40,397$ 40,297$ 41,532$ 41,532$ Intergovernmental 100,000 328,000 328,000 75,000 - Charges for Services 227,617 239,930 219,351 239,246 239,930 Other Revenues 92,740 93,940 93,940 104,122 104,122 Total Operating Revenues 460,615 702,267 681,588 459,900 385,584 Other Sources Sales of Capital Assets - - - - - Transfers In from General Fund - Operating 1,107,995 1,326,000 1,303,000 1,303,000 1,303,000 Transfers In from General Fund - Capital 26,999 82,000 87,415 - - Total Other Sources 1,134,994 1,408,000 1,390,415 1,303,000 1,303,000 TOTAL REVENUES 1,595,609 2,110,267 2,072,003 1,762,900 1,688,584 EXPENDITURES Administration 235,867 247,060 258,360 271,617 285,236 Operations 1,261,623 1,793,604 1,727,168 1,258,194 1,178,774 Washbay 102,413 130,110 146,534 157,973 166,569 TOTAL EXPENDITURES 1,599,903 2,170,774 2,132,062 1,687,784 1,630,579 NET SOURCE (USE) OF FUNDS (4,294) (60,507) (60,059) 75,116 58,005 FUND BALANCES, Beginning of Year 689,894 685,600 685,600 625,541 700,657 FUND BALANCES, End of Year 685,600$ 625,093$ 625,541$ 700,657$ 758,662$ MUNICIPAL SERVICES Transit Enterprise Fund #52 EXHIBIT 3 Page 2 Revenue Detail Original or FinalPrev. Amend.Revised Proposed Proposed Account Actual Budget Budget Budget Budget Number Description 2016 2017 2017 2018 2019 Taxes: Property Taxes 51101 Property Tax/ Gates GID 40,190$ 40,397$ 40,190$ 41,532$ 41,532$ 51103 Current & Delinquent interest 68 - 107 - - 51000 Total Taxes 40,258 40,397 40,297 41,532 41,532 Intergovernmental: Federal Grants: 53104 FTA Grant - 328,000 328,000 - - 53201 CDOT Operations Grant - - - 75,000 - 53205 CDOT FASTER Grant 100,000 - - - - 53000 Total Intergovernmental 100,000 328,000 328,000 75,000 - Charges for Services: Transportation: 54501 Beaver Creek 104,835 125,000 104,421 124,316 125,000 54507 Wash Bay Services- External 75,852 68,000 68,000 68,000 68,000 54902 Wash Bay Services- Internal 46,930 46,930 46,930 46,930 46,930 54000 Total Charges for Services 227,617 239,930 219,351 239,246 239,930 Other Revenues: 58201 Lease of Town-owned Property 63,405 73,440 73,440 83,122 83,122 58995 Bus Advertising Revenues 29,335 20,500 20,500 21,000 21,000 58999 Miscellaneous Nonclassified Revenues - - - - - 58000 Total Other Revenues 92,740 93,940 93,940 104,122 104,122 Other Sources: 59201 Transfers In - General Fund - Operating 1,107,995 1,326,000 1,324,000 1,167,000 1,185,000 59201 Transfers In - General Fund - Capital 26,999 82,000 87,415 - - 59101 Sales of Capital Assets - - - - - 59000 Total Other Sources 1,134,994 1,408,000 1,411,415 1,167,000 1,185,000 50000 TOTAL REVENUES 1,595,609$ 2,110,267$ 2,093,003$ 1,626,900$ 1,570,584$ MUNICIPAL SERVICESTransit Enterprise Fund #52 EXHIBIT 3 Page 1 Original or Final Prev. Amend.Revised Adopted Proposed Actual Budget Budget Budget Budget 2016 2017 2017 2018 2019 REVENUES Intergovernmental 646,190$ -$ -$ -$ -$ Charges for Services: Equipment Replacement Charges 589,967 646,800 646,800 639,478 639,478 Investment Earnings - - - - - Total Operating Revenues 1,236,157 646,800 646,800 639,478 639,478 Other Sources Sales of Fixed Assets 49,900 15,000 15,000 23,000 21,000 Capital Lease Proceeds - 185,000 275,615 - - Total Other Sources 49,900 200,000 290,615 23,000 21,000 TOTAL REVENUES 1,286,057 846,800 937,415 662,478 660,478 EXPENDITURES Capital Outlay: Fleet and Heavy Equipment 67,411 220,500 311,190 473,485 341,451 Recreation Center Equipment 18,927 8,857 8,857 31,515 160,563 Computer and Office Equipment 92,679 152,948 151,716 47,587 - Machinery and Equipment 28,836 4,895 4,895 31,930 - Heat Recovery - - 3,205 - - Total Operating Expenditures 207,853 387,200 479,863 584,517 502,014 TOTAL EXPENDITURES 207,853 387,200 479,863 584,517 502,014 NET SOURCE (USE) OF FUNDS 1,078,204 459,600 457,552 77,961 158,464 FUND BALANCES, Beginning of Year 1,699,303 2,640,322 2,777,507 3,235,059 3,313,020 FUND BALANCES, End of Year 2,777,507$ 3,099,922$ 3,235,059$ 3,313,020$ 3,471,484$ Fund Summary MUNICIPAL SERVICES Equipment Replacement Internal Service Fund #63 EXHIBIT 3 Page 2 Original or Final Prev. Amend.Revised Adopted Proposed Account Actual Budget Budget Budget Budget Number Description 2016 2017 2017 2018 2019 Intergovernmental 53404 Loan Repayment - ERFPD 646,190$ -$ -$ -$ -$ Charges for Services: Equipment Rental Charges 54904 Finance 3,337 3,337 3,337 3,337 3,337 54904 Information Systems 44,319 49,762 49,762 51,871 51,871 54904 Nondepartmental 18,040 18,040 18,040 17,100 17,100 54904 Comm Dev - Planning 846 847 847 847 847 54904 Comm Dev - Building Inspection 2,147 2,148 2,148 - - 54904 Comm Dev - Town Produced Events 1,226 - - - - 54904 Police - Administration 9,709 11,383 11,383 11,383 11,383 54904 Police - Patrol 113,707 122,361 122,361 119,796 119,796 54904 Police - Investigations 6,644 6,644 6,644 6,644 6,644 54904 Engineering - - - 3,573 3,573 54904 Buildings 61,737 61,524 61,524 61,524 61,524 54904 Public Works - Road and Bridge 80,424 81,870 81,870 78,967 