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TC Packet 02-12-2019    TOWN OF AVON , COLORADO  TOWN OF AVON MEETINGS FOR TUESDAY, FEBRUARY 12, 2019  AVON TOWN HALL, 100 MIKAELA WAY    AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM  AVON URBAN RENEWAL MEETING BEGINS AT 5:05 PM  AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:10 PM  _______________________________________________________________________________  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 ACTING TOWN CLERK BRENDA TORRES AT 970‐748‐4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS.  1    AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM (SEE SEPARATE AGENDA PAGE 3)  AVON URBAN RENEWAL AUTHORITY MEETING BEGINS AT 5:05 PM (SEE SEPARATE AGENDA PAGE 4)  AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:10 PM (SEE AGENDA BELOW)    1. CALL TO ORDER AND ROLL CALL 5:10    2. APPROVAL OF AGENDA    3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA 5:10  * 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. ACTION ITEM  4.1. REVIEW AND ACTION ON HAHNEWALD BARN OPTIONS (PLANNING DIRECTOR MATT PIELSTICKER) 5:15   STAFF PRESENTATION (10 MINUTES)   COUNCIL QUESTIONS (10 MINUTES)   PUBLIC COMMENT (3 MINUTES PER SPEAKER)   COUNCIL DISCUSSION AND ACTION (20 MINUTES)    5. WORK SESSION  5.1. JOINT WORK SESSION WITH THE AD HOC SPECIAL EVENTS COMMITTEE (60 MINUTES) 6:15    6. ACTION ITEMS  6.1. PUBLIC HEARING SECOND READING OF ORDINANCE 18‐20, A ENACTING CHAPTER 2.40 – EVENTS COMMISSION OF  TITLE 2 OF THE AVON MUNICIPAL CODE (ACTING TOWN MANAGER PRESTON NEILL) (5 MINUTES) 7:15  6.2. RESOLUTION 19‐05 APPROVING A CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE   (ACTING TOWN MANAGER PRESTON NEILL) (15 MINUTES) 7:20  6.3. FIRST READING ORDINANCE 19‐01 AMENDING THE AVON MUNICIPAL CODE TO AUTHORIZE FEE WAIVERS AND TAX  EXEMPTIONS FOR AFFORDABLE HOUSING PROJECTS (TOWN ATTORNEY ERIC HEIL) (15 MINUTES) 7:35  6.4. ACTION ON NOTICE OF AWARD FOR AVON PERFORMANCE PAVILION DOOR SYSTEM AND STAGE REPAIR   (TOWN ENGINEER JUSTIN HILDRETH) (20 MINUTES) 7:50  6.5. NOTICE OF AWARD UPRR WALKWAY AT GRADE CROSSING PROJECT (TOWN ENGINEER JUSTIN HILDRETH)   (15 MINUTES) 8:10  6.6. REVIEW AND DIRECTION ON AUDIO VISUAL SYSTEM IMPROVEMENTS FOR TOWN COUNCIL CHAMBERS  (TOWN ENGINEER JUSTIN HILDRETH) (15 MINUTES) 8:25        TOWN OF AVON, COLORADO  TOWN OF AVON MEETINGS FOR TUESDAY, FEBRUARY 12, 2019  AVON TOWN HALL, 100 MIKAELA WAY    AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM  AVON URBAN RENEWAL MEETING BEGINS AT 5:05 PM  AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:10 PM  _______________________________________________________________________________  MEETING AGENDAS & PACKETS ARE FOUND AT:  HTTP://WWW.AVON.ORG  AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY    IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING,   CALL ACTING TOWN CLERK BRENDA TORRES AT 970‐748‐4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS.  2    6.7. CONSENT AGENDA 8:40  6.7.1. APPROVAL OF 2018 AUDIT ENGAGEMENT LETTER (ASSISTANT TOWN MANAGER SCOTT WRIGHT)  6.7.2. APPROVAL OF WAIVER OF CONFLICT WITH KISSINGER & FELLMAN, P.C. (TOWN ATTORNEY ERIC HEIL)  6.7.3. APPROVAL OF RESOLUTION 19‐06 DESIGNATING THE LOCATIONS FOR POSTING THE NOTICES OF PUBLIC  MEETINGS (ACTING TOWN MANAGER PRESTON NEILL)  6.7.4. APPROVAL OF MINUTES FROM JANUARY 22, 2019 REGULAR COUNCIL MEETING   (ACTING TOWN CLERK BRENDA TORRES)   6.7.5. APPROVAL OF MINUTES FORM JANUARY 30, 2019 COUNCIL RETREAT   (ACTING TOWN MANAGER PRESTON NEILL)    7. WRITTEN REPORTS  7.1. WEST BEAVER CREEK BOULEVARD CONTRUCTION IMPACT TO BUSINESSES   (ASSISTANT TOWN MANAGER SCOTT WRIGHT)  7.2. COMMUNITY DEVELOPMENT 2018 YEAR END REPORT (PLANNING DIRECTOR MATT PIELSTICKER)  7.3. UPDATE ON TOWN BIKE SHARE PROGRAM (MOBILITY DIRECTOR EVA WILSON)  7.4. UPPER EAGLE REGIONAL WATER AUTHORITY JANUARY 24, 2019 MEETING SUMMARY (MAYOR SMITH HYMES)  7.5. ABSTRACT FROM FEBRUARY 5, 2019 PLANNING AND ZONING COMMISSION MEETING   (PLANNING DIRECTOR MATT PIELSTICKER)    8. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES) 8:45    9. ADJOURNMENT 9:00    _________________________________________________________________________________________________________________________________________________________________________________________________________    *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, COLORADO  TOWN OF AVON MEETINGS FOR TUESDAY, FEBRUARY 12, 2019  AVON LIQUOR AUTHORITY MEETING BEGINS AT 5:00 PM  AVON TOWN HALL, 100 MIKAELA WAY  _______________________________________________________________________________  MEETING AGENDAS & PACKETS ARE FOUND AT:  HTTP://WWW.AVON.ORG  AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY    IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING,   CALL ACTING TOWN CLERK BRENDA TORRES AT 970‐748‐4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS.  3      1. CALL TO ORDER AND ROLL CALL    2. APPROVAL OF AGENDA     3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA    4. RENEWAL OF LIQUOR LICENSES  4.1. APPLICANT: MILLERS BOTTLE SHOP LLC D/B/A JOE’S LIQUORS       LOCATION: 1060 W. BEAVER CREEK BLVD. #1B     TYPE:  LIQUOR STORE LICENSE     MANAGER:  BILL HOLM    5. APPROVAL OF THE MINUTES FROM JANUARY 22, 2019 MEETING     6. WRITTEN REPORT  6.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (LIQUOR LICENSING AUTHORITY SECRETARY BRENDA TORRES)    7. ADJOURNMENT                                         TOWN OF AVON, COLORADO  TOWN OF AVON MEETINGS FOR TUESDAY, FEBRUARY 12, 2019  AVON URBAN RENEWAL AUTHORITY MEETING BEGINS AT 5:05 PM  AVON TOWN HALL, 100 MIKAELA WAY  _______________________________________________________________________________  MEETING AGENDAS & PACKETS ARE FOUND AT:  HTTP://WWW.AVON.ORG  AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY    IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING,   CALL ACTING TOWN CLERK BRENDA TORRES AT 970‐748‐4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS.  4      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. ACTION ITEMS  4.1. RESOLUTION 19‐01, DESIGNATING LOCATIONS FOR POSTING THE NOTICES OF PUBLIC MEETINGS   4.2. APPROVAL OF DECEMBER 11, 2018 URA MEETING MINUTES    5. ADJOURNMENT                            AVON LIQUOR LICENSING AUTHORITY REPORT  To: Avon Liquor Licensing Authority (“Authority”) From: Brenda Torres, Liquor Licensing Authority Secretary Meeting Date: February 12, 2019 Topic: Renewal Application – Joe’s Liquors ACTION BEFORE THE AUTHORITY: A Liquor License Renewal Application (“Renewal Application”) is presented to the Authority as described below. This Renewal Application is presented to the Authority because there was a violation in the last year, §5.08.140.(f), Avon Municipal Code. Proper state and local fees accompanied the Renewal Application. The owner/manager has been invited to attend the Liquor Licensing Authority meeting. Application: Liquor License Renewal Applicant: Millers Bottle Shop LLC d/b/a Joe’s Liquors Location: 1060 W. Beaver Creek Blvd. #1B, Avon, CO Type: Liquor Store License Manager: Bill Holm SAMPLE MOTION: “I move to approve the Renewal Application for Millers Bottle Shop LLC d/b/a Joe’s Liquors.” Alternatively, the Authority can move to continue the public hearing for additional information, testimony and/or evidence or may move to deny the Renewal Application if it finds there is “good cause” for denial (see Hearing Procedures below). BACKGROUND: The Acting Town Clerk, Special Counsel Pierce-Durance and Police Department have reviewed the Application submitted and referenced above and the application is complete and the materials are in order. The Police Report, which is on file with the Acting Town Clerk, indicates one violation of the Colorado Liquor Code in the past year which is described as follows: Miller Bottle Shop, LLC d/b/a Joe’s Liquors: Joe’s Liquors has been the subject of an investigation conducted by the Colorado Department of Revenue Liquor Enforcement Division. Agents of the Division allege violations of the Colorado Liquor Code, §12-47-901(1)(a.5)(I), C.R.S (underage serving). On February 16, 2018, this Licensee, through its employee/agent Tyler Abbett, permitted the selling, serving, giving, or procuring of an alcoholic beverage (Mike’s Hard Lemonade, brand malt liquor) to a nineteen-year-old Liquor Enforcement Division underage purchaser. Employee Tyler Abbett failed to verify that the consumer was at least twenty-one years of age by requiring the consumer to present a valid identification and who appeared to be under the age of fifty. INCIDENTS OVER LAST FIVE YEARS: There are no other violations over the last five years. PENALTIES FOR VIOLATIONS: The Authority previously adopted a policy that it defers to the Colorado Liquor Enforcement Division on imposing penalties for liquor license violations that arise from State enforcement. The State follows State Liquor Code Regulation 47-604 when setting the terms and conditions of state Stipulated Order for suspension and fines in lieu of suspensions. Therefore, the licensee will be subject to a fine and/or suspension as determined by the State Liquor Enforcement Division for the violation. HEARING PROCEDURES AND REVIEW AUTHORITY: The Authority’s action is limited to either approval or denial of the Renewal Application and the Authority may not place conditions on an approval of the renewal application. “The [Authority] may refuse to renew any license for good cause, subject to judicial review.” CRS §12-47-302(1). “In a renewal hearing there shall be no presumption or burden of proof, unless and until such time as some unfavorable testimony or exhibit is received, at which point the burden shall become that of the licensee to demonstrate by a preponderance of the evidence that the license should be renewed.” 5.08.070(b), Avon Municipal Code. ATTACHMENT: State of Colorado Renewal Application Form for Joe’s Liquor   TOWN OF AVON, COLORADO  AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, JANUARY 22, 2019  AVON TOWN HALL, 100 MIKAELA WAY    Page 1  1. CALL TO ORDER AND ROLL CALL  Chairwoman Smith Hymes called the meeting to order at 5:02 p.m.  A roll call was taken and Board  members present were Amy Phillips, Scott Prince, Jennie Fancher, Chico Thuon, Tamra N. Underwood, and   Jake Wolf. Also present were Town Attorney Eric Heil, Police Chief Greg Daly, Planning Director Matt  Pielsticker, Human Resources Director Lance Richards, Recreation Director John Curutchet, Acting Town  Manager Preston Neill and Secretary Brenda Torres.  2. APPROVAL OF AGENDA   There were no changes to the agenda.     3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON TOPICS NOT ON THE AGENDA     No public comments were made.    4. PUBLIC HEARING SPECIAL EVENTS PERMIT  4.1. Applicant Name:  Town of Avon  Event Name:  July in January  Event Dates:  January 25, 2019; 5:00 pm until 9:00 pm  Location:  Performance Pavilion/Nottingham Park  Event Manager:  Louise Duncan  Permit Type: Malt, Vinous & Spirituous Liquor  The application was presented with no concerns. Louise Duncan spoke regarding the upcoming special  event.  Chairwoman Smith Hymes opened the public hearing and no comments were made.       Board member Underwood moved to approve the special event permit application for Town of Avon.  Board member Prince seconded the motion and it passed unanimously by those present.      5. MINUTES FROM NOVEMBER 13, 2018  Board member Prince moved to approve the minutes from November 13, 2019, Liquor Authority meeting.  Board member Fancher seconded the motion and it passed with a vote of 5. Board members Underwood  and Thuon abstained from the vote.      6. ADJOURNMENT   There being no further business to come before the Board, Chairwoman Smith Hymes moved to adjourn  the liquor meeting. Board member Underwood seconded the motion and it passed unanimously by Board  members present.  The time was 5:09 p.m.                      TOWN OF AVON, COLORADO  AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, JANUARY 22, 2019  AVON TOWN HALL, 100 MIKAELA WAY    Page 2  RESPECTFULLY SUBMITTED:                          ____________________________________          Brenda Torres, Secretary    APPROVED:  Sarah Smith Hymes ___________________________________    Amy Phillips  ___________________________________    Jake Wolf  ________________________________    Chico Thuon  ________________________________    Jennie Fancher   ________________________________    Scott Prince  ________________________________    Tamra Underwood ________________________________        AVON LIQUOR LICENSING AUTHORITY   WRITTEN REPORT  To:   Avon Liquor Licensing Authority  From:    Brenda Torres, Liquor Licensing Authority Secretary  Date:    February 12, 2019  Topic:    REPORT ON RECENT ADMINISTRATIVE APPROVALS    SUMMARY:  The Town’s local liquor licensing regulations allow for administrative review and approval of routine liquor  license applications, including: (1) Renewals, (2) Modification of Ownership, (3) Modification of Managers,  and (4) Special Event Permits for events already approved by the Town Council. Requirements for  administrative approval include that the application is complete, there is no criminal activity on the  background and there are no liquor code violations during the last year. Renewals and Special Event  Permits require notice to be posted for seven days and require the Town Clerk to accept comments  and/or requests for a public hearing before the Avon Town Council. In all cases, the Town Clerk has the  discretion to refer the application to the Avon Town Council. The Town Clerk is required to report  administrative approvals, which is the reason for this written report. Dating back to December 4, 2018,  the Town has received four Liquor License Renewal Applications that have met all the requirements for  administrative review and approval and were ultimately approved by the Town Clerk. They are as follows:    Applicant: Fancy Pancy LLC d/b/a Fancy Pancy   Location:  51 Beaver Creek Place Unit #2  Type:     Beer & Wine (city)  Manager:     Frankie Sheridan    Applicant: Fiesta Jalisco #3 LLC d/b/a Fiesta Jalisco   Location:  240 Chapel Place Unit #B‐12  Type:     Hotel & Restaurant  Manager:     Jose Rodriguez    Applicant: Bob’s Place LLC d/b/a Bob’s Place   Location:  100 W Beaver Creek Blvd  Type:     Hotel & Restaurant   Manager:     Robert Doyle    Applicant: Southside Benderz LLC d/b/a Southside Benderz  Location:  182 Avon Road Suite #208  Type:     Hotel & Restaurant  Manager:     Noah Bender              AVON URBAN RENEWAL AUTHORITY REPORT    To: Honorable Chairperson Sarah Smith Hymes and URA Commissioners  From:  Preston Neill, Acting Town Manager  Date: February 12, 2019  Topic: RESOLUTION 19‐01, DESIGNATING LOCATIONS FOR POSTING THE NOTICES OF PUBLIC MEETINGS    ACTION BEFORE THE COMMISSIONERS:  C.R.S. Section 24‐6‐402(2)(c) requires that the Authority’s posting places must be designated at the first  regular meeting of the calendar year as part of Colorado’s “Open Meetings Law”. Resolution 19‐01 is  presented to satisfy this requirement whereby it identifies four public locations used for posting notices  of the Avon Urban Renewal Authority’s public meetings in addition to the Town of Avon’s website.    PROPOSED MOTION:  “I move to approve Resolution 19‐01, Designating Locations for Posting the Notices of Public Meetings.”    ATTACHMENT:  Resolution 19‐01  AVON URBAN RENEWAL AUTHORITY RESOLUTION 19-01 A RESOLUTION TO DESIGNATE A PUBLIC PLACE WITHIN THE BOUNDARIES OF THE AUTHORITY WHERE NOTICES OF MEETINGS OF THE AUTHORITY’S BOARD OF COMMISSIONERS SHALL BE POSTED WHEREAS, the Avon Urban Renewal Authority (the “Authority”) is a duly organized body corporate and politic under and by virtue of the laws of the State of Colorado including the Urban Renewal Law, constituting Part 1 of Article 25 of Title 31, Colorado Revised Statutes (“C.R.S.”); and WHEREAS, the Board of Commissioners of the Authority (the “Board”) is required by Section 24-6-402(2)(c), C.R.S., to designate the public place or places for posting notice of its meetings annually at the Board’s first regular meeting of each calendar year; and NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE AVON URBAN RENEWAL AUTHORITY: Notice of meetings of the Board required pursuant to Section 24-6-401, et seq., C.R.S. shall be posted within the boundaries of the Authority at least 24 hours prior to each meeting at the following locations: Avon Town Hall, One Lake Street Avon Recreation Center, 90 Lake Street Avon Public Library, 200 Benchmark Road Avon Elementary School, 850 W Beaver Creek Boulevard Town of Avon Website - www.avon.org ADOPTED this 12th day of February 2019. AVON URBAN RENEWAL AUTHORITY (SEAL) Sarah Smith Hymes, Chairman ATTEST: Scott Wright, Secretary CERTIFIED BY: Brenda Torres, Acting Authority Clerk   TOWN OF AVON, COLORADO  MINUTES FOR THE URBAN RENEWAL AUTHORITY MEETING FOR DECEMBER 11, 2018  AVON TOWN HALL, 100 MIKAELA WAY  1. CALL TO ORDER & ROLL CALL   Chairwoman Fancher called the meeting to order at 5:30 p.m.  A roll call was taken, and Authority members  present were Sarah Smith Hymes, Scott Prince, Jake Wolf, Amy Phillips and Megan Burch.  Matt Gennett was  absent.  Also present were Treasurer Scott Wright, Town Attorney Eric Heil, Police Chief Greg Daly, Planning  Director Matt Pielsticker, Public Works Director Gary Padilla, Deputy Town Manager Preston Neill and  Authority Deputy Clerk Brenda Torres.      2. APPROVAL OF AGENDA   There were no changes to the agenda.    3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA     No comments were made.    4. ACTION ITEMS   Start time:    4.1. PUBLIC HEARING RESOLUTION 18‐03, AMENDING THE 2018 AVON URBAN RENEWAL AUTHORITY BUDGET   (TREASURER SCOTT WRIGHT)  Chairwoman Fancher opened the public hearing and no comments were made. Board member Prince  moved to approve Resolution 18‐03 and 18‐04 to adopt the 2019 annual budget and amend the 2018  annual budget for the Avon Urban Renewal Authority. Board member Phillips seconded the motion and  the motion passed unanimously by Board members present. Board member Gennett was absent.    4.2. PUBLIC HEARING RESOLUTION 18‐04, ADOPTING THE 2019 AVON URBAN RENEWAL AUTHORITY BUDGET   (TREASURER SCOTT WRIGHT)  Board member Burch moved to approve Resolution 18‐04 adopting the 2019 Avon Urban Renewal  Authority budget. Board member Phillips seconded the motion and the motion carried unanimously by  Council members present. Board member Gennett was absent.    4.3. APPROVAL OF OCTOBER 9, 2018 URA MEETING MINUTES (AUTHORITY CLERK DEBBIE HOPPE)  Board member Burch moved to approve the minutes from the October 9, 2018 URA meeting. Board  member Phillips seconded the motion and the motion passed unanimously by Board members present.  Board member Gennett was absent.         5. ADJOURNMENT  There being no further business to come before the Authority, Chairwoman Fancher moved to adjourn the  meeting. Board member Wolf seconded the motion and it passed unanimously by those present.  Board  member Gennett was absent.  The time was 5:34 p.m.                                 TOWN OF AVON, COLORADO  MINUTES FOR THE URBAN RENEWAL AUTHORITY MEETING FOR DECEMBER 11, 2018  AVON TOWN HALL, 100 MIKAELA WAY          RESPECTFULLY SUBMITTED:          __________________________________________        Brenda Torres, Authority Deputy Clerk    APPROVED:  Jennie Fancher                  ________________________________    Sarah Smith Hymes  ________________________________    Jake Wolf    ________________________________    Megan Burch    ________________________________    Matt Gennett      ________________________________    Scott Prince                  ________________________________    Amy Phillips   ______________________________       Page 1 of 5     TOWN COUNCIL REPORT  To:   Honorable Mayor Sarah Smith Hymes and Town Council  From:  Preston Neill, Acting Town Manager    Scott Wright, Asst. Town Manager / Finance Director    Matt Pielsticker, Planning Director      Eric Heil, Town Attorney   Meeting Date: February 12, 2019  Topic:   Review and Action on Hahnewald Barn        ACTION BEFORE COUNCIL:       Council will be asked to act on the Hahnewald Barn project by motion and vote.          AGENDA:   Staff Comments and Review of Packet Materials   Council Questions   Public Comments*   Council Discussion, Motion and Vote    *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.    SUMMARY:  Several alternatives have been discussed over the course of the Hahnewald Barn design process.        At the end of this report you will find the action alternatives that were outlined at the January 22, 2019  meeting.  The balance of this report includes information in response to the requests related to Town  finances and other requests.     CURRENTLY FUNDED TOWN‐OWNED PROPERTIES PROJECTS:  Recreation Center Weight Room Expansion   Description: This project will expand the weight room, currently located with the aerobics room, onto the first‐ floor office space in the northeast corner of the building. This will free up space for more aerobic equipment and  weights. The expansion will alleviate overcrowding during the afternoons and early evenings.   Funding: 2019 ‐ $500,000 CIP    Recreation Center Locker Replacement   Description: The Recreation Center lockers were installed almost 20‐years ago, are past their useful life, and the  parts to maintain them are becoming difficult to obtain.  Funding: 2020 ‐ $200,000 CIP        Page 2 of 5 Old Town Hall Demolition   Description: The Town recently completed the build out of 100 Mikaela Way and relocated Town Hall operations  there. This leaves the old Town Hall vacant and not needed for Town operations. This project will demolish the  1980 portion of the facility and leave the addition constructed in 2007 standing to support special event  operations and house IT and utility infrastructure for the park.   Funding: 2020 ‐ $600,000 CIP    351 Benchmark Demolition (old fire station)   Description: With the completion of the Avon Public Safety Facility, the old fire station is no longer in use and  mostly vacant. This project will demolish the facility and restore the site to a condition as envisioned in the West  Main Street study and schematic design described below.   Funding: 2020 ‐ $600,000 CIP    *Estimated ending fund balances assigned to the Town‐owned Properties Program after the above projects are  completed in 2020 is $890,081.    CURRENT FUNDING FOR OTHER TOWN‐OWNED PROPERTIES/URBAN RENEWAL PROJECTS:  Study and Schematic Design of West Main Street   Description: The Town master plans envision extending Main Street from Mikaela Way to Lake Street. There  have been recent changes to the area including the vacating of 351 Benchmark, the former fire station. This plan  will study the area and create a vision for extending the mall and 351 Benchmark Road site.   Funding: $50,000 2019 CIP/URA    Design West Main Street   Description: Upon completion of the study and schematic design of West Main Street, the next step is to  develop the design and cost estimates of the vision. This will take the vision through to construction documents  and cost estimating. A plan for the construction of the project will also be developed as part of the design.   Funding: $175,000 2020 CIP/URA    Benchmark Road On‐Street Parking   Description: Several Town plans envision adding on street parking to West Benchmark Road from  Avon Station to Mikaela Way. The goal is for the parking to support local businesses and provide  parking for Avon Station and the Gondola. The design will incorporate environmentally sustainable  practices to minimize the effect of the additional paved area.  Funding: $420,000 2019 CIP URA    *Transfers from the URA to the CIP for 2019 are $400,000.  Final unrestricted estimated ending fund balances in  2019 in the URA is $10,947.  Beginning in 2020 there is approximately $550,000 surplus funds available annually  for projects within the Town Center West Urban Renewal Plan Area.    TOWN‐OWNED PROPERTIES PROJECTS:  In addition to the (funded) projects identified above, the Town‐Owned Properties Plan includes a number  of other long‐range projects in Tract G, Village at Avon School Site, Village at Avon Park Site, Wildwood  Properties, Wildridge Fire House, and Swift Gulch.   These projects are included as ATTACHMENT 1 to  illustrate the breadth and variety of envisioned projects.     GRANT OPPORTUNITIES:  At the January 22, 2019 Council meeting, a question came up about grant writing experience among Town  staff. There are a number of members of Town staff who have experience completing and submitting  Page 3 of 5 various grant applications. Staff is ready and available to begin working on any available grant  opportunities depending on Council’s ultimate direction for the Hahnelwald Barn project.     