TC Packet 07-24-2018 TOWN OF AVON, COLORADO
TOWN OF AVON MEETINGS FOR TUESDAY, JULY 24, 2018
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 & AVON ELEMENTARY SCHOOL
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)
COUNCIL REGULAR MEETING BEGINS AT 5:05 PM (SEE AGENDA BELOW)
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
* AN INITIAL THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK. SPEAKER MAY REQUEST
MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROVED BY A MAJORITY OF THE COUNCIL.
4. JOINT WORK SESSION WITH PLANNING & ZONING COMMISSION (60 MINUTES)
5. ACTION ITEMS
5.1. PUBLIC HEARING SECOND READING OF ORDINANCE 18-09, AMENDING CHAPTER 2.30 TOWN CODE OF ETHICS
OF THE AVON MUNICIPAL CODE (TOWN ATTORNEY ERIC HEIL) (10 MINUTES)
5.2. PUBLIC HEARING SECOND READING ORDINANCE 18-11, AMENDING CHAPTER 5.24 OF THE AVON MUNICIPAL
CODE TO AMEND AMPLIFIED SOUND PERMIT CRITERIA (TOWN ATTORNEY ERIC HEIL) (10 MINUTES)
5.3. PUBLIC HEARING SECOND READING ORDINANCE 18-12, FOR CAPITAL LEASE PURCHASE
(ACTING TOWN MANAGER SCOTT WRIGHT) (10 MINUTES)
5.4. PUBLIC HEARING VAIL VALLEY FOUNDATION PERMIT APPLICATION FOR OUTDOORS USE OF SOUND AMPLIFICATION
SYSTEM FOR DANCING IN THE PARK! ON JULY 30, 2018 AND AUGUST 8, 2018
(INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) (5 MINUTES)
5.5. PUBLIC HEARING VAIL VALLEY CHARITABLE FUND PERMIT APPLICATION FOR OUTDOORS USE OF SOUND
AMPLIFICATION SYSTEM FOR BEC SPRINT & MAJOR LEAGUE TRIATHLON ON AUGUST 4, 2018
(INTERIM SPECIAL EVENTS MANAGER LOUISE DUNCAN) (5 MINUTES)
5.6. FIRST READING OF ORDINANCE 18-13, APPROVING AMENDMENTS TO TITLE 15, BUILDINGS AND CONSTRUCTION,
AVON MUNICIPAL CODE, CONCERNING CONTRACTOR LICENSING AND RESIDENTIAL INSULATION STANDARDS
(PLANNING DIRECTOR MATT PIELSTICKER) (15 MINUTES)
5.7. MINUTES FROM JULY 10, 2018 COUNCIL MEETING (TOWN CLERK DEBBIE HOPPE) (5 MINUTES)
6. WORK SESSION
6.1. TOWN MANAGER RECRUITMENT UPDATE (HUMAN RESOURCES DIRECTOR LANCE RICHARDS) (25 MINUTES)
7. WRITTEN REPORTS
7.1. HAHNEWALD BARN PRE-DESIGN UPDATE (TOWN ENGINEER JUSTIN HILDRETH)
7.2. LANDSCAPING AND WATERING PROGRAM UPDATE (TOWN MASTER GARDENER JOE GILLES)
TOWN OF AVON, COLORADO
TOWN OF AVON MEETINGS FOR TUESDAY, JULY 24, 2018
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 & AVON ELEMENTARY SCHOOL
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
7.3. ABSTRACT FROM JULY 17, 2018 PLANNING AND ZONING COMMISSION MEETING
(PLANNING DIRECTOR MATT PIELSTICKER)
7.4. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT MARTHA ANDERSON)
7.5. EXPIRATION OF RENEWABLE ENERGY SALES TAX CREDIT (ACTING TOWN MANAGER SCOTT WRIGHT)
8. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES)
9. 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, JULY 24, 2018
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 & AVON ELEMENTARY SCHOOL
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. PUBLIC HEARING FOR TRANSFER OF OWNERSHIP
4.1. APPLICANT: LOOK MA ENTERPRISES LLC D/B/A LOADED JOE’S
CURRENT OWNER: NOVA ENTERTAINMENT LLC D/B/A LOADED JOE’S
ADDRESS: 820 E. BEAVER CREEK BLVD. #104
NEW OWNER: JODI ULLMANN
NEW MANAGER: LIZ FREY
TYPE: HOTEL AND RESTAURANT LICENSE
5. PUBLIC HEARING SPECIAL EVENTS PERMIT
5.1. APPLICANT NAME: VAIL VALLEY CHARITABLE FUND
EVENT NAME: BEC SPRINT & MAJOR LEAGUE TRIATHLON
EVENT DATES: AUGUST 4, 2018; 12:00 PM UNTIL 8:00 PM
LOCATION: NOTTINGHAM PARK
EVENT MANAGER: BROOKE SKJONSBY
PERMIT TYPE: MALT, VINOUS & SPIRITUOUS LIQUOR
5.2. APPLICANT NAME: VAIL VALLEY SOCCER CLUB
EVENT NAME: LAKE STREET MARKET
EVENT DATES: AUGUST 8, 15, 22 & 29, 2018 AND SEPTEMBER 5 & 12, 2018; 4:00 PM UNTIL 10:00 PM
LOCATION: ONE LAKE STREET
EVENT MANAGER: DERICK GEORGE
PERMIT TYPE: MALT, VINOUS & SPIRITUOUS LIQUOR
6. APPROVAL OF THE MINUTES FROM JULY 10, 2018 MEETING
7. ADJOURNMENT
Transfer of Ownership Loaded Joe’s Page 1
LIQUOR LICENSING AUTHORITY REPORT
To: Avon Liquor Licensing Authority
From: Debbie Hoppe, Liquor Licensing Authority Secretary
Meeting Date: July 24, 2018
Agenda Topic: PUBLIC HEARING Transfer of Ownership Application – Look Ma Enterprises LLC d/b/a
Loaded Joe’s
ACTION BEFORE THE LOCAL LIQUOR LICENSING AUTHORITY
The Town Council acting as the Local Liquor Licensing Authority is asked to consider the Transfer of
Ownership Application for a Hotel and Restaurant Liquor License as submitted by:
Applicant: Look Ma Enterprises LLC d/b/a Loaded Joe’s
Current Owner: Nova Entertainment LLC d/b/a Loaded Joe’s
New Owner: Jodi Ullmann
New Manager: Elizabeth Frey
Address: 82 E. Beaver Creek Blvd. #104
Type: Hotel and Restaurant License
PROPOSED MOTION
“I move to approve (or deny stating the reasons for denial) the Transfer of Ownership Application
for Look Ma Enterprises LLC d/b/a Loaded Joe’s.”
BACKGROUND
A transfer of ownership must be reported to and approved by the Local and State Licensing Authorities
prior to any actual change of ownership. The applicable state and local license fees must accompany
these applications. Both the state and town will issue new licenses for all transfers of ownership. The
Town's Liquor Code states that "the burden of proof in an application for the transfer of an existing
license shall be upon the applicant." The Avon Town Council acting as the Local Liquor Licensing
Authority has the duty to conduct hearings and make findings of fact as to whether to grant or deny a
transfer of ownership on an existing license. The Town Clerk, Special Counsel Pierce-Durance and
Police Department handle the review of the liquor license applications administratively. In the case of a
transfer of license, an investigation of the background of the parties is completed and a public hearing is
set. The applicant may also apply for a temporary permit which allows an applicant for a transfer of
ownership to operate the establishment until the Authority considers the application.
The Liquor Code of Colorado provides that in making any decision, the Local Licensing Authority
must consider the following before approving or denying the application:
• Facts and evidence resulting from the investigation and any facts brought to the attention
of the Authority.
• Any other pertinent matters affecting the qualifications of the applicant for the conduct of
the type of business proposed.
Transfer of Ownership Loaded Joe’s Page 2
Requests for licenses may be denied for various reasons such as the applicant is not of good
moral character; the applicant's character, record, or reputation is unsatisfactory; or the proposed
outlet is within 500 feet of any school.
DISCUSSION
The Town Clerk and Special Counsel Pierce-Durance have reviewed the application materials and the
Avon Police Department have completed the background checks on the principal of the company. The
applicant applied for and received a temporary permit dated June 11, 2018 that allows them to operate
for 120 days until the transfer of ownership application has been approved. Public notices were posted
and published ten (10) days prior to the hearing date. The applicant, Jodi Ullman and manager,
Elizabeth Frey will be present for the hearing.
FINDINGS:
A background investigation has been completed by the Colorado Bureau of Investigation and the report
indicates no concerns area of concerns with Jodi Ullmann or Elizabeth Frey’s background.
The Avon Police Department report indicates:
• 07-24-2015 Loaded Joe’s failed a compliance check and was given a fine and limited suspension.
• 10-15-2015 Loaded Joe’s received a warning for off-site consumption of alcohol.
• 11-17-2016 Loaded Joe’s received a violation for sales to visibly intoxicated person. A stipulation
agreement for this 2016 violation is dated 05-02-2018.
Action Options:
Requests for licenses may be denied for various reasons such as the applicant is not of good moral
character; the applicant’s character, record, or reputation is unsatisfactory; or the proposed outlet is
within 500 feet of any school.
State required documents on file with the Town Clerk:
Lease with Landlord’s Consent
Operating Agreement
Articles of Organization
Certificate of Good Standing
Temporary Permit & Affidavit of Transfer and Statement of Compliance
Individual History Records and Memo from Avon Police Department
Attachments:
Colorado Liquor Retail License Application (DR8404)
Diagram of Premises
TOWN OF AVON, COLORADO
AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, JULY 10, 2018
AVON TOWN HALL, ONE LAKE STREET
Page 1
1. CALL TO ORDER AND ROLL CALL
Chairwoman Fancher called the meeting to order at 5:00 p.m. A roll call was taken and Board members
present were Amy Phillips, Megan Burch, Jake Wolf, Scott Prince and Sarah Smith Hymes. Matt Gennett
was absent. Also present were Acting Town Manager Scott Wright, Town Attorney Eric Heil, Deputy
Police Chief Coby Cosper, Planning Director Matt Pielsticker, Recreation Director John Curutchet, Deputy
Town Manager Preston Neill and Secretary Debbie Hoppe.
2. APPROVAL OF AGENDA
There were not 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 EVENTS PERMIT
Start time: 01:03 Part One
4.1. Applicant Name: Eagle Valley Humane Society
Event Name: Pitmaster BBQ and Music Festival
Event Dates: August 18 & 19, 2018; 12:30 pm until 9:30 pm
Location: Nottingham Park
Event Manager: Char Gonsenica
Permit Type: Malt, Vinous & Spirituous Liquor
Chairwoman Fancher opened the public hearing and no comments were made. Char Gonsenica was
present to answer any questions.
Board member Phillips moved to approve the special event permit applicaton for the Eagle Valley
Humane Society Pitmaster BBQ and Music Festival on August 18 & 19, 2018. Vice Chairwoman Smith
Hymes seconded the motion and it passed unanimously by Board members present. Board member
Gennett was absent.
5. APPROVAL OF THE MINUTES FROM JUNE 26, 2018 MEETING
Start time: 03:04 Part One
Vice Chairwoman Smith Hymes moved to approve the minutes from the June 26, 2018 Liquor Authority
meeting. Board member Prince seconded the motion and it passed unanimously by Board members
present. Board member Gennett was absent.
6. ADJOURNMENT
There being no further business to come before the Board, Chairwoman Fancher moved to adjourn the
liquor meeting. Board member Phillips seconded the motion and it passed unanimously by Board
members present. Board member Gennett was absent. The time was 5:04 p.m.
TOWN OF AVON, COLORADO
AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, JULY 10, 2018
AVON TOWN HALL, ONE LAKE STREET
Page 2
RESPECTFULLY SUBMITTED:
____________________________________
Debbie Hoppe, 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: Matt Pielsticker, AICP, Planning Director
David McWilliams, AICP, Town Planner
Meeting Date: July 24, 2018
Topic: JOINT WORK SESSION WITH PLANNING AND ZONING COMMISSION
AGENDA
The Planning and Zoning Commissioners will be present at Tuesday’s meeting for a joint work session
to discuss the following items:
Short Term Rentals
o Current State
o Best Practices
o Short term rental discussion questions
Climate Action Plan
o AEC requirements for certain projects
o Residential Building Envelope
o E‐bikes
Housing Plan
o Work Plan Priorities and Schedule
The remainder of this Memorandum provides additional information to frame the agenda topics.
SHORT TERM RENTALS
With the recent uptick in enforcement of Avon Short Term Rental (STR) registration from the finance
department, planning staff is conducting a work session to define the priorities of any further
regulation for STR. STR in Avon is likely as old as the Town itself, and the mountain environment has
been an attractive venue for visitors for much longer.
Currently, the Town regulates STR through a STR overlay district and business licenses. The license
process confirms that the property is allowed for STR through a zoning check. STR is currently
allowed in the majority of residential and mixed‐use areas on the valley floor. There are currently 180
registered STR licenses in the Town of Avon, accounting for approximately 275 total units actively
rented.
Of note is that STR is allowed in the Village at Avon PUD, but it is not illustrated on the map below.
The economics of housing distant visitors in local neighborhoods is beneficial to the community, but
can cause several negative externalities that may diminish community cohesion. These include:
Trash – STR tenants may not be aware of local trash procedures.
Noise – STR tenants are oftentimes vacationing and may disturb neighbors.