78,967 54904 Public Works - Parks 60,081 72,306 72,306 73,425 73,425 54904 Town Center West 22,035 24,389 24,389 24,389 24,389 54904 Transit - Operations 45,904 48,828 48,828 48,828 48,828 54904 Transit - Wash Bay 22,236 22,237 22,237 22,237 22,237 54904 Fleet Maintenance 3,623 4,960 4,960 4,960 4,960 54904 Recreation - Administration 9,083 10,583 10,583 10,583 10,583 54904 Recreation - Aquatics 14,094 23,959 23,959 24,800 24,800 54904 Recreation - Fitness 64,403 75,568 75,568 69,160 69,160 54904 Recreation - Cabin 6,372 6,054 6,054 6,054 6,054 54000 Total Charges for Services 589,967 646,800 646,800 639,478 639,478 Investment Earnings: 57101 Interest Earnings - - - - - Other Sources: 59101 Sale of Fixed Assets 49,900 15,000 15,000 23,000 21,000 59303 Capital Lease Proceeds - 185,000 275,615 - - 59000 Total Other Sources 49,900 1,493,600 1,584,215 1,301,956 1,299,956 50000 TOTAL REVENUES 1,286,057$ 2,140,400$ 2,231,015$ 1,941,434$ 1,939,434$ Revenue Detail MUNICIPAL SERVICES Equipment Replacement Internal Service Fund #63 EXHIBIT 3 TOWN OF AVON DETAILED BUDGET REQUESTS 2017 Revised Page 3 Department:N/A Program: Fleet and Heavy Equipment #811 2017 Account Revised Number Account Name Justification Budget EQUIPMENT REPLACEMENT: Fleet and Heavy Equipment 66501 Automobiles and Light Duty Trucks - Public Works Dept: Plow Truck w/ Wing - Capital Lease Purchase 275,615 Replace #111 66502 Heavy Trucks and Moving Equipment 275,615 Public Works Dept: Aerator - Replace #298 & 299 35,575 66499 Other Machinery and Equipment 35,575 66000 Total Capital Outlay 311,190$ Fleet & Heavy Equip. to Auction: #111 International Paystar Plow Truck EXHIBIT 3 TOWN OF AVON DETAILED BUDGET REQUESTS 2018-19 Page 4 Department:N/A Program: Fleet and Heavy Equipment #811 Account 2018 2019 Number Account Name Justification Budget Budget EQUIPMENT REPLACEMENT: Fleet and Heavy Equipment Community Development Dept: Building Inspector Vehicle - Replace #600 30,543$ -$ Police Dept - Patrol: Chevy Tahoes Replace #340, 343, 344 101,417 - Replace #341, 342, 345, 346,347 - 227,278 Police Volunteer Service Officer Vehicle Replace #337 31,936 - Roads and Bridges: Pickup w/ Plow - Replace #200 - 33,088 Recreation Dept: Chevy Van - Replace #500 - 28,473 Transit Dept: Hybrid Vehicle - Replace #800 27,026 66501 Automobiles and Light Duty Trucks 190,922 288,839 Roads and Bridges: Streetsweeper - Replace #268 242,228 Excavator - Replace #118 40,335 Toolcat - Replace #773 52,612 66499 Other Machinery and Equipment 282,563 52,612 66000 Total Capital Outlay 473,485$ 341,451$ Fleet & Heavy Equip. to Auction in 2018: #268 Tymco Streetsweeper #340 2011 Chevy Tahoe #343 2012 Caprice #344 2013 Chevy Tahoe #345 2013 Chevy Tahoe #321 2004 Chevy Tahoe #329 2007 Chevy Tahoe EXHIBIT 3 TOWN OF AVON DETAILED BUDGET REQUESTS 2017 Revised Page 5 Department:N/A Program:Recreation Equipment #812 2017 Account Revised Number Account Name Justification Budget EQUIPMENT REPLACEMENT: Recreation Center Fitness: Roman Bench 720$ Rowers (2) Recumbent Bikes (3) Upright Bikes (3) Aquatics: Climbing Wall 8,137 66407 Athletic and Recreational Equipment 8,857 66000 Total Capital Outlay 8,857$ EXHIBIT 3 TOWN OF AVON DETAILED BUDGET REQUESTS 2018-19 Page 6 Department:N/A Program:Recreation Equipment #812 Account 2018 2019 Number Account Name Justification Budget Budget EQUIPMENT REPLACEMENT: Recreation Center Fitness: Roman Bench Rowers (2)3,319$ Recumbent Bikes (3)14,756 Upright Bikes (3)13,440 Stepmill (1)5,781$ Elliptical Machines (6)48,656 AMT (2)19,252 Incline Trainer (2)12,380 Treadmills 47,922 Technogym/Precor Circuit Weight Machines 26,572 66407 Athletic and Recreational Equipment 31,515 160,563 66000 Total Capital Outlay 31,515$ 160,563$ EXHIBIT 3 TOWN OF AVON DETAILED BUDGET REQUESTS 2017 Revised Page 7 Department:N/A Program:Computers and Office Equipment #813 Account 2017 Number Account Name Justification Budget EQUIPMENT REPLACEMENT: Computers and Office Equipment Police: Toughbook MDTs (8)26,607$ Fingerprint System 18,486 Information Systems: Office 365/Skype for Business 85,000 Firewall 5,855 Datacenter UPS 4,212 208/240 SmartUPS (2)9,830 Switched Rack PDU 1,726 66402 Computers and Peripherals 151,716 66000 Total Capital Outlay 151,716$ EXHIBIT 3 TOWN OF AVON DETAILED BUDGET REQUESTS 2018-19 Page 8 Department:N/A Program:Computers and Office Equipment #813 Account 2018 2019 Number Account Name Justification Budget Budget EQUIPMENT REPLACEMENT: Computers and Office Equipment Information Systems: Raritan KVM Switch Replacement 2,441 2018 Network Switch Refresh 35,151 Engineering: Large Format Copier, Printer, Scanner 9,995 66402 Computers and Peripherals 47,587 - 66000 Total Capital Outlay 47,587$ -$ EXHIBIT 3 TOWN OF AVON DETAILED BUDGET REQUESTS 2017 Revised Page 9 Department:N/A Program:Machinery and Equipment #814 Account 2017 Number Account Name Justification Budget EQUIPMENT REPLACEMENT: Machinery and Equipment Road and Bridge Dept: Plotter/Sign Maker - Replace #1127 4,895$ 66499 Other Machinery and Equipment 4,895 66000 Total Capital Outlay 4,895$ EXHIBIT 3 TOWN OF AVON DETAILED BUDGET REQUESTS 2018-19 Page 10 Department:N/A Program:Machinery and Equipment #814 Account 2018 2019 Number Account Name Justification Budget Budget EQUIPMENT REPLACEMENT: Machinery and Equipment Road and Bridge Dept: Pavement Cutter - Replace #375 5,377$ Parks Dept: Lawn Mower 21,684 Field Paint Sprayer 4,869 66499 Other Machinery and Equipment 31,930 - 66000 Total Capital Outlay 31,930$ -$ EXHIBIT 3 TOWN OF AVON DETAILED BUDGET REQUESTS 2017 Revised Page 11 Department:N/A Program:Heat Recovery #815 Account 2017 Number Account Name Justification Budget EQUIPMENT REPLACEMENT: Heat Recovery Buildings and Facilities: Heat Recovery Loop Pump Replacement 3,205$ 66499 Other Machinery and Equipment 3,205 66000 Total Capital Outlay 3,205$ EXHIBIT 3 Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com H EIL L AW TO: Honorable Mayor Fancher and Town Council members FROM: Eric J. Heil, Town Attorney RE: Ordinance No. 17-08 Plastic Bag Ban DATE: October 20, 2017 SUMMARY: Attached is Ordinance No. 17-08 adopting the disposable plastic bag ban and a disposable paper bag fee. The language in Section 8.38.050 provides that for the first year, for Retailers with 4,000 sq.ft. or more of retail space, will be required to remit 80% of the Disposable Paper Bag Fee to the Town and may retain 20% of the Fee, then 100% will be remitted to the Town. Retailers with less than 4,000 sq.ft. of retail space are allowed to retain 100% of the Disposable Paper Bag Fee. This ordinance is provided to you for your information so that you can see the final language which reflects the motion and intent of the Avon Town Council at the October 12, 2017 Council meeting. Thank you, Eric ATTACHMENT A: Ordinance No. 17-08. M EMORANDUM& PLANNING, LLC Avon Town Council re date Page 2 of 2 Page 1 of 4 EXHIBIT A: ADDITION OF CHAPTER 8.38 TO TITLE 8 OF THE AVON MUNICIPAL CODE CHAPTER 8.38 DISPOSABLE BAG REQUIREMENTS Section 8.38.010 Purpose and intent. Section 8.38.020 Definitions. Section 8.38.030 Restrictions on the distribution of disposable bags. Section 8.38.040 Disposable paper bag fee program. Section 8.38.050 Retention and administration of disposable paper bag fee. Section 8.38.060 Exemptions. Section 8.38.070 Audits. Section 8.38.080 Violations and penalties. 8.38.010 PURPOSE AND INTENT. The purposes of this Chapter are to protect the public health, safety and welfare, to address the environmental problems associated with disposable bags, and to relieve the Town taxpayers of the costs imposed upon the Town associated with disposable bags. The intent of the Chapter is to encourage the use of reusable bags. 8.38.020 DEFINITIONS. For the purposes of this chapter, the following terms shall have the following meanings: DISPOSABLE PAPER BAG: a bag made predominately of paper that is provided to a customer by a Grocer at the point of sale for the purpose of transporting goods. DISPOSABLE PAPER BAG FEE: a Town fee of ten cents ($0.10) imposed and required to be paid by each consumer making a purchase from a Town Grocer for each disposable paper bag used during the purchase. DISPOSABLE PLASTIC BAG: a bag made from either non-compostable plastic or compostable plastic provided by a business to a customer at the point of sale for the purpose of transporting goods. The term "Disposable Plastic Bag" does not include: 1. Bags provided by pharmacists to contain prescription drugs; 2. Newspaper bags, door hanger bags, laundry-dry cleaning bags, or bags sold in packages containing multiple bags intended for use as garbage, pet waste, or yard waste bags; 3. Reusable Bags; 4. Disposable Paper Bags; or 5. Bags used by consumers inside stores to: a. Package bulk items, such as fruit, vegetables, nuts, grains, candy or small hardware items; b. Contain or wrap frozen foods, meat, or fish, regardless of whether the items are prepackaged; c. Contain or wrap flowers, potted plants, or other items where dampness may be a problem; or d. Contain unwrapped prepared foods or bakery goods. Page 2 of 4 RETAILER: means any person, corporation, partnership, business, facility, vendor, organization or individual that sells or provides merchandise, goods or materials, including, without limitation, clothing, food, or personal items of any kind, directly to a customer. “Retailer” includes, without limitation, any department store, grocery store, hardware store, pharmacy, liquor store, restaurant, catering truck, convenience store, and any other retail store or vendor. REUSABLE BAG: a bag that: 1. Is designed and manufactured to withstand repeated uses over a period of time; 2. Is made from a material that can be cleaned and disinfected regularly; 3. Is at least two and one-fourth (2.25) mils thick if made from plastic; and 4. Has the capability of carrying a minimum of eighteen (18) pounds. 