A few available grant funding opportunities are described below:    Department of Local Affairs – The Department of Local Affairs (DOLA) has an Energy and Mineral Impact  Program that consists of three funding cycles per year (April 1, August 1, and December 1). DOLA’s intent  in administering this grant program is to promote sustainable community development, increase livability  and resilience of communities through strategic investments in asset‐building activities. The most  successful applications into this program are those that demonstrate urgency and local commitment to  get the project done, show a high priority for the proposed application, are prepared to start work, and  can demonstrate a relationship to energy and mineral impact in rural Colorado. There at two funding tiers  (Tier 1 – up to $200,000 and Tier 2 ‐ $200,001 to $1,000,000).     State Historical Fund – Funds are distributed through a competitive process and all projects must  demonstrate strong public benefit and community support.  Grants vary in size, from a few hundred  dollars up to $200,000.  The State Historical Fund assists in a wide variety of preservation projects  including restoration and rehabilitation of historic buildings, architectural assessments, archaeological  excavations, designation and interpretation of historic places, preservation planning studies, and  education and training programs. Their Competitive Grant program has two application cycles per year  with deadlines on April 1 and October 1.     Great Outdoors Colorado – Great Outdoors Colorado (GOCO) offers competitive grant programs for  outdoor recreation and land conservation projects in the state of Colorado. More specifically, GOCO‐ funded projects increase outdoor recreation opportunities, preserve open spaces, protect and manage  wildlife, and enhance state parks. While the types of projects GOCO funds vary widely, it does not appear  the Hahnewald Barn Preservation Project falls within the established criteria for funding.     CAPITAL FUNDRAISING CAMPAIGN:  At the January 22, 2019 Council meeting, a question came up related to capital fundraising campaigns. A  capital campaign is a one‐time, targeted fundraising initiative that takes place over a defined period of  time. Its purpose is to raise significant funds for concrete projects such as new construction and building  renovations. While no one on Town staff has that experience, staff reached out to several consultants  who specialize in fundraising campaign assessments and planning efforts to determine a ball park cost for  hiring one of these consultants. Unfortunately, staff did not hear back from any of the consultants we  reached out to prior to finalizing this memo. According to the website CampaignCounsel.org, “Most fund‐ raising consulting firms charge on a flat fee basis, based on time and service provided. Most will not accept  assignment on contingency or percentage basis.” Consulting fees depend on the amount of service and  on‐site campaign management required and can run everywhere from a few hundred or few thousand  dollars a month up to $20,000 or more per month.     PRESERVATION ONLY OPTION:    At the January 8, 2019 Council meeting staff heard strong interest in preserving the Barn along with strong  sentiment to minimize expenditure of Town funds for any potential project.  Using additional design work  from Anderson Hallas, staff asked for cost estimates for a “preservation only” project which would involve  moving the Barn a minimal distance and placing the Barn on a permanent foundation, with no remodeling  and minimal structural improvement as necessary.  The two identified locations for a “least cost‐ Page 4 of 5 preservation only” option is the lower play fields and the old Town Hall site.  The estimated cost for the  lower field location is $820‐880K and the estimated cost for the old Town Hall site is $900‐960K.      Placing the Barn along the south edge of the lower field site is likely to impact the softball field but would  not impact the soccer field.  Placing the Barn at the old Town Hall site could be located on the south edge,  which would not require immediate demolition of the old Town Hall building, or could be subject to  further site design to determine best location, which would incorporate demolition of the old Town Hall  building.   Note that Scheme B – Phase I includes moving the Barn, demolishing Town Hall, and placing the  Barn on a permanent foundation, or preservation plus old Town Hall demolition.  Phase I could be  completed to accomplish preservation of the Barn without a commitment or obligation by the Town to  implement the additional improvements contemplated in Phase II and Phase III.          It should also be noted that no action has taken place regarding a Union Pacific construction permit, or  undergrounding Holy Cross powerlines, other than a cursory review of feasibility and permit requirements  with those entities.  These actions should proceed as soon as possible if the Council desires to move the  Barn without disassembly.    DISMANTLING OPTION:    Town received a cost estimate of $400,000 from Timeless Barn Co for dismantling, storing and re‐ assembling the Barn structure.  Staff has requested a specific quote for just dismantling and storing the  Barn; however, we have not received an itemized cost estimate at the time of preparing this  memorandum.  With a complete cost estimate of $400,000; we anticipate that simply dismantling and  storing the Barn structure would be approximately ½ that cost estimate or $200,000.  The cost estimate  from Timeless Barn Co notes that some loss of lumber in this process would occur and that the cost of  replacement lumber would be borne by the Town.  Timeless Barn Co could not provide an opinion of the  percentage loss of lumber.  Timeless Barn Co felt that dismantling and re‐assembling process would result  in comparable and adequate structural integrity.  Dismantling and reassembly the Barn would provide  additional time to pursue other sources of funding and would allow the Town greater flexibility in  exploring potential sites for re‐assembly.  Due to the limited timeframe of 2‐3 years that the Barn lumber  can be stored without deterioration, the Town would need to schedule another design and planning  process to commence in 2019 to determine location, design and cost for re‐assembly of the Barn.  The re‐ assembly of the Barn at a permanent location would require construction of foundation such that the final  cost of this approach is likely to be comparable in cost to the options to move the Barn for a preservation  only project as described above.     PZC REVIEW:  On January 15, 2019, Anderson Hallas Architects presented the refined final design alternatives to the  Planning and Zoning Commission.   There was no formal action by the Planning and Zoning Commission;  rather, each member discussed the merits of the design alternatives.   The majority of the Commission  members supported Scheme B, in the location of the old Town Hall, and all agreed that further site  planning and studies would need to take place to plan for the interaction of the programmed uses and  the surrounding park uses.      PUBLIC COMMENTS:  Public comments received via e‐mail since the first of the year are attached to this staff report as  ATTACHMENT 2.      Page 5 of 5 ADDITIONAL INFO:  To review background information, advocacy video, design alternatives, and previous public presentations  go to www.avon.org/barn.    OPTIONAL MOTIONS:  No Further Action:  “I move to take no further action on the Hahnewald Barn project and direct staff to  inform the Eagle River Water and Sanitation District that the Town of Avon will not further pursue  acquisition of the Hahnewald Barn.”    Move Barn for Preservation Only:  “I move to direct staff to proceed with permit applications, contract  negotiations and preparation, and additional design steps as necessary for a barn preservation only  project to move the Hahnewald Barn to the [old Town Hall site or Lower Field].”      Dismantle and Store Barn Wood:  “I move to direct staff to proceed with contract negotiations and  preparation to dismantle the Hahnewald Barn and store the materials on the Swift Gulch site.”    Scheme B Implementation:  “I move to direct staff to proceed with permit applications, contract  preparations and negotiations to move the Hahnewald Barn, prepare and issue a Request for Proposal for  the demolition of the old Town Hall, and proceed with additional design steps as necessary to commence  implementation of the Anderson Hallas Scheme B design and re‐use of the Hahnewald Barn.”     ATTACHMENTS:  ATTACHMENT 1 ‐ Town‐Owned Properties Project Summary  ATTACHMENT 2 ‐ Email Public Comments      Town‐Owned Properties Plan, April 2018 ‐ Identified Projects Location Project name Function or details Potential funding  source Ballpark cost Estimated  Timeframe Benchmark Road Parking  On‐Street Parking 2019 CIP  $        420,000 1 Year Tract G (Park) Mall Extenstion &  Planning  Repurposing of  351 Benchmark Planning 2019 CIP/URA  $           50,000 1 year Tract G (Recreation  Center) Recreation Center  Improvements Weight Room 2019 CIP  $        500,000 1 Year Tract G (Recreation  Center) Locker  Replacements 2020 CIP  $        200,000 2 Years Wildwood Properties Employee Housing Design, Site Prep,  Utilities Affordable Housing  Fund/Partnership  No estimate 2 Years Tract G (Park) Design for West  Main St/351/Old  Town Hall Design & Engineering 2020 CIP/URA  $        175,000 2 Years Tract G (Park)Demolition of Old  Town Hall 2020 CIP  $        600,000 2 Years Tract G (Park)Demolition of 351  Benchmark 2020 CIP  $        600,000 2 Years Tract G (Park)Landscape  Improvements CIP No estimate 1‐3 Years Wildridge Fire House Community center CIP No estimate 1‐3 Years Tract G (Park) Permanent  restroom facilities  near beach  CIP No estimate 3‐5 Years Swift Gulch Site Regional  operations and  storage CIP No estimate 3‐5 Years Swift Gulch Site Buildings  department needs CIP No estimate 3‐5 Years Village at Avon School  Site Dog Park General Fund or CIP  Reserves No estimate 3‐5 Years Village at Avon School  Site Community Garden General Fund or CIP  Reserves No estimate 3‐5 Years Lot 5 Public Works  Facility Polystyrene  compactor Partnership with Eagle  County No estimate 5‐10 Years Lot 5 Public Works  Facility Covered Garage cinter, ice slicers, front  end loaders CIP No estimate 5‐10 Years Lot 5 Public Works  Facility Enclosed Storage traffic control devices,  culverts, power washer CIP No estimate 5‐10 Years Lot 5 Public Works  Facility Heated Garage equipment  maintenance CIP No estimate 5‐10 Years Lot 5 Public Works  Facility Park Storage equipment and  materials CIP No estimate 5‐10 Years Lot 5 Public Works  Facility Multi‐Use Building 5,200 sf CIP No estimate 5‐10 Years Tract G (Park)Repurpousing of  Cabin CIP No estimate 5‐10 years Tract G (Park) Relocation or re‐ purposposing of  Parks garage CIP No estimate 5‐10 years Tract G (Park)  Hahnewald Barn CIP No estimate 5‐10 Years Creation of  Creative District General Fund   No estimate 5‐10 years Tract G (Park) Performer Coach  Parking / high‐ voltage hook‐up CIP No estimate 5‐10 years Wildridge Fire House Employee Housing  Finish 1st Floor Revenue Bonds from  rents Affordable Housing  Fund / Partnership No estimate 10+ Years Swift Gulch Site Workforce housing Revenue Bonds from  rents Affordable Housing  Fund and/or CIP No estimate 20+ Years Village at Avon Park  Site Park Park CIP No estimate 25+ Years Working studios,  learning center,  educational classroom  business startups, in  residence housing,  indoor performance  space, private event  space, restrooms,  small parks equipment  storage,    $     2,545,000  ATTACHMENT 1 1 ‐‐‐‐‐Original Message‐‐‐‐‐  From: Steve Kalapos <Kalapos@comcast.net>   Sent: Monday, February 4, 2019 6:51 PM  To: Avon Council Web <avoncouncilweb@avon.org>  Subject: Hahnewald Barn  Avon Town Council,  Thank you for doing the work of the people.  My family has lived has full time in Avon on Lake Nottingham for 8 years  and we never even heard of the barn till they needed to move it.   We do not support spending anymore tax paying  money on the barn.  Furthermore, no land owned by the town of Avon should be given to save the barn, especially the  old town hall site.  That is the best piece of property left in Avon and it should be saved for something that makes the  town money or left empty so that it doesn’t cost a fortune to up keep.  If the barn is to be saved it should with private  money on private property.   Sincerely   Steve and Maria Kalapos  1 From: Jack Gardner <jack‐gardner@comcast.net>   Sent: Friday, February 1, 2019 1:25 PM  To: Letters@vaildaily.com  Cc: Avon Council Web <avoncouncilweb@avon.org>  Subject: Cut the Cord on the Hahnewald Barn!  We heartily endorse the recommendation regarding the Hanewald Barn that any further effort to “Save the Barn” ‐‐‐  whether by moving, dismantling, remodeling, etc. ‐‐‐ be taken up by a civic group interested in converting the Barn to  another purpose, with appropriate Town oversight, but with no further expenditure of taxpayer funds.  We have lived in Avon full‐time for nearly 20 years and have owned property here for over 25 years. With significant  contact with Town Council over that time, we don’t recall any discussion about, or even mention of, the Hahnewald  Barn.  Unlike a similar structure in Steamboat Springs that has become an iconic symbol of that Town,  Avon’s  Hahnewald Barn simply is not a significant part of life in Avon, nor in its history, except to a relatively few residents.  Regrettably, we have concluded that instead of being an asset for the Town, the Barn has become a liability.  Shifting responsibility to a community action group for any further financial backing for the Barn has a great deal of  precedent in our Valley.  For example, Jack’s Place at the Shaw Cancer Center was built entirely through such efforts, as  was the Walking Mountains Science Center. And a significant amount of funding for the Castle Peak Senior Care project  in Eagle was contributed by those who were convinced that project was very much needed by our community.  Those  efforts prove one thing which should be the sole determinant for further action on the Hahnewald Barn ‐‐‐ ”If There’s a  Will, There’s a Way !”  Failing that initiative ‐‐ by those in favor of saving the Barn ‐‐ we would urge Town Council to  stop spending funds on this effort.  With Avon Mayor Smith‐Hymes concluding that the people of Avon ”would never vote approval of the Town’s funding  the Barn,” why is the Town Council prolonging the discussion?  It’s time to cut the cord and recognize that this bit of  Avon history is not important to the overwhelming majority of the Town’s residents !! This will free the Town Council’s  ability to consider better use of taxpayer funds as well as alternative uses of the former Town Hall and Police Station  site. As one recent letter writer urged: “More Fireworks, Less Barn !”  Jack and Greer Gardner Avon  1 From:Sarah Smith Hymes Sent:Friday, January 18, 2019 6:29 AM To:Preston Neill Subject:Fw: Barn Decisions Follow Up Flag:Follow up Flag Status:Completed From: Andrew Jones    Sent: Thursday, January 17, 2019 10:22 AM  To: Mayor,Council,Atty & Admin  Subject: Barn Decisions   All of a sudden you want to preserve history? What about the dozens of other structures that were around  this area that have been taken down? The Nottinghams should have no say in what goes on with property that  they already sold for millions years ago. They made their decision then and should not hinder the decisions of  the council for the benefit of one family. If they want to keep the barn then they should pay for it. Stop  allowing those with money in this town to make every decision here. I'm all for preserving history but for  who? the 50 people who grew up here? About 2% of those employed by Eagle Schools were born and raised  here. Were the Nottinghams not aware that this could be the outcome of their property after selling it? It's  outrageous that this is even up for discussion for using tax payers money for a private matter not to mention  that you all have known this was needing to happen for years and now we're at the deadline and it's as if you  were just made aware of it. We are going to spend millions on a postcard opportunity? Have you not looked  around? All of this goes without talking about the stage and the road that is still not complete. Who the hell  made the decision to place a random median on a road that is covered in snow half of the year and plowed?  Also making the turn out of the lodge a right hand turn really alleviated the non existent traffic problem didn't  it? I can't get on a treadmill half of the time at the rec center. The lap pool is completely full every evening  with kids. The locker room is cramped full of people. Create your event space there by expanding that. This  barn will not be used by any locals after construction as I am sure the rental cost will be higher than just going  over to the park and hanging out for free. You all are nuts and need to stop treating these responses against it  as if they are below you.   1 From:Ron Siebert <siebertron@yahoo.com> Sent:Thursday, January 17, 2019 11:36 AM To:Scott Prince; Jake Wolf; Amy Phillips; Chico Thuon; Jennie Fancher; Sarah Smith Hymes Subject:Hahnewald Barn Dear Town of Avon Council Members, I have been following the discussion and progress on the Hahnewald barn relocation and the money already being spent on it. While I understand the sentiment involved wanting to save this old barn, it is a complete waste of tax dollars to do so as submitted to the Planning Commission. The existing dimensions of the barn are not conducive to being a well designed usable space and the positioning of it on Tract G does not allow for good use of the property. I believe a better use of the barn is to remove the existing cladding and use it to finish the interior or exterior of a new properly sized, designed and constructed structure that can be better placed on the existing Tract G to allow for more public use of the existing property around the lake and park. The design of a new energy efficient structure could incorporate the original design of the barn in some portion of it. A nice picture of the barn could be attached to a plaque to commemorate the structure and history. Please vote NO on the expensive and dysfunctional use of the existing structure and the millions of dollars it will cost to relocate and refurbish it. Thank You Ron Siebert Town of Avon resident 1 From: pam warren     Sent: Tuesday, January 15, 2019 5:28 PM  To: Avon Council Web <avoncouncilweb@avon.org>; Sarah Smith Hymes <shymes@avon.org>; Scott Prince  <sprince@avon.org>; Jennie Fancher <jfancher@avon.org>; Chico Thuon <cthuon@avon.org>; Jake Wolf  <jwolf@avon.org>; Tamra Underwood <tunderwood@avon.org>; Amy Phillips <aphillips@avon.org>  Cc: pgwarren@comcast.net  Subject: Input on Hahnewald Barn Initiative  January 14, 2019  Dear Mayor Smith‐Hymes and Avon Town Council Members:  We recently attended the town meeting on January 8th to better understand the current state of the  Hahnewald barn discussion.  Based upon what we heard and have read we maintain that this should primarily be a philanthropic effort not  a burden on the town of Avon tax payers. Additionally we recommend decoupling the community center ideas  from the barn initiative.  As expected there are mixed reviews on how the town should proceed in terms of its involvement and funding  for this effort.  Clearly this is an emotionally charged issue and the “save the barn” advocates are using the  deadline of June 1 to put pressure on the council to fund the effort.  However, from our informal discussions with many Avon residents there is concern from a majority of folks  who are adamantly against the town spending $5‐10M to relocate and repurpose the Hahnewald barn.  Many  of us base our concerns on the following:  1. $5‐10M of taxpayer dollars can be better spent on other prioritized projects such as affordable housing initiatives, wildfire mitigation, water rights protection, recycling efforts, improvements to the existing recreation center etc. 2.There is no need for an additional community center. We already have community centers in the form of the recreation center, the town hall meeting area, the park, schools etc.  Let’s maintain and use what we have. If the Council differs from this perspective, significant justification will be needed. 3.The town has not demonstrated it can successfully manage a project of this magnitude without significant cost overruns. 4.The town should not divert its resources:  time, money, staff, or town Council energy to manage this project. 5.While some believe that the save the barn initiative has merit, we don’t believe the town should be the primary funding source for this type of project.  If the project proceeds, the effort should be privately funded. Additional financial assistance might be available through state or federal grant funds for historic preservation efforts. Funding efforts should be spearheaded by the “save the barn” advocates. So, how should the town proceed?  2 We believe the Council should decouple the community center idea, which has significant cost implications  from “save the barn” initiative.  The town has already spent $120K with an architectural firm to understand the feasibility of moving and  repurposing the barn with conceptual ideas for interior design.  So given the fact that many tax payers are not  in favor of spending any tax dollars for this effort, we recommend the town move forward with the least  expensive option to save the barn.  Simply dismantle the structure and store the wood for 2‐3 years for future  historic reconstruction, salvage or reuse.    During this time the “save the barn” stakeholders and historic preservation advocates can source funding and  find the expertise and team members needed to execute the rebuilding and repurposing of the barn.  Additionally, the town Council could, to show good faith, split the cost to disassemble the barn among 3  parties; the Eagle River Water and Sanitation District, the historic preservation fund raising group and the  town of Avon.    Please confirm to the tax payers that the total cost for dismantling would not exceed $100K and the Council  would commit no more than $50K to this effort.   Bottom line, many of us do not believe that the town of Avon should be the project manager or the bank for  this effort.  Place the onus on the stakeholders, the historic preservation committee and the “save the barn” advocates to  source the funding and execute the plan with minimal involvement from the town Council and no additional  commitment from tax payer money.  Thank you for the opportunity to share our perspectives.  Pam and Peter Warren  4181 Little Point  Avon, CO  From: Kim Nottingham <kimn1960@gmail.com>   Sent: Tuesday, January 08, 2019 10:57 AM  To: Avon Council Web <avoncouncilweb@avon.org>  Cc: Kim Nottingham <kimn1960@gmail.com>  Subject: Hahnewald Barn Restoration  Dear Avon Town Council,  As a community we stand at a crossroads; we can choose to embrace and celebrate the history of Avon  by saving the Hahnewald Barn, or we can lose forever the last remembrance of our pioneering  history.  Avon is in a unique position to have such a historic landmark within the town in the first place  and now to be able to relocate and repurpose the barn structure is a defining moment for our future.  When the barn was built by hand in 1908, Avon was a ranching community where people worked hard  for everything they had.  The fact the barn is still standing and functional over 100 years later is a  testament to the fortitude and resilience of the people who built and maintained the barn all of these  years.  Avon did not become a town when it was incorporated in the 1970's, Avon has been a community since  the late 1800's. Our history did not begin with the I‐70 corridor or with the opening of Beaver Creek,  Avon history goes back to the first settlers who staked a claim on a homestead here. The Hahnewald  Barn is our last link to this story of Avon, please do not let this story end now. Please look at the future  value you will be adding to the Avon Community by creating a space that will be a focal point for the  town and the valley.  I realize there is a cost to the relocation and restoration of the barn and I believe  the return on the investment will be good for the economy of Avon. This is critical decision that cannot  be made purely for financial reasons.  This is a once in lifetime opportunity to  preserve an important  piece of our history and to add to the future story Avon.  This building can become a priceless symbol of  the heart and soul of the Town of Avon.  Thank you for your time!  