Parking – Many properties in Avon are limited in parking availability. Even a small group with
many cars may occupy all available parking in the area.
Strangers in the neighborhood – Oftentimes people are used to a certain order and normalcy
in their neighborhood and feel that STR is not compatible.
Potential to diminish housing stock due to speculative investment – While not empirically
proven, many feel that the availability of local’s housing is diminished by the availability of
STR. That is, investors buy properties expressly for renting them out, thereby making them
unavailable for locals to buy or rent.
Loss of affordable units – Losing additional units that are priced at the lower end of the
housing spectrum over time could impact supply and the ability to purchase (or rent) units in
desirable location in Town.
Many of these concerns can be diminished by a set of rules that bring these issues to the attention of
the tenant, and by having an outlet for proactive resolutions to problems. In light of the relative
ease of advertising and booking rental units online, codifying the roles and responsibilities of STR
businesses is more necessary than ever. To that end, staff suggests that any further STR regulation
should be based on encouraging any STR to function as a good neighbor within their community.
Potential STR regulations for consideration:
Self‐Compliance Affidavit Requirements
Local Agent & Owner Authorization Forms
Signed ‘Good Neighbor’ Guidelines
A copy of the notice sent with proof of mailing to the owner of adjoining residential unit in
your duplex (if required)
Designated Agent must be within 60 minutes drive time of the property
License Number on all advertising (print, online, etc.) and conspicuously inside the property
Verification that all life‐safety requirements required are in place on yearly basis
Buildings, structures, or rooms shall not be used for purposes other than those for which
they were designed or intended
Complaint / Enforcement process that can result in suspension of license
Renter Information Packet including: pet, noise, trash, parking rules, and laws
Work Session Questions:
Are there any other regulations that would make Avon a better community?
Staff is familiar with the Vail model; are there other models that staff should investigate
while undergoing code changes?
Should any changes to the overlay district be proposed?
Should ‘investor’ properties be limited by primary residency requirement?
What type of outreach should be expected from staff? Timing?
CLIMATE ACTION PLAN
o Alternative Equivalent Compliance (AEC) Process
The AEC Process is intended to allow alternative designs that meet the intent of the
development code regulations. Currently, the AEC process is eligible for variations to the
following code sections:
The Strategic Plan includes the following directive: “re‐evaluation of the AEC regulation to
include a stronger nexus, with specific metrics for performance to the Climate Action Plan and
Avon’s Housing Goals.”
Work Session Question:
What type of metrics are appropriate? Can the Town Council provide more direction
on this policy goal?
o Residential Building Envelope
When the 2015 Building Codes were adopted the Town exempted certain insulation
requirements from the Residential Code for single‐family and duplex home construction types.
The sections require a continuous insulation barrier that would result in superior energy
conservation; however, these standards were removed due to push back from builders. Code
amendments are being brought forward under separate to require these universal standards
for new construction.
o E‐bikes
Staff is prepared to return with regulations that modernize Town Code to acknowledge the
state standards for E‐bikes, as well as permitting E‐bikes on paths and within Nottingham Park.
The regulations will be brought forward in the month of September, with a review by PZC and
final action at the Town Council.
HOUSING PLAN
Based upon the feedback received on the draft Workforce Housing Plan, certain work elements from
the plan will be prioritized in the next 12 months. While the plan has not been fully adopted, and
further edits are occurring in preparation for 1st reading of the approval Ordinance on the Town
Council’s August 14, 2018 agenda, the following work and (revised) timeline are offered to update PZC
and Town Council:
Other topics included in the plan, not listed above, include: Swift Gulch housing development,
reviewing revenue streams to determine fund contributions, housing preservation strategies (i.e. Vail
InDEED), and pursuance of land purchases. These other work plan elements will be built back into the
full schedule for commencement in late 2019 and beyond.
Work Session Questions:
Do the revised work plan elements look reasonable?
What type of outreach should be expected from staff for code amendment topics?
Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com
HEIL LAW & PLANNING, LLC MEMORANDUM
TO: Honorable Mayor Fancher and Town Council members
FROM: Eric J. Heil, Town Attorney
RE: Ordinance No. 18-09 Amending Section 2.30.120(b) – Public Contracts
DATE: July 17, 2018
SUMMARY: Ordinance No. 18-09 is presented to Council for public hearing and consideration on second
and final reading. Council approved first reading at the July 10, 2018 regular meeting. Ordinance No. 18-
09 amends Section 2.30.120(b) by adding a new sub-section to create an exemption so that members of
advisory boards, committees and commissions are not prohibited from public contracts with the Town of
Avon if the subject matter of such contracts is not related to the subject matter of the advisory position.
This change will allow members of the business community to participate on advisory boards, committees
and commissions.
PROPOSED MOTION: “I move to approve second and final reading of Ordinance No. 18-09
Amending Section 2.30.120 – Public Contracts of the Avon Municipal Code.”
OVERVIEW: Avon’s Town Code of Ethics is more stringent the State Standards of Conduct with regard to
public contracts because it does not allow any “Town Officer” to enter into any contracts or receive any
compensation, even if such contract or compensation is not related to the advisory role. This rule would
disallow certain members of the Ad Hoc Special Events Committee from serving on this committee
because such members contract with the Town to provide financial services and design services, which
services are wholly unrelated to the subject matter of the Ad Hoc Special Events Committee. Council
provided direction in June to amend the Town Code of Ethics so that members of advisory bodies are not
disallowed from entering into public contracts with the Town which are unrelated to the subject matter of the
advisory body.
Thank you, Eric
ATTACHMENT A: Reprint of Section 2.30.120 – Public Contracts
ATTACHMENT B: Ordinance No. 18-09
ATTACHMENT A: Section 2.30.120 – Public Contracts is reprinted below for convenience with the
proposed added language underlined:
2.30.120 - Public contracts.
(a) The Town shall not enter into any contract with a Town Officer (including spouse or minor
children of the Town Officer) to provide any compensation from the Town for the provision
of goods or services and shall not approve any vendor permit or privilege to conduct
commercial business on Town property during such officer's term, appointment or
employment with the Town; provided that this restriction shall not apply to compensation
provided to any Town Officer for performance of official duties for the Town. This section
shall not operate to restrict the Town from entering into contracts or approving vendor permits
and privileges to an organization which employs a Town Officer if such Town Officer is not
an owner or controlling officer of such organization that receives such compensation, permits
or privileges and such Town Officer declares a conflict of interest in accordance with Section
2.30.060(3) and does not participate in any Town decision related to such public contract. For
the purposes of this section, ownership in an organization shall include any ownership interest
that is greater than one percent (1%).
(b) The provisions of Subsection (a) above shall not apply to:
(1) Investments or deposits in financial institutions which are in the business of loaning or
receiving money; or,
(2) With respect to which the Town Officer has voted therein in accordance with Section
2.30.100; or
(3) Contracts with, or compensation provided to, members of advisory commissions,
committees and boards if the subject matter of such contract or compensation does
not relate to the subject matter or advisory role of the commission, committee or
board.
(c) It shall be a violation of this Chapter for any Town Officer to enter into a contract with the
Town or receive compensation or receive vendor permits or privileges from the Town in
violation of this section.
(d) Any contract approved by the Town or vendor permit or privilege granted by the Town in
violation of this section shall be unenforceable against the Town.
ATTACHMENT B
Ord 18-09 Amending Town Code of Ethics
FINAL – July 24, 2018
Page 1 of 3
TOWN OF AVON, COLORADO
ORDINANCE 18-09
AMENDING SECTION 2.30.120(b) – PUBLIC CONTRACTS
OF THE AVON MUNICIPAL CODE
WHEREAS, the Town of Avon, Colorado (“Town”) is a home rule municipality existing
pursuant to the laws of the Colorado Constitution, the Colorado Revised Statutes and the Town's
Home Rule Charter; and
WHEREAS, the Town Council finds that stringent ethical standards are essential for the
best function of the Avon Town government and are necessary to promote public confidence in
the Avon Town government; and
WHEREAS, the Town Council finds that Section 2.30.120 Public Contracts is more
stringent that the State Standards of Conduct and is not appropriate for advisory committees
which benefit from broad inclusion for the Avon community;
WHEREAS, the Avon Town Council finds that amendments to Section 2.30.120 will
promote the health, safety and general welfare of the Avon community; and
WHEREAS, approval of this Ordinance on First Reading is intended only to confirm that
the Town Council desires to comply the requirements of the Avon Home Rule Charter by setting
a public hearing in order to provide the public an opportunity to present testimony and evidence
regarding the application and that approval of this Ordinance on First Reading does not
constitute a representation that the Town Council, or any member of the Town Council, supports,
approves, rejects, or denies this ordinance.
NOW, THERFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN
OF AVON, COLORADO the following:
Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein
by reference and adopted as findings and determinations of the Town Council.
Section 2. Amendment to Section 2.30.120(b) of the Avon Municipal Code. Section
2.30.120(b) of the Avon Municipal Code is hereby amended to enact a new sub-section (3) to
read as follows:
“(3) Contracts with, or compensation provided to, members of advisory commissions,
committees and boards if the subject matter of such contract or compensation does not
relate to the subject matter or advisory role of the commission, committee or board.”
Section 3. Codification of Amendments. The codifier of the Town’s Municipal Code,
Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes
as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal
Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any
typographical error in the enacted regulations, provided that such correction shall not
ATTACHMENT B
Ord 18-09 Amending Town Code of Ethics
FINAL – July 24, 2018
Page 2 of 3
substantively change any provision of the regulations adopted in this Ordinance. Such
corrections may include spelling, reference, citation, enumeration, and grammatical errors.
Section 4. Severability. If any provision of this Ordinance, or the application of such
provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall
not affect other provisions or applications of this Ordinance which can be given effect without
the invalid provision or application, and to this end the provisions of this Ordinance are declared
to be severable. The Town Council hereby declares that it would have passed this Ordinance and
each provision thereof, even though any one of the provisions might be declared unconstitutional
or invalid. As used in this Section, the term “provision” means and includes any part, division,
subdivision, section, subsection, sentence, clause or phrase; the term “application” means and
includes an application of an ordinance or any part thereof, whether considered or construed
alone or together with another ordinance or ordinances, or part thereof, of the Town.
Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after the date of
final passage in accordance with Section 6.4 of the Avon Home Rule Charter.
Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this
Ordinance is promulgated under the general police power of the Town of Avon, that it is
promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary
for the preservation of health and safety and for the protection of public convenience and
welfare. The Town Council further determines that the Ordinance bears a rational relation to the
proper legislative object sought to be obtained.
Section 7. No Existing Violation Affected. Nothing in this Ordinance shall be construed to
release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or
affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability
incurred, or any cause or causes of action acquired or existing which may have been incurred or
obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any
such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall
be treated and held as remaining in force for the purpose of sustaining any and all proper actions,
suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and
for the purpose of sustaining any judgment, decree or order which can or may be rendered,
entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or
declaring such penalty or liability or enforcing such right, and shall be treated and held as
remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and
appeals pending before any court or administrative tribunal.
Section 8. Publication. The Town Clerk is ordered to publish this Ordinance in accordance
with Chapter 1.16 of the Avon Municipal Code.
[Execution Page follows]
ATTACHMENT B
Ord 18-09 Amending Town Code of Ethics
FINAL – July 24, 2018
Page 3 of 3
INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC
HEARING on July 10, 2018 and setting such public hearing for July 24, 2018 at the Council
Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado.
BY: ATTEST:
____________________________ ___________________________
Jennie Fancher, Mayor Debbie Hoppe, Town Clerk
ADOPTED ON SECOND AND FINAL READING on July 24, 2018.
BY: ATTEST:
____________________________ ____________________________
Jennie Fancher, Mayor Debbie Hoppe, Town Clerk
APPROVED AS TO FORM:
____________________________
Eric J. Heil, Town Attorney
Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com
HEIL LAW & PLANNING, LLC MEMORANDUM
TO: Honorable Mayor Fancher and Town Council members
FROM: Eric J. Heil, Town Attorney
RE: Ordinance No. 18-11 Amplified Sound Permits
DATE: July 17, 2018
SUMMARY: Ordinance No. 18-11 is presented for Council for public hearing and consideration on second
and final reading. Ord. No. 18-11 would amend Chapter 5.24 Amplified Sound Systems to exempt
Amplified Sound Permits for special events approved in Nottingham park. Staff has requested this
amendment to reduce the administrative work and permitting requirements for special event producers.
Currently, administrative approval without a public hearing is allowed for amplified sound permits from
Sunday through Wednesday, from 9:00 a.m. to 8:00 p.m. and on Thursday through Saturday from 9:00
a.m. to 10:00 p.m.
PROPOSED MOTION: “I move to approve second and final reading of Ordinance No. 18-11 Amending
Chapter 5.24 – Amplified Sound Systems.”
AMENDENT TO 5.24.010 – Amplified Sound Permit Required: The proposed amendment is shown
below in RED UNDERLINE.
5.24.010 - Amplified Sound Permit required.
(a) These regulations concerning amplified sound systems are adopted to prevent noise nuisance in
the Town of Avon while allowing for amplified sound for public and private events, establish minimum
standards for the permitting of amplified sound, and adopt procedures for public notification and input
for certain categories of amplified sound. These regulations shall be interpreted and applied so as
not to infringe upon the reasonable constitutional right of free speech and right of assembly.