8.38.030 RESTRICTIONS ON THE DISTRIBUTION OF DISPOSABLE BAGS. A. Effective May 1, 2018, all Retailers shall only offer either a Reusable Bag or a Disposable Paper Bag to a consumer pursuant to the fees established in section 8.38.050 of this chapter. B. Effective May 1, 2018, it shall be unlawful for any Retailer to provide Disposable Plastic bags to customers at any point of sale. Nothing in this section shall prohibit persons or Retailers from making reusable bags available to customers for sale or without cost. C. Violations of this Section shall subject the offending person and/or business to the penalties set forth in section 8.38.080 of this chapter. 8.38.040 DISPOSABLE PAPER BAG FEE PROGRAM. A. Effective May 1, 2018, a consumer making a purchase from a Retailer shall pay at the time of purchase a Disposable Paper Bag Fee of ten cents ($0.10) for each Disposable Paper Bag used during a purchase. B. Retailers shall record the number of disposable paper bags provided to any given customer and the total amount of the Disposable Paper Bag Fee charged to the customer on the customer transaction receipt. C. No Retailer may provide a rebate or in any way reimburse a customer for any part of the Disposable Paper Bag Fee. D. No Retailer may exempt a customer from any part of the Disposable Paper Bag Fee for any reason except as provided in section 8.38.060 of this chapter. E. Nothing in this Chapter shall prohibit Retailers from providing incentives for the use of reusable bags through credits or rebates for customers who bring their own bags to the point of sale for the purpose of carrying away goods. F. Nothing in this Chapter shall prohibit customers from using bags of any type that the customers bring into the store or from carrying away goods purchased by such customers that are not placed in a bag. G. Any store or business in the Town may voluntarily opt to participate in the Disposable Paper Bag Fee program, prior to its respective effective date, by providing notice to the Town of Avon and collecting the Disposable Paper Bag Fee pursuant to this Chapter. Page 3 of 4 8.38.050 RETENTION AND ADMINISTRATION OF DISPOSABLE PAPER BAG FEE. A. Upon the effective date, Retailers shall be required to remit the Disposable Paper Bag Fee to the Town and may retain a portions of the Disposable Paper Bag Fee as follows: 1. For the first twelve (12) months following the effective date of the Disposable Paper Bag Fee, each Retailer that is located in a permanent building in the Town containing at least four thousand (4,000) square feet of retail space may retain twenty percent (20%) of the Disposable Paper Bag Fee to be taken as a Retailer credit against the Disposable Paper Bag Fee due to the Town. The remaining eighty percent (80%) of the Disposable Bag Fee shall be remitted to the Town. Thereafter the entirety of all collected Disposable Bag Fees shall be remitted to the Town. 2. Each Retailer that operates in less than four thousand (4,000) square feet of retail space may retain one hundred percent (100%) of the Disposable Paper Bag Fee. B. A Retailer that elects to retain a portion of the Disposable Paper Bag Fee shall execute an agreement provided by the Town requiring the Retailer to uses the Disposable Paper Bag Fee revenues only for the purposes stated in sub-section D. below. C. The portion of the Disposable Paper Bag Fee revenue received by the Town shall be deposited as revenue in a designated waste reduction and reusable line item within the Town's budget to be used for the purposes stated in sub-section D. below. D. The Disposable Paper Bag Fee shall be used exclusively for the following purposes: 1. Producing and providing reusable bags to Town residents and guests; 2. Educating Town residents, businesses and guests about the impacts of waste on the Town's environmental health, the importance of reducing the number of disposable bags entering the waste stream, and the impact of disposable bags on the Town's waterways and the environment; 3. Creating public educational campaigns to raise awareness about waste reduction and recycling; 4. Funding programs and infrastructure that allows the Avon community to reduce waste and recycle; 5. Purchasing and installing equipment designed to minimize waste pollution, including recycling containers and waste receptacles; 6. Funding community cleanup or collection events and other activities to reduce waste; 7. Maintaining a public website for the purpose of educating the Town's residents and guests on waste reduction efforts; 8. Providing educational information to customers about the Disposable Paper Bag Fee; 9. Training Retailer staff in the implementation and administration of the Disposable Paper Bag Fee; 10. Improving or altering infrastructure to allow for the administration, collection, implementation, and reporting of the Disposable Paper Bag Fee; and 11. Paying for the administration of the Disposable Paper Bag Fee