Kim Nottingham  e: KimN1960@gmail.com  From: Richard Wheelock <richcardow@yahoo.com>   Sent: Tuesday, January 08, 2019 3:53 PM  To: Avon Council Web <avoncouncilweb@avon.org>  Subject: Barn  As a Avon business owner and resident for over 15 years i am in favor of keeping buildings of character and interest --especially in a town that has little to show of a historical nature--- But over $7M is extreme to say the least--- to spend that amount of money on the historical barn is a serious overspending of taxpayer dollars--- I'm sure we can buiild a reproduction of the barn for 1/3 of the projected cost and nobody will really be able to tell the difference Richard Wheelock Owner Agave Wildridge resident From: russell andrade <rja0479@yahoo.com>   Sent: Tuesday, January 08, 2019 4:13 PM  To: Avon Council Web <avoncouncilweb@avon.org>  Subject: Barn   I am going to attempt to attend the meeting this evening, but just wanted to drop a quick note  on the barn issue.   Let me start by being clear, I have nothing against the barn. I just want to be sure that all  options are being explored. The 7 million plus price tag seems crazy for a town that has more  pressing needs. As a small business owner in town, it seems as if the council is out of touch with  the local business community. Those 15 or so parking spots that will be gone for two years are  extremely important to the local businesses. I also feel the 7 million could be used to solve  actual problems. The rental crisis is killing the small businesses.  I had to personally risk 42000  of my business money to rent the old fire house for employee housing. If that fails, 42000 is  enough to put a business my size out of business.   I just feel that the funds needed to relocate to the old town hall site could be better used.   Thank you.   Russell j Andrade.   1 From: Micheal Smith <smithvail@hotmail.com>  Sent: Tuesday, January 8, 2019 1:51 PM  To: Mayor,Council,Atty & Admin  Subject: AGAINST BARN relocation   As a 24 year resident homeowner of Avon,  I would like the council to understand that I think spending $7.9  million dollars to relocate the BARN is a ridiculous waste of taxpayer money that could be used to improve the  daily lives of Avon residents instead.  Look to less expensive alternative….Take a picture of the barn and hang it in the library….  Repurpose the  wood into modern projects….but DON’T waste $7.9 million taxpayer money relocating the BARN.   I don’t  understand how we don’t have money for proper bus services (like starting the skier shuttle NOV 15 when the  slopes open instead of Dec 15, starting the skier shuttle before to deliver guests and workers to Beaver Creek  BY 8am), but we have $7.9 mil miraculously to relocate a BARN that has historical relevancy but no purpose to  improve the lives of residents of AVON?  VOTE NO!  Sincerely,  Micheal Smith  Greenbrier #4  Avon, CO   smithvail@hotmail.co m  From: Kristi Ferraro <kristi@kristiferraro.com>   Sent: Monday, January 07, 2019 4:25 PM  To: Avon Council Web <avoncouncilweb@avon.org>  Subject: Hahnewald Barn    Dear Avon Town Council,  I would like to voice my support for saving Avon’s historic Hahnewald Barn. Moving and re-purposing Avon’s Hahnewald Barn is a step toward helping Avon regain its uniqueness and authenticity. It will re-purpose a historic building to serve as an iconic image from the past, and also to serve as an invaluable community gathering place that is sorely needed in Avon.   Many of our fellow communities have been able to save historic structures and create community gathering places, and these have become treasured community assets. I strongly believe that Avon can and should save this last, best vestige of its agrarian history. Although it’s often difficult to justify the costs of these grand projects at this conceptual stage, twenty years from now, the citizens of Avon will be glad that you did. I have often heard the story of how controversial it was for Vail to spend the funds necessary to purchase and develop Ford Park. Now, we can’t imagine Vail without it. I feel the same about our Harry A. Nottingham Park, Avon’s precious community asset. Let’s now honor that irreplaceable asset by preserving another beautiful asset and slice of Avon’s history – the Hahnewald Barn.   If the Town of Avon will continue to take steps toward saving the barn, I am confident that we can raise a variety of funding sources, large and small, to make this unusual project succeed. This is not the type of decision that should be made by the voters. The voters of Avon elected you to do the necessary deep dive into issues like this. It would be a mistake and would establish a terrible precedent to cede your responsibilities as the elected decision-makers for the Town in this way.   I urge you not to throw the Hahnewald Barn onto the trash heap. Re-purposing Avon’s Hahnewald Barn will enrich the lives of Avon citizens and visitors who will enjoy this exceptional building both inside and out, for years to come.                                                       Respectfully,  Kristi Ferraro  Citizen of Avon From: Kimberly Langmaid <kimberly.langmaid@gmail.com>   Sent: Monday, January 07, 2019 8:35 PM  To: Avon Council Web <avoncouncilweb@avon.org>  Subject: Historical Assets = Unique Experiences    Dear Avon Town Council,    Avon is the only place in the world where the Hahnewald Barn exists. This storied historical asset offers  many possibilities for you to create unique iconic experiences that will make Avon stand out among all  Colorado mountain communities.    Protecting and celebrating historical cultural heritage is one of the four pillars in creating sustainable  destinations. The world is quickly loosing much of its cultural heritage. The Hahnewald Barn is diamond  in the rough, waiting to be rediscovered and brought to life.    The price tag for restoration of the barn must be daunting. At the same time, there are many potential  partners from state government, to private foundations, to local philanthropists, who all place strong  values and investments in protecting Colorado's disappearing cultural heritage. There can be a financial  "win" for Avon if the right partners are brought in to the project.    Please consider your important role at this moment in our valley's history, where we have so few  remaining opportunities to save real, tangible, iconic cultural assets like the Hahnewald Barn. Current  and future generations of Avon residents will be grateful for your foresight in protecting our valley's  unique sense of place.    Thank you for your leadership and consideration.    Kim Langmaid & Peter Casabonne    2953 Bellflower Drive, Vail, CO  (We live in Vail and we love all of the Eagle Valley)                                     From: RICH CARROLL <richcarroll4@comcast.net>   Sent: Tuesday, January 08, 2019 11:45 AM  To: Avon Council Web <avoncouncilweb@avon.org>  Cc: Rich Carroll <richcarroll4@comcast.net>  Subject: Hahnewald Barn  Dear Avon Town Council;  This email is to address the Hahnewald Barn situation. Unfortunately family commitments will prevent me from attending tonight’s, 1/8/2019, Council meeting.  When the Hahnewald Barn first came to the surface my initial reaction was Boy that is a lot of money for a barn. Over time my opinion has changed. A barn is now The Barn.  Big decisions that are larger dollar amounts, that have the potential to be iconic, are visionary, and truly impact in a positive manner the fabric of our community, are rarely cheap nor easy.   I strongly encourage the Council to continue to evaluate all the possible alternatives including more modest options as well as potential grants and partnerships. When The Barn is gone it is gone. It will not come back. This is a once in a lifetime opportunity that is worthy of making sure that all the options are completely and thoroughly investigated.  If The Barn is developed correctly it has the potential to be a superb place-making Landmark that further develops Avon’s sense of community. Years from now we will wonder why The Barn was such a difficult decision.  When the dollar amounts of a project are large there are always people that will be against the project. And this is a good thing as it should drive Council to make sure the project is developed as well as it can possibly be and all options are vetted.  It is all too easy to look at a spreadsheet or a dollar value and say “No”. It is much more difficult to look at the heart and soul of The Barn, image all it can be, and see that vision to fruition.   It is easy to say this project is controversial so… “Let’s put it to the voters”. It is difficult to embrace the controversy, Vote on this as you are elected to do, and see The Barn to its place 10 years from now as integral to Avon.  Each of you are elected to make decisions; especially the difficult decisions. There are many high dollar and tough decisions that Council has made in the past such as the work on West Beaver Creek Boulevard, The Westin, the roundabouts, and the heat recovery project. Citizens have the Referendum process for decisions with which they disagree.  It is your job and your duty to Vote on The Barn after all options are thoroughly explored and vetted. This what you are elected to do. You have the breadth and depth of knowledge to make tough decisions. There is a phrase for passing the buck that is best not placed in an email. Please excuse my bluntness on this subject but it is something I feel passionate about.  I encourage Council to thoroughly explore and vet all the options for The Barn. Then after this process Vote on The Barn to make it an iconic part of Avon.  Thank you  Rich Carroll Avon Resident Cell # available upon request Have Fun Out There 1 From: Kathy Ryan <kathyryan@aol.com>  Sent: Tuesday, January 8, 2019 10:40 PM  To: Mayor,Council,Atty & Admin  Subject: The barn   Imho: this is a Nottingham family issue. It shouldn’t take up non‐family time nor public funds. The Nottingham family  should raise the funds on their own. They sold the land off, for profit. I would have preferred the sheep in my  neighborhood.  Kathy Ryan  "Even broken crayons color" ... Unknown  Hahnewald barn is historically significant When the Avon Town Council votes on the preservation of the Hahnewald barn, finances, land planning and local politics will most certainly be a factor. However, contrary to the opinions of some opponents, there should be no doubt about the historic value of the barn. In a town where history is just about impossible to find, that barn is the last remaining physical link to the community’s past. It is a historically valuable community asset. Local history is elusive in Avon because the area was an unincorporated ranching community prior to the development of Beaver Creek ski resort in the 1970s. Unlike Minturn, Eagle, or Red Cliff, the community does not have a historic downtown to tell its story. Residential and commercial development has swallowed up the once productive ranches. The old Avon general store actually does still exist – but it is located in Eagle. Thirty-some years ago, a group of local volunteers with an interest in local history cared enough to dismantle the store log-by-log, then rebuild the structure as part of the Eagle County Historical Society’s museum complex. The reconstructed and well-stocked store is now a history lesson for several thousand visitors annually. The Hahnewald barn represents an important aspect of local history. It tells the story of European immigrants who found new opportunity in a Colorado mountain valley. Some of the names are still familiar in the community (Metcalf, Hahnewald, Kroelling, Nottingham). Typically drawn here by the lure of instant wealth from the silver and gold mines, many of those early settlers were savvy enough to recognize the Eagle River Valley’s agricultural opportunities as a better economic option. They brought in cattle and sheep, and raised hay, grains, potatoes, peas and lettuce. For nearly a century, agriculture was the primary economic engine in the valley. Avon was particularly a force in the county’s agricultural economy in the 1920s and 1930s, when the Colorado State Agricultural College established an “experimental farm” in what is now East Avon and Eagle-Vail. Rich soil and the 7,600-foot elevation made the land ideal for testing seeds and crops and experimenting with farming techniques. Trainloads of agricultural professors from western states were brought through the county to observe and learn from the experiments at Avon. The annual “Farmer’s Day” exhibits and programs at Avon drew up to 1,500 high altitude farmers and ranchers from throughout Colorado and neighboring states. In 1912 a trio of Avon farmers in (Albert Hahnewald, Mack Fleck, and G.C. Nottingham) went to the county commissioners seeking an investigation of the impact of that mining waste at Gilman was having on the Eagle River. The county commissioners and mine owners wanted to deal with the issue with a simple verbal agreement. The farmers, warning that the mine wastewater would eventually “kill the land,” demanded a formal contract. Sixty years later, mine waste turned the Eagle River orange, and Gilman was declared a Superfund cleanup site. Those Avon farmers were prophetic. A number of communities in Eagle County have saved and re-purposed old barns. In Eagle, the Chambers Dairy barn is now the Eagle County Historical Museum. In Gypsum, the town modified the unique Lundgren barn to serve as an outdoor stage. Basalt leaders preserved that town’s history by locating the Arbaney barn in a town park, where it is used for community gatherings. All of those towns recognized value in protecting a legacy. People are drawn to communities that have a strong sense of historical identity and character. Understanding the past gives citizens a stake in the present and future. Since the time it became an incorporated town, Avon has been struggling to define itself. Preservation of this bit of history could bring the town the kind of soul it needs to establish itself as more than a just a bedroom community for Vail and Beaver Creek. It will be a little sad if Avon residents have to drive to Eagle to find their community history. Kathy Heicher Eagle County Historical Society -----Original Message----- From: Susan Gruber <grubersr@gmail.com> Sent: Friday, February 8, 2019 1:26 PM To: Avon Council Web <avoncouncilweb@avon.org> Subject: Barn It is my hope that the council will continue to seek options that will preserve this unique historic structure. Thank you. Sent from my iPhone -----Original Message----- From: Lillian Pelton <lillianpelton@gmail.com> Sent: Friday, February 8, 2019 11:59 AM To: Avon Council Web <avoncouncilweb@avon.org> Subject: Hahnewald Barn Hi - I’m reaching out to voice my support to save the Hahnewald Barn. The plan to move the barn and repurpose as an events space is an important step to preserve Avon’s history and is an investment in a valuable community space which will pay out dividends long term. I was married in the county in 2015 and know firsthand that there is a need for more, accessible event spaces in the area. Please invest in the future of Avon for both local residents and visitors by preserving one of the few remaining pieces of the town’s history. I and future generations will remember this important decision. Best, Lillian Pelton TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Preston Neill, Acting Town Manager Date: February 12, 2019 Topic: JOINT WORK SESSION WITH THE AD HOC SPECIAL EVENTS COMMITTEE SUMMARY: Members of the Ad Hoc Special Events Committee will join Council for a joint work session during Tuesday’s meeting. The following topics are slated for discussion: • Recap of items discussed at January 30th Council Retreat o Special Events Funding o Decision Making Authority ▪ Planning Processes for Supplemental Special Events ▪ Friday Night Concert Direction ▪ Additional Funding Request Processes o Role of Special Events Committee • Cultural Plan COUNCIL RETREAT RECAP: Council held a Retreat on Wednesday, January 30, 2019. One of the general topics for the Retreat included special events. There were a variety of subtopics and issues that were identified for discussion, including, but not limited to: Discussion of Annual Special Events Funding and 2020 Budget Council discussed the amounts allocated for event seed funding over the last several years. Those amounts are as follows: $400,000 in 2017, $500,000 in 2018, and $500,000 in 2019. The Town spent $393,700 in 2016 and $297,221 in 2015 for seed funding events. Council has approved large special event budgets, working under the strategy of seed funding or assisting event promoters to build their events. Once an event becomes established, the strategy has been to slowly wane the amount of funding year over year. More specifically, the aim has been to reduce the amount of seed funding each year from the initial award, over a three-year period, to induce a privately funded, sustainable, signature event. Council was in agreement that the annual amount should not exceed $500,000. Another idea that came up during the course of the Retreat was not to provide the AHSEC with a budget. The Committee would rank the submitted event applications and forward their collective thoughts and recommendations to Council for their ultimate approval. In the end, Council thought it would be best to bring this conversation to the AHSEC during the joint work session to gain more input. Decision Making Authority Staff presented a memorandum centered on decision making authority with regard to special events, event agreement negotiations, and administration of events. Council was encouraged to discuss decision making authority and expectations and to ultimately provide direction to staff for clarity. A list of specific areas of decision making was highlighted for Council consideration and discussion. However, staff was not able to decipher any concrete direction. Since there are several items staff is in need of direction on, we thought it would be best to bring these items to the joint work session for discussion and direction, which may provide staff with clarity on how to address items like these in the future. Below are the three items that require direction: Processes of Planning Supplemental Community Centric Events After reviewing the 2019 Special Events Calendar, staff has identified ideal weekdays and weekends for small low-cost community centric events. Does the Council and AHSEC favor small community-centric events being added to the calendar with Town Manager approval? Does the Town Manager have the authority to fund events under $5,000? Direction regarding 2019 Friday Night Concert(s) The AHSEC recommended to fund one or two concerts for Friday nights in the summer of 2019. The AHSEC funded the concert(s) to determine if Avon LIVE! and Lake Street Market could successfully move from Wednesday nights to Friday nights in 2020. Following the January 30, 2019 Town Council retreat, Council directed staff to focus on “owning” Wednesday nights. Before moving forward with planning efforts for one or two concerts on Friday in summer 2019, specific objectives and a budget must be determined to ensure the success of the event. Additionally, staff would like the following points to also be considered in determining direction: • Council has expressed interest in an annual community picnic. Perhaps, these funds could be utilized for the community picnic. • Staff can book and manage talent for significantly less than the delineated budget of $40,000. Additionally, by having staff manage the funds, all funds utilized can be transparently tracked. • The funds could be utilized to supplement other event budgets like Salute to the USA, the combination of Vail Valley Brew Fest at Avon and Gears ‘N Beers, or Lake Street Market and Avon LIVE! • The funds could be returned to the Special Events budget. • The entire Vail Valley calendar is overly scheduled with free live music. A concert for the sake of a concert without other event activation and marketing may not be as well received as anticipated. Additional Funding Request Processes Following the AHSEC standard funding processes, staff requests direction on best processes to review supplemental or new funding requests. For example, if a promoter funded in the 2019 AHSEC application cycle seeks additional funding, how should they proceed in soliciting additional funding? If a promoter who did not originally seek funding in the 2019 AHSEC application cycle decides after the approval process that they would like to apply for funding, how should they proceed in soliciting funding? Role of the Special Events Committee Council discussed the vision for how the AHSEC should be structured and operate. Direction was provided to prepare a resolution approving an advisory Cultural, Arts and Special Events Committee to take the place of the Ad Hoc Special Events Committee. Based on how the resolution is currently written, the Cultural, Arts and Special Events Committee shall be composed of seven (7) voting members and two (2) ex-officio non-voting Council members appointed by Council. The resolution identifies that the term of office for each member shall be two years on an overlapping tenure. It also identifies the following purposes and duties of the Cultural, Arts and Special Events Committee: • To provide advice concerning the implementation of the Cultural Plan for the Town of Avon, as may be amended from time to time; • To review, research and provide guidance and advice on event programming in the Town of Avon; • To review applications for Town funding allocated for events and provide recommendations to the Avon Town Council, and to develop applications forms and procedures and review criteria related to such funding applications; • To conduct surveys and prepare reports related to special events as appropriate and as directed by Council; • To attend joint meetings with the Avon Town Council to review past, present and future events, review and evaluate implementation of the Cultural Plan, review annual appropriations to support events, and to review policies, procedures and practices for events and the CASE; and, • To perform such other tasks related to special events in or near Avon as the Avon Town Council may direct. During the Retreat, Council articulated a vision for how the Cultural, Arts and Special Events Committee should operate during the annual event application solicitation process. That vision was for the Committee to, during the annual events solicitation process, make recommendations to Council by ranking the submitted event applications. The Committee would complete this task without having an identified not-to-exceed amount/budget. The Committee’s rankings, thoughts and recommendations would be forwarded to Council for their ultimate approval. Council was explicit that the Committee would not have any authority to direct staff or decide how money should be spent. CULTURAL PLAN: Council asked for the Cultural Plan to be amended based on the discussions during the January 30th Council Retreat. Staff has made an attempt to tailor the Cultural Plan, which is attached for review and further direction. The aim is for the document to be formally adopted by resolution at a future Council meeting. ATTACHMENTS: Cultural Plan 1    TOWN OF AVON CULTURAL PLAN ADOPTED BY RESOLUTION 19 - # [DATE] 2    Table of Contents Page 3 Vision, Mission, Purpose, Strategies Page 4 Tactics – Signature Events Page 4-5 Tactics – Community Enrichment Events Page 5 Communication, Cooperation and Coordination Page 5 Funding, Application and Review Process   3    Vision Avon thrives with vibrant culture and community events. Mission Strengthen the vibrancy and activity of the Avon community by recommending and overseeing an annual portfolio of cultural, educational, recreational, events and activities. Purpose The purpose of the Town of Avon Cultural Plan is to establish priorities and initiatives which will guide the Town of Avon staff in developing and supporting a calendar of events, activities and programs. Strategies One. Develop and Support Signature Events The Town will seek to attract and support two categories of special events: 1.1 Develop and Nurture Community Enrichment Events Community enrichment events are important to a balanced, year-round cultural activity calendar and are appealing to Avon’s diverse demographic population. Community events are easily accessible and better residents’ quality of life. 1.2 Develop and Retain Signature Events A signature event is synonymous with the Town of Avon. Recognition of a strong Avon brand for the event must be equal to or greater than the brand and/or name of the sponsoring organization, producer or owner of the event. The event must attract a minimum of 4,000 persons per day and drive overnight visitation with economic benefits, including but not limited to increased lodging stays and higher retail and restaurant sales. The promotion and marketing of the event has wide and successful exposure in State and national markets. Community benefits are required, including participation which reflects the demographic profile of the Town. The event provides a superior community and guest experience’ 4    Tactics Introduction Tactics are the methods and actions to implement the Cultural Plan strategies. Some tactics are singular actions, while others require long term development. IMPLEMENTATION TACTICS 1.1 Develop and Nurture Community Enrichment Events TACTIC SUCCESS MEASURE 1 Ensure that the special event funding and use of facilities are commensurate with the investment of public funds. Post-Event Report, with budget/actual information 2 Ensure that events are sustainable: Implement sustainability requirements, including but not limited to: Event pro forma presents projection of profitability in three (3) years; funds are leveraged with a significant ratio of sponsorship and vendor sales Applications from producers meet sustainability criteria; Post-Event Reports 3 Encourage activation of events to create an expanded presence throughout the community and stimulate the participation of the merchants, residents and bars restaurants, and lodges. Post-Event Report; Diversity of participants 4 Determine gaps in event calendar and types of community enrichment events desired; solicit events 12-month calendar; diverse events IMPLEMENTATION TACTICS 1.2 Develop and Retain Signature Events TACTIC SUCCESS MEASURE 1 Recommend designation of Salute to the USA as a signature event, secure funding Sustained number of attendees of approximately 25,000 persons; High Net Promoter Score 5    Communication, Cooperation and Coordination Communication, cooperation and coordination are essential for the success of Avon’s community events. Key guidelines to meet these important, on-going actions include but are not limited to:  Engage the Avon community to ensure cultural offerings enrich quality of life.  