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TC Packet 03-12-2019    TOWN OF AVON , COLORADO  TOWN OF AVON MEETINGS FOR TUESDAY, MARCH 12, 2019  AVON TOWN HALL, 100 MIKAELA WAY    AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:00 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    COUNCIL CLOSED EXECUTIVE SESSION BEGINS AT 4:00 PM (SEE AGENDA BELOW)  AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:00 PM (SEE AGENDA BELOW)    1. CALL TO ORDER AND ROLL CALL 4:00    2. EXECUTIVE SESSION FOR A CONFERENCE WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE ON  THE VILLAGE (AT AVON) DEVELOPMENT AGREEMENT AND 2012 SETTLEMENT UNDER CRS §24‐6‐402(2)(B)    (40 MINUTES) 4:00     3. APPROVAL OF AGENDA 5:00    4.  PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA 5:05  * 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.    5. PRESENTATIONS  5.1. RIVER HEALTH AND WATER QUALITY MONITORING UPDATE   (SETH MASON, LOTIC HYDROLOGICAL, AND DAVE REES, TIMBERLINE AQUATICS) (30 MINUTES) 5:10  5.2. EAGLE COUNTY HOUSING AND DEVELOPMENT AUTHORITY ADVISORY COMMITTEE UPDATE  (DOUG JIMENEZ AND KIM BELL WILLIAMS) (20 MINUTES) 5:40  5.3. BROADBAND PRESENTATION (ED BARRETT, HR GREEN, INC.) (30 MINUTES) 6:00    6. ACTION ITEMS  6.1. FIRST READING ORDINANCE 19‐03 APPROVING CODE TEXT AMENDMENTS FOR INCLUSIONARY HOUSING  REQUIREMENTS AND DEVELOPMENT BONUS (PLANNING DIRECTOR MATT PIELSTICKER) (40 MINUTES) 6:30  6.2. PUBLIC HEARING SECOND READING ORDINANCE 19‐02 AMENDING CHAPTER 3.08 SALES TAX AND ENACTING  CHAPTER 3.10 CIGARETTE EXCISE TAX (TOWN ATTORNEY ERIC HEIL) (10 MINUTES) 7:10  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) (45 MINUTES) 7:20  6.4. REVIEW AND ACTION ON PROPOSED UPDATE TO CC4CA POLICY AGENDA   (ACTING TOWN MANAGER PRESTON NEILL) (5 MINUTES) 8:05  6.5. CONSENT AGENDA (5 MINUTES) 8:10  6.5.1. APPROVAL OF MINUTES FROM FEBRUARY 26, 2019 REGULAR COUNCIL MEETING (ACTING TOWN CLERK  BRENDA TORRES)   6.5.2. APPROVAL OF MINUTES FORM FEBRUARY 26, 2019 SPECIAL COUNCIL MEETING (ACTING TOWN MANAGER  PRESTON NEILL)  6.5.3. APPROVAL OF MINUTES FROM FEBRUARY 27, 2019 SPECIAL COUNCIL MEETING (ACTING TOWN MANAGER  PRESTON NEILL)      TOWN OF AVON , COLORADO  TOWN OF AVON MEETINGS FOR TUESDAY, MARCH 12, 2019  AVON TOWN HALL, 100 MIKAELA WAY    AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:00 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.  2    7. WRITTEN REPORTS  7.1. POLAR PLUNGE EVENT UPDATE (POLICE CHIEF GREG DALY)  7.2. REAL ESTATE TRANSFER TAX ANALYSIS (ASSISTANT TOWN MANAGER/FINANCE DIRECTOR SCOTT WRIGHT)  7.3. UPPER EAGLE REGIONAL WATER AUTHORITY FEBRUARY 28, 2019 MEETING SUMMARY (MAYOR SMITH HYMES)    8. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES) 8:15    9. EXECUTIVE SESSION FOR THE PURPOSE OF DETERMINING POSITIONS RELATIVE TO MATTERS THAT MAY BE SUBJECT TO  NEGOTIATIONS, DEVELOPING STRATEGY FOR NEGOTIATIONS, AND/OR INSTRUCTING NEGOTIATORS, UNDER C.R.S. §24‐6‐ 402(2)(E) AND FOR A CONFERENCE WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE UNDER  C.R.S. §24‐6‐402(2)(B) CONCERNING A SPECIAL EVENT (30 MINUTES) 8:30    10. 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.    FUTURE AGENDA ITEMS:    PUBLIC HEARING RESOLUTION 19‐XX, CAPITAL PROJECTS FUND BUDGET AMENDMENT   INTERVIEWS AND APPOINTMENT OF SEVEN (7) CULTURAL, ARTS, AND SPECIAL EVENTS COMMITTEE MEMBERS    FIRST READING ORDINANCE 19‐XX ADDING CHAPTER 1.14 OF TITLE 1 OF THE AVON MUNICIPAL CODE PERTAINING  TO CAMPAIGN FINANCE    OVERVIEW OF LEGAL AUTHORITY TO REGULATE POLYSTYRENE, SINGLE USE PLASTIC PRODUCTS, AND PLASTIC  BOTTLES    AVON ROAD/I70 UNDERPASS WORK SESSION          TOWN COUNCIL REPORT  To:   Honorable Mayor Smith Hymes and Town Council  From:    Preston Neill, Acting Town Manager  Date:    March 12, 2019  Topic:    RIVER HEALTH AND WATER QUALITY MONITORING UPDATE    SUMMARY  Seth Mason of Lotic Hydrological (coordinator of Eagle River Watershed Council's Water Quality  Monitoring & Assessment Program) and Dave Rees of Timberline Aquatics will attend Tuesday’s Council  meeting to update Council on county‐wide water quality data collection and analysis efforts with a focus  on macroinvertebrate health in the Eagle River and its major tributaries. Ongoing water quality  monitoring supported by the Town of Avon and coordinated by the Eagle River Watershed Council  suggests that urbanization along the river corridor continues to negatively impact aquatic communities  and that those conditions may be worsening in some areas.    The presentation materials were not finalized in time to be included in the Council packet. Seth and Dave  will have copies of their presentation ready for Council during Tuesday’s Council meeting.           TOWN COUNCIL REPORT  To:   Honorable Mayor Smith Hymes and Town Council  From:    Preston Neill, Acting Town Manager  Date:    March 12, 2019  Topic:    EAGLE COUNTY HOUSING & DEVELOPMENT AUTHORITY ADVISORY COMMITTEE UPDATE    SUMMARY  Doug Jimenez and Kim Bell Williams will attend Tuesday’s Council meeting to provide updates on housing  and the work of the Eagle County Housing & Development Authority Advisory Committee.     ATTACHMENTS  Town of Avon Housing Update Presentation  Housing in Eagle County 1 Town of Avon Housing update Eagle County Housing & Development Authority Advisory Committee 2 Advisory Committee roles •Meets quarterly •Recommendation to board on housing policies and priorities since 2016 •Members ○Doug Jimenez, Avon ○David Myler, Basalt ○Bret Hooper, Eagle ○Gary Brooks, Eagle County at large ○Tom Edwards, Gypsum ○Barb Smith, Red Cliff ○George Ruther, Vail 3 Town of Avon Housing Updates •YIMBY Jamboree in January 2019 •The Valley Home Store partnership ○First Time Home Buyer Classes ■May 8, 2019 (Wednesday) 5:30 - 7:30 pm ■September 19, 2019 (Thurs) 5:30-7:30 pm ○Employee Housing Unit compliance with existing for sale units •Deed restricted housing map in Avon 3 Affordable Housing Properties in Avon 4 5 Down Payment Assistance program Eagle County Loan Fund (ECLF) •Homebuyers under 160% AMI •$600,000 max purchase price •Owners/buyers must live and work in EC •Loan term 15 years •Equity share •Home Buyers Assistance Committee members ○Scott Prince ○Chico Thuon 2018 ECLF Review A record year •50 loans approved •$657,413 in loan volume 6 Historical ECLF Review ●387 loans total ●$4,835,118 in loan volume •145 loans in current portfolio •$2,039,305 in loan volume in current portfolio 7 2019 ECLF pacing ECLF off to a busy start •6 loans have closed YTD, totaling $90,000 •2 loans are approved (1 Habitat for Humanity buyer) •2 loans are under review With loans closed and loans pending, the estimated fund balance is $138,756 Enough for 9 loans at $15,000 OR 13 loans at $10,000 8 9 Avon Community Housing Plan •March 7, 2018 Housing Retreat •Ordinance 18-07 adopted August 2018 •Goals and objectives •Diverse range of housing •Coordinate with neighboring communities 10 Eagle River Valley Housing Needs and Solutions Presented on May 8, 2018 13 Housing Tools 14 Housing Tools (page 2) Legend = 15 16 Looking ahead to new inventory in 2019 •Two10 at Castle Peak •22 workforce rental units converted to senior independent living •6 West Apartments •120 for rent resident occupied units in West Edwards •Spring Creek Apartments •282 LIHTC rental units (60-80% AMI) in Gypsum Two10 at Castle Peak, Eagle Ranch rendering Questions? •Reports and Advisory Committee found at www.eaglecounty.us/housing Doug Jimenez, djcolorado@mail.com Kim Bell Williams, kim.williams@eaglecounty.us 17     TOWN COUNCIL REPORT  To:   Honorable Mayor Smith Hymes and Town Council  From:    Preston Neill, Acting Town Manager  Date:    March 12, 2019  Topic:    BROADBAND PRESENTATION    SUMMARY  Ed Barrett with HR Green Inc. will attend Tuesday’s Council meeting to deliver a presentation regarding all  things broadband. His presentation will focus on the following areas:  1. What’s going on with broadband in the state?  2. What’s going on locally with NWCCOG’s Project Thor?  3. What decisions need to be made to study community‐based broadband services?  4. Next steps to study the issue more deeply.    ATTACHMENTS  Avon Broadband Options PowerPoint  GOVERNMENTAL SERVICESAVON BROADBAND OPTIONSMARCH 12, 2019 Avon Broadband | Opportunity Overview2•A few definitions –•MegaBITS= telecom speed•8 BITS = 1 BYTE•MegaBYTES= data storage So… think of a 3 Megabyte attachment (song, doc, photo) ~ 25 megabitsBroadband = 25 megabits per second•Current FCC definition = “25 & 3” Problem…HDTV streaming = 80 mbps per TVMost homes ~ 10 devices per personWHAT IS BROADBAND? Avon Broadband | Opportunity Overview3•Speeds•Cost•Local Control•Improved ServiceWHAT IS DRIVING MUNICIPAL BROADBAND? Avon Broadband | Opportunity Overview4WHAT ARE OTHER CITIES DOING –AND WHY? Avon Broadband | Opportunity Overview5WHAT DOES THE FUTURE LOOK LIKE?•Wireless 5G ServicesSpeedsCostLocal ControlImproved Service Avon Broadband | Opportunity Overview6WHAT DOES THE FUTURE LOOK LIKE?•Wireless 5G Services•Improved ExperiencesSpeedsCostLocal ControlImproved Service* Graphic by IntelliStreets, Inc. Avon Broadband | Opportunity Overview7WHAT DOES THE FUTURE LOOK LIKE?•Wireless 5G Services•Improved Experiences•Autonomous Vehicles Avon Broadband | Opportunity Overview8WHAT DOES THE FUTURE LOOK LIKE?•Wireless 5G Services•Improved Experiences•Automated Vehicles•Education & Digital Divide Avon Broadband | Opportunity Overview9A LOOK AT THE VAIL VALLEY & PROJECT THOR Avon Broadband | Opportunity Overview10VAIL VALLEY KEY CHALLENGES•Outages & Service Reliability•Lack of Carrier Redundancy & Backhaul Availability•Pricing Substantially Above Front Range Services•Limited competition in some communities Avon Broadband | Opportunity Overview11PROJECT THOR - NWCCOG•Regional Network•Solves Backhaul Issues•Significant Cost Savings Avon Broadband | Opportunity Overview12HR GREEN RECENT ENGAGEMENT - THOR•Create Financial Model for Anchor Institution Network•Conduct Community Interviews•Create & Adjust Financial Models •Evaluate Sustainability of Financial Models•Facilitate Organizational Structure Discussions Avon Broadband | Opportunity Overview13HOW MUCH COULD YOU SAVE? Current  Bandwidth  (Mbps)   Total Current  Charges  Expiration Date Potential THOR Bandwidth (Mbps)  Projected Monthly Charges Anchor Institution ChargesEagle County 2,000        3,411$      3/1/2022 2,100        2,520$         Eagle County Library System 40              2,132$      6/30/2019 1,000        1,200$         Eagle Fire District 80              510$          11/30/2020 100            120$             Mountain Recreation District 100            1,910$      12/31/2019 1,300        1,560$         Town of Eagle 200            3,160$      12/1/2020 1,500        1,800$         Vail Health 300            2,640$      5/31/2020 1,500        1,800$         Gypsum Fire District 20              428$          1/1/2019 100            120$             Town of Gypsum 110            1,384$      12/13/2021 600            720$             Eagle County Schools 5,600        12,177$    6/30/2019 6,000        7,200$         Totals 8,450        27,752$    14,200      17,040$       Anchors Projected Charges Anchor's Current Charges •Recent Community Study•Increases Bandwidth•Decreases Cost ~40% Avon Broadband | Opportunity Overview14PROJECT THOR PARTICIPATION PROS & CONSReduced Anchor CostsFacilitates CompetitionReduced Retail PricingControl of Network OperatorImproved SpeedsImproved ReliabilityLower future cost of bandwidthOpportunity for Future Municipal Retail Broadband Services via Open AccessEconomic Development ImpactsSocio Economic Impacts (Digital Divide)Unfair to Private Sector / Not Government’s RoleCommunity AlreadyWell ServedOperator/Service Failure Financial Failure/Debt Service Avon Broadband | Opportunity Overview15PROJECT THOR STATUS•Contracts to participating communities•Planned fall launch of services•Eagle votes on contract 3/26•Avon can join at any point in the future Avon Broadband | Opportunity Overview16STUDYING COMMUNITY-BASED BROADBAND Avon Broadband | Opportunity Overview17“If I had an hour to solve a problem I'd spend 55 minutes thinking about the problem and 5 minutes thinking about solutions.” – Albert EinsteinPlanDesignBuildVisionOperateTHE HR GREEN BROADBAND STRATEGY Avon Broadband | Opportunity Overview18Our process is designed to quickly deploy your network, while concurrently maintaining “off-ramps” as you develop better understanding of the risks, rewards, challenges and opportunities.THE HR GREEN BROADBAND STRATEGYPlanDesignBuildVisionOperate Avon Broadband | Opportunity Overview19WHAT IS VISIONING•Community Engagement•Assessment of Local Market Conditions•Evaluation of assets and opportunities•Evaluate public sector/anchor institution needs•Discussion of community values and priorities•Establish a strategy upon which to execute Avon Broadband | Opportunity Overview20COMMON OBJECTIVES INTERACTION•Must set a Vision for what this means in Avon…•Your choices are based on conflicting values Avon Broadband | Opportunity Overview21COMMON OBJECTIVES INTERACTIONUbiquityAffordabilityOwnershipCompetitionChoiceRisk AversionCash FlowPerformance•Must set a Vision for what this means in Avon…•Your choices are based on conflicting values Avon Broadband | Opportunity Overview22HR GREEN FIBER & BROADBAND SERVICESStrategic Policy Development & ImplementationCore Equipment Architecture & DesignRegional Collaboration Master Planning & EngineeringOperational Modeling Business Model AssessmentTelecommunications Colocation ConsultingGrant Writing & AdministrationRegulatory Compliance Business Case Needs AssessmentProject / Program Management Market AssessmentConstruction Management Telecommunications Network Design Avon Broadband | Opportunity Overview23Publicly Owned & Operated(Municipally Owned & Operated)Publicly Owned & Operated(Municipally Owned & Operated)Public/Private Partnerships (Install fiber/ conduit and lease capacity to providers)Public/Private Partnerships (Install fiber/ conduit and lease capacity to providers)Public/Private Partnerships(Leverage Broadband Currency)Public/Private Partnerships(Leverage Broadband Currency)Public Policy (Continue Colocation & Dig Once, Policies)Public Policy (Continue Colocation & Dig Once, Policies)Private Sector (Allow Private Sector to Drive Deployment)Private Sector (Allow Private Sector to Drive Deployment)Publicly Owned/High Control Private Owned/Low ControlPartnershipsAVON’S ROLE… TO DATE Avon Broadband | Opportunity Overview24Publicly Owned & Operated(Municipally Owned & Operated)Publicly Owned & Operated(Municipally Owned & Operated)Public/Private Partnerships (Install fiber/ conduit and lease capacity to providers)Public/Private Partnerships (Install fiber/ conduit and lease capacity to providers)Public/Private Partnerships(Leverage Broadband Currency)Public/Private Partnerships(Leverage Broadband Currency)Public Policy (Continue Colocation & Dig Once, Policies)Public Policy (Continue Colocation & Dig Once, Policies)Private Sector (Allow Private Sector to Drive Deployment)Private Sector (Allow Private Sector to Drive Deployment)PartnershipsPublicly Owned/High Control Private Owned/Low ControlAVON’S ROLE… IN THE FUTURE Avon Broadband | Opportunity Overview25RECOMMENDATION: CONDUCT FEASIBILITY STUDY•Public Private Partnership Focus•Study Ownership Alternatives•Franchise Model•Owned Core Network Infrastructure•Community Engagement•Needs Assessment/Surveys/Public Meetings•Outreach to Anchor Institutions•Create Business Plan for Alternatives•Develop Conceptual Design & CapEx Costs•Create Financial Models•Create/Manage RFP Process Avon Broadband | Opportunity Overview26NEXT STEPS•Conduct Feasibility Study… in Phases•Develop preferred approaches/ownership models•Ensure public participation•Evaluate funding to enhance local dollarsPlanDesignBuildVisionOperateFuture Phases TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: David McWilliams, AICP, Town Planner Matt Pielsticker, AICP, Planning Director Date: March 12, 2019 Topic: PUBLIC HEARING and FIRST READING OF ORDINANCE 19-03, APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE, FOR INCLUSIONARY ZONING AND DEVELOPMENT BONUS REGULATIONS ACTION BEFORE COUNCIL Before Council is action on First Reading of Ordinance 19-03, approving amendments to Title 7 of the Avon Municipal Code for Inclusionary Zoning and Development Bonus Regulations AVAILABLE ACTIONS - Continue 1st Reading of Ordinance 19-03 to a future meeting, pending additional information. This would allow for a discussion and direction to return with additional information. - Approve 1st Reading of Ordinance 19-03, thereby setting a public hearing date of April 9, 2019. RECOMMENDED MOTION “I move to approve first reading of Ordinance 19-03, setting a public hearing date of April 9, 2019.” CODE TEXT AMENDMENT PROCESS CODE TEXT AMENDMENT REVIEW CRITERIA The review procedures for this application are governed by the Development Code. According to the AMC §7.16.040(c), Review Criteria, the PZC and Town Council shall use the following review criteria as the basis for recommendations and decisions on applications to amend the text of the Development Code: (1) The text amendment promotes the health, safety and general welfare of the Avon community; (2) The text amendment promotes or implements the goals and policies of the Avon Comprehensive Plan; (3) The text amendment promotes or implements the purposes stated in the Development Code; or (4) The text amendment is necessary or desirable to respond to changed conditions, new planning concepts or other social or economic conditions. Staff Response: The amendments are timely in addressing the housing needs of the Town and the greater Eagle County community, a condition seems to only be getting more pressing. They promote the health, safety and welfare of the community by linking jobs generated to the provision of housing. They implement the goals and policies of the Comprehensive Plan, specifically “Achieve a diverse range of housing densities, styles, and types, including rental and for sale, to serve all segments of the population,” “Coordinate with neighboring communities to provide an attainable housing program that incorporates both rental and ownership opportunities, affordable for local working families,” and the ACHP. They conform to the Development Code purposes, specifically (n), “Achieve a diverse range of attainable housing which meets the housing needs created by jobs in the Town, provides a range of housing types and price points to serve a complete range of life stages and promotes a balanced, diverse and stable full time residential community which is balanced with the visitor economy.” SUMMARY OF PROPOSED CHANGES Two code text amendments are proposed for the Avon Development Code (ADC) relating to community housing. Employee Housing Mitigation Staff was directed, through the Avon Community Housing Plan (ACHP sections, Attachment 4; full document linked below), to determine an approach for inclusionary zoning and commercial linkage. Many communities in the valley and the state have these programs in an attempt to offset housing from the production of jobs that a new development generates. Included as Attachment 3 is a matrix, created by the Valley Home Store, of practices in neighboring communities. The proposed strategy does not explicitly meet the ACHP income range goal for Area Median Income (AMI) between 80% -120%, but the many of the units provided are expected to be in the Town Core, and accessible to transit, groceries, and other associated amenities, making them desirable to a wide array of residents. PZC work sessions and public hearings informed staff to include updated criteria defining the affordability range to include the above referenced AMI level, specify the “up or mid valley” (defined by the Eagle River Valley Housing Needs and Solutions plan, linked below) as the required location for the provision of off-site housing, and change the fee-in-lieu requirements. Below is a list of some of the properties that staff imagines may be subject to the inclusionary zoning requirements in the foreseeable future given the underdeveloped (or undeveloped) nature of the properties. It would not apply to properties with vested rights (like the Riverfront or Village at Avon). They are represented visually to the left. PZC’s recommendation to Town Council includes a condition to recognize the contribution of Lot C Avon Center at Beaver Creek subdivision (the Sheraton) for having provided twenty (20) units during the original PUD development. Since then, Lot C rezoned from PUD to Town Center, and would be required to offset employees during any development application. Staff has included language in the draft Ordinance to call out and acknowledge the unique circumstance whereby Lot C provided upfront community housing units that exceed the target goals in the Ordinance. Staff investigated where the employee generated number (.8 per room for Lodge / Hotel; .4 per room for property management; 2.8 per 1,000 square feet of commercial; .33 per residential dwelling unit) originated from. These numbers (except for the residential rate) are currently included in the ADC despite there being no offset required. Staff found that these number come from the 2008 Eagle County Nexus/Proportionality Analysis for Commercial Development/Workforce Housing Linkage report generated in January 2008 (included as a link below). The report surveyed 2,169 employers from mountain communities to determine these numbers. This number is used currently in Eagle County to determine mitigation rates for certain development applications. The linkage formulas continue to be used by Eagle County for calculations. The residential rate came from Telluride’s policy. The Mitigation Plan Required is subject to Community Development Director approval and includes five (5) Design Requirement types: (1) on–site construction; (2) off-site construction within Avon; (3) off-site construction outside Avon but in the “Up or Mid Valley”; (4) Deed restricting existing units within or outside of Avon but in the “Up or Mid Valley”; and (5) Fees-in-Lieu to for the fractional remainder. Allowing the provision of mitigation outside of Town boundaries is one of many important policy decisions this Amendment proposes. Also, the proposed language does not prioritize the type of mitigation provision (except for the fee-in-lieu). Instead, staff anticipates that applicants will devise creative methods of mitigation with the options available and does not want to unnecessarily burden development with Design Requirement typology limitations. Town Council should carefully weigh the implications of these measures. The Minimum Size of Housing Units (TABLE 7.20-15) is based in part off current code provisions for employee housing. Staff created the table with the assumption that while not directly tied to the AMI ranges contemplated in the ACHP, the type and location would be attractive. Below is the table, with another column that describes the square footage per employee that code would require. Building or complex name Address Acres Benchmark Shopping Center 82 Beaver Creek Boulevard 2.13 1st Bank 11 West Beaver Creek Boulevard 1.714 Christy Sports 182 Avon Road 0.928 Annex 142 Benchmark 1.496 Nottingham Commercial Lots 121 - 111 Nottingham Road 1.067 Avon Center Lot C 160 West Beaver Creek Boulevard 2.28 160 West Beaver Creek Boulevard 0.583 Nottingham Ranch 68-95 Post Boulevard 3.8 Chapel Square parcels 92 Benchmark 2 140 Benchmark 2.864 230 Benchmark 1.08 Avon Plaza 150 East Beaver Creek Boulevard 1.33 North-71 91 Beaver Creek Place 0.57 ANB Bank 71 Beaver Creek Place 0.76 51 Beaver Creek Place 0.59 After some deliberation with PZC, the fees-in-lieu portion of the process is proposed to only be triggered when less than a single unit is required for mitigation. Staff feels that this achieves the intent of the code section by generating units and not money. As written, the code requires Town Council to approve a resolution to determine the fee structure. An example of a proposed fee structure (taken from the Eagle County Affordable Housing Guidelines: Administrative Procedures) is illustrated below, with 80% and 100% AMI levels to illustrate the difference depending or other factors as appropriate. Calculation of Fee in Lieu 80% AMI 100% AMI Area Median Income for Family of 3 $ 62,640 $ 78,300 Maximum Initial Sales Price $ 213,150 $ 266,156 Affordable Price per square Foot $ 189.25 $ 236.31 Market Price per Square foot $ 350.60 $ 350.60 Administrative Fee 15% 15% Payment in Lieu per Square Foot $ 186.55 $ 131.43 Staff estimates the table below to be a fair representation of the current Inclusionary Zoning/ Commercial Linkage requirements of other jurisdictions. Staff does not guarantee these numbers but trusts that they provide a fair estimate of the overall appetite in different mountain communities. Some communities highly value employee housing but use different mechanisms to attain it. Jurisdiction Commercial Rate Residential Rate Eagle County 45% 45% Telluride 40% 60% Vail 20% 10% of GRFA San Jose, CA 20% 20% Basalt 20% 25% San Miguel County 15% 15% Snowmass 60% 60% Aspen/Pitkin 60% 60% Mt. Crested Butte ? 