Program. E. A Retailer shall pay and the Town shall collect the Disposable Paper Bag Fee at the same time and pursuant to all applicable provisions of the Town's sales tax code, and consistent with all applicable sales tax provisions regarding sales tax administration, collection and enforcement. The Town shall provide the necessary forms for Retailers to file individual returns with the Town separate from the Town's sales tax forms to demonstrate compliance with the Disposable Paper Bag Fee. Notwithstanding the fact that the Disposable Paper Bag Fee will be collected in the same time and manner used for the collection of sales tax, such process is Page 4 of 4 for the convenience of the Retailer and does not change the nature of the Disposable Paper Bag Fee from a fee to a tax. F. Disposable Paper Bag Fees shall not supplant funds appropriated as part of an approved annual budget. G. No Disposable Paper Bag Fees shall revert to the General Fund at the end of the fiscal year, or at any other time, but shall be continually available for the uses and purposes set forth in this Chapter without regard to fiscal year limitation. 8.38.060 EXEMPTIONS. A. A Retailer may provide a Disposable Paper Bag to a customer with no fee if the customer provides proof that he or she is a participant in a federal or state Food Assistance Program. B. A retail liquor store, as defined in Colorado Revised Statutes section 12-47-103(31), may provide a Disposable Paper Bag to a customer with no fee if the Disposable Paper Bag is provided for the containment of carry-out alcoholic beverages as defined in Colorado Revised Statutes section 12-47-103(2). 8.38.070 AUDITS. A. Each Retailer shall maintain accurate and complete records of the Disposable Paper Bag Fees collected under the provisions of this Chapter and the number of Disposable Paper Bags provided to customers, and shall also maintain such books, accounts, invoices, or other documentation necessary to verify the accuracy and completeness of such records. It shall be the duty of each Retailer to keep and preserve all such documents and records, including any electronic information, for a period of three (3) years from the end of the calendar year of such records. B. If requested, each Retailer shall make the foregoing records available for inspection and audit by the Town during regular business hours so that the Town may verify compliance with the provisions of this Chapter. To the extent permitted by law, all such records shall be treated as confidential commercial information. 8.38.080 VIOLATIONS AND PENALTIES. Any person violating any of the provisions of this Chapter shall be deemed to have committed a civil infraction for each and every day or portion thereof during which any infraction is committed, continued or permitted and shall be subject to the penalties contained in Chapter 1.09 of this Code. M E M O R A N D U M TO: Board of Directors FROM: Catherine Hayes, Board Secretary DATE: October 9, 2017 RE: Summary of Authority’s September 28, 2017, Board Meeting The following is a summary of items discussed at the September 28, 2017, Authority Board Meeting: Board members present and acting included: Chair George Gregory, Vice Chair Tom Allender, Secretary Sarah Smith Hymes, Treasurer Geoff Dreyer, director Mick Woodworth and alternate director Bill Simmons. Request re Ballot Issue 1A The Board declined to take action on Eagle County ballot issue 1A, which involves use of a marijuana tax to support county mental health services. Directors believe it is outside the scope of a water authority’s purview to take action on such issues. Services Agreement with Tom Allender The board approved a services agreement with Tom Allender, who is moving out of EagleVail and will no longer serve on the Authority board. The agreement is for Tom to provide on-demand services, especially with regard to the Eagle River MOU projects. Jim Collins clarified that the agreement is between Tom and the Eagle River Water & Sanitation District. Finance Report James Wilkins noted the Authority revenues were tracking close to projections, with the exception of capital projects, though this should self-correct by year end due to timing of expenditures. Engineering Report Jason Cowles discussed the 6 West project, which will be considered by the County Commissioners the following week. District staff requested the County include a water budget and irrigation efficiency measures in the PUD, as well as follow all the District’s recommended water efficiency best management practices. The County is also willing to dedicate some water to the development. Linn Brooks clarified that because of the water-use stipulations included in the PUD, the Authority is not requiring dedication of 120% of the estimated water use as it has in the past. Colorado River Compact Minute 323 Diane Johnson reported Minute 323 of the Colorado River Compact was recently signed. This minute deals