Ensure that event investments are closely coordinated with community economic needs, with financial input solicited from Avon businesses and Vail Valley Partnership.  Annually provide data from MuniRevs and Innotopia hotel occupancy reports and Post- Event surveys to local businesses.  Outreach to the local business community and organizations to ensure that event investments have a positive impact and to welcome new ideas or initiatives for events.  Create an accurate calendar of special events to share with organizations, guests, community members, businesses and other governmental agencies.  Maintain coordination and communication among Town committees, including the Cultural, Arts, and Special Events Committee, Trails Committee, and with Vail Valley Partnership, Beaver Creek Resort Company and other Eagle County governmental agencies through staff meetings and announcements.  Disseminate to the public the Town’s primary points of contact for funding, administration, production, marketing, communication and facility use.  Continue to foster a culture that welcomes special events and provides a “can do” attitude of cooperation between town departments, event producers and local businesses.  Develop marketing recommendations to assist in successful participation.  Continue development of producer handbooks for facility use and resource selection. Funding, Application and Review Process In keeping with the public trust and economic realities, every event investment will be held to a high level of accountability. It is the responsibility of the Town staff to annually solicit special events and activities through a written Request for Proposals. The Cultural, Arts, and Special Events Committee will review and recommend funding and/or facility dates to the Avon Town Council for approval. Additionally, Cultural, Arts, and Special Events Committee members will attend events to determine event success. Staff will generate and present an annual report for Town Council with the input of Cultural, Arts, and Special Events Committee.     2 Annually evaluate special events as potential Signature Events; determine ideal amount of signature events in the calendar year and characteristics of events. Signature event criteria applied     TOWN COUNCIL REPORT  To:   Honorable Mayor Smith Hymes and Town Council  From:    Preston Neill, Acting Town Manager  Date:    February 12, 2019  Topic:    PUBLIC HEARING SECOND READING ORDINANCE 18‐20, ENACTING CHAPTER 2.40 – EVENTS  COMMISSION    ACTION BEFORE COUNCIL:  Council is asked to take action on Second Reading of Ordinance 18‐20 enacting Chapter 2.40 of Title 2 of  the Avon Municipal Code establishing an Events Commission.     PROPOSED MOTION:  “I move to approve [or deny] Second Reading of Ordinance 18‐20, thereby enacting Chapter 2.40 of Title 2  of the Avon Municipal Code establishing an Events Commission.”    SUMMARY:  At the December 11, 2018 Council meeting, Council continued the Public Hearing and Second Reading of  Ordinance 18‐20 to the February 12th Council meeting. Council expressed a desire to sit in a joint work  session with members of the Ad Hoc Special Events Committee prior to considering Second Reading of  Ordinance 18‐20.     At the Council Retreat held on January 30, 2019, Council expressed interest in putting in place an advisory  Cultural, Arts and Special Events Committee instead of an Events Commission that would be memorialized  in the Avon Municipal Code. A resolution approving a Cultural, Arts and Special Events Committee will be  addressed by Council immediately after this ordinance.      BACKGROUND:  At the Town Council work session held on September 21, 2016, direction was given to create an Ad Hoc  Special Events Committee (AHSEC). After a lengthy solicitation period, initial appointment of committee  membership took place on January 10, 2017. In November 2017, the AHSEC made a formal  recommendation to the Town Council that the AHSEC remain an Ad Hoc Committee for the 2018 calendar  year, with not less than seven members, and transition to a standing committee in February 2019. On  January 9, 2018, Council, by motion and vote, appointed the following persons to the AHSEC for an  appointment term of February 1, 2018 through January 31, 2019: Bobby Bank, Tom Butz, Pedro Campos,  Chris Cofelice, Mac Garnsey, Derek George, Timothy Haley, Lisa Mattis, Kathy Ryan and Ruth Stanley.  Subsequently, Mac Garnsey and Derek George resigned from the Committee, bringing current  membership to eight.     Ordinance 18‐20, which is attached for Council’s review and consideration, has been prepared to follow‐ through on direction from last January to establish a permanent Events Commission. With First Reading  on November 13th and Second Reading scheduled for December 11th, the Ordinance would take effect in  mid‐January. If approved, staff plans to post a solicitation for interested persons in mid‐December and  interviews and appointments would be scheduled for the second meeting in January or first meeting in  February.      The Avon Home Rule Charter requires that Commissions be established by ordinance, and expressly states  that no member of the Council can be on any permanent Commissions. This contemplates that any  Council involvement would be limited to observation of a public meeting and not participation. If Council  desires an alternative, it could form a Committee which is distinguishable from a Commission, would be  advisory only, could involve Council members and could be adopted by resolution. The AHSEC has  recommended, and staff concurs, that the Events Commission be made up of seven members. It is  Council’s prerogative to increase or decrease membership.     The attached Ordinance identifies that the term of office for each member shall be two years on an  overlapping tenure. During initial appointment of Event Commission membership, it will be necessary for  Council to appoint staggered terms. More specifically, initial appointment of membership will include  appointment of four members to two‐year terms and three members for one‐year terms. In addition, the  Ordinance details the following purposes and duties of the Events Commission:   To provide advice concerning the implementation of the Cultural Plan for the Town of Avon, as  may be amended from time to time;   To review, research and provide guidance and advice on event programming in the Town of Avon;   To review applications for Town funding allocated for events and provide recommendations to  the Avon Town Council, and to develop applications forms and procedures and review criteria  related to such funding applications;   To conduct surveys and prepare reports related to special events as appropriate and as directed  by Council;   To attend joint meetings with the Avon Town Council to review past, present and future events,  review and evaluate implementation of the Cultural Plan, review annual appropriations to  support events, and to review policies, procedures and practices for events and the EC; and,    To perform such other tasks related to special events in or near Avon as the Avon Town Council  may direct.    First Reading of Ordinance 18‐20 was approved during the November 13, 2018 Council meeting. Council  provided direction to amend the “Qualification of Members” section to read as follows:     “Registered electors residing in the County shall be eligible for appointment, provided  that at least four (4) members shall be registered electors of the Town or owners or  representatives of an existing business with a physical location and address in the Town of  Avon at the time of their appointment to the EC.  Persons having experience with events,  event site planning and design, or local business which is of particular value to the EC  should be preferred over persons who do not.”    ATTACHMENT:  Ordinance 18‐20      Ord. 18-20 Dec. 11, 2018 Second Reading Page 1 of 3 TOWN OF AVON, COLORADO ORDINANCE 18-20 ENACTING CHAPTER 2.40 – EVENTS COMMISSION WHEREAS, the Town of Avon, Colorado (the “Town”) is a home rule municipality and political subdivision of the State of Colorado (the “State”) organized and existing under a home rule charter (the “Charter”) pursuant to Article XX of the Constitution of the State; and WHEREAS, Section 11.2 of the Home Rule Charter for the Town of Avon allows the Town Council to create commissions by ordinance; and WHEREAS, the Town Council finds that the Ad Hoc Special Events Committee has provided valuable and important review, research and advisory functions with regard to special event planning and programming for the Avon community; and WHEREAS, the Town Council finds that special events promote the local community and character of Avon as well as promote the local economy and that the establishment of a permanent special events commission 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. 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. Enactment of Chapter 2.40. Chapter 2.40 Special Events Commission of the Avon Municipal Code is hereby enacted to read as attached as Exhibit A: Chapter 2.40 Special Events Commission. Section 3. Codification 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. Ord. 18-20 Dec. 11, 2018 Second Reading Page 2 of 3 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. Ord. 18-20 Dec. 11, 2018 Second Reading Page 3 of 3 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on November 13, 2018 and setting such public hearing for December 11, 2018 at the Council Chambers of the Avon Town Hall, located at 100 Mikaela Way, Avon, Colorado. BY: ATTEST: ____________________________ ___________________________ Jennie Fancher, Mayor Debbie Hoppe, Town Clerk ADOPTED ON SECOND AND FINAL READING on December 11, 2018. BY: ATTEST: ____________________________ ____________________________ Jennie Fancher, Mayor Debbie Hoppe, Town Clerk APPROVED AS TO FORM: ____________________________ Eric J. Heil, Town Attorney December 11, 2018 EXHIBIT A: CHAPTER 2.40 – EVENTS COMMISSION 2.40.010. Establishment, Purpose and Duties. There is hereby established an Events Commission (“EC”) of the Town. The purposes and duties of the Events Commission are as follows: (a) To provide advice concerning the implementation of the Cultural Plan for the Town of Avon, as may be amended from time to time; (b) To review, research and provide guidance and advice on event programming in the Town of Avon; (c) To review applications for Town funding allocated for events and provide recommendations to the Avon Town Council, and to develop applications forms and procedures and review criteria related to such funding applications; (d) To conduct surveys and prepare reports related to special events as appropriate and as directed by Council; (e) To attend joint meetings with the Avon Town Council to review past, present and future events, review and evaluate implementation of the Cultural Plan, review annual appropriations to support events, and to review policies, procedures and practices for events and the EC; and, (f) To perform such other tasks related to special events in or near Avon as the Avon Town Council may direct. 2.40.020. Membership. The EC shall be composed of seven (7) members appointed by Council. 2.40.030. Qualification of Members. Registered electors residing in the County shall be eligible for appointment, provided that at least four (4) members shall be registered electors of the Town or owners or representatives of an existing business with a physical location and address in the Town of Avon at the time of their appointment to the EC. Persons having experience with events, event site planning and design, or local business which is of particular value to the EC should be preferred over persons who do not. 2.40.040. Appointments. Appointments shall be made by Council in January, or as soon as thereafter as possible, after posting notice to solicit interested persons. Council shall appoint to the EC four (4) persons in odd numbered years and three (3) persons in even numbered years. 2.40.050. Quorum. Four (4) members of the EC shall constitute a quorum for the transaction of business, but in the absence of a quorum, a lesser number may adjourn any meeting to a later time or date. In the absence of all members, any staff member may adjourn any meeting to a later time or date. 2.40.060. Term. The term of office for a member shall be two (2) years on an overlapping tenure. A member of the EC who ceases to possess the qualifications for office that the member possessed at the time of appointment may be permitted by the Council to serve until the end of the appointed term, provided that the EC member continues to reside in the County. A member of the EC may be removed by Council pursuant to Subsection 2.04.080 Removal from Office, below. December 11, 2018 2.40.070. Vacancies. A vacancy on the EC shall occur whenever a member of the EC is removed by the Council, dies, becomes incapacitated and unable to perform the required duties for a period of ninety (90) days, resigns, ceases to meet the qualifications of the EC and is not permitted by Council to serve until the end of the existing term or is convicted of a felony. In the event a vacancy occurs, the Council shall appoint a successor to fill the vacancy and serve the remainder of the term of the former member after posting notice of such vacancy to solicit interest from qualified persons. 2.40.080. Removal from Office. Any member of the EC may be removed for misconduct, conduct unbecoming of a Town official, violation of the Town's code of ethics, inefficiency or more than two (2) unexcused absences within a twelve-month period. Prior to removal, Council shall conduct a hearing and shall provide written notice to the EC member stating the grounds for removal at least three (3) days prior to the hearing. 2.40.090. Officers. The EC shall select its own Chairperson and Vice-Chairperson. The Chair or, in the absence of the Chair, the Vice-Chair, shall be the presiding officer of its meeting. In the absence of both the Chair and the Vice-Chair from a meeting, the members present shall appoint a member to serve as Acting Chair at the meeting. 2.40.0100. Compensation. All members of the EC shall serve with compensation at a rate established annually by the Council and shall be reimbursed for all authorized personal expenses incurred while performing duties as a EC member. 2.40.0110. Staff. The Town Manager shall designate Town staff to serve as the staff of the EC and shall provide for the service of a recording secretary who shall act in the capacity of secretary for the EC for the purpose of receiving applications and other material for consideration for the EC. 2.40.0120. Rules and Regulations. The EC shall operate in accordance with its own rules of procedure as provided for in Section 11.2 of the Town Charter; provided, however, that the EC shall submit its proposed rules or any amendment to the rules to the Council, which by motion shall approve the rules or amendment and direct their adoption by the EC or disapprove the proposal with directions for revision and resubmission. The rules shall incorporate and comply with the Colorado Open Meetings Law, Colorado Open Records Act, and the Colorado Municipal Records Retention Schedule. The rules shall be filed with the Town Clerk and maintained in the records of the Town and shall be subject to public inspection. The EC may provide for certain variances, exceptions and exemptions from the requirements of its rules and regulations. 2.40.0130. Meetings. The EC shall meet in accordance with the rules of procedure governing the EC and otherwise upon the call of the Chairperson or, in the absence of the Chair, by the Vice- Chairperson. All meetings shall be held at the offices of the Town, unless otherwise specified, with adequate notice given to all interested parties. 2.40.0140. Appropriation Authority. The EC shall not have authority to appropriate or spend Town of Avon funds. The EC may provide recommendations to the Events Manager, Town Manager and/or Avon Town Council with regard to the annual budget for special events, expenditures related to the annual applications in response to the special events request for proposal, Town staff support for special events and capital improvements related to events.     TOWN COUNCIL REPORT  To:   Honorable Mayor Smith Hymes and Town Council  From:    Preston Neill, Acting Town Manager  Date:    February 12, 2019  Topic:    RESOLUTION 19‐05 APPROVING A CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE    ACTION BEFORE COUNCIL:  Council is asked to take action on Resolution 19‐05 approving a Cultural, Arts and Special Events  Committee.    PROPOSED MOTION:  “I move to approve [with or without modifications] Resolution 19‐05 approving a Cultural, Arts and  Special Events Committee.”    SUMMARY:  At the Town Council work session held on September 21, 2016, direction was given to create an Ad Hoc  Special Events Committee (AHSEC). After a lengthy solicitation period, initial appointment of committee  membership took place on January 10, 2017. In November 2017, the AHSEC made a formal  recommendation to the Town Council that the AHSEC remain an Ad Hoc Committee for the 2018 calendar  year, with not less than seven members, and transition to a standing committee in February 2019. On  January 9, 2018, Council, by motion and vote, appointed the following persons to the AHSEC for an  appointment term of February 1, 2018 through January 31, 2019: Bobby Bank, Tom Butz, Pedro Campos,  Chris Cofelice, Mac Garnsey, Derek George, Timothy Haley, Lisa Mattis, Kathy Ryan and Ruth Stanley.  Subsequently, Mac Garnsey and Derek George resigned from the Committee, bringing current  membership to eight.     Resolution 19‐05, which is attached for Council’s review and consideration, has been prepared to follow‐ through on direction from the Council Retreat held on January 30, 2019. At that meeting, Council  expressed interest in putting in place an advisory Cultural, Arts and Special Events Committee to take the  place of the Ad Hoc Special Events Committee. If approved, staff plans to post a solicitation for interested  persons in late February. Interviews and appointments would be scheduled for the first or second  meeting in April.     Based on how Resolution 19‐05 is currently written, the Cultural, Arts and Special Events Committed shall  be composed of seven (7) voting members and two (2) ex‐officio non‐voting Council members appointed  by Council. It is Council’s prerogative to increase or decrease membership.    The attached resolution identifies that the term of office for each member shall be two years on an  overlapping tenure. During initial appointment of the Cultural, Arts and Special Events Committee  membership, it will be necessary for Council to appoint staggered terms. More specifically, initial  appointment of membership will include appointment of four members to two‐year terms and three  members for one‐year terms. In addition, the resolution details the following purposes and duties of the  Cultural, Arts and Special Events Committee:   To provide advice concerning the implementation of the Cultural Plan for the Town of Avon, as  may be amended from time to time;   To review, research and provide guidance and advice on event programming in the Town of Avon;   To review applications for Town funding allocated for events and provide recommendations to  the Avon Town Council, and to develop applications forms and procedures and review criteria  related to such funding applications;   To conduct surveys and prepare reports related to special events as appropriate and as directed  by Council;   To attend joint meetings with the Avon Town Council to review past, present and future events,  review and evaluate implementation of the Cultural Plan, review annual appropriations to  support events, and to review policies, procedures and practices for events and the CASE; and,    To perform such other tasks related to special events in or near Avon as the Avon Town Council  may direct.      ATTACHMENT:  Resolution 19‐05      RESOLUTION 19-05 APPROVING A CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE WHEREAS, the Town of Avon, Colorado (the “Town”) is a home rule municipality and political subdivision of the State of Colorado (the “State”) organized and existing under a home rule charter (the “Charter”) pursuant to Article XX of the Constitution of the State; and WHEREAS, the Town Council finds that the Ad Hoc Special Events Committee has provided valuable and important review, research and advisory functions with regard to special event planning and programming for the Avon community and desires to create a permanent standing advisory committee to continue with these efforts; and WHEREAS, Section 11.2 of the Charter states that Council may create advisory boards by resolution; and WHEREAS, the Avon Town Council finds that special events promote the local community and character of Avon as well as promote the local economy and that the establishment of a permanent special events commission will promote the health, safety and general welfare of the Avon community; and NOW THEREFORE, the Avon Town Council, hereby RESOLVES to create the Cultural, Arts and Special Events Committee as set forth in Exhibit A: Cultural, Arts and Special Events Committee Authority and Procedures, attached hereto. ADOPTED February 12, 2019 by the AVON TOWN COUNCIL By:_______________________________ Attest:_________________________________ Sarah Smith Hymes, Mayor Brenda Torres, Acting Town Clerk EXHIBIT A: CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE AUTHORITY AND PROCEDURES 1. Establishment, Purpose and Duties. There is hereby established the Cultural, Arts and Special Events Committee (“CASE”) of the Town. The purposes and duties of CASE are as follows: (a) To provide advice concerning the implementation of the Cultural Plan for the Town of Avon, as may be amended from time to time; (b) To review, research and provide guidance and advice on event programming in the Town of Avon; (c) To review applications for Town funding allocated for events and provide recommendations to the Avon Town Council, and to develop applications forms and procedures and review criteria related to such funding applications; (d) To conduct surveys and prepare reports related to special events as appropriate and as directed by Council; (e) To attend joint meetings with the Avon Town Council to review past, present and future events, review and evaluate implementation of the Cultural Plan, review annual appropriations to support events, and to review policies, procedures and practices for events and the CASE; and, (f) To perform such other tasks related to special events in or near Avon as the Avon Town Council may direct. 2. Membership. The CASE shall be composed of seven (7) voting members and two (2) ex-officio non-voting Council members appointed by Council. 3. Qualification of Voting Members. Registered electors residing in the County shall be eligible for appointment as Voting Members, provided that at least four (4) Voting Members shall be registered electors of the Town or owners or representatives of an existing business with a physical location and address in the Town of Avon at the time of their appointment to the CASE. Persons having experience with events, event site planning and design, culture, arts or local business which is of particular value to the CASE should be preferred over persons who do not. Appointments shall be made by Council in February, or as soon as thereafter as possible, after posting notice to solicit interested persons. Council shall appoint to the CASE four (4) persons in odd numbered years and three (3) persons in even numbered years. 