The URL can be used to link to this page

TC Packet 05-28-2019 AVON TOWN COUNCIL MEETING AGENDA TUESDAY, MAY 28, 2019 MEETING BEGINS AT 5:05 PM AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK BRENDA TORRES AT 970-748-4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. 1 AVON LIQUOR LICENSING AUTHORITY MEETING BEGINS AT 5:00 PM (SEE SEPARATE AGENDA ON PAGE 3) AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:05 PM 1. CALL TO ORDER AND ROLL CALL 5:05 2. APPROVAL OF AGENDA (MAYOR SMITH HYMES) 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA [AN INITIAL THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK. SPEAKER MAY REQUEST MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROVED BY A MAJORITY OF THE COUNCIL.] 5:10 4. BUSINESS ITEMS 4.1. PRESENTATION: FIRST/LAST MILE STRATEGY STUDY UPDATE (JARED BARNES, EAGLE COUNTY) (20 MINUTES) 5:15 4.2. PRESENTATION OF THE 2018 ANNUAL AUDIT AND MOTION TO ACCEPT (PAUL BACKES, MCMAHAN & ASSOCIATES) (15 MINUTES) 5:35 4.3. RESOLUTION 19-12 APPROVING A CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE (DEPUTY TOWN MANAGER PRESTON NEILL) (5 MINUTES) 5:50 4.4. CONTINUATION OF INTERVIEWS OF CULTURAL, ARTS, AND SPECIAL EVENTS COMMITTEE CANDIDATES AND APPOINTMENT OF 7 MEMBERS (DEPUTY TOWN MANAGER PRESTON NEILL) (30 MINUTES) 5:55 4.5. WORKSESSION: COMMUNITY HOUSING EFFORT OVERVIEW (TOWN MANAGER ERIC HEIL) (20 MINUTES) 6:25 4.6. PUBLIC HEARING: SECOND READING ORDINANCE 19-03 APPROVING CODE TEXT AMENDMENTS FOR INCLUSIONARY HOUSING REQUIREMENTS (PLANNING DIRECTOR MATT PIELSTICKER) (15 MINUTES) 6:45 4.7. FIRST READING ORDINANCE 19-01 AMENDING THE AVON MUNICIPAL CODE TO AUTHORIZE FEE WAIVERS AND TAX EXEMPTIONS FOR COMMUNITY HOUSING PROJECTS (TOWN MANAGER ERIC HEIL) (15 MINUTES) 7:00 4.8. WORKSESSION: CIVIC PARK PLANNING OVERVIEW (PLANNING DIRECTOR MATT PIELSTICKER) (50 MINUTES) 7:15 4.9. FIRST READING ORDINANCE 19-04 AMENDING SECTION 9.12.080 OF THE AVON MUNICIPAL CODE TO AUTHORIZE TOWN COUNCIL AND TOWN MANAGER TO DESIGNATE EVENTS THAT ALLOW PERSONS OVER TWENTY-ONE YEARS OF AGE TO BRING AND CONSUME ALCOHOL BEVERAGES ON TOWN PROPERTIES (TOWN MANAGER ERIC HEIL) (10 MINUTES) 8:05 AVON TOWN COUNCIL MEETING AGENDA TUESDAY, MAY 28, 2019 MEETING BEGINS AT 5:05 PM AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK BRENDA TORRES AT 970-748-4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. 2 4.10. APPROVAL OF MINUTES FROM MAY 14, 2019 REGULAR COUNCIL MEETING (TOWN CLERK BRENDA TORRES) (5 MINUTES) 8:15 5. WRITTEN REPORTS 5.1. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT NELLY BURNS) 5.2. UPDATE ON O’NEAL SPUR PARK STRUCTURES (DEPUTY TOWN MANAGER PRESTON NEILL) 5.3. ABSTRACT FROM MAY 21, 2019 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) 6. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES) 8:20 7. EXECUTIVE SESSION FOR THE PURPOSE OF DETERMINING POSITION RELATIVE TO MATTERS THAT MAY BE SUBJECT TO NEGOTIATIONS AND DEVELOPING STRATEGIES FOR NEGOTIATIONS CONCERNING POTENTIAL TOWN ATTORNEY CANDIDATES PURSUANT TO C.R.S. §24-6-402(2)(E) (30 MINUTES) 8:35 8. ADJOURNMENT 9:05 _________________________________________________________________________________________________________________________________________________________________________________________________________ *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 AGENDAS: June 4, 2019: Planning and Zoning Commission: Overview of Village (at Avon) PUD Guide June 11, 2019: Presentation: LEED Gold Certification of Avon Town Hall Public Hearing: Resolution Approving General Fund Budget Amendment Action on Notice of Award for Riverfront Trail Project Interviews of Town Attorney Candidates June 25, 2019: Council Retreat during day: Review of 2019 Strategic Plan and Initial Discussion of 2020 Strategic Plan June 25, 2019: Review and Action Contribution Request for Eagle County Loan Fund Direction Requested: Avon Road/I70 Underpass Interview and Appointment of PZC Member Eagle River Water Quality Improvement Effort Overview Review of Styrofoam and Plastic Regulations AVON LIQUOR LICENSING AUTHORITY MEETING AGENDA TUESDAY, MAY 28, 2019 MEETING BEGINS AT 5:00 PM AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK BRENDA TORRES AT 970-748-4022 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. 3 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA [AN INITIAL THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK. SPEAKER MAY REQUEST MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROVED BY A MAJORITY OF THE COUNCIL.] 4. REPORT OF CHANGE – MODIFICATION OF PREMISES 4.1. APPLICANT: SOUTHSIDE BENDERZ LLC D/B/A SOUTHSIDE BENDERZ LOCATION: 182 AVON ROAD SUITE 208 MANAGER: NOAH BENDER 5. APPROVAL OF THE MINUTES FROM APRIL 30, 2019 MEETING 6. WRITTEN REPORT 6.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (LIQUOR LICENSING AUTHORITY SECRETARY BRENDA TORRES) 7. ADJOURNMENT 1 LIQUOR LICENSING AUTHORITY REPORT To: Avon Liquor Licensing Authority From: Brenda Torres, Liquor Licensing Authority Secretary Meeting Date: May 28, 2019 Topic: CHANGE, ALTER OR MODIFY PREMISES FOR SOUTHSIDE BENDERZ ACTION BEFORE THE LIQUOR LICENSING AUTHORITY Town Council acting as the Local Liquor Licensing Authority is asked to consider the Report of Changes for a modification of premises for Southside Benderz LLC d/b/a Southside Benderz, 182 Avon Road Suite 208. RECOMMENDED MOTION I move to approve (or deny stating the reasons for denial) the modification of premises for Southside Benderz LLC d/b/a Southside Benderz. BACKGROUND Noah Bender, manager of Southside Benderz, has submitted the “Change, Alter or Modify Premises” application requesting a “modification of premises” for his establishment. His request is made in Section 9 of the application form, and is related to the following: • Expansion of outside patio SUMMARY Regulation 47-302 Changing, Altering, or Modifying Licensed Premises. Basis and Purpose. The statutory authority for this regulation is located at subsections 44-3-202(1)(b), 44- 3-202(2)(a)(I)(A), and 44-3-202(2)(a)(I)(D), C.R.S. The purpose of this regulation is to establish procedures for a licensee seeking to make material or substantial alterations to the licensed premises and provide factors the licensing authority must consider when evaluating such alterations for approval or rejection. A. After issuance of a license, the licensee shall make no physical change, alteration or modification of the licensed premises that materially or substantially alters the licensed premises or the usage of the licensed premises from the plans and specifications submitted at the time of obtaining the original license without application to, and the approval of, the local and state licensing authorities. For purposes of this regulation, physical changes, alterations or modifications of the licensed premises, or in the usage of the premises requiring prior approval, shall include, but not be limited to, the following: 1. Any increase or decrease in the total size or capacity of the licensed premises. 2. The sealing off, creation of or relocation of a common entryway, doorway, passage or other such means of public ingress and/or egress, when such common entryway, doorway or passage alters or changes the sale or distribution of alcohol beverages within the licensed premises. 2 For more references to Regulation 47-302 please follow this link: https://www.sos.state.co.us/CCR/GenerateRulePdf.do?ruleVersionId=8009&fileName=1%20CCR%20203-2 The applicant has submitted the required materials for making this request to the local authority and the State of Colorado liquor enforcement division. Diagrams of the current premises and of the proposed area to add to current licensed premises have been included. Noah Bender, representing Southside Benderz, will be present to provide support for this application as well as answer any questions. There is a state fee associated with modification of premises applications; the applicant has submitted this fee. The lease is part of the application submittal and is on file at the Town Clerk’s office ATTACHMENTS ✓ Permit application and report of changes (State form DR 8442) ✓ Diagrams of current licensed premises and diagram of the proposed changes for the licensed premises TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, APRIL 30, 2019 AVON TOWN HALL, 100 MIKAELA WAY Page 1 1. CALL TO ORDER AND ROLL CALL Chairwoman Smith Hymes called the meeting to order at 5:00 p.m. A roll call was taken and Board members present were Amy Phillips, Scott Prince, Jennie Fancher, and Jake Wolf. Board members Chico Thuon and Tamra Underwood were absent. Also present were Town Manager Eric Heil, Police Chief Greg Daly, Recreation Director John Curutchet, Public Works Director Gary Padilla, Planning Director Matt Pielsticker, Deputy Town Manager Preston Neill and Secretary Brenda Torres. 2. APPROVAL OF AGENDA There were no changes to the agenda. 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA No public comments were made. 4. PUBLIC HEARING SPECIAL EVENTS PERMIT 4.1. APPLICANT NAME: BEAVER CREEK RESORT COMPANY OF COLORADO EVENT NAME: BEAVER CREEK RODEO SERIES EVENT DATE: JUNE 20 & 27, JULY 11 & 18, AUGUST 01, 08 & 15, 2019; 4:00 P.M. UNTIL 10:00 P.M. LOCATION: TRAER CREEK LOT 1 EVENT MANAGER: RACHEL LAUX PERMIT TYPE: MALT, VINOUS AND SPIRITUOUS LIQUOR Chairwoman Smith Hymes opened the public hearing and no comments were made. Rachel Laux, the Event Manager, was present to answer any questions. Board member Fancher moved to approve the Special Events Permit application for Beaver Creek Resort Company of Colorado Beaver Creek Rodeo Series on June 20 & 27, July 11 & 18, August 01, 08 & 15, 2019. Board member Prince seconded the motion and it passed unanimously by those present. Board members Chico Thuon and Tamra Underwood were absent. 5. APPROVAL OF THE MINUTES FROM APRIL 9, 2019 MEETING Board member Fancher moved to approve the minutes from April 9, 2019 Liquor Authority Meeting. Vice Chairwoman Phillips seconded the motion and it passed unanimously by Board members present. Board members Chico Thuon and Tamra Underwood were absent. 6. WRITTEN REPORT 6.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (LIQUOR LICENSING AUTHORITY SECRETARY BRENDA TORRES) 7. ADJOURNMENT There being no further business to come before the Board, Board member Prince moved to adjourn the liquor meeting. Board member Fancher seconded the motion and it passed unanimously by Board members present. Board members Chico Thuon and Tamra Underwood were absent. The time was 5:04 p.m. TOWN OF AVON, COLORADO AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES FOR TUESDAY, APRIL 30, 2019 AVON TOWN HALL, 100 MIKAELA WAY Page 2 RESPECTFULLY SUBMITTED: ____________________________________ Brenda Torres, Secretary APPROVED: Sarah Smith Hymes ___________________________________ Amy Phillips ___________________________________ Jake Wolf ________________________________ Chico Thuon ________________________________ Jennie Fancher ________________________________ Scott Prince ________________________________ Tamra Underwood ________________________________ AVON LIQUOR LICENSING AUTHORITY WRITTEN REPORT To: Avon Liquor Licensing Authority From: Brenda Torres, Liquor Licensing Authority Secretary Date: May 28, 2019 Topic: REPORT ON RECENT ADMINISTRATIVE APPROVALS SUMMARY: The Town’s local liquor licensing regulations allow for administrative review and approval of routine liquor license applications, including: (1) Renewals, (2) Modification of Ownership, (3) Modification of Managers, and (4) Special Events Permits for events already approved by the Town Council. Requirements for administrative approval include that the application is complete, there is no new criminal activity on the background and there are no liquor code violations during the last year. Renewals and Special Event Permits require notice to be posted for seven days and require the Town Clerk to accept comments and/or requests for a public hearing before the Avon Town Council. In all cases, the Town Clerk has the discretion to refer the application to the Avon Town Council. The Town Clerk is required to report administrative approvals, which is the reason for this written report. Dating back to April 30, 2019, the Town has received three Liquor License Renewal Applications, two Special Events permits, one Modification of Ownership and two Modification of Managers that have met all the requirements for administrative review and approval. These aplications were reviewed by the Town liquor licensing legal counsel and ultimately approved by the Town Clerk. No comments, complaints, or request for hearings were received. They are as follows: Renewals: Applicant: Walmart INC d/b/a Walmart #1199 Location: 171 Yoder Avenue Type: Fermented Malt Beverage Off Premises (City) Manager: Carrie Tiller Applicant: East West Resort LLC & Avon Riverfront LLC d/b/a Westin Riverfront Resort & Spa & Maya Location: 126 Riverfront Ln Type: Resort Complex (City) Manager: Kristen Pryor Applicant: YERF LLC d/b/a Ticino Italian Restaurant Location: 100 W Beaver Creek Blvd #127 Type: Hotel & Restaurant Manager: Charles Frey Special Event Permits: Applicant: Town of Avon Event: Town Clean Up Day Dates: June 14, 2019 5:30 p.m.-8:00 p.m. Location: Avon Performance Pavilion Manager of Event: Preston Neill Applicant: Town of Avon Event: Pop-Up Strings Dates: May 26 and September 1, 2019 5:00 p.m.-7:00 p.m. Location: Avon Performance Pavilion Manager of Event: Preston Neill Modifications: Transfer of Ownership: Applicant: 7-Eleven, INC d/b/a 7-Eleven Store 34209B Location: 008 Nottingham Road Type: Fermented Malt Beverage Off Premises (City) New Owner: Donald Wills Change of Manager: Applicant: Walmart INC d/b/a Walmart #1199 Location: 171 Yoder Avenue Type: Fermented Malt Beverage Off Premises (City) New Manager: Carrie Tiller Applicant: Miller’s Bottle Shop LLC d/b/a Joe’s Liquors Location: 1060 W Beaver Creek Blvd Type: Retail Liquor Store New Manager: Clayton Williams TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Preston Neill, Deputy Town Manager Date: May 28, 2019 Topic: PRESENTATION: FIRST/LAST MILE STRATEGY STUDY UPDATE SUMMARY Jared Barnes, Planning Manager for ECO Transit & Trails, will attend Tuesday’s Council meeting to present the Eagle County First/Last Mile Strategy Study. ATTACHMENTS Attachment 1 – Eagle County First/Last Mile Strategy Study Presentation Attachment 2 – Eagle County First/Last Mile Strategy Study Final Draft Presentation, May 2019 ATTACHMENT 1 Background ATTACHMENT 1 What is the “ First Last Mile” Gap? •A barrier that discourages potential riders from using transit because a station cannot be easily accessed •Can include geography, street network and design, or a (perceived) lack of available transportation options •The easier it is to access the system, the more likely people are to use it Study Goal: To identify strategies, policies, and infrastructure to improve connectivity to ECO Transit to make transit services accessible to more people ATTACHMENT 1 What will this •Collection and analysis of existing data •Toolbox of potential solutions •Bicycle infrastructure •Pedestrian infrastructure •Transportation Demand Management •Ride hailing/shuttles •Bike share •High priority locations for implementation •Cost and implementation considerations Study Explore? ATTACHMENT 1 Project Timeline and Next StepsATTACHMENT 1 Community Engagement ATTACHMENT 1 Recommended Strategies 1.Transportation Demand Management 2.Ride-hailing 3.Bike share expansion 4.Bicycle and Pedestrian infrastructure 5.Alignment with Local Transit Agencies ATTACHMENT 1 •Parking management •Fare structure •Stop amenities •Wayfinding Transportation Demand Management Toolbox •Marketing and promotion •Educational material •Bikes on/in buses •Trip planning apps + ATTACHMENT 1 Mountain Family Health Center ⇆Freedom Park Bus Stop Ride-Hailing Minturn: Fixed Route→ On-Demand First Last Mile Connections 1 2 3 ATTACHMENT 1 Bike Share Existing: ECO funding expansion of Avon’s bike share program Long-term: Potential change of vendor from Zagster 1 2 3 Near-term: ECO funding pilot of e-bike share Park City, UT e-bike share ATTACHMENT 1 Bike Share ATTACHMENT 1 Top 10 Stops for Bike/Ped Infrastructure ATTACHMENT 1 Pedestrian Infrastructure Hwy 6 at Eagle Bend/StonebridgeBeaver Creek Bear LotATTACHMENT 1 Pedestrian Infrastructure Hwy 6 at River’s EdgeBeaver Creek Bear LotATTACHMENT 1 Bicycle Infrastructure Avon areaBicycle Infrastructure ATTACHMENT 1 Next Steps ATTACHMENT 1 •Update/Community Presentations: Present the final recommendations to each community board and share the study with them. •Implementation: Begin implementing recommendations. MFHC Ride Hailing, Mobile Fare Payments, Coordinated Information Hub. Bike share expansion to Edwards and EagleVail. •Funding: Identify funding opportunities to implement first last mile solutions? Work with CDOT and Town’s to improve roadways and bus stops in alignment with plan. ATTACHMENT 1 Questions? ATTACHMENT 1 APRIL 2019Eagle County First/Last Mile Strategy Study ATTACHMENT 2 “I think these options are great and would like to see more public/ private partnerships to connect outlying communities or uphill communities with service routes.” -Eagle County Resident ATTACHMENT 2 Executive Summary p1 Introduction p5 Table ofContents 01 02 Existing Conditions p9 03 Case Studies p19 04 Community Engagement p25 05 Recommendations p27 06 Next Steps p95 07 Appendices p101 08 ATTACHMENT 2 1Executive Summary This report addresses recommendations to address the first/last mile gap between ECO Transit stops and users’ origins and destinations. The following document provides an evaluation of first/last mile gaps, a set of recommended improvements that would help all users access transit more easily, and a prioritization of the proposed solutions. • CASE STUDIES: Exploration of best practices and lessons learned from first/last mile solutions around the country •EXISTING CONDITIONS: Synthesis of ECO Transit and local transit agencies’ schedules, on-motorized infrastructure, and previous planning efforts •COMMUNITY ENGAGEMENT: Feedback on existing barriers to accessing transit, draft recommendations, and priorities FIRST MILE LAST MILE TRIP BUS RIDE THE ASSESSMENT OF FIRST/LAST MILE GAPS AND OPPORTUNITIES ARE INFORMED BY: EXISTING CONDITIONS ANALYSIS, CASE STUDIESAND LITERATURE REVIEW NOVEMBER 2018:STAKEHOLDER AND PUBLIC INPUT DRAFTRECOMMENDATIONS MARCH 2019:STAKEHOLDER, COUNTY COMMISSIONER, AND PUBLIC INPUT DRAFTREPORT FINAL REPORT ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 2 THE CATEGORIES OF PROPOSED RECOMMENDATIONS AS A PART OF THIS STUDY ARE AS FOLLOWS: Upgrading multimodal access through infrastructure improvements will allow more users to connect with ECO Transit services through non-motorized modes. Recommendations include sidewalks, crossings, on-street bike facilities, multi-use paths, lighting, wayfinding signage, and bike racks. The following ten stop pairs were identified as the highest priority for first/last mile bicycle and pedestrian infrastructure improvements. Transportation demand management (TDM) strategies are cost-effective policies and programs that aim to make more efficient use of existing transportation resources and reduce single occupancy vehicle trips by influencing travel behavior. The top three strategies recommended as a part of this study are: 1. Bikes on/in buses 2. Marketing 3. Integrated trip planning app, mobile ticketing, and electronic payment 1. Highway 6 at Eaglebend (East and West) 2. Highway 6 at Stonebridge Drive (East) 3. Highway 6 at Sylvan Lake Road 4. Chambers Park-and-Ride 5. Beaver Creek Lot (East and West) 6. Highway 6 at Rivers Edge (East and West) 7. Highway 24 at Harrison Avenue (East) 8. Highway 24 at North Main Street (West) 9. Highway 6 at Riverwalk (West) 10. Eagle Valley High School BICYCLE AND PEDESTRIAN INFRASTRUCTURE TRANSPORTATION DEMAND MANAGEMENT Service coordination between ECO Transit, Avon Transit, Beaver Creek Transit, and Vail Transit would help bridge the first/last mile gap. Coordination should address marketing and outreach, trip planning, an integrated map, integrated fare payment, alignment of schedules for timed transfers, and co-locations of bus stops. ALIGNMENT WITH LOCAL TRANSIT AGENCIES ATTACHMENT 2 3 Mountain Family Health Center On March 1, 2019, this study launched a fully subsidized on-demand public private partnership pilot with Ride Taxi to address the one-mile gap between the Mountain Family Health Center and the nearest bus stop (the Freedom Park bus stop) First/Last Mile On-Demand Service On-demand transportation between a defined service area and a bus stop or transfer station Minturn Route to On-Demand Conversion of the Minturn fixed route to an on-demand/deviated route RIDE-HAILING (OR ON-DEMAND) SERVICES Dockless bikes and scooters were explored in this study but not recommended due to Eagle County’s: • dispersed land use • extreme winter weather • gaps in bicycle and pedestrian infrastructure Additionally, dockless mobility tools represent a nascent and potentially volatile industry. Bringing a potentially impermanent mobility option to the County would not be a reliable strategy for bridging first/last mile gaps. Also, dockless bike and scooters have the potential to compete with the existing and expanding docked bike share program, which would undermine public investment in the existing system. OTHER EMERGING MOBILITY SOLUTIONS This study recommends that ECO Transit invest and support the growth of Avon’s existing bike share system by placing additional stations at bus stops throughout the region. This investment may include expansion to a fleet of electric bikes in the longer-term. BIKE SHARE ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 4 Bicycle and Pedestrian infrastructure: Improvements to bus stops and opportunistic investment in facilities adjacent to bus stops based on development, repaving, and other capital improvement projects 4. Ride-hailing: • Continue to fund and evaluate the Mountain Family Health Center pilot • Release an RFP for a provider to run the Minturn fixed route as an on-demand service • Consider opportunities for a first/last mile on- demand service 2. Transportation demand management: Low cost opportunities to form partnerships, improve user experience, and educate existing and new riders PRIORITIZATION FUNDING The Study concludes with a list of federal, state and local funding sources that could fund implementation of the recommendations. Bike Share: Support expansion of existing bike share as an opportunity to address first/last mile gaps 1. 3. THE NEXT STEPS FOR IMPLEMENTATION ARE: Although recommendations are not mutually exclusive, there is limited funding available for transportation improvements. Therefore, prioritization between these categories of recommendations is an important consideration to inform implementation as funding and resources becomes available. Prioritization was informed based on a combination of stakeholder and public input, Board of County Commissioners feedback, and professional judgment from the project team. The Study offers the following prioritized list of strategies for improving first/last mile connections to ECO Transit service. ATTACHMENT 2 02 Introduction Since 1980, regional bus service has been moving residents, employees and visitors between Vail, Avon, Beaver Creek and Eagle County. Now known as Eagle County Regional Transportation Authority (ECO Transit), this system provides five routes (four in the non-ski season) and a paratransit service that carries about one million passengers per year. The region is also served by four additional public and private providers—Avon Transit, Beaver Creek Transit, Vail Transit, and the Colorado Department of Transportation (CDOT). While ECO Transit provides extensive coverage of the region and continues to explore and invest in future network and service expansions, the agency is also interested in enhancing access to transit through first/last mile solutions, serving as the catalyst for this study. ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 6 A first or last mile gap is a barrier that discourages potential riders from using transit because a stop or station cannot be easily accessed from home, work, or other destinations. This gap can include geography, topography, infrastructure, street design, or a lack of available transportation services.9 The Eagle County First/Last Mile Strategy Study is intended to provide increased connectivity to ECO Transit service and make transit services accessible to more people by identifying infrastructure, strategies, programs, and policies to improve connectivity to bus stops. Making it easier to access fixed route transit is reflective of Eagle County’s commitment to the triple bottom line— environmental, economic, and social benefits. Implementing these often low-cost solutions expands the area that is accessible by ECO Transit routes, making transit a more viable, convenient and comfortable option. These solutions provide not only increased access to transit, but improved connectivity, safety and transportation options for all travelers. They have the potential to increase the quality of the travel experience for transit users; and this experience begins when a user starts their journey to access a transit stop/station, and includes the first/last mile, waiting at a stop, and transit frequency and fare. ATTACHMENT 2 7 Given the range of land use contexts (resort, town center, residential and rural) of ECO Transit bus stops as well as user types (tourists/visitors, residents, part-time residents, commuters, and employees), a spectrum of first/last mile options should be available to increase transit access points. This study makes first/last mile recommendations that fall under six categories. The plan is organized based on these categories: BICYCLE AND PEDESTRIAN INFRASTRUCTURE1 2 3 4 5 6 TRANSPORTATION DEMAND MANAGEMENT ALIGNMENT WITH LOCAL TRANSIT AGENCIES RIDE-HAILING (OR ON-DEMAND) SERVICES BIKE SHARE OTHER EMERGING MOBILITY SOLUTIONS ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 8 ATTACHMENT 2 03 Existing Conditions The following section summarizes the existing conditions for ECO Transit, as they relate to first/last mile challenges in the service area. A complete assessment of the existing conditions can be found in a technical memorandum in Appendix A. The memo and this section discuss: available transit service in the County offered by ECO Transit and local transit agencies; socioeconomic and infrastructure characteristics around each bus stop; the bicycle and pedestrian infrastructure in the service area; and previous planning efforts’ public input and proposed first/ last mile solutions. ECO TRANSIT SERVICE ECO Transit currently operates five fixed routes (Valley, Highway 6, Vail/Beaver Creek Express, Leadville and Minturn) throughout Eagle County as shown in Figure 1; the Leadville route also serves part of Lake County. ECO Transit owns park-and-ride lots in nine locations. ECO Transit offers a paratransit service for eligible passengers within a ¾-mile buffer from all routes. Paratransit users can request rides by calling ECO Transit Dispatch. ECO Transit also partners with the Veterans’ Services Department to provide a free shuttle service to Glenwood Springs and Grand Junction medical facilities for veterans. Launched in June 2018 as Vet Transport, this service provides rides Monday through Friday, from the Gypsum Park-and-Ride to either the Glenwood Springs TeleHealth Clinic or the Grand Junction VA Medical Center. ATTACHMENT 2 FIGURE 1: ECO Transit Routes LeadvilleUS Hwy 24 US H w y 6 H w y 8 2 I- 70US Hwy 6 Vail Avon Eagle Minturn Gypsum Basalt Red Cliff Beaver Creek Route Highway 6 Route Eagle Valley Route Minturn Route Leadville Route ATTACHMENT 2 11 SCHEDULES AND RIDERSHIP ECO Transit runs separate schedules during winter and summer. The winter schedule is in effect from mid-November to mid-April and operates at an increased frequency and longer operating hours. Routes operate beginning at 5 am at the earliest to 2 am at the latest. Table 1 shows annual ridership on ECO Transit routes from the beginning of winter service in 2017 through the end of summer service in 2018. Between 2010 to 2016, ECO Transit’s fixed- route ridership increased by 45%, from 631,000 passengers in 2010 to 917,000 passengers in 2016. However, ridership in 2016 was still 3% lower than the peak in 2009. The drop in ridership in 2010 could be associated with the economic recovery from the 2008-2009 recession, when fewer tourists visited Eagle County. ANNUAL RIDERSHIP ROUTE NAME ANNUAL BOARDINGS Highway 6 696,606 Valley 290,228 Leadville 20,204 Minturn 8,477 Vail/Beaver Creek Express (winter only)7,783 TABLE 1: ECO Transit Routes and Ridership 0.0 0.4 0.2 0.6 0.8 1. .95 .63 .73 .75 .79 .89 .89 .92 2011 2012 2013 2011 2015 201620092010 FIGURE 2: Annual Ridership Historically Source: Transit Development Plan (TDP) 1,000,000 800,000 600,000 400,000 200,000 0 ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 12 NON-MOTORIZED INFRASTRUCTURE Bicycle and pedestrian infrastructure are important to ensuring that there are safe and comfortable opportunities for all users to access bus stops. BICYCLE INFRASTRUCTURE AND PROGRAMS Eagle County has a number of low stress, high comfort bicycle facilities. The Eagle Valley Trail comprises a large portion of those facilities, with about 50 miles of paved multi-use trails throughout the region. The majority of this trail network is situated alongside Highway 6. However, there are significant gaps in this trail network, forcing users traveling regionally to walk or bike on the Highway 6 shoulder, which has high speeds and is of low comfort to the user. There are some locations with on-street facilities including bike lanes and shared bicycle/vehicle lanes in the urban areas of the County. However, generally there are very few on-street bicycle facilities in the region. The County also has a number of roundabouts that force bicyclists to share the lane with vehicles, which can be a high stress experience for some users. ECO Transit buses support bicycles on the front of buses with two bicycle racks per bus. However, bicycles are not allowed on racks during evening hours between dusk and dawn. ECO Transit does not allow use of bicycle racks outside of daylight hours, due to concerns about bicycles blocking the bus headlights. This poses a challenge to commuters who may have one end of their trip outside of daylight hours, especially in the winter when days are shorter. This also adds an element of unreliability for those with less consistent or predictable schedules. Bicycles are not allowed inside buses. The Town of Avon launched a bike share program in August 2017 through the provider Zagster. The bike share consists of twenty pedal bikes (no electric-assist) located at four locations around the town. Bikes are available on a first come, first serve basis 24 hours a day, seven days a week during summer months. Bikes are not currently available during the winter months. Membership costs $10 per year or $2 for one-time use. Riders can borrow bikes by the hour through a mobile app and can return bikes to any Zagster location around Avon. In the first three months of the program’s launch, there were 250 rides and 120 members signed up. The Town of Avon is currently planning an electric bike share pilot program to tentatively debut in 2020. PEDESTRIAN INFRASTRUCTURE There is a range of types of pedestrian facilities throughout the region. The Eagle Valley Trail is ATTACHMENT 2 13 present on segments of Highway 6 and there is a comprehensive network of trails throughout Vail and sections of other more densely developed areas. There are sidewalks on at least one side of the street along most arterials and collectors in more developed areas. However, most residential streets do not have a sidewalk on either side. The majority of rural areas between urbanized communities do not have sidewalks; some corridors have paved or unpaved trails. BICYCLE AND PEDESTRIAN COMFORT AND CONNECTIVITY This study determined a bicycle and pedestrian connectivity index score for each ECO Transit stop based on how well the surrounding street network serves pedestrians and bicyclists and the level of comfort multimodal users feel on roadway facilities, as shown in Figure 3. Factors included in the analysis are the number of lanes on each roadway, posted speed limits, and how connected the street grid is. ECO Transit stops with low connectivity, high speed limits, and a high number of travel lanes received higher scores during a prioritization analysis, described on page 31, in order to help identify stops that multimodal travelers cannot safely access on foot or by bicycle. The bus stops with the lowest comfort for bicyclists and pedestrians are clustered around Avon, Edwards, and Vail. These higher population density communities serve as regional destinations, which results in higher traffic volumes and more conflicts between vehicles and cyclists or pedestrians. ATTACHMENT 2 Red Cliff Avon Minturn Vail Legend Bike/Ped Comfort Low comfort Medium comfort High comfort Beaver Creek Route Valley Route Leadville Route Minturn Route FIGURE 3: Bicycle and Pedestrian Comfort Scores for Each Bus Stop ATTACHMENT 2 15 PREVIOUS PLANNING EFFORTS ECO Transit has undergone multiple planning efforts that serve as the foundation for recommendations for this study. TRANSIT DEVELOPMENT PLAN (2018) The Transit Development Plan (TDP) was developed in 2018 to identify potential short- term recommendations to improve ECO Transit service with only a small increase in funding. The TDP included prioritized recommendations based on stakeholder outreach and surveying, a market analysis of transit demand, analysis of the system’s routing and scheduling, and identification of needed improvements. The plan included a comprehensive survey of riders and non-riders in both winter and summer that provided a source of input that is valuable to this First/Last Mile Strategy Study. These survey results are summarized in Appendix A. FIRST/LAST MILE RECOMMENDATIONS The TDP contains specific recommendations that can inform this study. The following are relevant recommendations from the TDP: • Form a “Transit Coordinating Council” among the five I-70 corridor providers • Develop an all-operator website to provide a single resource for all I-70 corridor transit service information • Modify routes to more consistently serve park- and-ride lots and develop the Forest Service Park-and-Ride as a transit center • Change the Minturn route to all day service and to serve Red Cliff students during peak periods • Improve public timetables and maps to include all local operators, translate materials into Spanish and show landmarks and transfer points • Improve online trip planning resources that are also accessible by a mobile app • Provide real time information on bus location and arrival time • Develop a “How to Ride” guide that includes information on multimodal connections • Improve ECO Transit stops outside of Highway 6 to make them more attractive and comfortable • Evaluate how ECO Transit could help Edwards, Eagle, and Gypsum develop and expand local services (through technical assistance and potentially operating service on behalf of those communities) • Implement distance-based fares to reduce the cost of short trips EAGLE COUNTY TRANSIT HUB AND PARK- AND-RIDE STUDY (2014) The Eagle County Transit Hub and Park-and-Ride Study inventoried existing facilities and bus stop deficiencies. It also identified preferred park-and-ride locations, conceptual designs, ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 16 and the need for regional facilities to provide connections to the ECO Transit system. A summary of the findings from this study are as follows: • Space bus stops between 600-1,000 feet apart in developed areas and about 1,250 feet apart in rural areas • Provide bicycle parking at bus stops • Complete identified missing sidewalk gaps around bus stops • Develop a transit hub at Eagle River Village Mobile Home Park in Edwards • Update County land use regulations to require that large developments be referred to ECO Transit for review and determination of whether bus stop improvements are needed. Any proposed bus stop improvements would be funded by the developer. OTHER LOCAL TRANSIT PROVIDERS There are three local transit services and one regional transit service that operate within Eagle County along with ECO Transit. Local services can provide first/last mile access for regional transit. Regional transit service can complement ECO Transit trips for users traveling outside of Eagle County. Avon Transit operates summer service from April until November; winter service hours operate all other months. Avon Transit is free to all riders and all routes run on 30-minute headways. In the winter, Avon adds a skier bus service that serves Beaver Creek Village, as well as an evening restaurant shuttle. The Town of Vail, through Vail Transit, provides a fare-free year-round transit service on nine different routes. All routes (except the golf course outbound route) begin operations between 5:45 and 6:30 am. Some routes run for just a few hours in the morning, while others run until 2 am. The West Vail Express runs every 10 minutes, while other service frequencies range from every 20 minutes to every hour. Beaver Creek Resort operates the Village Connect shuttle. Riders who are not along the fixed routes can request a pick-up via an app or by calling a concierge. The shuttle operates with 10-minute frequency in the summer and winter peak months and 20-minute frequency in the ATTACHMENT 2 17 fall and spring off-season, with 10- to 20-minute wait times. CDOT operates a regional service called Bustang. The West Line operates in Eagle County, traveling between Glenwood Springs and Denver with stops at the Vail Transportation Center and the Eagle Chambers Park-and-Ride. The route is in service year round, and has one morning and one afternoon bus a day in either direction. The service is used primarily by visitors and commuters traveling regionally. ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 18 ATTACHMENT 2 04 Case Studies Several communities around the western United States can provide insights to Eagle County about the potential for partnerships, services, and innovations to increase access to transit. Case studies from Aspen, Colorado; King County, Washington; and Park City, Utah; are presented below. Additional case studies are included in this memo as well—Centennial, Colorado; Dublin, California; Tampa, Florida; and Philadelphia, Pennsylvania. These case studies provide insight to Eagle County about the effectiveness of various first/last mile solutions in different contexts. Each example discusses varying forms of public private partnerships to shed light on different operational models as well as the successes and lessons learned associated with each one. From these stories from across the country, ECO Transit can gain insight into: how to form an effective partnership, various on-demand provider options, how to determine a service area and set fares, and potential funding sources. Given that many of the recommendations in this plan are new to the Eagle County region (and only just beginning to be implemented nationally), learning from the successes and shortcomings of other first/last mile solutions is especially important. A memo of a full description of the case studies can be found in Appendix B. ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 20 DOWNTOWNER, ASPEN, COLORADO Downtowner, a private-sector transportation provider, began providing door to door on-demand transportation service in Aspen, Colorado in 2016 as a pilot program. In 2018, they entered a five- year contract with the City that includes seven vehicles that run from 11 am to 11 pm. Aspen decided to partner with Downtowner to address parking challenges in their downtown and to provide alternative solutions to short private automobile trips, in part by increasing connections to regional transit. The service is fully subsidized by the City (at a cost of $540,000 for the first year) and is free to users. Each vehicle can hold up to five passengers, including pets and ski equipment, identified by Aspenites as important characteristics of a transit service. Downtowner’s technology pairs rides for users with similar origins, destinations and departure times. Rides are booked via an app or a call center that Downtowner operates. Downtowner’s contract with Aspen requires they meet level of service parameters, including at most a ten-minute wait time and ten-minute travel time. This service is generally perceived as successful by the community, with tourists, hotels, and service workers frequently using Downtowner and almost 6,000 passengers a month in the peak months of its first year of service. Local commuters also use it as a first/last mile service that provides access to transit. This integration with transit is facilitated by providing information about the regional transit agency, Roaring Fork Transportation Authority (RFTA), in the Downtowner app and vehicles as well as advertisements about Downtowner in RFTA transit vehicles. Aspen also has a docked bike share program that closes the first/last mile gap, as evidenced by the fact that the highest ridership stops are the Transit Center and high ridership bus stops. RFTA is planning to be a partner of bike share by entering a five-year contract to provide $100,000 a year. 20 ATTACHMENT 2 21 ON-DEMAND PARTNERSHIPS, KING COUNTY, WASHINGTON King County, Washington is launching three different first/last mile on-demand services. These partnerships provide free Uber/Lyft service to transit riders using King County’s rail lines who need a first/last mile connection between the transit station and their home or place of work. The transportation providers in all three pilot programs cover the operational components, while King County is responsible for funding, sponsorship, communication, marketing, and education. The areas the services operate in were set at about one to two miles from the transit center they connect to. The service areas were determined to ensure that standards for wait times (15-minutes) and travel times (15 to 20-minutes) were met and that service was provided to certain disadvantaged populations. The pilots apply the same fare as other fixed route transit to simplify the service for the user. However, on- demand users can get a free transfer to the fixed route system. On-demand trips can be paid for using the same fare card as the fixed route service and can be booked through the transit agency’s mobile app. Ridership has been strong for the first few months of these pilots. DOCKED ELECTRIC BIKE SHARE, PARK CITY/SUMMIT COUNTY, UTAH County launched the country’s first docked, electric bike share system in 2017. The program is jointly paid for by Park City and Summit County, partnering with Bewegen Technologies. The City and County bought the 120 bikes and nine stations and kiosks upfront for $500,000, funded in part from sales tax revenue earmarked for transportation. Bewegen operates the system under a three-year contract at no cost from the City or County, but keeps the revenue made from fares as well as advertising. Utah Transportation Authority (UTA) received a TIGER grant for a number of transportation improvements, including an additional eight stations, which will be a part of Phase II implementation in 2019. The bike share is seen as an extension of the region’s transit system, providing a first/last mile service as well as potentially replacing transit trips. The electric bikes, anecdotally, have been seen as a positive model. They allow for a lower station density and increase ridership by overcoming barriers including steep grades and high elevation. Comparing Summit County data with other docked (not electric) systems reveals that Summit County bike share users make longer trips—an average of seven-mile trips versus around two to three miles. Some of the challenges, as acknowledged by the community, are the cost and space electric docks require. Docks take up about 50’ x 12’, require an electrical hook up, and cost $5,000 to $15,000 per station to install. A trip planning app and fare payment that is integrated between transit and bike share is the ultimate goal, but currently not feasible because of technology barriers; Bewegen is currently working on a ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 22 cloud-based system that will address this. The bike share system closes in the winter months, and station areas are used for snow storage. However, other bike share programs, such as Divvy in Chicago and BCycle in Denver, are open in the winter months. Although the bike share system has been seen as a success, it was launched before the roll out of dockless bike share programs, which is important to note. Summit County staff acknowledged that competing with dockless bikes will be challenging, if they make an appearance in the region. The dockless model would also require a lower financial investment from the County. GO CENTENNIAL, CENTENNIAL, COLORADO The Centennial pilot, Go Centennial, was the first program in the country to fully subsidize first/ last mile trips provided by a private provider (Lyft). The subsidy was provided by Bloomberg Philanthropies in partnership with the City of Centennial. This program incorporated a concierge service for non-smartphone users to book trips, ADA service provided through the Lyft platform, and a trip planning app that made booking a ride more seamlessly integrated with transit. Although ridership was low, this program was generally seen as a successful experimentation with public private partnerships. The partnership was successful due to a launch and system integration that received positive feedback from users in surveys and generated a lot of repeat riders. There were also a number of lessons learned, given that this was the first program of its kind, including: needs for better integration with the fixed route system, increased marketing, more intuitive service area boundaries, pilot duration longer than six months, and formalized pick-up/drop- off areas. GO DUBLIN, DUBLIN, CALIFORNIA Go Dublin is an on-demand service in Dublin, California that is partially subsidized by Wheels—the transit agency in the San Joaquin Valley that works with three providers (Uber, Lyft and a cab company) to allow users to go anywhere in the City of Dublin, with a subsidy of half the fare, up to $5. Shortcomings from this pilot that serve as lessons learned are the importance of: • Receiving enough and appropriate data (i.e. trip origins/destinations, travel time, fare) for grant acquisition and evaluation ATTACHMENT 2 23 • Getting users’ contact information in order to gather data through the user rather than relying on Uber/Lyft/Taxi for data • Eliminating marketing through the Uber/Lyft app for the pilot, which does not recruit new users but rather offers the discount to users who were already going to take Uber/Lyft • Determining the impact of the pilot on fixed route ridership by analyzing ridership data PSTA, PINELLAS COUNTY, FLORIDA Pinellas Suncoast Transit Authority (PSTA) serves all of Pinellas County’s fixed route service. The agency runs (or is preparing to run) three innovative programs in addition to their fixed route service: Direct Connect is a first/last mile service that subsidizes the first $5 of a user’s Uber or Taxi trip; TD Late shift allows users with two or more jobs traveling between 10 pm and 6 am to purchase a package of Uber rides at a reduced price; and on-demand paratransit service for ADA and non-ADA users. PSTA is expanding these services by incorporating them into mobile ticketing passes, marketing through the app with qualifying locations, and developing a call center to book trips for people without smartphones. SEPTA, PHILADELPHIA, PENNSYLVANIA Southeast Pennsylvania Transportation Authority (SEPTA) and Uber together created a model, called Direct Connect, where Uber provided discount trips to and from 11 different regional rail stations to address the first/last mile challenge; in this model, SEPTA contributes no financial assistance, only marketing. This pilot ended in 2016 because it was fully subsidized by Uber and the company decided it wasn’t financially sustainable for them. In order to create an operation model that is more sustainable, ECO Transit needs to work more closely with the provider than was exemplified in the SEPTA/Uber partnership. However, the agency is looking into opportunities for another public private partnership that is financially sustainable. ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 24 Southeast Pennsylvania Transportation Authority and Uber’s Direct Connect Program https://www.uber.com/blog/tampa-bay/417893/ ATTACHMENT 2 This planning process engaged a diverse group of stakeholders as well as members of the public in order to gain input on existing conditions, draft recommendations, and prioritization. This planning process also included input from the Eagle County Regional Transportation Authority (ECTRA) Advisory Board and Board of County Commissioners. The stakeholder group included representatives from the following agencies and organizations: • Eagle County Housing Department • Vail Valley Partnership • Northwest Colorado Council of Governments (NWCCOG) • Colorado Department of Transportation (CDOT) • Town of Gypsum • Eagle Vail resident • Eagle County Public Health • Walking Mountains Science Center In November 2018, stakeholders and the public came together to provide feedback on current barriers to accessing transit. Attendees also provided input on: priority locations for bicycle/ pedestrian infrastructure and additional services; types of bicycle and pedestrian treatments that would be effective; bike share operational models; and effective transportation demand management strategies. This feedback was synthesized and incorporated into draft recommendations. 05 Community Engagement • Town of Avon • Town of Eagle • Town of Vail • Walking Mountains • Edwards Metro District • Eagle County • Town of Minturn • Beaver Creek Resort • Vail Resorts ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 2626 These draft recommendations were then brought back in March 2019 to the stakeholder group and public, at an in-person meeting and through online engagement, respectively. Stakeholders and the public were asked to provide feedback on bicycle and pedestrian infrastructure recommendations, transportation demand management strategies, ride-hailing services, and bike share dock locations as well as the prioritization of categories of recommendations. This feedback informed the final recommendations as well as project prioritization. Material from the stakeholder and public meetings are in Appendix C. ATTACHMENT 2 06 Recommendations This section of this plan identifies the recommendations for first/last mile infrastructure, information, technologies, programs and policies. Six different categories of first/last mile recommendations are identified—no one solution can fully address the needs of all users and at all stop areas. By implementing a comprehensive ecosystem of solutions, synergy is created between recommendations to enhance effectiveness cumulatively and users are equipped with a range of options that best fits their needs. The following sections describe in detail the six categories of strategies: BICYCLE AND PEDESTRIAN INFRASTRUCTURE1 2 3 4 5 6 TRANSPORTATION DEMAND MANAGEMENT ALIGNMENT WITH LOCAL TRANSIT AGENCIES RIDE-HAILING (OR ON-DEMAND) SERVICES BIKE SHARE OTHER EMERGING MOBILITY SOLUTIONS ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 28 ATTACHMENT 2 29 BICYCLE AND PEDESTRIAN INFRASTRUCTURE1 Upgrading multimodal access will allow more users to connect with ECO Transit services through non-motorized modes. The following ten stop pairs were identified as the highest priority for first/last mile bicycle and pedestrian infrastructure improvements and are displayed in Figure 4: 1. Highway 6 at Eaglebend (east and west) 2. Highway 6 at Sylvan Lake Road (east and west) 3. Chambers Park-and-Ride 4. Beaver Creek Lot (east and west) 5. Highway 6 at Rivers Edge (east and west) 6. Highway 24 at Harrison Avenue (east) 7. Highway 24 at North Main Street (west) 8. Highway 6 at Riverwalk (west) 9. Highway 6 at Stonebridge Drive (east) 10. Eagle Valley High School ATTACHMENT 2 FIGURE 4: Prioritized ECO Transit stops for first/last mile bicycle and pedestrian improvements ATTACHMENT 2 31 OVERVIEW OF METHODOLOGY FOR DETERMINING HIGH PRIORITY STOPS In order to develop the prioritized list of stops that identify the top ten locations for infrastructure improvements, each ECO Transit stop was analyzed and scored based on four variables: 1. Population density 2. Income 3. Public input 4. Bicycle and pedestrian connectivity The following methodology overview summarizes the four variables and scoring process. Ridership was used as a tie breaker for stops with the same scores. A more in-depth description of this methodology can be found in Appendix D. POPULATION DENSITY Population density was sourced from the 2010 Census at the census block level. Since Eagle County has areas of very low population density, any census block with zero population was assigned the density of its adjoining block. Higher population density areas host a larger group of potential transit riders and were thus assigned a higher score. INCOME Income was measured by household median income using 2016 American Community Survey 5-year Estimates. Income serves as a proxy for transit dependency as lower income populations tend to have high transit usage. ECO Transit bus stops in census block groups with lower income populations received higher scores since transit dependent households would have the greatest need for improved connectivity to their local bus stop. PUBLIC INPUT SCORE On November 14, 2018 the stakeholder advisory group for the Eagle County First/Last Mile Strategy Study, along with participants at a community engagement workshop, provided input on ECO stops in need of first/last mile interventions. Participants were presented with a floor map of the ECO service area and asked to place sticker dots on each stop that had first/last mile connectivity issues. Each stop was given a score based on the quantity of stickers placed adjacent to the stop. ECO Transit bus stops that received higher amounts of public input were assigned higher scores. BICYCLE AND PEDESTRIAN CONNECTIVITY INDEX Each ECO stop received a connectivity index score based on how well the surrounding street ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 32 network serves pedestrians and bicyclists. Factors in the analysis included the number of lanes on each roadway, posted speed limits, and how connected the street grid is, which measures whether streets connect with one another to provide a seamless path of travel or whether gaps exist. ECO Transit stops with low connectivity, high speed limits and a high number of travel lanes received higher scores in order to help identify stops that are challenging to access on foot or by bicycle. CALCULATING FINAL SCORES A stop near the highest population density and lowest income, which had received the most input during the November 14, 2018 meetings, and which had the worst bicycle and pedestrian connectivity would be considered as highest need for multimodal infrastructure improvements. To determine each stop’s final score, the four variable scores were summed resulting in a prioritized list of stops for ECO Transit to focus on for making first/last mile improvements . RECOMMENDATIONS FOR HIGH PRIORITY STOPS The following section highlights key infrastructure recommendations that would enhance first/last mile connectivity for pedestrians and bicyclists seeking to use ECO Transit service at the ten prioritized stop pairs. The stops are listed in order of their priority based on the methodology described. The recommendations are described by stop. PEDESTRIAN IMPROVEMENTS The following recommendations are designed to serve the needs of existing pedestrians by enhancing safety and providing a more comfortable walking connection to ECO Transit stops. All pedestrian improvement recommendations are within a half-mile of the prioritized ECO Transit stops. PEDESTRIAN INFRASTRUCTURE COST STOP LOCATION COST Highway 6 at Eaglebend (East and West)$215,500 Highway 6 at Sylvan Lake Road $415,000 Chambers Park-and-Ride $80,000 Beaver Creek Lot (East and West)$155,000 Highway 6 at Rivers Edge (East and West)$320,000 Highway 24 at Harrison Ave (East and West)$40,000 Highway 6 at Riverwalk (West)$370,000 Eagle Valley High School $15,000 ATTACHMENT 2 33 1 | Highway 6 at Eaglebend (East and West) The Eaglebend stops have good connectivity to the Eagle Valley Trail, making them walkable to Avon’s central district. Wayfinding signage is recommended west of the stop by Avon Road to help users locate the bus stop. As of February 2019, a new sidewalk is under construction along the south side of Highway 6 that will serve as a pedestrian connection to the eastbound stop. 33 2 | Highway 6 at Stonebridge Drive (East) Residents of Deer Boulevard, in Eagle Vail, do not have easy connectivity to transit along Highway 6. If possible, it is recommended that a paved pathway be constructed between the ECO Transit stop and the residential neighborhood. Adding wayfinding signage would also help residents become aware of the nearby transit service. A Rectangular Rapid Flashing Beacon is recommended for the crossing between the two Stonebridge Drive stops to enhance safety. Per CDOT guidelines, the crossing would include a pedestrian refuge island. The recommendations for these two stop areas are estimated to cost $215,500. ATTACHMENT 2 ") " ") Bike Rack Paved Pathway to Deer Blvd Mid-Block Crossing (Pedestrian Hybrid Beacon) Rectangular Rapid Flashing Beacon (RRFB)* Wayfinding Signage Half-Mile Quarter-Mile Eagle Bend and Stonebridge Drive Stops Eagle Valley Trail (Existing) All Other ECO Transit Stops Lighting 70 6 HIGHWAY 6 AT EAGLE BEND AND STONEBRIDGE DRIVE Recommended Pedestrian Treatments *Pedestrian refuge island needed at this location as required by CDOT standards AVON CITYMARKET RIVERVIEWAPARTMENTS ´ .25 mile.5 mile ATTACHMENT 2 35 3 | Highway 6 at Sylvan Lake Road Both Highway 6 at Sylvan Lake Road stops do not currently have amenities for transit riders. It is recommended that a shelter, bench, wayfinding signage, lighting, and bicycle racks be added to both stops. Adding sidewalks on the south side of Highway 6 would enhance pedestrian connectivity between the nearby residential areas and transit service. The Sylvan Lake Road crossing south of the roundabout on Highway 6 is not currently marked for pedestrians. It is recommended that crosswalk striping be added along with advanced warning signage alerting northbound drivers on Sylvan Lake Road to the presence of pedestrians. The recommendations for this stop area are estimated to cost approximately $415,000. 35 ATTACHMENT 2 ´ .25 mile.5 mile Full Stop Treatment Sidewalk Lighting Crossing (High-Visibility Marking) Half-Mile Quarter-Mile ECO Stop- Highway 6 at Sylvan Lake Road Eagle Valley Trail (Existing) Advanced Warning Sign Wayfinding Signage ") Lorem ipsum 6 6 HIGHWAY 6 AT SYLVAN LAKE ROAD Recommended Pedestrian Treatments 70 *Pedestrian refuge island needed at this location as required by CDOT standards ! EAGLE EAGLE COUNTYFAIRGROUNDS EAGLETOWNPARK BRUSH CREEKPARK ATTACHMENT 2 37 4 | Chambers Park-and-Ride The ECO Transit stop is located adjacent to a park-and-ride lot, but not immediately connected to it. Signage is needed to inform drivers walking up from the lot of the bus stop location. Pedestrians coming from the north side of I-70 along Eby Creek Road currently have a difficult time accessing the stop. Signage is recommended at Eby Creek Road and Market Street that directs pedestrians to utilize the pedestrian bridge east of Eby Creek Road as a safe crossing over I-70. Similar signage is recommended south of I-70 for any pedestrians walking north. Walking south from the stop, there is an existing crosswalk at the roundabout, but advanced warning signage is also needed to alert drivers that pedestrians may be crossing. On the south side of the Eagle River, a pedestrian seeking access into the walkable portion of Eagle’s town core is faced with an indirect climb up Bluffs Road. Placing a staircase at the bottom of Howard Street would provide easier and more direct access, to complement the ADA-accessible sidewalk route that already exists along Bluffs Road. In addition, for pedestrians walking east-west on Grand Ave, a crosswalk at Capitol Street would provide safer connectivity. Throughout the core of Eagle, wayfinding signage would enable pedestrians to more easily locate ECO Transit stops. In order to improve general pedestrian safety, it is recommended that the channelized right turn lane at the intersection of E 2nd Street and Church Street/Bluffs Rd be removed and that the intersection be converted to a four-way stop. This treatment would reduce vehicle speeds and prevent westbound vehicles on E 2nd Street that turn right onto Bluffs Road from having unsafe conflicts with pedestrians. The recommendations for this stop area are estimated to cost approximately $80,000. ATTACHMENT 2 XX £ $ ") 70 Lorem ipsum 6 70 General Intersection Improvements Sidewalk Staircase (to Access Grand Ave) Half-Mile Quarter-Mile All Other ECO Transit Stops Wayfinding Signage Wayfinding Signage to Eagle Valley Trail Wayfinding Signage to Pedestrian Bridge Crossing (High-Visibility Marking) Chambers Park and Ride Eagle Valley Trail (Existing) Advanced Warning Sign Pedestrian Bridge (Existing) Proposed sidewalk extending from Sylvan Lake stop CHAMBERS PARK-AND-RIDE Recommended Pedestrian Treatments ´PARK ANDRIDE LOTEAGLE EAGLEVALLEYMIDDLESCHOOL EAGLETOWNPARK .25 mile.5 mile ATTACHMENT 2 39 5 | Beaver Creek Bear Lot (East and West) To enhance rider comfort, it is recommended that the westbound stop on Highway 6 be upgraded to include a shelter, bike rack, wayfinding information, and lighting. Adding a bicycle rack to the eastbound stop would also enhance connectivity for anyone accessing transit by bicycle. Additionally, the east bound stop is recommended as a potential location for a new bike share station. To help anyone parking at the Beaver Creek Bear Lot to access the bus stops, it is recommended that sidewalk paving be added connecting the parking area with the east bound stop. North of Highway 6, on West Beaver Creek Boulevard, adding lighting and advanced warning signage will help improve pedestrian safety at the existing crosswalks for the Eagle Valley Trail. The addition of wayfinding signage near the Aspens Mobile Home Village and the Avon Elementary School will help inform prospective riders of the nearby ECO Transit service while also alerting Town of Avon Transit Blue Line riders of the nearby transfer opportunity. On the northern portion of West Beaver Creek Boulevard there is a dense residential area without sidewalks. Putting sidewalks in place will improve connectivity. The recommendations for this stop area are estimated to cost approximately $155,000. 39 ATTACHMENT 2 ¡©$ ") X ´ 70 70 BEAVER CREEKRESORT .25 mile .5 mile RIVER EDGEAPARTMENTS BEAR LOT BEAVER CREEK BEAR LOT Recommended Pedestrian Treatments 6 Bike Rack / New Zagster Station Existing Paved Pathways Sidewalk Rectangular Rapid Flashing Beacon (RRFB)* Wayfinding Signage Half-Mile Quarter-Mile Full Stop Treatment Beaver Creek Bear Lot Stops Eagle Valley Trail (Existing) Advanced Warning Sign Lighting *Pedestrian refuge island needed at this location as required by CDOT standards ATTACHMENT 2 41 6 | Highway 6 at Rivers Edge (East and West) The westbound Rivers Edge stop does not currently have a shelter so a full stop treatment that brings seating, a shelter, bicycle rack, and wayfinding signage is recommended. In addition, the east and west stops do not have any kind of crossing facility between them. Per CDOT standards, a Rectangular Rapid Flashing Beacon with a pedestrian refuge island is merited to provide a crossing for Rivers Edge Apartments residents and other people in the area seeking to safely access the east bound stop. The recommendations for this stop area are estimated to cost approximately $320,000. 41 ATTACHMENT 2 70 6 Bike Rack Existing Paved Path Sidewalk Rectangular Rapid Flashing Beacon (RRFB)* Wayfinding Signage Half-mile Quarter-Mile Full Stop Treatment Highway 6 at Rivers Edge Stops Eagle Valley Trail (Existing) All Other ECO Transit Stops Lighting Advanced Warning Signs HIGHWAY 6 AT RIVERS EDGE Recommended Pedestrian Treatments *Pedestrian refuge island needed at this location as required by CDOT standards .5 mile.25 mile ´ !") AVON ELK LOT RIVE R S E D G E APA R T M E N T S ATTACHMENT 2 43 7 | Highway 24 at Harrison Ave (East) The dense core of Minturn is a walkable environment that supports accessing transit on foot. Adding a shelter, bench, bicycle rack, and wayfinding signage to the Harrison Avenue east stop on the Minturn and Leadville Routes would enhance ECO Transit rider comfort. South of Minturn’s downtown, wayfinding signage is needed along Highway 24 to help pedestrians locate the bus stops. CDOT is constructing a sidewalk on the western side of Highway 24 that will help enhance pedestrian connectivity and safety. 43 8 | Highway 24 at North Main Street (West) Located near the Harrison Avenue stop, the North Main Street stop also benefits from Minturn’s walkable environment. Adding wayfinding signage along Pine Street would help residents west of Highway 24 to find the transit access in their neighborhood. In addition, the west stop at North Main Street would be a more comfortable transit facility with the addition of a shelter, seating, signage, and a place to lock bicycles. The recommendations for these two stop areas are estimated to cost approximately $40,000. ATTACHMENT 2 !! 24 ") Lorem ipsum 24 CDOT Adding Sidewalk All Other ECO Transit Stops Half-Mile Quarter-Mile Harrison Ave and North Main Street Stops Full Stop Treatment Wayfinding Signage HIGHWAY 24 AT NORTH MAIN STREET ANDHARRISON AVE Recommended Pedestrian Treatments MINTURN ´ .25 mile.5 mile ATTACHMENT 2 45 9 | Highway 6 at Riverwalk (West) The Riverwalk shopping center, which is adjacent to the Highway 6 at Riverwalk ECO Transit stop, is a location that supports higher rates of pedestrian activity. To help facilitate pedestrian connectivity between the shopping center and the bus stop, it is recommended that a sidewalk be added along the northern side of Highway 6 and that walkway striping be added to the Riverwalk shopping center driveways to facilitate pedestrian access to the shops. East of the Riverwalk stops, a crossing with a Rectangular Rapid Flashing Beacon and a pedestrian refuge island is already planned for the Bull Run stops. This new crossing will also help enhance connectivity between the east and west Riverwalk stops. There is existing sidewalk connectivity between the ECO Transit stops and Edwards Village Center, but adding crosswalk marking and wayfinding signage will help enhance the pedestrian experience. North of the transit stops, the environment along Edwards Access Road is not currently conducive to pedestrian activity. Adding wayfinding signage, a marked crosswalk, lighting, and a paved sidewalk on the west side of the road would help improve connectivity and safety. The recommendations for this stop area are estimated to cost approximately $370,000. 