with conservation drought contingency, and among other provisions, it allows Mexico to store water in Lake Mead, which will help stave off a water shortfall there. California WaterFix Diane Johnson discussed this proposed initiative by California’s governor. It entails billions of dollars in infrastructure to bring water from northern California to the central and southern parts of the state, making water supply more secure there and protecting aquatic life, wildlife, and critical habitat. The proposal will be voted on by the agencies that purchase water imported from northern California. Notice of Claim from Edwards Resident Jim Collins handed out a notice of claim on behalf of an Authority customer. The homeowner’s insurance is subrogating against the Authority regarding damage from a water leak event in his home. After investigation, staff determined the damage resulted from a faulty pressure reducing valve (PRV) on the customer’s service line. The claim was sent to the Authority’s insurer for further action. Discussion ensued regarding whether the rules and regulations should require customers replace PRVs every ten years. Summary of Authority’s September 28, 2017, Board Meeting Page 2 of 2 Diligence Applications Glenn Porzak reported diligence was filed for the UERWA Pipeline, a direct flow water right on Lake Creek, which the Authority has maintained for many years. He also expects to receive the signed diligence decree for the Traer Creek conditional water rights soon. The town of Avon was a co-applicant in this matter, and the protest period for the filing has passed. Court Decisions on Minimum Bypass Flows in Oregon Glenn Porzak discussed a case in Bend, OR, by which environmental groups there wanted the Forest Service to impose minimum flows as a special use permit condition. This would have subordinated a state-issued water right to a federal bypass flow; Colorado water users fought against a similar stipulation. In Oregon, the District Court and 9th Circuit Court both denied the environmental groups’ arguments. Unallocated Water Policy Glenn Porzak discussed a subcommittee meeting with Directors Allender and Hymes regarding unallocated water. Discussion ensued regarding whether the Authority wants a first come, first served policy for its remaining unallocated water, as well as the need for additional water storage in the future. FISCAL YEAR 2017 FINANCIAL REPORT October 24, 2017 ______________________________________________________________________________________ 1.Financial Report Memorandum 2.Sales Tax Report – August 2017 3.Accommodations Tax Report – August 2017 4.Real Estate Transfer Tax Report – September 2017 5.Recreation Center Admissions – September 2017 6.General Fund Year-To-Date Expenditures – September 2017 7.Fleet Maintenance Fund Year-To-Date Expenditures – September 2017 8.Transit Fund Year-To-Date Expenditures – September 2017     TOWN COUNCIL REPORT  To:   Honorable Mayor Jennie Fancher and Avon Town Council    From:    Martha Anderson, Senior Accountant       Meeting Date: October 24, 2017    Re:   Fiscal Year 2017 Financial Report ‐ September        SUMMARY  Revenues  SALES TAX   Sales tax revenue for August totaled $618,515, a 4.23% increase over the previous year. Year‐to‐ date sales tax revenue is down 0.05% over the previous year, with a negative variance of  $188,528 over the revised annual budget.  ACCOMMODATIONS TAX   Accommodations tax revenue for August totaled $100,628, a 14.78% increase over the previous  year. Year‐to‐date accommodations tax revenue is up 3.16% over the previous year, with a  negative variance of $18,085 over the revised annual budget.  REAL ESTATE TRANSFER TAX   Real estate transfer tax collections for September totaled $426,214, an increase of 32.38% or  $104,256 over the previous year. Year‐to‐date RETT collections are up 64.20% over the previous  year, with a positive variance of $1,001,682 over the revised annual budget.   We have collected a total of $2,041,196 in real estate transfer tax from the Wyndham Vacation  Resorts, Inc. since its opening, $61,390 in 2015, $639,420 in 2016, and $1,340,386 year‐to‐date in  2017. Wyndham’s year‐to‐date RETT collections are up 575% over the previous year, with a  positive variance of $1,141,876.  RECREATION CENTER ADMISSIONS   September’s admission fees total $48,279, a 1.51% decrease over the previous year. Year‐to‐date  admission fees are up 4.69% over the previous year, with a positive variance of $8,951 over the  revised annual budget.    Expenditures  GENERAL FUND   General fund expenditures through September 2017 total 75.76% of the 2017 annual budget.  These expenditures include the Town’s annual insurance premium, $277,449 toward signature  event seed funding, $515,411 toward town produced events, $168,370 spent for community  grants, as well as a large encumbrance for the Town Attorney.  