4. Qualification of Ex-Officio Non-Voting Members. Council members shall be eligible for appointment to the two (2) ex-officio non-voting. Appointments shall be made by Council in January of odd numbered years after the election and seating of Council members, or as soon thereafter as possible, and shall be made at the same time as appointments of Council members to other committees. The term of office for Ex-Officio Non-Voting Member shall be two (2) years until the annual appointment of Council members to committees. Ex-Officio Non-Voting Member shall have the equal right to equal participate at CASE meetings, right to receive all CASE materials and notices of CASE meetings, but shall not have any right to vote on recommendations, advisory matters, or other actions of CASE. 5. Quorum. Four (4) Voting Members of the CASE shall constitute a quorum for the transaction of business, but in the absence of a quorum, a lesser number may adjourn any meeting to a later time or date. In the absence of all members, any staff member may adjourn any meeting to a later time or date. 6. Term. The term of office for a Voting Member shall be two (2) years on an overlapping tenure. A member of CASE who ceases to possess the qualifications for office that the member possessed at the time of appointment may be permitted by the Council to serve until the end of the appointed term, provided that the CASE member continues to reside in the County. A member of the CASE may be removed by Council pursuant to Section 8 Removal from Office, below. 7. Vacancies. A vacancy on the CASE shall occur whenever a member of the CASE is removed by the Council, dies, becomes incapacitated and unable to perform the required duties for a period of ninety (90) days, resigns, ceases to meet the qualifications of the CASE and is not permitted by Council to serve until the end of the existing term or is convicted of a felony. In the event a vacancy occurs, the Council shall appoint a successor to fill the vacancy and serve the remainder of the term of the former member after posting notice of such vacancy to solicit interest from qualified persons. 8. Removal from Office. Any member of the CASE may be removed for misconduct, conduct unbecoming of a Town official, violation of the Town Code of Ethics, inefficiency or more than two (2) unexcused absences within a twelve-month period. Prior to removal, Council shall conduct a hearing and shall provide written notice to the CASE member stating the grounds for removal at least three (3) days prior to the hearing. 9. Officers. The CASE shall select its own Chairperson and Vice-Chairperson. The Chair or, in the absence of the Chair, the Vice-Chair, shall be the presiding officer of its meeting. In the absence of both the Chair and the Vice-Chair from a meeting, the members present shall appoint a member to serve as Acting Chair at the meeting. 10. Compensation. All members of the CASE shall serve with compensation at a rate established annually by the Council and shall be reimbursed for all authorized personal expenses incurred while performing duties as a CASE member. 11. Staff. The Town Manager shall designate Town staff to serve as the staff of the CASE and shall provide for the service of a recording secretary who shall act in the capacity of secretary for the CASE for the purpose of receiving applications and other material for consideration for the CASE. 12. Rules and Regulations. The CASE shall operate in accordance with its own rules of procedure as provided for in Section 11.2 of the Town Charter; provided, however, that the CASE shall submit its proposed rules or any amendment to the rules to the Council, which by motion shall approve the rules or amendment and direct their adoption by the CASE or disapprove the proposal with directions for revision and resubmission. The rules shall incorporate and comply with the Colorado Open Meetings Law, Colorado Open Records Act, and the Colorado Municipal Records Retention Schedule. The rules shall be filed with the Town Clerk and maintained in the records of the Town and shall be subject to public inspection. The CASE may provide for certain variances, exceptions and exemptions from the requirements of its rules and regulations. 13. Meetings. The CASE shall meet in accordance with the rules of procedure governing the CASE and otherwise upon the call of the Chairperson or, in the absence of the Chair, by the Vice-Chairperson. All meetings shall be held at the offices of the Town, unless otherwise specified, with adequate notice given to all interested parties. 14. Appropriation Authority. The CASE shall not have authority to appropriate or spend Town of Avon funds. The CASE may provide recommendations to the Events Manager, Town Manager and/or Avon Town Council with regard to the annual budget for special events, expenditures related to the annual applications in response to the special events request for proposal, Town staff support for special events and capital improvements related to events. Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com HEIL LAW & PLANNING, LLC MEMORANDUM TO: Honorable Mayor Smith Hymes and Town Council members FROM: Eric J. Heil, Town Attorney RE: Ordinance No. 19-01 Community Housing Incentives DATE: February 7, 2019 SUMMARY: Council adopted the Town of Avon Community Housing Plan on December 13, 2018 (“Housing Plan”). The Housing Plan recommended that Avon formalize a fee waiver program for worker housing. Council had previously expressed interest in revisiting the Real Property Transfer Tax (“RETT”) exemption and considering an increase in the exemption for primary residences for the purpose of promoting community housing. The tax and fee credits, exemptions and waivers (“Community Housing Incentives”) are discussed first, then proposed amendments and options to the primary residence RETT exemption are discussed. REQUESTED COUNCIL ACTION: Ordinance No. 19-01 is presented for consideration on first reading; however, the ordinance presents many technical financial concepts and budget implications. Currently, there are no known pending or imminent housing projects. Council may desire to treat this action item as a work session for initial discussion and then continue first reading to the next Council meeting to allow additional time for consideration, language amendments, or gathering additional information. COMMUNITY HOUSING INCENTIVES: Council has general authority to provide a credit, exemption or waiver of taxes and fees upon the finding of a public benefit. Such action is similar to an appropriation, which is a legislative act. The Colorado Constitution prohibits making “gifts” to corporations or individuals; therefore, any appropriation or other action to provide a financial benefit to a person or entity must include a finding of “public benefit”. Credits, exemptions and waivers for community housing projects are a form of financial subsidy which impacts the Town’s budget like an appropriation or expenditure of existing funds. New Chapter 3.14 – Community Housing Incentives. In order to “formalize” and appropriately implement tax and fee credits, exemptions and waivers, a new Chapter 3.14 is proposed in the Avon Municipal Code (“AMC”). The Finance Department strongly prefers to avoid rebates, refunds and reimbursements due to the additional administrative and accounting work, therefore, the form of financial subsidy is proposed as a tax “credit” for sales tax, a tax “exemption” for real property transfer taxes, and “waivers” for development code fees, tap fees, and building permit fees. Development Code applications may require a “refund” due to the timing because applications fees must be submitted as part of a complete application and Council would not likely consider and approve a resolution to grant Community Housing Incentives until a community housing project was completely approved. The following key elements are included in AMC Chapter 3.14: “Community Housing” is defined to mean housing restricted to (1) long-term residential use, (2) as a primary residence, (3) by qualified persons, (4) that is subject to a deed restriction approved by Town, and (5) is enforceable by the Town. Approval by Resolution: Council approval of Community Housing Incentives by resolution is required because each housing project is unique. A resolution only requires one meeting to approve and takes effect immediately. AMC Section 3.14.030 lists the minimum elements of such a resolution as follows: Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 2 of 7 (1) The Community Housing project shall be defined by location, type of residential units, and quantity of residential units; (2) The taxes and/or fees that are subject to a credit, exemption and/or waiver shall be defined, and may be apportioned for a development project that includes both community housing and non-community housing elements; (3) The form of the deed restriction that shall protect and maintain such Community Housing for the benefit of the Town shall be included with the resolution and the resolution shall accept or authorize the acceptance and execution of deed restriction; (4) The resolution shall include a finding that the tax and/or fee credits, exemptions and/or waivers are necessary to promote community housing that meets a current or projected housing need for the Avon community; and, (5) The resolution shall include a finding of public benefit for providing such tax and/or fee credit, exemption and/or waiver. AMC Chapter 3.14 allows for credits, exemptions and waivers of (1) sales tax on building materials and fixtures, (2) real property transfer taxes, (3) development code plan review fees, (4) Avon water tap fees, and (5) building permit fees. Each of these taxes and fees are discussed as follows: Sales Tax: The Town charges 4% on any building materials which are delivered in Town and on fixtures which are purchased outside of Town and installed in buildings. AMC Chapter 3.08 – Sales Tax would be amended by Ordinance 19-01 to enact the following new section: “3.08.036 – Tax credit for community housing. Notwithstanding any other provision of this Chapter, there shall be granted a sales tax credit to each person owing tax on the sale of building materials and fixtures used in a community housing project provided that such sales tax credit is approved by Council by resolution in accordance with Chapter 3.14. Neither the ability of the Town to grant this tax credit nor the repeal or termination of this tax credit shall constitute a tax increase, the imposition of a new tax or a tax policy change.” Real Property Transfer Tax: AMC Chapter 3.12 currently includes an exemption that allows the Town Manager to provide an exemption for RETT for “low and moderate income persons;” see AMC Section 3.12.060(14). Town Manager approval of a RETT exemption for new projects is likely not appropriate because “low and moderate income persons” is not defined and approval of any agreements, deed restrictions, covenants or declarations for the benefit of Town and to be enforceable by Town should be approved by Council. Ordinance 19-01 would revise this exemption to require Council to approve a RETT exemption for a new Community Housing project and would cross reference the procedure and requirements in AMC Chapter 3.14. The revisions are shown as follows: 3.12.060 - Exemptions. Unless the method of transfer is contrived for the purpose of evading the real property transfer tax imposed by this Chapter, the real property transfer tax shall not apply to the situations described below: Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 3 of 7 (14) Any sale or conveyance of real property or improvements for the purpose of constructing or providing low or moderately priced housing units for sale or lease to low or moderate income personsor otherwise providing Community Housing as defined in Chapter 3.14; provided, that the parties to the transaction shall apply to the Town Manager Council for the exemption prior to the occurrence of the transaction from which exemption is sought in accordance with Chapter 3.14 Community Housing Incentives and that the property shall be subject to a deed restriction that protects and maintains the Community Housing for the benefit of the Town, and the parties shall agree to appropriately restrict the future use of the property to low and moderately priced housing units by recorded agreement, deed restriction, covenants, declarations or similar instruments as may be required by the Town Manager; Development Code Application Fees: Ordinance 19-01 authorizes a waiver or refund of Development Code application fees. These fees would likely involve site plan and design review at a minimum or could include applications for subdivision, re-zoning or planned unit development depending upon the project. This is the only fee that contemplates a possible refund due to the timing that Development Application review fees must be paid when submitting a complete Development Application. Depending upon the nature of the Community Housing project, this fee waiver could range from $1,000 to $10,000. Proposed AMC Section 3.14.060 specifically provides that the cost for third party consultants and professionals, studies and reports are not included in the Development Application review fees that can be waived, refunded or reimbursed under AMC Chapter 3.14. Avon Water Tap Fees: Avon imposes a water tap fee on new residential construction in the amount of $4,000 per residence in AMC Chapter 13.08, Appendix 13-A of the Avon Municipal Code. Proposed AMC Section 3.14.060 allows for water taps fees to be credited towards the cost of water line upgrades and extensions that may be required for the project and which would typically be paid for by the developer. The waiver of all water tap fees, deferment of water tap fee payments and a combination of credit, waivers and deferment is also allowed. Additional research is continuing with regard to the waiver of water tap fees because many communities are reluctant to waive these fees. Building Permit Fees: Proposed Section 3.14.080 would allow a waiver of plan review and building permit fees. Fire District and Emergency Services Impact Fee, School Site Dedications, and Park Land Dedications: Ordinance 19-01 does not propose including waivers for the following: Fire District Impact Fees: Chapter 3.40 – Impact Fees, which are required to be transferred to the Eagle River Fire Protection District. School Site Dedications: Section 7.32.080 – cash-in-lieu is held by Town in a separate School Facility Capital Improvements Fund and the use is limited to capital improvements of educational facilities or acquisition of school site lands that serve the Avon community. Parkland dedications: Section 7.32.090 - cash-in-lieu is held by Town in a separate Parks Capital Improvements Funds and and the use is limited to capital improvements of parks or acquisition of park lands that serve the Avon community Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 4 of 7 EXAMPLE OF TAX AND FEE RELIEF FOR COMMUNITY HOUSING: The following example is presented to illustrate the tax and fee relief and is based on a 10 unit townhome project, each unit is 2 bedrooms and 1,000 square feet, total square footage is 10,000 square feet, and construction on a 1 acre vacant land parcel purchased for $2,000,000. Sales Tax (Based on $300 per sq.ft. construction cost and estimate that 50% of construction cost materials and 50% is labor. 10,000 sq.ft. times $300 per sq.ft. x 50% x 4% sales tax.) $60,000.00 Real Property Transfer Tax (Based on $2 million vacant land purchase price times 2% RETT) $40,000.00 Development Application Fees (estimated, design review only) $1,500.00 Avon Water Tap Fees (2 inch, per Appendix 13-A) $41,300.00 Building Permit Fees (plan review and permit) $39,280.00 TOTAL TAX AND FEE RELIEF: $182,080.00 TAX AND FEE RELIEF PER UNIT: $18,208.00 PRIMARY RESIDENCE RETT EXEMPTION: Several options and concepts are provided for Council’s consideration with regard to any change to the RETT exemption for purchasers of a primary residence. Section 3.12.020 – Definitions of the Real Property Transfer Tax Chapter defines Eagle County Employee and Primary Residence as follows: Eagle County employee means an employee working in Eagle County who works an average of at least thirty (30) hours per week on an annual basis or earns seventy-five percent (75%) of his or her income and earnings by working in Eagle County; or a retired individual, sixty (60) years or older, who has worked a minimum of five (5) years in Eagle County for an average of at least thirty (30) hours per week on an annual basis. Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 5 of 7 Primary residence means the occupation and use of a residence as the primary residence, which shall be determined by the Town Manager by taking into account the following circumstances: voter registration in Avon, Colorado (or signing an affidavit stating that the applicant is not registered to vote in any other place); stated address on Colorado driver's license or Colorado identification card; stated address on motor vehicle registration; ownership or use of other residences not situated in Avon, Colorado; and stated residence for income and tax purposes. Occupation and use of a residence as a primary residence must occur within thirty (30) days of transfer of the real property, provided that the Town Manager may grant an extension of an additional ninety (90) days if extenuating circumstances are found to exist in the Town Manager's discretion and provided that such extension request is included with the applicant's application for exemption. The Town of Avon receives and approves approximately 65 RETT exemptions applications for primary residence. [2016 = 70; 2017 = 74; 2018 = 51]. The primary residence exemption is for the first $160,000 in consideration paid which translates into $3,200 in RETT relief for the buyer. On average, this exemption results in $208,000 in RETT annually that is exempted for primary residence purchases. Council previously adopted AMC Section 3.12.060(15) in 2002 by Ordinance No. 02-14, which provided a one-time exemption of $160,000 for the first purchase of a primary residence in Avon. Then Council adopted AMC Section 3.12.060(16) in 2007 by Ordinance No. 07-17 to allow an exemption for primary residence for subsequent purchases in Avon with the limitation that this subsequent exemption was only available to a person who met the definition of an “Eagle County Employee”. This change was intended to support working full-time residents who currently owned a primary residence in Avon but desired to purchase a larger residence to reflect residential needs and preferences during various life stages. Options for Primary Residence RETT Exemption Changes: 1. Increase the $160,000 primary residence exemption in AMC Sections 3.12.060(15) and (16). This is a simple option that is very easy to adopt and administer. This exemption would be available to all primary residence purchasers regardless of the sales prices of the residence. If Council desires this option, then Ordinance No. 19-01 can be amended to simply amend AMC Sections 3.12.060(15) and (16) to increase the $160,000 exemption amount. 2. Increase the $160,000 primary residence exemption but (1) limit eligibility for the additional exemption to residences that do not exceed a maximum affordable prices based on the Area Median Income for Eagle County (e.g. residences that do not exceed $640,000 to $960,000), and (2) limit the total RETT exemption for primary residence to one half (50%) of the sales price for the residence. The existing RETT exemptions for primary residence state that the exemption only applies to the portion paid by a buyer and nearly all transactions split the RETT 50/50 between buyer and seller. 3. Do not increase the primary residence exemption and in the alternative amend AMC Section 3.12.110 – Allocation of Revenue to pledge a portion of annual RETT revenues to the Avon Community Housing Fund. This option would advance a goal in the Housing Plan to identify and implement a dedicated funding source for community housing. Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 6 of 7 Pros and Cons of Options: Options 1 and 2 would directly reduce the costs for buyer to purchase a residence in Avon as a primary residence. The real estate transfer tax is split 50/50 between buyer and seller for a strong majority of real estate transfers (anecdotally 95% of transactions). The buyer is required to pay the buyer’s portion of the RETT at closing in addition to the down payment and other closing costs. An increase in the primary residence exemption would directly reduce the buyer’s required cash at closing which will improve buyer’s ability to purchase a residence. An increase of the primary residence exemption from $160K to $320K would save a buyer a total of $6,400 at closing. An increase of the primary residence exemption from $160K to $480K would save a buyer a total $9,600 at closing. Option 2 proposes a limitation on an increased, additional primary residence RETT exemption to those more in need and would exclude purchases of residences greater than ($640,000 to $960,000) on the basis that the purchase of a residence in that price range does not warrant a public subsidy to promote Community Housing. In addition, Option 2 limits the total exemption to one half of the consideration paid for a residence because the existing primary residence exemptions contemplate that the exemption should only apply to the RETT paid by buyer and the obligation to pay RETT is split 50/50 on most transactions. Option 3 contemplates that the amount of subsidy associated with increasing the primary residence exemption may be more impactful and beneficial to Avon’s community housing efforts if it were dedicated to a housing fund. Other Options: Council may desire other options, or hybrid options. For example, increasing the primary residence exemption from $160K to $320K up to a maximum residential sales prices of $640K and dedicating a small percentage (e.g. 7%) or set amount (e.g. $100K) per year of RETT to the Avon Housing Fund, or dedicating only a portion of RETT to community housing when it exceeds a minimum amount in any given year. The downside of a hybrid approach is that the impact may be diluted across several housing efforts. Impacts to RETT and Capital Improvements: The RETT generates an average of $3.1 million in revenues per year. An increase in the primary residence RETT exemption from $160,000 to $320,000 can be expected to reduce RETT revenues by $208,000 per year. An increase from $160,000 to $480,000 can be expected to reduce RETT revenues by $416,000 per year. In the alternative, Council could amend AMC Section 3.12.110 – Allocation of Revenue to dedicate a certain percentage or dedicate a specific dollar amount to the Avon Community Housing Fund. A 5% dedication would result in approximately $155,000 per year in revenues for Community Housing. A 10% dedication would result in approximately $310,000 per year in revenues for Community Housing. Any increase to the primary residence RETT exemption or any dedication to the Avon Housing Fund will have an impact on the available RETT revenues and capital improvements project planning in the future. EXEMPTION FOR DEED RESTRICTED UNITS: Ordinance 19-01 includes a clean-up to expressly allow an exemption for transfers of deed restricted housing units with a new Section 3.12.060(19). This has been the policy and practice of Avon for a long time and has been approved under 3.12.060(14) which authorizes the Town Manager to provide an exemption for the purpose of providing low or moderately priced housing units. Section 3.12.060(19) would read: Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: February 7, 2019 Page 7 of 7 “3.12.060(19) Transfers of Community Housing to qualified purchasers provided that the deed restriction that protections and maintains such Community Housing for the benefit of the Town is in compliance with all terms and conditions.” SAMPLE MOTIONS: [continuance] “I move to continue consideration of first reading of Ordinance No. 19-01 and provide direction to staff to [make changes, research more information]” [approval on first reading] “I move to approve first reading of Ordinance No. 19-01 Amending Chapter 3.12 Real Propery Transfer Tax and Enacting Chapter 3.14 Community Housing Tax and Fee Credits, Exemptions and Waivers.” Thank you, Eric ATTACHMENT A: Ordinance No. 19-01 ATTACHMENT B: Appendix C – Area Median Income for Eagle County 2018 Ord. 19-01 February 12, 2019 FIRST READING Page 1 of 8 TOWN OF AVON, COLORADO ORDINANCE NO. 19-01 AMENDING CHAPTER 3.08 SALES TAX; CHAPTER 3.12 REAL PROPERTY TRANSFER TAX; ENACTING CHAPTER 3.14 COMMUNITY HOUSING INCENTIVES; AND AMENDING CHAPTER 13.08 PUBLIC SERVICES OF THE AVON MUNICIPAL CODE WHEREAS, the Town of Avon, Colorado (the “Town”) is a home rule municipality and political