45 ATTACHMENT 2 70 !! HIGHWAY 6 AT RIVERWALK Recommended Pedestrian Treatments Highway 6 at Riverwalk Eagle Valley Trail Crossing (High-Visibility Marketing) Lighting CDOT Installing Roundabout Bike Rack / New Zagster Station Walkway Striping Sidewalk Already Proposed Rectangular Rapid Flashing Beacon (RRFB)and Pedestrian Refuge Island Wayfinding Signage Half-Mile Quarter-Mile All Other ECO Transit Stops 6 6 ´ .25 mile.5 mile EDWARDS COLORADOMOUNTAINCOLLEGE RI V E R W A L K BULL RUN WESTSTOP BEINGMOVED WEST EDWARDSVILLAGECENTER ATTACHMENT 2 47 10 | Eagle Valley High School The chief enhancement to pedestrian safety at the Eagle Valley High School ECO Transit stop pertains to the intersection adjacent to the stop. To improve safety conditions, it is recommended that the following elements be added: • The missing leg of the crosswalk on the east side of the intersection • A curb ramp at the southeast corner for pedestrians walking north • A tightened curb radius at the southwest corner to reduce pedestrian exposure to traffic In addition, wayfinding signage east and west of the stop would help pedestrians navigate to the bus stop. The recommendations for this stop area are estimated to cost approximately $15,000. 47 ATTACHMENT 2 $ ") Lorem ipsum 70 6 6 *Add missing leg of crosswalk on east side of crossing, add curb ramp at southeast corner for pedestrians going north, tighten curb radius at southwest corner to reduce pedestrian exposure in crosswalk. ! Crossing (High-Visibility Marking) Sidewalk Wayfinding Signage All Other ECO Transit Stops Half-Mile Quarter-Mile General Intersection Improvement* Eagle Valley High School Eagle Valley Trail (Existing) EAGLE VALLEY HIGH SCHOOL Recommended Pedestrian Treatments ´ .25 mile.5 mile ATTACHMENT 2 49 49 BICYCLE IMPROVEMENTS Improvements to bicycle connectivity within three miles of the prioritized ECO Transit stops are listed in the following sections. Since some of the stops fall within the same catchment area, recommendations are grouped by community. BICYCLE INFRASTRUCTURE COST ECO TRANSIT STOP AREA COST Avon $344,000 Edwards $210,000 Eagle $158,000 Minturn $7,000 Gypsum $680,000 ATTACHMENT 2 ATTACHMENT 2 51 1 | Town of Avon Avon Road currently has sharrows going through the roundabouts that connect I-70 with Highway 6, and there is not adequate space to stripe a full bicycle lane in the existing roadway footprint. It is recommended that more high visibility markings be put in place to help reduce conflicts between bicyclists and vehicles. High visibility markings (such as green-backed sharrow markings) would be particularly useful in locations where drivers are entering or exiting the roundabout, and need a reminder that cyclists would be crossing through this space as well. The current sharrow stencils on Avon Road are not placed in conflict zones, and cyclists could benefit from the placement of supplemental markings. To enhance bicyclist safety for riders accessing Beaver Creek Village, it is recommended that sharrows be added on the village road. In addition, to the north of Highway 6, it is recommended that bicycle lane striping and signage be added to East Beaver Creek Boulevard east of Avon Road. The facilities would provide safe connectivity between the core of Avon and the Post Boulevard shopping center. As the County expands its bike share system, it is recommended that ECO Transit could fund a bike share station adjacent to the Village at Avon shopping center transit stop. Sharrows are recommended on local streets south of Highway 6. Sharrows should be added along Deer Boulevard, Stone Creek Drive, and Eagle Road to enhance safety conditions in the residential areas and improve bicycle connectivity to the schools and recreational facilities on Eagle Road. The recommendations for this stop area are estimated to cost approximately $344,000. ATTACHMENT 2 Bicycle Lane Striping and Signage Sharrows Markings to Reduce Bicycle-Vehicle Conflicts Wayfinding Signage All Other ECO Transit Stops Three Mile Buer Existing Bike Lane High Priority ECO Stops Eagle Valley Trail (Existing) Existing Zagster Station Bike Rack / New Zagster Station TOWN OF AVON Recommended Bicycle Treatments 6 70 2 miles1 mile ATTACHMENT 2 53 2 | Community of Edwards The residential neighborhoods south of Highway 6 in Edwards have low traffic volumes and the foundation for safe bicycling. Adding sharrows on Edwards Village Boulevard, Homestead Drive, and Arrowhead Drive, along with wayfinding signage, would help bicyclists connect with ECO Transit service. Highway 6 through Edwards has a very limited amount of existing bikeway striping and some bicycle signage. However, there is a potential for conflicts between buses and bicyclists at the ECO Transit stops. Bus-bicycle striping is recommended next to the bus stops to help reduce the conflict between bicyclists using the Highway 6 bicycle facility and ECO Transit stops. The recommendations for this stop area are estimated to cost approximately $210,000. 53 Sharrows and green markings to call out a bicycle facility with potential for vehicle conflicts. ATTACHMENT 2 Bus-Bike Striping* 70 6 COMMUNITY OF EDWARDS Recommended Bicycle Treatments Wayfinding Signage New Zagster Station Bicycle Lane Striping and Signage Existing Bike Lane Three Mile Buer Sharrows Highway 6 at Riverwalk Stop Eagle Valley Trail (Existing) All Other ECO Transit Stops 2 miles1 mile * Bus-bicycle striping reduces conflict between transit vehicles and cyclists. Recommended for bus stops on Hwy 6. ATTACHMENT 2 55 3 | Town of Eagle Two of the three ECO transit stops in Eagle fall within the same three-mile catchment area for bicycle recommendations. For bicyclists accessing the Chambers Park-and-Ride stop, adding bike lanes with green paint that provide more visibility on Eby Creek Road would reduce bicycle and vehicle conflicts, especially at the roundabouts on Eby Creek Road. South of the Chambers Park-and-Ride stop, the Eagle Valley Trail transitions from being a separated facility to being on the roadway. Wayfinding signage along Eby Creek Road would help bicyclists locate the trail. The Eagle Valley Trail currently ends at the intersection of 5th Street and Highway 6. Signage should be added on Highway 6 to alert drivers to the presence of cyclists crossing between 5th Street and the trail. Also, adding sharrows running east-west on 5th Street and north-south on Broadway would help bicyclists connect back to the trail where it resumes on 2nd Street. The recommendations for this stop area are estimated to cost approximately $158,000. 55 ATTACHMENT 2 $ ") Lorem ipsum 70 6 6 Three Mile Buer Wayfinding Signage Bicycle Lane Striping and Signage Existing Bike Path Markings to Reduce Bicycle-Vehicle Conflicts Sharrows High Priority Stops Eagle Valley Trail (Existing) All Other ECO Transit Stops TOWN OF EAGLE Recommended Bicycle Treatments 1 mile2 miles ATTACHMENT 2 57 4 | Town of Minturn At the current time there is poor bicycle connectivity between the Eagle Valley Trail south to Minturn. The roadway is not wide enough in most sections for bike lane striping and CDOT has a policy not to add sharrows onto any roadways managed by the agency. It is recommended that Share the Road signs be added throughout the Highway 24 corridor between I-70 and Minturn in order to increase driver awareness of bicyclists. In addition, the speed limit on Highway 24 is currently 40 mph, which presents unsafe bicycling con- ditions in the absence of a marked bikeway. It is recommended the speed limit be reduced to 30 mph between I-70 and Minturn to improve comfort and safety for cyclists. The recommendations for this stop area are estimated to cost approximately $7,000. 57 ATTACHMENT 2 70 Sharrows Wayfinding Signage All Other ECO Transit Stops Three Mile Buer Bike Rack Harrison Ave and Main Street Stops Eagle Valley Trail (Existing) Adding “Share the Road” Signs Throughout TOWN OF MINTURN Recommended Bicycle Treatments 6 24 24 2 miles 1 mile ATTACHMENT 2 59 5 | Town of Gypsum The Eagle Valley High School ECO Transit Stop in Gypsum is not directly served by any bikeways. It is recommended that bicycle lane striping and signage be added to Highway 6 east of the High School to enhance bicycle connectivity. The Eagle Valley Trail runs south of the High School but does not directly serve the facility. Adding sharrows on Jules Drive south and east of the High School would improve connections between the school, the trail, and the proposed bikeway on Highway 6. In addition, sharrows on 2nd Street west of the High School would help bicyclists in the residential area have safer community access. Wayfinding signage is recommended throughout the neighbor- hood surrounding the High School to help alert bicyclists to the nearby transit service. The recommendations for this stop area are estimated to cost approximately $680,000. 59 ATTACHMENT 2 70 Wayfinding Signage Bicycle Lane Striping and Signage Sharrows Three Mile Buer Eagle Valley High School Stop Eagle Valley Trail (Existing) All Other ECO Transit Stops TOWN OF GYPSUM Recommended Bicycle Treatments 6 6 1 mile2 miles ATTACHMENT 2 61 COSTS This report has provided an overall planning- level cost estimate for the combined improvements recommended per ECO Transit stop. Detailed cost estimates for each stop are provided in Appendix E. The estimates provide a line-item list delineating the cost of each improvement to help ECO Transit make an informed decision about how to prioritize its spending. The following sources were used to generate cost estimates: • The CDOT 2018 Cost Data Book • A proprietary Fehr & Peers construction cost estimator tool that is routinely updated to reflect the most recent cost of materials • An Active Transportation Plan cost estimating tool developed by Fehr & Peers • The UNC Highway Safety Research Center’s Cost for Pedestrian and Bicyclist Infrastructure Improvements guide ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 62 ATTACHMENT 2 63 TRANSPORTATION DEMAND MANAGEMENT2 Transportation demand management (TDM) strategies are policies and programs that aim to make more efficient use of existing transportation resources and reduce single occupancy vehicle trips by influencing travel behavior. TDM strategies are a cost- effective complement to infrastructure that help optimize available infrastructure and services. These strategies cover a wide range of approaches to improving access to transit from dispersal of information to programs that make transit more viable to fare payment structures. TDM strategies were developed through the review of academic and peer community research, review of existing conditions, and coordination with ECO Transit staff, stakeholders and the public. Strategies were organized by the land use context of each bus stop to demonstrate which strategies would be most effective for different land use types, or typologies. All bus stops were categorized under four different typologies: • RESORT- Bus stops that fall within a ¼-mile of a ski resort • TOWN CENTER- bus stops that are very accessible to pedestrians and bicyclists, little or no available free parking, and high population and employment density within a ¼-mile of the stop • RESIDENTIAL- bus stops only somewhat accessible to some pedestrians and bicyclists, little or no available free parking, and medium population and employment density within a ¼-mile of the stop • RURAL- bus stops not accessible to most pedestrians and only some bicyclists, available free parking, and low population/employment density within a ¼-mile of the stop Figure 5 and Table 3 shows a map and list of the typologies of each of the ECO Transit stops. ATTACHMENT 2 Red Cliff Avon Minturn Vail TDM Typology Rural Residential Area Town Center Resort FIGURE 5: Bus stop typologies ATTACHMENT 2 65 BUS STOPS BY TDM TYPOLOGY RESORT TOWN CENTER RESIDENTIAL RURAL AVON STATION BEAVER CREEK BEAR LOT e BEAVER CREEK BEAR LOT w BEAVER CREEK ELK LOT BEAVER CREEK VILLAGE HWY6 @ EAGLE BEND e HWY6 @ EAGLEBEND w HWY6 @ RIVERS EDGE e HWY6 @ RIVERSEDGE w NORTH FRONTAGE @ RED SANDSTONE NORTH FRONTAGE @ TIMBER RIDGE SOUTH FRONTAGE RD @ CASCADE VILLAGE SOUTH FRONTAGE RD @ DONOVAN PARK SOUTH FRONTAGE RD @ LIONSHEAD SOUTH FRONTAGE RD @ VAIL RD VAIL TRANSPORTATION CENTER 5TH ST @ WALL ST e 5TH ST @ WALL ST w CHAMBERS PARK AND RIDE HWY6 @ BULL RUN RD e HWY6 @ BULL RUN RD w HWY6 @ EDWARDS SPUR RD e HWY6 @ EDWARDS SPUR RD w HWY6 @ RESERVE e HWY6 @ RESERVE RD w HWY6 @ RIVERWALK e HWY6 @ RIVERWALK w COOLEY MESA RD @ NAVAJO RD e COOLEY MESA RD @ NAVAJO RD w EAGLE COUNTY AIRPORT EAGLE VAIL BUSINESS CENTER w EAGLE VALLEY HIGH SCHOOL ECO PARK N RIDE FAWCETT RD @ YODER AVE FREEDOM PARK PARK N RIDE GYPSUM REC CENTER e GYPSUM REC CENTER w HWY24 @ 472 MAIN ST HWY24 @ HARRISON AVE e HWY24 @ NORTH MAIN ST w HWY6 @ ARROWHEAD e HWY6 @ ARROWHEAD w HWY6 @ DOWD PK BUSINESS CENTER e HWY6 @ DOWD PK BUSINESS CENTER w HWY6 @ DOWD TRAIL HWY6 @ EAGLE RD e HWY6 @ EAGLE RD w HWY6 @ EAGLE RIVER VILLAGE e HWY6 @ EAGLE RIVER VILLAGE w HWY6 @ EAGLE VAIL BUSINESS CTR e HWY6 @ EAGLE VAIL RD e HWY6 @ EAGLE VAIL RD w HWY6 @ MILLER RANCH RD e HWY6 @ MILLER RANCH RD w HWY6 @ RIVERBEND RD w HWY6 @ SAWATCH DR e HWY6 @ STONE CREEK DR e HWY6 @ STONE CREEK DR w HWY6 @ STONEBRIDGE DR e HWY6 @ STONEBRIDGE DR w HWY6 @ SYLVAN LAKE RD e HWY6 @ SYLVAN LAKE RD w HWY6 @ TRAIL GULCH RD e HWY6 @ TRAIL GULCH RD w LAKE CREEK BLVD @ HILLCREST LAKE CREEK VILLAGE LINDBERGH DR @ COOLEY MESA RD e LINDBERGH DR @ COOLEY MESA RD w LINDBERGH DR @ MCGREGOR DR e LINDBERGH DR @ MCGREGOR DR w NORTH FRONTAGE @ WEST VAIL MALL SOUTH FRONTAGE RD @ CHAMONIX RD SUNNY AVE @ JULES DR e SUNNY AVE @ JULES DR w FOREST SERVICE PARK N RIDE HWY24 @ 996 MAIN ST e HWY24 @ 996 MAIN ST w HWY24 @ MEADOW MTN BUSN PRK e HWY24 @ MEADOW MTN BUSN PRK w HWY24 @ SOUTH MAIN ST w HWY24 @ WATER ST Maloit Park WOLCOTT e WOLCOTT w TABLE 3: Stop Typology List ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 66 Based on stakeholder and public input as well as professional judgment from the project team, the following top three highest priority TDM strategies were identified. 1. Bikes on/in buses ECO Transit currently has two bike racks on the front of every bus. However, those bike racks can only accommodate bikes during daylight hours because of obstructions to headlights. ECO Transit should consider fitting buses with new bike racks that can hold three bikes as well as ensuring that bikes do not obstruct headlights so bikes can be carried during all operating hours. Bike racks on the rear of buses should not be used because of liability, maintenance and alighting concerns. Due to limited visibility, theft or fear of theft of bicycles is more common. The bus drivers’ awareness of user’s loading or unloading a bicycle is also more limited. Lastly, maintenance often takes place through the rear of the bus, requiring the removal of rear racks. The photo below shows an example of a King County Metro bus with a rack holding three bikes. Bikes racks holding more than three bikes creates challenges for bus drivers’ visibility and maneuverability in bus stop zones and turning due to a longer bus. To provide additional capacity for bikes beyond three front racks spaces, bikes can be accommodated internally on a first come first serve basis. The photo below shows vertical bike racks on Salt Lake City’s TRAX trains. This rack is placed in an area not designated as seating. Designated flex space for bikes or strollers could be installed in seating areas that fold up in order to be used in times of low passenger volume as well. ATTACHMENT 2 67 2. Marketing Campaigns Marketing campaigns are an effective means to broadly promote ECO Transit services and first/ last mile programs and services. The goals of these campaigns should aim to: • Spread awareness and benefits of transit to residents and visitors • Educate and inform users about the logistics of using transit (stop locations, schedules, bikes on buses, first and last mile connections etc.) • Extend the ECO Transit brand • Correct perpetual stigmas • Drive traffic to ECO Transit website/app Developing marketing material streamlines the approach to collaborating with partners such as large employers, Mountain Ride, local resorts, and Vail Valley Partnership in order to distribute materials in a branded and cost-effective manner. ECO Transit should hone this approach to marketing by developing a marketing plan that discusses marketing objectives, target markets, implementation guidelines, potential partners, marketing plan schedule, and costs/ budget. 3. Integrated trip planning app, mobile ticketing and electronic payment ECO Transit has begun working with developers on modern solutions to develop the capabilities for mobile ticketing and fare payment. As first/last mile services and programs are implemented in Eagle County, they should be incorporated into the trip planning app, mobile ticketing and electronic fare payment system. In order to do this, it is important to ensure that third party providers can administer the necessary data structure needed on the back end of these systems. This level of integration will allow for a seamless experience for the user and decrease the real and perceived burden of transfers associated with first/last mile connections. Table 4 shows the top ten highest priority strategies identified by the project management team as the most effective and feasible. ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 68 STRATEGY DESCRIPTION IMPLEMENTATION APPROACH COST MARKETING CAMPAIGNS Convey branded material containing information on fares, frequency (both peak and off- peak), routes, and first/last mile options. ECO Transit to create material to distribute throughout the region at large employers, key destinations, bus stop signage, etc. Material should contain links to the recently updated website. $ IMPROVE SCHEDULES AND MAPS Make an easy to read, integrated map that shows all providers and operators in the region as well as first/last mile options (bike share, on-demand, car share, etc.), landmarks and transfer points. Translate material to Spanish. Work with the other transit providers to develop a system map that presents the services provided by all four operators (ECO Transit, Avon Transit, Beaver Creek Transit, and Vail Transit) as well as first/last mile providers. This map should be displayed at stops/stations and distributed in material and on the website. $ TRIP PLANNING APP Implement an app that aggregates all modal options that includes travel time and price to inform travel behavior; this can incorporate transportation options delivered as a service and gamification of travel behavior. Encourage independent developers to develop an app. Make data open source and require third party first/ last mile providers to have an open data policy. Direct users to this app through visitor information, employers, and ski resorts. $ BIKE PARKING: COVERED Place a shelter over bike racks to protect bikes from inclement weather for longer term parking. Longer-term parking should prioritize weather protection and security over convenience; signage should be provided to first time users. Consider alternative bikes including recumbents, trailers, cargo bikes, and children’s bikes. Refer to the APBP Bicycle Parking Guidelines for additional design details. $ BIKES IN/ON BUSES Provide a flex space on buses to allow bikes on buses; upgrade bus bike racks to allow bikes on buses during evening hours. Implement a pilot program to allow bikes on buses during non-peak hours, educating drivers and users on etiquette and policy; explore new bike rack designs that allows buses on bikes, while not blocking headlights. $$ ATTACHMENT 2 69 BIKE SHARE Expand the existing Zagster docked bike share program, focusing on providing stations at transit stops and stations. Consider additional models for the long term, including electric or dockless bikes. Work with the Climate Action Collaborative and Avon bike share program to serve as a sponsor/ funder and recommend high priority station locations. For even further integration between bike share and transit, integrate fare payment and trip planning. $$$ INTEGRATED FARE PAYMENT Provide consistent fare payment methods (smartcard and/or mobile application) for ECO Transit, local transit agencies and first/last mile providers such as bike share or future on-demand transportation. Coordinate with all transportation providers (fixed route, public, private, on-demand) to determine a fare payment mechanism that works with all transportation providers. $$$ IMPLEMENT MOBILE TICKETING FOR FARE PAYMENT Supplement cash payment and in-person fare purchases with an online purchasing mechanism, such as an ECO Transit app to streamline mobile payment, validation and ticketing. Incorporate mobile ticketing into an ECO Transit app by partnering with a third-party developer to develop and host. $ MIXED USED, AND KEY DESTINATIONS SUCH AS DAY CARE AND GROCERY STORE Plan for transit oriented development to promote density and a land use mix within walking distance of transit stops. Coordinate with Eagle County Planning and inclusive jurisdictions when considering zoning and site development near transit stops. N/A IMPROVED PASSENGER WAITING AREA Provide shelter, a bench, bike parking, and lighting at bus stops. Refer to the Hub and Park-and-Ride Study for an inventory of existing amenities; prioritize upgrades to stops with higher ridership. $-$$$ TABLE 4: Top 10 Transportation Demand Management Strategies ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 70 BIKE SHARE Expand the existing Zagster docked bike share program, focusing on providing stations at transit stops and stations. Consider additional models for the long term, including electric or dockless bikes. Work with the Climate Action Collaborative and Avon bike share program to serve as a sponsor/ funder and recommend high priority station locations. For even further integration between bike share and transit, integrate fare payment and trip planning. $$$ INTEGRATED FARE PAYMENT Provide consistent fare payment methods (smartcard and/or mobile application) for ECO Transit, local transit agencies and first/last mile providers such as bike share or future on-demand transportation. Coordinate with all transportation providers (fixed route, public, private, on-demand) to determine a fare payment mechanism that works with all transportation providers. $$$ IMPLEMENT MOBILE TICKETING FOR FARE PAYMENT Supplement cash payment and in-person fare purchases with an online purchasing mechanism, such as an ECO Transit app to streamline mobile payment, validation and ticketing. Incorporate mobile ticketing into an ECO Transit app by partnering with a third-party developer to develop and host. $ MIXED USED, AND KEY DESTINATIONS SUCH AS DAY CARE AND GROCERY STORE Plan for transit oriented development to promote density and a land use mix within walking distance of transit stops. Coordinate with Eagle County Planning and inclusive jurisdictions when considering zoning and site development near transit stops. N/A IMPROVED PASSENGER WAITING AREA Provide shelter, a bench, bike parking, and lighting at bus stops. Refer to the Hub and Park-and-Ride Study for an inventory of existing amenities; prioritize upgrades to stops with higher ridership. $-$$$ The full list of recommended TDM strategies is shown in Appendix F, with the top ten strategies highlighted in yellow. This toolbox identifies the following characteristics for each TDM strategy: • Category - strategies are grouped into broader categories • Description- a detailed description of how the strategy is best implemented, in the context of ECO Transit • Stop typology- identification of which of the four stop typologies the strategy will be most effective • Cost – relative cost ($, $$, $$$) to help identify priorities and manage resources. Cost is described as the cost to ECO Transit, per stop (where applicable) • Implementation approach – strategies that ECO Transit can use to guide implementation including funding sources, involved parties, or design guidance ATTACHMENT 2 71 ALIGNMENT WITH LOCAL TRANSIT AGENCIES3 Eagle County is served by a variety of transit providers, but public information about how to use more than one service provider to complete a trip is currently lacking. Service coordination between ECO Transit, Avon Transit, Beaver Creek Transit, and Vail Transit would help make transit more user friendly. Overall recommendations for improving coordination include: • Update the ECO Transit interactive online route map to include Avon, Beaver Creek, and Vail service. This change would help transit users better understand transfer points and opportunities to make first/last mile connections using another provider. • Coordinate with the peer transit agencies on proposed schedule changes. • Add route information, schedules, fares, and other information on peer agency service to ECO Transit buses and station areas. This will help riders unfamiliar with other systems to make decisions about their first/last mile connectivity options. In addition, when peer agencies make scheduling adjustments, ECO Transit can cross- advertise the changes on ECO Transit vehicles and at station areas. • Consider locations where local providers and ECO Transit have different bus stop locations where users are frequently making transfers. Consider collapsing into one bus stop to make transfers easier for users, and sharing costs for maintenance of stops. • Jointly engage in future public outreach efforts. ECO Transit may be missing opportunities to service riders using a peer agency’s service and vie-versa. By jointly putting out rider surveys or hosting public meetings, the four agencies can receive, input more effieciently, and can coordinate adjustments to transit service accordingly. ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 72 The following recommendations are specific modifications suggested for stops or ECO Transit routes. VAIL TRANSPORTATION CENTER As the eastern-most stop in the ECO Transit system, Vail Transportation Center serves as a critical link for travelers going further east using Vail Transportation’s East Vail service. Focus efforts on aligning schedules so that riders can seamlessly connect with other transportation services offered at the Transportation Center. Since several services converge at one location, ECO Transit could survey riders to understand which service they transfer to/from most often and which service they would most benefit from having an improved transfer. Survey results would help inform how ECO Transit coordinates schedules with peer agencies. VALLEY ROUTE The Valley Route serves Avon Station before proceeding to I-70 and does not make additional stops before getting onto the interstate. Avon Transit riders seeking to transfer from local service to the Valley Route can only transfer at Avon Station. ECO Transit may want to focus particular attention on coordinating its scheduled Avon Station service with Avon Transit to ensure any local riders seeking a regional connection are able to transfer to and from ECO Transit without experiencing overly long wait times since transfer opportunities are limited. ATTACHMENT 2 73 SHARED MOBILITY AND PUBLIC PRIVATE PARTNERSHIPS4 Shared mobility—the shared use of a vehicle, bicycle, or other low-speed travel mode—is an innovative transportation strategy that enables users to have short-term access to a mode of transportation on an as-needed basis. Shared mobility provides a broader set of transportation options for users that reduces reliance on the private automobile. Shared mobility can serve as an effective first/last mile solution due to its ability to optimize limited resources by serving many users in an on-demand capacity. The recommended operational model to provide these services is through a public private partnership, similar to the King County and Go Centennial pilots described in the case studies section, these partnerships allow the transit agency to focus on service components such as marketing, funding, and complementary infrastructure, while a private vendor operates and manages the service. This allows ECO Transit to focus their limited resources on the operational and maintenance needs of fixed route transit, while also providing and supporting first/last mile services. This study recommends two different forms of shared mobility that would be effective as first/ last mile solutions—ride-hailing and docked bike share. This study discusses, but does not recommend at this time, dockless bike share or electric scooters. RIDE-HAILING Ride-hailing uses a web-based platform (usually a mobile app) for prearranged and on-demand transportation services that match passengers with drivers. Drivers opt-in to provide this service, and fees and wait time are determined based on supply and demand. Digital applications are used for booking, electronic payment, and ratings. Uber and Lyft are currently the Transportation Network Companies (TNCs) operating within the Eagle County region, however, there is usually a limited supply of drivers available at any one time (making prices high) and there are times where there are no Uber or Lyft drivers available. There are currently other private transportation services that operate in the region including taxi companies, limousines and shuttles that provide similar services but often require advanced reservations or wait times that are higher than TNCs. ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 74 Ride-hailing serves as an effective transportation option for providing first/last mile access or replacing low ridership fixed route service; it optimizes resources by providing trips only when there is demand and providing the ability to share trips while still allowing door to door service. This study recommends three different service types for ride-hailing, described in detail in the following sections: 1. Mountain Family Health Center Connection- a pilot public private partnership that provides a connection between the Mountain Family Health Center, and the nearest bus stop—the Freedom Park bus stop 2. First/Last Mile Service- this service type provides on-demand transportation between a defined service area and a bus stop or transfer station 3. Minturn Route as On-Demand- conversion of the Minturn fixed route to an on-demand/ deviated route Additional ride-hailing opportunities that are not addressed in this plan are as follows. These opportunities should be studied further. • On-demand service to address the transportation of children- An on-demand service for working families that focuses on transporting children should be considered. A number of these providers exist around the country, including HopSkipDrive, which provides a rideshare platform focused exclusively on transportation kids 6+. • Partnership between the school district and ECO Transit- There are a number of locations where ECO Transit runs along a route that is similar to a school bus route. There is an opportunity to consolidate services by having the school district subsidize ECO Transit for providing trips to school. In addition to collaboration with Red Cliff as a part of the Minturn on-demand service, ECO Transit should consider opportunities to partner with Stone Creek Charter and West Edwards. Liability and federal regulation should be considered. MOUNTAIN FAMILY HEALTH CENTER One first/last mile gap, in particular, rose to the top as a high priority—the gap between the Mountain Family Health Center and the nearest bus stop, the Freedom Park bus stop. This gap was specifically addressed as a part of this study with the implementation of an on-demand service that was launched on March 1, 2019. The Mountain Family Health Center is a nonprofit, community-led, Federally Qualified Health Center system that focuses on providing holistic healthcare for all, with three locations in Eagle County. The Edwards location, on Beard Creek Road on the north side of I-70, is about one mile from the nearest ECO Transit bus stop, the Freedom Park bus stop (Figure 6). This walk, with a number of major road crossings and crossing under I-70, can serve as a barrier for many transit-dependent patients. ATTACHMENT 2 75 Figure 6: Gap between Mountain Family Health Center and nearest ECO Transit stop ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 76 To address this one-mile gap between the Freedom Park bus stop and Mountain Family Health Center, this study coordinated the implementation of a public private partnership with Ride Taxi, a local Vail Valley taxi company, to provide on-demand transportation service between these two locations. This partnership consists of an account that allows users traveling between these two destinations to bill their taxi ride to ECO Transit. Ride Taxi then provides monthly invoices to ECO Transit. Eligible trips are those with one end of the trip at the Mountain Family Health Center and the other end at Freedom Park bus stop and are fully subsidized by ECO Transit. Ride Taxi currently does not have a wheelchair accessible vehicle, but is planning to purchase an ADA-compliant addition to their fleet in Spring 2019. At this point, eligible users can use ECO Transit’s paratransit service to access Mountain Family Health Center. When users need a ride between the bus stop and health center, they call Mountain Ride Transportation Resource Center to book the ride. Mountain Ride is an organization managed by the Northwest Colorado Council of Governments founded to coordinate, manage, consolidate, educate, promote, enhance, and facilitate seamless access to transportation services for veterans, people with disabilities, older adults, and economically disadvantaged people. Mountain Family Health Center is also educated on the Ride Taxi transportation subsidy to help guide patients to this available transportation option that makes public transit more feasible for many. FIRST/LAST MILE SERVICE An on-demand first/last mile service would provide transportation where one end of the trip is within a pre-defined boundary and the other end is at a designated bus stop or transfer station. This service would extend the reach of the existing fixed route service by providing users with a reliable transportation option that can seamlessly provide access to and from fixed route stops. The pre-defined boundary should be set in an area that does not currently have transit service but is within close enough proximity to fixed route service so that there is demand present and wait and travel times are on average 15 minutes. Based on the criteria identified above, this study identifies the Eagle Vail area as a high priority, as shown in Figure 7. This study recommends implementing the first pilot at this study area and evaluating its success before implementing additional first/last mile on-demand pilots. If the Eagle Vail pilot is successful, this service should be replicated in the Edwards area. ATTACHMENT 2 Figure 7: Eagle Vail First/last Mile Service Area ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 78 MINTURN ROUTE The Minturn route is ECO Transit’s lowest ridership route (when normalized by number of operating days). As stated in the TDP, “in the winter, it carries 51 riders per weekday, 34 passengers per Saturday, and 33 passengers per Sunday. During the off-season, it carries 13 riders per weekday, nine per Saturday, and 14 per Sunday.” The TDP also recommends an expansion of service for the Minturn route to include full service to Vail, midday service, and service to Red Cliff to replace the current school bus. In order to accommodate these service expansions in a cost-effective manner, this study explores a potential operational model for switching this service from fixed route to on- demand through a public private partnership. This service should meet the following characteristics: • Provide a deviated route within the Minturn town boundary to balance route optimization with addressing the first/last mile gap • Provide service to Vail when a transfer to a fixed route is not available • The operating hours of the on-demand service should be expanded to include midday service • Stop at the Forest Service Park-and-Ride and facilitate transfers • Evaluate the opportunity to include Red Cliff to replace the existing school bus service. This will include collaboration with the school district. OPERATIONAL MODEL CHARACTERISTICS FOR ON-DEMAND FIRST/LAST MILE SERVICE AND MINTURN ROUTE The following sections describe the detailed operational characteristics that ECO Transit should consider in the implementation of an on-demand pilot for first/last mile service or the Minturn route. PROVIDER ECO Transit should consider providers that have the following capabilities: • On-demand, door to door service, that can meet an average wait time of 15 minutes or less • A mobile application with ride booking and GPS-enabled location tracking • Data sharing abilities • Ride sharing option to pair riders based on origin, destination, and departure/arrival time As a part of this study, the project team reached out to Uber, Lyft, Ride Taxi, BLine Express, and Downtowner to consider providing an on-demand service. Downtowner provided a proposal for these services, as seen in Appendix G. ECO Transit should distribute an RFP for the services described previously and in this section. Proposal submittals will allow ECO Transit to select a provider that is cost-effective, reliable, and fits the operational model for this service. ECO Transit should also consider the region’s goals of employing local residents with living ATTACHMENT 2 79 wages and insurance, as a part of the selection of a provider. Two different providers could be selected for these services, but a single provider would allow for increased affordability due to economies of scale, a streamlined experience for the user, and a simplified contracting process. BOOKING MECHANISM Two booking mechanisms should be provided for on-demand service users: a mobile application and a concierge service (which could potentially be provided by Mountain Ride Transportation Resource Center). Both booking mechanisms will use the same back-end system to assign trip requests to drivers, route trips to their destinations, gauge eligibility, and collect usage data. While the service is designed to be on-demand, the chosen provider should also permit users to reserve rides in advance. To meet ADA requirements, the mobile application and concierge service, taken together, must be accessible to people with visual, auditory, and/or cognitive disabilities. Both booking mechanisms should result in a wait time of less than 30 minutes, with an average wait time of about 15 minutes. Using either the private operator’s existing app, or a stand-alone trip planning app, the user will enter their origin and destination and receive an estimated pick-up time for their trip. Both approaches have been used in previous pilots, such as in the Go Centennial program where first/last mile trips could be booked through the TNC partner’s app or through a stand- alone app used to plan mobility throughout the Denver region. On-demand service must also be available to people who do not use smartphones in order to adequately serve all its potential riders. PRICING AND PAYMENT Several potential pricing structures could be applied to on-demand service. The Minturn on-demand service fare should be equivalent to the ECO Transit fixed route fare. If the funding is available, ECO Transit should fully subsidize the first/last mile service. By eliminating the fare completely, this service is more streamlined for users to book, provides more equitable access, and makes transit more cost-competitive with driving. If ECO Transit is only able to provide a partial subsidy, based on fare elasticities, it was determined that a flat fee of $1 per ride will cause some decrease in potential ridership but not impose an undue cost burden on those using the service. If the user needs to pay a fare, it should be integrated within a trip booking app as well as with the payment for an ECO Transit fixed route ticket. This fare should also be a flat fee rather than a percent of the trip cost to increase intuitiveness and predictability for a user. While private TNC services are generally booked and paid for through a smartphone app, this on-demand service will allow cash payments so as to equitably serve all users. ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 80 Uber services in other countries allow for cash payments, and other pilot programs in the United States have set up similar payment systems. INTEGRATION WITH ECO TRANSIT First/last mile and Minturn on-demand services should be seamlessly integrated with other fixed route services. The two most effective means of integrating these services is through trip planning and payment integration. As discussed in the TDM section, ECO Transit should work with a third-party developer to create a trip planning and booking mobile application that allows for the planning, booking, and payment for all modes in an easy-to-use platform that makes transferring seamless. ADA CONSIDERATIONS The Americans with Disabilities Act (ADA) prohibits discrimination against people with disabilities and guarantees that they have equal access to employment, goods, and services. The U.S. Department of Transportation develops ADA regulations for public transit service providers, including the operators of on-demand (“demand responsive”) services and contractors to public transit agencies. These rules affect how the on- demand service would operate in two ways: • It must provide equivalent service to individuals with disabilities (including wheelchair users) and other individuals. The service provided to people with disabilities must be equivalent with respect to response time, fares, coverage area and hours of service, access to reservations and information, restrictions on use, and overall capacity and availability of service..1 • While the on-demand vehicle fleet may include some non-accessible vehicles, the fleet as a whole must provide an equivalent level of service to riders who use wheelchairs as it does to other riders.2 The general requirement for accessible service applies not only to using the service but also to booking the service. These requirements do not apply to individual contractors under the service: for example, one contractor may have only vehicles that are not wheelchair accessible, while another may have only wheelchair accessible vehicles or a mix of accessible and non-accessible vehicles. Additional guidance for on-demand service operators can be found in Chapter 7 of FTA Circular 4710.1: Americans With Disabilities Act Guidance. 1 Transportation, 49 C.F.R. §37.77 (c) (2018). 2 Transportation, 49 C.F.R. §37.77 (b) (2018). ATTACHMENT 2 81 MARKETING PLAN Based on the lessons learned in the pilot programs examined in the case studies and literature review in association with this study, marketing and branding is crucial to educate potential customers about an on-demand transit service and their expanded set of transportation options. In advance of implementation, ECO Transit should develop a Marketing Plan. The objectives of the Marketing Plan are: to build awareness of the new service, educate users on how this service operates seamlessly with existing transit service, target outreach to key populations (including commuters, low-income users, tourists/visitors), address and anticipate riders’ concerns, and develop a high level of satisfaction with the new service. A general rule of thumb is that a small transit system should spend about 1-2% of its annual operating budget on marketing.3 With a 2016 estimated budget of almost $7.7 million, this would mean a marketing budget of $150,000 annually. ECO Transit should examine both internal and external funding sources to determine if it can spend the amount needed to successfully market the new program(s). Spending closer to 4% of the annual budget, a total of $300,000 a year, on on-demand service(s) would ensure a greater level of success on launch if the funding can be secured. Marketing dollars could likely decrease after the first year of the pilot if the program is continued, assuming that the branding, ridership and reputation have been established and the service performance remains strong. EVALUATION PLAN Eagle County should develop and implement a plan for measuring success of the pilot. As such, ongoing data collection, data analysis and evaluation of the pilot are important components of this program. Appropriately evaluating success is important given that this program is intended to be a pilot and dynamic in nature as qualitative and quantitative feedback are received. This section lays out a strategy for using data to monitor key goals and performance measures. By monitoring the success of the pilot, this evaluation effort may help the short and long- term success of this pilot in several ways: • Measure and track the achievement of the goals of the service • Allow ECO Transit to improve service during the duration of the pilot • Inform modifications to the program for long- term implementation and sustainability 3 http://nationalrtap.org/marketingtoolkit/How-To-Guide- for-Marketing-Transit ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 82 • Determine the program’s long-term financial sustainability • Help secure additional funding to extend the pilot beyond its initially determined timeframe, if desired • Allow the program to expand to other parts of the ECO Transit service area ECO Transit is responsible for ensuring the performance tracking for the pilot once it is implemented. ECO Transit should designate performance measures that are tied to the goals of the program and should collect and evaluate data monthly in order to use this information to make minor adjustments during the pilot as necessary. These adjustments may include efforts such as improvements to the user interface or user experience, additional marketing to boost or maintain ridership, changes to the service area or changes to the user fare. In order to provide the most value, data should be collected in a consistent and reliable manner. ECO Transit should work with the determined provider to collect the following data points: • Trip origins • Trip destinations • Date and time of each trip • Time of each trip (minutes) • Length of each trip (miles) • Wait time for the service • Average passenger load of each trip • Wheelchair user or not • Number of calls to book trips through the concierge service or Mountain Ride • Ridership on ECO Transit fixed routes Data collection of quantitative data points should be complemented by survey data to collect qualitative data. Surveys should gauge from users the following: demographics, trip purpose, frequency of use of the service, access to a vehicle, satisfaction with the service. ECO Transit should develop a formal Evaluation Plan before launching either pilot. PHASED IMPLEMENTATION ECO Transit should implement a one-year pilot program at the Eagle Vail service area as well as Minturn route, and individually evaluate the success of each based on an established Evaluation Plan. If the pilots are successful, ECO Transit should then consider longer-term implementation, as well as additional first/last mile pilot programs in other relevant locations in the service area. ATTACHMENT 2 83 AS ECO TRANSIT CONTINUES TO PLAN FOR AN ON-DEMAND PILOT, IT SHOULD CONSIDER THE FOLLOWING QUESTIONS: • Should the program focus on residential connections to transit (the ‘first mile’), or transit connections to businesses and jobs (the ‘last mile’)? • Will TNCs provide the same level of service as the transit agency, especially for passengers with disabilities and seniors? • Where and who are the area’s most vulnerable populations and how could they be accommodated in an on-demand/transit partnership? • Could commercial destinations be redesigned to accommodate more curbside drop-offs and less parking? • How are current riders getting to transit and is there potential for TNCs to reduce active modes? • What are the benefits and risks to the transit agency in a partnership with TNCs? ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 84 ATTACHMENT 2 85 BIKE SHARE5 ECO Transit can support the growth of bike share within Eagle County in three phases: • Growing the existing system • Supporting a near-term pilot to add electric bicycles • Planning for a potential long-term transition to an alternative bike share vendor Growing the Existing System The Town of Avon has hosted a successful Zagster bike share system and the County is considering an expansion that will bring bike share to other Eagle County communities. An expansion presents new opportunities for Eagle County residents and visitors to travel by a non-driving mode, and to connect with ECO Transit service. During the expansion, ECO Transit has an opportunity to make recommendations on where new bike share stations should be placed. Potential bike share stations have been suggested as part of the infrastructure improvements recommended in this report ; potential bike share locations identified by stakeholders and the public are shown in Figure 8. It is recommended that in lieu of deploying its own bike share system, ECO Transit enter into a funding partnership with Zagster and fund new stations that are placed adjacent to ECO Transit stops. ATTACHMENT 2 Edwards EagleGypsum Avon Vail Minturn Legend Proposed Bike Share Station Locations Beaver Creek Route Valley Route Minturn Route Leadville Route Highway 6 Route Bike-shed (Three Miles) Proposed Locations for Bike Share Stations Figure 8: Potential Locations for Bike Share Expansion ATTACHMENT 2 87 Near-Term Electric Bicycle Pilot Zagster, the current bike share vendor, plans to offer electric bicycles during the summer of 2019. Electric bikes are being considered as an option as a part of the expansion of the existing bike share. ECO Transit can support a potential pilot program through a funding partnership. Bringing electric bicycles would help potential ECO Transit riders access stops more easily and provide support with navigating the challenging topography of the County. The Park City and Summit County, Utah electric bike share system debuted in 2017. As noted earlier in the report, the Summit County electric bikes have been received positively. The bikes overcome similar geographic barriers that Eagle County users would face, including steep grades and high elevation. Summit County bike share users make longer trips—an average trip length is seven miles – compared with non-electric docked systems, where average trips average two to three miles in length. ECO Transit and Eagle County can look to Summit County bike share for insight on how to successfully add electric bike share to the transportation network of a mountain community. Long-Term Transition to Alternative Vendor As bike share begins to scale in system size and ridership, ECO Transit may ultimately find that a critical mass of transit users access the system by bike share. If bike share grows in popularity and becomes a feeder for transit service, ECO Transit should re-visit the plan to deploy its own bike share system. A new vendor may be needed if ECO decides to adopt a dockless model. This effort may entail identifying a new vendor or adding funding to the existing system to enable further expansion. If ECO Transit decides to start a new bike share system, a branding effort will be needed in order to better alert the traveling public that the transit agency provides a robust first/last mile travel solution. ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 88 ATTACHMENT 2 89 OTHER EMERGING MOBILITY SOLUTIONS6 DOCKLESS BIKE SHARE are bikes available for rental by the hour through a smartphone app that can be parked in any public bike rack or on the sidewalk. Electric bike share can be docked or dockless, and operate like other bike share models, but with an electric assist. Examples: • Motivate: Ford GoBike, CitiBike (conventional and electric bikes; docked or station-based, one-way or roundtrip) • LimeBike (conventional and electric bikes; dockless or free-floating one-way) • JUMP Bike (electric bikes; dockless or free-floating one-way) SCOOTER SHARING allows individuals to access scooters by joining an organization that maintains a fleet of scooters at various locations. Scooter sharing models can include a variety of motorized and non-motorized scooter types (e.g. seated, motorized Vespa scooters vs. standing, electric kick scooters). The scooter service provider typically provides gasoline or charge (in the case of motorized scooters), maintenance, and may include parking as part of the service. Users typically pay a fee each time they use a scooter. Trips can be roundtrip or one way. Examples: • Lime-S (electric kick scooter) • Bird (electric kick scooter) • Spin (electric kick scooter) • Scoot (seated motorized scooters and electric kick scooter) ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 90 The dockless and e-bike/scooter model is fundamentally different than docked bike share in that it is owned, operated and financially sustained primarily by private companies. There are a number of limitations as well as benefits for these models, as compared to the traditional docked bike share system that is currently in place and recommended for expansion. Most notably, this model decreases the financial burden for ECO Transit, but also decreases the control the agency and local jurisdictions have on the characteristics and deployment of these systems. This study does not recommend the implementation of dockless or electric bike share (e-bike) or electric scooters in the short-term. These models are not currently appropriate in the region based on the land use density, climate, bicycle/ pedestrian infrastructure currently present, unpredictability of this market and existing expanding docked bike share system. • Land use- Given the low-density, suburban and rural character of much of ECO Transit’s service area, a dockless bike share or scooter system may not be viable financially for the provider or for the user. This model requires a high density of bikes or scooters to be successful, to ensure that a user is within walking distance of a bike or scooter at any time within the service area. This would require companies to frequently circulate bikes or scooters to more central locations or provide a high number of bikes and scooters, regardless of number of rides. • Climate- The extreme weather that Eagle County experiences may make using these modes, especially scooters with their small tires, a challenge in the winter. After dockless bikes and scooters were first deployed in the winter of 2018-2019, vendors did not make any special accommodations in cities like Denver, Baltimore and Chicago. They pulled back only in inclement conditions. Unplowed streets, snow-piled sidewalks, and extreme cold may make riding and parking bikes and scooters challenging for users during the months from November to April. ATTACHMENT 2 91 • Bicycle/pedestrian infrastructure- As described in the bicycle and pedestrian infrastructure section of this report, there are many areas of roadway that are missing low-stress and connected bicycle facilities and sidewalks. These gaps in the multimodal network create challenges for users on scooters and bike share, many of whom may be tourists and inexperienced users. • Volatile industry- ECO Transit is looking for long-term sustainable solutions to first/ last mile challenges. These systems are still nascent, funded by investors, and navigating new city regulations. • Competition with existing docked bike share program- By promoting and supporting an additional bike share or scooter share system, a new dockless system may decrease ridership of the currently expanding Zagster system. However, the region should be open to reevaluating and considering dockless or e-bike or e-scooter share in the longer-term, by monitoring the evolution of the quickly changing shared mobility and personal mobility device industry. This section outlines additional considerations as this industry evolves. Limitations In addition to the specific challenges of implementing dockless or e-bike or e-scooter share in the Eagle County region, there are a number of limitations to this model more generally, that ECO Transit should be cognizant of. These limitations include: • Unpredictability in how long these services will be present for given that they don’t have a contractual agreement; makes it hard for users to change travel behavior and rely on them, or for ECO Transit to plan long-term investments and ensure a comprehensive landscape of transportation options • Impacted public areas and ADA accessibility from scooters and bikes parked on sidewalks or other public spaces • Concerns over safety due to sidewalk riding, insufficient bicycle facilities, and inexperienced riders • Concerns of equity since these services typically require smartphones and bank accounts to operate and are often deployed in higher-income neighborhoods • Concerns over data management as not all companies have been transparent with user travel data • Concerns over regulations by local governments as they are responsible for ensuring the health and safety of the public and have the authority to permit or restrict use of e-bikes and e-scooters within the public right-of-way ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 92 Benefits Electric and dockless shared personal mobility devices have a number of benefits as well. These benefits are important to consider as ECO Transit continues to track the progression of this model to determine if it is appropriate in the future. These most prominent benefits include: • Extended bicycle trip lengths beyond what is considered the current optimal bicycle distance of one to three miles • Reduced greenhouse gas emissions as some short distance auto trips may be replaced with e-bikes and e-scooters • Improved first/last mile travel as users can conveniently park close to their destination or have more flexibility in parking location, therefore shortening the overall travel time • Enhanced active transportation options that improve comfort levels of travelers by overcoming significant challenges such as high-speed differentials between bicyclists and drivers or changes in elevation common in Eagle County that can be a disincentive for non-powered bicycling • Reduced roadway congestion due to less VMT by single occupancy vehicles ATTACHMENT 2 93 • Increased number of people bicycling in areas that have seen very few bike trips, which means jurisdictions will need to be smarter about designing all streets for bike safety • Lower financial risk for ECO Transit, as these models are fully funded by the private operator Considerations for Regulating Bike Share Vendors Some early dockless e-bike and e-scooter providers launched their services without consulting local governments. At the time when these services were first launched, most cities did not have an official permit process established and there were no specific local guidelines. Several city agencies, such as San Francisco’s Municipal Transportation Agency and Seattle’s Department of Transportation have implemented short-term permits and pilot programs in response to these new mobility services. Since dockless bike share companies are operated through private companies, jurisdictions should set regulations for these vendors in order to exhibit control over how these systems are operated. These regulations can ensure that privately owned bike share systems do not negatively impact other roadway users, are safe for its users, allow equitable access and share the data generated with the jurisdiction to better inform transportation investments. Eagle County can also enact a permit system that requires all vendors to apply for a permit; this approach gives Eagle County more control over the number of vendors and nature of the system. The following list outlines categories of regulations that Eagle County should put in place if dockless bike share, e-bikes or scooters enter the region. Figure 9 shows a comprehensive list of regulations in place by jurisdictions around the country. • Data-sharing requirements – such as origin, destination, trip length, trip route, etc. • Equity issues – for example, a certain percentage of scooters must be in underserved communities, low-income discounts should be provided, and scooters for people with disabilities should be provided • Fees – per operator and per scooter to regulate the number of scooters and companies present • Parking and rebalancing – bikes or scooters illegally parked need to be moved within a certain amount of time ATTACHMENT 2 FIGURE 9: Dockless Bike Share Regulations by City Source: Twelve Tone Consulting ATTACHMENT 2 07 Next Steps PRIORITIZATION The four primary categories of recommendations—bicycle/pedestrian infrastructure, transportation demand management, ride-hailing and bike share—all comprehensively address the first/last mile challenge. Although these recommendations are not mutually exclusive, there is limited funding available for transportation improvements. Therefore, prioritization between these categories of recommendations is an important consideration to inform implementation as funding and resources becomes available. Prioritization was informed based on a combination of stakeholder and public input, Board of County Commissioners feedback, and professional judgment from the project team. The prioritization of categories of recommendation are as follows, with high priority next steps identified for each category. 1. TRANSPORTATION DEMAND MANAGEMENT TDM projects tend to be lower cost and can be implemented in small pieces. ECO Transit should leverage funding and resources from partners such as large employers, Vail and Beaver Creek ski resorts, or chambers of commerce to reduce ECO Transit’s financial burden and increase the success of these strategies. ECO Transit’s highest TDM priority should be continued investment in the implementation and marketing of the trip planning app and mobile ticketing. The second priority is updating infrastructure and policies to allow ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 96 up to fives bicycles in or on buses during all operating hours. The third priority is to expand marketing campaigns that promote, educate, and inform in order to increase ridership. 2. RIDE-HAILING The most support for ride-hailing is for converting the Minturn route to an on- demand/deviated service. This service is estimated to cost a similar amount as the current fixed route service, but with benefits including decreased wait time, reduction of the first/last mile gap, and expanded operating hours. This service should also consider extending service to Red Cliff and partnering with the school district to serve students. 3. BIKE SHARE ECO Transit should prioritize the expansion of Avon’s existing bike share system as it expands mobility options for users and provides access to transit. Next steps are to develop a cost proposal to submit to Board of County Commissioners. Figure 8 of study identifies potential locations for bike share expansion. 4. BICYCLE/PEDESTRIAN INFRASTRUCTURE It is recommended that initial connectivity investments be focused on improving assets that ECO Transit maintains and has influence over, such as bus shelters, seating, wayfinding signage, and bicycle racks. Some recommendations in this report such as lighting, wayfinding signage, or sidewalks will require review and approval by either local partners or CDOT. It is recommended that ECO Transit begin identifying preliminary signage and lighting designs to facilitate the eventual review process. ECO Transit should leverage opportunistic events that would facilitate the implementation of these recommendations such as bicycle/pedestrian infrastructure projects associated with redevelopment, repaving schedules and other capital improvement projects in the region. 