FLEET MAINTENANCE   Fleet expenditures for September are at 68.91% of the total budget. These costs include  encumbrances for stock parts and ongoing expenditures such as regularly purchased shop  supplies and equipment, maintenance services and gas.  TRANSIT   Transit funds are 82.12% expended as of September compared to the 2017 budget. These  expenditures include a $415,415 expenditure for the people mover diesel bus purchase, as well as  $185,228 for the 2017 gondola operations.    TOWN OF AVONSALES TAX 2017 Actual vs. Budget Budget YTD Collections Budget % of change2012 2013 2014 2015 2016 2017 2017 Variance from 2016January 519,784.89$ 677,943.78$ 638,863.27$ 765,195.68$ 743,689.78$ 812,836$ 792,562.03$ (20,273.74)$ 6.57%February 533,546.48 636,702.27 673,722.03 788,999.06 774,754.00 827,960 798,923.33 (29,036.18) 3.12%March 643,910.29 720,267.31 793,301.96 875,499.53 945,795.71 966,705 918,657.55 (48,047.68) -2.87%April 304,220.84 307,407.13 381,839.56 403,560.42 438,198.18 445,897 425,727.85 (20,168.89) -2.85%May 270,082.79 309,938.72 340,332.28 353,840.11 404,872.55 407,955 394,689.30 (13,266.01) -2.52%June 430,588.57 490,329.18 538,517.31 570,424.51 693,675.00 661,725 650,794.65 (10,930.44) -6.18%July 472,215.40 537,479.66 570,959.86 601,516.82 690,342.23 697,922 682,024.81 (15,897.14) -1.20%August 455,439.86 504,332.25 547,085.80 572,647.57 593,398.26 649,424 618,515.44 (30,908.10) 4.23%September 424,793.75 475,362.88 546,016.59 595,235.68 667,949.51 658,281 - - -100.00%October 341,711.43 356,925.96 417,921.46 423,701.53 451,303.71 483,881 - - -100.00%November 336,060.63 362,460.94 397,935.36 438,315.55 445,336.04 481,098 - - -100.00%December 852,868.64 981,917.79 1,221,263.98 1,159,160.45 1,247,832.82 1,327,331 - - -100.00% Total 5,585,223.57$ 6,361,067.87$ 7,067,759.46$ 7,548,096.91$ 8,097,147.79$ 8,421,015$ 5,281,894.96$ (188,528.19)$ -0.05%Actual Collections$0$100,000$200,000$300,000$400,000$500,000$600,000$700,0002013 2014 2015 2016 2017YearSales Tax Collections for August TOWN OF AVONSALES TAX 2017 Actual vs. Budget  $‐ $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,0002013 2014 2015 2016 2017YTD Sales Tax Comparison January - August $‐ $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000Sales Tax Monthly Comparison 2015-2017 201520162017 TOWN OF AVONACCOMMODATIONS TAX 2017 Actual vs. Budget Budget YTD Collections Budget % change2012 2013 2014 2015 2016 2017 2017 Variance 2016January 90,118.88$ 108,508.43$ 129,851.78$ 164,361.04$ 168,424.63$ 179,381$ 190,207.82$ 10,826.44$ 12.93%February 106,016.32 137,503.61 150,317.06 175,056.31 185,370.53 204,609 194,804.88 (9,804.38) 5.09%March 115,043.42 153,208.80 168,597.39 183,650.29 217,387.54 227,294 201,008.55 (26,285.29) -7.53%April 20,786.24 26,494.49 31,626.02 34,825.13 60,916.55 47,377 38,340.02 (9,036.88) -37.06%May 16,664.44 24,527.17 21,961.97 28,002.56 37,357.48 34,862 39,961.98 5,100.07 6.97%June 56,012.17 66,578.91 54,232.23 53,397.46 73,591.08 82,415 83,723.31 1,308.23 13.77%July 66,726.73 73,008.92 81,083.01 86,301.22 107,595.18 112,500 119,300.76 6,800.95 10.88%August 58,358.93 67,688.07 71,044.33 75,107.71 87,674.05 97,623 100,628.23 3,005.41 14.78%September 42,245.24 44,661.37 50,840.16 60,417.74 68,139.11 72,240 - - -100.00%October 25,879.51 27,154.53 34,977.59 38,706.72 45,738.23 46,782 - - -100.00%November 22,786.42 28,171.04 32,064.02 34,328.47 37,570.50 42,025 - - -100.00%December 112,759.02 131,361.43 168,944.85 198,421.26 200,114.56 220,163 - - -100.00% Total 733,397.32$ 888,866.77$ 995,540.41$ 1,132,575.91$ 1,289,879.44$ 1,367,272$ 967,975.55$ (18,085.47)$ 3.16%Actual Collections $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,0002013 2014 2015 2016 2017Accommodations Tax Collections for August Town of AvonReal Estate Transfer Tax 2017 Actual vs. BudgetBudget YTD Collections $ Change % of Change2012 2013 2014 2015 2016 2017 2017 2016 2016January 50,204.00$ 22,535.00$ 85,126.74$ 48,640.40$ 64,422.00$ 46,204$ 107,390.00$ 42,968.00$ 66.70%February 41,750.07 55,872.69 562,219.70 85,479.08 200,850.86 161,359 270,815.26 69,964.40 34.83%March 84,760.49 125,927.64 50,375.06 168,744.22 265,061.65 118,502 254,737.53 (10,324.12) -3.89%April 219,195.80 144,437.80 197,656.36 125,266.30 159,046.06 144,208 249,938.93 90,892.87 57.15%May 270,170.12 121,784.12 183,745.60 237,971.08 184,987.10 170,310 377,490.82 192,503.72 104.06%June 169,040.47 90,309.74 220,009.15 294,434.84 307,127.24 184,339 703,419.85 396,292.61 129.03%July 71,057.40 386,434.78 141,051.52 396,838.68 259,977.94 214,087 219,208.74 (40,769.20) -15.68%August 232,505.93 97,579.70 154,032.32 152,380.93 186,483.40 140,350 592,467.49 405,984.09 217.71%September 96,389.34 157,010.67 267,886.92 291,223.61 321,957.68 193,471 426,213.80 104,256.12 32.38%October 176,889.62 169,839.80 178,044.24 172,855.22 641,688.59 228,405 - - -100.00%November 150,549.86 112,491.82 122,582.66 169,328.38 315,109.37 148,379 - - -100.00%December 145,134.57 83,382.60 1,598,062.92 225,862.90 588,514.66 