subdivision of the State of Colorado (the “State”) organized and existing under a home rule charter (the “Charter”) pursuant to Article XX of the Constitution of the State; and WHEREAS, pursuant to C.R.S. §31-15-103 and §31-15-104, and pursuant to the home rule powers of the Town of Avon (“Town”), the Town Council has the power to make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of its inhabitants; and WHEREAS, Council adopted the Town of Avon Community Housing Plan on December 13, 2018, which included a policy to “formalize a fee waiver/reimbursement process” and which included an Appendix A: Avon Community Housing Plan – Work Plan that contemplated formalizing a Fee Waiver Program; and WHEREAS, Council adopted the Town of Avon Comprehensive Plan which includes Policy E.1.3: which states in part, “Provide attainable housing through alternative means, including . . . waiver of development and building fees, . . .”; and WHEREAS, the Avon Town Council finds that amendments to the Avon Municipal Code 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. BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: ATTACHMENT A: Ordinance No. 19-01 Ord. 19-01 February 12, 2019 FIRST READING Page 2 of 8 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. Enactment of Section 3.08.036 – Tax credit for community housing. A new Section 3.08.036 of the Avon Municipal Code is hereby enacted to read as follows: “3.08.036 – Tax credit for community housing. Notwithstanding any other provision of this Chapter, there shall be granted a sales tax credit to each person owing tax on the sale of building materials and fixtures used in a community housing project provided that such sales tax credit is approved by Council by resolution in accordance with Chapter 3.14. Neither the ability of the Town to grant this tax credit nor the repeal or termination of this tax credit shall constitute a tax increase, the imposition of a new tax or a tax policy change.” Section 3. Amendment of Section 3.12.060 – Exemptions. Section 3.12.060 of the Avon Municipal Code is hereby amended to recodify Section 3.12.060(17) as Section 3.12.060(14); to recodify and amend Section 3.12.060(14) to Section 3.12.060(15) to read as set forth in this section; to recodify Section 3.12.060(15) to Section 3.12.060 (17); to recodify Section 3.12.060(16) to Section 3.12.060(18); to enact a new Section 3.12.060(16); and to enact a new Section 3.12.060(19); such that Sections 3.12.060(14) through (19) shall read as follows: “3.12.060 (14) The subsequent transfer of a residence involved in a "tax free" or "tax deferred" trade under the Internal Revenue Code wherein the interim owner acquires property for the sole purpose of reselling that property as part of a qualified exchange and the property is resold within twenty-four (24) months after the first transfer. In these cases, the first transfer of title is subject to the real property transfer tax and the subsequent transfer will only be exempt as long as a transfer tax has been paid in connection with the first transfer of such residence in such exchange. In the event the consideration for the subsequent transfer is greater than the consideration for the first transfer, transfer tax shall be due on such increased amount of consideration. (15) Any sale or conveyance of real property or improvements for the purpose of constructing or otherwise providing Community Housing as defined in Chapter 3.14; provided, that the parties to the transaction shall apply to the Town Council for the exemption prior to the occurrence of the transaction from which exemption is sought in accordance with Chapter 3.14 Community Housing Incentives and that the property shall be subject to a deed restriction that protects and maintains the Community Housing for the benefit of the Town; (16) Transfers of Community Housing subject to a deed restriction to qualified purchasers provided that the deed restriction that protects and maintains such Community Housing for the benefit of the Town is in compliance with all terms and conditions. (17) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided the following conditions are met: a. The same applicant has not previously received an exemption pursuant to this subsection; ATTACHMENT A: Ordinance No. 19-01 Ord. 19-01 February 12, 2019 FIRST READING Page 3 of 8 b. An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1. An affidavit that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co-purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence within one (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record. c. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction. (18) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided that the following conditions are met: a. The applicant previously received a primary residence exemption pursuant to Section 3.12.060(17) and the applicant has satisfied the conditions of subsection (17)b.1. and 2. of Section 3.12.060; and b. An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1. An affidavit that the applicant's current primary residence used to satisfy the requirements of Section 3.12.060(17) is within the town; that the applicant meets the definition of an Eagle County employee; that the real property is being purchased for use as a new primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co-purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event that the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence or shall cease to meet the definition of an Eagle County employee within one (1) year after closing and granting to the town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record; and ATTACHMENT A: Ordinance No. 19-01 Ord. 19-01 February 12, 2019 FIRST READING Page 4 of 8 c. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction. (19) The next [one hundred sixty thousand dollars ($160,000.00) or three hundred twenty thousand dollars ($320,000.00)] of the consideration paid after the first one hundred and sixty thousand dollars paid that is exempt pursuant to either Section 3.12.060(17) or (18) above for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided the following conditions are met: a. An application for exemption is filed with the Finance Department, which application is accompanied by: 1. An affidavit that the applicant meets the definition of Eagle County employee; that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co-purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence within one (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record; and 3. The total consideration paid for the residence does not exceed [six hundred forty thousand dollars ($640,000.00) or nine hundred sixty thousand dollars ($960,000.00)]; and, 4. The total additional consideration that is exempt pursuant to this Section 3.12.060(19) and either Section 3.12.060(17) or (18) does not exceed one half of the entire consideration paid for the transfer. b. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction.” Section 4. Enactment of Section 3.14 – Community Housing Incentives. Section 3.14 of the Avon Municipal Code is hereby enacted to read as follows: “3.14 Community Housing Incentives. 3.14.010. Purpose. Council may elect to promote Community Housing through the use of Community Housing Incentives, including the credit, exemption or waiver of taxes or fees otherwise applicable to residential development. 3.14.020. Definitions ATTACHMENT A: Ordinance No. 19-01 Ord. 19-01 February 12, 2019 FIRST READING Page 5 of 8 Community Housing means residential housing which is subject to a deed restriction that limits use to long-term residential use as a primary residence by qualified persons and which deed restriction may impose other restrictions and limitations and may include terms deemed appropriate in the Town’s discretion, including but not limited to controls on the resale price of such residential property, and which deed restriction is enforceable by the Town. Community Housing Incentive means a tax and/or fee credit, exemption, waiver or refund approved in accordance with this Chapter 3.14. 3.14.030. Approval by Resolution. Any credit, exemption or waiver of taxes or fees shall be approved by Council by resolution. The resolution shall include the following minimum elements: (1) The Community Housing project shall be defined by location, type of residential units, and quantity of residential units; (2) The taxes and/or fees that are subject to a credit, exemption and/or waiver shall be defined, and may be apportioned for development project that includes both community housing and non-community housing elements; (3) The form of the deed restriction that shall protect and maintain such Community Housing for the benefit of the Town shall be included with the resolution and the resolution shall accept or authorize the acceptance and execution of deed restriction; (4) The resolution shall include a finding that the tax and/or fee credits, exemptions and/or waivers are necessary to promote community housing that meets a current or projected housing need for the Aovn community; and, (5) The resolution shall include a finding of public benefit for providing such tax and/or fee credit, exemption and/or waiver. 3.14.040. Sales Tax. Council may provide a tax credit for the amount of sales tax imposed upon building materials and fixtures delivered, installed and/or consumed in Community Housing projects. Council may determine to provide a partial tax credit as determined appropriate by Council for buildings with mixed Community Housing and commercial uses and/or residential projects with mixed Community Housing and free-market dwelling units. Neither the ability of the Town to grant the this tax credit nor the termination of this tax credit shall constitute a tax increase, the imposition of a new tax or a tax policy change. 3.14.050. Real Property Transfer Tax. Council may provide an exemption for the real property transfer tax on property that is conveyed to construct or otherwise provide a Community Housing project. Council may determine to provide a partial tax credit as determined appropriate by Council for buildings with mixed Community Housing and commercial uses and/or residential projects with mixed Community Housing and free-market dwelling units. ATTACHMENT A: Ordinance No. 19-01 Ord. 19-01 February 12, 2019 FIRST READING Page 6 of 8 3.14.060. Development Code Fees. Council may provide a waiver, refund or reimbursement of Development Application review fees that are required pursuant to Title 7 Avon Development Code. The cost for third party consultants and professionals, studies and reports are not included in the Development Application review fees that can be waived, refunded or reimbursed under this Chapter 3.14. 3.14.070. Avon Water Tap Fees. Council may allow the tap fees to be credited towards the cost of required water line upgrades or extensions, may allow a waiver of tap fees, may allow deferment of water tap fee payment, or may allow a combination of credit, waiver and/or deferment of tap fees that are required pursuant to Chapter 13.08 – Rates and Charges of Title 13 – Public Services. 3.14.080. Building Permit fees. Council may provide a waiver of Plan Review and Building Permit fees that are required pursuant to Title 15 Building Code.” Section 5. Amendment of Section 13.08.030 – Classification of customers. Section 13.08.030 of the Avon Municipal Code is hereby amended to enact a new sub-section (4) to read as follows: “(4) Community Housing. Residential use which meets the definition of community housing set forth in Section 3.14.020.” Section 6. Enactment of Section 13.08.045 – Tap fee waiver for Community Housing. A new Section 13.08.045 of the Avon Municipal Code is hereby enacted to read as follows: “13.08.045 – Tap fee waiver for community housing. Town Council may waive tap fees for residential units in a community housing project pursuant to the procedures set forth in Chapter 3.14.” Section 7. Codification 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 8. Interpretation. This Ordinance shall be interpreted and applied to comply in all respects with Article X, Section 20, of the Colorado Constitution, in its application to any person or circumstance and no part of this Ordinance shall be interpreted or applied to constitute a tax policy change that would require voter approval. Section 9. Non-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 or held to be in conflict with Article X, Section 20, of the Colorado Constitution, such invalidity or conflict shall invalidate this Ordinance in its entirety. 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 ATTACHMENT A: Ordinance No. 19-01 Ord. 19-01 February 12, 2019 FIRST READING Page 7 of 8 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 10. 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 11. 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 12. 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 13. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. [SIGNATURE PAGE FOLLOWS] ATTACHMENT A: Ordinance No. 19-01 Ord. 19-01 February 12, 2019 FIRST READING Page 8 of 8 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on February 12, 2019 and setting such public hearing for February 26, 2019 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado. BY: ATTEST: ____________________________ ___________________________ Sarah Smith Hymes, Mayor Brenda Torres, Deputy Town Clerk ADOPTED ON SECOND AND FINAL READING on February 26, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Eric J. Heil, Town Attorney ATTACHMENT A: Ordinance No. 19-01 APPENDIX C - Area Median Income for Eagle County 2018 Area Median Income for Eagle County, 2018 Household Size 1 2 3 4 5 6 AMI Classifications Extremely Low (30% AMI) $18,270 $20,880 $23,490 $26,070 $28,170 $30,270 Very Low (50% AMI) $30,450 $34,800 $39,150 $43,450 $46,950 $50,450 60% AMI (LIHTC max) $36,540 $41,760 $46,980 $52,140 $56,340 $60,540 Low (80% AMI) $48,720 $55,680 $62,640 $69,520 $75,120 $80,720 Median (100% AMI) $60,900 $69,600 $78,300 $86,900 $93,900 $100,900 Moderate/Middle (140% AMI) $85,260 $97,440 $109,620 $121,660 $131,460 $141,260 Upper (200% AMI) $121,800 $139,200 $156,600 $173,800 $187,800 $201,800 Source: CHFA Affordable Home Price Calculation by AMI, 2018 AMI % 30% 60% 100% 140% 200% Household Income – 3 persons $23,490 $46,980 $78,300 $109,620 $156,600 Affordable Purchase price Affordable monthly payment (30%) $587 $1,175 $1,958 $2,741 $3,915 Principal & interest (80% of pmt) $470 $940 $1,566 $2,192 $3,132 HOA, taxes, insurance (20% of pmt) $117 $235 $392 $548 $783 Mortgage Interest rate 5.00% 5.00% 5.00% 5.00% 5.00% Max mortgage $47,515 $175,030 $291,717 $408,404 $583,434 Max Affordable Price -5% down $92,000 $184,00 0 $307,00 0 $430,000 $614,000 Affordable Rent $587 $1,175 $1,958 $2,741 $3,915 Affordable purchase prices were calculated assuming that a household would have 5% for a down payment, and would qualify for a loan at 30% of their monthly income. HOA, property taxes and insurance of 20% were included in loan amount. The maximum mortgage assumes an interest rate of 5%, which is about half point higher than prevailing rates for 30-year fixed rate mortgages. Interest rates are rising, however, and will have a profound impact on housing affordability. A one-point increase in the rate, as occurred in 2013, would drop the affordable purchase price for a median income household by $30,000 to $35,000. ATTACHMENT B: Appendix C (14)The subsequent transfer of a residence involved in a "tax free" or "tax deferred" trade under the Internal Revenue Code wherein the interim owner acquires property for the sole purpose of reselling that property as part of a qualified exchange and the property is resold within twenty-four (24) months after the first transfer. In these cases, the first transfer of title is subject to the real property transfer tax and the subsequent transfer will only be exempt as long as a transfer tax has been paid in connection with the first transfer of such residence in such exchange. In the event the consideration for the subsequent transfer is greater than the consideration for the first transfer, transfer tax shall be due on such increased amount of consideration. (14(15) Any sale or conveyance of real property or improvements for the purpose of constructing or otherwise providing low or moderately priced housing units for sale or lease to low or moderate income personsCommunity Housing as defined in Chapter 3.14; provided, that the parties to the transaction shall apply to the Town ManagerCouncil for the exemption prior to the occurrence of the transaction from which exemption is sought, in accordance with Chapter 3.14 Community Housing Incentives and that the partiesproperty shall agreebe subject to appropriately restrict the future use of the property to low and moderately priced housing units by recorded agreement,a deed restriction, covenants, declarations or similar instruments as may be required by that protects and maintains the Community Housing for the benefit of the Town Manager; ; (15)(16) Transfers of Community Housing subject to a deed restriction to qualified purchasers provided that the deed restriction that protects and maintains such Community Housing for the benefit of the Town is in compliance with all terms and conditions. (17)The first one hundred sixty thousand dollars ($160,000.00) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided the following conditions are met: a.The same applicant has not previously received an exemption pursuant to this subsection; b.An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1.An affidavit that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co-purchaser for investment or resale purposes); and 2.A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence within one (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record. ATTACHMENT C: REDLINE of Code Amendments c.The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction. (1618) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided that the following conditions are met: a.The applicant previously received a primary residence exemption pursuant to Section 3.12.060(1517) and the applicant has satisfied the conditions of subsection (1517)b.1. and 2. of Section 3.12.060; and b.An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1.An affidavit that the applicant's current primary residence used to satisfy the requirements of Section 3.12.060(1517) is within the town; that the applicant meets the definition of an Eagle County employee; that the real property is being purchased for use as a new primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co-purchaser for investment or resale purposes); and 2.A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event that the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence or shall cease to meet the definition of an Eagle County employee within one (1) year after closing and granting to the town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record; and c.The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction. (17)(19) The next [one hundred sixty thousand dollars ($160,000.00) or three hundred twenty thousand dollars ($320,000.00)] of the consideration paid after the first one hundred and sixty thousand dollars paid that is exempt pursuant to either Section 3.12.060(17) or (18)above for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided the following conditions are met: a.An application for exemption is filed with the Finance Department, which application is accompanied by: 1.An affidavit that the applicant meets the definition of Eagle County employee; that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co-purchaser for investment or resale purposes); and ATTACHMENT C: REDLINE of Code Amendments 2.A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence within one (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record; and 3.The total consideration paid for the residence does not exceed [six hundred forty thousand dollars ($640,000.00) or nine hundred sixty thousand dollars ($960,000.00)]; and, 4.The total additional consideration that is exempt pursuant to this Section 3.12.060(19) and either Section 3.12.060(17) or (18) does not exceed one half of the entire consideration paid for the transfer. b.The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction.” The subsequent transfer of a residence involved in a "tax free" or "tax deferred" trade under the Internal Revenue Code wherein the interim owner acquires property for the sole purpose of reselling that property as part of a qualified exchange and the property is resold within twenty-four (24) months after the first transfer. In these cases, the first transfer of title is subject to the real property transfer tax and the subsequent transfer will only be exempt as long as a transfer tax has been paid in connection with the first transfer of such residence in such exchange. In the event the consideration for the subsequent transfer is greater than the consideration for the first transfer, transfer tax shall be due on such increased amount of consideration. ATTACHMENT C: REDLINE of Code Amendments TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith-Hymes and Avon Town Council From: Justin Hildreth, Town Engineer Meeting Date: February 12, 2019 Topic: Notice of Award to Evans Chaffee Construction Group to repair leaks and add a door system to the H. A. Nottingham Park Pavilion ACTION BEFORE COUNCIL Approve Notice of Award to Evans Chaffee Construction Group to repair leaks and add a door system to the H.A. Nottingham Park Pavilion and amend the project budget from $200,000 to $290,700. RECOMMENDED MOTION “I move to approve Notice of Award to Evans Chaffee Construction Group to repair leaks and add a door system to the H.A. Nottingham Park Pavilion and amend the project budget from $200,000 to $290,700.” BACKGROUND Two improvements are planned for the H.A. Nottingham Park Pavilion. The first is the repair of leaks in the stage basement that are caused by inadequate moisture barrier on the stage deck. During a value engineering exercise conducted while the project was under construction, a moisture barrier system was selected to save $80,000. The manufacturer did not warranty the system for this application and the architect of record recommended against the Town selecting this system. The water proofing repair cost is $107,398 of this project scope. The second improvement is the installation of steel doors in the back of the stage to replace the fabric curtain that has failed several times during high wind events. The door system consists of 8 panels on 2 parallel tracks, steel frame and associated parts. The door system costs $134,385 and is higher than previously estimated because the Town Engineer was directed to select a more robust system. Evans Chaffee Construction Group (ECCG) was selected for the repair because they were the original contractor and has a comprehensive knowledge of the structure and agreed to reduced management fees. The project was competitively bid out to local sub-contractors. BUDGET The 2019 Capital Projects Fund currently includes $200,000 for this project. If Town Council would like the entire project completed, Staff recommends the budget be increased to $290,700 as summarized below: Construction $242,000 Consultants (leak specialist and architect) $24,500 Contingency (10%) $24,200 TOTAL $290,700 If Town Council does not support increasing the project budget, Staff recommends that the leak repair be completed to prevent further damage to the structure.     TOWN COUNCIL REPORT  To:   Honorable Mayor Sarah Smith‐Hymes and Avon Town Council  From:    Justin Hildreth, Town Engineer     Jim Horsley, Project Engineer     Meeting Date: February 12, 2019  Topic:   Authorization to Issue Notice of Award for the UPRR Walkway at Grade Crossing  Project          ACTION BEFORE COUNCIL  Authorize Staff to issue Notice of Award for construction of the UPRR Walkway at Grade Crossing Project  as approved in the Town of Avon 2019 Capital Projects Fund.     RECOMMENDED MOTION  “I move to approve issuance of Notice of Award for the UPRR Walkway at Grade Crossing Project contract  to the low bidder, United Companies, Inc in the amount of $174,842 as approved in the Town of Avon  2019 Capital Projects Fund.”     BACKGROUND  There is currently a gap in the sidewalk along West Beaver Creek Blvd at the Union Pacific Railroad  crossing near Avon Elementary School.  The project includes construction of concrete sidewalk and  curb & gutter on both sides of the road and replacement of curb ramps in the vicinity that do not meet  current Americans with Disability Act standards.    Staff advertised the UPRR Walkway at Grade Crossing Project for three weeks and the bid opening was  held on February 6, 2019.  Three bids were received:  Anson Excavation & Pipe, Inc. with a bid of  $191,555, 360 Civil, Inc with a bid of $218,680 and United Companies, Inc. with a bid of $174,842.  