96 ATTACHMENT 2 97 FUNDING SOURCES ECO Transit is currently funded primarily (73% of costs) through local funds—a half cent countywide sales tax (Figure 10). Fares make up a little less than ¼ of the agency’s operating budget, with federal and other funds making up the remaining 5%. There are a variety of additional funding measures that ECO Transit can pursue to support the implementation and operations of first/last mile solutions proposed in this study. Federal funds are usually in the form of grants, while state funds come from the general fund, taxes, and fees. Local funds usually come from farebox revenue and local property tax levies. FEDERAL GRANTS There are a variety of grants that could be used to fund first/last mile services. Grants are split into two categories – formula grants and discretionary grants. Formula grants are awarded based on a formula, usually allocated according to population, ridership and/ or system extent, and are not competitive. Discretionary grants are awarded through a competitive application process which funds specific projects for a specific period. Discretionary grants have a downside in that they are time-limited and competitive. There is no guarantee that ECO Transit will receive replacement federal funding once the grant expires. Thus, discretionary grants are best for one-time costs like service planning or purchasing new vehicles rather than ongoing operating expenses. The following grants have the opportunity to provide funding in the future: • 5310 Enhanced Mobility of Seniors and Individuals with Disabilities Discretionary Program This discretionary program is aimed to help groups in meeting the transportation needs of older adults and people with disabilities when the transportation service provided is unavailable, insufficient, or inappropriate to meeting these needs. This program supports transportation services planned, designed, and carried out to meet the special transportation LOCAL FARES FEDERAL & OTHER FIGURE 10: Breakdown of ECO Transit funding ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 98 needs of seniors and individuals with disabilities in all areas while expanding transportation mobility options. Funds are apportioned based on each state’s share of the population for these two groups. Federal share may not exceed 80% of eligible capital costs, 50% of operating assistance • 5310 Enhanced Mobility of Seniors and Individuals with Disabilities This formula fund supports public transportation for seniors and individuals with disabilities by funding eligible capital, purchased service, and preventive maintenance projects for transportation providers. Eligible projects include vehicle purchases, passenger shelters, purchased services, preventive maintenance, travel training, marketing programs, development of centralized call centers, and other equipment that supports transportation to meet the special needs of seniors and individuals with disabilities. • 5311 Formula Grants for Rural Areas These grants support rural public transportation providers operating in areas with populations less than 50,000 by financing operations, capital, project administration, and preventive maintenance projects. Federal share may not exceed 80% of eligible capital costs, 80% of ADA non-fixed route paratransit, or 50% of operating assistance. • 5311 Transit Network and Intercity Program The Transit Network and Intercity Program supports and provides capital assistance (buses and shelters) for regional connector services, including planning, marketing, coordination, preventive maintenance, and projects that support key transit hubs. • FTA Mobility On-demand Sandbox Program The MOD program envisions a multimodal, integrated, automated, accessible, and connected transportation system in which personalized mobility is a key feature. The Sandbox Demonstration Program seeks to fund project teams to innovate, explore partnerships, develop new business models, integrate transit and MOD solutions, and investigate new, enabling technical capabilities such as integrated payment systems, decision support, and incentives for traveler choices. $8 million was allocated in 2016. • US DOT’s Better Utilizing Investments to Leverage Development (BUILD) Transportation Discretionary Grants (formerly TIGER grants) This formula grant program funds for transportation infrastructure, including transit, and currently plans to focus a greater share of funding to projects in rural areas. Projects are evaluated based on merit criteria that include safety, economic competitiveness, quality of life, environmental protection, state of good repair, innovation, partnership, and additional ATTACHMENT 2 99 non-federal revenue for future transportation infrastructure investments. $1.5 billion in funding is available through September 2020. While technically eligible for this grant program, our team has not seen a successful BUILD grant application for a first/last mile or point to point transit project. • Surface Transportation Block Grant A formula grant distributed to states who then distribute it through discretionary grants. This grant primarily funds capital improvements. • Public Transportation Innovation Program The program is a competitive grant process that provides funding to develop innovative products and services assisting transit agencies in better meeting the needs of their customers. It funds research, development, demonstration and deployment projects, and evaluation of technology of national significance to public transportation. STATE FUNDING While ECO Transit is primarily funded by local funds, state funding options are also available. • FASTER Transit Grants “FASTER supports transit projects with $15 million every year based on a statutory set aside from the road safety surcharge revenue. FASTER dollars have provided the first permanent infusion of state funds for transit, which have been instrumental in helping maintain existing local transit systems, guiding the first steps toward regional bus transit service, and determining the feasibility of a high-speed rail system. FASTER transit funds are split between local transit grants ($5 million per year) and statewide projects ($10 million per year). The $5 million in local transit grants is awarded competitively by CDOT regional offices, while statewide funds are awarded by the CDOT Division of Transit and Rail to statewide, interregional, and regional projects. Local recipients are required to provide a minimum 20% local match. Among the types of projects that have been awarded are the purchase or replacement of transit vehicles; construction of multimodal stations; and acquisition of equipment for consolidated call centers.4 LOCAL FUNDING ECO Transit is primarily funded through a local sales tax, but other local funding sources are also available. • Sales Tax ECO Transit is currently funded by a ½% sales tax. However, Colorado allows up to a 1% sales tax. Raising the current sales tax could provide a steady and reliable funding source for transit. 4 https://www.codot.gov/projects/faster/faster-transit-grants ATTACHMENT 2 Eagle County First/Last Mile Strategy Study | 100 • Farebox Revenue and Advertisements These are direct revenues from bus fares and from advertisements on buses or shelters. Raising transit fares would increase income from this source but may lead to decreased ridership and reduced mobility options for underserved populations. Increasing advertisement options could increase revenue from local sources. • Local Property Taxes Cities and counties may levy property taxes to support transit. These can either be permanent or a local option tax that is subject to voter approval. While this has been used in many places it does need public support. • Community Partners It is possible that large employers or interested community partners in Eagle County, such as Vail Resorts, the local school district, or Vail Health, could contribute to the on-demand program as it serves their users and provides better access to their services. These local partners may gift funds to the program or they could help to subsidize trips for their employees. Other similar entities that fund transit in other areas include chambers of commerce or business improvement districts. • Local Payroll Tax It is an option to assess a local payroll tax on employers or employees. This can raise funds but can also burden low-income workers and may not have public support. • Gas Tax Eagle County can choose to allocate its portion of the gas tax to transit. Other funding options that could be considered with further analysis are formulation of a transit district with taxing authority, parking fees, transportation impact fees, and special assessments. ATTACHMENT 2 08 Appendices • APPENDIX A: Existing Conditions • APPENDIX B: Case Studies and Literature Review • APPENDIX C: Stakeholder Meeting Material • APPENDIX D: Bicycle And Pedestrian Infrastructure Needs Scoring • APPENDIX E: Bicycle And Pedestrian Infrastructure Cost Estimates • APPENDIX F: Transportation Demand Management Toolbox • APPENDIX G: Downtowner Proposal For On-Demand Service ATTACHMENT 2 TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Scott Wright, Asst. Town Manager Date: May 28, 2019 Topic: 2018 Comprehensive Annual Financial Report and Communication with Governing Body ACTION BEFORE COUNCIL On Tuesday evening, Paul Backes with McMahon & Associates, the Town’s independent auditing firm, will present their audit findings to the Avon Town Council. RECOMMENDED MOTION After presentation of the audit report from the auditors, the Town Council should accept the report. The recommended motion would be “Move to accept the 2018 Comprehensive Annual Financial Report”. BACKGROUND In addition to presenting their audit findings, it is common for the auditors to make recommendations regarding internal controls and policies and procedures to help the Town operate as efficiently as possible with the highest degree of transparency and integrity. The auditors had no recommendations from the 2018 audit. However, the auditors have identified a new governmental accounting standard - Statement No. 87 Leases - that will be required to be implemented for the 2020 calendar year and will require substantial effort on the part of staff. I will keep you apprised of these efforts. ATTACHMENT: A - Communication with Governing Body McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.co Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 M & A To the Honorable Mayor and Town Council Town of Avon, Colorado We have audited the financial statements of Town of Avon, Colorado for the year ended December 31, 2018. Professional standards require that we provide you with the following information related to our audit. Qualitative Aspects of Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Town of Avon, Colorado are described in the Notes to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Estimated useful lives for depreciation on fixed assets: Management’s estimate of depreciation is based on industry practice and experience. Allowance for doubtful accounts: The Town has a number of receivables from developers and others. Some of the amounts owed to the Town may be uncollectable. The Town has recorded an allowance for doubtful accounts to reflect any anticipated default on receivables. Estimated claims reserve: Management’s estimate of the claims reserve liability is based on actual claims activity relative to stop loss refunds and premiums charged to departments. We evaluated the key factors and assumptions used to develop estimates above and found that they are reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. There were no misstatements detected as a result of audit procedures which were material, either individually or in the aggregate, to the financial statements taken as a whole. ATTACHMENT A To the Honorable Mayor and Town Council Town of Avon, Colorado Page 2 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit Management Representations As is required in an audit engagement we have requested certain representations from management that are included in the management representation letter. Governmental Accounting Standards Board Statement 87: Financial reporting standards for the Town are promulgated by the Governmental Accounting Standards Board (“GASB”). GASB has issued Statement 87 (“GASB 87”), which will require recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. GASB 87 is required to be implemented for periods beginning after December 15, 2019. This letter is intended solely for the information and use of the Town Council, management, and others within the organization and is not intended to be, and should not be, used by anyone other than those specified parties. Sincerely, McMahan and Associates, L.L.C. May 16, 2019 ATTACHMENT A Comprehensive Annual Financial Report for the year ended December 31, 2018 Town of Avon 100 Mikaela Way ▪ Avon, CO ▪ 81620 ▪ 970-748-4000 ▪ www.avon.org TOWN OF AVON, COLORADO LIST OF ELECTED AND APPOINTED OFFICIALS December 31, 2018 TOWN COUNCIL Sarah Smith Hymes, Mayor Jennie Fancher, Mayor Pro Tem Amy Phillips Scott Prince Chico Thuon Tamra N. Underwood Jake Wolf MANAGEMENT Scott Wright, Acting Town Manager Preston Neill, Deputy Town Manager John Curutchet, Recreation Director Greg Daly, Police Chief Justin Hildreth, Town Engineer Rego Omerigic, Fleet Director Gary Padilla, Public Works Director Matt Pielsticker, Planning Director Lance Richards, Human Resources Director Eva Wilson, Mobility Director i TOWN OF AVON, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2018 TABLE OF CONTENTS INTRODUCTION Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Town of Avon Organization Chart FINANCIAL SECTION Independent Auditor’s Report Management’s Discussion and Analysis Basic Financial Statements Government-wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet – Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Statement of Net Position – Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds Statement of Cash Flows – Proprietary Funds Notes to the Financial Statements Required Supplemental Information Schedule of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) – Budget and Actual – General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) – Budget and Actual – Avon Urban Renewal Authority Fund Notes to Required Supplemental Information Page iv-ix x xi 1-2 3-16 17 18-19 20-21 22-23 24 25 26-27 28-52 53 54 55 TOWN OF AVON, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2018 TABLE OF CONTENTS - CONTINUED ii Other Supplemental Information Nonmajor Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds Schedules of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) - Budget and Actual: Water Fund Community Enhancement Fund Affordable Housing Fund Exterior Energy Offset Fund Disposable Paper Bag Fee Fund Debt Service Fund Capital Projects Fund Transit Fund Fleet Maintenance Fund Equipment Replacement Fund Miscellaneous Schedules: Debt Schedule Detailed Schedule of General Fund Expenditures (Budgetary Basis) – Budget and Actual Detailed Schedule of General Fund Revenues (Budgetary Basis) – Budget and Actual Schedule of Capital Project Fund Project Expenditures (Budgetary Basis) – Budget and Actual Local Highway Finance Report STATISTICAL SECTION Net Position by Component Changes in Net Position Changes in Fund Balances, Governmental Funds Fund Balances, Governmental Funds Tax Revenues by Source, Governmental Funds Assessed Value and Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Taxpayers Property Tax Levies and Collections Ratios of Outstanding Debt by Type Page 57 58-59 60-61 62 63 64 65 66 67 68 70-71 72-73 76-77 79 80-81 82-84 86-87 88-89 92-93 94-97 98-99 100 101 102 103 104 105 106 iii STATISTICAL SECTION (continued) Direct and Overlapping Governmental Activities Debt Ratio of General Bonded Debt Outstanding and Legal Debt Margin Demographic and Economic Statistics Principal Employers Commercial and Residential Construction Full-time Equivalent Employees by Function / Program Operating Indicators by Function / Program Page 107 108-109 110 111 112 113 114-115 Letter of Transmittal Town of Avon, Colorado May 23, 2019 v Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town of Avon’s MD&A can be found immediately following the report of the independent auditors. Profile of the Town The Town of Avon was incorporated in 1978 and is located in Eagle County, eight miles west of the Town of Vail and seventeen miles east of the Town of Eagle. The Town sits north of U.S. Highway 6, directly adjacent to the Beaver Creek Resort and is bisected by Interstate Highway 70 from east to west. The primary transportation route to and from Avon is I-70. Aviation services and transportation are available at the Eagle County Airport, 24 miles west of the Town. The Town provides bus transportation services within the Town and offers, in funding partnership with the Beaver Creek Resort Company, a high-speed gondola that provides direct access to Beaver Creek Resort. Avon is also served by the Eagle County Regional Transit Authority which provides bus service throughout Eagle County. Eagle County encompasses approximately 1,694 square miles and spans from the summit of Vail Pass to Glenwood Canyon. Approximately 80% of Eagle County’s land is public – comprised of National Forests, wilderness areas, Bureau of Land Management properties, and state and local public lands. The Town of Avon currently encompasses approximately 8¼ square miles. The 2010 Census reported a population of 6,447. This figure represents the permanent resident population. Total population increases significantly during the winter tourist ski season. The Town operates under the council/manager form of government. Policy-making and legislative authority are vested in the Town Council, which consists of a mayor and a six-member council. The Town Council is responsible, among other things, for passing ordinances, adopting the budget, and appointing a Town Manager, Town Attorney, Town Prosecutor and Municipal Judge. The Town Manager is responsible for carrying out the policies and ordinances of the Council, overseeing the day-to-day operations of the Town, and for appointing the heads of the Town’s departments. The Council is elected on a non-partisan basis. Council members are elected to four- year staggered terms with four council members elected in November, 2018, and the remaining three to be elected in November, 2020. The mayor and mayor pro-tem are elected from amongst the elected council members by a majority vote. The mayor presides at meetings of council and shall not vote until all other Council members present who are eligible to vote have had reasonable opportunity to vote. The affirmative concurring vote of four (4) Council members is required for the adoption of an ordinance, resolution, order for appropriation, approval of a contract or approval of an intergovernmental agreement. Letter of Transmittal Town of Avon, Colorado May 23, 2019 vi The Town is a home-rule community empowered to levy a property tax on the assessed value of real property located within the Town. The Town collects a 4% sales tax on all retail sales, and a 4% accommodations tax on the lease or rental of hotel rooms, condominium units and other accommodations within the Town. Beginning January 1, 2019 with voter approval the Town began levying a $3 per pack excise tax on the sale of cigarettes and a 40% tax on other nicotine and tobacco products. The Town also collects a 2% real estate transfer tax on all sales of real property located within the Town. The Town has the power by state statute to extend its corporate limits by annexation, which is done periodically when deemed appropriate by the Town Council. The Town provides a full range of municipal services including general administrative services; community planning and zoning and building permitting and inspection services; municipal law enforcement; public works including management and maintenance of Town parks and landscaping, Nottingham Lake, bridges, streets and roads, trails, buildings, facilities and infrastructure; operation and management of the Avon Recreation Center and other youth, adult and senior recreation programs; and, special events and cultural activities. The annual budget serves as the foundation for the Town of Avon’s financial planning and control. No later than October 15th, the Town Manager submits to the Mayor and Town Council a proposed budget for the calendar year commencing the following January 1st. The budget is prepared by fund, department, program and project and includes information on the prior year, current estimates and requested appropriations and estimated revenues for the upcoming year. The Town Council holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Town Council must adopt the budget by resolution prior to December 15th. Once adopted, the Town Council may at any time, by resolution, amend the budget. In addition, the Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department. A department is defined by the Town as a distinct, principal or specialized division (e.g. the department of public works). Expenditures may not legally exceed budgeted appropriations at the fund level. Budget to actual comparison are provided in this report for all funds and are presented at a lower-than-required level of control to facilitate detailed financial analysis. Budgetary comparisons for the Town’s General Fund and its major special revenue fund, the Avon Urban Renewal Authority, are presented as required supplemental information in this report. Budget to actual comparisons for all other Town funds are included as other supplemental information in this report. Letter of Transmittal Town of Avon, Colorado May 23, 2019 vii Factors Affecting Financial Condition The information presented in the financial statements is best understood when considered from a broader perspective rather than just the specific environment in which the Town operates. Local Economy. Year-round tourism and winter recreation-related businesses account for a significant portion of the employment and earned income of area residents. Skier and snowboarder visits at Vail and Beaver Creek Resort account for almost 20% of the total such visits in Colorado. Both resorts are perennially ranked among the top ten ski resorts in the country. In addition to skiing and associated winter-time activities, the area promotes a number of summer activities. The Town of Avon sponsors numerous special events throughout the year to area residents and visitors including Avon's Salute to the USA - a 4th of July fireworks display typically held on July 3rd, and Avon LIVE!, a free Wednesday evening live music series; multiple sporting events such as the annual Triple Bypass Bicycle Tour and the XTERRA triathlon; and family-friendly activities like the Avon Easter Egg Hunt. Avon’s Whitewater Park, with three distinct water features, is open all summer for rafters and kayakers to enjoy. The West Avon Preserve offers more than 11 miles of mountain bike trails accessible from the Town's paved bike paths with a variety of terrain for all ability levels. Offering several championship golf courses, Eagle County has earned a rating by Golf Digest Magazine as one of the top 40 golf communities in which to live. Other summer activities include hiking, horseback riding, bicycling, kayaking and rafting, as well as other recreational sports. Property Values. Property tax, which is based on assessed property values and a mill rate, represents approximately thirty percent of the Town’s total tax revenues. Assessed values are dependent upon real property growth and market values of property, along with assessment ratios established by the State legislature. In Avon, real property assessed values increased by 1.96 percent in 2018 which will result in an increase of approximately $37,949 annually in general fund revenues for basic municipal services. Strategic Plan Strategic Planning. Town Council updated and approved its 2019 Town of Avon Strategic Plan on October 23, 2018. The 2019 budget utilizes a priority-based budget approach for using a strategic decision-making process in funding programs and services to best ensure effective use of the Town’s limited resources. This process is intended to evolve over time to provide more useful information as to the relative importance of individual programs and services which can then be prioritized within and across departments. This budget approach requires budget narratives which Letter of Transmittal Town of Avon, Colorado May 23, 2019 viii describe discrete and specific activities and/or operations for each Town fund and program. Each operation is then quantified in terms of estimated personnel and nonpersonnel costs providing a total cost for the operation. Current Initiatives Avon’s strategic plan recognizes the importance of vibrancy and activity within the Town and states that it will be supported by partnering with existing special events and attracting an array of new and diverse cultural, educational and recreational events to Avon which meet the Town’s brand and are in concert with the values of our community. The 2019 budget has been developed to address priorities identified in the Strategic Plan with major emphasis on the following: • Implement the development strategies identified within the adopted Town of Avon Town-Owned Properties Plan for seven sites including Tract G, Wildridge Fire House, Swift Gulch, the Village at Avon’s “Park Site,” “School Site” (Lot E), Public Works Site (Lot 5), and the Wildwood Properties. • Meet the Comprehensive Plan Housing goals to 1) Achieve a diverse range of housing densities, styles and types, including rental and for sale, to serve all segments of the population; and 2) Coordinate with neighboring communities to provide an attainable housing program that incorporates both rental and ownership opportunities, which are affordable for local working families. • Meet the goals and objectives of the Avon Community Housing Plan. • Invest in Multi-modal Improvements prioritizing walkability and bicycle use on streets, with transit, parking and wayfinding. • Implement the priorities from the 2016 Town of Avon Climate Action Plan Implementation Schedule, adopted on March 28, 2017. • Proactively ensure trees on public and private property do not host and spread viruses; remove dead trees with a well-developed landscape program. • Develop a comprehensive Fire Mitigation Plan for Town-owned properties and work with the Eagle River Fire Protection District on planning and implementing an emergency egress for the Wildridge community. • Continue to solicit, develop and fund, in partnership with qualified producers, a diverse program of vibrant arts, educational, cultural and recreational offerings at the Avon Performance Pavilion and Main Street Mall. • Implement the adopted Avon Recreational Trails Plan as prioritized and adopted by the Avon Town Council. • Implement the action plan to pursue a Colorado Creative District designation. Capital Improvement Projects. The Town updates its capital improvements long-range plan annually. Several improvement projects are approved for 2019 that have been in the planning and design stage for several years. Anticipated projects include phase two of the Beaver x xii THIS PAGE INTENTIONALLY LEFT BLANK McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 1 M & A INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Town Council Town of Avon, Colorado Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund,and the aggregate remaining fund information of Town of Avon, Colorado, Colorado (the “Town”), as of and for the year ended December 31, 2018, and the related noted to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Town’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of Town of Avon, Colorado, Colorado as of December 31, 2018, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis on pages 3-16 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Town Council Town of Avon, Colorado 2 Other Matters (continued) The budgetary comparison information on pages 53-55 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s financial statements taken as a whole. The introductory section, combining fund financial statements,individual fund budgetary information, the Debt Schedule, the Local Highway Finance Report, and the statistical section listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the Town’s financial statements. The combining fund financial statements, the individual fund budgetary information,the Debt Schedule, detailed budgetary schedules and the Local Highway Finance Report on pages 57-89 are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Additionally, the Schedule of Expenditures of Federal Awards included in the Single Audit section is presented for the purpose of additional analysis, as required by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform 'Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "Uniform Guidance"),and is not a required part of the Town’s financial statements. Such information has been subjected to the auditing procedures applied audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 16, 2019 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance. McMahan and Associates, L.L.C. Avon, Colorado May 16, 2019 3 Management’s Discussion and Analysis As management of the Town of Avon, we offer readers of the Town of Avon’s financial statements this narrative overview and analysis of the financial activities of the Town of Avon for the fiscal year ended December 31, 2018. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. Financial Highlights • The assets of the Town exceeded its liabilities and deferred inflows at the close of its fiscal year ended December 31, 2018 by $94,990,691 (net position). Of this amount, $21,317,840 is unrestricted and may be used to meet the Town’s ongoing obligations to citizens and creditors in accordance with the Town’s fund designation and fiscal policies as more fully described below. • The Town’s total net position decreased by $314,695. • As of the close of the fiscal year, the Town’s governmental funds reported combined ending fund balances of $16,336,025, a decrease of $3,464,649 from the prior year. Approximately 34.3 percent of this total amount, $5,611,041, is available for spending at the Town’s discretion (unassigned fund balance). • The unassigned fund balance for the General Fund was $5,611,041, or 33.7 percent of total General Fund expenditures and other financing uses. This represents a $485,236 increase, or 9.5 percent, from the prior year. • The Town of Avon’s long-term liabilities decreased by a net $1,317,596 during the current fiscal year. Regular principal payments were made on bonded debt of $1,351,079 and capital leases of $228,994. A new capital lease of $258,258 was issued. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Town of Avon’s basic financial statements. The Town’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Town of Avon’s finances, in a manner similar to a private sector business. The statement of net position presents information on all of the Town of Avon’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or 4 decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The statement of activities presents information showing how the Town’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused compensated absences). Both of the government-wide financial statements distinguish functions of the Town of Avon that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town of Avon include general government, community development, public safety, public works and utilities, and recreation and culture. The business-type activities of the Town include mobility and fleet maintenance operations. The government-wide financial statements include not only the Town of Avon itself (known as the primary government), but also the Avon Urban Renewal Authority, a legally separate entity, which was established in August 2007 to undertake urban renewal plans and projects with the Town. All members of the governing body are Town Council members. For financial reporting purposes, AURA is blended into the Town’s financial statements and is reported as a major fund in the basic financial statements. The government-wide financial statements can be found on pages 17-19 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Avon, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflow and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Town’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 5 The Town of Avon maintains nine individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Avon Urban Renewal Authority Fund, Debt Service Fund and Capital Projects Fund, all of which are considered to be major funds. Data from the other five nonmajor governmental funds (Water Fund, Community Enhancement Fund, Affordable Housing Fund, Exterior Energy Offset Fund, and Disposable Paper Bag Fee Fund) are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 20-23 of this report. Proprietary funds. The Town of Avon maintains two different types of proprietary funds. Enterprise funds are used to report the same function presented as business-type activities in the government-wide financial statements. The Town of Avon uses enterprise funds to account for its mobility operations and its fleet maintenance operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Town’s various functions. The Town of Avon uses an internal service fund to account for the rental of vehicles and equipment to Town departments for the accumulation of funds for future replacement. Because this service predominately benefits governmental rather than business-type functions, it has been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the mobility fund and the fleet maintenance fund operations. Separate information is also provided for the Town’s internal service fund. The basic proprietary fund financial statements can be found on pages 24-27 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 28-52 of this report. Required Supplemental Information. In addition to the basic financial statements and accompanying notes, this report also presents certain other required supplemental information. The Town of Avon adopts an annual appropriated budget for its General Fund and major special revenue fund. Budgetary comparison statements have been provided for the General Fund and the Avon Urban Renewal Authority Fund to demonstrate compliance with these budgets and can be found on pages 53-54 of this report. Other Supplemental Information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented under other supplemental information immediately following the required supplemental information. Individual fund statements and schedules and other miscellaneous schedules can also be found in this section on pages 57-89 of this report. 6 Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Town of Avon, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $94,990,691 as of December 31, 2018. The largest portion of the Town’s net position (74.7%) reflects its investment in capital assets (e.g. land, buildings, machinery and equipment, and infrastructure), net of any related debt used to acquire those assets that is still outstanding. The Town uses these assets to provide services to citizens, consequently, these assets are not available for future spending. Although the Town’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the Town’s net position (2.8%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position (22.5%) may be used to meet the Town’s ongoing obligations to citizens and creditors. Condensed Net Position Governmental Activities Business-type Activities Total Government 2018 2017 2018 2017 2018 2017 Current and Other Assets Restricted Assets Capital Assets, net Total Assets $ 25,422,136 2,076,002 80,019,220 107,517,358 $ 25,384,703 4,879,406 77,452,494 107,716,603 $ 961,503 - 13,490,714 14,452,217 $ 958,937 - 13,990,735 14,949,672 $ 26,383,639 2,076,002 93,509,934 121,969,575 $ 26,343,640 4,879,406 91,443,229 122,666,275 Other Liabilities Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources 2,450,229 19,735,961 22,186,190 1,871,006 1,598,588 21,112,349 22,710,937 1,835,120 202,275 2,672,907 2,875,182 46,506 153,863 2,614,114 2,767,977 46,855 2,652,504 22,408,868 25,061,372 1,917,512 1,752,451 23,726,463 25,478,914 1,881,975 Net Position: Net Investment in Capital Assets Restricted Unrestricted Total Net Position 60,092,867 2,702,077 20,665,218 $ 83,460,162 56,693,531 6,147,917 20,329,098 $ 83,170,546 10,877,907 - 652622 $ 11,530,529 11,424,412 - 710,428 $ 12,134,840 70,970,774 2,702,077 21,317,840 $ 94,990,691 68,117,943 6,147,917 21,039,526 $ 95,305,386 Analysis of the Town’s Operations Overall, the Town’s net position decreased by $314,695 for 2018. Governmental activities increased net position by $289,616, while business-type activities decreased net position by $604,311. The largest contributors to the overall decrease was the spend-down of previous bond proceeds and fund balances for capital improvement projects, including the tenant finish construction of new Avon Town Hall and the West Beaver Creek Blvd. street rebuild. Depreciation on the Avon Regional Transportation Facility accounted for most of that fund's decrease in net position. 