15% Crested Butte none none Frisco none none Silverthorne none none Finally, staff put everything together and analyzed the development scenarios for some recent projects to calculate the hypothetical mitigation regime needed. The table on the following page illustrates the estimated “footprint” of various projects and the accompanying number and type of units (and fee-in-lieu) that would be required for compliance with the code. The employee units required could be provided through any of the methods found in section 7.20(d). Note that staff interprets the Colorado World Resorts project to be under the “Property Management” Jobs Generated (.4 jobs per unit) category, as opposed to the other properties that are under “Lodge/ Hotel” (.8 jobs per unit). USE Units Emp. Rate Jobs Jobs/ Emp. Total Emp. Mitigation Rate Emp. Mitigation Required 3br 2 br 1 br Stud. Left Over 80% AMI Fee 100% AMI Fee Lodge/Hotel 190 .8/Rm 144 1.2 120.0 10%12.00 Prop. Management 0 .4/Rm 0 1.2 0.0 10%0.00 Commercial SF 11,000 2.8 30.8 1.2 25.7 10%2.57 14.57 4 0.57 42,009$ 29,756$ Wyndham USE Units Emp. Rate Jobs Jobs/ Emp. Total Emp. Mitigation Rate Emp. Mitigation Required 3br 2 br 1 br Stud. Left Over 80% AMI Fee 100% AMI Fee Lodge/Hotel 74 .8/Rm 59.2 1.2 49.3 10%4.93 Prop. Management 0 .4/Rm 0 1.2 0.0 10%0.00 Commercial SF 1,956 2.8 5.4768 1.2 4.6 10%0.46 5.39 1 1 0.64 47,481$ 33,632$ USE Units Emp. Rate Jobs Jobs/ Emp. Total Emp. Mitigation Rate Emp. Mitigation Required 3br 2 br 1 br Stud. Left Over 80% AMI Fee 100% AMI Fee Lodge/Hotel 142 .8/Rm 113.6 1.2 94.7 10%9.47 Prop. Management 4 .4/Rm 1.6 1.2 1.3 10%0.13 Commercial SF 536 2.8 1.5008 1.2 1.3 10%0.13 9.73 2 1 0.98 72,369$ 51,261$ Colorado World Resorts USE Units Emp. Rate Jobs Jobs/ Emp. Total Emp. Mitigation Rate Emp. Mitigation Required 3br 2 br 1 br Stud. Left Over 80% AMI Fee 100% AMI Fee Lodge/Hotel 0 .8/Rm 0 1.2 0.0 10%0.00 Prop. Management 81 .4/Rm 32.4 1.2 27.0 10%2.70 Commercial SF 0 2.8 0 1.2 0.0 10%0.00 2.70 1 0.95 70,509$ 49,943$ Sheraton Mtn Vista Lot B Hotel Development Bonus The Development Bonus section was originally proposed in 2009 as part of the ADC overhaul. Staff decided to propose an updated version of this section as an appropriate method to gain additional employee housing or other public benefits when applicants are seeking certain relief from the ADC. This is a likely alternative to the PUD process (of negotiated zoning) that should still combine public benefits with appropriate design. Benefits to the Town include: • Housing • LEED or similar certification • Public parking or transit contribution • Pedestrian enhancements • Streetscape enhancements • Water rights dedication Where an applicant may be allowed leniency in the following development standards: • Increased building height • Lot coverage (for the Town Center District) • Reduced parking minimums • Reduced building permit fees • Increased residential density (in the Residential High-Density RH district) • Reduced landscape area • Landscape unit requirements The list of benefits and leniency types could be reduced as Town Council finds appropriate. For example, Housing could be the only benefit type, and could only result in an increase of density. This specific example of a narrowed approach is not anticipated to provide for any additional housing in the Town Center Zone district, as there is no density maximum in that zone district. Since the PZC work sessions and public hearings, staff updated the language to include a housing density bonus applicable to the R-H (residential high-density) zone district, where the dimensional standards include a density maximum of dwelling units per acre. An applicant would have the ability to negotiate an increase to the units per acre of the project based on the provision of community housing units, defined as reaching an AMI of 80% -140%. This example came from Frisco, where the bonus is not part of a negotiated process, but by-right in certain zone districts near their core. ATTACHMENTS ATTACHMENT 1: Ordinance 19-03 ATTACHMENT 2: PZC Record of Decision and Recommendation ATTACHMENT 3: Eagle County Housing Tools Matrix ATTACHMENT 4: Sections from the Town of Avon Community Housing Plan ATTACHMENT 5: Public Comment LINKS 2008 Eagle County Nexus/ Proportionality Analysis for Commercial Development/ Workforce Housing Linkage https://www.eaglecounty.us/Housing/Documents/2008_NEXUS_commercial(4)/ Town of Avon Community Housing Plan https://www.avon.org/DocumentCenter/View/18728/Avon-Housing-Plan?bidId= Summary of Inclusionary Zoning Practices in Colorado Communities – Chafee County http://www.chaffeehousing.org/EndUserFiles/57044.pdf Eagle River Valley Housing Needs and Solutions http://minturn.org/pdf/PublicNotices/2018%20Eagle%20Valley%20Housing%20Needs%20and%20S olutions%20FINAL.pdf ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 1 of 11 TOWN OF AVON ORDINANCE 19-03 APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE FOR INCLUSIONARY ZONING AND DEVELOPMENT BONUS REGULATIONS RECITALS WHEREAS, the Avon Town Council initiated a code text amendment application (“Application”) to amend the text of the Avon Development Code (“ADC”) in accordance with ADC §7.16.040, Code Text Amendment; and WHEREAS, the Avon Planning & Zoning Commission (“PZC”) held public hearings on February 5, 2019 and February 19, 2019, after publishing and posting notice as required by law, considered all comments, testimony, evidence and staff reports provided by the Town staff prior to formulating a recommendation; and WHEREAS, after conducting the noticed Public Hearings, PZC made the required findings to recommend approval of the Application to the Avon Town Council; and WHEREAS, the Town of Avon (“Town”) is a home rule municipal corporation and body politic organized under the laws of the State of Colorado and possessing the maximum powers, authority and privileges to which it is entitled under Colorado law; and WHEREAS, pursuant to the home rule powers of the Town, the Avon Town Council has the power to adopt Health and Safety Codes, and make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the comfort, and convenience of its inhabitants; and WHEREAS, the Avon Town Council held Public Hearings on March 12, 2019 and April 9, 2019 after posting notice as required by law, considered all comments, testimony, evidence, Planning and Zoning Commission recommendations, and staff report prior to taking action on the Application; and WHEREAS, the Avon Town Council finds that changes to the Employee Housing Mitigation provides a method of delivering more community housing choices to residents and workers in the Town of Avon; and WHEREAS, the Avon Town Council finds that Development Bonus regulations offer flexible incentives for new development, that result in community benefits that outweigh any potential negative impacts of development that varies from the development standards in the ADC: and WHEREAS, the Application was reviewed with the criteria listed in ADC §7.16.040(c), Review Criteria, and are found to be in substantial compliance; and WHEREAS, the Application promotes and implements the goals and policies of the Avon Comprehensive Plan, including but not limited to implementation of the Avon Community Housing Plan by providing inclusionary housing requirements for new development; and ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 2 of 11 WHEREAS, former Lot C, Avon Center at Beaver Creek Subdivison, provided twenty (20) community housing units as part of the Sheraton Mountain Vista PUD in 2000 to serve all of former Lot C, and the Avon Town Council desires to acknowledge the previous community housing construction and provide a credit for housing mitigation for additional development on Lots 2A, 2B, 3 and 5 of Mountain Vista Resort Subdivision; and, WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Avon Town Council desires to comply with state law, the Avon home rule charter and the ADC 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 Avon Town Council, or any member of the Avon Town Council, supports, approves, rejects, or denies the proposed Application. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Avon Town Council. Section 2. Amendment to Section 7.20.100 - Employee housing mitigation. is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: “(a) Applicability. This Section shall apply to new multi-family residential (3 or more units), commercial, accommodation units, industrial and other non-residential development within the Town of Avon. This Section applies to all entities, including private, governmental and non-profit entities. (b) Exemptions. (1) Redevelopment of Pre-Existing Use and Change in Use. Redevelopment or remodeling of an existing use or the change from one use to another is exempt from the requirements of this Section, provided such activity does not create additional employment generation as determined by Table 7.20-14, below. Only the uses and floor areas that existed prior to the redevelopment or remodeling shall be exempt from the requirements of this Section. Any new floor area or unit or any change in use which creates additional employee generation as determined by Table 7.20-14 shall be subject to the provisions of this Section. (c) When applicable, employee housing mitigation shall be provided in accordance with these standards: To determine the number of employee housing units that must be provided, the following formulas shall be used: Table 7.20-14 Employee Housing Mitigation Formulas Factor Calculation ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 3 of 11 Commercial Size of development Leasable square feet Jobs generated 2.8 per 1,000 sq. ft. Rate x sq. ft./1,000 Employees generated 1.2 jobs per employee Jobs generated/1.2 Households generated 1.8 employees per unit Employees generated/1.8 Units requiredEmployee Mitigation Required 10% mitigation Households Jobs generated x 10% Lodging and Property Management Size of development # of rooms or # of units Jobs generated Lodge/hotel - # of rooms x 0.8 0.8/ room; Prop. management - # of units x 0.4 0.4/ unit Employees generated 1.2 jobs per employee Jobs generated/ 1.2 Households generated 1.8 employees per unit Employees generated/ 1.8 Units requiredEmployee Mitigation Required 10% mitigation Households Jobs generated x 10% Residential Size of development # of Dwelling Units Jobs generated .33 per dwelling unit # of units x 0.33 Employees generated 1.2 jobs per employee Jobs generated/1.2 Employee Mitigation Required 10% mitigation Jobs generated x 10% Note: The required employee housing mitigation shall be rounded to the nearest whole number. (d) Methods of Employee Housing Mitigation. General Requirements. All Employee Housing Mitigation units shall be subject to a deed restriction acceptable to the Town and enforceable by the Town which limits occupancy of Employee Housing Mitigation units to persons with full-time employment in Eagle County. For any of the following Housing Mitigation Methods, all proposed Employee Housing Mitigation unit(s) shall comply with the minimum size requirements shown in table 7.20-15, and all applicable design requirements. TABLE 7.20-15 Minimum Size of Housing Units ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 4 of 11 Type Minimum Size of Unit (SF) Number of Employees Housed Studio 500 1.25 1 bedroom 750 1.75 2 bedroom 900 2.25 3 or more bedroom 1,225 3.5 No Credit Given: If the gross residential floor area (GRFA) of the proposed Employee Housing Mitigation unit(s) is in excess of the minimum required gross residential floor area (GRFA), the additional gross residential floor area (GRFA) shall not be eligible for use as any form of future credit or for the commercial linkage or inclusionary zoning housing mitigation. Design Requirements: (1) Construction of Employee Housing Mitigation unit(s) on the site on which the development is proposed. (2) Construction of deed restricted Employee Housing Mitigation unit(s) within the Town of Avon, provided such land, site or structure has not been previously deed-restricted to employee or affordable housing by any party. (3) Construction of Employee Housing Mitigation unit(s) outside the Town of Avon but within the Eagle Valley, provided such land, site or structure has not been previously deed- restricted to employee or affordable housing by any party. Prior to construction of such unit(s), consent of the relevant jurisdiction or homeowner’s association (if required) to placement of a deed restriction on the unit(s) must be obtained, in addition to any required land use approvals. Units outside of the Town of Avon must be within the 80% - 140% AMI range, as defined by the Avon Comprehensive Plan, within the Up or Mid Valley, as defined by the Eagle River Valley Housing Needs and Solutions plan. (4) Deed restricting existing free market unit(s) within the Town or the Eagle Valley. i. As a condition of approval when the deed restriction of existing free market unit(s) is proposed, the Applicant must obtain the approval of the Town for the specific unit(s) to be deed restricted. The Applicant must demonstrate to the satisfaction of the Town that (a) the long-term affordability of the proposed Employee Housing Mitigation unit(s) is adequately protected, considering issues including but not limited to long term maintenance and homeowner’s assessments; and (b) the affected property does not prohibit the type of housing proposed. The Town may request additional information about the proposed unit(s) as reasonable to make such a determination. Such approval may contain provisions to ensure that any Employee Housing Mitigation unit(s) subject to a deed restrictions meets long term standards for maintenance and affordability. ii. Employee Housing Mitigation units outside of the Town of Avon must be within the 80% - 140% AMI range, as defined by the Avon Comprehensive Plan, within ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 5 of 11 the Up or Mid Valley, as defined by the Eagle River Valley Housing Needs and Solutions plan. iii. Prior to deed restriction of Employee Housing Mitigation unit(s) when located outside the Town, consent of the relevant jurisdiction or homeowner’s association (if required) to placement of a deed restriction on the unit(s) must be obtained, in addition to any required land use approvals. (5) Fees-in-lieu as defined by Town Council resolution updated every two years, may be provided only for any fractional remainder of the requirement generated under this chapter totaling less than 1.0 employee, subject to the following requirements: i. Time of Payment and Use of Funds. Payment of the in-lieu fee shall be made to the Town prior to the issuance of any building permits for the free market portion of the development. ii. Interest Bearing Account. The Town shall transfer the funds to an interest-bearing account. iii. Authorized Uses of Fees. The funds, and any interest accrued, shall be used only for the purpose of planning for, subsidizing or developing Community Housing for qualified Eagle County employees. iv. Refund of Fees. (A) Ten Year Limit. Fees collected pursuant to this section may be returned to the then present owner or property for which a fee was paid, if the fees have not been spent within Ten (10) years from the date fees were paid, unless the Town Council shall have earmarked the funds for expenditure on a specific project, in which case the Town Council may extend the time period by up to three (3) more years. (B) Written Request. To obtain the refund, the present owner must submit a written request to the Director within one (1) year following the end of the tenth (10th) year from the date payment was received. (C) Payments Determined. For the purpose of this Section, payments collected shall be deemed spent on the basis that the first payment shall be the first payment out. (e) Mitigation plan required. The Mitigation plan shall include the following: (1) Calculation and method. The calculation of, and method by which Employee Housing Mitigation is to be provided, in compliance with Table 7.20-14 and Section 7.20.100(d). ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 6 of 11 (2) Unit Descriptions. If deed restricted Employee Housing Mitigation units are to be developed, a site plan and building floor plans (if applicable), illustrating the number of units proposed, their location, the number of bedrooms, gross floor area of each unit, and the rental/sale mix of the development. (3) Timing of review/amendments. The Employee Housing Mitigation plan shall be submitted to and approved by the Director prior to, or concurrent with, application to the Town for the free market portion of the initial development plan. Review and approval of plans by the Town for construction of Employee Housing Mitigation shall be prior to, or concurrent with, the free market portion of the development plan. Any amendment to the Employee Housing Mitigation plan shall require Director approval. (f) Certification of Action. The Director, or its designee, shall certify the approval, approval with conditions, or denial of the Employee Housing Mitigation plan, or of an amendment thereto. Such approval, approval with conditions, or denial shall be based on compliance with the provisions of this Chapter. (g) Appeal. Upon final approval or denial of the Employee Housing Mitigation plan by the Director an appeal to Town Council may be filed pursuant to Section 7.16.160 - Appeal. (2) Employee housing units shall be located on-site. The applicant may propose alternatives to on-site employee housing mitigation in accordance with the alternative equivalent compliance process set forth in Section 7.16.120. When considering proposals for off- site employee housing, preference shall be given to locations closer to the applicant's property, locations in the Town and locations which are served by mass transit. (3) Employee housing units shall be owned by the owner of the commercial space for which the employee housing units serve and shall be used exclusively by employees of such commercial space; or employee housing units shall be offered for sale subject to a deed restriction that restricts the appreciation of price and which restricts eligible buyers and renters in accordance with the form of price controlled housing deed restriction adopted by the Town. Applicants may voluntarily propose to meet the employee housing units with rent controlled units through the alternative equivalent compliance process. (4) Employee housing mitigation shall be satisfied by providing one (1) residential studio unit, one (1) bedroom in a residential unit or any combination thereof, for each required employee housing unit of mitigation. The minimum size for a studio unit shall be five hundred (500) square feet and the minimum size for a one-bedroom residential unit shall be seven hundred fifty (750) square feet.” Section 3. Amendment to Section 7.20.110 Development bonus. is hereby added to read as follows, with underline indicating language to be adopted: “7.20.110 Development bonus. Definitions. For this section: ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 7 of 11 Development bonus means an incentive-based tool that permits a project increased height, lot coverage (for the Town Center District), reduced parking minimums, increased residential density (in the Residential High Density RH district) reduced landscape area, or landscape unit requirements; in exchange for helping the community achieve the public policy goals as defined below. Development bonus type means the offer provided by the proposal for consideration by the review authority that corresponds to one of the listed in section (e), below. (a) Purpose. Development bonuses may be awarded for proposed development projects in the Town Center, Mixed-Use Commercial, Neighborhood Commercial, and Residential High- Density zone districts where the application meets Town goals and complies with minimum development standards and requirements. A development bonus may be allowed where the negative impacts of such allowance on the public or on adjacent property owners do not outweigh the benefits to the public. The public benefits identified in this section are related to promoting the viability and functionality of higher density and more intense site development. Development bonuses that provide housing are preferred. (b) Applicability. Development bonuses are only allowed for consideration where the applicant has demonstrated substantial (c) Procedures. An application for a development bonus shall be submitted concurrently with the principle application for development of the property and shall follow the review procedures, notice requirements, and hearing requirements of the underlying development application. A public hearing and recommendation by PZC, followed by a public hearing by Town Council is required before the Town Council takes action on any application for a development bonus. A development bonus shall only be effective and binding on the Town if stated in a development agreement which contains provisions stating that the development bonus is contingent upon the performance and completion by the applicant property owner of any public facilities, public improvements and/or conveyance of a property interest for public facilities or improvements offered for the development bonus. (d) Criteria. The following criteria for specific public benefits shall be considered when evaluating development bonuses: (1) General criteria. (i) Absolute maximum. The absolute cumulative maximum potential development bonus shall be a variation of 20% from the standard required in the development code, except for Section 7.20.110(e)(1)(i) and (ii). (ii) Cumulative development bonuses. Subject to the absolute maximum for development bonus stated in sub-section (i) above, multiple development bonuses may be awarded by the Town Council and may be applied cumulatively to a property. (iii) Additional water rights dedication. Additional water rights shall be dedicated for any development bonus which increases the water consumption for the property ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 8 of 11 and such additional water rights dedication shall not be considered as a dedication of surplus water right as defined in Development Review Type 6, below. (iv) Council review and approval. Approval of a development bonus, if any, shall be determined by Town Council in the Town Council’s discretion after considering the Review Criteria. Approval of a development bonus shall be by ordinance and shall be documented in a development agreement. (2) Review Criteria. The PZC and Town Council shall consider the following criteria as the basis for a recommendation or decision for a development bonus proposal. (i) Exceed minimum standards of one or more of the development bonus types. A development bonus may only be considered and awarded where the development bonus type exceeds the minimum requirements established elsewhere in the Development Code. (ii) Promote Town goals and policies. The public benefits shall generally promote or implement the goals or policies of the Avon Comprehensive Plan and purposes stated in this Development Code. (iii) Payment-in-lieu. For all development bonus types, where an on-site contribution or land dedication is not practical or appropriate, the Town Council may consider a cash contribution towards such facility or improvement by a payment-in-lieu of dedication. The amount of the payment-in-lieu shall be calculated by considering current and projected real estate values and construction costs. The amount of a payment-in-lieu should be the equivalent value of an on-site dedication considering the additional administrative, transaction, financing and timeframe costs associated with properly utilizing cash proceeds. (iv) Mitigation of impacts. The reviewing authority may require an analysis and may require mitigation of the additional impacts of a development bonus on all public facilities, infrastructure, and services which serve the property, including but not limited to public infrastructure, streets, additional water rights required to serve the development, fire protection, ambulance services, schools, parks, and recreation. In addition, where a development bonus may result in negative impacts to adjacent or nearby properties or impacts to the general public, the Town may require mitigation of such impacts as a condition to granting the development bonus. (v) Location and design. The location and design of any contribution towards public parking, transit, pedestrian enhancement, streetscape improvement, or civic facility shall be in conformance with the Town of Avon’s Comprehensive Plan and other applicable plans and regulations of the Town, shall be acceptable to the Town taking into consideration functionality, current and projected demand, and long term maintenance and operation costs, and shall include such legal documents as are deemed necessary and acceptable to the Town. ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 9 of 11 (e) Development bonus types (1) Housing. A development bonus may be awarded that meets the following criteria: (i) A density bonus where: (A) A minimum of 50 percent of the total number of bonus units is provided within the 80% - 140% Area Median Income (AMI) range; (B) For each additional dwelling unit allowed, at least two housing units at within the 80% - 140% AMI range, as defined by the Avon Comprehensive Plan, are provided on property outside of the subject property, but within the Town or within one mile of any corporate limit of the Town; (C) Payment-in-lieu for providing community housing based upon existing real estate values, market conditions, market trends, the anticipated timeframe to utilize funds to secure and provide housing, transactional costs and administrative costs for the Town to secure and provide housing, and determined by the Town Council fees-in-lieu resolution; or, (ii) Other development bonuses may be made in all applicable zone districts through the provision of community housing or a payment-in-lieu. (2) LEED certification or similar certification demonstrating high building efficiency performance. A development bonus may be awarded for certification. (3) Public parking or transit contribution. A development bonus may be awarded for contributions towards public parking and/or transit. (4) Pedestrian enhancements. The following criteria shall be considered for development bonuses for pedestrian enhancements: (i) Off-site pedestrian enhancements shall be no further than 2,500 feet (as measured by the most direct existing or planned pedestrian routes) from the property boundary of the development. (ii) On-site pedestrian enhancements shall be open to the public and shall be owned and maintained by the property owner or an owners’ association. (5) Streetscape enhancements. A development bonus may be awarded for streetscape enhancements. Streetscape enhancements may include plazas, courtyards, fountains, public art, benches, tables, kiosks, pocket parks, play areas and other enhancements to public pedestrian areas. The following criteria shall be considered for development bonuses for streetscape enhancements: (i) Streetscape enhancement shall be no further away than 1,500 feet from the property boundary. (ii) On-site streetscape enhancements shall be open to the public and shall be owned and maintained by the property owner or an owners’ association. ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 10 of 11 (iii) Civic facility. A development bonus may be awarded for the provision of land or improvements for civic facilities. Civic facilities may include a library, health clinic, municipal facilities, performing arts venues, or other facilities which are open to the public and promote the health, safety, welfare or culture of the Avon community. The civic facility shall be located on-site or, if off-site, shall be within a reasonable proximity of the property to benefit the property. (6) Water rights dedication. A development bonus may be awarded for the provision of surplus water rights which exceed the water rights dedication required to serve the property.” Section 4. Codification of Amendments. The codifier of the Town’s Municipal Code, Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any typographical error in the enacted regulations, provided that such correction shall not substantively change any provision of the regulations adopted in this Ordinance. Such corrections may include spelling, reference, citation, enumeration, and grammatical errors. Section 5. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term “provision” means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term “application” means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 6. Effective Date. This Ordinance shall take effect thirty (30) days after final adoption in accordance with Section 6.4 of the Avon Home Rule Charter. Section 7. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 8. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on March 12, 2019 and setting such public hearing for April 9, 2019 at the Council Chambers of the Avon Municipal Building, located at One Hundred Mikaela Way, Avon, Colorado. ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code FIRST READING – March 12, 2019 Page 11 of 11 BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Acting Town Clerk ADOPTED ON SECOND AND FINAL READING on April 9, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Acting Town Clerk APPROVED AS TO FORM: ____________________________ Eric J. Heil, Town Attorney ATTACHMENT 2 ATTACHMENT 2 ATTACHMENT 3 PZC Recommendations: #CTA19001 Page 1 of 2 PLANNING AND ZONING COMMISSION FINDINGS OF FACT AND RECCOMENDATION TO TOWN COUNCIL DATE OF DECISION: February 19, 2019 TYPE OF APPLICATION: Code Text Amendments PROPERTY LOCATION: Town of Avon FILE NUMBER: #CTA19001 APPLICANT: Town of Avon These recommendations are made in accordance with the Avon Development Code (“Development Code”) §7.16.040(c): DECISION: Recommendation to approve the Title 7: Development Code Text Amendments. FINDINGS: 1. The application is complete; 2. The application provides sufficient information to allow the reviewing authority to determine that the development application complies with the relevant review criteria; 3. The text amendments were reviewed with the criteria listed in Avon Municipal Code Section 7.16.040(c), Review Criteria, and are found to be in substantial compliance as outlined in the staff report for the February 5 and 19, 2019 public hearings; 4. The text amendments promote the health, safety, and general welfare of the Avon Community; 5. The text amendments promote and implement the goals and policies of the Avon Comprehensive Plan; 6. The text amendments implement the Avon Community Housing Plan by providing inclusionary housing requirements for new development; 7. The text amendments promote and implement the purposes stated in the Development Code, including Section 7.04.030 (n), by achieving a diverse range of attainable housing types and price points to serve a diverse and stable full-time residential community; 8. The Lot C, Avon Center at Beaver Creek property provided twenty (20) perpetually deed-restricted dwelling units on the property at the initial stage of development, as required by the original PUD and before a rezoning took place; and 9. The text amendments are necessary and desirable to respond to changed conditions and new planning concepts. CONDITION: 1. Town staff and the Lot C owners will work together to recognize and offset deed restricted dwelling units in the ordinance. ATTACHMENT 3 PZC Recommendations: #CTA19001 Page 2 of 2 THESE FINDINGS OF FACT AND RECORD OF DECISION ARE HEREBY APPROVED: BY:______________________________________ DATE: ___________________ PZC Chairperson ATTACHMENT 4 The Comprehensive Plan: • Achieve a diverse range of housing densities, styles, and types, including rental and for sale, to serve all segments of the population. • Coordinate with neighboring communities to provide an attainable housing program that incorporates both rental and ownership opportunities, affordable for local working families. Goals and Objectives of this Housing Plan are as follows: • 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 at deed restricted units to the inventory in the short term. • Strengthen regional partnerships with other communities and entities (i.e. Habitat for Humanity, other municipalities, Eagle County) 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. Strengths and Assets • An inventory of 670 price-controlled housing units, 63 of which are deed restricted for sale units that were a result of successful PUD negotiations; Policy • Update mitigation/linkage policies to be more proactive in addressing housing needs. Current policies are limited to very narrowly defined locations and development requests, and the current mitigation rate is low compared with peer communities. • Consider implementing an inclusionary housing policy. Inclusionary housing was considered in the 2010 code update, but was not adopted at that time. Inclusionary housing is a tool to create housing affordable to locals. It is recommended to look at inclusionary housing and mitigation/linkage at the same time, to better understand how the two tools complement each other, support policy goals, and maintain a level playing field for commercial and residential development. Inclusionary Housing A percentage of residential units in new subdivisions/PUDs are workforce housing. Market homes support workforce units. Only effective if new subdivisions/PUDs are developed/ redeveloped. Carbondale, Eagle, Eagle County, San Miguel County Linkage/Mitigation Requiring new residential and/or commercial development to contribute to workforce housing relative to demand generated by the new construction. For residential, mitigation rate often increases with house size, and deed restricted units are typically exempt. Fees in lieu provides revenue stream that fluctuates with building activity. Documented relationship between fee and impact required. Telluride, Aspen, Mt. Crested Butte ATTACHMENT 5 RUTH O. BORNE ATTORNEY AT LAW P.O. BOX 7833 AVON, CO 81620 (970) 748-1187 FAX (970) 748 -1189 ruth@bornelaw.com Admitted to practice in Florida & Colorado February 1, 2019 Town of Avon Planning & Zoning Commission P.O. Box 975 Avon, CO 81620 RE: MOUNTAIN VISTA SUBDIVISION – SHERATON MOUNTAIN VISTA PROPOSED INCLUSIONARY ZONING Dear the Town of Avon Planning & Zoning Commission: We are writing this letter of behalf of Points of Colorado, Inc. and the recent proposal for inclusionary zoning for Town Center. Sheraton Mountain Vista was approved by the PUD Development Plan and Development Agreement for Lot C, Mountain Resort Subdivision, Town of Avon, Eagle County, Colorado almost twenty (20) years ago by Series 2000, Ordinance 00-02 in accordance with the requirements of the Avon Municipal Code, Section 17.20.110. The vesting for Sheraton Mountain Vista PUD (“SMV”) expired on February 22, 2012. SMV was a three-phased PUD approval consisting of: Phase 1-A: 50 Time-Share Units; 20 Deed Restricted Employee Units and 5,800 sq. ft. GLFA of ground floor commercial space. Phase 1-B: 35 Time-Share Units; 15,750 sq. ft. GLFA three-story freestanding commercial building (at least 5,250 sf GLFA on the ground level retail and 10,500 sf GLFA of the second and third floors office/retail). This is now the Town Hall for the Town of Avon Phase 1-C: 48 Time-Share Units; 125-unit Hotel with a minimum of 5,500 sf GLFA ground-level commercial area suitable for retail use and 4,800 sf GLFA of restaurant space in the hotel. Phase 1A and 1B were completed in 2002 by Points of Colorado, Inc. Since that time, the Town has seen many changes. What has not changed in almost 20 years is the need for affordable housing, which continues to be a challenging issue for all mountain resort communities. ATTACHMENT 5 The 20 Deed Restricted Units at SMV are unique as no other project in 20 years has provided so much deed restricted housing with a mixed-use development in the Town of Avon. Based upon the current Town requirements for housing, only eight (8) units are be required Phase 1A & 1B. That leaves an employee housing surplus of 12 units. Community Development provided the following calculation: USE UNITS EMP. RATE # OF EMP. JOBS/PER EMP. JOBS HOUSEHOLD GEN. UNITS MITIGATION UNITS REQ'D Lodge/Hotel *190 .8/Rm 144 1.2 120 1.8/per 66.66 10% 6.66 SQ FT Commercial 11,000 2.8 30.8 1.2 25.66 1.8/per 14.25 10% 1.42 8 UNITS Currently, there are 20 Deed Restricted Units constructed and occupied. We are seeking consideration from the Planning & Zoning Commission that SMV has satisfied its housing requirements now and in the future. Please consider this request and look forward to discussing at the regularly scheduled meeting on Tuesday, February 5, 2019. Thank you in advance for your consideration. Kind Regards, BORNE LAW Ruth O. Borne cc: M. Pielsticker, Community Development; D. Weaver, Points of Colorado, Inc. 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: PUBLIC HEARING: Ordinance No. 19-02 Tobacco and Cigarette Tax DATE: March 6, 2019 SUMMARY: Ordinance No. 19-02 is presented to Council for consideration on second and final reading. Per the Avon Charter, Council must conduct a public hearing prior to taking final action. Council approved first reading at the February 26, 2019 regular Council meeting. Ordinance No. 19-02 would implement the Avon tobacco and cigarette tax passed by the voters last November by adopting the various rules and procedures. The 40% tax on the sale of tobacco products is a sales tax; therefore, it can easily be included in Chapter 3.08 Sales Tax. The $3 per pack tax on cigarettes is an “excise tax” and not a sales tax; therefore, it requires its own chapter with procedures and regulations for filing tax returns, inspections and enforcement. A new Chapter 3.10 Cigarette excise tax is proposed that is very similar to Chapter 3.08 Sales Tax with regard to procedures for administering the tax. The tax approved by the voters last November is currently enforceable because the Tobacco Licensing regulations requires payment of local taxes as a condition to holding a tobacco retailer license. PROPOSED MOTION: “I move to approve second and final reading Ordinance No. 19-02 Amending Chapter 3.08 Sales Tax and Enacting Chapter 3.10 Cigarette Excise Tax.” Thank you, Eric ATTACHMENT A: Ordinance No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 1 of 12 TOWN OF AVON, COLORADO ORDINANCE NO. 19-02 AMENDING CHAPTER 3.08 SALES TAX AND ENACTING CHAPTER 3.10 CIGARETTE EXCISE TAX 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, Avon Town Council referred a ballot measure entitled Tax Increase on the Sale of Tobacco and Nicotine Products to the November 6, 2018 election by Resolution No. 18-12, which was passed by the Avon voters; and WHEREAS, the Avon Town Council finds that amendments to the Avon Municipal Code will implement the sales tax on tobacco products and the excise tax on cigarettes and will thereby 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 Section 3.08.020(4). A new Section 3.08.020(4) of the Avon Municipal Code is hereby enacted to read as follows: ATTACHMENT A: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 2 of 12 “3.08.020(4) Upon the purchase price paid or charged upon all retail sales and purchases of tobacco products as defined Section 5.10.030.” Section 3. Enactment of Section 3.08.030(a). Section 3.08.030(a) of the Avon Municipal Code is hereby amended by adding language so that it reads in its entirety as follows: “There is imposed upon all sales of all items specified in Section 3.08.020 within the boundaries of the Town a tax equal to four percent (4%) of gross receipts derived from sales of tangible personal property and services pursuant to this Chapter except that the sales tax imposed on tobacco products shall be forty percent (40%).” Section 4. Enactment of Chapter 3.10 – Cigarette Excise Tax. The Avon Municipal Code is hereby amended by enacting a new Chapter 3.10 – Cigarette Excise Tax, to read as follows: “3.10.010 - Words and phrases defined. Cigarette shall mean cigarette as is defined in Section 5.10.030. 3.10.020 – Cigarette excise tax. (a) There is imposed upon all sales of all cigarettes a cigarette excise tax in the amount of fifteen cents per cigarette or three dollars per pack of twenty cigarettes. 3.10.030 - Unlawful to advertise absorption of tax. It is unlawful for any retailer to advertise, to hold out to state to the public or to any consumer, directly or indirectly, that the tax or any part thereof imposed by this Chapter will be assumed or absorbed by the retailer, or that it will not be added to the selling price of the property sold; or if added, that any part thereof will be refunded. 