United  Companies, Inc. at $174,842 is the low bid and qualified to perform the work.  The project will be funded  from the 2019 Capital Projects Fund. Construction cost was increased 10% to 20% due to UPRR’s $10M  insurance requirement and the UPRR union flagger required when working within the railroad right of  way. Staff plans to request the UPRR flagger requirement be waived.    Construction Schedule:   The proposed work could begin as soon as April 15 and be completed by                             November 1, 2019 and an approximate four‐week construction period is anticipated. Start date is  contingent on time needed for Contractor to obtain required UPRR Right of Entry Agreement.     Impacts to traffic during construction are expected to be minimal and outreach to residents, citizens,  Avon Elementary School, and emergency services will be coordinated by Staff and the Contractor.     Page 2 BUDGET  The UPRR Walkway at Grade Crossing Project will be funded thru the 2019 Capital Projects Fund and  there is currently $200,000 budgeted in 2019 for the project. In addition to the $174,842 construction  contract, $7,000 is allocated for geotechnical testing services leaving $18,158 or approximately 10%  contingency.   The project could also be split between the east and west sides and phased if desired.   Construction contract cost (United Companies, Inc.) is $92,751 for the east and $82,091 for the west.   TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith-Hymes and Avon Town Council From: Justin Hildreth, Town Engineer Meeting Date: February 12, 2019 Topic: Audio Visual System Improvements for Town Council Chambers ACTION BEFORE COUNCIL Approve $25,000 for audio visual system improvements to Town Council chambers from the General Fund contingency line item. RECOMMENDED MOTION “I move to approve $25,000 from the General Fund contingency line item to fund audio visual system improvements for Town Council Chambers.” BACKGROUND Town Hall was completed in October and after using the Audio Visual (AV) system in Town Council chambers, several improvements are recommended to the AV system. The first is the addition of four 27” monitors on the dais tables since Town Council has difficulty seeing the wall monitors because of the glare. Three additional monitors can be added if each Council member prefers their own monitor. The second improvement is to add two monitors to the back of Council chambers to enable guests sitting in the back of the room to view presentations. The third improvement is an upgrade to the AV system to allow for 12 microphones to be on at the same time, instead of 6 with the current system. This upgrade has not been priced but is expected to be under $2,000 and within the $25,000 budget. BUDGET The 2019 General Fund includes a $100,000 contingency for unexpected expenses. If this item is approved, $25,000 of the contingency will be transferred to the Town Hall budget in the Capital Projects Fund. TOWN COUNCIL REPORT To: Honorable Mayor and Town Council From: Scott Wright, Asst. Town Manager / Finance Director Date: February 12, 2019 Agenda: 2018 Audit Engagement Letter Action Before Council An engagement letter with McMahan and Associates for the 2018 calendar year audit is included for approval by motion. Proposed Motion "I move to approve the Audit Engagement Letter with McMahan and Associates for the 2018 calendar year independent audit." Background The engagement letter is in the standard form recommended by the AICPA for local government engagements. The 2018 audit will be billed to the Town based on actual hours spent at standard rates with a fee not to exceed $22,000. In 2015, with the assistance of Councilors Scott Prince and Megan Burch, an RFP was issued for auditing services. The Town received 3 proposals. Based on the scores from the Audit Proposal Evaluation Matrix and discussion, the unanimous selection was McMahan and Associates. The proposal, provided for a three year fee commitment along with an option to renew the engagement for an additional two years. The fee above corresponds to the fees quoted in the proposal. Attachment 2018 Audit Engagement Letter McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon:(970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 M & A January 25, 2019 Town of Avon, Colorado P.O. Box 975 Avon, CO 81620 We are pleased to confirm our understanding of the services we are to provide Town of Avon, Colorado for the year ended December 31, 2018. We will audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of Town of Avon, Colorado as of and for the year ended December 31, 2018. Accounting principles generally accepted in the United States of America provide for certain required supplementary information (“RSI”), such as management’s discussion and analysis (“MD&A”), to supplement Town of Avon, Colorado’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to Town of Avon, Colorado’s RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1)Management’s Discussion and Analysis. We have also been engaged to report on RSI other than MD&A and supplementary information other than RSI that accompanies Town of Avon, Colorado’s financial statements. We will subject the following RSI and supplementary information to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on the following RSI and supplementary information in relation to the financial statements as a whole: 1)Budgetary schedules for the General Fund and major special revenue funds 2)Budget schedules for all other funds 3)Combining statements 4)Local Highway Finance Report 5)Debt Schedule January 25, 2019 Town of Avon, Colorado Page 2 The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and our auditor’s report will not provide an opinion or any assurance on that other information: 1)Introductory information 2)Statistical information Audit Objective The objective of our audit is the expression of opinions as to whether the Town’s basic financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the supplementary information referred to in the fourth paragraph when considered in relation to the financial statements as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and will include tests of the accounting records and other procedures we consider necessary to enable us to express such opinions. If our opinions on the financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. As part of our engagement, we will assist with preparation of your financial statements and related notes. You are responsible for making all management decisions and performing all management functions; for designating an individual with suitable skill, knowledge, or experience to oversee our assistance with the preparation of your financial statements and related notes and any other non-attest services we provide; and for evaluating the adequacy and results of those services and accepting responsibility for them. Management is responsible for establishing and maintaining effective internal controls, including monitoring ongoing activities; for the selection and application of accounting principles; and for the preparation and fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. Management is also responsible for making all financial records and related information available to us and for ensuring that management is reliable and that financial information is reliable and properly recorded. You are also responsible for providing us with (1) access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, (2) additional information that we may request for the purpose of the audit, and (3) unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the written representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud or illegal acts affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting Town of Granby received in communications from employees,former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that Town of Granby complies with applicable laws and regulations. January 25, 2019 Town of Avon, Colorado Page 3 Management Responsibilities (continued) You are responsible for the preparation of the supplementary information in conformity with accounting principles generally accepted in the United States of America. You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary information. You also agree to include the audited financial statements with any presentation of the supplementary information that includes our report thereon. Your responsibilities include acknowledging to us in the representation letter that (1) you are responsible for presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America; (2) that you believe the supplementary information, including its form and content, is fairly presented in accordance with accounting principles generally accepted in the United States of America; (3) that the methods of measurement or presentation have not changed from those used in the prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any significant assumptions or interpretations underlying the measurement or presentation of the supplementary information. With regard to using the auditor’s report, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. Audit Procedures—General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us, even though the audit is properly planned and performed in accordance with auditing standards generally accepted in the United States of America. In addition, an audit is not designed to detect immaterial misstatements, or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform the appropriate level of management of any material errors or any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform the appropriate level of management of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about the financial statements and related matters. January 25, 2019 Town of Avon, Colorado Page 4 Audit Procedures—Internal Control Our audit will include obtaining an understanding of the Town and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identify deficiencies in internal control. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards. Audit Procedures—Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of Town of Winter Park’s compliance with the provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Engagement Administration, Fees, and Other We understand that your employees will prepare all cash or other confirmations we request and will locate any documents selected by us for testing. Paul J. Backes,C.P.A.is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. Additional firm personnel will be assigned to the engagement as considered necessary. We will begin our audit and issue our reports on a mutually agreed-upon date. At the conclusion of our audit engagement, we will communicate to the Governing Board the following significant findings from the audit: Our view about the qualitative aspects of the entity’s significant accounting practices; Significant difficulties, if any, encountered during the audit; Uncorrected misstatements, other than those we believe are trivial, if any; Disagreements with management, if any; Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process; Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures; Representations we requested from management; Management’s consultations with other accountants, if any; and Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management. January 25, 2019 Town of Avon, Colorado Page 5 Engagement Administration, Fees, and Other (continued) Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses will not exceed $22,000 for the 2018 engagement. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to the engagement. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes overdue and may not be resumed until your account is paid in full.If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report, and you will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs through the date of termination. Our fee estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. significant additional time is necessary, we will keep you informed of any problems we encounter and our fees will be adjusted accordingly. We want the Town to feel that the value of services provided by our firm is commensurate with the fee charged. We appreciate the opportunity to be of service to Town of Avon, Colorado and believe this letter accurately summarizes the significant terms of our engagement.If you have any questions, please let us know.If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy, and return it to us. Sincerely, McMAHAN and ASSOCIATES, L.L.C. RESPONSE: This letter correctly sets forth the understanding of Town of Avon, Colorado with respect to services to be provided by McMahan and Associates, L.L.C. Town of Avon, Colorado BY: ________________________________________________ Signature ________________________________________________ Title ________________________________________________ Date Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com HEIL LAW & PLANNING, LLC MEMORANDUM TO: Honorable Mayor Smith Hymes and Town Council members FROM: Eric J. Heil, Town Attorney RE: Waiver of Conflict of Interest with Kissinger & Fellman DATE: February 8, 2019 SUMMARY: Town received a request from Kissinger & Fellman, P.C., to approve and sign a waiver of conflict of interest. Ken Fellman of Kissinger & Fellman is well known as an expert in telecommunications laws. Avon has used his expertise in a very limited manner in the past on telecommunications issues. The potential conflict that Mr. Fellman raises is associated with Project THOR (middle mile broadband project) with the Northwest Colorado Council of Government. This request is routine and inconsequential and I do not have any concerns regarding this requested waiver of conflict of interest. Per the Avon Home Rule Charter, the Town Council must approve any retainer agreements and other documents concerning an attorney-client relationship between the Town and a law firm or attorney. PROPOSED MOTION: “I move to approve the Waver of Conflict of Interest with Kissinger & Fellman, P.C., dated January 28, 2019.” Thank you, Eric ATTACHMENT A: Conflict Waiver Letter KISSINGER & FELLMAN, P.C. ATTORNEYS AT LAW PTARMIGAN PLACE, SUITE 900 3773 CHERRY CREEK NORTH DRIVE DENVER, COLORADO 80209 RICHARD P. KISSINGER TELEPHONE: (303) 320-6100 JORDAN C. LUBECK KENNETH S. FELLMAN FAX: (303) 327-8601 BRANDON M. DITTMAN JONATHAN M. ABRAMSON www.kandf.com GABRIELLE A. DALEY BOBBY G. RILEY PAUL D. GODEC, SPECIAL COUNSEL January 28, 2019 VIA EMAIL (swright@avon.org) Scott Wright, Acting Town Manager Town of Avon, Colorado 100 Mikaela Way; P.O. Box 975 Avon, CO 81620 VIA EMAIL (ericheillaw@gmail.com) Eric Heil, Town Attorney Town of Avon, Colorado 100 Mikaela Way; P.O. Box 975 Avon, CO 81620 Re: Town of Avon / Northwest Colorado Council of Governments Waiver of Conflict / Project THOR (Middle Mile Broadband Project) Dear Scott and Eric: This letter will describe a potential conflict of interest issue related to the Town of Avon, Colorado’s (the “Town”) membership with the Northwest Colorado Council of Governments (“NWCCOG”). The background facts are as follows. I have recently been retained to represent the NWCCOG in connection with Project THOR which as you probably know is a project designed to create a regional middle mile broadband network across 10 counties in NW Colorado (the “Middle Mile Broadband Project”). The work I will be conducting for NWCCOG pertains to my review of relevant Project THOR documents, including but not limited to, (i) reviewing, commenting, editing and negotiating the proposed network operator agreement with Mammoth Networks; and (ii) reviewing, commenting, editing and negotiating the proposed “Meet Me Center” Host Contract. NWCCOG representatives have indicated to me that the Town is familiar with Project THOR and intends to enter into the Meet Me Center Host Contract. Prior to my retention by NWCCOG in this matter, I represented the Town in the past in cable franchise matters. Given my past representation of the Town, a potential conflict of interest has been created in representing the Town and NWCCOG in the Middle Mile Broadband Project. The Town should consider its ongoing relationship with me and with the Firm as an attorney-client relationship. With one exception, the Colorado Rules of Professional Conduct generally prohibit a lawyers’ representation of any client that will or could become directly adverse to another current client. See Colo. R.P.C. 1.7(a). Yet, the conflict of interest rule contains an exception that allows both clients to waive the conflict of interest in writing. See Colo. R.P.C. 1.7(b). NWCCOG has been advised of the above-described potential conflict of interest and does not see a conflict of interest in my representation of NWCCOG and the Town in connection with Project THOR. If the Town is comfortable with waiving the above-described potential conflict of interest and wishes to proceed, please sign this letter acknowledging waiver of the potential conflict of interest outlined above and return it to my attention via email. Page 2 KISSINGER & FELLMAN, P.C. ∙ 3773 Cherry Creek North Drive, Suite 900, Denver, CO 80209 ∙ (303) 320-6100 ∙ FAX: (303) 327-8601 If you have any questions or concerns and would like to discuss this further, please let me know. Thank you. Very truly yours, KISSINGER & FELLMAN, P.C. Kenneth S. Fellman, Esq. kfellman@kandf.com KSF/eaj cc: Nate Walowitz, Director, Regional Broadband (via email: nwalowitz@nwccog.org) By signing below, the Town acknowledges the potential conflict of interest between the representation of NWCCOG in connection with Project THOR (the Middle Mile Broadband Project) and the Town. The underlying implications of any potential conflict of interest have been explained to the Town. Being fully advised in the circumstances, the Town hereby waives the potential conflict of interest outlined above and agrees to have NWCCOG and the Town represented by Kissinger & Fellman, P.C. in NWCCOG’s Project THOR, subject to the terms of this letter. TOWN OF AVON By: Name: Title: Date: ATTEST: Town Clerk     TOWN COUNCIL REPORT  To:   Honorable Mayor Smith Hymes and Avon Town Council  From:    Preston Neill, Acting Town Manager  Date:    February 12, 2019  Topic:    RESOLUTION 19‐06 DESIGNATING LOCATIONS FOR POSTING NOTICES OF PUBLIC MEETINGS    SUMMARY:  C.R.S. Section 24‐6‐402(2)(c) requires that a municipality’s posting places must be designated at the first  regular meeting of the calendar year as part of Colorado’s “Open Meetings Law.” Resolution 19‐06 is  presented to satisfy this requirement whereby it identifies four public locations used for posting notices  of Avon’s public meetings in addition to the Town’s website.    RECOMMENDED MOTION:  “I move to approve Resolution 19‐06 Designating Locations for Posting Notices of Public Meetings.”    ATTACHMENT:  Resolution 19‐06  TOWN OF AVON RESOLUTION 19-06 DESIGNATING THE LOCATIONS FOR POSTING THE NOTICES OF PUBLIC MEETINGS WHEREAS, Local Public Bodies, including the Avon Town Council, are required by Subsection 24-6-402 (2)(c) C.R.S., to designate annually at the Town Council’s first regular meeting of each calendar year, the place at which notice will be posted at least 24 hours prior to each meeting. NOW, THEREFORE BE IT RESOLVED BY THE AVON TOWN COUNCIL AS FOLLOWS: Notice of meetings of the Town Council required pursuant to Section 24-6-401, et seq., C.R.S. shall be posted within the boundaries of the Town at least 24 hours prior to each meeting at the following locations: Avon Town Hall, 100 Mikaela Way Avon Recreation Center, 90 Lake Street Avon Public Library, 200 Benchmark Road Avon Elementary School, 850 W Beaver Creek Boulevard Town of Avon website – www.avon.org ADOPTED February 12, 2019 AVON TOWN COUNCIL TOWN OF AVON, COLORADO _________________________ Sarah Smith Hymes, Mayor ATTEST: ___________________________________ Brenda Torres, Acting Town Clerk   TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, JANUARY 22, 2019  AVON TOWN HALL, 100 MIKAELA WAY  Page 1    1. CALL TO ORDER AND ROLL CALL   Mayor Smith Hymes called the meeting to order at 4:02 p.m. A roll call was taken, and Council members  present were Amy Phillips, Scott Prince, Jennie Fancher, Chico Thuon and Tamra N. Underwood. Jake Wolf  was absent. Also present were Town Attorney Eric Heil, Human Resources Director Lance Richards and  Acting Town Clerk Brenda Torres.    2. EXECUTIVE SESSION FOR DISCUSSION OF A PERSONNEL MATTER UNDER C.R.S. §24‐6‐402(2)(F) AND FOR A  CONFERENCE WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE UNDER C.R.S. §24‐6‐402(B)  AND FOR THE PURPOSE OF DEVELOPING STRATEGIES FOR NEGOTIATIONS UNDER C.R.S. §24‐6‐402(2)(E) ALL RELATED TO  THE TOWN MANAGER RECRUITMENT PROCESS   Mayor Smith Hymes made a motion to convene into Executive Session for discussion of a personnel  matter under C.R.S. §24‐6‐402(2)(f) and for a Conference with the Town Attorney for the purpose of  receiving legal advice under C.R.S. §24‐6‐402(b) and for the purpose of developing strategies for  negotiations under C.R.S. §24‐6‐402(2)(e) all related to the Town Manager recruitment process.  Councilor Phillips seconded the motion and the motion passed unanimously by Council members  present. Councilor Wolf was absent. The time was 4:03 p.m.    Councilor Wolf arrived at 4:14 p.m.    Executive Session ended at 4:50 p.m.    3.  ACTION TO CONTINUE THE REGULAR MEETING IN ORDER TO CALL TO ORDER THE AVON LIQUOR AUTHORITY MEETING  (MAYOR SMITH HYMES)   The Avon Liquor Authority meeting was called to order at 5:02 p.m.    4.  ACTION TO RESUME THE COUNCIL PUBLIC MEETING (MAYOR SMITH HYMES)   The Council Public meeting resumed at 5:09 p.m.    5.  APPROVAL OF AGENDA  Mayor Pro Tem Phillips requested the addition of item 8.6 APPOINTMENT OF AN ACTING TOWN MANAGER.  Councilor Underwood said she had questions about written reports 9.3 and 9.4 and asked for them to be  discussed at the appropriate time. Councilor Underwood made a motion to approve the agenda with the  requested revisions. Mayor Pro Tem Phillips seconded the motion and the motion carried unanimously.    6.  PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA   Todd Rohr, Ruthie Stanley and Tom Ruemmler commented.    7. PRESENTATION OF A PROCLAMATION FOR ONE BOOK ONE VALLEY 2019 (LORI A. BARNES, VAIL PUBLIC LIBRARY)    Lori Ann Barnes with Vail Public Library spoke about One Book One Valley 2019. Mayor Smith Hymes read  aloud a proclamation promoting the 2019 One Book One Valley initiative.        TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, JANUARY 22, 2019  AVON TOWN HALL, 100 MIKAELA WAY  Page 2    8. ACTION ITEMS  8.1. REVIEW AND ACTION ON HAHNEWALD BARN OPTIONS (PLANNING DIRECTOR MATT PIELSTICKER)   Denise Gallagher, Todd Rohr, Kristi Ferraro, Joe Shankland, Tom Ruemmler, Roger Wilkinson, Dennis  O'Hallaran, Angelo Loria, Sherry Bunting, Chuck Bunting, Pam Warren, Doug Dishont, Garrett Fonda,  and Nancy Nottingham commented on this item. Several emailed comments on the topic were read  into the public record.    Councilor Wolf made a motion to call to question whether Mayor Pro Tem Phillips has a conflict of  interest. Councilor Thuon seconded the motion and the motion failed on a vote of 2 to 4. Councilor  Underwood, Mayor Smith Hymes, Councilor Prince and Councilor Fancher voted no.     Councilor Prince moved to approve $25,000 of Town money to go toward dismantling the Hahnewald  Barn and another $25,000 for a "Challenge Match" if the community at‐large is able to raise $25,000  for the project. The motion also contained a directive to secure the money from ERWSD that has been  allocated to address the Barn. Finally, the motion contained a directive for staff to determine a suitable  location for storage of the dismantled barnwood and for staff to issue an RFP for dismantling the Barn  and store the wood. In addition to the motion stated above, Councilor Prince directed staff to begin on  a Tract G planning process, complete with community input forums/charettes. Councilor Wolf  seconded the motion and the motion failed on a vote of 1‐6. Councilor Wolf, Councilor Thuon,  Councilor Underwood, Mayor Pro Tem Phillips, Mayor Smith Hymes and Councilor Fancher voted no.    Councilor Underwood moved to continue the discussion to the February 12th Council meeting and  requested that staff prepare information related to available funding sources, and whether there is  expertise on Town staff related to grant writing and development of fundraising campaigns. Councilor  Fancher seconded the motion and the motion passed on a vote of 5‐2. Councilor Wolf and Councilor  Thuon voted no.     Councilor Wolf made a motion to not spend any more staff time or public money on the Hahnewald  Barn project. Councilor Thuon seconded the motion and the motion failed on a vote of 2 to 5. Councilor  Underwood, Mayor Pro Tem Phillips, Mayor Smith Hymes, Councilor Prince and Councilor Fancher  voted no.      8.2. PUBLIC HEARING SECOND READING OF ORDINANCE 18‐19, APPROVING AMENDMENTS TO TITLES 7, 10 AND 15 OF  THE AVON MUNICIPAL CODE (PLANNING DIRECTOR MATT PIELSTICKER)   Mayor Smith Hymes opened the public hearing and no comments were made. Councilor Prince moved  to approve second reading of Ordinance 18‐19, amendments to the Avon Municipal Code with the  modifications discussed. Councilor Underwood seconded the motion and the motion carried on a vote  of 6 to 1. Mayor Smith Hymes voted no.        TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, JANUARY 22, 2019  AVON TOWN HALL, 100 MIKAELA WAY  Page 3    8.3. APPOINTMENTS TO BOARDS AND COMMISSIONS (DEPUTY TOWN MANAGER PRESTON NEILL)   Councilor Fancher moved to approve the appointments to committees and boards in Attachment A  with the modifications provided. Councilor Prince seconded the motion and it passed unanimously.    8.4. APPROVAL OF 2019 REGULAR MEETING SCHEDULE (DEPUTY TOWN MANAGER PRESTON NEILL)   Council agreed to change the first October meeting date to October 10th instead of October 7th.  Councilor Wolf moved to approve the 2019 Avon Town Council Meeting Schedule with the revisions  discussed. Councilor Fancher seconded the motion and the motion passed unanimously.    8.5. APPROVAL OF MINUTES FROM JANUARY 8, 2019 REGULAR COUNCIL MEETING   (ACTING TOWN CLERK BRENDA TORRES)   Councilor Wolf moved to approve the minutes from the January 8, 2019 Regular Council meeting.  Councilor Fancher seconded the motion and the motion passed unanimously.    8.6.  ADDED ITEM: APPOINTMENT OF AN ACTING TOWN MANAGER  Mayor Fancher made a motion to appoint Preston Neill as the acting town manager. Councilor Wolf  seconded the motion and the motion passed unanimously.    9. WRITTEN REPORTS  9.1. UPDATE ON PROTOCOLS FOR RESPONSES TO PUBLIC COMMENTS TO COUNCIL   (DEPUTY TOWN MANAGER PRESTON NEILL)    9.2. ABSTRACT FROM JANUARY 15, 2019 PLANNING AND ZONING COMMISSION MEETING   (PLANNING DIRECTOR MATT PIELSTICKER)    9.3. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT NELLY BURNS)  Councilor Underwood had several questions related to this report and asked about specific information  related to businesses along West Beaver Creek Boulevard. Staff committed to having that information  available for Council review at the February 12th Council meeting.    9.4. UPDATE ON LICENSING OF TOBACCO PRODUCT RETAILERS AND IMPLEMENTATION OF THE NEW TAXES ON  CIGARETTES AND OTHER TOBACCO PRODUCTS (DEPUTY TOWN MANAGER PRESTON NEILL)  Councilor Underwood had several questions related to this report that staff answered.    10. MAYOR & COUNCIL COMMENTS & MEETING UPDATES   Councilor Wolf read a quote from Martin Luther King Jr.     Councilor Thuon asked for staff to pursue a strategy to assist furloughed workers affected by the partial U.S.  Government shutdown.    11. EXECUTIVE SESSION FOR A CONFERENCE WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE    TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, JANUARY 22, 2019  AVON TOWN HALL, 100 MIKAELA WAY  Page 4    UNDER C.R.S. §24‐6‐402(B) AND FOR THE PURPOSE OF DEVELOPING STRATEGIES FOR NEGOTIATIONS UNDER C.R.S.  §24‐6‐402(2)(E) ALL RELATED TO THE TOWN MANAGER RECRUITMENT PROCESS   Mayor Smith Hymes made a motion to convene into Executive Session for a Conference with the Town  Attorney for the purpose of receiving legal advice under C.R.S. §24‐6‐402(b) and for the purpose of  developing strategies for negotiations under C.R.S. §24‐6‐402(2)(e) all related to the Town Manager  recruitment process. Councilor Phillips seconded the motion and the motion passed unanimously. The  time was 9:34 p.m.    Executive Session ended at 10:32 p.m.    12. ADJOURNMENT   There being no further business to come before the Council, Mayor Pro Tem Phillips moved to adjourn the  regular meeting. Councilor Fancher seconded the motion and the motion passed unanimously. The time was  10:32 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.             RESPECTFULLY SUBMITTED:                                                       ________________________________                                                   Brenda Torres, Acting Town Clerk    APPROVED:  Sarah Smith Hymes ___________________________________    Amy Phillips  ___________________________________    Jake Wolf  ________________________________    Chico Thuon  ________________________________    Jennie Fancher   ________________________________    Scott Prince  ________________________________    Tamra N. Underwood ________________________________    TOWN OF AVON, COLORADO  TOWN COUNCIL RETREAT MEETING MINUTES FOR WEDNESDAY, JANUARY 30, 2019  AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620  Council Retreat Minutes 1/30/2019  Page 1    1. CALL TO ORDER & ROLL CALL  Mayor Smith Hymes called the meeting to order at 12:10 p.m.  A roll call was taken and Council  members present were Amy Phillips, Scott Prince, Chico Thuon, Jennie Fancher and Tamra Nottingham  Underwood. Jake Wolf was absent. Also present were Acting Town Manager Preston Neill, Town  Attorney Eric Heil, Assistant Town Manager Scott Wright and Special Events Manager Louise Duncan.       Councilor Wolf arrived at 12:25 p.m.    2. ICE BREAKER   Members of Council participated in a 30‐minute “Ice Breaker” activity.     3. SPECIAL EVENTS  3.1. 2019 SPECIAL EVENTS CALENDAR  Louise Duncan, Special Events Manager, presented the updated 2019 Special Events Calendar to  Council.     3.2.  VISION AND GOAL SETTING: PLUG AND PLAY VENUE VS. FESTIVAL VENUE  Council had a visioning discussion about the future of the Avon Performance Pavilion as a venue. The  bulk of the discussion revolved around the notion of a “Plug and Play” venue versus a “Festival” venue.     3.3. DISCUSSION OF ANNUAL SPECIAL EVENTS FUNDING AND 2020 BUDGET  Council discussed seed funding amounts for special events from past years. Each member of Council  gave their thoughts on what the special events seed funding budget should be in 2020 and subsequent  years.     3.4. SPECIAL EVENTS DECISION MAKING‐AUTHORITY  Council held a conversation about decision making authority with regard to special events, event  agreement negotiations, and administration of events. Council provided thoughts and clarity to staff on  how to move forward in getting decisions made and what the expectations are.       3.5. ROLE OF THE AD HOC SPECIAL EVENTS COMMITTEE  Council discussed the role and authority of the Ad Hoc Special Events Committee. Council provided  direction to staff to prepare a resolution approving an advisory Cultural, Arts, and Special Events  Committee to take the place of the Ad Hoc Special Events Committee. Council also asked staff to edit  the Cultural Plan based on the various direction provided during the course of the discussion, and to  present it to Council and the Ad Hoc Special Events Committee during the joint work session scheduled  for the February 12th Council meeting.           TOWN OF AVON, COLORADO  TOWN COUNCIL RETREAT MEETING MINUTES FOR WEDNESDAY, JANUARY 30, 2019  AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620  Council Retreat Minutes 1/30/2019  Page 2    3.6. SALUTE TO THE USA/FIREWORKS DISPLAYS  Staff gauged Council interest in moving away from a traditional firework show during the annual Salute  to the USA event in Nottingham Park. Council showed no interest in ending firework shows in Avon and  making efforts to secure other attractions. Council did show interest in making the recent July in  January event an annual happening.      4. STRATEGIC PLAN  4.1.  2019 STRATEGIC PLAN  4.2. COUNCIL PRIORITIES  4.3. RECOMMENDED CHANGES TO THE PLAN, IF ANY  Each member of Council present at the time provided to staff the special projects, investments and priorities  they believe the Town should focus on in the near term.      5. WRITTEN REPORTS  5.1.  LIQUOR LICENSING AVON PERFORMANCE PAVILION  5.2. ROI OF 2018 SPECIAL EVENTS      6. ADJOURNMENT  There being no further business to come before the Council, the Council Retreat adjourned at 5:07 p.m.        RESPECTFULLY SUBMITTED:          _________________________________        Preston Neill, Acting Town Manager    APPROVED:    Sarah Smith Hymes  ________________________________    Amy Phillips  ________________________________    Jake Wolf    ________________________________    Chico Thuon  ________________________________    Tamra N. Underwood ________________________________    Scott Prince    ________________________________    Jennie Fancher  ________________________________        TOWN COUNCIL REPORT To: Honorable Mayor and Town Council From: Scott Wright, Asst. Town Manager / Finance Director Date: February 12, 2019 Agenda: West Beaver Creek Blvd. Construction Impact to Businesses Action Before Council This memo is for information only. Proposed Motion N/A Background Earlier in the year certain members of Town Council requested information regarding the impacts of construction on businesses along West B/C Blvd. This is an update to those figures based on sales taxes reported between the months of May to November, when construction was occurring. Year May June July August September October November Total 201 7 $34,603.5 0 $52,950.4 6 $64,437.6 3 $56,507.9 9 $50,809.8 5 $37,480.5 8 $34,278.8 8 $331,068.8 9 201 8 $33,409.1 5 $53,434.1 1 $62,186.2 5 $55,593.5 0 $48,847.9 1 $33,568.6 8 $35,144.4 2 $322,184.0 2 Chg (3.45%) 0.91% (3.49%) (1.62%) (3.86%) (10.44%) 2.52% (2.68%) The figures above represent the totals of 9 highly recognized merchants located along West B/C Blvd between Avon Rd. and Lakestreet. Business types include accommodation providers, liquor stores, restaurants and bars, and sporting goods retailers. Due to the limited number of sales tax licensees used in this analysis, I cannot provide any further detail. The net change year-over-year for the 7 months identified for this group is a decrease of $8,884.87 in Town of Avon sales tax or a net decline of 2.68%. In comparison, all sales tax for the Town for this period increased by 5.31% for May through November 2018. It should also be noted that this decline represents an approximate loss of $222,122 in gross taxable revenues for the 9 businesses identified. COMMUNITY DEVELOPMENT DEPARTMENT 2018 2018 Year End Report This report summaries planning and permit information for the 2018 calendar year compared with recent years. Page 1 COMMUNITY DEVELOPMENT DEPARTMENT 2018 Y E A R E N D R E P O RT PLANNING PROGRAM The Planning Department is responsible for long range and current planning activities. In 2018, the Town- Owned Properties Plan was completed, and the Avon Community Housing Plan was adopted. Several code text amendments were vetted through the Planning and Zoning Commission. Additionally, the department coordinated with the Eagle River Water and Sanitation District to modernize the Town’s Landscape Code for additional water conservation measures. BUILDING PROGRAM In 2018, the contractor licensing process was changed to consolidate with business licensing through the online Munirevs program. This was initiated through code amendments, and was implemented by modifying the online experience. Now contractors will receive e-mail reminders in advance of expiring licenses and both registration and sales tax for construction materials can be handled through the same system. The busy construction year included 515 individual building inspections, and a number of new residential construction starts. The year concluded with the completion of the new Town Hall. COMMUNITY DEVELOPMENT DEPARTMENT Page 2 BUILDING PERMIT TRENDS Building permit valuation represents the total valuation of construction activities reported to the Community Development Department including materials, profit, and labor. The building permit valuation and fees paid charts generally track each other and continue to show general upward trends since the recession. The previous high year (2013) was skewed by the Wyndham Hotel project which began late that year. $0.00 $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 $30,000,000.00 $35,000,000.00 $40,000,000.00 $45,000,000.00 $50,000,000.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 Valuation by Year Valuation $0.00 $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 2010 2011 2012 2013 2014 2015 2016 2017 2018 Fees Paid Fees Paid Page 3 PLANNING CASES The total number and type of planning department cases has remained steady over the past three (3) years. The majority of files are Minor Development Plan applications, which include any/all exterior improvements (i.e. landscaping, parking, building additions) that must be reviewed and processed either administratively or by the Planning and Zoning Commission. Major Development Plans are new construction designs for either single-family home construction or multi-family projects that warrant an extensive review process. 0 10 20 30 40 50 60 Minor Dev Plan Major Dev Plan PUD Temp Use Permit Sign Permit Subdivision Special Review Use Code Text Amendment Alternative Equiv Compliance 2016 2017 2018 COMMUNITY DEVELOPMENT DEPARTMENT Page 4 AVON COMMUNITY HOUSING PLAN The Town Council held a housing retreat in 2018, which was facilitated by Willa Willaford and Eagle County Housing staff members. Out of the retreat, Avon’s first Community Housing Plan was developed. The plan was ultimately adopted in December 2018 and paves the way for additional policy and regulation work targeted at strategic development of additional workforce housing. The need for additional housing units is well documented in the 2018 Housing Needs Assessment that was produced by Eagle County. This plan dovetails nicely with the 2018 Housing Needs Assessment by providing the rationale and methods moving forward. Document Link HERE: HOUSING PLAN Goals and Objectives of the Avon Community Housing Plan include: Focus on increasing deed restricted homeownership opportunities for households making equivalent of 140% or less of the Area Median Income - $430,000 for a household of three people in 2018. Grow the inventory of homeownership and “missing middle” inventory, in place of additional rental housing stock, to create a more balanced portfolio with a long- term goal of 50% rental, 50% ownership. When considering new rental housing, prioritize price point, quality and amenities attractive to “step up” renters and seniors looking to downsize, focusing on the 80-120% AMI level. Stabilize or increase the percentage of year-round residents; currently 55% of all dwelling units in Avon are • occupied by year-round residents. Stabilize or increase the percentage of Eagle County working residents Avon. Seek to add deed restricted units to the inventory in the short term. Strengthen regional partnerships with other communities and entities (i.e. Habitat for Humanity, Eagle • County, other municipalities) to make projects happen. As sites redevelop, strive for “no net loss” of units in the 80-120% AMI range, and when possible, increase • housing serving the local year-round population. Re-evaluate goals and objectives on an annual basis, including the ongoing monitoring of new projects • and housing stock in the mid-valley; appendices may be updated by Resolution. Page 5 ON THE HORIZON A busy year ahead will likely include additional policy work in the areas of inclusionary zoning and short-term rentals. Planning work will continue for the future of the Town-Owned Properties. Large new construction projects are anticipated (i.e. Colorado World Resorts, Lot B Hotel, Riverfront Lodge and Townhomes) to commence and continue through the year. The Chief Building Official position is currently being advertised for the vacancy created by the retirement of Willey Gray. Lastly, a part-time Permit Technician position is being created for assistance with managing the anticipated increase in planning and construction activity ahead. WRITTEN REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Eva Wilson, Mobility Director Meeting Date: Feb 12, 2018 Topic: AVON BIKESHARE PROGRAM UPDATE - ZAGSTER BACKGROUND: Avon’s bikeshare program began in the summer of 2017 with 4 stations and 20 bicycles for $36,000/yr. Zagster was selected as the provider based on 1) Turn-key program (no additional staff required), 2) Low initial/capital cost, and 3) No long-term commitment. In addition, Zagster had proven success in 34 states with 245 programs. 2018 SUMMARY: • Program: o Operations: 1 April to 1 Dec 2018 o Two stations and 5 bicycles were added ▪ Nottingham beach (Aug 2018) ▪ New Town Hall (Oct 2018) • Utilization: o 403 members joined with 722 trips o Avg Trip duration: 55 mins o 17% of users are locals (Vail Valley) o 61% of users are from out-of-state o Trip by month: o % of trip starts/ends by station ▪ Avon Station (46%/44%) – most active ▪ Nottingham Beach Station was installed in Aug 2018 ▪ Town Hall in Oct 2018 2019 ACTIVITIES: • Continue to promote bikeshare usage • Continue to support Zagster in gaining private sponsorships for expansion • Continue to investigate opportunities with e-bikes and e-scooters – Zagster • Continue to participate in the regional bikeshare effort led by Walking Mountain Science Center ATTACHMENT: 1. Avon Bikeshare 2018 Utilization Report Copyright © 2019 by Zagster, Inc. 1)Overview 2)Utilization 3)System Demographics 4)Rider Behavior 5)Rider Feedback 6)Zagster Updates 7)Recommendations & Next Steps ...taking 722 trips......generating 485hours of new bike riding... 403 Members joined...... burning 242,458* calories... ...and offsetting 913* lbs of CO2 emissions! *Estimates based on continuous bike riding at 8 mph. CO2 estimates based on 411 grams CO2 saved per 1 mile ridden. Calorie estimates based on 5000 calories burned per hour ridden. At a glance ●Launched August 30, 2017 ●25 Bikes across 6 locations ●Annual, Daily, and Employee membership options available ●Median Trip Duration: 55 Mins. Members Joined: 403 Trips Taken: 722 System Evaluation Spring Thaw Reporting Cadence Stacy Sebeczek Market Manager ssebeczek@zagster.com 970.305.5664 www.zagster.com M E M O R A N D U M TO: Board of Directors FROM: Catherine Hayes, Board Secretary DATE: Jan. 28, 2019 RE: Summary of Authority’s Jan. 24, 2019, Board Meeting The following is a summary of items discussed at the January 24, 2019, Authority Board Meeting: Board members present and acting included: Chair George Gregory, Vice Chair Sarah Smith Hymes, Secretary Kim Bell Williams, Treasurer Geoff Dreyer, directors Mick Woodworth and Pam Elsner. Introductions Consultant Larissa Read was introduced. NEPA 101 and the West Vail Pass Auxiliary Lane Project Larissa Read discussed the National Environmental Policy Act (NEPA) with the board, summarizing the main tenets of the act; any entity undergoing a project with potential environmental impacts must evaluate alternatives, study potential impacts, and gather public comments. Larissa discussed applicable regulations and the circumstances under which certain ones would be applicable, including comparison to local projects with which the board is familiar. Larissa specifically discussed the West Vail Pass Auxiliary Lane project and how the project has proceeded so far under the NEPA process. There is concern among local stakeholders that the project will have significant impacts, and that water resources and stormwater runoff are not being adequately considered. Unification Discussion The board appointed Kim Bell Williams and Sarah Smith Hymes as the subcommittee to discuss unification with a to-be-determined District subcommittee. They will regularly report updates back to the board. Appeals Process Linn Brooks refreshed the board on the appeals process, by which a customer or developer can appeal a decision of the Construction Review Team, first to the Rules and Regulations Administrator, and next to the General Manager. If a satisfactory conclusion is still not reached, the appeal can escalate to the board. For informational purposes only, Linn reported that the 6 West Developer had appealed the District’s inclusion of storage space in the tap fee calculation. After a site visit, Linn determined that a portion of some of the development’s storage space did not impact water use; two other types of storage area will still be included in the calculation. Tour of ADWF Brian Tracy noted a recent request from a board member to tour the Avon Drinking Water Facility; he extended the invitation to any interested board members, many of whom were interested. Brian will send out a poll to determine the best available date to schedule the tour. Legislative Updates Diane Johnson noted the 2019 legislative session began on Jan. 4; the District is tracking a bill that would extend to special districts a 2013 bill regarding the unenforceability of HOA rules establish minimum turf and landscaping design. A recent meeting with Rep. Dylan Roberts and District staff and board members was productive, and staff also has a good relationship with Jill Ryan, an Eagle County Commissioner who was recently appointed to Gov. Jared Polis’s cabinet. Diane will continue to monitor legislation relevant to the District. Summary of Authority’s Jan. 24, 2019, Board Meeting Page 2 of 2 Community Water Plan Diane Johnson reported that she and Amy Vogt continue their involvement in the outreach committee for the Community Water Plan. Upcoming open houses are scheduled for Feb. 12 (Avon library) and Feb. 27 (Town of Eagle Council Chambers) from 5 – 7 p.m. each evening, with one hour of presentations scheduled for each. Diane will share more details as they are available. Colorado River Drought Contingency Planning Diane Johnson discussed drought contingency planning, particularly in the lower basin states. She reported that the Central Arizona Project had approved draft contingency legislation earlier in the day; this will go before the Arizona legislature soon. Liens for Delinquent Accounts Jim Collins shared that he will streamline the legal process for using liens to collect unpaid water bills. The District is statutorily entitled to such a lien regardless of whether it is actually recorded with the county. The board agreed with Jim that no liens will be filed going forward, except under extraordinary circumstances. Diligence Applications Glenn Porzak noted diligence applications were filed for Wolford Mountain Reservoir and Homestake Reservoir. The opposition period is currently open for both applications. Colorado River Compact Matters Glenn Porzak discussed the letter he sent to the Colorado Water Conservation Board (CWCB) that states the concerns of the Authority and District regarding the CWCB’s proposed actions if a compact call occurs. Such plans make no mention of the priority system that is the foundation of Colorado Water Law. The letter notes that litigation may result from affected West Slope party if the Prior Appropriation system is not the basis of water appropriations decisions in the face of a compact call. 1 PZC Abstract – February 5, 2019    Planning & Zoning Commission  Meeting Abstract   Tuesday, February 5, 2019      I. Call to Order – The meeting was called to order at 5:02 pm.     II. Roll Call – All commissioners were present except commissioner Hardy.  Commissioner Barnes acted as the  chairperson.    III. Additions & Amendments to the Agenda – There were no additions or amendments to the agenda.    IV. Conflicts of Interest     V. Major Design Review –2613 Bear Trap ‐ CONTINUED PUBLIC HEARING    File:      MJR18011      Applicant:     Jeff Manley, Martin Manley Architects    Property:  Lot 27, Block 2, Wildridge Subdivision  Owner:    Dana Del Gizzi  Summary:   Jeff Manley presented a phased addition to the home.    Action: Commissioner Nusbaum motioned to approve the item with the following findings  and conditions:  Findings:     1. The application is complete;  2. The application provides sufficient information to allow the PZC to determine that  the application complies with the relevant review criteria;  3. The proposed application was reviewed pursuant to §7.16.080(f), Development Plan,  §7.16.090(f), Design Review. The design meets the development and design  standards established in the Avon Development Code;  4. The application complies with the goals and policies of the Avon Comprehensive  Plan;  5. The extra demand for public services is met by the application; and  6. The design relates the development to the character of the surrounding community.   Conditions:  1. All disturbed areas will be reseeded with the originally approved native mix grass or  sod;   2. Temporary irrigation systems must be above‐ground and shall be removed upon  sufficient vegetation establishment, which shall not exceed one (1) year for ground  cover, two (2) years for shrubs or three (3) years for trees;   3. The units shall be in good standing with the Eagle River Water and Sanitation District  before any TCO or CO will be issued for the additions; and  4. The deck shall be revised to bring it into conformance with applicable setbacks.       Commissioner Glaner seconded the motion and it carried unanimously 6‐0.    VI. Major Development Plan – 254 Riverfront Lane – PUBLIC HEARING  File:      MJR19001   Legal Description:  Lot 4 Riverfront Subdivision    Applicant:     Jim Telling  Owner: East‐West Partners