(b) The following activities and uses of amplified sound shall not require an Amplified Sound Permit:
(i) Amplified sound related to any governmental emergency building, vehicle or response activity;
(ii) Use of amplified sound by an officer, employee or agent of any local, state or federal
government;
(iii) In Nottingham Park, including the Avon Performance Pavilion, for the salute to the USA held
on July 3 of each year; and,
(iv) Small low wattage personal sound amplification devices that do not disturb others;
(v) Amplified sound related to any special event in Nottingham Park, including the Avon
Performance Pavilion, that is approved by the Avon Town Council, provided that the time
for such amplified sound is indicated in the special event approval.
(c) Unless expressly exempt as set forth in subsection (b) above, an amplified sound permit shall be
required and shall be obtained prior to the use and operation of amplified sound outdoors in the
Town of Avon, including use and operation of a loudspeaker or sound-amplifying equipment in a
fixed or movable position or mounted upon any sound truck or other mobile vehicle or equipment.
(d) It is unlawful for any person to use or operate amplified sound outdoors in the town without an
amplified sound permit when an amplified sound permit is required.
Thank you, Eric
ATTACHMENT A: Ordinance 18-11
ATTACHMENT A
Ord 18-11 Amending Amplified Sound Systems
FINAL – July 24, 2018
Page 1 of 3
TOWN OF AVON, COLORADO
ORDINANCE 18-11
AMENDING CHAPTER 5.24 – AMPLIFIED SOUND SYSTEMS
OF THE AVON MUNICIPAL CODE
WHEREAS, the Town of Avon, Colorado (“Town”) is a home rule municipality existing
pursuant to the laws of the Colorado Constitution, the Colorado Revised Statutes and the Town's
Home Rule Charter; and
WHEREAS, the Town Council finds that stringent ethical standards are essential for the
best function of the Avon Town government and are necessary to promote public confidence in
the Avon Town government; and
WHEREAS, the Town Council finds that Section 2.30.120 Public Contracts is more
stringent that the State Standards of Conduct and is not appropriate for advisory committees
which benefit from broad inclusion for the Avon community;
WHEREAS, the Avon Town Council finds that amendments to Section 2.30.120 will
promote the health, safety and general welfare of the Avon community; and
WHEREAS, approval of this Ordinance on First Reading is intended only to confirm that
the Town Council desires to comply the requirements of the Avon Home Rule Charter by setting
a public hearing in order to provide the public an opportunity to present testimony and evidence
regarding the application and that approval of this Ordinance on First Reading does not
constitute a representation that the Town Council, or any member of the Town Council, supports,
approves, rejects, or denies this ordinance.
NOW, THERFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN
OF AVON, COLORADO the following:
Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein
by reference and adopted as findings and determinations of the Town Council.
Section 2. Amendment to Section 5.24.010(b) of the Avon Municipal Code. Section
5.24.010(b) of the Avon Municipal Code is hereby amended to enact a new sub-section (v) to
read as follows:
“(v) Amplified sound related to any special event in Nottingham Park, including the
Avon Performance Pavilion, approved by the Avon Town Council, provided that the time
for such amplified sound is indicated in the special event approval.”
Section 3. Codification of Amendments. The codifier of the Town’s Municipal Code,
Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes
as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal
Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any
typographical error in the enacted regulations, provided that such correction shall not
ATTACHMENT A
Ord 18-11 Amending Amplified Sound Systems
FINAL – July 24, 2018
Page 2 of 3
substantively change any provision of the regulations adopted in this Ordinance. Such
corrections may include spelling, reference, citation, enumeration, and grammatical errors.
Section 4. Severability. If any provision of this Ordinance, or the application of such
provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall
not affect other provisions or applications of this Ordinance which can be given effect without
the invalid provision or application, and to this end the provisions of this Ordinance are declared
to be severable. The Town Council hereby declares that it would have passed this Ordinance and
each provision thereof, even though any one of the provisions might be declared unconstitutional
or invalid. As used in this Section, the term “provision” means and includes any part, division,
subdivision, section, subsection, sentence, clause or phrase; the term “application” means and
includes an application of an ordinance or any part thereof, whether considered or construed
alone or together with another ordinance or ordinances, or part thereof, of the Town.
Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after the date of
final passage in accordance with Section 6.4 of the Avon Home Rule Charter.
Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this
Ordinance is promulgated under the general police power of the Town of Avon, that it is
promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary
for the preservation of health and safety and for the protection of public convenience and
welfare. The Town Council further determines that the Ordinance bears a rational relation to the
proper legislative object sought to be obtained.
Section 7. No Existing Violation Affected. Nothing in this Ordinance shall be construed to
release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or
affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability
incurred, or any cause or causes of action acquired or existing which may have been incurred or
obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any
such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall
be treated and held as remaining in force for the purpose of sustaining any and all proper actions,
suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and
for the purpose of sustaining any judgment, decree or order which can or may be rendered,
entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or
declaring such penalty or liability or enforcing such right, and shall be treated and held as
remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and
appeals pending before any court or administrative tribunal.
Section 8. Publication. The Town Clerk is ordered to publish this Ordinance in accordance
with Chapter 1.16 of the Avon Municipal Code.
[Execution Page follows]
ATTACHMENT A
Ord 18-11 Amending Amplified Sound Systems
FINAL – July 24, 2018
Page 3 of 3
INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC
HEARING on July 10, 2018 and setting such public hearing for July 24, 2018 at the Council
Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado.
BY: ATTEST:
____________________________ ___________________________
Jennie Fancher, Mayor Debbie Hoppe, Town Clerk
ADOPTED ON SECOND AND FINAL READING on July 24, 2018.
BY: ATTEST:
____________________________ ____________________________
Jennie Fancher, Mayor Debbie Hoppe, Town Clerk
APPROVED AS TO FORM:
____________________________
Eric J. Heil, Town Attorney
TOWN COUNCIL REPORT
To: Honorable Mayor Jennie Fancher and Avon Town Council
From: Scott Wright, Interim Town Manager
Meeting Date: July 24, 2018
Re: Ordinance No. 18-12, Clayton Holdings LLC State & Municipal Lease/Purchase
Agreement; Lease Number: 5000218-002
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: 5000218-002, for the financing of a 150.15kW
solar panel array to be installed at the Avon Regional Transit Facility.
Proposed Motion
“Motion to approve Ordinance 18-12, an ordinance authorizing the execution and delivery of a state
and municipal lease/purchase agreement dated August 24, 2018 between the Town of Avon and
Clayton Holdings LLC to finance the purchase and installation of 150.15kW solar panel array 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. In this
particular financing arrangement, the Town of Avon contracts with Holy Cross Energy to sell the
Town's energy production back to Holy Cross for 9.572 cents per kWh (Kilowatt Hour). This rate
increases each year. The revenue stream generated by the sale is approximately $22,000 per year.
This revenue stream extends for 25 years.
The amount of the lease is $258,258 to be amortized over a term of seven (7) years with annual
payments of $41,754.80 at an interest rate of 3.39%. The attached cash flow analysis shows that the
annual negative cash flow is approximately $20,000 per year for 7 years. The Town recovers its
investment in 14 years, and produces a positive cash flow from then on to the 25th year of
approximately $25,000 per year.
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 2017.
Attachments:
A - Clayton Holdings LLC Bank Proposal and Terms
B - Financial Analysis
C - Ordinance No. 18-12
D - Lease/Purchase Agreements and Documents
8000 Forsyth Boulevard
St. Louis, Missouri 63105-1797 (314) 746-3678
06/14/2018
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: New Solar Photovoltaic System Total Finance Amount: $258,258.00
Commencement Date: 08/24/2018
Base Term: 7 years (84 months)
Interest Rate: 3.39% fixed, rate locked until 07/14/2018
Payment Frequency: Semiannual/Arrears
*The first payment is due six months after closing. Payment Amount: Semiannual/Arrears - $20,877.40 (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 (the “Index”). For Purposes of this proposal, the Seven (7) year interest
rate swap as of 06/14/2018 is 2.97%.
In the event the transaction does not close by 07/14/2018, Lessor reserves the right,
but has no obligation, to adjust the Interest Rate after 07/14/2018 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 07/14/2018
would be calculated according to the following formula:
Then Current Seven (7) year Swap rate plus # bps x .79 = Transaction Rate
ATTACHMENT A
Example:
Seven (7) year Swap Rate as of 06/14/2018 = 2.97% + 132 bps = 4.29% x .79 =
3.39%
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. Lessor must be listed as an insured party on the Payment and Performance Bonds (required)
under a “dual obligee” rider.
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.
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.
ATTACHMENT A
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
6/19/2018 11:04 AM Page 1Town of Avon CO
Compound Period:Semiannual
Nominal Annual Rate:3.390%
CASH FLOW DATA
Event Date Amount Number Period End Date
1 Lease 8/24/2018 258,258.00 1
2 Lease Payment 2/24/2019 20,877.40 14 Semiannual 8/24/2025
AMORTIZATION SCHEDULE - Normal Amortization, 360 Day Year
Date Lease Payment Interest Principal Balance
Lease 8/24/2018 258,258.00
2018 Totals 0.00 0.00 0.00
1 2/24/2019 20,877.40 4,377.47 16,499.93 241,758.07
2 8/24/2019 20,877.40 4,097.80 16,779.60 224,978.47
2019 Totals 41,754.80 8,475.27 33,279.53
3 2/24/2020 20,877.40 3,813.39 17,064.01 207,914.46
4 8/24/2020 20,877.40 3,524.15 17,353.25 190,561.21
2020 Totals 41,754.80 7,337.54 34,417.26
5 2/24/2021 20,877.40 3,230.01 17,647.39 172,913.82
6 8/24/2021 20,877.40 2,930.89 17,946.51 154,967.31
2021 Totals 41,754.80 6,160.90 35,593.90
7 2/24/2022 20,877.40 2,626.70 18,250.70 136,716.61
8 8/24/2022 20,877.40 2,317.35 18,560.05 118,156.56
2022 Totals 41,754.80 4,944.05 36,810.75
9 2/24/2023 20,877.40 2,002.75 18,874.65 99,281.91
10 8/24/2023 20,877.40 1,682.83 19,194.57 80,087.34
2023 Totals 41,754.80 3,685.58 38,069.22
11 2/24/2024 20,877.40 1,357.48 19,519.92 60,567.42
12 8/24/2024 20,877.40 1,026.62 19,850.78 40,716.64
2024 Totals 41,754.80 2,384.10 39,370.70
13 2/24/2025 20,877.40 690.15 20,187.25 20,529.39
14 8/24/2025 20,877.40 348.01 20,529.39 0.00
2025 Totals 41,754.80 1,038.16 40,716.64
Grand Totals 292,283.60 34,025.60 258,258.00
ATTACHMENT A
6/19/2018 11:04 AM Page 2
Last interest amount increased by 0.04 due to rounding.
ATTACHMENT A
Financed Generation System - Avon RTF
System Size 150.15
Cost 258,258
Value of Rebates 0
Inflation rate 2%
Discount rate 4%
Energy escalation rate 2%
PV derate 0.050%
Financial Indicators
NPV $124,556
Payback Year 13.8
Year 0 1 2 3 4 5 6
Energy Production (kWh)kWh 229345 228198 227057 225922 224792 223668
Electricity Price $0.09572 0.09763 0.09959 0.10158 0.10361 0.10568
Electricity Income revenue $21,952.90 22,280.00 22,611.97 22,948.89 23,290.83 23,637.86
Total Avoided cost cumulative 21,952.90 44,232.91 66,844.88 89,793.77 113,084.60 136,722.47
O&M costs $-500.00 -510.00 -520.20 -530.60 -541.22 -552.04
Inverter replacement $
Total Operating Costs -500.00 -510.00 -520.20 -530.60 -541.22 -552.04
Operating Cashflow $21,452.90 21,770.00 22,091.77 22,418.29 22,749.61 23,085.82
Amoritization Schedule
Principal $-33,279.53 -34,417.26 -35,593.90 -36,810.75 -38,069.22 -39,370.70
Interest $-8,475.27 -7,337.54 -6,160.90 -4,944.05 -3,685.58 -2,384.10
Total Debt Service $-41,754.80 -41,754.80 -41,754.80 -41,754.80 -41,754.80 -41,754.80
Annual Cashflow $-20,301.90 -19,984.80 -19,663.03 -19,336.51 -19,005.19 -18,668.98
Project net cash flow $-20,301.90 -40,286.69 -59,949.72 -79,286.23 -98,291.42 -116,960.40
Discounted net cash flows $-19,521.05 -37,247.31 -53,295.08 -67,774.20 -80,788.38 -92,435.50
Notes:
1) Cashflow extends for 25 years based on the 25 year warrantied life of the solar panels
2) Holy Cross Gen tariff contract extends for 20 years. Financial model assumes no escalation on value of KWhs after year 20.