3.10.040 - License for retailer. It is unlawful for any person to engage in the business of making cigarette sales without first having obtained a tobacco retailer license in accordance with Chapter 5.10, which license shall be granted and issued by the Director of Finance, and shall be in force and effect until suspended or revoked. 3.10.050 - Duty to keep books and records. It shall be the duty of every person required by the provisions of Chapter 5.10 to obtain a tobacco retailer license, to keep and preserve suitable records of all sales made by him or her, and such other books or accounts as may be necessary to determine the amount of tax for the collection of which he or she is liable hereunder. It shall be the duty of every such person to keep and preserve for a period of three (3) years all invoices of goods and merchandise purchased for resale, and all such books, invoices and other records shall be open for examination at any time by the Director of Finance or his or her duly authorized agents. 3.10.060 – Cigarette excise tax return. (a) Every person, partnership or corporation required to obtain a tobacco retailer license pursuant to the provisions of Chapter 5.10 shall file a cigarette excise tax return, upon forms approved by the Director of Finance, on or before the twentieth day of each calendar month for the sales activities of the preceding calendar month; providing, however, that, if the accounting methods regularly employed by the licensed retailer in the transaction of his or her business, or other conditions, are such that reports of sales made on a calendar-monthly basis will impose unnecessary hardship, the Director may, upon request of such retailer, accept reports at such intervals ATTACHMENT A: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 3 of 12 as will, in his or her opinion, better suit the convenience of the taxpayer, and will not jeopardize the collection of the tax; and provided further, that a retailer doing business in two (2) or more places or locations may file one (1) return covering all such business activities in the Town. (b) The returns so filed shall contain such information as may enable the Director to accurately determine the amount of tax collected by the person, partnership or corporation filing the return, but, in all cases, shall contain the following information: (1) The amount of gross taxable cigarette sales made for which the return is filed; (2) The total quantity of cigarettes returned by the purchaser as a result of a return of goods sold by the retailer, provided the original sale was a taxable transaction; (3) The total, fair market value of any property received by the retailer as a result of an exchange of property, provided the property so received is held by the retailer to be sold or leased to a user or consumer in the regular course of his or her business; (4) The total quantity of cigarettes sold on credit, the obligation for which is not secured by a conditional sales contract, chattel mortgage or other security instrument entitling the retailer to repossess the item sold, which are found to be worthless and which may be deducted as bad debts on the retailer's federal income tax return. (c) The return shall be accompanied by an amount equal to the cigarette excise tax required to be collected by the tobacco retailers but which, in no case, shall be less than the amount actually collected, nor less than fifteen cents per cigarette sold. (d) All other persons, partnerships and corporations shall pay to the Director the amount of any tax due under the provisions of Section 3.10.020 not less than fifteen (15) days after the date that the tax becomes due. 3.10.070 - Examinations of returns—refunds—deficiencies—notice of appeal. (a) As soon as practicable after any tax return is filed, the Director of Finance shall examine it, and if it then appears that the correct amount of tax to be remitted is greater or less than that shown in the return, the tax shall be recomputed. (b) If the amount paid exceeds that which is due, the excess shall be refunded or credited against any subsequent remittance from the same taxpayer. (c) If the amount paid is less than the amount due, or if the Director of Finance determines that any amount of cigarette excise tax is due and unpaid, for any reason, the difference between the amount paid and the amount owed to the Town, together with interest thereon at the rate of one and one-half percent (1½%) per month from the time the return was due (unless provided otherwise herein), shall be paid by the vendor within fifteen (15) days after written notice and demand to him or her from the Director of Finance. (d) An appeal of a notice of assessment, or demand issued to a vendor or taxpayer for failure to file a return, underpayment of tax owed or as a result of an audit shall be submitted in writing to the Finance Director within twenty (20) calendar days from the date of the notice of assessment or demand. Any such appeal shall identify the amount of tax disputed and the basis for the appeal. 3.10.080 - Penalty—disregard for rules. If any part of the deficiency is due to negligence or intentional disregard of authorized rules and regulations with knowledge thereof, but without intent to defraud, there shall be added ten percent (10%) of the total amount of the deficiency; and in such case, interest shall be collected at the rate of one and one-half percent (1½%) per month on the amount of the deficiency from the time the return was due, from the person required to file the return, which interest and addition shall become due and payable within fifteen (15) days after written notice and demand by the Director of Finance. ATTACHMENT A: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 4 of 12 3.10.090 - Penalty—fraud. If any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added fifty percent (50%) of the total amount of the deficiency, and in such case the whole amount of the tax unpaid, including the additions, shall become due and payable fifteen (15) days after written notice and demand by the Director of Finance, and an additional one and one-half percent (1½%) per month on said amounts shall be added from the date the return was due until paid. 3.10.100 - Service charge—returned checks. If a check in payment of any cigarette excise tax is returned unpaid, a processing charge of five dollars ($5.00) will be added to any amount due and owing. 3.10.110 - Investigation of retailer's books. For the purpose of ascertaining the correctness of a return, or for the purpose of determining the amount of tax due from any taxpayer, the Director of Finance may hold investigations and hearings concerning any matters covered by this Chapter, and may examine any relevant books, papers, records, or memoranda of any such person, requiring the attendance of such taxpayer, or any officer or employee of such taxpayer, or of any person having knowledge of such sales, and taking such testimony and proof as may be necessary to properly ascertain any tax liability. The Director shall have power to administer oaths to any person in the course of such investigations or hearings. Production of documents and attendance of witnesses shall be requested by the Director on his or her own motion or on motion of any party; any request for production or attendance shall inform persons that compliance is voluntary but that, if the request is not complied with, the Director may apply to the Municipal Judge for issuance of a subpoena. 3.10.120 - Judge compels attendance. The Municipal Judge of the Town, upon the application of the Director of Finance, may compel the attendance of witnesses, the production of books, papers, records or memoranda, and the giving of testimony before the Director of Finance or any of his or her duly authorized agents, by the issuance and enforcement of subpoenas, in the same manner as production of evidence may be compelled before the court. 3.10.130 – Cigarette excise tax information confidential. (a) Except in accordance with judicial order, or as otherwise herein provided, the Town shall not divulge any information gained from any return filed or as a result of any investigation or hearing held pursuant to the provisions of this Chapter. (b) Nothing contained in this subsection shall be construed to prohibit: (1) The delivery to a person, or to his or her duly authorized representative, of a copy of any return filed in connection with his or her tax; (2) The publication of statistics so classified as to prevent the identification of particular reports or returns and the items thereof; (3) The inspection by the Town Attorney, or any other legal representative of the Town, of the return or other information relating to any taxpayer who may become involved in litigation with the Town in which the said information may become material. (c) Reports and returns shall be preserved for three years, and thereafter until the Director of Finance, with the approval of the Town Manager, shall order them destroyed. ATTACHMENT A: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 5 of 12 3.10.140 - Estimated taxes and assessment thereof. (a) If any person neglects or refuses to make a return for, or payment of any of the taxes levied by this Chapter when the same become due, the Director of Finance shall, at some date subsequent to five (5) days after the date for the making of such return or the payment of such taxes, give written notice to the person responsible for making the return or paying the taxes or the lack of the filing of such return or payment of said taxes, which notice shall notify the taxpayer, or other person responsible for the return of the tax, that the same must be paid within five (5) days from the date of the receipt of said notice. (b) If the return is not filed, or the taxes are not paid, within five (5) days after receipt of such notice, the Director may make an estimate, based upon such information as may be available to him or her, of the amount of taxes due for the period or periods for which taxpayer is delinquent and shall add thereto a penalty in an amount equal to ten percent (10%) of the estimated tax, together with interest on the estimated tax at the rate of one and one-half percent (1½%) per month from the due date thereof, and may assess said amount against the delinquent taxpayer by giving the taxpayer written notice thereof, which notice shall require the taxpayer either to pay the amount assessed by the Director of Finance or to petition him or her for a correction of the estimate within a period of ten (10) days thereafter. Any such petition for correction shall be in writing, and any facts or figures in support thereof shall be submitted upon the oath of the taxpayer. The Director shall consider the matters submitted by the taxpayer, and shall make a decision as to the proper amount of taxes, penalty and interest due, which decision shall be final and binding. 3.10.150 - Unpaid tax a prior lien. (a) The taxes imposed by Section 3.10.020 shall be a first and prior lien upon the goods and business fixtures owned or used by any tobacco retailer required by the provisions of Section 3.10.060 to submit a return and make payment of the taxes collected, except the stock of goods held for sale in the ordinary course of business, until said taxes are paid in full. (b) The lien created by subsection (a) above shall be construed to be liens and encumbrances upon the specific items of personal property therein enumerated, and shall take precedence over all other liens, encumbrances or claims of whatsoever nature, and shall immediately attach to such items without the necessity of the filing of any notice of lien thereof. 3.10.160 - Sale of stock or quitting business. (a) Any retailer who sells out his or her business or stock of goods or who quits business, shall be required to prepare and file a cigarette excise tax return as provided in this Chapter within fifteen (15) days subsequent to the date of the completion of said sale or the quitting of business, and the purchaser thereof, if any, shall be required to withhold sufficient of the purchase money to cover the amount of the tax due and unpaid, until such time as the retailer shall produce a receipt from the Director of Finance showing that all such taxes have been paid and that no further taxes are due. (b) If the purchaser of a business or stock of goods shall fail to withhold the purchase money as above provided, and the tax shall be due and unpaid after the fifteen-day period allowed, such purchaser shall be personally liable for the payment of the taxes unpaid by the former owner, and the liens created by Section 3.10.150 shall immediately attach to the personal property so purchased; provided, however, that the retailer so selling or quitting business shall not be relieved in any manner of his or her liability for payment of any of said taxes due. 3.10.170 - Enforcement of taxes and foreclosure of liens. (a) If any taxes, penalty or interest imposed by this Chapter and shown due by returns filed by the taxpayer, or as shown by assessment duly made as provided herein, are not paid within fifteen (15) days after the same are due, the Director of Finance shall issue a warrant under his or her official seal directed to any duly authorized revenue collector, or to the sheriff of any county in this State commanding him or her to levy upon, seize and sell sufficient ATTACHMENT A: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 6 of 12 personal property of the tax debtor which is subject to the liens created by Section 3.10.150 found within his or her county for the payment of the amount due, together with interest, penalties and costs. (b) Simultaneously with the issuance of said warrant, the Director shall issue a notice of tax lien, setting forth the name of the taxpayer, the amount of the tax, penalties, interest and costs, the date of the accrual thereof, and that the Town claims a first and prior lien therefor on the tangible personal property of the taxpayer subject to said liens. (c) Such notice shall be on forms prepared by the Director, shall be verified by him or her, and shall be filed in the office of the clerk and recorder of any county in this State in which the taxpayer owns tangible personal property subject to said liens. (d) Upon the filing of said notice of lien, the effective date of the lien shall relate back to the date of the first transaction for which any tax is due. 3.10.180 - Refunds—procedure. (a) A refund shall be made or credit allowed for any tax paid under protest by any purchaser who has or claims to have an exemption as in this Chapter provided. Such refund shall be made by the Director of Finance after compliance with the following conditions precedent: (1) Application. Applications for refund must be made within ninety (90) days after the purchase or use of cigarettes on which the exemption is claimed, and must be supported by the affidavit of the purchaser, accompanied by the original paid invoice or sales receipt and a certificate issued by the seller, together with such further information as may be requested by the Director. (2) Decisions. Upon receipt of such application and accompanying information, the Director shall examine the same with all due speed and shall give notice to the applicant by an order in writing of his or her decision thereon. (3) Hearing. An aggrieved applicant may, within twenty (20) days after such decision is mailed to him or her, petition the Director for a hearing on the claim. Such petition shall be in writing and shall identify the amount of the refund requested and the basis for the request. The Director shall, upon due notice to the applicant, hold a hearing upon such petition, taking such information or evidence as may be material, and shall thereafter render his or her final decision upon such application, which decision shall be final. (b) Any person claiming to have paid a tax for the purchase or use of cigarettes in excess of the rates established by this Chapter may apply for a refund of the excess in the manner prescribed above. (c) An appeal of a final decision of the Finance Director in a hearing held pursuant to this Section shall be commenced within thirty (30) days of such decision. 3.10.190 - Refund not assignable. The right of any person to a refund under this Chapter shall not be assignable, and application for refund must be made by the same person who purchased or used the goods and who paid the tax thereon, as shown by the invoice of the sale thereof or other appropriate document. 3.10.200 - Notices sent by mail. All notices required to be given to the retailer or vendor under the provisions of this Chapter shall be in writing and, if mailed, to him or her at his or her last known address shall be sufficient for the purpose of this Chapter. 3.10.210 - License and tax in addition to all other taxes. The license and tax imposed by this Chapter shall be in addition to all other licenses and taxes imposed by law, except as herein otherwise provided. ATTACHMENT A: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 7 of 12 3.10.220 - Administration. The administration of all the provisions of this Chapter is vested in the Director of Finance, who may, with the approval of the Town Manager, prescribe forms and reasonable rules and regulations in conformity with this Chapter for the making of returns, for the ascertainment, assessment and collection of the taxes imposed hereunder, and for the proper administration and enforcement hereof, a copy of which forms, rules and regulations shall be made available to the public. 3.10.230 - Unlawful acts. It is unlawful for any person to fail to perform any affirmative duty required by this Chapter, or to willfully make, prepare or submit a tax return or other document containing any false statement, or to willfully make a false statement in any investigation or hearing, which may affect the tax liability of any person. 3.10.240 - Penalties. Any person, firm or corporation violating any of the provisions of this Chapter shall be deemed guilty of a violation of this Chapter, and any such person, firm or corporation shall be punished in accordance with the provisions of Section 1.08.010 of this Code. 3.10.250 – Cigarette excise tax—collection—limitation of actions. (1) No cigarette excise tax, or interest thereon or penalties with respect thereto, shall be assessed, nor shall any notice of lien be filed, or distraint warrant issued, or suit for collection be instituted, nor any other action to collect the same be commenced more than three (3) years after the date on which the tax was or is payable; nor shall any lien continue after such period, except for taxes assessed before the expiration of such period, except for taxes assessed before the expiration of such period, notice of lien with respect to which has been filed prior to the expiration of such period, in which cases such lien shall continue only for one (1) year after the filing of notice thereof. In the case of a false or fraudulent return with intent to evade tax, the tax together with interest and penalties thereon, may be assessed, or proceedings for the collection of such taxes may be begun at any time. Before the expiration of such period of limitation, the taxpayer and the Director of Finance may agree in writing to an extension thereof, and the period so agreed on may be extended by subsequent agreements in writing. (2) In the case of failure to file a return, the cigarette excise tax may be assessed and collected at any time. 3.10.260 – Cigarette excise tax—refunds—limitation of actions. (1) An application for refund of tax moneys paid in error or by mistake shall be made within three (3) years after the date of purchase of the cigarettes for which the refund is claimed. 3.10.270 – Cigarette excise tax—interest on underpayment, nonpayment, or extensions of time for payment of tax. (a) If any amount of cigarette excise tax is not paid on or before the last date prescribed for payment, interest on such amount at the rate imposed under Section 3.10.300 shall be paid for the period from such last date to the date paid. The last date prescribed for payment shall be determined without regard to any extension of time for payment and shall be determined without regard to any notice and demand for payment issued, by reason of jeopardy, prior to the last date otherwise prescribed for such payment. In the case of a tax in which the last date for payment is not otherwise prescribed, the last date for payment shall be deemed to be the date the liability for the tax arises, and in no event shall it be later than the date notice and demand for the tax is made by the Director of Finance. ATTACHMENT A: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 8 of 12 (b) Interest prescribed under Sections 3.10.270 through 3.10.290 shall be paid upon notice and demand and shall be assessed, collected and paid in the same manner as the tax to which it is applicable. (c) If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed under this Section on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowed with respect to such overpayment. (d) Interest prescribed under Sections 3.10.270 through 3.10.290 on any cigarette excise tax may be assessed and collected at any time during the period within which the tax to which such interest relates may be assessed and collected. 