7 Change in Net Position Governmental Activities Business-type Activities Total Government 2018 2017 2018 2017 2018 2017 REVENUES Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Taxes: Property Taxes Real Estate Transfer Tax Sales and Accommodation Taxes Other Taxes Unrestricted Investment Earnings Unrestricted Grants & Contributions Miscellaneous Total Revenues $ 2,453,822 75,430 491,600 3,260,557 3,621,125 10,595,905 641,144 398,998 932,146 772,766 23,243,493 $ 2,561,842 84,761 31,237 2,876,177 4,411,530 9,437,658 1,385,171 178,997 913,784 589,767 22,470,924 $ 1,564,465 75,000 - 41,566 - - - - - - 1,681,031 $ 1,482,770 - 328,000 40,297 - - - - - - 1,851,067 $ 4,018,287 150,430 491,600 3,302,123 3,621,125 10,595,905 641,144 398,998 932,146 772,766 24,924,524 $ 4,044,612 84,761 359,237 2,916,474 4,411,530 9,437,658 1,385,171 178,997 913,784 589,767 24,321,991 EXPENSES Program Activities: Governmental Activities: General Government Community Development Public Safety Public Works and Utilities Recreation Interest on Long-term Debt Business-type Activities: Mobility Fleet Maintenance Total Expenses 3,661,274 1,454,581 3,983,349 9,448,309 1,978,431 720,441 - - 21,246,385 3,500,101 1,617,329 3,703,871 9,026,700 1,684,492 754,238 - - 20,328,955 - - - - - - 2,272,401 1,720,433 3,992,834 - - - - - - 2,253,558 1,655,774 3,909,332 3,661,274 1,454,581 3,983,349 9,448,309 1,978,431 720,441 2,272,401 1,720,433 25,239,219 3,500,101 1,617,329 3,703,871 9,026,700 1,684,492 754,238 2,253,558 1,655,774 24,238,287 Excess (Deficiency) Before Contributions and Transfers Capital Contributions Transfers Increase (Decrease) in Net Position Net Position, Beginning of Year Net Position, Ending 1,997,108 - (1,707,492) 289,616 83,170,546 $ 83,460,162 2,141,969 (103,403) (1,750,415) 288,151 88,882,395 $ 83,170,546 (2,311,803) - 1,707,492 (604,311) 12,134,840 $11,530,529 (2,058,265) 103,403 1,750,415 (204,447) 12,339,287 $12,134,840 (314,695) - - (314,695) 95,305,386 $ 94,990,691 83,704 - - 83,704 95,221,692 $ 95,305,386 Expenses and Program Revenues – Governmental Activities $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 $10,000,000 GeneralGovernment Comm Dev Public Safety Public Works andUtilities Recreation Interest on Long-term Debt Expenses Program Revenues 8 Revenues by Source – Governmental Activities Business-type activities. Net position of business-type activities decreased by $614,695 in 2018. The key element of this decrease was depreciation of capital assets held by the Mobility and Fleet Maintenance Enterprise Funds. Expenses and Program Revenues – Business-type Activities Property Taxes14.03% RETT Taxes15.58% Sales and Accommodation Taxes45.59% Other Taxes 2.76% Charges for Services10.56% Investment Earnings1.72% Miscellaneous3.33% Grants2.44% Intergovernmental4.01% $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Mobility Fleet Maintenance Expenses Program Revenues 9 Revenues by Source – Business-type Activities Financial Analysis of the Town’s Funds The following schedule presents a summary of governmental fund revenues for the year ended December 31, 2018 and the amount and percentage of increases and decreases in relation to the prior year. Revenues 2018 Amount Percent of Total 2017 Amount Amount of Increase (Decrease) Percent Increase (Decrease) Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Investment Earnings Other Revenues $18,118,731 398,860 1,499,176 1,927,701 52,220 398,998 748,101 78.29% 1.72% 6.48% 8.33% 0.23% 1.72% 3.23% $18,148,536 374,311 1,029,782 2,005,812 94,311 178,997 664,037 $ (29,805) 24,549 469,394 (78,111) (42,091) 220,001 84,064 (0.16%) 6.56% 45.58% (3.89%) (44.63%) 122.91% 12.66% Total $23,143,787 100.00% $22,495,786 $ 648,001 Total tax collections decreased by $29,805 from the prior year. Property taxes increased by $93,086 due to an increase in assessed values. The general operating mill rate for the Town remained the same at 8.956 mills. Net assessed values increased by 5.6% or $10,921,350. Property tax increment revenues from the Avon Urban Renewal Authority increased by $292,869 from the prior year also due to the increase in assessed values. Sales taxes increased by $374,366 or 4.6% from the previous year while accommodations taxes were essentially flat Charges for Services 45.60% Operating Grants 2.19%Property Taxes 1.21% Transfers In 51.01% 10 with an increase of $370. The Village at Avon retail sales fees (classified as a tax) increased by $21,744. The Town collects a 2% tax from all sales of real property within the Town. These revenues are dedicated solely for capital improvement projects. Real estate transfer tax collections decreased by $827,541 or 18.6%, from $4,448,666 in 2017 to $3,621,125 in 2018. Real estate taxes can be quite volatile with the five-year average at $3,540,247. License and permit revenues increased by $24,549 from the previous year. Construction permit values increased $4,434,517 in total from the prior year with commercial permits valued at $37,542,440 and residential construction valued at $15,120,198. Building permit fees, business licenses and contractors licenses all increased from the prior year. Intergovernmental revenues increased in 2018 by $469,394. State and County shared revenues increased by $58,362. Capital project grants increased by $420,000 due to grants received from GOCO ($350,000) for a new Destination Jump Splash Learn playground, and from the Colorado Health Foundation ($140,000) for a fitness court. Charges for services decreased $78,111 due primarily to the fact that the Town did not put on a Town-sponsored ticketed concert in 2018, which raised $87,675 the prior year. Investment earnings increased in 2018 by $220,001 due to higher yields offered by investments in U.S Government Treasury and Agency securities and by the Colotrust local government investment pool that the Town utilizes. In addition, as the yield curve began to flatten out the Town was able to increase the weighted-average maturity of its investments. The following schedule presents a summary of governmental fund expenditures for the year ended December 31, 2018 and the amount and percentage of increases and decreases in relation to the prior year. Expenditures 2018 Amount Percent of Total 2017 Amount Amount of Increase (Decrease) Percent Increase (Decrease) Current: General Government Community Development Public Safety Public Works and Utilities Parks and Recreation Capital Improvements Debt Service: Principal Interest Bond Issuance Costs Fiscal Charges $ 3,636,761 1,342,798 3,690,530 4,310,596 1,585,571 8,449,771 1,371,210 666,120 - 63,337 14.48% 5.35% 14.70% 17.16% 6.31% 33.64% 5.46% 2.65% 0.00% 0.25% $ 3,379,282 1,505,073 3,416,991 4,318,222 1,436,483 6,721,147 1,239,743 746,385 81,625 41,162 $ 257,479 (162,275) 273,539 (7,626) 149,088 1,728,624 131,467 (80,265) (81,625) 22,175 7.62% (10.78%) 8.00% (0.18%) 10.38% 25.72% 10.60% (10.75%) (100.00%) 53.87% Total $25,116,694 100.00% $22,886,113 $ 2,230,581 Overall, total governmental fund expenditures decreased by $22,886,113 in 2018. This was largely due to an increase in the area of capital improvements along with small increases in operating costs within departmental budgets. One major capital improvement project was 11 completed during the 2018 year - New Town Hall improvements - with 2018 expenditures of $4,437,428 and total project expenditures of $4,716,259. Another major project still in progress at December 31, 2018 is the East and West Beaver Creek Blvd. Street Rebuild project with 2018 expenditures of $2,314,992, which represents 57 percent of the total project budget of $4,025,943. Other smaller projects completed in 2018 included the Destination Jump Splash Learn playground ($422,230), fiber optics from the Public Safety Facility to New Town Hall ($58,710), completion of the Eaglebend Dr. and Nottingham Rd. repaving project ($304,437), and the Hahnewald Barn predesign/feasibility study ($106,015). Departmental operating expenditures remained stable with increases due mainly to staffing additions, continuation of the Town’s salary step program, and small increases in group health insurance and commodities. At the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $16,336,025, a decrease of $3,464,649 from the prior year. Of this total, $2,672,077 is restricted due to external limitations on its use, such as by debt covenants, legal restrictions, or intention of grantors, donors or trustees. A total of $8,052,907 has been committed or assigned meaning there are limitations resulting from its intended use, such as construction of capital assets, affordable housing, and for other purposes. The remaining $5,611,041 is unassigned and can be used for any lawful purpose. General Fund. The General Fund is the chief operating fund of the Town. At the end of the current fiscal year, unassigned fund balance of the General Fund is $5,611,041, while total fund balance is $6,304,042. As a measure of the General Fund’s liquidity, it is useful to compare the unassigned fund balance and total fund balance to total fund expenditures and other financing sources. Unassigned fund balance represents 33.7% of total fund expenditures and other financing uses, while total fund balance represents 37.8% of that same amount. The fund balance of the General Fund increased by $489,451, or 8.4%, in 2018. This increase is due largely to an increase in tax revenues and investment earnings and less than expected departmental expenditures. The fund balance of the General Fund represents 36.5% of 2019 General Fund appropriations or the equivalent of approximately 4.4 months of operations. The Town has felt it necessary to retain this level of fund balance because of its heavy reliance on sales tax revenues. The Town’s position as a resort community also places a heavy reliance upon several other factors including weather, the national economy, and tourism in general. The Town’s fund balance provides the resources necessary to be more adaptable to the short-term financial environment and limits the need for capital financing. Avon Urban Renewal Fund. At the end of the current fiscal year, the Avon Urban Renewal Fund had an ending fund balance of $473,959. Of this amount, $628,240 is restricted as a bond reserve and there is a deficit $154,281 restricted for urban renewal projects. The fund transferred $1,420,000 to the Capital Projects Fund for completion of the New Town Hall project. Fund balance decreased by $883,492 in 2018, due to this transfer along with required debt service payments exceeding property tax increment revenues. 12 Debt Service Fund. The Debt Service Fund has a fund balance at the end of the fiscal year of $534,816, all of which is restricted for the payment of debt service. Capital Projects Fund. The Capitals Project Fund has an ending fund balance at the end of the fiscal year of $7,940,477. Restricted fund balances represent escrowed monies for future asphalt repairs pursuant to a lawsuit settlement in the amount of $702,390. The remaining amount of $7,238,087 is committed entirely to capital improvement projects. Non-major Funds. The aggregate non-major funds have a combined fund balance of $1,082,731. The net increase in fund balance during the current fiscal year in the aggregate non-major funds was $272,304. Four of the five non-major special revenue funds had surplus changes in fund balances. The Water Fund had a deficit change in fund balance of $7,271 resulting from an operating transfer-out to the Capital Projects Fund in the amount of $125,000. General Fund Budgetary Highlights The 2018 budget was guided by the 2017-2019 Town of Avon Strategic Plan, which was updated and approved by the Town Council on July 25, 2017. The 2018 budget has been developed to address priorities identified in the Strategic Plan with major emphasis on the following: • Town of Avon Properties Development Strategies. o Finalize the development strategies for Tract G, Lot 5, and Swift Gulch, including an evaluation of the expansion of the Avon Recreation Center and a parking garage. • Investment in Multi-modal Improvements. o Complete the Beaver Creek Blvd. rebuild/walkability project; o Design the Nottingham, Road / I70 / Avon Road Overpass Improvements o Support Avon Mobility as a key element of a walkable community; o Implement the Zagster bike share program. • Climate Action Plan. o Implement the new paper bag fee; o Incorporate paperless workflows and waste reduction strategies. • Inclusive and Diverse Economic, Educational, Recreational and Cultural Opportunities. o Complete the Destination Jump, Splash, Learn playground, which is funded with a GOCO grant and Community Enhancement funds; o Implement the action plan to pursue a Colorado Creative District designation; o Issue a Community Survey; o Continue to solicit, develop and fund, in partnership with qualified producers, a diverse program of special events; o Continue the Town’s significant investment in special events with several new and returning events for 2018. A number of budget changes are typically made throughout the year and at the Town’s adoption of its final revised budget in December. For the most part these changes are very minor and the increases and decreases are offsetting. The difference between the original budget and the final amended budget resulted in a net decrease of $302,917 in expenditure appropriations and an increase of $648,000 in appropriated transfers-out for the 2018 budget year. Estimated revenues 13 were increased by $389,860 from the original budget and beginning fund balance was decreased by $89,977. Actual revenues exceeded estimates by a total of $191,350. Sales tax revenues ended the year with an increase 4.6% over the prior year. Departmental expenditures ended the year under the final revised budget by a net total of $121,494. Capital Assets and Debt Administration Capital assets. The Town of Avon’s investment in capital assets for its governmental and business-type activities as of December, 31, 2018, amounts to $93,509,934 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, public art, water rights, construction in progress, buildings and building improvements, utility systems, machinery and equipment, and infrastructure (see table below). The total increase in the Town’s investment in capital assets for the current fiscal year was 2.3% (a 3.3% increase for governmental activities and a 3.6% decrease for business-type activities). Major capital assets events during the current fiscal year included the following: • Governmental-type asset additions totaled $14,203,476 in 2018. Business-type additions totaled $232,136. • One major project began the year in construction-in-progress - New Town Hall improvements. During the year ended December 31, 2018, these improvements were completed and capitalized at a total cost of $4,691,928. In 2016, the building and land cost for New Town Hall was capitalized in the amount of $1,504,751. Another major Governmental-type capital asset added during the year was the Destination Jump Splash Learn playground ($743,616). • Significant projects remaining in construction in progress at the end of the year include the East and West Beaver Creek Blvd. Street Rebuild project with 2018 expenditures of $2,314,992, which represents 57 percent of the total project budget of $4,025,943. • In Business-type activities, a new tire machine in the amount of $16,386 was purchased for the Fleet Maintenance Fund. • In the Equipment Replacement Fund a total of $2,008,041 in equipment was capitalized including the New Town Hall HVAC system and elevator ($750,442), a new vehicle for the building inspector ($26,784), 3 police patrol vehicles ($150,573), a police volunteer vehicle ($34,492), a van for the recreation department ($29,500), a street sweeper ($242,228) plow truck ($275,614) and mini excavator ($47,498) for public works, an electrician's lift truck ($80,204), various IT equipment for the Town's network ($71,655), security system and audio/visual equipment for New Town Hall ($247,413). 14 Town of Avon’s Capital Assets (net of depreciation) Governmental Activities Business-type Activities Total 2018 2017 2018 2017 2018 2017 Land Public Art Water Rights Constr. in Prog. Buildings Utilities Mach. & Equip. Infrastructure $ 11,640,671 1,361,400 1,792,959 2,767,425 18,985,693 3,080,214 2,666,796 37,724,062 $ 11,626,736 1,361,400 1,792,959 1,539,297 14,788,183 3,127,457 2,613,989 40,602,473 $ 411,834 - - 215,750 11,262,554 - 1,600,576 - $ 411,834 - - - 11,658,613 - 1,920,288 - $12,052,505 1,361,400 1,792,959 2,983,175 30,248,247 3,080,214 4,267,372 37,724,062 $12,000,562 1,361,400 1,792,959 2,469,920 22,541,076 3,245,234 3,843,876 43,688,211 Total $80,019,220 $77,452,494 $13,490,714 $13,990,735 $93,509,934 $90,943,238 Additional information on the Town of Avon’s capital assets can be found in Note 4 on pages 40-41 of this report. Long-term debt. At the end of the current fiscal year, the Town of Avon had total long-term debt outstanding in the amount of $21,014,283. Certificates of Participation which evidence assignments of proportionate interests in the right to receive payments pursuant to annually renewable lease agreements total $14,140,000. The remainder of the Town’s debt, $8,225,362, represents bonds secured solely by specified revenue sources (i.e. revenue bonds). Town of Avon’s Outstanding Debt Governmental Activities Business-type Activities Total 2018 2017 2018 2017 2018 2017 Revenue Bonds Certificates of Participation $ 7,649,283 11,045,000 $ 8,225,362 11,675,000 $ - 2,320,000 $ - 2,465,000 $ 7,649,283 13,365,000 $ 8,225,362 14,140,000 Total $18,694,283 $19,900,362 $ 2,320,000 $ 2,465,000 $21,014,283 $22,365,362 The Town of Avon’s long-term debt decreased by a net amount of $1,351,079 during the current fiscal year. No new debt was issued in 2018 and all regular principal payments totaling $1,351,079 were made on outstanding bonded debt. The Avon Town Charter limits the amount of general obligation debt the Town may issue to 25% of assessed valuation of all taxable property within the Town, or $15 million, whichever is greater. The current legal debt margin for the Town is $51,225,982. The Town has no outstanding general obligation bonds outstanding as of December 31, 2018. In addition, the Town’s total debt per capita is $3,314. Additional information on the Town’s long-term debt can be found in Note 5 on pages 41-47 of this report. 15 Economic Factors and Next Year’s Budget and Rates The 2019 budget is guided by the 2019 Town of Avon Strategic Plan, which was updated and approved by the Town Council on October 23, 2018. The Strategic Plan is updated each year to reflect dynamic change and to present to the Avon community the important work planned by the Town over the next year. The four key outcomes identified in the Strategic Plan are: • Support a strong community, building on strengths as a year-round mountain resort community; • Preserve and enhance the natural environment; • Develop inclusive & diverse economic, educational & cultural opportunities; • Provide a responsive, cutting-edge & effective government 2019 Budget Highlights The 2019 budget has been developed to address priorities identified in the Strategic Plan with major emphasis on the following: • Implement the development strategies identified within the adopted Town of Avon Town- Owned Properties Plan for seven sites including Tract G, Wildridge Fire House, Swift Gulch, the Village at Avon’s “Park Site,” “School Site” (Lot E), Public Works Site (Lot 5), and the Wildwood Properties. • Meet the Comprehensive Plan Housing goals to 1) Achieve a diverse range of housing densities, styles and types, including rental and for sale, to serve all segments of the population; and 2) Coordinate with neighboring communities to provide an attainable housing program that incorporates both rental and ownership opportunities, which are affordable for local working families. • Meet the goals and objectives of the Avon Community Housing Plan. • Invest in Multi-modal Improvements prioritizing walkability and bicycle use on streets, with mobility, parking and wayfinding. • Implement the priorities from the 2016 Town of Avon Climate Action Plan Implementation Schedule, adopted on March 28, 2017. • Proactively ensure trees on public and private property do not host and spread viruses; remove dead trees with a well-developed landscape program. • Develop a comprehensive Fire Mitigation Plan for Town-owned properties. • Work with the Eagle River Fire Protection District on planning and implementing an emergency egress for the Wildridge community. • Continue to solicit, develop and fund, in partnership with qualified producers, a diverse program of vibrant arts, educational, cultural and recreational offerings at the Avon Performance Pavilion and Main Street Mall. • Implement the adopted Avon Recreational Trails Plan as prioritized and adopted by the Avon Town Council. • Construct a connecting trail from the southern terminus of Lake Street to the Eagle River Regional Trail. • Implement the action plan to pursue a Colorado Creative District designation. • Rebuild the Eagle River Whitewater Park. TOWN OF AVON, COLORADO STATEMENT OF NET POSITION DECEMBER 31, 2018 Governmental Business-type Activites Activities Total ASSETS Cash and Cash Equivalents 4,846,852$ 215,958$ 5,062,810$ Investments 12,172,997 - 12,172,997 Receivables 8,302,287 151,687 8,453,974 Internal Balances 100,000 (100,000) - Prepaid Expenses - 194,670 194,670 Inventory - 499,188 499,188 Restricted Assets - Cash and Cash Equivalents 2,076,002 - 2,076,002 Capital Assets, net of accumulated depreciation: Nondepreciable 17,562,455 627,584 18,190,039 Depreciable 62,456,765 12,863,130 75,319,895 Total Assets 107,517,358 14,452,217 121,969,575 LIABILITIES Accounts Payable 579,340 156,373 735,713 Accrued Liabilities 202,503 37,166 239,669 Retainages Payable 127,220 - 127,220 Accrued Interest Payable 51,342 8,736 60,078 Deposits and Reserves 1,481,699 - 1,481,699 Unearned Revenues 8,125 - 8,125 Noncurrent Liabilities: Due Within One Year 1,710,013 250,785 1,960,798 Due In More Than One Year 18,025,948 2,422,122 20,448,070 Total Liabilities 22,186,190 2,875,182 25,061,372 DEFERRED INFLOWS OF RESOURCES Property Tax Revenue 1,871,006 41,597 1,912,603 Gain on Advance Refunding of Debt - 4,909 4,909 Total Deferred Inflows of Resources 1,871,006 46,506 1,917,512 NET POSITION Net Investment in Capital Assets 60,092,867 10,877,907 70,970,774 Restricted For: Emergencies 693,001 - 693,001 Debt Service 1,163,056 - 1,163,056 Capital Improvements 702,390 - 702,390 Urban Renewal (124,281) - (124,281) Purposes of Grantors 267,911 - 267,911 Unrestricted 20,665,218 652,622 21,317,840 Total Net Position 83,460,162$ 11,530,529$ 94,990,691$ The accompanying notes are an integral part of the financial statements. 17 TOWN OF AVON, COLORADO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2018 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental Activities: General Government, Finance and Administration 3,661,274$ 272,153$ -$ -$ Community Development 1,454,581 395,239 - - Public Safety 3,983,349 93,646 75,430 1,600 Public Works and Utilities 9,448,309 233,982 - - Recreation 1,978,431 1,458,802 - 490,000 Interest and Fiscal Charges on Long-term Debt 720,441 - - - Total Governmental Activities 21,246,385 2,453,822 75,430 491,600 Business-type Activities: Transportation 2,272,401 382,523 75,000 - Fleet Maintenance 1,720,433 1,181,942 - - Total Business-type Activities 3,992,834 1,564,465 75,000 - Total Primary Government 25,239,219$ 4,018,287$ 150,430$ 491,600$ General Revenues: Property Taxes Real Estate Transfer Taxes Sales and Accommodation Taxes Other Taxes Unrestricted Investment Earnings Grants and Contributions Not Restricted to Specific Programs Miscellaneous Transfers Total General Revenues and Transfers Increase (Decrease) in Net Position Net Position - Beginning of Year Net Position - End of Year The accompanying notes are an integral part of the financial statements. Program Revenues 18 Governmental Business-type Activities Activities Total (3,389,121)$ -$ (3,389,121)$ (1,059,342) - (1,059,342) (3,812,673) - (3,812,673) (9,214,327) - (9,214,327) (29,629) - (29,629) (720,441) - (720,441) (18,225,533) - (18,225,533) - (1,814,878) (1,814,878) - (538,491) (538,491) - (2,353,369) (2,353,369) (18,225,533) (2,353,369) (20,578,902) 3,260,557 41,566 3,302,123 3,621,125 - 3,621,125 10,595,905 - 10,595,905 641,144 - 641,144 398,998 - 398,998 932,146 - 932,146 772,766 - 772,766 (1,707,492) 1,707,492 - 18,515,149 1,749,058 20,264,207 289,616 (604,311) (314,695) 83,170,546 12,134,840 95,305,386 83,460,162$ 11,530,529$ 94,990,691$ Net (Expense) Revenue and Changes in Net Position 19 TOWN OF AVON, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2018 Avon Urban Debt Capital General Renewal Service Projects Fund Fund Fund Fund ASSETS Cash and Cash Equivalents 143,682$ 14,579$ 16,533$ 410,795$ Investments 5,974,715 - - 6,198,282 Receivables: - Interest 27,856 - - 24,410 - Taxes 3,733,097 - - 244,042 - Accounts 9,797 - - - - Intergovernmental 140,090 31,140 - 350,000 - Employees 13,708 - - - Due from Other Funds 100,000 - - 200,000 Notes Receivable - - - - Restricted Assets - Cash and Cash Equivalents - 628,240 519,533 928,230 Total Assets 10,142,945$ 673,959$ 536,066$ 8,355,759$ LIABILITIES Accounts Payable 278,270$ -$ 1,250$ 288,062$ Accrued Liabilities 201,803 - - - Retainages Payable - - - 127,220 Due to Other Funds - 200,000 - - Deposits and Reserves 1,479,699 - - - Unearned Revenues 8,125 - - - Total Liabilities 1,967,897 200,000 1,250 415,282 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Notes Receivable - - - - Unavailable Revenue - Property Taxes 1,871,006 - - - Total Deferred Inflows of Resources 1,871,006 - - - FUND BALANCES Restricted For: Emergencies 693,001 - - - Urban Renewal - (154,281) - - Water Projects - - - - Community Enhancement - - - - Capital Improvements - - - 702,390 Debt Service - 628,240 534,816 - Committed For: Capital Improvements - - - 7,238,087 Exterior Energy Offset Programs - - - - Waste Reduction Programs - - - - Assigned For: Affordable Housing - - - - Unassigned 5,611,041 - - - Total Fund Balances 6,304,042 473,959 534,816 7,940,477 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 10,142,945$ 673,959$ 536,066$ 8,355,759$ The accompanying notes are an integral part of the financial statements. 20 RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION OF GOVERNMENTAL ACTIVITIES DECEMBER 31, 2018 Other Governmental Funds Total 908,821$ 1,494,410$ Total Governmental Fund Balances 16,336,025$ - 12,172,997 Amounts reported for governmental activities in the - 52,266 Statement of Net Position are different because: - 3,977,139 83,009 92,806 Capital assets used in governmental activities are not financial 105,354 626,584 resources and therefore are not reported as an asset in the - 13,708 governmental funds. - 300,000 - Capital assets 136,023,875 17,475 17,475 - Accumulated depreciation (60,309,502) - 2,076,003 75,714,373 1,114,659$ 20,823,388$ Some liabilities, including bonds, notes and leases payable, and compensated absences are not due and payable in the current period and therefore are not reported as liabilities in the governmental funds. 11,753$ 579,335$ - Tax Increment Revenue Bonds payable (7,649,283) 700 202,503 - Certificates of Participation payable (11,045,000) - 127,220 - Unamortized bond premium (279,659) - 200,000 - Compensated absences payable (360,919) 2,000 1,481,699 (19,334,861) - 8,125 Notes receivable are not available to pay for current period 14,453 2,598,882 expenditures and are deferred in the governmental funds.17,475 Long-term receivables which are not available to pay for current period 17,475 17,475 expenditures and are not reported in the governmental funds.3,522,309 - 1,871,006 Accrued interest payable is recognized for governmental activities 17,475 1,888,481 but is not due and payable in the current period and therefore is not reported as a liability in the governmental funds.(51,342) The internal service fund is used by management to charge the rental - 693,001 cost of certain vehicles and equipment to individual funds. The assets - (154,281) and liabilities of the internal service fund is included in governmental 184,902 184,902 activities in the statement of net position.7,256,183 83,009 83,009 - 702,390 Net Position of Governmental Activities 83,460,162$ - 1,163,056 - 7,238,087 77,044 77,044 21,227 21,227 716,549 716,549 - 5,611,041 1,082,731 16,336,025 1,114,659$ 20,823,388$ 21 TOWN OF AVON, COLORADO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2018 Avon Urban Debt Capital General Renewal Service ProjectsFundFundFundFundRevenues Taxes 13,067,960$ 1,429,646$ -$ 3,621,125$ Licenses and Permits 354,584 - - - Intergovernmental 1,009,176 - - 490,000 Charges for Services 1,662,196 - - - Fines and Forfeitures 52,220 - - - Investment Earnings 282,054 13,436 10,475 92,412 Other Revenues 499,933 - - 39,799 Total Revenues 16,928,123 1,443,082 10,475 4,243,336 Expenditures Current: General Govt., Finance & Administration 3,624,522 3,000 - - Community Development 1,342,798 - - Public Safety 3,690,530 - - - Public Works and Utilities 4,198,368 - - - Recreation 1,585,571 - - - Capital Improvements - - - 8,449,771 Debt Service: Principal - 576,080 630,000 165,130 Interest - 271,907 381,853 12,360 Fiscal Charges - 55,587 7,750 - Total Expenditures 14,441,789 906,574 1,019,603 8,627,261 Excess (Deficiency) of Revenues Over (Under) Expenditures 2,486,334 536,508 (1,009,128) (4,383,925) Other Financing Sources (Uses) Transfers In 233,117 - 1,008,354 2,025,000 Transfers Out (2,230,000) (1,420,000) - (1,241,471) Debt Issuance Proceeds - - - 258,258 Total Other Financing Sources (Uses)(1,996,883) (1,420,000) 1,008,354 1,041,787 Net Change in Fund Balances 489,451 (883,492) (774) (3,342,138) Fund Balances, Beginning of Year 5,814,591 1,357,451 535,590 11,282,615 Fund Balances, End of year 6,304,042$ 473,959$ 534,816$ 7,940,477$ The accompanying notes are an integral part of the financial statements. 