Years
25 Year Cash Flow Analysis
ATTACHMENT B
7 8 9 10 11 12 13
222550 221437 220330 219228 218132 217042 215956
0.10780 0.10995 0.11215 0.11439 0.11668 0.11902 0.12140
23,990.07 24,347.52 24,710.30 25,078.48 25,452.15 25,831.39 26,216.28
160,712.53 185,060.05 209,770.35 234,848.83 260,300.98 286,132.37 312,348.65
-563.08 -574.34 -585.83 -597.55 -609.50 -621.69 -634.12
-10,000
-563.08 -574.34 -585.83 -597.55 -609.50 -10,621.69 -634.12
23,426.99 23,773.18 24,124.47 24,480.94 24,842.65 15,209.70 25,582.15
-40,716.64
-1,038.16
-41,754.80
-18,327.81 23,773.18 24,124.47 24,480.94 24,842.65 15,209.70 25,582.15
-135,288.21 -111,515.03 -87,390.56 -62,909.63 -38,066.97 -22,857.27 2,724.88
-102,807.92 -81,482.94 -61,399.45 -42,499.49 -24,727.58 -14,276.58 1,636.49
Solar Investment
ATTACHMENT B
TOWN OF AVON, COLORADO ORDINANCE NO. 18-12
SERIES OF 2018
AN ORDINANCE AUTHORIZING THE EXECUTION AND DELIVERY OF A
STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT DATED AUGUST 24, 2018 BETWEEN THE TOWN OF AVON AND CLAYTON HOLDINGS LLC TO PURCHASE AND INSTALL A 150.15KW SOLAR ARRAY AT THE AVON
REGIONAL TRANSIT FACILITY 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 and install a 150.15kW solar panel array (“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 Finance Director 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.
ATTACHMENT C
Section 2. Other Actions Authorized. The officers and employees of the Lessee shall take 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
ATTACHMENT C
to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional
or invalid. As used in this Section, the term “provision” means and includes any part, division,
subdivision, section, subsection, sentence, clause or phrase; the term “application” means and
includes an application of an ordinance or any part thereof, whether considered or construed
alone or together with another ordinance or ordinances, or part thereof, of the Town.
Section 6. Effective Date. This Ordinance shall take effect thirty days after final adoption in
accordance with Section 6.4 of the Avon Home Rule Charter.
Section 7. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is
promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary
for the preservation of health and safety and for the protection of public convenience and
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 C
INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED POSTED
AND REFERRED TO PUBLIC HEARING and setting such public hearing for 5:30 on July
24, 2018 at the Council Chambers of the Avon Municipal Building, located at One Lake Street,
Avon, Colorado, on July 10, 2018.
____________________________
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 July 24, 2018.
____________________________
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 C
CLAYTON HOLDINGS, LLC
STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT
Lease Number: 5000218-002
This State and Municipal Lease/Purchase Agreement (the "Lease") is made and entered into on this, the 20th day of June 2018 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 part hereof. Subject to the terms and conditions hereof, Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor the equipment described in Schedule A, with all replacement parts, repairs, additions and accessories incorporated therein or affixed thereto (herein collectively called the "Equipment"). 2. DELIVERY AND ACCEPTANCE: Lessee agrees to order the Equipment from the supplier of such Equipment, but will not be liable for specific performance 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 be delivered at the location specified in Schedule A (the "Equipment Location"). Lessee will pay all transportation and other costs, if any, incurred in connection 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 period has expired. Lessee will have no more than thirty (30) days from the date of delivery of the Equipment to accept such Equipment. In the event the 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 to terminate this Lease. Lessee will evidence its acceptance of the Equipment by executing and delivering to Lessor a delivery and acceptance certificate in the form of Schedule B attached hereto and made a part hereof (the "Acceptance Certificate"). Lessee hereby authorizes the Lessor to 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 the earlier of the date Lessee executes the Acceptance Certificate or the date funds sufficient to purchase the Equipment are deposited with a bank or trust company in an escrow fund (the "Start Date") and will extend through the end of Lessee's fiscal year containing the Start Date. Unless earlier 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 in Schedule C (the "Rental Payments"). A portion of each Rental Payment is paid as and represents the payment of interest as set forth in Schedule C. The Rental Payments will be payable without notice or demand, at the office of Lessor (or such other place as Lessor or any Assignee 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 (as designated in Schedule C) for the duration of the Lease Term. Any notice, invoicing, purchase orders, quotations or other forms or procedures requested by Lessee in connection with payment will be fully explained and provided to Lessor or any Assignee sufficiently in advance of the payment 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 to the greater of five (5%) percent of such delinquent amount or Twenty-Five Dollars ($25.00), but in any event not more than the maximum permitted by law. Such late charge shall be payable by Lessee upon demand by Lessor and shall be deemed rent hereunder. Lessee acknowledges 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 late payment and (iii) is reasonable in amount. Lessor and Lessee understand and intend that the obligation of Lessee to pay Rental Payments hereunder will constitute a current expense of Lessee and will not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness by Lessee. EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 8 HEREOF, THE RENTAL PAYMENTS SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS AND WILL NOT 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 the Rental Payments on Schedule C will be adjusted commencing with the first day of the next succeeding fiscal year of the Lessee, but only if this Lease is renewed for such fiscal year, and thereafter, so that Lessor, its Assignees and any participants with such, will be in the same after-tax position they would have been in had such payment been excluded from the gross income of Lessor, its Assignees and any participants with such under 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 and budgeting requirements where necessary and by due notification has presented this Lease for approval and adoption as a valid obligation on its part and that all requirements have been met and procedures have been followed to ensure the enforceability of the Lease; (c) it has sufficient appropriations or other funds available to pay all amounts due hereunder for the current fiscal year period; (d) no event has occurred and no condition 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,
ATTACHMENT D
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 any time 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 time during the past five (5) years, has been terminated by Lessee as a result of insufficient funds being appropriated in any fiscal period.
6. LESSEE CERTIFICATION: Lessee warrants and covenants that (i) it is a state, or a political subdivision thereof, within the meaning of Section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), and the related regulations and rulings thereunder; (ii) subject to Section 8 hereof, 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 as interest in Schedule C, will not be includable in the gross income of Lessor, its Assignee or any participants with such for the purposes of federal income taxation; (iii) this Lease represents a valid deferred payment obligation of Lessee for the amount herein set forth; (iv) Lessee has the legal capacity 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 in Section 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 action or omission will cause the interest portion of any Rental Payment hereunder to be includable in gross income for federal income taxation purposes.
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 the Rental Payments, including any Rental Payments required by Section 4 hereof, may be made, including making provisions for such payments, to the extent necessary, in each proposed annual budget submitted for approval in accordance with applicable procedures of Lessee. Notwithstanding the foregoing, the decision whether or not to budget or appropriate funds or to extend this Lease for any subsequent annual fiscal period is solely within the 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 if funds 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 immediate use of substantially all the Equipment, which need is not temporary or expected to diminish in the foreseeable future; and (c) the Equipment will be used by the Lessee only for the purpose of performing one or more of its governmental or proprietary functions consistent with the permissible scope of its authority. 8. NONAPPROPRIATION OF FUNDS: In the event no funds or insufficient funds are appropriated and budgeted or otherwise made available for
Rental Payments, including any Rental Payments required by Section 4 hereof, for any fiscal period in which the Rental Payments for the Equipment are due under this Lease, then, without penalty, liability or expense to Lessee, this Lease will thereafter terminate and be rendered null and void on the last day of the fiscal period for which appropriations were made, except as to (i) the portions of the Rental Payments herein agreed upon for which funds have been appropriated and budgeted or are otherwise available and (ii) Lessee's other obligations and liabilities under this Lease relating to, accruing or arising prior to such termination. Lessee will, not less than sixty (60) days prior to the end of such applicable fiscal period, in writing, notify Lessor and any Assignee of such occurrence, but failure to give such notice will not prevent such termination. In the event of such termination, Lessee agrees to peaceably surrender possession of the Equipment to Lessor or its Assignee on the 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 its Assignee 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 SELECTED BOTH 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, THAT LESSOR IS NOT A MANUFACTURER, VENDOR, DISTRIBUTOR OR LICENSOR OF SUCH EQUIPMENT, AND THAT LESSOR LEASES THE EQUIPMENT 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 ANY WARRANTIES 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 OTHER DAMAGES 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, INCLUDING INTERRUPTION 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.
ATTACHMENT D
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 below has occurred and/or this Lease has not been terminated pursuant to the provisions of Section 8 above. Upon the earlier of (i) termination of this Lease 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's obligations 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, improvements and substitutions thereto, now or hereafter acquired, together will all rents, issues, income, profits and proceeds thereof, including insurance
proceeds; (b) agrees that financing statements evidencing such security interest may be filed; and (c) agrees to execute and deliver all certificates of title and other instruments necessary or appropriate to evidence and perfect such security interest. Lessee further agrees that the Uniform Commercial Code will apply as between the parties hereto and Assignees of Lessor.
11. PERSONAL PROPERTY: The Equipment is, and will remain, personal property and will not be deemed to be affixed or attached to real property or 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 arising
out of, its possession, use or maintenance. Lessee, at its sole costs and expense, will maintain the Equipment according to the manufacturer's recommended guidelines or the equivalent and meet any and all recertification requirements and will furnish proof of such maintenance, if requested 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 value will 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 be
changed from the Equipment Location without Lessor's prior written consent, which consent will not be unreasonably withheld. Lessor will be entitled to enter upon the Equipment Location or elsewhere during reasonable business hours to inspect the Equipment or observe its use and operations. 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 to pay 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 any charges 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, and no 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 any
insurance recovery will be applied to the cost of such repair). If Lessor determines that any item of Equipment is lost, stolen, destroyed or damaged beyond repair, Lessee, at the option of Lessor, will (a) replace the same with like equipment in good repair; or (b) on the next Rental Payment 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 payment
with 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 the Rental Payments then remaining unpaid hereunder, as applicable, to be made by Lessee with respect to the Equipment which has suffered the event 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 property damage 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 the
Lease Term or (ii) any minimum required by any co-insurance provisions of such insurance, (b) liability insurance that protects Lessor from liability in all events in form and amount satisfactory to Lessor, and (c) workers' compensation coverage as required by the laws of the state in which 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 a
clause 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 policy or 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 and
make 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 hold Lessor, its Assignees, or any participants with such, harmless from, any and all claims, actions, proceedings, expenses, damages, liabilities or losses (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 such failure continues for ten (10) days after the date thereof; (b) Lessee fails to perform or observe any other covenant, condition or agreement to be performed or observed by it hereunder and such failure is not cured within ten (10) days after written notice thereof by Lessor; (c) the discovery by Lessor 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 they
become due, makes an assignment for the benefit of creditors, applies or consents to the appointment of a receiver, trustee, conservator or
ATTACHMENT D
liquidator of Lessee or of all or substantial part of its assets, a petition for relief is filed by Lessee under federal bankruptcy, insolvency or similar laws, 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's Assignee 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) by
written notice to Lessee, declare an amount equal to all amounts then due under this Lease and all remaining Rental Payments which will become 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 by law 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 agrees that 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, may enter upon the premises where the Equipment is located and take immediate possession of and remove the same without liability to Lessor or its 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.
ATTACHMENT D
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.
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 D
SCHEDULE A TO
STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT Lease No. 5000218-002 Description of Equipment
Location of Equipment
Street Address: ________________________________ (Town’s Transit Station)
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)
New Solar Photovoltaic System – 150kW PV solar system $258,258.00 and related components (panels, optimizers, inverters),
Installation on the roof of the Town’s Transit Station
TOTAL $258,258.00
ATTACHMENT D
SCHEDULE B TO
STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT
Lease No. 5000218-002
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 June 20, 2018 ("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 D
!
"#
$ %
&
'(& )
*
+ , -' ,"%''. '$ . ' /
! " #
$ %
& '
#( #(
)
)
(()*
*
(
))
+
),
)#)
-)
#*
())#
(
-./0 123#40 143#20) )(
+ )
(
((
+
ATTACHMENT D
SCHEDULE D TO
STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT
Lease No. 5000218-002
OPINION OF COUNSEL
(To be on Letterhead of Lessee's Counsel)
[Date]
Re: State and Municipal Lease/Purchase Agreement No. 5000218-002 dated June 20, 2018 (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 D
SCHEDULE E TO
STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT
Lease No. 5000218-002
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 Avon Town Council 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 June 20, 2018, 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
Assistant Town Manager Scott Wright ____________________
Mayor Jennie Fancher ____________________
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
_________, 2018. LESSEE: Town of Avon, Colorado
BY:
X
ATTACHMENT D
STATE & MUNICIPAL LEASE/PURCHASE AGREEMENT
Lease No. 5000218-002
ESSENTIAL USE/SOURCE OF FUNDS LETTER
June 20, 2018
Clayton Holdings, LLC
8000 Forsyth Boulevard
St. Louis, Missouri 63105
Re: State and Municipal Lease/Purchase Agreement No. 5000218-002, dated June 20, 2018 (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 D
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 Upon acceptance of the Equipment and upon each insurance renewal date, Lessee will deliver to Lessor a certificate
evidencing such insurance. 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 D
ACH Payment Authorization Form
Lease No. / Loan No: 5000218-002 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. ___________ Debit Amount(s): $_____________
Begin Auto Debit with Invoice Date Due:
The final or balloon payment, if different from the ____________ 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 D
DISBURSEMENT LETTER
Date: August 24, 2018
To: Clayton Holdings, LLC
8000 Forsyth Boulevard, Suite 510 St. Louis, MO 63105 RE: Town of Avon, Colorado Lease Number: 5000218-002
Ladies and Gentlemen:
Please disburse the proceeds of the above lease as follows:
Wire or send to PAYEE
Commerce Bank Escrow Account $258,258.00 Total Disbursement $258,258.00
Sincerely,
LESSEE: Town of Avon, Colorado
DATE:
_________________________________________________________________________________________________ X
BY:
TITLE:
ATTACHMENT D
ATTACHMENT D
ATTACHMENT D
!" # !
$
% $
#&
!'
() *)+*+ ,
-$
.## /
*%
0 1-2
+3 ))
!"