3.10.280 – Cigarette excise tax—deficiency due to negligence. If any part of the deficiency in payment of the cigarette excise tax is due to negligence or intentional disregard of the ordinances or of authorized rules and regulations of the Town with knowledge thereof, but without intent to defraud, there shall be added ten percent (10%) of the total amount of the deficiency, and interest in such case shall be collected at the rate imposed under Section 3.10.300, in addition to the interest provided by Section 3.10.290, on the amount of such deficiency from the time the return was due, from the person required to file the return, which interest and addition shall become due and payable ten (10) days after written notice and demand to him or her by the Director of Finance. If any part of the deficiency is due to fraud with the intent to evade the tax, then there shall be added one hundred percent (100%) of the total amount of the deficiency and in such case, the whole amount of the deficiency and in such case, the whole amount of the tax unpaid, including the additions, shall become due and payable ten (10) days after written notice and demand by the Director of Finance and an additional three percent (3%) per month on said amount shall be added from the date the return was due until paid. 3.10.290 – Cigarette excise tax—neglect or refusal to make return or to pay. If a person neglects or refuses to make a return in payment of the cigarette excise tax or to pay any sales tax as required, the Director of Finance shall make an estimate, based upon such information as may be available, of the amount of taxes due for the period for which the taxpayer is delinquent and shall add thereto a penalty equal to the sum of fifteen dollars ($15.00) for such failure or ten percent (10%) thereof and interest on such delinquent taxes at the rate imposed under Section 3.08.353 plus one-half percent (0.5%) per month from the date when due, not exceeding eighteen percent (18%) in the aggregate. 3.10.300 - Rate of interest. When interest is required or permitted to be charged under any provisions of Sections 3.10.270 through 3.10.290, the annual rate of interest shall be that established by the state commissioner of banking pursuant to Section 39.21.110.5, C.R.S. 3.10.310 - Other remedies. Nothing in Sections 3.10.270 through 3.10.300 shall preclude the Town from utilizing any other applicable penalties or remedies for the collection or enforcement of cigarette excise taxes. 3.10.320 – Cigarette excise tax—final decision of Town—appeals—posting of bonds. (1) Within fifteen (15) days after filing a notice of appeal as provided in Section 3.08.130, the taxpayer shall file with the district court a surety bond in twice the amount of taxes, interest and other charges stated in the final decision by the Director of Finance which are contested on appeal. The taxpayer may, at his or her option, satisfy the surety bond requirement by a savings account or deposit in or a certificate of deposit issued by a state or national bank or by a state or federal savings and loan association, in accordance with the provisions of Section 11.35-101(1), C.R.S., equal to twice the amount of the taxes, interest and other charges stated in the final decision by the Director of Finance. ATTACHMENT A: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 9 of 12 (2) The taxpayer may, at his or her option, deposit the disputed amount with the Director of Finance in lieu of posting a surety bond. If such amount is so deposited, no further interest shall accrue on the deficiency contested during the pendency of the action. At the conclusion of the action, after appeal to the Supreme Court or the court of appeals or after the time for such appeal has expired, the funds deposited shall be, at the direction of the court, either retained by the Director of Finance and applied against the deficiency or returned in whole or in part to the taxpayer with interest at the rate imposed pursuant to Section 3.08.353. No claim for refund of amounts deposited with the Director of Finance need be made by the taxpayer in order for such amounts to be repaid in accordance with the direction of the court. 3.10.330 – Cigarette excise tax—final decision of Town—appeals—posting of bonds. For transactions consummated on or after January 1, 1986: (1) Within fifteen (15) days after filing a notice of appeal as provided in Section 3.10.070, the taxpayer shall file with the district court a surety bond in twice the amount of taxes, interest and other charges stated in the final decision by the Director of Finance which are contested on appeal. The taxpayer may, at his or her option, satisfy the surety bond requirement by a savings account or deposit in or a certificate of deposit issued by a state or national bank or by a state or federal savings and loan association, in accordance with the provisions of Section 11.35-101(1), C.R.S., equal to twice the amount of the taxes, interest and other charges stated in the final decision by the Director of Finance. (2) The taxpayer may, at his or her option, deposit the disputed amount with the Director of Finance in lieu of posting a surety bond. If such amount is so deposited, no further interest shall accrue on the deficiency contested during the pendency of the action. At the conclusion of the action, after appeal to the Supreme Court or the court of appeals or after the time for such appeal has expired, the funds deposited shall be, at the direction of the court, either retained by the Director of Finance and applied against the deficiency or returned in whole or in part to the taxpayer with interest at the rate imposed pursuant to Section 3.10.300. No claim for refund of amounts deposited with the Director of Finance need be made by the taxpayer in order for such amounts to be repaid in accordance with the direction of the court. 3.10.340 – Cigarette excise tax—collection—map of municipal boundaries. The Director of Finance shall make available to any requesting vendor a map showing the boundaries of the Town. No penalty shall be imposed or action for deficiency maintained against such a vendor who in good faith complies with the most recent map available to it. 3.10.350 - Cigarette tax—alternative dispute resolution procedure—deficiency notice or claim for refund. For transactions consummated on or after January 1, 1986, in lieu of the procedure provided for in Section 3.10.320, the taxpayer may elect a hearing on the Director of Finance's final decision on a deficiency notice or claim for refund pursuant to procedure set forth in this Section. (1) As used in this Section, state hearing means a hearing before the Executive Director of the Department of Revenue or delegate thereof as provided in Section 29-2-106.1(3), C.R.S. (2) When the Town asserts that sales or use taxes are due in an amount greater than the amount paid by a taxpayer, the Town shall mail a deficiency notice to the taxpayer by certified mail. The deficiency notice shall state the additional sales and use taxes due. The deficiency notice shall contain notification, in clear and conspicuous type, that the taxpayer has the right to elect a state hearing on the deficiency pursuant to Section 29-2-106.1(3), C.R.S. The taxpayer shall also have the right to elect a state hearing on the Town's denial of such taxpayer's claim for a refund of sales tax paid. (3) The taxpayer shall request the state hearing within thirty (30) days after the taxpayer's exhaustion of local remedies. The taxpayer shall have no right to such hearing if he or she has not exhausted local remedies ATTACHMENT A: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 10 of 12 or if he or she fails to request such hearing within the time period provided for in this subsection. For purposes of this subsection, exhaustion of local remedies means: a. The taxpayer has timely requested in writing a hearing before the Town and such Town has held such hearing and issued a final decision thereon. Such hearing shall be informal and no transcript, rules of evidence or filing of briefs shall be required; but the taxpayer may elect to submit a brief, in which case the Town may submit a brief. The Town shall hold such hearing and issue the final decision thereon within ninety (90) days after the Town's receipt of the taxpayer's written request therefor, except the Town may extend such period if the delay in holding the hearing or issuing the decision thereon was occasioned by the taxpayer, but, in any such event, the Town shall hold such hearing and issue the decision thereon within one hundred eighty (180) days of the taxpayer's request in writing therefor; or b. The taxpayer has timely requested in writing a hearing before the Town and the Town has failed to hold such hearing or has failed to issue a final decision thereon within the time periods provided in Subparagraph a above. (4) If a taxpayer has exhausted his or her local remedies as provided in subsection (3) above, the taxpayer may request a state hearing on such deficiency notice or claim for refund, and such request shall be made and such hearing shall be conducted in the same manner as provided in Section 29-2-106.1(3) through (7), C.R.S. (5) If the deficiency notice or claim for refund involves only the Town, in lieu of requesting a state hearing, the taxpayer may appeal such deficiency or denial of a claim for refund to the district court of the County of Eagle as provided in Section 29-2-106.1(8), C.R.S., provided the taxpayer complies with the procedures set forth in subsection (3) of this section. (6) Nothing in this Section shall prohibit the taxpayer from pursuing judicial review of a final decision of the Town as otherwise provided in Section 3.10.320. (7) If the Town reasonably finds that the collection of sales tax will be jeopardized by delay, the Town may utilize the procedures set forth in Section 39-21-111, C.R.S. (8) An appeal of a final decision of the Finance Director in a hearing held pursuant to this Section shall be commenced within thirty (30) days of such decision. Section 5. 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 6. 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 7. 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: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 11 of 12 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 8. 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 9. 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 10. 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 11. 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: Ord. No. 19-02 Ord. 19-02 TOBACCO SALES TAX AND CIGARETTE EXCISE TAX - FINAL March 12, 2019 Page 12 of 12 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on February 26, 2019 and setting such public hearing for March 12, 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 March 12, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Eric J. Heil, Town Attorney ATTACHMENT A: Ord. No. 19-02 Heil Law & Planning, LLC E-Mail: ericheillaw@gmail.com HEIL LAW & PLANNING, LLC MEMORANDUM TO: FROM: RE: DATE: Honorable Mayor Smith Hymes and Town Council members Eric J. Heil, Town Attorney Ordinance No. 19-01 Community Housing Incentives March 6, 2019 SUMMARY: This memorandum provides a follow-up to the February 26, 2019 Council discussion of Ordinance No 19-01 Community Housing Incentives. The materials presented on February 26, 2019 are resubmitted to Council along with a complete copy of the Avon Community Housing Plan adopted at the end of last year. The prior materials are supplemented with these optional language revisions based upon comments received at the February 26, 2019 meeting and comments received after that meeting. 1.Do No Limit Buyer’s Exemption to One-Half of Sale: Do not limit Buyer’s exemption to one-half of consideration and allow Buyer to negotiate to pay for more than one-half of the RETT to enhance Buyer’s ability to negotiate a lower purchase price. This can be accomplished by deleting sub-section 3.12.060(19)(a)(4) which is shown below in strikeout. To illustrate the effect, if a Buyer negotiated to pay 100% of the RETT on a $500,000 residence and the Town allows the Buyer to claim an exemption for the entire RETT amount that the Buyer pays, the full exemption would be in the amount of $10,000. Typically, the RETT is split 50/50; therefore, if the Buyer negotiates to be liable for all the RETT, then the Buyer can negotiate a purchase price that is $5,000 less than the purchase price for a Buyer who can not claim any RETT exemption. This option would require additional administrative work to verify the amount the Buyer actually paid at closing. 3.12.060(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 Avon Town Council RE: Ord. 19-01 Community Housing Tax and Fee Credits, Exemptions and Waivers Date: March 6, 2019 Page 2 of 2 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.” 2. Extend Increased Primary Residence Exemption to Retirees: Allow long term Eagle County residents who are retirees to qualify for primary residence exemptions. An example of a retiree exemption would be for residents who have lived in Eagle County for at least five (5) years and who are at least sixty- five years of age. Language amendments would include adding a definition of Eagle County Retiree and then including Eagle County Retiree in addition to Eagle County Employees in the exemptions in Sections 3.12.060(18) and (19). A variation to consider is allowing an Eagle County Resident who has lived in Eagle County a total of 5 years in the last 7 years and is at least 65 years old to qualify as an Eagle County Retiree to allow for circumstances when temporary relocation occurs (which can arise with elder care). 3. Clarify that Incentives are to Promote Community Housing: Clarify that the Community Housing Incentives in Chapter 3.14 are intended primarily for housing purposes. Rather than modifying the language each of the taxes and fees, I recommend an addition to Section 3.14.010 Purpose to read as follows: 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. The use of Community Housing Incentives is intended to promote the provision of Community Housing which would likely not occur without providing such incentives and is not intended to subsidize free market residential or commercial development. I suggest that Council would benefit from some additional real estate market analysis to better understand the level of public subsidy that is required to incentivize the private sector to produce deed restricted Community Housing. A residential project with mixed free market units and deed restricted units provides a more integrated residential project rather than segregating low or middle income housing and free market units are often necessary for the economic viability of a private sector project. Thank you, Eric ATTACHMENT A: February 7, 2019 Memorandum ATTACHMENT B: Ordinance No. 19-01 ATTACHMENT C: Avon Community Housing Plan ATTACHMENT D: REDLINE of existing AMC Sections 3.12.060(14) through (17) compared to proposed AMC Sections 3.12.060(14) through (19) 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: ATTACHMENT A: FEB 7, 2019 Memorandum 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: ATTACHMENT A: FEB 7, 2019 Memorandum 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 15) 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 ATTACHMENT A: FEB 7, 2019 Memorandum 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. ATTACHMENT A: FEB 7, 2019 Memorandum 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. ATTACHMENT A: FEB 7, 2019 Memorandum 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 AMC Section 3.12.060(16). This has been the policy and practice of Avon for a long time and has been approved under existing AMC Section 3.12.060(14) which authorizes the Town Manager to provide an exemption for the purpose of providing low or moderately priced housing units. New AMC Section 3.12.060(16) would read: ATTACHMENT A: FEB 7, 2019 Memorandum 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(16) Transfers of Community Housing subject to a deed restriction 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.” RECODIFICATION AND AMENDMENTS TO AMC SECTION 3.12.060: Due to previous amendments and the concern over TABOR restrictions and the impact of changes to existing language in Chapter 3.12 Real Property Transfer Tax, the list of exemptions is disorderly. With the addition of new enactments, a slight recodification is proposed so that the subject matter of the listed exemptions is more orderly. 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: FEB 7, 2019 Memorandum Ord. 19-01 March 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 B: ORD. NO. 19-01 Ord. 19-01 March 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 B: ORD. NO. 19-01 Ord. 19-01 March 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 B: ORD. NO. 19-01 Ord. 19-01 March 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 B: ORD. NO. 19-01 Ord. 19-01 March 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 B: ORD. NO. 19-01 Ord. 19-01 March 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 B: ORD. NO. 19-01 Ord. 19-01 March 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 B: ORD. NO. 19-01 Ord. 19-01 March 12, 2019 FIRST READING Page 8 of 8 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on March 12, 2019 and setting such public hearing for April 9, 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 April 9, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Eric J. Heil, Town Attorney ATTACHMENT B: ORD. NO. 19-01 Town of Avon Community Housing Plan December 2018 Prepared by Willa Williford ATTACHMENT C: AVON COMMUNITY HOUSING PLAN 2 The Town of Avon seeks to build upon a long history as a high amenity year-round resort community, strength- ening its vibrant and inclusive community culture. The current Comprehensive Plan sets the vision for diverse and exciting opportunities for residents, businesses, and visitors. The current housing market, which offers very few affordable opportunities for year-round residents to put down roots in Avon, poses a challenge to this vision. The potential community benefits of increasing workforce housing efforts to include: More housing choices;• Increased economic stability and a more active year-• round economy for local residents and businesses; Greater ability to retain individuals and families • throughout life and career phases, strengthening the sense of community, opportunity, and quality of life; Further the goals of the Climate Action Plan by reducing • single occupant vehicle commuting; and Greater opportunities for arts and culture to thrive.• Introduction Goals & Objectives The Comprehensive Plan sets two housing goals (each with numerous supporting policies): Achieve a diverse range of housing densities, styles, and types, including rental and for sale, to serve all • segments of the population. Coordinate with neighboring communities to provide an attainable housing program that incorporates • both rental and ownership opportunities, affordable for local working families. “Avon’s vision is to provide a high quality of life, today and in the future, for a diverse population; and to promote their ability to live, work, visit, and recreate in the community.” - TOWN OF AVON COMPREHENSIVE PLAN, MAY 2017 ATTACHMENT C: AVON COMMUNITY HOUSING PLAN 3 Goals and Objectives of this Housing Plan are as follows: 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. The Need Since the end of the recession, jobs and population have been growing much more rapidly than housing inventory, creating many challenges: Frustration for locals seeking housing;• Employers facing unfilled positions, turnover, higher training costs, and lost productivity; • Precipitous increases in home prices, well beyond the means of most local residents; • Extremely low vacancy rates, resulting in limited choices and rising costs for renters; and• Negative impacts on individuals and families, who are spending a disproportionate amount of their in-• come on housing, commuting long distances, and living in locations or situations that are not sustainable for the long term. Median price for all dwelling units sold in Avon in 2017 was $438,000. Condominiums accounted for 71% of these sales, with a median price of $358,500. The median price for single family dwellings, duplexes and townhomes was $850,000. The price affordable to a median income family is less than half than that, at about $316,000. Only four dwelling units were on the market for $316,000 or lower in early 2018. The rental market is similarly challenging: vacancy rates have been approaching zero, and since 2007, average rental rates have risen 48% across the Eagle River Valley. ATTACHMENT C: AVON COMMUNITY HOUSING PLAN 4 Strengths & Assets Avon can build on existing assets and previous housing initiatives: An inventory of 670 price-controlled housing units, 63 of which are deed restricted for sale units that • were a result of successful PUD negotiations; An Affordable Housing Fund balance of $675,000. As the Housing Fund increases, the additional fund • should be leveraged to meet the goals of the plan; A partnership with The Valley Home Store for monitoring and compliance of deed restrictions on for-sale • units; Employee housing mitigation requirements for some new commercial development;• History of regional collaboration with public sector, non-profit and private sector on housing issues;• Significant opportunities for development and redevelopment, with water rights, transit access, and • existing available density on vacant and underutilized private parcels; Commercially zoned land that may also be appropriate for residential development; and• Adopted Comprehensive Plan, which sets housing as top policy priority.