450,385 - - -100.00% Total 1,707,647.67$ 1,567,606.36$ 3,760,793.19$ 2,369,025.64$ 3,495,226.55$ 2,200,000$ 3,201,682.42$ 1,251,768.49$ 64.20%Budget 2,200,000.00 Variance, Favorable (Unfavorable) 1,001,682.42$ Actual Collections $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 $3,000,000.00 $3,500,000.002013 2014 2015 2016 2017YTD Real Estate Transfer Tax Collections TOWN OF AVONRECREATION CENTER ADMISSION FEES 2017 Actual vs. Budget Budget YTD Collections Budget % of change2012 2013 2014 2015 2016 2017 2017 Variance from 2016January 66,113$ 70,040$ 62,607$ 64,723$ 74,674$ 77,192$ 74,674.20$ (2,517.48)$ 0.00%February 78,782 68,578 63,838 68,506 86,342 83,558 93,365.80 9,807.68 8.13%March 62,670 72,616 77,902 81,664 76,023 84,660 84,085.80 (574.67) 10.61%April 49,982 64,370 61,760 55,452 67,398 68,245 62,435.00 (5,809.61) -7.36%May 44,880 35,064 43,119 50,067 54,337 51,924 61,441.70 9,517.31 13.08%June 49,442 46,194 55,052 58,431 58,044 60,986 63,459.20 2,473.43 9.33%July 73,067 71,491 61,472 66,400 65,874 77,225 82,539.70 5,314.35 25.30%August 67,510 57,329 63,233 66,389 76,558 75,562 66,543.40 (9,019.03) -13.08%September 38,141 43,829 36,846 44,719 49,018 48,520 48,278.60 (241.21) -1.51%October 41,588 48,803 75,818 61,167 51,833 63,736 - - -100.00%November 94,044 93,822 29,570 71,384 72,114 82,391 - - -100.00%December 72,059 69,258 77,672 112,201 169,093 114,201 - - -100.00% Total 738,277$ 741,394$ 708,889$ 801,102$ 901,307$ 888,200$ 636,823.40$ 8,950.78$ 4.69%Actual Collections $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,0002013 2014 2015 2016 2017Recreation Center Admissions - September Dept./Div. 2017 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget General Government: 111 Mayor and Town Council 221,972$ 135$ 168,529$ 53,307$ 75.98% 112 Boards and Commissions 18,066 - 10,236 7,830 56.66% 113 Town Attorney 132,000 51,705 78,322 1,973 98.51% 115 Town Clerk 126,191 3,113 81,364 41,714 66.94% 121 Municipal Court 129,000 9,141 83,207 36,652 71.59% 131 Town Manager 405,797 - 250,161 155,636 61.65% 133 Community Relations 187,497 15,452 142,882 29,163 84.45% Total General Government 1,220,523 79,546 814,702 326,276 73.27% Human Resources Department: 132 Human Resources 439,677 1,357 322,018 116,302 73.55% Finance & IT Department: 141 Finance 911,500 24,025 627,591 259,884 71.49% 143 Information Systems 406,753 20,185 293,784 92,783 77.19% 149 Nondepartmental 482,655 60,552 413,155 8,948 98.15% Total Finance & IT 1,800,908 104,762 1,334,530 361,615 79.92% Total General Gov't Departments 3,461,108 185,665 2,471,250 804,193 76.76% Community Development: 212 Planning 283,033 35,947 170,703 76,383 73.01% 213 Building Inspection 149,265 2,300 103,781 43,184 71.07% 214 Economic Development - - - - 0.00% 215 Town Produced Events 657,733 9,611 515,411 132,711 79.82% 216 Signature Event Seed Funding 266,869 5,172 277,449 (15,753) 105.90% 217 Community Grants 182,620 - 168,370 14,250 92.20% Total Community Development 1,539,520 53,030 1,235,715 250,776 83.71% Police Department: 311 Administration 686,574 11,988 493,923 180,663 73.69% 312 Patrol 2,438,204 21,652 1,922,960 493,592 79.76% 313 Investigations 271,440 - 203,784 67,656 75.08% Total Police 3,396,218 33,640 2,620,667 741,911 78.15% Public Works: 412 Engineering 251,376 359 171,302 79,715 68.29% 413 Roads and Bridges 2,357,162 15,206 1,712,320 629,637 73.29% 415 Parks 706,781 63,219 463,819 179,743 74.57% 418 Buildings & Facilities 1,293,193 69,865 781,830 441,498 65.86% Total Public Works 4,608,512 148,649 3,129,270 1,330,592 71.13% Recreation Department: 514 Administration 227,282 6,528 169,689 51,065 77.53% 515 Adult Programs 56,087 - 35,206 20,881 62.77% 516 Aquatics 574,478 2,457 413,251 158,770 72.36% 518 Fitness 150,785 - 123,488 27,297 81.90% 519 Guest Services 297,882 2,822 219,634 75,427 74.68% 521 Youth Programs 145,761 709 101,859 43,193 70.37% Total Recreation 1,452,275 12,515 1,063,127 376,633 74.07% TOTAL OPERATING EXPENDITURES 14,457,633$ 433,499$ 10,520,029$ 3,504,105 75.76% Department Expenditure Summaries General FundSeptember 2017 Expenditures to Date Dept./Div. 2017 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES Public Works: 434 Fleet Maintenance 1,652,546$ 51,845$ 1,086,970$ 513,731$ 68.91% Total Operating Expenditures 1,652,546 51,845 1,086,970 513,731 68.91% TOTAL EXPENDITURES 1,652,546$ 51,845$ 1,086,970$ 513,731$ 68.91% Expenditure Summary Fleet Maintenance Enterprise Fund September 2017 Expenditures to Date Dept./Div. 2017 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES 431 Transit Administration 247,060$ 17,117$ 186,931$ 43,012$ 82.59% 432 Transit Operations 1,793,604 - 1,471,085 322,519 82.02% 436 Wash Bay 130,110 3,004 104,580 22,526 82.69% Total Operating Expenditures 2,170,774 20,121 1,762,596 388,057 82.12% TOTAL EXPENDITURES 2,170,774$ 20,121$ 1,762,596$ 388,057$ 82.12% Expenditure Summary Transit Enterprise Fund September 2017 Expenditures to Date