# $%###
## "& & ' ()
#
!#*##"+# # ,
# -
# "###",
# "& & ' #
##
$ *
#
$ # ""
&
#
# # ""
###.
$ # " '
##
# " & & ' # #
##
$ * $# "
'
/ #(
#
!#*#%###
,
$
#, #
#%##"
&
##()#+#
##' "
##
$
!"
%#(%##,
+
,
"
#''
!"
(
0# #+# " ' ,
#
# ""
###$ # "'
##
# "& & ' #
* ,("$
"
+# ## #$
'
' #(
!"#$% &&'(
1 -"
"#+# ## #,
,,##%### #
#(
*4 & '$ & $
# !
$ #$
$&5 $ $
&
& 6 & $
# ! &! $
$" #$ ! $
$$! $&$
7 %
$8$
$
#$
$&&59!$
! &$
$' $
'
$
&
$! #" $&5 $ $
$
#$ *)******
* 4 & '$ & $
# !
$&"$
&$
# &
# $$
!
$$!
#$'$
% #
!&
"# $$'$%'
$ #$&:
$ 6)******
#+(# , !$ ' (
* & !
$
%
" & # & ! $'!
5#
$! #$ 9!$&$
#$&!
$
%& 6)******
"$#
# ' ' +&#$% ') , - . # +/ )
* & #" 7 !$
$
$
&$
&$ &$
!
#$
*
,* ;&$ &!
# & $'! 6<=====================
0)1
21
31
ATTACHMENT D
ESCROW AGREEMENT
This Escrow Agreement (the “Escrow Agreement”), dated as of June 20, 2018, 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 THE COMMERCE TRUST COMPANY, a Missouri banking
corporation, as escrow agent (together with its successors and assigns, the “Escrow Agent”).
Name of Acquisition Fund: “Avon CH Sch 002”
Amount of Deposit into the Acquisition Fund: $258,258.00
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 June 20, 2018, (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 D
-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 D
-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 D
-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 D
-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: Officer
TOWN OF AVON, COLORADO
LESSEE
By:
Title:
THE COMMERCE TRUST COMPANY
ESCROW AGENT
By:
Title:
ATTACHMENT D
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 D
-1
EXHIBIT B
FORM OF PAYMENT REQUEST AND ACCEPTANCE CERTIFICATE
To: THE COMMERCE TRUST COMPANY, as Escrow Agent
CLAYTON HOLDINGS, LLC, as Lessor
8000 Forsyth Blvd., Suite 510
St. Louis, Missouri 63105
Re: Avon CH Sch 002 Acquisition Fund established by the Escrow Agreement, dated as of
June 20, 2018 (the “Escrow Agreement”) among Clayton Holdings, LLC, as lessor
(“Lessor”), Town of Avon, Colorado, as lessee (“Lessee”), and The Commerce Trust
Company, 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 June 20, 2018 (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 D
-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: Officer
ATTACHMENT D
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 D
TOWN COUNCIL REPORT
To: Honorable Mayor Jennie Fancher and Avon Town Council
From: Louise Duncan, Interim Manager of Special Events
Meeting Date: July 24, 2018
Agenda Topic: PUBLIC HEARING VAIL VALLEY FOUNDATION APPLICATION FOR OUTDOORS USE OF SOUND
AMPLIFICATION SYSTEM FOR DANCING IN THE PARK JULY 30 AND AUGUST 8, 2018
ACTION BEFORE COUNCIL
The Town Council is asked to consider approving an Amplified Sound Permit on July 24, 2018, as
requested by Vail Valley Foundation.
PROPOSED MOTION
I move to approve (or approve with conditions or deny) the Amplified Sound Permit for Dancing in the
Park Series in Harry A. Nottingham Park on Monday, July 30 and Wednesday, August 8, 2018.
BACKGROUND
Ordinance 15-07 amending AMC 5.24, Section 9.12.080 provides the framework for issuing this type of
permit.
The Council, in making its decision to issue the Amplified Sound Permit, may consider the following:
1.1. Comments by the public.
1.2. Necessity of the permit for the cultural, historical or social benefit of the community.
1.3. Proximity of the proposed location to residential neighborhoods.
1.4. Proposed direction of sound projection.
1.5. Screening of sound from neighboring properties.
1.6. Compatibility with other uses and activities in the vicinity.
The Town Council may prescribe any conditions or requirements deemed necessary to minimize
adverse effects upon the community or surrounding neighborhood.
ATTACHMENTS
Application for Outdoor Use of Amplified Sound Equipment
TOWN COUNCIL REPORT
To: Honorable Mayor Jennie Fancher and Avon Town Council
From: Louise Duncan, Interim Manager of Special Events
Meeting Date: July 24, 2018
Agenda Topic: PUBLIC HEARING VAIL VALLEY CHARITABLE FUND PERMIT APPLICATION FOR OUTDOORS USE OF
SOUND AMPLIFICATION SYSTEM FOR BEC TRI SPRINT TRIATHLON AUGUST 4, 2018
ACTION BEFORE COUNCIL
The Town Council is asked to consider approving an Amplified Sound Permit on July 24, 2018, as
requested by Vail Valley Charitable Fund.
PROPOSED MOTION
I move to approve (or approve with conditions or deny) the Amplified Sound Permit for Bec Tri Sprint
Triathlon in Harry A. Nottingham Park on August 4, 2018.
BACKGROUND
Ordinance 15-07 amending AMC 5.24, Section 9.12.080 provides the framework for issuing this type of
permit.
The Council, in making its decision to issue the Amplified Sound Permit, may consider the following:
1.1. Comments by the public.
1.2. Necessity of the permit for the cultural, historical or social benefit of the community.
1.3. Proximity of the proposed location to residential neighborhoods.
1.4. Proposed direction of sound projection.
1.5. Screening of sound from neighboring properties.
1.6. Compatibility with other uses and activities in the vicinity.
The Town Council may prescribe any conditions or requirements deemed necessary to minimize
adverse effects upon the community or surrounding neighborhood.
ATTACHMENTS
Application for Outdoor Use of Amplified Sound Equipment
Diagram of Event on Harry A. Nottingham Park Upper Field showing Amplified Sound
Projections
Ordinance 18-13, Amendment the Avon Building Code
TOWN COUNCIL REPORT
To: Honorable Jenny Fancher and Avon Town Council
From: David McWilliams, AICP, Town Planner
Matt Pielsticker, AICP, Planning Director
Meeting Date: July 24, 2018
Topic: FIRST READING OF ORDINANCE 18-13, AMENDING TITLE 15, BUILDINGS AND
CONSTRUCTION, AVON MUNICIPAL CODE, MODIFYING CONTRACTOR
LICNESING REQUIREMENTS AND INSULATION STANDARDS FOR NEW
RESIDENTIAL CONSTRUCTION
ACTION BEFORE COUNCIL
Before Council is action on First Reading of Ordinance 18‐13, drafted to approve changes to the Avon
Building Code (Title 15, Avon Municipal Code).
RECOMMENDED MOTION
“I move to approve first reading of Ordinance 18‐13, thereby approving changes to the Avon Building
Code.”
INTRODUCTION
Contractor licensing has been administered within the Community Development division and is handled
by the building department. For many years contractor licensing has been a cash or check proposition
handled either by mail or walk in. To obtain a Contractor License, a contractor must submit the proper
insurance and pay the appropriate fee associated with the contractor type, either general contractor,
sub-contractor or municipal contractor.
All monies are deposited with the finance department, a formal Contractor License was mailed out and
conformation of proper insurance was recorded. All contractors were kept track of in a database used
by the building division and updated as necessary. This results in labor intensive administration.
There was also a disconnect between the Contractor license and the Business license, required for all
businesses doing business in Town. The Business License is the best way to track the cost of materials
coming into the Town and the collection of taxes on such materials. While the departments do
proactively coordinate, occasionally having two systems for licensing left some contractors getting
Contractor Licenses without getting the required Business License.
Staff is in the process of executing a new contractor registration and payment system using the same
website as the business license process for ease of use. For ease of use, the process also creates slightly
different license categories and fees: General Contractor ($125); Subcontractor ($35); Municipal
Contractor ($75); and Owner-builder ($0). Electrician and plumbing licenses are handled by the state,
and staff has eliminated the payment requirement for them in compliance with state law. Avon
Municipal Code has a different fee structure, and staff wants to bring the fee schedule in line with the
changes while the new system is still in the “soft opening”.
Ordinance 18-13, Amendment the Avon Building Code
ADDITIONAL CODE AMENDMENT FOR BUILDING ENVELOPE
In the 2015 Residential Code R402.1.2, the Table for insulation and fenestration requirements by
Component, states: “In Climate Zone 6, Wood Frame wall, R-Values shall be, 20+5 or 13+10, The first value
is the wall cavity insulation and the second value is to be continuous insulation.” Upon adopting the 2015
Building Codes, the Town Council gave an exception for the residential builders so they could build as
they had in the past with R21 insulation in the wall cavity and standard wood sheeting on exteriors, with
a wind barrier and some type of cladding, either siding or other wall covering.
Over the years the Energy Code has addressed the energy efficiency of building systems and appliances
such as, boilers, furnaces, water heaters, refrigerators, dishwashers and more, in an attempt to cut
down on wasted energy. These changes were easy because the building industry had no choice because
older systems were no longer available and only the most efficient appliances could be purchased. The
Energy Code now requires insulation on hot water piping, recirculation of hot water and other ways to
save energy.
When the 2015 Building Codes were adopted it was thought by some builders that the continuous
insulation was too difficult to install and would cost a lot of money, adding to the cost of the home. It is
now better understood by the building industry and products are more readily available and are more
numerous, making for a better selection and more options. The continuous insulation is installed on the
outside of the structure creating a thermal break on the outside of the building and keeping the uneven
R values of insulation, wood members, and other elements from transferring heat at different rates.
It is now understood that, in the United States, 114 million households and more than 4.7 million
commercial buildings consume more energy than the transportation or industry sectors, accounting for
nearly 40 percent of total U.S energy use. The number of households and commercial buildings vary in
other reports but this information is on the low side and comes from the U.S Energy Information
Administration EIA. The U.S Building council USGBC, has stated that buildings account for 39% of CO2
emissions in the USA. The think tank Architecture 2030, states that all buildings account for 47.6% of all
energy used in the USA and up to 75% of electricity produced in the U.S. is used just to operate buildings.
If we are to use all the tools we can for energy efficiency, the continuous insulation should be reinstated,
as drafted in the attached Ordinance, as prescribed by the Residential Code and the Energy Code.
Incremental increases in the construction costs are far outweighed by the long-term energy savings for
the new buildings constructed in Town.
Local Permit Holders
Town staff emailed this report to the following contractors who are active in the community to solicit
comments: Saltbox Custom Homes., Dave Dantas, John Sunder Inc., Sean Reynolds, Evans Chaffee, R.A.
Nelson, and Beck Building Company. They were informed of the meeting dates and proper public
comment protocol.
Ordinance 18-13, Amendment the Avon Building Code
AVAILABLE ACTIONS
1) Approve First Reading of Ordinance 18‐13, and set forth the Public Hearing date for August 14,
2018.
2) Continue First Reading of Ordinance 18‐13 with direction to return with additional information.
Attachment
Ordinance 18-13
Ord 18-13 Building Code Changes
July 24, 2018 FIRST READING Page 1 of 3
TOWN OF AVON
ORDINANCE 18-13
AMENDING TITLE 15, BUILDINGS AND CONSTRUCTION, AVON MUNICIPAL
CODE, MODIFYING CONTRACTOR LICENSING REQUIREMENTS AND
INSULATION STANDARDS FOR NEW RESIDENTIAL CONSTRUCTION
RECITALS
WHEREAS, the Town of Avon (“Town”) is a home rule municipal corporation and body politic
organized under the laws of the State of Colorado and possessing the maximum powers, authority and
privileges to which it is entitled under Colorado law; and
WHEREAS, pursuant to the home rule powers of the Town of Avon ("Town"), the Town Council
has the power to adopt Building and Construction Codes, and make and publish ordinances necessary
and proper to provide for the safety, preserve the health, promote the comfort, and convenience of its
inhabitants, and promote the conservation of energy; and
WHEREAS, the Town Council finds that the modification of Section 15.10.130, Table 402.1.2, will
promote the conservation of energy in new residential construction; and
WHEREAS, the Town Council finds that modifications to the contractor licensing requirements will
streamline processes in place for new and returning contractors doing work in the Town of Avon; and
WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Town
Council desires to comply the requirements of the Avon Home Rule Charter by setting a public hearing in
order to provide the public an opportunity to present testimony and evidence regarding this application and
that approval of this Ordinance on first reading does not constitute a representation that the Town Council,
or any member of the Town Council, supports, approves, rejects , or denies this ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
AVON, COLORADO:
Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by
reference and adopted as findings and determinations of the Town Council.
Section 2. Amendment to Chapter 15.08.050(c), Section 109.7, Contractor Licensing, is amended to
read as follows, with strikeout indicated language to be deleted and underline indicating language to be
adopted:
“109.7 Contractor licensing. All contractors, including those except Electricians and
Plumbing Contractors, who are duly licensed by the State, shall purchase a license for
conducting work within the Town of Avon. Established annual fees and Class
designations are:
Ord 18-13 Building Code Changes
July 24, 2018 FIRST READING Page 2 of 3
Class I General Contractor $125.00
Class II Other Specialty Contractor $35.00
Class III Municipal Contractor $75.00
Class IV Owner-Builder $0
Licenses issued pursuant to this section shall be valid for a period of one year from the date
of issue. Every contractor, including Electrical Contractors and owner-builders, shall provide
current certificate of insurance for statutory workers’ compensation and commercial general
liability insurance of one million dollars per occurrence and two million dollars general
aggregate before a contractor’s license is issued.”