• To meet the needs of local employees in the Eagle River Valley, over 4,000 additional dwelling units will be required by 2020. In mid-valley, which includes Eagle-Vail, Avon, and Edwards, 1,500 dwelling units will be needed. Subsidies or public/private partnerships are anticipated to be required for the majority of these dwelling units to be financially feasible and affordable to local employees. Avon and the mid-valley are highly desired locations for local households. In a recent survey of Eagle River Valley households, 40% of renters and 39% of owners selected mid-valley as their first choice for where they want to live. The challenges with regard to housing need are significant. With this Plan, the Town of Avon is setting goals, objectives, and action steps to respond. The Town’s resources include land, funding, staff time, and policy making. Recognizing that the Town of Avon alone cannot address the housing need, these resources will be used to leverage opportunities and create partnerships. ATTACHMENT C: AVON COMMUNITY HOUSING PLAN 5 Tools & Strategies In order to achieve these goals and objectives, the following tools and strategies should be pursued. Tools and strategies are organized into three categories: Housing Development and Retention, Funding, and Housing Policy. A timeline for implementation is included in Appendix A. Housing Policy The Town of Avon seeks to use both incentives and regulations to create a policy environment that is favorable for local housing. The Town has a strong track record in including employee housing in PUD approvals. The Town will continue to encourage, and, in some instances, require local housing in new planning approvals. Initiatives to update and strengthen housing policies will include: Review existing code for opportunities to increase the year-round occupancy of the existing housing • stock, including consideration of short term rental, accessory dwelling units, and lock-off incentives and regulations. Update mitigation/linkage policies• to be more proactive in addressing housing needs. Current policies are limited to very narrowly defined locations and development requests, and the current mitigation rate is low compared with peer communities. Consider implementing an • inclusionary housing policy. Inclusionary housing was considered in the 2010 code update, but was not adopted at that time. Inclusionary housing is a tool to create housing affordable to locals. It is recommended to look at inclusionary housing and mitigation/linkage at the same time, to better understand how the two tools complement each other, support policy goals, and maintain a level playing field for commercial and residential development. Conduct a • comprehensive review of fees associated with new construction and formalize a fee waiver/ reimbursement process for new housing that meets the goals of the plan. Housing Development and Retention A top priority is pursuing housing development on Town owned land. Two parcels, identified in the Town of Avon Properties Plan, are appropriate to move forward with housing development in the next three years. These sites are Wildwood and Swift Gulch. This Plan is recommending that public outreach and feasibility analysis for Wildwood move forward this year. Preliminary analysis for Swift Gulch can begin when there is a clear path forward for finance, entitlements, and construction for Wildwood. Both sites are anticipated to be developed through public/private partner- ships. Two strategies have been identified to preserve market rate attainable housing that is currently at risk of being lost to locals through rapid price increases and/or redevelopment. The first strategy is to “buy-down” ATTACHMENT C: AVON COMMUNITY HOUSING PLAN 6 Funding Local funding is a key ingredient to building and maintaining housing units. Investing (or “leveraging”) local funds is essential to attracting the outside funding sources such as grants, loans, tax credits and pri- vate investments that, when combined, make housing development financially feasible. Currently, the Avon Housing Fund has a balance of about $675,000. It is anticipated that those funds will be invested in the efforts outlined in this Plan, and that additional funds will be needed moving forward. A two-step process is envisioned to secure additional local funds for housing. The first step will be to review current revenue streams and determine if additional funds can be directed to housing efforts through the annual budgeting process. This review will begin at the end of 2018. Depending on the outcome of the first step, the second step will be to seek oppor- tunities for new funding sources, which could include approaches such as increased linkage fees, regional collaboration, and/or support for a local ballot initiative. Public/private partnerships are also a funding strat- egy, generating potential access to grants, below market loans, and resources such as the Low Income Hous- ing Tax Credit. The Town of Avon understands the regional nature of housing, transportation and employment in the Eagle River Valley. In pursuit of local year-round housing, the Town will continue to participate in regional studies, seek opportunities to participate in regionally significant housing developments beyond Town boundaries, and participate in employer forums, and be an advocate for other regional initiatives. attainable market rate units and preserve their affordability with a permanent deed restriction. Nearby precedents for this approach include Vail InDEED and Eagle Valley Ranch. This is a homeownership strat- egy. The second strategy is to explore mechanisms such as mobile home preservation, acquisition, and right of first refusal to preserve properties that currently house locals. A right of first refusal creates the opportunity for the Town to purchase and preserve these assets, if the owner decides to sell and the Town decides the property is a priority and is able to secure finance timely. This is a mobile home and multi- family housing strategy. This program development is anticipated to begin in 2019. Investing in maintenance of current inventory of deed restricted housing is an important component of housing development and retention. Much of the affordable rental housing inventory has recently been renovated, however, the homeownership inventory is in need of capital planning and reinvestment. The Town of Avon has recently contracted with The Valley Home Store to assist with compliance monitoring and re-sale of deed restricted properties. The next phase of this effort will be to conduct a capital needs assessment of the home ownership assets and make a plan for funding and implementing capital improve- ments. This effort is anticipated to begin in 2020. Cultivating additional public/private partnerships for housing are additional strategies that will be on- going. Collaborative efforts with Eagle County, other municipalities, and local employers are imperative when fostering new opportunities for housing development and retention. ATTACHMENT C: AVON COMMUNITY HOUSING PLAN 7 Investment Criteria As the Town of Avon seeks to deploy monies from the Avon Housing Fund, the Town will evaluate opportunities based on the following criteria: Does the program or project meet the goals and objectives of the Comprehensive Plan and this Housing 1. Plan? Does the investment fill a gap that would otherwise keep the proposed program or project from moving for-2. ward? Does the program or project encourage resource conservation, energy efficiency and sustainable develop-3. ment? Does the location offer access to multi-model transportation options and other services? Is there participation from other regional partners, public and/or private?4. ATTACHMENT C: AVON COMMUNITY HOUSING PLAN APPENDIX A: AVON COMMUNITY HOUSING PLAN -WORK PLAN Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DEED RESTRICTED UNIT INVENTORY - CAPTIAL ASSESSMENT Lead Determine Management & Capital Reserves for key properties Planning Report to Council on Findings Planning/Council Partner with HOAs to complete HOA Reserve Studies Planning FORMALIZE FEE WAIVER PROGRAM FOR WORKER HOUSING Review Town of Avon building and planning fees Planning Formalize Fee Waiver Program Council CODE AMENDMENTS - ADUs, STRs, INCLUSIONARY ZONING Review current and previous ordinances and calculations Planning Conduct outreach Planning Revise and recommend adoption PZC Consider for Adoption Council WILDWOOD HOUSING PROJECT Conduct Feasibility Planning/Engineer Report to Council on Findings* Planning/Engineer REVIEW REVENUE STREAMS & EVALUATE FUND CONTRIBUTIONS Include annual allocation for housing in budget process Finance Approve fund transfers each year during budget approval Council PARTICIPATE IN REGIONAL STUDIES, SITE ANALYSIS, FORUMS Planning CULTIVATE PUBLIC-PRIVATE PARTNERSHIPS Manager *18 months estimated to select partner(s), entitlements, financing, and construction. ATTACHMENT C: AVON COMMUNITY HOUSING PLAN APPENDIX B – Definitions and Best Practices Topic Definition Best Practices Inclusionary Housing A percentage of residential units in new subdivisions/PUDs are workforce housing. Market homes support workforce units. Only effective if new subdivisions/PUDs are developed/ redeveloped. Carbondale, Eagle, Eagle County, San Miguel County Linkage/Mitigation Requiring new residential and/or commercial development to contribute to workforce housing relative to demand generated by the new construction. For residential, mitigation rate often increases with house size, and deed restricted units are typically exempt. Fees in lieu provides revenue stream that fluctuates with building activity. Documented relationship between fee and impact required. Telluride, Aspen, Mt. Crested Butte Fee Waivers Water/sewer tap fees, building permit or other fees waived in part or whole to reduce cost to build affordable housing. General funds or other source need to cover cost of fees waived. Breckenridge, Crested Butte Dedicated Funding Source Funding is a core component of building housing and running successful housing programs. Few programs begin with funding; rather finding funding is an incremental process that goes hand in hand with creating goals and objectives, developing policies, securing appropriate land for housing, and moving forward with public/private partnerships. Dedicated funding sources take many forms including grants, fee in lieu payments, taxes, voluntary assessments, proceeds from rents or sales. Summit County, Steamboat Springs, Crested Butte, Aspen, Telluride Public/Private Partnerships Partnering with developers to build attainable units, typically on publicly-owned sites, or using other public resources such as property tax exemption. RFQ/RFP process effective for selecting development partners. Ownership of land can be retained with long-term land leases. Eagle County, Vail, Breckenridge, Boulder Land Banking Acquiring land for eventual housing development when specific project is not known. Summit County, Vail, Boulder County, Breckenridge, Telluride Buy Down of Market Homes Usually involves buying down units with public funds. Deed restrictions imposed for permanent affordability. Inability to obtain condo mortgages can result in units being rented. Public sector purchases can drive up prices for low-end market units. Breckenridge, Telluride, Whitefish MT No Net Loss Policy Requiring replacement of housing occupied by the workforce when redevelopment occurs. Similarly-priced units should be replaced on site or another site, or a fee- in-lieu of replacement could be allowed. Boulder, Basalt ATTACHMENT C: AVON COMMUNITY HOUSING PLAN 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 C: AVON COMMUNITY HOUSING PLAN (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 D: 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 D: 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 D: REDLINE of Code Amendments     TOWN COUNCIL REPORT  To:   Honorable Mayor and Town Council  From:    Preston Neill, Acting Town Manager  Date:    November 13, 2018  Topic:    REVIEW AND ACTION ON PROPOSED UPDATE TO CC4CA POLICY AGENDA    ACTION BEFORE COUNCIL:  Council is asked to review and take action on the proposed update to the “solid waste reduction” section  of the Colorado Communities for Climate Action (CC4CA) Policy Agenda.     RECOMMENDED MOTION:  “I move to support the proposed update to the “solid waste reduction” section of the CC4CA Policy  Agenda 2018‐2019.”    SUMMARY:  At the November 13, 2018 Council meeting, Council approved a motion to support the CC4CA Policy  Agenda 2018‐2019. Recently, CC4CA has reached out to every one of CC4CA's member jurisdictions to ask  about a potential update to CC4CA's Policy Agenda, specifically to expand the “solid waste reduction”  section by adding the following items:  1. Create new task forces, staffed positions, programs and initiatives, and/or other entities to  support and improve solid waste diversion efforts in the state and to improve funding and  technical assistance for such efforts.    2. Create new task forces, staffed positions, and/or statewide initiatives to support the expansion of  recycling businesses in Colorado.    3. Allow local governments to regulate disposable plastic waste (which they are currently  preempted from doing by the State of Colorado).    4. Require or incentivize state agencies to improve their recycling, composting, and other solid  waste reduction efforts.     Currently, there is a provision in state law that some believe preempts local governments from  establishing requirements related to container types for food and other consumer products. While a  number of communities have adopted such restrictions, the meaning and scope of this preemption clause  hasn’t been litigated yet in a way that provides a clear answer. The Colorado Municipal League is among  those leading an effort to pass a bill this session addressing that language. It would supersede the  preemption language and clearly allow a local government to set standards for disposable plastic waste  (e.g., a retail food establishment's use of ready‐to‐eat food containers, such as those made from  Styrofoam).    If all CC4CA members indicate that they are fine with the proposed update to the Policy Agenda, CC4CA  will join CML and others in working to pass this legislation.    ATTACHMENT:  CC4CA Policy Agenda 2018‐2019  CC4CA Policy Agenda 2018-2019 Colorado Communities for Climate Action is a coalition of local governments advocating for policies that protect Colorado’s climate for current and future generations. CC4CA’s policy priorities for 2018-2019 reflect unanimous agreement among the coalition members on steps that should be taken at the state and federal level, often in partnership with local governments, to enable Colorado and its communities to lead in protecting the climate. These steps would complement the strong local climate actions CC4CA members already have underway. General Policy Principles These general principles guide the specific policies for which Colorado Communities for Climate Action advocates: CC4CA supports collaboration between state and federal government agencies and Colorado’s local governments to advance local climate protection. CC4CA supports state and federal programs to reduce carbon pollution, including adequate and ongoing funding of those programs. CC4CA supports analyses, financial incentives, and enabling policies for the development and deployment of clean energy technologies. CC4CA supports locally driven, locally designed programs to support communities impacted by the clean energy transformation. Policy Positions Colorado Communities for Climate Action supports the following policy positions: Local Climate Programs 1. Supports state-level actions to remove barriers and promote opportunities that allow counties and municipalities to maximize the deployment of local clean energy options. The deployment of local energy generation and technology will continue to be a critical component of Colorado communities’ climate efforts. In many cases, regulatory or legislative limitations exist that will need to be removed for communities to fully explore new local program options and technologies that can effectively reduce fossil fuel use, increase energy resilience, and support community values related to climate protection. For example, the integration of local renewable energy, storage technologies, and microgrids all support a local jurisdiction’s ability to address the supply side of energy-related emissions. 2 2. Supports requiring local governments with adopted building codes to include the most current or appropriate International Energy Conservation Code, or provisions substantially similar to it, in their building codes and to develop a process for updating the energy code on a regular basis. More than 40 percent of the energy consumed in the United States is tied to the use of buildings. Building codes, consequently, are among the most powerful tools available for reducing carbon pollution (and, not incidentally, saving money in both residential and commercial buildings). For instance, the Southwest Energy Efficiency Project estimates the incremental cost for constructing a new home to meet the 2015 IECC versus the 2006 IECC is about $2,400; with annual energy savings of $390, this efficiency upgrade results in a six-year simple payback. While some jurisdictions across Colorado are keeping up with changes to the International Energy Conservation Code, many communities have not done so. CC4CA supports the adoption of the most current IECC or amendments to older codes that have comparable energy efficiency and consumption impacts. 3. Supports state government actions to enable local governments to obtain the energy use and other data they need to effectively address climate change. Local governments need convenient and consistent access to data that is essential for developing and administering local programs that address clean and efficient energy and reductions in heat-trapping emissions. For example, access to uniform data from electric and gas utilities is critical for implementing building energy use disclosure and benchmarking programs designed to make sure building owners, tenants, and others can be fully informed about energy performance. Local governments also struggle to get consistent data regarding waste collection and disposal, oil and gas operations, and other sources of heat-trapping emissions. CC4CA supports state government actions and policies that lead to uniform systems for collection and distribution of data from investor-owned and public utilities that is easily accessible to local governments, while still protective of data privacy for residents and businesses. State Climate-Specific Programs 4. Supports statutory codification of aggressive and enforceable goals to reduce net statewide heat-trapping emissions, including the goal of reducing emissions by more than 26 percent by 2025, compared to 2005 levels, as established by Governor John Hickenlooper through executive order, and including a further goal of reducing emissions by at least 80 percent by 2050, compared to 2005 levels. In July 2017, Governor Hickenlooper issued Executive Order D 2017-015. Among other provisions, it set an official state goal of reducing statewide carbon pollution 3 by more than 26 percent by 2025, compared to 2005 levels. CC4CA applauded the governor for his action, which provides an essential framework for shaping climate protection actions in Colorado. Meeting this goal would mean that Colorado achieved its share of the national commitment the United States made under the Paris Agreement. CC4CA also supports an additional goal of reducing emissions by at least 80 percent by 2050, building on the goal established in 2008 by then-governor Bill Ritter, Jr. in Executive Order D 004 08. Meeting this goal would mean that Colorado achieved its share of the global emission reductions scientists say must be achieved or exceeded to protect the climate from dangerous human interference. CC4CA supports the codification of the state’s emission reduction goals in statute, as other states have done, so that they remain the cornerstone of state climate protection actions over time, including following transitions from one governor to another. 5. Supports legislative, regulatory, and administrative actions by the Colorado state government to achieve the state’s emission reduction goals and to implement the Colorado Climate Plan, and requests an opportunity for meaningful, sustained engagement by CC4CA in developing those specific steps. In order to meet the emission reduction goals established by Governor Hickenlooper and to implement the governor’s 2015 Colorado Climate Plan, the state will need to take additional action. The Colorado Climate Plan is a high-level overview document of state actions for adapting to future climate change impacts and reducing carbon pollution. CC4CA believes it essential that the state government provide an opportunity for meaningful, sustained collaboration with local governments in developing specific climate actions tied to this climate plan, and proposes that representatives of CC4CA be included in that process. Following the July 2017 release of Governor Hickenlooper’s executive order, CC4CA initiated a letter to the governor through which 75 local elected officials expressed support for the executive order and its goals and stated their readiness and willingness to help his administration shape and implement concrete, measurable actions that will be needed to meet these goals. 6. Supports the development of a new forecast of future heat-trapping emissions reflecting Colorado laws and Colorado-specific information by the Colorado Department of Public Health and Environment, with input from local government and other stakeholders. The “Colorado Greenhouse Gas Inventory: 2014 Update Including Projections to 2020 & 2030,” prepared by the Colorado Department of Public Health and Environment, includes a forecast of statewide emissions that utilizes federal Environmental Protection Agency nationwide assumptions about future emissions 4 policies. As a result, the inventory does not reflect currently adopted Colorado laws and policies, such as our Renewable Energy Standard. Without this information, it is impossible to ascertain what progress Colorado is making (or not) in its effort to reduce carbon pollution. CC4CA in July 2017 sent a letter to CDPHE recommending the development of a new Colorado inventory of greenhouse gas emissions that incorporates existing Colorado law and policy in order to more accurately track the state’s progress in achieving its emissions reduction goals, and will continue working for that action. 