Section 3. Amendment to Chapter 15.10.060(d), Section 108.6, Contractor Licensing, is amended
to read as follows, with strikeout indicated language to be deleted and underline indicating language to be
adopted:
“108.6 Contractor licensing. All contractors, including those except Electricians and
Plumbing Contractors, who are duly licensed by the State, shall purchase a license for
conducting work within the Town of Avon. Established annual fees and Class
designations are:
Class I General Contractor $125.00
Class II Other Specialty Contractor $35.00
Class III Municipal Contractor $75.00
Class IV Owner-Builder $0
Licenses issued pursuant to this section shall be valid for a period of one year from the date
of issue. Every contractor, including Electrical Contractors and owner-builders, shall provide
current certificate of insurance for statutory workers’ compensation and commercial general
liability insurance of one million dollars per occurrence and two million dollars general
aggregate before a contractor’s license is issued.”
Section 4. Amendment to Chapter 15.10.130, Table 402.1.1, Insulation and fenestration
Requirements, by component, is amended to read as follows, with strikeout indicated language to be deleted:
“Climate Zone 6 – Wood frame wall R-value 20 or 20+5 or 13+10”
Section 3. Codification of Amendments. The codifier of the Town's Municipal Code, Colorado
Code Publishing , is hereby authorized to make such numerical and formatting changes as may be necessary
to incorporate the provisions of this Ordinance within the Avon Municipal Code. The Town Clerk is
authorized to correct, or approve the correction by the codifier, of any typographical error in the enacted
regulations , provided that such correction shall not substantively change any provision of the regulations
adopted in this Ordinance. Such corrections may include spelling, reference , citation, enumeration, and
grammatical errors.
Section 4. Severability. If any provision of this Ordinance, or the application of such provision to
Ord 18-13 Building Code Changes
July 24, 2018 FIRST READING Page 3 of 3
any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions
or applications of this Ordinance which can be given effect without the invalid provision or application, and
to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares
that it would have passed this Ordinance and each provision thereof, even though any one of the provisions
might be declared unconstitutional or invalid. As used in this Section, the term "provision " means and
includes any part, division, subdivision, section, subsection , sentence, clause or phrase; the term
"application" means and includes an application of an ordinance or any part thereof, whether considered
or construed alone or together with another ordinance or ordinances, or part thereof, of the Town.
Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after public notice
following final passage in accordance with Section 6.4 of the Avon Home Rule Charter.
Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance
is promulgated under the general police power of the Town of Avon, that it is promulgated for the
health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health
and safety and for the protection of public convenience and welfare and energy conservation. The Town
Council further determines that the Ordinance bears a rational relation to the proper legislative object sought
to be obtained.
Section 7. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with
Chapter 1.16 of the Avon Municipal Code.
INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC
HEARING on July 24, 2018 and setting such public hearing for August 14, 2018 at the Council Chambers
of the Avon Municipal Building, located at One Lake Street, Avon, Colorado.
BY: ATTEST:
____________________________ ____________________________
Jennie Fancher, Mayor Debbie Hoppe, Town Clerk
ADOPTED ON SECOND AND FINAL READING on August 14, 2018.
BY: ATTEST:
____________________________ ____________________________
Jennie Fancher, Mayor Debbie Hoppe, Town Clerk
APPROVED AS TO FORM:
____________________________
Eric J. Heil, Town Attorney
TOWN OF AVON, COLORADO
AVON REGULAR MEETING MINUTES FOR TUESDAY, JULY 10, 2018
AVON TOWN HALL, ONE LAKE STREET
Page 1
1. A CALL TO ORDER & ROLL CALL
Mayor Fancher called the meeting to order at 5:05 p.m. A roll call was taken and Council members
present were Sarah Smith Hymes, Scott Prince, Jake Wolf, Amy Phillips and Megan Burch. Matt Gennett
was absent. Also present were Acting Town Manager Scott Wright, Town Attorney Eric Heil, Deputy
Police Chief Coby Cosper, Planning Director Matt Pielsticker, Recreation Director John Curutchet, Deputy
Town Manager Preston Neill and Town Clerk Debbie Hoppe.
2. APPROVAL OF AGENDA
Councilor Phillips asked that items 5.8.1 and 5.8.2 be removed from the Consent Agenda and discussed in
conjunction with item 5.5. Councilor Prince asked for item 5.8.7 to be removed from the Consent
Agenda. Councilor Phillips made a motion to approve the agenda with the amendments provided.
Councilor Prince seconded the motion and it passed unanimously by Council members present.
Councilor Gennett was absent.
3. MEETING PROCEDURES FOR THE MEETING OF JULY 10, 2018
4. PUBLIC COMMENT: COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA
Start time: 06:00 Part One
Michael Cacioppo commented on the West Beaver Creek Boulevard Construction Project traffic and
the plastic bag ban. Evan Ellis with Four Seasons Landscaping advocated for two changes in
landscaping practices for the Town of Avon, the use of annual plants and the use of chemical
fertilizers.
5. ACTION ITEMS
Start time: 15:38 Part One
5.1. FIRST READING ORDINANCE 18-07, ADOPTING THE 2018 AVON WORKFORCE HOUSING PLAN
(PLANNING DIRECTOR MATT PIELSTICKER)
Mayor Fancher opened the discussion to the public and no comments were made.
Councilor Gennett arrived at 5:53 p.m.
Council members provided various comments and edits to the 2018 Avon Workforce Housing
Plan.
Michael Cacioppo asked to make a point of order regarding the procedures of public
comments.
Councilor Gennett moved to table first reading of Ordinance 18-07, until staff can make
recommended changes. Councilor Wolf seconded the motion and it passed unanimously by
Council members present.
TOWN OF AVON, COLORADO
AVON REGULAR MEETING MINUTES FOR TUESDAY, JULY 10, 2018
AVON TOWN HALL, ONE LAKE STREET
Page 2
5.2. FIRST READING OF ORDINANCE 18-09, AMENDING CHAPTER 2.30 TOWN CODE OF ETHICS OF THE AVON
MUNICIPAL CODE (TOWN ATTORNEY ERIC HEIL)
Start time: 01:22:39 Part One
Mayor Fancher opened the discussion to the public and no comments were made.
Councilor Wolf moved to approve the first reading of Ordinance 18-09, amending Section
2.30.120 – Public Contracts of the Avon Municipal Code. Councilor Phillips seconded the
motion and it passed unanimously by Council members present.
5.3. FIRST READING ORDINANCE 18-10, ENACTING A NEW CHAPTER 6.08 – DECLAWING PROHIBITED TO TITLE 6
OF THE AVON MUNICIPAL CODE PROHIBITING THE DECLAWING OF CATS AND OTHER ANIMALS IN THE TOWN
OF AVON (DEPUTY TOWN MANAGER PRESTON NEILL)
Start time: 01:23:45 Part One
Mayor Fancher opened the discussion to the public and Debra Whitman a veterinarian with
Avon Pet Centre, expressed her opposition to the proposed ordinance. Rhiannon Rowe, Eagle
County Animal Services Shelter manager, is very strongly against declawing mainly because the
declawed cats received at the shelter have behavioral problems. Char Gonsenica also
commented.
Councilor Burch moved to table first reading of Ordinance 18-10, amending the Avon Municipal
Code to enact Chapter 6.08 – Declawing Prohibited. Councilor Gennett seconded the motion
and it passed on a vote of 5 to 2. Mayor Fancher and Councilor Wolf voted no. Council gave
direction to staff to procure data about declawing before bringing it back before Council.
5.4. FIRST READING ORDINANCE 18-11, AMENDING CHAPTER 5.24 OF THE AVON MUNICIPAL CODE TO AMEND
AMPLIFIED SOUND PERMIT CRITERIA (TOWN ATTORNEY ERIC HEIL)
Start time: 01:51:38 Part One
Councilor Phillips moved to approve first reading of Ordinance 18-11, amending Chapter 5.24 –
Amplified Sound Systems. Mayor Pro Tem Smith Hymes seconded the motion and it passed
unanimously by Council members present. Councilor Burch was out of the room.
5.5. FIRST READING ORDINANCE 18-12, FOR CAPITAL LEASE PURCHASE (ACTING TOWN MANAGER SCOTT WRIGHT)
Start time: 00:04 Part Two
Mayor Pro Tem Smith Hymes moved to approve Ordinance 18-12, authorizing the execution and
delivery of a state and municipal lease/purchase agreement dated August 24, 2018 between
the Town of Avon and Clayton Holdings LLC to finance the purchase and installation of
150.15kW solar panel array pursuant to Exhibit A of such agreement. Councilor Wolf seconded
the motion and it passed with a vote of 6 to 1. Councilor Prince voted no.
Council moved to item 5.8.1.
TOWN OF AVON, COLORADO
AVON REGULAR MEETING MINUTES FOR TUESDAY, JULY 10, 2018
AVON TOWN HALL, ONE LAKE STREET
Page 3
5.8.1. APPROVAL OF NOTICE OF AWARD TO SOLARSENSE OF THE INSTALLATION OF SOLAR PHOTOVOLTAIC
PANELS ON THE AVON MOBILITY CENTER (TOWN ENGINEER JUSTIN HILDRETH)
Councilor Wolf moved to approve issuance of Notice of Award for the purchase and
installation of photovoltaic panels on the Mobility Center to the low bidder, Sunsense Solar in
the amount of $258,258 as approved in the Town of Avon 2018 Capital Projects Fund.
Councilor Phillips seconded the motion and it passed unanimously by Council members
present.
Council moved to item 5.8.2.
5.8.2. APPROVAL OF POWER PURCHASE AGREEMENT BETWEEN TOWN OF AVON, A COLORADO HOME RULE
MUNICIPALITY, AND HOLY CROSS ENERGY FOR PHOTOVOLTAIC PANELS LOCATED ON THE MOBILITY
CENTER (TOWN ENGINEER JUSTIN HILDRETH)
Councilor Wolf moved to approve the Power Purchase Agreement between Town of Avon, a
Colorado Home Rule Municipality, and Holy Cross Energy for solar photovoltaic panels
located on the Avon Mobility Center. Councilor Phillips seconded the motion and it passed
unanimously by Council members present.
5.6. PUBLIC HEARING RESOLUTION 18-10, GENERAL FUND BUDGET AMENDMENT
(ACTING TOWN MANAGER SCOTT WRIGHT)
Start time: 30:03 Part Two
Mayor Fancher opened the public hearing and there were no comments made.
Councilor Wolf moved to approve Resolution 18-10, General Fund Budget Amendment.
Councilor Phillips seconded the motion and it passed unanimously by Council members
present.
5.7. DIRECTION ON NOTICE OF AWARD FOR THE 2018 WHITEWATER PARK REPAIR PROJECT
(TOWN ENGINEER JUSTIN HILDRETH)
Start time: 34:45 Part Two
Mayor Fancher opened the discussion for comments. Forest Knapp and Ben Hymes expressed
support for the Whitewater Park repair project.
Councilor Prince moved to approve an increase in the 2018 Whitewater Park Repair Project
budget in the amount of $70,000 for a total of $150,000 with the additional funding
appropriated from the Capital Projects Fund Contingency to complete the project this year.
Councilor Phillips seconded the motion and it passed unanimously by Council members
present.
5.8. CONSENT AGENDA
Start time: 54:57 Part Two
TOWN OF AVON, COLORADO
AVON REGULAR MEETING MINUTES FOR TUESDAY, JULY 10, 2018
AVON TOWN HALL, ONE LAKE STREET
Page 4
5.8.1. APPROVAL OF NOTICE OF AWARD TO SOLARSENSE OF THE INSTALLATION OF SOLAR PHOTOVOLTAIC
PANELS ON THE AVON MOBILITY CENTER (TOWN ENGINEER JUSTIN HILDRETH)
5.8.2. APPROVAL OF POWER PURCHASE AGREEMENT BETWEEN TOWN OF AVON, A COLORADO HOME RULE
MUNICIPALITY, AND HOLY CROSS ENERGY FOR PHOTOVOLTAIC PANELS LOCATED ON THE MOBILITY
CENTER (TOWN ENGINEER JUSTIN HILDRETH)
5.8.3. APPROVAL OF KEVIN PAUL LEGAL COUNSEL AGREEMENT (TOWN ATTORNEY ERIC HEIL)
5.8.4. APPROVAL OF AN INTERGOVERNMENTAL AGREEMENT BETWEEN TOWN OF AVON AND EAGLE COUNTY
FOR REMITTANCE OF VEHICLE FEES (TOWN ATTORNEY ERIC HEIL)
5.8.5. APPROVAL OF COLORADO HEALTH FOUNDATION FULL FUNDING GRANT AND AUTHORIZATION FOR
TOWN MANAGER OR TOWN ATTORNEY TO REVIEW AND EXECUTE GRANT AGREEMENT DOCUMENTS
(RECREATION DIRECTOR JOHN CURUTCHET)
5.8.6. APPROVAL OF MINUTES FROM MAY 29, 2018 SPECIAL MEETING (TOWN CLERK DEBBIE HOPPE)
Councilor Phillips moved to approve the consent agenda, excluding items 5.8.1, 5.8.2 and
5.8.7. Mayor Pro Tem Smith Hymes seconded the motion and it passed unanimously by
Council members present.
5.8.7. APPROVAL OF MINUTES FROM JUNE 26, 2018 COUNCIL MEETING (TOWN CLERK DEBBIE HOPPE)
Councilor Prince provided amendments to the minutes. Councilor Gennett moved to
approve the minutes as amended. Councilor Wolf seconded the motion and it passed
unanimously by Council members present.
6. WORK SESSION
Start time: 57:54 Part Two
6.1. REVIEW OF TOWN MANAGER RECRUITMENT SCHEDULE, TOWN MANAGER SALARY RANGE, AND DESIRED TOWN
MANAGER CHARACTERISTICS (HUMAN RESOURCES DIRECTOR LANCE RICHARDS)
Direction was provided to have the Leadership Team comments on the Town of Avon Culture
Statement shared with Council. Council commented on emailing Lance Richard their
comments related to the desired Town Manager characteristics. Mayor Fancher, Councilor
Phillips and Councilor Wolf volunteered to sit on the Steering Committee. Council preferred
the search timeline where a top candidate is identified before the swearing in of new
Councilors on November 13th.
7. WRITTEN REPORTS
7.1. GIFT REPORTING – COVERROCK MUSIC FESTIVAL, BEAVER CREEK RODEO SERIES AND VAIL VALLEY BREW FEST
VIP TICKETS (DEPUTY TOWN MANAGER PRESTON NEILL)
8. MAYOR & COUNCIL COMMENTS & MEETING UPDATES
Start time: 01:52 Part Two
Mayor Fancher thanked Town staff for their work during the Salute to the USA event. She also conveyed
her gratitude to all firefighters for their diligent work on Sunday evening so that we did not lose power.
Mayor Fancher requested that we promote Stage 2 fire restrictions on the homepage of the TOA
website.
TOWN OF AVON, COLORADO
AVON REGULAR MEETING MINUTES FOR TUESDAY, JULY 10, 2018
AVON TOWN HALL, ONE LAKE STREET
Page 5
Councilor Burch reiterated how amazing the community has come together in the Basalt area, with
the fire in Eagle County.
Councilor Gennett suggested that the Town hold a free Town Pick-Up of tree trimmings and other
vegetation removed from properties as part of fire mitigation efforts.
Councilor Phillips suggested the written reports gift report could be more accurate in describing what
Council was given. She also suggested if someone is not using the gifts, let the promoter know.
Councilor Phillips acknowledged what a great event the Vail Valley Brew Fest was.
Mayor Pro Tem Smith Hymes gave an update on streamflow’s.
Councilor Wolf updated Council on the Special Events Committee meeting and mentioned having a
off lease dog area in the park later in the afternoon. He also suggested having a Council retreat.
9. EXECUTIVE SESSION
FOR THE PURPOSE OF PERSONNEL MATTERS UNDER C.R.S. §24-6-402(2)(F) CONCERNING THE ACTING TOWN
MANAGER
Mayor Fancher moved to convene into Executive Session for discussion of a personnel matter
under C.R.S. §24-6-402(2)(f) concerning the Acting Town Manager. Councilor Gennett seconded the
motion and it passed unanimously by Council members present. The time was 9:13 p.m.
Council convened into Executive Session at 9:21 p.m.
Executive Session ended at 9:55 p.m.
Council reconvened into the Regular meeting at 9:55 p.m.
10. ADJOURNMENT
There being no further business to come before the Council, Mayor Fancher moved to adjourn the
regular meeting. The time was 9:55 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, JULY 10, 2018
AVON TOWN HALL, ONE LAKE STREET
Page 6
RESPECTFULLY SUBMITTED:
________________________________
Debbie Hoppe, Town Clerk
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: Justin Hildreth, Town Engineer
Meeting Date: July 24, 2018
Topic: Update on the Hahnewald Barn relocation and repurposing project
At the June 26, 2018 meeting, Town Council awarded the architecture and engineering services
contract to Anderson Hallas Architects, PC. Staff requested several modifications to the project
scope including additional project meetings. This has caused the contract negotiations to take a little
longer than expected and should be completed early next week.
A stakeholder group needs to be formed to assist the design team in making decisions. Staff
recommends the stakeholder group be comprised of the Planning and Zoning Commission and 2
members of the historical advisory board. The stakeholder group meetings will be scheduled during
the regularly scheduled commission meetings and are open to the public, ensuring full transparency.
The next step is for the design team to determine the feasibility of moving the barn without
disassembly, where to move the barn until a permanent location is ready, and to develop a cost
estimate. It is anticipated that a recommendation will be presented to Council at the August 28th or
September 11th Council meeting. Concurrently, the design team will evaluate 3 potential locations
and layouts in the vicinity of the old Town Hall for its permanent home. The alternatives will be
developed in conjunction with the steering committee and presented to Council for approval in
October. The approved layout will be developed further along with schematic level pricing and
presented to Council in December.
TOWN COUNCIL REPORT
To: Honorable Mayor Jennie Fancher and Avon Town Council
From: Joe Gilles, Town Master Gardener, Arborist
Meeting Date: July 24, 2018
Topic: LANDSCAPING AND WATERING PROGRAM UPDATE
ACTION BEFORE COUNCIL
Review current landscaping and watering programs and information on becoming a "Habitat Hero".
BACKGROUND
The Town of Avon Public Works Department, along with Engineering and Community Development,
are working diligently on landscape beautification, paired with water conservation. Some of our
successes can be seen out on Avon Rd, Possibility Plaza and The Mall where we have implemented low
water, native perennial plantings, complimented by small pockets of annual beds that add color and
texture. 90% of the plant material mentioned is on drip irrigation, which ensures adequate water
distribution, while minimizing runoff and evaporation. The remaining 10%, the annual beds, do require
traditional pop up irrigation because of the need to turn the soil for replanting in the spring. All future
landscaping projects are planned with water conservation as the highest priority. Our current focus is
on Nottingham Park and Avon Rd, where we are looking to mulch under and around stands of trees
to eliminate resource competition from turf grass, decrease maintenance and increase the overall
health of the trees.
We are also looking into the complete redo of the irrigation and landscaping on the East and West
hillsides of Avon Rd, between RA 4 and the rail road bridge, to become a "Habitat Hero" sanctioned
area. This area would serve as a foraging landscape for migratory birds, butterflies and other
pollinators on their cross-country journeys as well as an educational venue for the public on the
benefits of low water, native plantings. The Public Works staff is committed to keeping up with the
most current trends in the landscaping industry and in doing so has secured a bid to use organic
compost tea to fertilizer on all of our trees and plantings on Hurd Lane and Avon Rd for the 2019
season. Based on the success of this trial, we will then move to use this method to replace our current
use of salt-based fertilizer applications.
There have been a number of concerns from the public regarding the watering practices here at
Town of Avon and we do our best to stay in the watering window(4p-10a) set by the ERWSD. It
should be noted that we do not use treated water for a majority of our irrigation, we pump directly
from the lake, and therefore are exempt from the fore mentioned watering times. As a courtesy to
the ERWSD we observe all no water Mondays and strive to hit the allotted watering times set for the
public. The one exception is the Upper Field in front of the stage. This area is continually booked
with events requiring vehicle access and vendor set up. We are not allowed to water the night
before an event, during or until after the last vendor has left and when events are booked back to
back, this can leave the Upper Field without water for 4+ days. In the heat of the summer, with all of
the compaction from vehicles and foot traffic, this will lead to the death of the turf if you do not run
supplemental water. That is the practice the we currently implement to keep the Upper Filed alive
and this is the only area in town where you may observe water running outside of the approved
watering window. Additional information regarding the “Habitat Hero” can be found at the
following link: http://rockies.audubon.org/programs/habitat-hero-education
1 July 17, 2018 Planning and Zoning Commission Meeting Abstract
Planning & Zoning Commission
Meeting Abstract
Tuesday, July 17, 2018
Town staff present:
David McWilliams, Town Planner
Matt Pielsticker, Planning Director
I. Call to Order
The meeting was called to order by Chairperson Hardy at 5:00pm
II. Roll Call
All commissioners were present.
Commissioner Barnes was 20 minutes late.
III. Additions & Amendments to the Agenda
None
IV. Conflicts of Interest
Commissioner Hardy recused herself from item V. Therefore, Commissioner Golembiewski was voted
interim chair for item V.
V. Minor Development Plan/ Alternative Equivalent Compliance - PUBLIC HEARING
Files: MNR18021 & AEC18007
Legal Description: Lot 60, Block 3, Wildridge / 4380 June Point
Applicant: Brian Sipes, Sipes Architects
Summary: 301 square foot building addition, exterior modifications including sloped roofs, and
new paint color.
Public Comments: None
Action: Commissioner Barnes motioned to table the public hearing for the two applications,
pending more information on the intent or deviations from the Limit of Disturbance.
Commissioner Glaner seconded the motion and the motion carried unanimously 6-0.
VI. Final PUD (Major Amendment) Village at Avon PUD - PUBLIC HEARING
File: PUD18004
Legal Description: Lot 1, Filing 1, Village at Avon / 1000 E. Beaver Creek Blvd.
Applicant: Traer Creek-RP, LLC
Summary: Proposal to amend the PUD Guide for an approximate 13-acre property located at the
intersection of Post Blvd and East Beaver Creek Boulevard, including: 1) increased
density; 2) increase maximum allowable residential development from 50% to 100%
total floor area; decrease in minimum commercial; and 3) increase allowable building
height from 48’ to 58’; and additional related changes.
Public Comments: Additional email comments were presented; Kathleen Walsh commented on the
project.
Action: Commissioner Glaner motioned to approve the recommendation to Town Council
with the following findings and condition:
Findings:
1. The Application is in conformance with the Preliminary PUD conditions of approval.
2. Sufficient information is provided to determine that the development application
complies with the relevant review criteria.
2 July 17, 2018 Planning and Zoning Commission Meeting Abstract
3. The Application demonstrates compliance with the goals and policies of the Avon
Comprehensive Plan.
4. The Application is in conformance with Avon Development Code Section
7.16.060(e)(4), Review Criteria, as outlined in the applicant’s written response to the
review criteria.
5. Compared to the underlying development standards for Planning Area F, the
Application is not likely to result in significant adverse impacts upon other property
in the vicinity.
6. Future uses on Planning Area F will be compatible in scale with potential future uses
on other properties in the vicinity.
Condition:
1. Commercial uses that satisfy the minimum requirement will be made up of retail,
child care, personal services, and office uses only.
Commissioner Howell seconded the motion and the motion failed 3-4.
Action: Commissioner Nusbaum motioned to approve the recommendation to Town Council
with the following findings and condition:
Findings:
1. The Application is in conformance with the Preliminary PUD conditions of approval.
2. Sufficient information is provided to determine that the development application
complies with the relevant review criteria.
3. The Application demonstrates compliance with the goals and policies of the Avon
Comprehensive Plan.
4. The Application is in conformance with Avon Development Code Section
7.16.060(e)(4), Review Criteria, as outlined in the applicant’s written response to the
review criteria.
5. Compared to the underlying development standards for Planning Area F, the
Application is not likely to result in significant adverse impacts upon other property
in the vicinity.
6. Future uses on Planning Area F will be compatible in scale with potential future uses
on other properties in the vicinity.
Condition:
1. Minimum Commercial Gross Square Footage shall be a Minimum of 10% of the total
Gross Square Footage of Planning Area F.
Commissioner Barnes seconded the motion and the motion carried 4-3.
VII. Buck Creek Plaza Rezoning - PUBLIC HEARING
File: REZ18003
Action: This application was withdrawn by the applicant before the public hearing.
VIII. Consent Agenda
A – June 19, 2018 Meeting Minutes
B – Record of Decision for File #CPA18001, Workforce Housing Plan Recommendation
Action: Commissioner Barnes motioned to approve the consent agenda. Commissioner
Howell seconded the motion and it carried unanimously 7-0.
IX. Sign Code Work Session
3 July 17, 2018 Planning and Zoning Commission Meeting Abstract
Description: A working draft was reviewed, along with questions from staff as to the direction
PZC desires for the Code.
Action: Staff worked with the PZC to garner direction for the code changes.
X. Staff Updates
• Staff approvals
• Discussion of the July 24, 2018 PZC / Town Council Work session.
XI. Adjourn
The meeting was adjourned at 8:40pm.
FISCAL YEAR 2018
FINANCIAL REPORT
July 24, 2018
______________________________________________________________________________________
1. Financial Report Memorandum
2. Sales Tax Report – May
3. Accommodations Tax Report – May
4. Real Estate Transfer Tax Report – June
5. Recreation Center Admissions – June
6. General Fund Year-To-Date Expenditures – June
7. Fleet Maintenance Fund Year-To-Date Expenditures – June
8. Transit Fund Year-To-Date Expenditures – June
TOWN COUNCIL REPORT
To: Honorable Mayor Jennie Fancher and Avon Town Council
From: Martha Anderson, Senior Accountant
Meeting Date: July 24, 2018
Re: Fiscal Year 2018 Financial Report – June 2018
SUMMARY
Revenues
SALES TAX
Sales tax revenue for May totaled $418,557, a 6.05% increase over the previous year and a 4.83%
increase over the annual budget.
Sales tax collections increased 61.91% for liquor stores, 15.40% for home/garden, 14.19% or
restaurants/bars, 11.70% for accommodations, 7.29% for grocery, specialty, and health, and
decreased 40.5% for service related, 26.02% for sporting goods retail/rental, 2.27% for other,
1.49% for miscellaneous retail compared to May 2017.