7. Supports a comprehensive market-based policy to reduce Colorado’s heat- trapping emissions. Climate change is considered a market failure by economists because it imposes huge costs on society—so-called external costs—that are not normally reflected in the prices of the goods and services causing the cost. To overcome this market failure, CC4CA supports an effort to internalize the costs by putting a price on heat- trapping emissions and allowing that price to help drive emission reductions. Such a market-based approach could be undertaken at national, regional, or state levels, and could take different forms. One approach would be a tax on greenhouse gas emissions. Another would be a cap-and-trade program that allows trading of limited emission rights that are sold and then could be traded to achieve economically efficient emission reductions. Examples include the Regional Greenhouse Gas Initiative covering ten northeastern U.S. states and California’s statewide cap-and- trade program. Electricity Generation 8. Supports concrete state government actions to reduce emissions from the electricity sector in Colorado by at least 25 percent by 2025 and at least 35 percent by 2030, compared to 2012 levels, consistent with the goals established by Governor John Hickenlooper through executive order. Executive Order D 2017-015 established new state goals for reducing emissions from the electricity sector that are consistent with what Colorado was considering to comply with the U.S. Environmental Protection Agency’s Clean Power Plan under the Obama administration. CC4CA believes that greater emission reductions are possible than called for in the executive order and that further reductions are needed into mid-century, especially given the more ambitious targets that Xcel Energy has identified as achievable in its Colorado Energy Plan currently under consideration by the Public Utilities Commission. CC4CA supports concrete actions by the Colorado Public Utilities Commission and the Colorado Department of Public Health and Environment to ensure that we achieve and exceed these goals. 9. Supports the accelerated retirement of existing fossil fuel based generation facilities and their replacement with cost-effective and reliable clean energy supplies, through means that protect both utilities and consumers. 5 CC4CA supports actions in Colorado to enable the early retirement of fossil fuel- based power plants and their replacement with clean energy sources, while protecting the economic interests of both the utilities owning the power plants and electricity customers. CC4CA has previously supported legislation to allow refinancing of older, less efficient power plants, by way of ratepayer-backed bonding, that could make it possible to retire those plants in favor of newer, cleaner sources while protecting the economic interests of both utilities and consumers. In August 2017, Xcel Energy and more than a dozen other entities (including the City of Boulder, a CC4CA member) announced an agreement to seek approval from the Public Utilities Commission of a proposal to retire two old, coal-fired generators at the Comanche power plant in Pueblo, to be replaced with newer energy sources with lower (or no) heat-trapping emissions. The coalition said the proposal is predicated on the cost of the new energy sources meeting or beating the current cost of power from the power plants to be retired. Across the nation, the generation of electricity is rapidly shifting from coal-fired power plants to less polluting plants, driven primarily by economic forces but sometimes also by governmental policies and actions, from climate action plans to new authority for refinancing existing plants. The shift to cleaner electricity generation is driving down greenhouse gas emissions from that sector and holding down overall national emissions. 10. Supports expanded ability of electric cooperatives to independently purchase local renewable electricity. Tri-State Generation and Transmission Association has tried to prevent its customer electric cooperatives from purchasing electricity generated from local renewable sources by other suppliers, both directly through attempts to impose contractual limitations and indirectly through attempts to impose fees. In decisions involving Tri-State and Delta Montrose Electric Association, the Federal Energy Regulatory Commission has found these attempts to be in violation of the Public Utilities Regulatory Policy Act, which actually requires a coop to purchase such electricity, and has blocked Tri-State from preventing those purchases. CC4CA supports the ability of electric cooperatives to purchase non-polluting electricity free from these or any similar limitations. 11. Supports state legislation to incrementally increase the Renewable Energy Standard. Colorado’s current Renewable Energy Standard requires electricity providers to obtain these minimum percentages of their power from renewable energy sources: • Investor-owned utilities: 30 percent by 2020, of which 3 percent must come from distributed energy resources. 6 • Large rural electric cooperatives: 20 percent by 2020. • Municipal utilities and small rural electric cooperatives: 10 percent by 2020. This standard has been one of the most effective state policies in facilitating the transition from carbon-intensive fossil fuel electricity sources to renewable sources, and CC4CA supports giving consideration to incrementally increasing the standard for all three types of utilities. 12. Supports state legislation to require the Public Utilities Commission to consider all environmental and health costs of the fuels used by investor- owned utilities to generate electricity. Electric utilities should be required to include the costs of carbon pollution when developing their long-term integrated resource plans, as would have been required under a bill considered in the 2016 session of the Colorado General Assembly. The “social cost of carbon” is the economic cost of the impacts of carbon pollution, which can be used to compare the overall costs and benefits of alternative energy sources. Legislation requiring utilities to generate at least one scenario identifying the impacts of carbon pollution would enable utilities, regulators, ratepayers, and others to better understand the true costs of different choices for electricity generation. 13. Supports grid modernization policies and funding that support distributed generation, energy storage, high levels of renewable energy generation (distributed and utility-scale), and appropriate technologies. A wide array of grid modernization policies and actions are available to utilities that can reduce energy consumption, better align availability of electricity to demand, expand renewable energy generation, and collectively reduce carbon pollution from the power generation sector (while also improving reliability and reducing cost). CC4CA supports policies and funding that result in these types of grid modernization efforts in Colorado. Net metering is one example of a policy structure that can result in reduced greenhouse gas emissions, greater reliability for individual energy users and across the grid, improved grid resilience, and reduced cost for both utilities and electricity consumers. Colorado’s current net metering policies allow electric customers who invest in distributed energy technologies to net their solar energy production against their consumption. Available in at least 40 states, this simple billing arrangement is one of the most important policies for encouraging rooftop solar and other on-site clean energy options. Net metering also helps foster the voluntary reduction of heat-trapping emissions, contributes to the reliability of the electricity supply and distribution systems, supports the residential and small-commercial renewable energy industry, and helps to more quickly replace coal-fired power plants with cleaner sources of energy. In recent years utilities have sought approval 7 from regulatory bodies in many states to either abandon or reduce net metering rates. CC4CA supports grid modernization policies like these and opposes efforts to weaken or eliminate them where they already exist. Energy Efficiency 14. Supports legislative, regulatory, and administrative actions for electric utilities to achieve energy efficiency savings of 2 percent per year beyond 2020, building on the 2020 goal established by Governor Hickenlooper through executive order. Municipal and cooperative utilities should also adopt and achieve similar efficiency targets. In the 2017 session of the Colorado General Assembly, CC4CA supported HB 17- 1227, which was enacted to extend an existing law requiring regulated utilities to achieve electricity savings of five percent of retail sales from 2018–2028. Colorado utilities have already demonstrated that they can readily exceed this modest goal. The Southwest Energy Efficiency Project reports that from 2008–16 Xcel Energy and Black Hills Energy achieved ten percent savings, well over one percent per year, with an overall benefit-to-cost ratio of more than two-to-one. Colorado households and businesses saved nearly $1.4 billion net over that time period. Governor Hickenlooper’s Executive Order D 2017-015 set a new goal to achieve two percent per year energy efficiency by 2020, which is readily achievable and should be extended beyond that date. 15. Supports ongoing and sustainable funding for the Weatherization Assistance Program. Low-income and vulnerable households spend a disproportionately large percentage of their income on energy utility bills. The federal Weatherization Assistance Program was created in 1976 to address this problem. Administered here by the Colorado Energy Office, WAP provides funding to locally administered home weatherization programs to provide free weatherization services to Colorado’s low-income residents in order to improve the energy efficiency of their homes. Colorado supplements its annual federal WAP allocation with state severance tax dollars, both of which can be volatile sources of revenue. A stable revenue stream for Colorado’s eight WAP programs would support the dual goals of assisting families in reducing their energy bills while promoting safe, comfortable, and energy-efficient housing. 8 16. Supports state enabling legislation to provide counties and statutory cities and towns with the same authority held by home rule cities to implement local energy conservation policies and programs. Unlike their home rule municipal peers, Colorado counties and statutory cities and towns in many cases lack authority to adopt and implement energy conservation policies and programs. For example, only Colorado home rule cities have statutory authorization to enact energy conservation ordinances despite how effective they are for improving the energy efficiency and performance of existing residential and commercial buildings. Enabling legislation is needed to provide Colorado’s counties and statutory cities and towns with the authority necessary to enact policies and programs that can support and promote energy conservation within their jurisdictions. Transportation 17. Supports Colorado’s adoption of motor vehicle emission standards, including requirements for low-emission and zero-emission vehicles, and collaborative efforts for effective implementation, that are equal to or exceed those already adopted by California. The federal Clean Air Act provides authority for California to adopt its own stringent emissions standards for new motor vehicles and for other states to adopt the California standards. Twelve states plus Washington, D.C. have adopted California’s basic emission standards. These states represent about 35 percent of the nation’s population and the same share of new motor vehicle sales. Nine of these states have also adopted the additional California standards requiring manufacturers to achieve specified sales of zero tailpipe-emission vehicles (i.e., battery-only electric vehicles). California’s vehicle standards have enjoyed unusual bipartisan support, including among Colorado’s congressional delegation, both as an example of cooperative federalism among federal and state governments and as important for protecting the climate. A June 2017 letter to the Administrator of the U.S. Environmental Protection Agency supporting continuation of the EPA waivers under the Clean Air Act for the California standards was signed by Rep. Mike Coffman, Republican of Colorado, and Rep. Jared Polis, Democrat of Colorado, along with other Members of Congress from both parties. In recent years, the basic California standards have been synchronized with federal emission and fuel efficiency standards. However, the Trump administration is now planning to weaken the federal standards, which would dramatically undermine Colorado’s efforts to meet our statewide carbon pollution goals. Reducing emissions from the transportation sector, which has become the sector responsible for the largest share of greenhouse gases, has to be a centerpiece of climate action in the state. 9 At the urging of a wide range of interests across the state, including CC4CA, Governor Hickenlooper’s June 2018 executive order (B 2018 006) directs the Colorado Department of Public Health and Environment to develop an advanced clean car standards rule and formally propose adoption of this rule by the Colorado Air Quality Control Commission. CC4CA supports Colorado adopting the California vehicle standards, including the so-called ZEV (zero-emissions vehicle) standards, and CC4CA supports the kinds of flexible approaches to implementing the ZEV standard here in Colorado that we have seen adopted in other ZEV states. 18. Supports implementation of the Colorado Electric Vehicle Plan, including new state government actions to accelerate the purchase and use of zero emission vehicles. Nationally, transportation has become the sector responsible for the most carbon pollution. Colorado’s recent population growth has led to a commensurate increase in vehicle miles traveled, which has overtaken the emissions reductions made possible through the increasing fuel efficiency of the statewide vehicle fleet. Electrification of light- and heavy-duty vehicles, as well as other emerging zero- emissions technologies, holds perhaps the greatest promise for emissions reductions in this sector. CC4CA supports legislative, regulatory, and administrative action to increase the adoption of electric vehicles by investing in electric vehicle charging stations, educating customers about EVs, and providing customer incentives. CC4CA also supports the current plan to commit a portion of Colorado’s share of the Volkswagen emissions control violations settlement to the construction of electric vehicle charging infrastructure across Colorado, and adoption of the California motor vehicle emission standards (see #17 above), including their provisions on sales of zero-emission vehicles. Fossil Fuel Extraction Activities 19. Supports legislative, administrative, and regulatory actions to expand the monitoring of and reduce the full life cycle emissions from fossil fuel extractive industry activities. The mining and extraction of fossil fuels can result in significant levels of carbon pollution. One primary culprit is methane. Methane has a shorter-lived but much more potent heat-trapping effect than carbon dioxide; thus, reducing methane emissions is a highly effective way to buy time to implement more comprehensive actions to reduce industry-wide carbon dioxide emissions. As one example, in 2014 Colorado adopted rules to limit methane emissions from oil and gas operations by requiring oil and gas companies to find and fix methane leaks in its extraction and delivery infrastructure. The rules also require industry to capture methane and volatile organic compounds, both of which contribute to ground-level ozone pollution. 10 CC4CA supports legislative, administrative, and regulatory actions like these to reduce greenhouse gas emissions throughout the entire extraction and transportation processes involving raw fossil fuels. CC4CA also supports expanded monitoring of the full life cycle emissions from these activities. Solid Waste Reduction 20. Supports adoption and implementation of a plan by the Colorado Department of Public Health and Environment to achieve the statewide waste diversion goals established by the Solid and Hazardous Waste Commission. Recycling and composting reduce emissions of both methane and carbon dioxide. Colorado has a low solid waste diversion rate of 19 percent, compared with the national average of 34 percent. In August 2017, the Colorado Solid and Hazardous Waste Commission adopted new statewide and regional municipal solid waste diversion goals, including separate goals for 11 Front Range counties and for the remainder of the state for the years 2021, 2026, and 2036. Statewide, the goal is to increase the diversion rate to 45 percent by 2036. CC4CA supports CDPHE’s efforts to increase solid waste diversion rates. General 21. Supports the protections and authorities currently provided under environmental laws like the Clean Air Act and the Clean Water Act. Protecting Colorado’s air, water, and land is vital to its environment, economy, and people. The protections and authorities afforded by landmark federal laws such as the Clean Air Act and Clean Water Act are foundational to the fight against climate change. For example, the 2007 ruling by the U.S. Supreme Court that heat trapping emissions are air pollutants and thus subject to regulation under the Clean Air Act, and the subsequent 2009 U.S. Environmental Protection Agency endangerment finding that indeed, heat trapping emissions present a danger to public health, obligate our federal government to utilize the protections provided by the Clean Air Act to take action to limit emissions. Local governments rely on these protections and can be critical allies in this effort, as scores of communities across Colorado already are implementing a broad array of initiatives to advance climate protection at the local level, and often doing so in collaboration with the state and federal governments. But we know more must be done. CC4CA communities support the protections and authorities provided under the body of existing environmental law, including the Clean Air Act and Clean Water Act, and will strongly oppose legislative, regulatory, and other efforts to roll back or diminish them.   TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, FEBRUARY 26, 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 5:01 p.m. A roll call was taken, and Council members  present were Amy Phillips, Scott Prince, Jennie Fancher, Chico Thuon, Tamra N. Underwood and Jake Wolf.  Also present were Acting Town Manager Preston Neill, Town Attorney Eric Heil, Police Chief Greg Daly,  Finance Director Scott Wright, Planning Director Matt Pielsticker, Human Resources Director Lance Richards,  Town Engineer Justin Hildreth and Acting Town Clerk Brenda Torres.    2. APPROVAL OF AGENDA  Councilor Fancher requested the addition of an action item, specifically a motion to put the Hahnewald Barn  Project to a vote by way of a special election or polling of all registered voters in the Town of Avon. Council  agreed to add the item to the agenda as item 7.4. Mayor Pro Tem Phillips requested written report 10.1 be  discussed in conjunction with the survey question item. Councilor Underwood requested to discuss written  reports 10.3 and 10.6. Councilor Fancher made a motion to approve the agenda with the requested  changes. Councilor Underwood seconded the motion and the motion passed unanimously.    3. PUBLIC COMMENT   Michael Cacioppo commented on the new Town Hall. Kathy Ryan expressed concern about floral growth at  the bottom of Nottingham Lake. Tom Ruemmler commented on the Town's Real Estate Transfer Tax.    4. PRESENTATIONS  4.1. NORTHWEST COLORADO SMALL BUSINESS DEVELOPMENT CENTER   (LYNDSEY BROZYNA, NORTHWEST SBDC REGIONAL DIRECTOR)   Lyndsey Brozyna, Acting Regional Director of the Northwest Colorado Small Business Development  Center (Northwest SBDC), gave a presentation to Council about Northwest SBDC.    4.2. COLORADO CITY & COUNTY MANAGEMENT ASSOCIATION 2018 ASSISTANT OF THE YEAR AWARD   (TIM GAGEN, CCCMA SENIOR ADVISOR)  Tim Gagen, CCCMA Senior Advisor, presented the CCCMA 2018 Assistant of the Year Award to  Preston Neill, Acting Town Manager.      4.3. SWEARING IN OF PATROL OFFICER ALAN HERNANDEZ (POLICE CHIEF GREG DALY)      Alan Hernandez‐Martinez took his oath as Avon’s newest Police Officer.    4.4. ADDED ACTION ITEM HAHNEWALD BERN PROJECT VOTE  Tom Ruemmler, Kathy Ryan, Pam Warren, Marty Golembiewski, Jason Denhardt, Buz Ditier, Jack  Gardner, Chuck Bunting, Peter Warren, Chadd Ziegler, Michael Cacioppo and Greg Loshak  commented on this item. Councilor Wolf made a motion "to stop spending any money on the Barn  until a real vote, conducted by the County, in conjunction with our Town, is sent out to the people  with signature verification, the envelopes, and the real check and balance that we deserve as the  people of this Town." Councilor Thuon seconded the motion. Councilor Wolf amended his motion    TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, FEBRUARY 26, 2019  AVON TOWN HALL, 100 MIKAELA WAY  Page 2    by moving to "stop spending any money on this Barn from this point forward until a vote of the  public, that can be signature certified, is cast." Councilor Thuon seconded the motion. Town  Attorney Eric Heil attempted to interpret Councilor Wolf's motion by summarizing that he made a  motion to "hold a special election on the Barn, not to spend any more money on the project,  except the cost associated with a special election." Councilor Wolf confirmed Attorney Heil's  interpretation. Councilor Thuon seconded the interpreted motion.  The motion failed on a vote of  3 to 4. Councilor Fancher, Mayor Pro Tem Phillips, Councilor Underwood and Mayor Smith Hymes  voted no. Councilor Fancher made a motion to have an "unofficial election or survey vote with the  language that has been presented, get any input that we can, and complete in as timely a fashion  as possible with the intent to get the results back by March 27th." Councilor Fancher added to her  motion that she would like to see secrecy sleeves used, as well as signature verification, and the  expectation is that all members of Council will respect the outcome of the vote. Moreover, the  ballots should go out to all registered voters. Councilor Prince seconded the motion. The motion  passed on a vote of 6 to 1. Councilor Underwood voted no.    5. WORK SESSION  5.1. OVERVIEW OF COUNCIL PROCEDURES (TOWN ATTORNEY ERIC HEIL)  Eric Heil, Town Attorney, provided a brief overview of Council procedures, including the Avon  Home Rule Charter and the Avon Town Council Simplified Rules of Order.    6. ACTION ITEMS  6.1. PUBLIC HEARING MAJOR DEVELOPMENT PLAN FOR TWO DUPLEXES ON LOT 5, RIVERFRONT SUBDIVISION   (PLANNING DIRECTOR MATT PIELSTICKER)   Councilor Prince, Councilor Fancher, and Councilor Thuon recused themselves from the item.  Councilor Underwood moved to waive Councilor Thuon's conflict of interest. Mayor Pro Tem  Phillips seconded the motion and the motion passed on a vote of 4 to 0. Councilor Thuon,  Councilor Prince and Councilor Fancher did not vote. Councilor Underwood moved to waive  Mayor Pro Tem Phillips' conflict of interest. Councilor Thuon seconded the motion and the motion  passed on a vote of 4 to 0. Mayor Pro Tem Phillips, Councilor Prince and Councilor Fancher did not  vote. Mayor Smith Hymes opened up the public hearing and no comments were made. Councilor  Underwood moved to approve "the application for the Major Design and Development Plan for  Lot 5 Riverfront Subdivision, as presented tonight, and including conditions as recommended by  staff, insomuch as we have determined that it satisfies the findings required by the Development  Code of Avon”. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 5  to 0. Councilor Prince and Councilor Fancher did not vote on the item since they had recused  themselves.    6.2. 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)   Various comments were made on the ordinance. Mayor Smith Hymes opened it up for public  comment. Betty Todd commented on this item. Mayor Pro Tem Phillips moved to continue this    TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, FEBRUARY 26, 2019  AVON TOWN HALL, 100 MIKAELA WAY  Page 3    item to March 12, 2019 Council meeting. Councilor Fancher seconded the motion and the motion  passed unanimously.    6.3. RESOLUTION 19‐05 APPROVING A CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE   (ACTING TOWN MANAGER PRESTON NEILL)   Councilor Underwood asked for "the implementation of" in provision 1(a) of "Exhibit A: Cultural,  Arts and Special Events Committee Authority and Procedures" to be deleted. Councilor Prince  moved to approve, including the modification provided by Councilor Underwood, Resolution  19‐05 approving a Cultural, Arts and Special Events Committee. Councilor Fancher seconded the  motion and the motion passed on a vote of 6 to 1. Councilor Wolf voted no.    6.4. FIRST READING ORDINANCE 19‐02 AMENDING CHAPTER 3.08 SALES TAX AND ENACTING CHAPTER 3.10  CIGARETTE EXCISE TAX (TOWN ATTORNEY ERIC HEIL)   Councilor Prince moved to approve on first reading Ordinance No. 19‐02 Amending Chapter 3.08  Sales Tax and Enacting Chapter 3.10 Cigarette Excise Tax. Councilor Fancher seconded the motion  and the motion passed unanimously.    6.5. APPROVAL OF MINUTES FROM FEBRUARY 12, 2019 REGULAR COUNCIL MEETING   (ACTING TOWN CLERK BRENDA TORRES)   Councilor Underwood provided minor edits to the minutes. Councilor Fancher moved to approve  the minutes from the February 12, 2019 Regular Council Meeting with the edits provided.  Councilor Underwood seconded the motion and the motion passed on a vote of 6 to 1. Councilor  Wolf voted no.    6.6. APPROVAL OF MINUTES FORM FEBRUARY 19, 2019 SPECIAL COUNCIL MEETING  (ACTING TOWN MANAGER PRESTON NEILL)   Councilor Wolf moved to approve the minutes from the February 19, 2019 Special Council  Meeting. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 5 to 0.  Councilor Underwood and Councilor Thuon abstained from the vote.        7. WRITTEN REPORTS  7.1. UPDATE ON PHASE I HAHNEWALD BARN PROJECT (TOWN STAFF)  The "Update on Phase 1 Hahnewald Barn Update" written report was discussed by Council.  Councilor Prince made a motion to direct staff to issue an RFP for barn moving services.  Councilor Wolf seconded the motion and the motion passed on a vote of 6 to 1. Councilor  Underwood voted no.    7.2. POLICE DEPARTMENT DISPOSITION ON FORFEITED PROPERTIES FOR 2018 (POLICE CHIEF GREG DALY)        TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, FEBRUARY 26, 2019  AVON TOWN HALL, 100 MIKAELA WAY  Page 4    7.3. UPDATE ON BEAVER CREEK BOULEVARD STREETSCAPE PROJECT (TOWN ENGINEER JUSTIN HILDRETH)   Councilor Underwood had some comments and questions related to this report.    7.4. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT NELLY BURNS)    7.5. DISCLOSURE OF POTENTIAL CONFLICT OF INTEREST RELATED TO AVON PERFORMANCE PAVILION      (TOWN ATTORNEY ERIC HEIL)   Councilor Wolf made a comment on this written report. Councilor Underwood moved to waive  Amy Phillips' conflict of interest related to the Avon Performance Pavilion. No second was  received.    7.6. TOWN OF AVON NEWSLETTER (ACTING TOWN MANAGER PRESTON NEILL)   Council provided direction to prepare and distribute a quarterly newsletter.    7.7. ABSTRACT FROM FEBRUARY 19, 2019 PLANNING AND ZONING COMMISSION MEETING     (PLANNING DIRECTOR MATT PIELSTICKER)    8. MAYOR & COUNCIL COMMENTS & MEETING UPDATES  Councilor Fancher mentioned the upcoming Polar Plunge event on March 30th. She requested that it be  highlighted during the March 12th Council meeting. She recognized the success of the Avon Rec Center  swim team, the Narwhals. She asked that the team be recognized at a future Council meeting. She also  asked for staff to meet with Kathy Ryan about her concern about Nottingham Lake. She asked for the  recently completed Fiscal Analysis to be sent to Tom Ruemmler. The Fiscal Analysis compares the  Town of Avon's revenue structure, budget, and services to other peer communities, and assesses the  Town's real estate transfer tax impacts. She asked for the topic of community outreach to be discussed  in more detail at a future Council meeting.    Councilor Thuon said he was approached by Donna Lang, an Avon business owner who expressed that  she's interested in purchasing Rec Center memberships for her 12 employees. She does not want to  pay the out‐of‐town rate and has inquired about paying the resident rate for those memberships.    Councilor Wolf asked for future agenda items to be identified at the bottom of each Regular Council  meeting agenda.                    TOWN OF AVON, COLORADO  AVON REGULAR MEETING MINUTES FOR TUESDAY, FEBRUARY 26, 2019  AVON TOWN HALL, 100 MIKAELA WAY  Page 5    9. ADJOURNMENT   There being no further business to come before the Council, Councilor Wolf moved to adjourn the regular  meeting. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously by Council  members present. The time was 10:23 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  SPECIAL MEETING MINUTES FOR TUESDAY, FEBRUARY 26, 2019  AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620  Special Meeting Minutes 2/26/2019  Page 1    1. CALL TO ORDER & ROLL CALL  Mayor Smith Hymes called the meeting to order at 9:00 a.m. A roll call was taken and Council  members present were Amy Phillips, Jennie Fancher, Scott Prince and Tamra Nottingham Underwood.  Chico Thuon and Jake Wolf were absent. Also present were Acting Town Manager Preston Neill,  Human Resources Director Lance Richards, and Assistant Town Manager/Finance Director Scott  Wright.      2. EXECUTIVE SESSION FOR THE PURPOSE OF DETERMINING POSITIONS RELATIVE TO MATTERS THAT MAY BE SUBJECT TO  NEGOTIATIONS, DEVELOPING STRATEGY FOR NEGOTIATIONS, AND/OR INSTRUCTING NEGOTIATORS, UNDER C.R.S. §24‐6‐ 402(2)(E) CONCERNING TOWN MANAGER CANDIDATES.  Mayor Smith Hymes made a motion to convene into Executive Session for the purpose of determining  positions relative to matters that may be subject to negotiations, developing strategy for negotiations,  and/or instructing negotiators, under C.R.S. §24‐6‐402(2)(e) concerning Town Manager candidates. Mayor  Pro Tem Phillips seconded the motion and the motion passed unanimously by Council members present.  Councilor Thuon and Councilor Wolf were absent. The time was 9:02 a.m.    Executive Session ended at 9:59 a.m.    3. ADJOURNMENT  There being no further business to come before the Council, Mayor Pro Tem Phillips made a motion to  adjourn the meeting. Councilor Underwood seconded the motion and the motion passed unanimously by  Council members present. Councilor Thuon and Councilor Wolf were absent. The time was 10:00 a.m.                                        TOWN OF AVON, COLORADO  SPECIAL MEETING MINUTES FOR TUESDAY, FEBRUARY 26, 2019  AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620  Special Meeting Minutes 2/26/2019  Page 2      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 OF AVON, COLORADO  SPECIAL MEETING MINUTES FOR TUESDAY, FEBRUARY 27, 2019  AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620  Special Meeting Minutes 2/26/2019  Page 1    1. CALL TO ORDER & ROLL CALL  Mayor Smith Hymes called the meeting to order at 9:00 a.m. A roll call was taken and Council  members present were Amy Phillips, Jennie Fancher, Scott Prince and Tamra Nottingham Underwood.  Chico Thuon and Jake Wolf were absent. Also present were Acting Town Manager Preston Neill,  Human Resources Director Lance Richards, and Assistant Town Manager/Finance Director Scott  Wright.      2. EXECUTIVE SESSION FOR THE PURPOSE OF DETERMINING POSITIONS RELATIVE TO MATTERS THAT MAY BE SUBJECT TO  NEGOTIATIONS, DEVELOPING STRATEGY FOR NEGOTIATIONS, AND/OR INSTRUCTING NEGOTIATORS, UNDER C.R.S. §24‐6‐ 402(2)(E) CONCERNING TOWN MANAGER CANDIDATES.  Mayor Smith Hymes made a motion to convene into Executive Session for the purpose of determining  positions relative to matters that may be subject to negotiations, developing strategy for negotiations,  and/or instructing negotiators, under C.R.S. §24‐6‐402(2)(e) concerning Town Manager candidates. Mayor  Pro Tem Phillips seconded the motion and the motion passed unanimously by Council members present.  Councilor Thuon and Councilor Wolf were absent. The time was 9:01 a.m.    Council took a break from 11:00 a.m. to 2:00 p.m.    Councilor Prince left the meeting at 4:29 p.m.    Executive Session ended at 4:37 p.m.    3. ADJOURNMENT  There being no further business to come before the Council, Councilor Underwood made a motion to  adjourn the meeting. Councilor Fancher seconded the motion and the motion passed unanimously by  Council members present. Councilor Prince, Councilor Thuon and Councilor Wolf were absent. The time was  4:38 p.m.                              TOWN OF AVON, COLORADO  SPECIAL MEETING MINUTES FOR TUESDAY, FEBRUARY 27, 2019  AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620  Special Meeting Minutes 2/26/2019  Page 2        RESPECTFULLY SUBMITTED:          _________________________________        Preston Neill, Acting Town Manager    APPROVED:    Sarah Smith Hymes  ________________________________    Amy Phillips  ________________________________    Jake Wolf    ________________________________    Chico Thuon  ________________________________    Tamra N. Underwood ________________________________    Scott Prince    ________________________________    Jennie Fancher  ________________________________        WRITTEN REPORT    To:  Mayor Sarah Smith Hymes & Avon Town Council  From:  Greg Daly, Chief of Police  Date:  March 12, 2019  Topic:  3RD ANNUAL POLAR PLUNGE UPDATE     The Avon Police Department, Town of Avon, Special Olympics Colorado and the Eagle River Fire  Protection District will be hosting the 3rd Annual Polar Plunge on Saturday, March 30th in Nottingham  Lake. The event will take place from 11:00 a.m. to 2:00 p.m. We believe that our event is the coldest in  Colorado. The water temperature last year was 12 degrees. For safety reasons, we had to seriously  evaluate whether we could go ahead but after deliberation with our public safety partners, we did and  yes, it was extremely cold. This year’s event will take place on a later date than last year, March 30th, to  ensure we have perhaps a slightly warmer water, perhaps 13 degrees, to embrace. We collectively  raised approximately $6,000 from last year’s Polar Plunge.    We have advertised our event on Facebook and have challenged fellow law enforcement agencies to  send teams. The link for registering or donating is https://www.classy.org/event/avon‐polar‐plunge‐ presented‐by‐westerra‐credit‐union/e222339.     This event could not happen without the tremendous assistance from the Town of Avon’s Public Works  Department, as well as Special Events and Recreation Center staff. In addition, the rescue swimmers  from the Eagle River Fire Protection District endure the cold temperatures and are in the water for  immediate assistance.     The Avon Police Department has been an avid supporter of Special Olympics Colorado. We have  participated in the Polar Plunge, the Annual Torch Run and multiple Tip‐A‐Cop events over recent years.  We raised approximately $2,200 from the Dueling Blue Plate/ Vin 48 Tip‐A‐Cop event last June. Special  Olympics Coordinator, Officer Al Zepeda and his wife, Kathleen, have attended the Colorado Special  Olympics in Grand Junction and have assisted at the state event. These events would not happen if not  for Officer Al Zepeda’s dedication to this extremely worthy charity. We have many Special Olympians  living in or around Avon and it is with great pride that the men and women of the Avon Police  Department passionately support this cause.     Respectfully Submitted,       Greg Daly  Chief of Police          WRITTEN REPORT To: Honorable Mayor and Town Council From: Scott Wright, Asst. Town Manager / Finance Director Date: March 12, 2019 Agenda: Real Estate Transfer Tax Analysis Action Before Council This memo is for information only. Proposed Motion N/A Background Based upon a request by Councilor Phillips, the Finance Department staff has put together an analysis of real estate transfer taxes. Below is an analysis of transfer taxes received based on subdivision where the property was located. 2016 2017 2018  Ascent $96,840.00 $66,684.00 $197,106.00  Avon Crossing 49,774.00 70,892.00 58,684.00  Avon Lake Villas 113,254.00 51,430.00 92,440.00  Balas West 9,000.00 26,300.00 21,370.00  Barrancas 23,630.00 39,770.00 20,280.00  Benchmark at BC 185,072.00 112,623.00 79,966.00  Bridgewater Terr 13,937.00 0.00 24,680.00  Bristol Pines 5,940.00 9,100.00 26,300.00  Brookside 377,616.00 201,120.00 108,000.00  Buck Creek 76,000.00 76,000.00 26,899.88  Canyon Run 64,220.00 74,900.00 98,370.00  Chapel Square 50,062.00 46,160.00 29,000.00  Eaglebend 119,942.00 31,470.00 109,040.00  Grandview 5,400.00 16,100.00 4,868.86  Greenbrier 22,314.60 25,820.00 20,500.00  Lakeside 0.00 0.00 11,460.00  Miscellaneous 512,362.00 303,948.00 297,310.00  Mountain Star 131,080.00 276,800.00 158,100.00  Mountain Villa 0.00 13,400.00 14,650.00  Nottingham Station 0.00 158,500.00 0.00  Orchard 0.00 0.00 10,600.00  Ridgeline 7,740.00 23,000.00 8,300.00  Riverfront 362,720.00 365,994.00 432,350.00  Seasons 34,460.00 85,180.00 27,840.00  Sherwood Meadows 7,900.00 46,610.00 0.00  Sunridge/Liftview 159,014.00 221,936.25 157,341.00  Westgate 0.00 0.00 29,280.00  Wildcat 0.00 11,300.00 0.00  Wildwood 0.00 12,048.00 0.00  Wildridge 463,504.00 728,334.00 713,676.00  Wyndham 639,419.97 1,121,123.29 535,275.40  Total RETT $3,531,201.57 $4,216,542.54 $3,313,687.14  Total Exemptions $   181,380.00      $     245,172.25   $  166,852.00    In addition, an analysis has been prepared that indicates the purchasers address for 2018 transactions.     0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% Commercial Residential, in County Residential, Out of County, In CO Residential, Outside of CO Unknown Purchasers Address ‐2018 R.E. Transactions Total M E M O R A N D U M TO: Board of Directors FROM: Catherine Hayes, Board Secretary DATE: Feb. 28, 2019 RE: Summary of Authority’s Feb. 28, 2019, Board Meeting The following is a summary of items discussed at the Feb. 28, 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. Rules and Regulations Updates: Appendix G The board unanimously approved updates to Appendix G of the Rules and Regulations. Maureen Mulcahy summarized the need for the updates, to ensure compliance with the state-issued Backflow Program and Cross Connection Control (BPCCC) requirements. Composting at the Vail office Linn Brooks said the District is receiving compost service at the Vail office to promote its sustainable initiatives and keep organics out of local landfills, reducing greenhouse gas emissions. Employees are encouraged to bring in compost from home, and Linn offered this service to interested board members as well. West Slope Charge Fund Linn Brooks explained this charge and resulting fund, which was a requirement of the Colorado River Cooperative Agreement. Denver Water charges a fee to customers outside of its 2010 service area. The West Slope signatories of the CRCA are the beneficiaries of the fund, which is a compensatory payment to offset water that is transmountain diverted to the front range; the fund is to be used for West Slope water projects. Quarterly Financial Report James Wilkins reported that Authority water sales were above budget projections, with May and July sales much higher than anticipated. Authority impact fee revenues were in line with projections, and many developers paid at the end of December, prior to annual increases. ADWF Capital Improvements Update Brian Tracy presented an overview of recent capital improvements at the Avon Drinking Water Facility. State requirements have required many of the upgrades, including a project to reduce disinfection byproducts to meet new Colorado Department of Public Health and Environment (CDPHE) regulations. Other highlights at the facility included being the first water provider to receive credits for ozone disinfection, as well as having 24/7 automated operations. AWWTF Nutrient Project Partnering Update Jeff Schneider and Melissa Marts gave an overview of upcoming Avon Wastewater Treatment Facility capital improvements to meet the state’s nutrient regulations. A construction manager at risk method is being used, and Melissa noted a partnering session with the staff, and engineering and contractor representatives to kick the project off in a collaborative spirit and to minimize construction cost risk. Construction is expected to kick off this fall and be completed in 2022. 6 West Project Issues Jason Cowles reported a subcontractor at the 6 West project did not properly install the water and sewer mains for the development. The District’s field inspector identified numerous issues, which the subcontractor has since remedied. To protect the Authority and District if these fixes are not sufficient, an extended three-year warranty for the work will be procured by the developer; warranty bonds will also be Summary of Authority’s Feb. 28, 2019, Board Meeting Page 2 of 2 assigned to the Authority and District by the contractor to back the extended warranty. Further, the District will record a perpetual lien against the property, which will be memorialized via an agreement with the subcontractor’s company. Legislative Update Diane Johnson updated the board on two bills of interest: HB 1050, which would extend to special districts the same policy that came from 2013 legislation, which said any homeowner association (HOA) rules that require homeowners to have turf grass are unenforceable. This is ready for the governor’s signature. The other bill, HB 1108, is an iteration of a similar 2018 bill to allow nonresident property owners to vote in special district elections for board members. She will continue to monitor this legislation. Drought Contingency Planning Diane Johnson updated the board on drought contingency planning, particularly issues that the lower basin states are having. Monday, March 4, is the deadline for the lower basin states to come to agreement regarding their drought contingency plan. The last outstanding issue is how to handle the Salton Sea, which is shrinking and exposing toxic lakebed in the Imperial and Coachella Valley areas. Colorado Outdoor Recreation and Economy Act Glenn Porzak discussed this legislation, which will be introduced in Congress and, among other issues, deals with wildfire coordination efforts in wilderness areas. Of particular interest to the Authority and District are the inclusion of Camp Hale as a National Treasured Landscape, as water released from Eagle Park Reservoir must traverse this areas. Glenn also pointed out that the current legislation does not require a clean up of unexploded ordnances in the area. He will continue to monitor this. Pando Feeder Canal Absolute/Diligence Application Glenn Porzak reported there were no opposers to the Pando Feeder canal filing to make absolute a portion of these important water rights. He filed the motion for entry of final decree and is awaiting the referee’s signature. Approval of Settlement with TCRP and other parties The board unanimously approved the terms of settlement with Traer Creek Resort Properties and other parties involved in the litigation, per the agreed upon settlement terms.