ACCOMMODATIONS TAX
Accommodations tax revenue for May totaled $42,618, a 6.65% increase over the previous year
and a 21.22% increase over the annual budget.
Accommodations tax collections increased 34.59% for time shares, 30.99% for vacation rentals
and decreased 4.34% for hotels compared to May 2017.
REAL ESTATE TRANSFER TAX
Real estate transfer tax collections for June totaled $343,141, a decrease of 51.22% over the
previous year and a 10.05% increase over the annual budget.
Year‐to‐date RETT collections are down 13.69% over the previous year and up 47.18% over the
annual budget.
RECREATION CENTER ADMISSIONS
June’s admission fees totaled $62,135, a 2.09% decrease over the previous year and a 0.60%
decrease over the annual budget.
Year‐to‐date admission collections are down 4.93% over the previous year and down 3.93% over
the annual budget.
Expenditures
GENERAL FUND
General fund expenditures through June totaled 56.58% of the 2018 annual budget. These
expenditures include insurance premiums, computer services, events, community grants,
equipment replacement, contract services, janitorial and legal services.
FLEET MAINTENANCE
Fleet expenditures through June are at 52.01% of the total budget. These costs include
expenditures of stock parts, fleet maintenance, debt service interest and insurance premiums.
TRANSIT
Transit funds are 58.44% expended as of June compared to the annual budget. These
expenditures include costs of diesel, fleet maintenance, equipment replacement, capital lease
payments and insurance premiums.
TOWN OF AVONSALES TAX 2018 Actual vs. Budget Budget YTD Collections Budget % of change2013 2014 2015 2016 2017 2018 2018 Variance from 2017January 677,943.78$ 638,863.27$ 765,195.68$ 743,689.78$ 792,562.03$ 800,994$ 825,816.08$ 24,822.19$ 4.20%February 636,702.27 673,722.03 788,999.06 774,754.00 798,923.33 813,135 785,412.03 (27,723.47)$ -1.69%March 720,267.31 793,301.96 875,499.53 945,795.71 918,657.55 941,627 1,016,314.70 74,687.98$ 10.63%April 307,407.13 381,839.56 403,560.42 438,198.18 425,727.85 433,173 394,986.15 (38,187.16)$ -7.22%May 309,938.72 340,332.28 353,840.11 404,872.55 394,689.30 399,289 418,557.18 19,267.69$ 6.05%June 490,329.18 538,517.31 570,424.51 693,675.00 650,794.65 651,673 July 537,479.66 570,959.86 601,516.82 690,342.23 682,024.81 682,352 August 504,332.25 547,085.80 572,647.57 593,398.26 618,515.44 627,817 September 475,362.88 546,016.59 595,235.68 667,949.51 690,883.92 658,692 October 356,925.96 417,921.46 423,701.53 451,303.71 458,645.68 466,770 November 362,460.94 397,935.36 438,315.55 445,336.04 435,975.05 460,467 December 981,917.79 1,221,263.98 1,159,160.45 1,247,832.82 1,183,666.21 1,282,616 Total 6,361,067.87$ 7,067,759.46$ 7,548,096.91$ 8,097,147.79$ 8,051,065.82$ 8,218,606$ 3,441,086.14$ 52,867.24$ 3.32%Actual Collections$0$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,0002014 2015 2016 2017 2018YearSales Tax Collections for May
TOWN OF AVONSALES TAX 2018 Actual vs. Budget $‐ $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,0002014 2015 2016 2017 2018YTD Sales Tax Comparison $‐ $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000Sales Tax Monthly Comparison 2016-2018 201620172018
TOWN OF AVONACCOMMODATIONS TAX 2018 Actual vs. Budget Budget YTD Collections Budget % change2013 2014 2015 2016 2017 2018 2018 Variance 2017January 108,508.43$ 129,851.78$ 164,361.04$ 168,424.63$ 190,207.82$ 176,321$ 181,588.99$ 5,268.45$ -4.53%February 137,503.61 150,317.06 175,056.31 185,370.53 194,804.88 195,241 186,147.24 (9,093.75)$ -4.44%March 153,208.80 168,597.39 183,650.29 217,387.54 201,008.55 213,953 206,783.36 (7,170.00)$ 2.87%April 26,494.49 31,626.02 34,825.13 60,916.55 38,340.02 44,512 33,275.27 (11,236.49)$ -13.21%May 24,527.17 21,961.97 28,002.56 37,357.48 39,961.98 35,158 42,618.10 7,460.43$ 6.65%June 66,578.91 54,232.23 53,397.46 73,591.08 83,723.31 76,777 July 73,008.92 81,083.01 86,301.22 107,595.18 119,300.76 108,219 August 67,688.07 71,044.33 75,107.71 87,674.05 100,628.23 93,131 September 44,661.37 50,840.16 60,417.74 68,139.11 81,837.60 70,842 October 27,154.53 34,977.59 38,706.72 45,738.23 48,223.10 45,113 November 28,171.04 32,064.02 34,328.47 37,570.50 46,397.08 41,346 December 131,361.43 168,944.85 198,421.26 200,114.56 189,505.28 205,731 Total 888,866.77$ 995,540.41$ 1,132,575.91$ 1,289,879.44$ 1,333,938.61$ 1,306,343$ 650,412.96$ (14,771.36)$ -2.09%Actual Collections $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,0002014 2015 2016 2017 2018Accommodations Tax Collections for May
Town of AvonReal Estate Transfer Tax 2018 Actual vs. BudgetBudget YTD Collections $ Change % of Change2013 2014 2015 2016 2017 2018 2018 2017 2017January 22,535.00$ 85,126.74$ 48,640.40$ 64,422.00$ 107,390.00$ 63,334$ 264,063.20$ 156,673.20$ 145.89%February 55,872.69 562,219.70 85,479.08 200,850.86 270,815.26 226,849 269,578.51 (1,236.75)$ -0.46%March 125,927.64 50,375.06 168,744.22 265,061.65 254,737.53 166,936 344,556.74 89,819.21$ 35.26%April 144,437.80 197,656.36 125,266.30 159,046.06 249,938.93 169,156 122,312.21 (127,626.72)$ -51.06%May 121,784.12 183,745.60 237,971.08 184,987.10 377,490.82 213,481 351,236.93 (26,253.89)$ -6.95%June 90,309.74 220,009.15 294,434.84 307,127.24 703,419.85 311,792 343,140.71 (360,279.14)$ -51.22%July 386,434.78 141,051.52 396,838.68 259,977.94 219,208.74 270,912 August 97,579.70 154,032.32 152,380.93 186,483.40 592,467.49 228,337 September 157,010.67 267,886.92 291,223.61 321,957.68 423,013.80 282,026 October 169,839.80 178,044.24 172,855.22 641,688.59 497,642.58 320,434 November 112,491.82 122,582.66 169,328.38 315,109.37 425,402.80 220,996 December 83,382.60 1,598,062.92 225,862.90 588,514.66 227,918.50 525,748 Total 1,567,606.36$ 3,760,793.19$ 2,369,025.64$ 3,495,226.55$ 4,349,446.30$ 3,000,000$ 1,694,888.30$ (268,904.09)$ -13.69%Budget 3,000,000.00 Variance, Favorable (Unfavorable) (1,305,111.70)$ Actual Collections $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.002014 2015 2016 2017 2018YTD Real Estate Transfer Tax Collections
TOWN OF AVONRECREATION CENTER ADMISSION FEES 2018 Actual vs. Budget Budget YTD Collections Budget % of change2013 2014 2015 2016 2017 2018 2018 Variance from 2017January 70,040$ 62,607$ 64,723$ 74,674$ 74,674$ 77,079$ 88,582.09$ 11,502.85$ 18.62%February 68,578 63,838 68,506 86,342 93,366 84,618 75,952.60 (8,665.61)$ -18.65%March 72,616 77,902 81,664 76,023 84,086 87,211 79,071.20 (8,139.37)$ -5.96%April 64,370 61,760 55,452 67,398 62,435 69,231 61,817.56 (7,413.41)$ -0.99%May 35,064 43,119 50,067 54,337 61,442 54,250 50,252.60 (3,997.68)$ -18.21%June 46,194 55,052 58,431 58,044 63,459 62,509 62,135.02 (374.38)$ -2.09%July 71,491 61,472 66,400 65,874 82,540 77,315 August 57,329 63,233 66,389 76,558 66,543 73,374 September 43,829 36,846 44,719 49,018 48,279 49,506 October 48,803 75,818 61,167 51,833 59,234 65,994 November 93,822 29,570 71,384 72,114 97,193 80,940 December 69,258 77,672 112,201 169,093 169,913 132,972 Total 741,394$ 708,889$ 801,102$ 901,307$ 963,163$ 915,000$ 417,811.07$ (17,087.61)$ -4.93%Actual Collections $50,000 $52,000 $54,000 $56,000 $58,000 $60,000 $62,000 $64,000 $66,0002014 2015 2016 2017 2018Recreation Center Admissions - June
Dept./Div. 2018 Encumbrances Year To Date Available
Number Description Budget Outstanding Expenditures Balance YTD/Budget
General Government:
111 Mayor and Town Council 226,760$ 256$ 124,693$ 101,812$ 55.10%
112 Boards and Commissions 16,049 - 8,384 7,665 52.24%
113 Town Attorney 132,000 122,091 27,478 (17,570) 113.31%
115 Town Clerk 117,913 4,678 51,623 61,612 47.75%
121 Municipal Court 148,899 13,948 64,186 70,765 52.47%
131 Town Manager 375,561 - 264,042 111,519 70.31%
133 Community Relations 195,666 12,662 78,310 104,694 46.49%
Total General Government 1,212,848 153,635 618,717 440,496 63.68%
Human Resources Department:
132 Human Resources 503,153 25,072 185,784 292,297 41.91%
Finance & IT Department:
141 Finance 1,021,522 41,149 410,993 569,381 44.26%
143 Information Systems 434,262 32,901 231,398 169,963 60.86%
149 Nondepartmental 497,254 102,594 321,005 73,654 85.19%
Total Finance & IT 1,953,038 176,644 963,396 812,998 58.37%
Total General Gov't Departments 3,669,039 355,350 1,767,897 1,545,792 57.87%
Community Development:
212 Planning 281,940 12,881 143,300 125,759 55.40%
213 Building Inspection 151,049 1,835 72,143 77,071 48.98%
215 Town Produced Events 243,760 7,123 127,414 109,223 55.19%
216 Signature Event Seed Funding 400,000 31,031 243,241 125,728 68.57%
217 Community Grants 161,000 - 154,000 7,000 95.65%
218 Salute to the USA 97,000 16,055 35,423 45,523 53.07%
Total Community Development 1,334,749 68,925 775,521 490,303 63.27%
Police Department:
311 Administration 775,392 22,484 333,952 418,956 45.97%
312 Patrol 2,570,770 92,926 1,463,776 1,014,068 60.55%
313 Investigations 285,767 1,050 146,074 138,643 51.48%
Total Police 3,631,929 116,460 1,943,802 1,571,667 56.73%
Public Works:
412 Engineering 283,636 1,180 115,715 166,741 41.21%
413 Roads and Bridges 2,362,984 125,045 1,137,947 1,099,992 53.45%
415 Parks 671,517 113,991 289,296 268,231 60.06%
418 Buildings & Facilities 1,194,952 61,649 599,039 534,264 55.29%
Total Public Works 4,513,089 301,864 2,141,997 2,069,228 54.15%
Recreation Department:
514 Administration 237,063 5,435 128,688 102,940 56.58%
515 Adult Programs 61,906 250 32,090 29,566 52.24%
516 Aquatics 542,219 14,451 287,397 240,371 55.67%
518 Fitness 144,227 - 110,843 33,384 76.85%
519 Guest Services 325,124 855 162,618 161,651 50.28%
521 Youth Programs 149,536 1,734 70,574 77,228 48.35%
523 Community Swim Program 57,319 1,099 9,790 46,430 19.00%
Total Recreation 1,517,394 23,824 801,999 691,570 54.42%
TOTAL OPERATING EXPENDITURES 14,666,200$ 866,424$ 7,431,216$ 6,368,560 56.58%
Department Expenditure Summaries
General FundJune 2018 Expenditures to Date
Dept./Div. 2018 Encumbrances Year To Date Available
Number Description Budget Outstanding Expenditures Balance YTD/Budget
EXPENDITURES
Public Works:
434 Fleet Maintenance 1,693,973$ 76,703$ 804,284$ 812,985$ 52.01%
Total Operating Expenditures 1,693,973 76,703 804,284 812,985 52.01%
TOTAL EXPENDITURES 1,693,973$ 76,703$ 804,284$ 812,985$ 52.01%
Expenditure Summary
Fleet Maintenance Enterprise Fund
June 2018 Expenditures to Date
Dept./Div. 2018 Encumbrances Year To Date Available
Number Description Budget Outstanding Expenditures Balance YTD/Budget
EXPENDITURES
431 Transit Administration 271,617$ 20,610$ 131,345$ 119,663$ 55.94%
432 Transit Operations 1,258,194 6,682 745,209 506,303 59.76%
436 Wash Bay 157,973 235 82,203 75,535 52.19%
Total Operating Expenditures 1,687,784 27,527 958,758 701,500 58.44%
TOTAL EXPENDITURES 1,687,784$ 27,527$ 958,758$ 701,500$ 58.44%
Expenditure Summary
Transit Enterprise Fund
June 2018 Expenditures to Date