22 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2018 Other Net change in fund balances - Total Governmental Funds (3,464,649)$ GovernmentalFunds Total Amounts reported for governmental activities in theStatement of Activities are different because: -$ 18,118,731$ 44,276 398,860 Governmental funds report capital outlays as expenditures. However,- 1,499,176 for governmental activities, those capital outlays other than 265,505 1,927,701 noncapitalizable items are shown in the Statement of Activities and the - 52,220 cost of those assets is allocated over their estimated useful lives and 621 398,998 reported as depreciation expense:208,369 748,101 - Capital outlay 5,989,842 - Depreciation (4,588,418) 518,771 23,143,787 1,401,424 Expenses reported in the Statement of Activities that do not require the use of current financial resources are not reported as expenditures 9,239 3,636,761 in governmental funds. - 1,342,798 - Loss on Disposal of Capital Assets (7,829) - 3,690,530 - Change in compensated absences payable (7,533) 112,228 4,310,596 - Change in accrued interest payable on outstanding bonds (3,695) - 1,585,571 - Amortization of bond premium 12,712 - 8,449,771 (6,345) - 1,371,210 Payment received on affordable housing notes receivable are reported - 666,120 as revenue in the governmental funds, but the repayment reduces - 63,337 notes receivable in the Statement of Net Position (3,085) 121,467 25,116,694 Repayment of bond and lease principal are reported an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position: 397,304 (1,972,907) - Certificates of Participation retirements 630,000 - Tax Increment Revenue Bond principal retirements 576,080 1,206,080 - 3,266,471 (125,000) (5,016,471) The internal service fund is used by management to charge the rental- 258,258 cost of certain vehicles and equipment to individual funds. The decrease in net position of the internal service fund is included in (125,000) (1,491,742) governmental activities.1,156,191 272,304 (3,464,649) Change in Net Positon of Governmental Activities 289,616$ 810,427 19,800,674 1,082,731$ 16,336,025$ 23 TOWN OF AVON, COLORADO STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2018 Governmental Fleet Activities -Mobility Maintenance Internal Fund Fund Totals Service FundASSETS Current Assets: Cash and Cash Equivalents 176,016$ 39,942$ 215,958$ 3,352,441$ Receivables: - Taxes 41,597 - 41,597 - - Accounts 2,039 - 2,039 - - Intergovernmental 17,973 90,078 108,051 - Deferred Expense 194,670 - 194,670 - Due From Other Funds 300,000 - 300,000 - Inventory - 499,188 499,188 - Total Current Assets 732,295 629,208 1,361,503 3,352,441 Noncurrent Assets: Capital Assets: - Land 281,450 130,384 411,834 - - Construction in Progress 215,750 - 215,750 - - Buildings 9,928,323 5,639,287 15,567,610 3,190,641 - Machinery and Equipment 4,355,632 300,503 4,656,135 6,541,106 - Accumulated Depreciation (4,180,007) (3,180,608) (7,360,615) (5,426,900) Total Noncurrent Assets 10,601,148 2,889,566 13,490,714 4,304,847 Total Assets 11,333,443 3,518,774 14,852,217 7,657,288 LIABILITIES Current Liabilities: Accounts Payable 17,118 139,255 156,373 5 Accrued Liabilities 22,885 14,281 37,166 - Accrued Interest Payable - 8,736 8,736 - Compensated Absences Payable 30,407 34,602 65,009 - Due to Other Funds - 400,000 400,000 - Certificates of Participation - Current - 152,496 152,496 - Capital Leases Payable - Current 33,280 - 33,280 89,905 Total Current Liabilities 103,690 749,370 853,060 89,910 Noncurrent Liabilities:Certificates of Participation - 2,197,144 2,197,144 - Capital Leases Payable 224,978 - 224,978 311,195 Total Noncurrent Liabilities 224,978 2,197,144 2,422,122 311,195 Total Liabilities 328,668 2,946,514 3,275,182 401,105 DEFERRED INFLOWS OF RESOURCES Property Tax Revenue 41,597 - 41,597 - Gain on Advance Refunding of Debt - 4,909 4,909 - Total Deferred Inflows of Resources 41,597 4,909 46,506 - NET POSITION Net Investment in Capital Assets 10,342,890 535,017 10,877,907 3,903,747 Unrestricted 620,288 32,334 652,622 3,352,436 Total Net Position 10,963,178$ 567,351$ 11,530,529$ 7,256,183$ The accompanying notes are an integral part of the financial statements. Business-Type Activities - Enterprise Funds 24 TOWN OF AVON, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2018 Governmental Fleet Activities - Mobility Maintenance Internal Fund Fund Totals Service Fund Operating Revenues: Charges for Services 249,185$ 1,181,942$ 1,431,127$ 665,735$ Other Operating Revenues 133,338 - 133,338 27,750 Total Operating Revenues 382,523 1,181,942 1,564,465 693,485 Operating Expenses: Cost of Operations 1,679,044 1,474,096 3,153,140 3,248 Depreciation and Amortization 591,957 140,200 732,157 724,347 Total Operating Expenses 2,271,001 1,614,296 3,885,297 727,595 Operating Income (Loss)(1,888,478) (432,354) (2,320,832) (34,110) Nonoperating Revenues (Expenses): Taxes 41,566 - 41,566 - Operating Grants 75,000 - 75,000 - Gain (Loss) on Disposal of Capital Assets - - - 7,366 Interest Expense (1,400) (106,137) (107,537) - Total Nonoperating Revenues (Expenses)115,166 (106,137) 9,029 7,366 Income (Loss) Before Contributions and Transfers (1,773,312) (538,491) (2,311,803) (26,744) Capital Contributions and Transfers Contributed Capital In (Out)- - - 1,182,935 Transfers In (Out)1,157,492 550,000 1,707,492 - Total Capital Contributions and Transfers 1,157,492 550,000 1,707,492 1,182,935 Change in Net Position (615,820) 11,509 (604,311) 1,156,191 Net Position, Beginning of Year 11,578,998 555,842 12,134,840 6,099,992 Net Position, End of Year 10,963,178$ 567,351$ 11,530,529$ 7,256,183$ The accompanying notes are an integral part of the financial statements. Business-Type Activities - Enterprise Funds 25 TOWN OF AVON, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2018 Governmental Fleet Activities - Mobility Maintenance Internal Fund Fund Totals Service Fund Cash Flows From Operating Activities Cash Received from Customers and Users 233,485$ 692,838$ 926,323$ -$ Cash Received from Interfund Services Provided 46,930 529,815 576,745 665,735 Cash Payments to Suppliers (525,345) (529,052) (1,054,397) (3,269) Cash Payments to Employees (866,891) (802,743) (1,669,634) - Cash Payments for Interfund Services Used (296,674) (67,825) (364,499) - Other Operating Revenues 134,007 - 134,007 27,750 Net Cash Provided by (Used in) Operating Activities (1,274,488) (176,967) (1,451,455) 690,216 Cash Flows From Noncapital Financing Activities Taxes Received 41,566 - 41,566 - Grants Received 75,000 - 75,000 - Net Borrowings (To) From Other Funds 57,238 (57,238) - - Transfers In from Other Funds 1,200,000 550,000 1,750,000 - Net Cash Provided by Noncapital Financing Activities 1,373,804 492,762 1,866,566 - Cash Flows From Capital Financing Activities Acquisition and Construction of Capital Assets - (16,386) (16,386) (898,907) Proceeds from Sales of Capital Assets - - - 26,601 Interest Paid on Long-term Debt (1,400) (109,424) (110,824) - Principal Paid on Long-term Debt (58,821) (150,043) (208,864) - Net Cash Used in Capital Financing Activities (60,221) (275,853) (336,074) (872,306) Net Increase (Decrease) in Cash and Cash Equivalents 39,095 39,942 79,037 (182,090) Cash and Cash Equivalents, Beginning of Year 136,921 - 136,921 3,534,531 Cash and Cash Equivalents, End of Year 176,016$ 39,942$ 215,958$ 3,352,441$ The accompanying notes are an integral part of the financial statements. Business-Type Activities - Enterprise Funds 26 Governmental Fleet Activities - Transit Maintenance Internal Fund Fund Totals Service Fund RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating Income (Loss)(1,888,478)$ (432,354)$ (2,320,832)$ (34,110)$ Adjustments to Reconcile Operating Loss to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization 591,957 140,200 732,157 724,347 Change in Assets and Liabilities: Decrease in Accounts Receivable 265 1,382 1,647 - Decrease in Intergovermental Receivable 31,230 39,329 70,559 - Increase in Deferred Expense (31,387) - (31,387) - Decrease in Inventory - 35,717 35,717 - Increase (Decrease) in Accounts Payable 4,661 37,615 42,276 (21) Increase in Accrued Liabilities 4,800 1,713 6,513 - Increase (Decrease) in Comp. Absences Payable 12,464 (569) 11,895 - Total Adjustments 613,990 255,387 869,377 724,326 Net Cash Provided by (Used in) Operating Activities (1,274,488)$ (176,967)$ (1,451,455)$ 690,216$ NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Noncash Transactions Affecting Financial Position Contributions of Capital Assets from Governmental Activities 215,750$ -$ 215,750$ 1,017,806$ Contributions of Lease Payable from Governmental Activities (258,258) - (258,258) - Capital Assets Disposed - - - (30,360) Principal on Capital Leases Paid from Governmental Activities - - - 165,129 Amortization of Premium and Gain on Advance Refunding of Debt - 2,910 2,910 - (42,508)$ 2,910$ (39,598)$ 1,152,575$ Business-Type Activities - Enterprise Funds 27 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 28 The financial statements of the Town of Avon have been prepared in conformity with generally accepted accounting principles (“GAAP”) as applied to governmental entities. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting board for establishing governmental accounting and financial reporting principles. The following notes are an integral part of the Town’s Comprehensive Annual Financial Report. Note 1. Summary of Significant Accounting Policies A. Financial Reporting Entity Primary Government. The Town of Avon, Colorado, was incorporated as a Town on April 24, 1978. On June 13, 1978, the citizenry voted to become a Home Rule City, as authorized by Article 20 of the Colorado State Constitution. The Town operates under a Council-Manager form of government and provides the following services as authorized by its charter: public safety, highways and streets, culture-recreation, public improvements, community development, planning and zoning, transportation, and general administrative services. As required by generally accepted accounting principles, these financial statements present the Town of Avon (the primary government) and its component unit for which the Town is considered financially accountable. Financial accountability exists if the Town appoints a voting majority of an organization’s governing board and is able to impose its will on the organization, or if the organization provided benefits to, or imposes financial burdens upon the Town. Blended component units, although legally separate entities, are, in substance, part of the Town’s operations, so data from these units are combined with data of the Town. The Town’s blended component unit are – Avon Urban Renewal Authority (AURA) – The AURA is a body corporate duly organized and existing as an urban renewal authority established by the Town of Avon, Colorado pursuant to the Urban Renewal Law of the State of Colorado for undertaking certain urban renewal activities within the Town. The boundaries of the AURA are coterminous with the boundaries of the Town. The bylaws of the AURA provide that the members of the Avon Town Council shall constitute the Commissioners of the AURA. The Mayor of the Town services as Chairman, the Mayor Pro-Tem serves as Vice Chairman, the Town Manager serves as the Executive Director and Secretary, the Finance Director serves as Treasurer, and the Town Clerk serves as the AURA Clerk. For financial reporting purposes, the AURA is blended into the Town’s financial statements and is reported in a single special revenue fund as a blended component unit. A separate budget is adopted for the AURA, however separate financial statements of the AURA are not issued. Avon General Improvement District No. 1 – The Town of Avon General Improvement District No. 1 was organized on August 28, 2007, by adoption of Ordinance No. 07-07. The services to be provided within and for the District include transportation and recreation 29 services and include the property known as Lots 1 and 2 of the final plat of the Chateau St. Claire subdivision, now commonly known as the Ascent. The members of the Avon Town Council constitute the Board of the District. The District levies a property tax to be used for transportation operations. For financial reporting purposes, the District is blended into the Town’s financial statements and is reported in the Mobility enterprise fund as a blended component unit. Separate budgets and financial statements of the District are not adopted or issued. B. Government-wide and Fund Financial Statements Government-wide Financial Statements. The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities) report information on all non- fiduciary activities of the Town (the primary government) and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which primarily rely on fees and charges for support. Generally, interfund activity has been eliminated from the government-wide financial statements except for interfund services provided and used. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or business segment are offset by program revenues and helps identify the extent to which each is self-financing or draws from the general revenues of the Town. Direct expenses are those that are clearly identifiable with a specific function or business segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and, 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund Financial Statements. Fund financial statements report detailed information about the Town with the focus on major funds rather than on reporting funds by type. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and presented in a single column. The internal service fund is presented in a single column on the face of the proprietary fund statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Measurement Focus and Basis of Accounting. The government-wide financial statements have been prepared using the economic resources measurement focus and the accrual basis of accounting. This is the same approach used in the preparation of the proprietary fund financial statements. Revenues are recognized when earned and expenses are recognized when the liability is incurred regardless of the timing of related cash flows. Depreciation is computed and recorded as an operating expense. Expenditures for property, plant and TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 30 equipment are shown as increases in assets and redemption of bonds and notes are recorded as a reduction in liabilities. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue is recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period (60 days). The major sources of revenue which are susceptible to accrual are property taxes, accommodations and sales taxes, and certain intergovernmental revenues. Expenditures generally are recorded when the liability is incurred, as under full accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Financial Statement Presentation – Fund Accounting. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts which are segregated for the purpose of accounting for specific activities. The Town uses funds to report results of operations and financial position, and demonstrate compliance with legal, contractual and regulatory requirements. The Town’s funds are classified into two broad fund categories and six generic fund types for financial reporting purposes: Governmental funds include the general, special revenue, debt service, and capital projects funds. Proprietary funds include enterprise funds and an internal service fund. The Town’s major governmental funds are: • General Fund – This is the Town’s primary operating fund. It is used to account for all activities of the Town not required to be accounted for in some other fund. • Avon Urban Renewal Fund – This fund is used to account for the receipt of tax increment revenues and the activities of redevelopment that are undertaken by the Avon Urban Renewal Authority, including issuing debt and constructing public improvements. • Debt Service Fund – This fund is used to account for the accumulation of resources and payment of principal and interest on the Town’s general obligation and sales tax revenue bonds. • Capital Projects Fund – This fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of all the Town’s enterprise and internal service funds are charges to customers for sales and services. Operating expenses for enterprise and internal 31 service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The Town’s major proprietary funds are: • Mobility Fund – This fund is used to account for the activities involved in operating the Town’s transportation system. • Fleet Maintenance Fund – This fund is used to account for the accumulation and allocation of costs associated with the maintenance of vehicles and rolling stock for the Town and certain other third-party governmental entities. The Town’s only internal service fund is the Equipment Replacement Fund. This fund is used to account for the rental of certain vehicles and equipment to other departments for the accumulation of funds for future replacement. D. Budget Information Budgets are adopted on a basis consistent with generally accepted accounting principles for all funds, except for proprietary funds which are budgeted on the modified accrual basis of accounting. According to the Town’s Charter, all appropriations except for capital projects or special revenue funds lapse at fiscal year-end. However, as a matter of practice, the Town adopts annual budgets for all funds. During the year, changes may be made to budgets by adoption of supplemental amendments by resolution of the Town Council. E. Assets, Liabilities, and Deferred Outflows/Inflows of Resources Cash, Cash Equivalents, and Investments. The Town concentrates the cash resources of its various funds to facilitate the management of cash. The balance in this concentration account is available to meet the Town’s current operating requirements. Cash resources more than current requirements is invested in various interest-bearing securities and disclosed as part of the Town’s investments. Cash and cash equivalents include amounts in demand deposits as well as short-term investments with a maturity date within 3 months of the date acquired by the Town. Town Charter and Colorado State statutes authorize the Town to invest its excess funds in direct U.S. Government treasury and agency securities, bonds and other obligations of states and political subdivisions, corporate bonds, and local government investment pools. Investments are stated at fair value. The change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Investment income is recognized when earned. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 32 Inventories. Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of any governmental fund inventories are recorded as expenditures when consumed rather than when purchased. Restricted Assets. Restricted assets in the amount of $628,240 are reported in the Avon Urban Renewal Fund. This consists of a $628,240 required debt service reserve for purposes of the Authority’s 2013 Tax Increment Revenue Bonds. Restricted assets in the amount of $519,533 are reported in the Debt Service Fund. This amount consists of a $518,362 required debt service reserve, $307 in a base rental fund for the Series 2010 Certificates of Participation, $456 in a base rental fund for the Series 2014B Certificates of Participation. And $406 in a base rental fund for the Series 2016 Certificates of Participation. These reserves are all held in UMB Bank’s trust department. Restricted assets in the amount of $928,230 are reported in the Capital Project Fund. This consists of unspent capital lease proceeds of $43,563 for the installation of solar panels at the Avon Regional Transportation Facility, and an additional $884,667 held in an escrow account with FirstBank for accumulating funds for asphalt overlay in the Village at Avon pursuant to the Town’s lawsuit settlement agreement with Traer Creek Metropolitan District and the developer. When both restricted and unrestricted resources are available for use, it is the Town’s policy to use unrestricted resources first, then restricted, as they are needed. Capital Assets. Capital assets, which include property, plant, equipment, and infrastructure assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. It is the Town’s policy to capitalize expenditures with a cost greater than $5,000 and an estimated useful life of more than one year. All purchased capital assets are stated at cost or estimated historical cost if actual historical records are not available. Donated capital assets and donated works of art and similar items are recorded at acquisition value at the date of contribution. Major outlays for capital improvement projects are capitalized as projects are completed. The Town’s infrastructure consists of streets and roads, bridges, storm drainage, water rights and storage, heat recovery system, irrigation ditches, bike paths, and public parking. The costs of normal maintenance and repair that do not add to the value of the asset or extend the estimated useful life are not capitalized but charged to operations as incurred. Depreciation of property, plant and equipment is computed using the straight-line method over the following estimated useful lives: Buildings 10-50 years Utilities 10-50 years Machinery and Equipment 3-15 years Infrastructure 10-100 years 33 Deferred Inflows of Resources. The government-wide and proprietary funds statement of net position and governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Town has two types of items that qualify for reporting in this category: deferred gain on advance refunding of debt and unavailable revenue. In the government-wide and proprietary funds statement of net position deferred gain on advance refunding of debt is the result of the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the life of the refunding bonds. The other type of item, unavailable revenue, is reported in the government-wide and proprietary fund statement of net position and in the governmental funds balance sheet. The Town reports unavailable revenues from two sources: property tax and notes receivable. Unavailable revenue - notes receivable arises only under a modified accrual basis of accounting and as such is only reported in the governmental funds balance sheet. Unavailable revenue – property taxes is reported in the government-wide and proprietary funds statement of net position and in the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Long-term Obligations. In the government-wide and proprietary fund statement of net position long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which approximates the interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds are reported as debt service expenditures. F. Property Taxes Property taxes are levied by the Town Council. The levy is based on the assessed valuation of property located within the Town as determined by the County Assessor generally as of January 1 of each year. The levy is normally set by December 15 by certification to the County Commissioners. The County Treasurer collects the property taxes during the ensuing calendar year and remits the taxes collected to the Town on a monthly basis. Property taxes are payable in full by April 30, or if in two equal installments, by February 28 and June 15. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are held in November or December. Property taxes, net of TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 34 estimated uncollectible taxes, are recorded as receivable in the year levied and offset to deferred inflows of resources as unavailable revenue since they typically do not meet the availability criterion. G. Compensated Absences It is the Town’s policy to permit employees to accumulate earned but unused personal time off (a combination of vacation and holidays) and sick pay benefits. There is no liability for unpaid accumulated sick leave since the Town’s policy is to not pay for accumulated sick leave when employees separate from service. The liability for compensated absences is recorded as a non-current liability in the government-wide financial statements. The current portion of this debt is estimated based on historical trends. In the fund financial statements, governmental funds reports a compensated liability payable only if it has matured, for example, as a result of employee resignations and retirements, while the proprietary funds report the liability as it is incurred. Within the governmental funds, the General Fund typically is used to liquidate any liabilities for compensated absences. H. Fund Equity The following fund balance classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used: • Nonspendable fund balance – amounts that are not in a spendable form (such as inventory or prepaid charges) or are required to be maintained intact; • Restricted fund balance – amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation; • Committed fund balance – amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority. In Avon’s case this is an ordinance adopted by the Town Council. To be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint; • Assigned fund balance – amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or an official or body to which the governing body delegates the authority; • Unassigned fund balance – amounts that are available for any purpose; positive amounts are reported only in the general fund. The Town establishes (and modifies or rescinds) fund balance commitments by passage of an ordinance. A fund balance commitment is further indicated in the budget document as a designation or commitment of the fund. Assigned fund balance is established by the Town Council through adoption or amendment of the budget as intended for a specific purpose (such as the purchase of capital assets, construction, debt service, or other purposes). 35 When fund balance resources are available for a specific purpose in more than one classification, it is the Town’s policy to use the most restrictive funds first in the following order: restricted, committed, assigned, and unassigned as they are needed. The Town considers all unassigned fund balances to be “reserves” for future operations or capital replacement as defined within Article X, Section 20 of the Constitution of the State of Colorado (see Note 10). I. Statements of Cash Flows For purposes of the statement of cash flows, the Town considers all highly liquid investments with a maturity when purchased of three months or less and all local government investment pools to be cash equivalents. J. Debt Costs Unamortized premiums of $309,299 are reflected in noncurrent liabilities. Premiums are amortized over the remaining lives of the related debt issues using the effective interest method. Note 2. Legal Compliance – Budgets No later than October 15th, the Town Manager submits to the Mayor and Town Council a proposed budget for the calendar year commencing the following January 1st. The budget is prepared by fund, department, program and project and includes information on the prior year, current estimates and requested appropriations and estimated revenues for the upcoming year. The Town Council holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Town Council must adopt the budget by resolution prior to December 15th. Once adopted, the Town Council may at any time, by resolution, amend the budget. In addition, the Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department. A department is defined by the Town as a distinct, principal or specialized division (e.g. the Department of Public Works). Expenditures may not legally exceed budgeted appropriations at the fund level. Budgetary comparisons in the accompanying combined financial statements and in the individual fund statements are presented at a lower-than-required level of control to facilitate detailed financial analysis. The Avon Urban Renewal Fund, Debt Service Fund, and Fleet Maintenance Fund expenditures exceeded budgeted appropriations during 2018. This may be a violation of Colorado budget law. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 36 Note 3. Cash and Investments Cash and investments as of December 31, 2018 are classified in the accompanying financial statements as follows: Cash and Cash Equivalents Investments Restricted Assets - Cash and Cash Equivalents $ 5,062,809 12,172,997 2,076,003 Total $ 19,311,809 Cash and investments as of December 31, 2018 consist of the following: Cash on Hand Demand Deposits Other Deposits with Financial Institutions Local Government Investment Pools Investments $ 4,925 1,071,716 1,447,762 4,614,409 12,172,997 Total $ 19,311,809 Investments Authorized by the Town of Avon Investment Policy The table below identifies the investment types that are authorized for the Town by the Town’s investment policy. The table also identifies certain provision of the Town’s investment policy that address interest rate risk, credit risk, and concentration of credit risk. Authorized Investment Type Maximum Maturity Maximum Percentage Of Portfolio Maximum Investment In One Issuer U.S. Government Treasury Securities U.S. Government Agency Securities Repurchase Agreements Commercial Paper General Obligation Debt Revenue Obligation Debt Local Government Investment Pools 5 years 5 years 180 days 270 days 5 years 5 years N/A None None None 20% None None None None None None 5% None None None Fair Value of Investments The Town measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: • Level 1: Quoted prices for identical investments in active markets; • Level 2: Observable inputs other than quoted market prices; and, • Level 3: Unobservable inputs. 37 At December 31, 2018, the Town had the following recurring fair value measurements: Fair Value Measurements Using Investments Measured at Fair Value Total Level 1 Level 2 Level 3 U.S. Government Treasury Securities Federal Instrumentality Securities $ 2,481,480 9,691,517 $ 2,481,480 9,691,517 $ - - $ - - Total $12,172,997 $12,172,997 $ - $ - Investments Measured at Net Asset Value Total Colotrust $ 4,614,409 Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: • U.S. Government treasury securities, U.S. Government agency securities, and commercial paper: quoted prices for identical securities in markets that are not active; • Corporate and municipal bonds: quoted prices for similar securities in active markets; • Repurchase agreements, negotiable certificates of deposit, and collateralized debt obligations: matrix pricing based on the securities’ relationship to benchmark quoted prices. At December 31, 2018, unrealized losses were $27,395 which reflects changes in the fair market value of investments. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The investment policy of the Town states that, to the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. Unless matched to a specific cash flow requirement, the Town will not invest in securities maturing more than five years from the date of purchase. In addition, the Town shall maintain at least 15% of its total investment portfolio in investments maturing in 120 days or less. At least 10% of the portfolio shall be invested in overnight investments or securities that can be sold to raise cash on one day’s notice. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 38 Information about the sensitivity of the fair values of the Town’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Town’s investments by maturity: Weighted Average Maturity (in Years) U.S. Government Treasury Notes U.S. Government Agency Securities: Federal Home Loan Bank Federal Home Loan Mortgage Corp. Federal National Mortgage Assn. Federal Farm Credit Bank Colotrust $ 2,481,480 4,497,785 499,235 1,987,440 2,707,057 4,614,409 1.65 1.56 1.31 1.71 1.28 NA Total $ 16,787,406 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating, as required by the Town’s investment policy, for investments of the Town as of December 31, 2018. Ratings Standard & Poor’s Investment AAAm AA+ AA+ AA+ AA+ AA+ AA+ Colotrust US Treasury Government National Mortgage Assoc. Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Corporation Concentration of Credit Risk Except for commercial paper investments, the investment policy of the Town contains no limitations on the amount that can be invested in any one issuer. Commercial paper issuers are limited to no more than 5% of the Town’s portfolio. The Town had no investments in commercial paper at December 31, 2018. 39 Investments in any one issuer (other than U.S. Treasury obligations, mutual funds, and local government investment pools) that represent 5% or more of total Town investments are as follows: Issuer Investment Type Reported Amount % of Total Investments Federal Home Loan Bank Federal National Mortgage Assn. Federal Farm Credit Bank Federal Instrumentality Securities Federal Instrumentality Securities Federal Instrumentality Securities $ 4,497,785 1,987,440 2,707,057 26.79% 11.84% 16.12% Custodial Credit Risk Deposits. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the Town would not be able to recover its deposits or would not be able to recover collateral securities that are in the possession of an outside party. The Town’s deposits are entirely covered by federal depository insurance (“FDIC”) or by collateral held under Colorado’s Public Deposit Protection Act (“PDPA”). The FDIC insures the first $250,000 of the Town’s deposits at each financial institution. Deposit balances over $250,000 are collateralized as required by PDPA. The Colorado Public Deposit Protection Act (PDPA) requires that cash be deposited in eligible public depositories and that deposits in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds with the Town being a named participant in the single institution collateral pool. The minimum pledging requirement is 102% of the uninsured deposits. The Colorado State Banking Board verifies the market value at least monthly. Bank assets (usually securities) are required by PDPA to be delivered to a third-party institution for safekeeping and pledged to the Colorado Division of Banking. Based on the above, the Colorado State Auditor has concluded that there is no custodial risk for public deposits collateralized under PDPA. The carrying amount of the Town’s demand deposits was $1,071,716 at year end. Investments. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, the Town would not be able to recover the value of its investment or collateral securities that are in the possession of another party. The Town’s investment policy provides that all investment securities, except certificates of deposit, local government investment pools, and money market funds purchased by the Town shall be settled on a delivery versus payment basis and will be delivered by either book entry or physical delivery and will be held in third-party safekeeping by the Town’s approved custodian bank, its correspondent bank or the Depository Trust Company. An approved Safekeeping Agreement must be executed with each custodian bank prior to utilizing that bank’s safekeeping services. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 40 Local Government Investment Pools Local government investment pools are trusts established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces all State statutes governing the trusts. The trusts value their shares based on a stable net value of $1.00 per share. A designated custodial bank serves as custodian pursuant to a custodian agreement. The custodian acts as safekeeping agent for the trusts’ investment portfolios and provides services as the depository in connection with direct investments and withdrawals. The custodian's internal records segregate investments owned by the trusts. As of December 31, 2018, the Town of Avon held investments in the Colorado Local Government Liquid Asset Trust (Colotrust Plus portfolio). The Plus portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities as well as in certain obligations of U.S. government agencies, highest rated commercial paper and repurchase agreements collateralized by certain obligations of U.S. government agencies. At December 31, 2018, the Town’s investments in Colotrust Plus were 27.5% of the Town’s investment portfolio. Note 4. Capital Assets Capital asset activity for the year ended December 31, 2018 was as follows: Governmental Activities: Beginning Balance Increases Decreases Ending Balance Capital Assets, Not Being Depreciated: Land and Land Improvements Public Art Water Rights Construction in Progress Total Capital Assets, Not Being Depreciated $ 11,626,736 1,361,400 1,792,959 1,539,297 16,320,392 $ 13,935 - - 7,819,159 7,833,094 $ - - - (6,591,031) (6,591,031) $ 11,640,671 1,361,400 1,792,959 2,767,425 17,562,455 Capital Assets, Being Depreciated: Buildings Utilities Machinery and Equipment Infrastructure Total Capital Assets, Being Depreciated 24,614,507 4,575,956 6,324,655 86,463,721 121,978,839 5,186,669 171,419 521,686 795,843 6,675,617 (11,054) - (305,235) (145,000) (461,289) 29,790,122 4,747,375 6,541,106 87,114,564 128,193,167 Less Accumulated Depreciation: Buildings Utilities Machinery and Equipment Infrastructure Total Accumulated Depreciation (9,826,324) (1,448,499) (3,710,666) (45,861,248) (60,846,737) (981,330) (218,662) (438,519) (3,674,254) (5,312,765) 3,225 - 274,875 145,000 423,100 (10,804,429) (1,667,161) (3,874,310) (49,390,502) (65,736,402) Total Capital Assets, Being Depreciated, Net 61,132,102 1,362,852 (38,189) 62,456,765 Governmental Activities Capital Assets, Net $ 77,452,494 $ 9,195,945 $(6,629,220) $ 80,019,220 41 Business-type Activities: Beginning Balance Increases Decreases Ending Balance Capital Assets, Not Being Depreciated: Land Construction in Progress Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated: Buildings Machinery and Equipment Total Capital Assets, Being Depreciated $ 411,834 - 411,834 15,567,610 4,639,749 20,207,359 $ - 215,750 215,750 - 16,386 16,386 $ - - - - - - $ 411,834 215,750 627,584 15,567,610 4,656,135 20,223 745 Less Accumulated Depreciation: Buildings and Facilities Machinery and Equipment Total Accumulated Depreciation (3,908,997) (2,719,461) (6,628,458) (396,059) (336,098) (732,157) - - - (4,305,056) (3,055,559) (7,360,615) Total Capital Assets, Being Depreciated, Net 13,578,901 (715,771) - 12,863,130 Business-type Activities Capital Assets, Net $ 13,990,735 $ (500,021) $ - $ 13,490,714 Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities: General Government Community Development Public Safety Public Works and Utilities, including general infrastructure assets Recreation and Culture $ 156,529 2,555 387,552 4,319,252 446,877 Total Depreciation Expense – Governmental Activities $ 5,312,765 Business-type Activities: Transportation Fleet Maintenance $ 591,957 140,200 Total Depreciation Expense – Business-type Activities $ 732,157 Note 5. Long-term Debt Revenue Bonds and Loans – Avon Urban Renewal Authority. Pursuant to the Urban Renewal Plan adopted for the Town Center West Urban Renewal Project Area (Project Area), generally known as Avon Town Center West, the Avon Urban Renewal Authority issued $25 million in Series 2008 Tax Increment Adjustable Rate Revenue Bonds (Series 2008 Bonds) in February 2008 for financing the cost of constructing traffic, street and pedestrian improvements. In 2009, the Avon Urban Renewal Authority entered into a Series 2009 Variable Rate Loan Agreement (Series 2009 Loan) in the amount of $7,200,000 with Vectra Bank for refinancing the Authority’s Series 2008 Tax Increment Adjustable Rate TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 42 Revenue Bonds. Net proceeds from the Series 2009 Loan, along with unused proceeds and the reserve account balance from the Series 2008 bonds, were used to redeem the Series 2008 bonds. In 2013, the Avon Urban Renewal Authority issued Series 2013 Tax Increment Revenue Bonds to refinance outstanding obligations of the Authority and to finance certain capital improvements. The 2013 Bonds have a reserve requirement of $628,240. If, at any time, the balance of the Reserve Account is less than the Reserve Requirement the Town Council has agreed to consider but is not obligated to, replenish the Reserve Account balance to the Reserve Requirement. The Bonds shall be subject to optional redemption on any interest payment date with a redemption price of the Bonds not exceeding 101% of the principal amount so redeemed. In 2017, the Avon Urban Renewal Authority issued Series 2017 Tax Increment Revenue Bonds to finance tenant improvements related to the future occupancy of a new Town Hall. The 2013 and 2017 Bonds constitute a pledge of, and an irrevocable first lien (but not an exclusive first lien), on all pledged revenues. Pledged revenues include the portion of the ad valorem proprietary taxes produced by the levies at the rates fixed each year by the governing bodies of the various taxing jurisdictions within the Urban Renewal Project Area. The levies are assessed upon that portion of the valuation for assessment of all taxable property in excess of a defined property tax base amount. The pledged revenues are reduced by a) any County collection fee (b) tax increment revenues required to be remitted by the Authority to the Confluence Metropolitan District pursuant to the Avon Station/Confluence IGA; and (c) ad valorem property taxes produced by a mill levy of any special district formed after May 28, 2009. Pledged revenues also include all amounts appropriated to the Authority to replenish reserves along with applicable investment earnings and any other legally available moneys which the Town determines, in its sole discretion, to deposit in the Bond Account. Revenue bonds and loans outstanding at December 31, 2018, are as follows: Purpose Interest Rates Amount General Government – Avon Urban Renewal Authority 2.9% - 3.52% $ 7,649,283 Annual debt service requirements to maturity for revenue bonds outstanding at December 31, 2018, are as follows: Year Ending Avon Urban Renewal Authority December 31 Principal Interest 2019 2020 2021 2022 2023 2024-2028 2029-2031 $ 595,998 616,063 636,278 656,647 677,175 3,759,702 707,420 $ 252,557 232,532 211,829 190,444 168,371 483,398 36,828 Total $ 7,649,283 $ 1,575,959 43 Certificates of Participation. In 1998, the Town of Avon Finance Authority issued Certificates of Participation to finance the cost of constructing a fleet maintenance facility. The Certificates evidence assignments of proportionate interest in rights to receive payments pursuant to an annually terminable Lease Purchase and Sublease Agreement, dated as of July 1, 1998, between the Authority as lessor, and the Town of Avon as lessee. In 1999, the fleet maintenance facility was completed and the proceeds from the Certificates that were used directly in the construction of the fleet maintenance facility in the amount of $5,141,250 (approximately 75%) were capitalized in the Fleet Maintenance Fund. On November 16, 2010, the Town issued $6,680,000 of Series 2010 Certificates of Participation with interest rates of 2% to 5%. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of November 1, 2010, between UMB Bank, solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. These Certificates were used to refund the outstanding 1998 Certificates of Participation in the aggregate principal amount of $3,990,000. The refunding resulted in an economic gain of $43,298 with a cash flow savings of $904,642. The remaining funds from the 2010 Certificates were used as matching funds for the construction of the Avon Regional Transit Facility, which was completed and placed into service in October 2013. On January 14, 2015, the Town issued $3,800,000 of Series 2014B Certificates of Participation with an interest rate of 3.03% to finance the cost of street improvements. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of January 14, 2015, between UMB Bank, N.A., solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. On May 3, 2016, the Town held a special election concerning the financing for a joint public safety facility in partnership with the Eagle River Fire Protection District. The election was successful and on August 2, 2016, the Town issued $6,300,000 of Series 2016 Certificates of Participation with interest rates of 2% to 4%. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of August 2, 2016, between UMB Bank, N.A., solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. Certificates of Participation outstanding at December 31, 2018, are as follows: Purpose Interest Rates Amount General Government – Refunding and Capital 2.0% - 5.0% $13,365,000 Annual debt service requirements to maturity for Certificates of Participation outstanding at December 31, 2018, are as follows: TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 44 Year Ending December 31 Governmental Activities Business Activities Principal Interest Principal Interest 2019 2020 2021 2022 2023 2024-2028 2029-2033 2034-2035 $ 650,000 675,000 695,000 710,000 735,000 4,040,000 2,690,000 850,000 $ 362,707 342,413 324,167 302,944 281,219 1,022,985 345,187 38,400 $ 150,000 155,000 160,000 170,000 180,000 1,025,000 480,000 - $ 104,825 99,575 94,150 86,150 77,650 251,800 32,625 - Total $ 11,045,000 $ 3,020,022 $ 2,320,000 $ 746,775 Capital Lease Obligations. The following leases are renewable on an annual basis, at the option of the Town, for consecutive one-year periods. Upon final payment, title to the leased assets will pass to the Town. • Lease obligation for equipment with a total cost of $217,004 and a book value net of accumulated depreciation at December 31, 2018 of $88,964. Due in five remaining semi-annual installments of $16,803.27 through March 2019. Amortization is based on an interest rate of 2.19%. The Town may terminate the lease by paying the applicable purchase option price on any scheduled payment. The balance at December 31, 2018 is $16,621. • Lease obligation for equipment with a total cost of $168,986 and a book value net of accumulated depreciation at December 31, 2018 of $106,883. Due in ten semi- annual installments of $13,139 through July 2021. Amortization is based on an interest rate of 2.10%. The Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2018 is $76,020. • Lease obligation for equipment with a total cost of $355,818 and a book value net of accumulated depreciation at December 31, 2018 of $348,074. Due in seven annual installments beginning with the first installment in November 2018 of $55,720 through November 2024. Amortization is based on an interest rate of 2.35%. The Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2018 is $308,459. • Lease obligation for equipment with a total cost of $258,258 and a book value net of accumulated depreciation at December 31, 2018 of $258,258. Due in seven semi- annual installments beginning with the first installment in February 2019 of $20,877 through August 2025. Amortization is based on an interest rate of 3.39%. The Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2018 is $258,258. 45 Annual debt service requirements to maturity for Capital Lease Obligations outstanding at December 31, 2018, are as follows: Year Ending December 31 Governmental Activities Principal Interest 2019 2020 2021 2022 2023 2024-2025 Total $ 123,185 109,364 112,241 88,780 91,260 134,528 $ 659,358 $ 17,372 14,390 11,513 8,695 6,215 4,702 $ 62,887 Changes in Long-term Liabilities. Long-term liability activity for the year ended December 31, 2018, was as follows: Beginning Balance Additions Deletions Ending Balance Due Within One Year Governmental Activities: Bonds Payable: Revenue Bonds Certificates of Participation Bond Premium Total Bonds Payable Capitalized Leases Payable Compensated Absences $ 8,225,362 11,675,000 19,900,362 292,371 20,192,733 566,230 353,386 $ - - - - - - 634,774 $ 576,079 630,000 1,206,079 12,712 1,218,791 165,130 627,241 $ 7,649,283 11,045,000 18,694,283 279,659 18,973,942 401,100 360,919 $ 595,998 650,000 1,245,998 13,191 1,259,189 89,905 360,919 Governmental Activity Long- term Liabilities $21,112,349 $ 634,774 $ 2,011,162 $19,735,961 $ 1,710,013 Business-type Activities: Certificates of Participation Bond Premium Total Bonds Payable Capitalized Leases Payable Compensated Absences $ 2,465,000 32,136 2,497,136 63,864 53,115 $ - - - 258,258 111,700 $ 145,000 2,496 147,496 63,864 99,806 $ 2,320,000 29,640 2,349,640 258,258 65,009 $ 150,000 2,496 152,496 33,280 65,009 Business-type Activity Long- term Liabilities $ 2,614,115 $ 369,958 $ 311,166 $ 2,672,907 $ 250,785 Conduit Debt Obligations. The Town has sponsored the issuance of revenue bonds in prior years to provide financial assistance to private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. Neither the Town, the State of Colorado, nor any political subdivision thereof is obligated in any manner for repayment of TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 46 the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying general purpose financial statements. Conduit debt obligations at December 31, 2018, are described as follows: Eaglebend Dowd Affordable Housing Corporation. The Eaglebend Dowd Affordable Housing Corporation (Dowd) was formed on March 24, 1998, to help provide for affordable housing within Eagle County. Dowd operates a 50-unit apartment project within Eagle County. The Town approved the formation and the issuance of the revenue bonds to finance the project and will obtain full legal title to the land, buildings and equipment upon payment in full of the bonds. The Town, however, is in no way obligated to pay the debt service on the bonds. In 2003, the Town approved the issuance by Dowd of $9,520,000 in Series 2003 Refunding Revenue Bonds to defease the outstanding Series 1998A Revenue Bonds by placing the proceeds of the Series 2003 bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. In August 2013, Dowd issued $8,450,000 in Series 2013 Multifamily Housing Project Refunding Revenue Bonds to refund the Series 2003 Bonds. In November 2014, Dowd issued $8,850,000 of Multifamily Housing Project Refunding Revenue Bonds, Series 2014A to refund and defease the Series 2013 bonds. As of December 31, 2018, there was $8,152,166 outstanding in Series 2014A Multifamily Housing Project Refunding Revenue Bonds, and $1,600,000 outstanding in Series 1998 B&C Subordinate Revenue Bonds. Defeased Debt. Certain other bonds previously issued by the Town have been defeased by the issuance of refunding bonds. As of December 31, 2018, there are no amounts outstanding on any refunded bonds. Note 6. Employee Retirement Plans Full-time Employees. The Town maintains two single-employer, defined contribution pension plans for full-time employees: (1) the Town of Avon Police Officers Money Purchase Pension Plan of which there are 24 participants, and (2) the Town of Avon General Employee Money Purchase Pension Plan of which there are 114 participants as of December 31, 2018. Plan administration and recordkeeping of these plans is provided by The Principal Financial Group. A defined contribution pension plan has terms that specify how contributions to an individual’s account are to be determined rather than the amount of pension benefits the individual is to receive. In a defined contribution plan, the pension benefits a participant will receive depend only on the amount contributed to the participant’s account, earnings on investments of those contributions, and forfeitures of other participant’s benefits that may be allocated to the participant’s account. 47 All full-time employees are required to participate in one of the above retirement plans upon employment with the Town. The type of plan that an employee participates in is dependent on the type of employee (police officer or general government employee). Town ordinance provides that both the employee and the Town will contribute an amount equal to 11% of the employee’s base salary each month. Employees hired prior to September 30, 1990, become vested in accordance with a vesting schedule which is dependent on the type of employee and hire date. All employees hired after September 30, 1990, start partial vesting after two years of service and are fully vested after five years of service. In addition, if an employee reaches normal retirement age, dies, or becomes totally and permanently disabled his account becomes fully vested regardless of length of service. Forfeitures by employees who leave employment before being fully vested are applied, first, to offset administrative expenses of the plans, and second, to reduce matching employer contributions. Forfeitures totaling $47,390 were used in 2018 for administrative expenses. No forfeitures were used to reduce matching employer contributions. Contributions made by employees and the Town for the three years ended December 31, 2018, are as follows: 2018 2017 2016 Employee Contributions $ 681,141 $ 659,359 $ 607,999 Town Contributions $ 681,141 $ 659,359 $ 607,999 Both the Town and the covered employees each made the required 11% contributions to the plans. There are no liabilities for benefits beyond the Town’s matching payments. No changes in the various plan’s provisions occurred in 2018. Part-time, Temporary and Seasonal Employees. On October 14, 1997, the Town adopted a PTS Retirement Plan administered by the ICMA Retirement Corporation and established under Section 457 of the Internal Revenue Code that pertains to deferred compensation plans. Plan administration and recordkeeping of this plans was transferred to The Principal Financial Group in November 2017. The PTS plan is designed specifically for employees who are part-time, temporary, or seasonal, and is defined as a Social Security replacement retirement plan. The PTS plan allows participants to defer federal and state income taxes on savings until retirement. The PTS plan requires a minimum contribution of 7.5% of an employee’s salary per plan year. This 7.5% may be the employee’s contribution, the employer’s contribution or a combination of both. The Town elected to have 3.75% contributed by the employee and 3.75% matched by the Town. Employees also have the option to contribute additional amounts. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 48 Upon separation of service, participants may withdraw the account balance in a lump-sum payment, roll the account balance over into another 457 plan, or continue to allow the account balance earn interest tax free. Taxes are paid when funds are withdrawn from the plan. Contributions made by plan members and the Town for the three years ended December 31, 2018, are as follows: 2018 2017 2016 Employees $37,081 $33,993 $36,031 Town $31,397 $26,697 $25,239 Both the Town and the covered employees each made the required 3.75% contributions to the plan. There are no liabilities for benefits beyond the Town’s matching payments. As of December 31, 2018, there were 378 participants in this plan. Note 7. 457 Deferred Compensation Plan The Town offers its full-time employees an optional supplemental deferred compensation plan created in accordance with Internal Revenue Code Section 457. Plan administration and recordkeeping is provided by The Principal Financial Group. The 457 plan allows eligible participants the opportunity to accumulate additional retirement savings with certain tax advantages. Deposits into the 457 plan are not subject to state or federal income taxes at the time of deposit, and earnings on these deposits are deferred until withdrawn. As of December 31, 2018, there were 46 participants in the 457 plan. Note 8. Employee Health Care The Town has a self-insurance plan for employee health and dental care. A third-party administrator processes individual employee claims and negotiates excess stop-loss insurance policies. Excess stop-loss insurance policies are purchased to cover individual claims in excess of $35,000 and aggregate total yearly claims in excess of $1,710,852. Settled benefit claims did not exceed the aggregate total yearly claims for 2018. As of December 31, 2018, the Town held reserves for future claims in the amount of $808,857. The following represents the changes in the claims reserve for the Town for 2018 and 2017: 2018 2017 Claims Reserve for Future Claims, Beginning of Year Current Year Deposits for Estimated Claims Excess Stop Loss Refunds for Specific (Individual) Claims Claim Payments $ 449,162 1,677,369 241,761 (1,559,435) $ 615,630 1,484,558 240,840 (1,891,866) Claims Reserve for Future Claims, End of Year $ 808,857 $ 449,162 49 Note 9. Interfund Receivables, Payables and Transfers Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are reported in the fund financial statements as “due to/from other funds”. These interfund receivables and payables are expected to be repaid within the next year. The composition of these interfund balances as of December 31, 2018, is as follows: Receivable Fund Payable Fund Amount General Fund Mobility Fund Capital Projects Fund Fleet Maintenance Fund Fleet Maintenance Fund Avon Urban Renewal Fund $ 100,000 300,000 200,000 Total $ 600,000 Interfund Transfers: Fund Transfers In Transfers Out Major Funds: General Fund Urban Renewal Authority Fund Debt Service Capital Projects Fund Mobility Enterprise Fund Fleet Maintenance Enterprise Fund Nonmajor Funds: Water Fund Transfers of Non-financial Resources: Mobility Enterprise Fund Internal Service Fund Total $ 233,117 - 1,008,354 2,025,000 1,200,000 550,000 - 5,016,471 215,750 1,182,935 $ 6,199,406 $ 2,230,000 1,420,000 - 1,241,471 - - 125,000 5,016,471 258,258 - $ 5,058,979 In the fund financial statements, total transfers in of $6,199,406 are greater than total transfers out of $5,058,979 because of the treatment of transfers of non-financial resources to the Mobility enterprise fund and the internal service fund. During the year, capital assets purchased in 2018 related to governmental funds, with a book value of $215,750 and $1,017,806 were transferred to the Mobility enterprise fund and internal service fund, respectively. In addition, capital lease obligations of $258,258 were transferred to the Mobility enterprise fund and capital lease principal payments of $165,129 were made on behalf of the internal service fund. No amounts were reported in the governmental funds as the amounts did not involve the transfer of financial resources. However, the internal service fund reported a transfer in for the capital resources received. TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 50 Note 10. Commitments and Contingencies Litigation. The Town is a party to various legal proceedings. Town management believes ultimate disposition of those subsequent pending claims and legal proceedings will not likely have a material adverse effect, if any, on the financial condition of the Town. Construction Contract Commitments. As of December 31, 2018, the Town had several construction contract commitments outstanding in the amount of $1,839,024. Intergovernmental Agreement. The Town entered into an Intergovernmental Agreement (IGA) with the Eagle River Fire Protection District (Fire District) on April 28, 2015 for jointly designing, financing, and constructing a Joint Public Safety Facility in the Town of Avon. The IGA expires on June 2, 2020. The IGA provides for many covenants and mutual agreements including temporary financing, design, construction bid process, construction financing, sale and conveyance of land, and construction. As of December 31, 2018, there have been three amendments to the IGA including entering into a memorandum of agreement regarding cost sharing, and the waiver of various fees by both parties. Tax, Spending and Debt Limitations. Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer’s Bill of Rights (TABOR) contains tax, spending, revenue and debt limitations which apply to the State of Colorado and all local governments. Spending and revenue limits are determined based on the prior year’s Fiscal Year Spending adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is generally defined as expenditures plus reserve increases with certain exceptions. Revenue in excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention of such revenue. In November 1997, voters within the Town passed a ballot issue which permanently authorizes the Town, without an election, to take action on all spending and revenue raising measures which are limited by TABOR. In addition, voters authorized the Town to keep and spend all revenue collected by the Town regardless of any limitation contained in TABOR. The only exceptions are proposed sales or use tax rate increases and property tax rate increases which must be submitted to the voters, unless otherwise allowed by law. Enterprises, defined as government-owned business authorized to issue revenue bonds and receiving less than 10 percent of annual revenue in grants from all state and local governments combined, are excluded from the provisions of TABOR. TABOR also requires local governments to establish Emergency Reserves. These reserves must be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. The Town has established an emergency reserve in the General Fund for the year ended December 31, 2018 in the amount of $693,001. 51 Town management believes it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of the provisions, including the interpretation of how to calculate Fiscal Year Spending limits will require judicial interpretation. Note 11. Risk Management The Town is exposed to various risks of loss related to torts; thefts of, damage to, and destruction of assets; errors or omissions; injuries to employees; and natural disasters. The Town is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA). CIRSA is a joint self-insurance pool created by intergovernmental agreement of 230 municipalities and 47 special districts to provide property, general and automobile liability and public officials coverage to its members. CIRSA is governed by a seven-member Board elected by and from its members. Coverage is provided through pooling of self-insured losses and the purchase of excess insurance coverage. CIRSA has a legal obligation for claims against its members to the extent that funds are available in its annually established loss fund and that amounts are available from insurance providers under excess specific and aggregate insurance contracts. Losses incurred in excess of loss funds and amounts recoverable from excess insurance are direct liabilities of the participating members. CIRSA has indicated that the amount of any excess losses would be billed to members in proportion to their contributions in the year such excess occurs, although it is not legally required to do so. The Town’s annual contribution to CIRSA amounted to $216,514 for 2018. The Town has not been informed of any excess losses that may have been incurred by the pool. The Town continues to carry commercial insurance coverage for other risks of loss including workers compensation. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. Note 12. Upper Eagle Regional Water Authority The Town is a participant in the Upper Eagle Regional Water Authority. The Authority was formed pursuant to an establishing contract on September 18, 1984, by the following municipal and quasi-municipal corporations (Members) located in Eagle County, Colorado. • Arrowhead Metropolitan District • Beaver Creek Metropolitan District • Berry Creek Metropolitan District • Eagle-Vail Metropolitan District • Edwards Metropolitan District • Town of Avon TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018 52 The Authority also provides water services to the Cordillera and Bachelor Gulch developments through contracts with Members. The Authority was formed to make the best practicable use of the Members’ joint resources in supplying water to the members and to further develop water resources and facilities in Eagle County. The Authority may not be terminated so long as bonds, notes or other obligations are outstanding, unless provision for full payment of such obligations has been made. At December 31, 2018, the Authority had debt with maturities through the year 2039. The Town has a service contract with the Authority whereby the Authority provides and bills residents of the Town with water at a rate which is expected to cover its costs in providing water services and other functions. Such costs specifically include debt service requirements, depreciation, and operations and maintenance, including maintenance of the Town’s water distribution system. As part of the agreement, the Town conveyed its water distributions facilities and leased its water rights, associated easements and improvements to the Authority at no cost. In consideration, the Authority has agreed to maintain the associated improvements and to administer and protect the Town’s plan for augmentation and water decrees at no cost. During 2018, the Authority collected $155,291 in water surcharges for the Town. Note 13. Tax Abatements The Town has entered into various agreements in order to meet development goals within certain areas of Town. The following areas have continuing development requirements or abatement agreements requiring disclosure. Development Area Revenues Impacted Governing Document Amount Requirements Village at Avon PUD Sales Tax, Accommodation Tax, Real Estate Transfer Tax Consolidated, Amended and Restated Annexation and Development Agreement $4,190,181 100% tax credit against sales, accommodations and real estate transfer taxes paid within the development area. Riverfront PUD Property Tax Increment Intergovernmental Agreement $ 352,683 100% tax rebate of incremental property taxes received from Avon Station Metropolitan District, excluding Lot B. Note 14. Major Taxpayers For the year ended December 31, 2018 forty-five percent (45%) of the Town’s sales tax revenues were received from the ten highest-paying companies. TOWN OF AVON, COLORADO REQUIRED SUPPLEMENTAL INFORMATION GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 12,828,034$ 13,109,453 13,067,960$ (41,493)$ Licenses and Permits 226,100 340,600 354,584 13,984 Intergovernmental 1,029,926 1,045,685 1,009,176 (36,509) Charges for Services 1,615,108 1,584,360 1,662,196 77,836 Fines and Forfeitures 92,445 61,375 52,220 (9,155) Investment Earnings 135,000 140,000 282,054 142,054 Other Revenues 420,300 455,300 499,933 44,633 Total Revenues 16,346,913 16,736,773 16,928,123 191,350 Expenditures Current: General Govt., Finance & Administration 3,669,039 3,617,993 3,624,522 (6,529) Community Development 1,334,749 1,384,862 1,342,798 42,064 Public Safety 3,631,929 3,740,346 3,690,530 49,816 Public Works 4,513,089 4,355,468 4,198,368 157,100 Recreation 1,517,394 1,464,614 1,585,571 (120,957) Contingency 200,000 - - - Total Expenditures 14,866,200 14,563,283 14,441,789 121,494 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,480,713 2,173,490 2,486,334 312,844 Other Financing Sources (Uses) Transfers In: Capital Projects Fund 233,117 233,117 233,117 - Transfers Out: Capital Projects Fund (120,000) (600,000) (480,000) 120,000 Transit Enterprise Fund (1,167,000) (1,200,000) (1,200,000) - Fleet Maintenance Enterprise Fund (415,000) (550,000) (550,000) - Total Other Financing Sources (Uses)(1,468,883) (2,116,883) (1,996,883) 120,000 Net Change in Fund Balances 11,830 56,607 489,451 432,844 Fund Balances, Beginning of Year 5,904,568 5,814,591 5,814,591 - Fund Balances, End of year 5,916,398$ 5,871,198$ 6,304,042$ 432,844$ Budgeted Amounts 53 TOWN OF AVON, COLORADO REQUIRED SUPPLEMENTAL INFORMATION AVON URBAN RENEWAL AUTHORITY FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 1,419,328$ 1,442,409$ 1,429,646$ (12,763)$ Investment Earnings 7,853 12,450 13,436 986 Total Revenues 1,427,181 1,454,859 1,443,082 (11,777) Expenditures Current: General Government 3,450 3,450 3,000 450 Debt Service: Principal 576,079 576,079 576,079 - Interest 271,907 271,907 271,908 (1) Fiscal Charges 43,080 43,772 55,587 (11,815) Total Expenditures 894,516 895,208 906,574 (11,366) Excess (Deficiency) of Revenues Over (Under) Expenditures 532,665 559,651 536,508 (23,143) Other Financing Sources (Uses) Transfers Out: Capital Project Fund (20,000) (1,420,000) (1,420,000) - Net Change in Fund Balances 512,665 (860,349) (883,492) (23,143) Fund Balances, Beginning of Year 1,323,321 1,357,451 1,357,451 - Fund Balances, End of year 1,835,986$ 497,102$ 473,959$ (23,143)$ Budgeted Amounts 54 55 TOWN OF AVON, COLORADO NOTES TO REQUIRED SUPPLEMENTAL INFORMATION DECEMBER 31, 2018 Note 1. Budgetary Information An annual budget is legally adopted on a basis consistent with generally accepted accounting principles for all funds, with the exception of proprietary funds which are budgeted on the modified accrual basis of accounting. Appropriations lapse at fiscal year-end except for capital projects and special revenue funds which may have project-length budgets that carryover from year-to-year. However, as a matter of practice, the Town adopts annual budgets for all funds. The budget is prepared by fund, department, program, object and project. Expenditures may not legally exceed budgeted appropriations at the fund level. The Town Council holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Town Council must adopt the budget by resolution prior to December 15th. Once adopted, the Town Council may at any time, by resolution, amend the budget. In addition, the Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department. A department is defined by the Town as a distinct, principal or specialized division (e.g. the Department of Public Works). 56 THIS PAGE INTENTIONALLY LEFT BLANK 57 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Water Fund – This fund is used to account for the cost of maintaining certain water-related assets and for the receipt of water surcharges and tap fees within the Town limits. Community Enhancement Fund – This fund is used to account for revenues received from a franchisee and restricted for use for beautification projects, energy conservation projects, equipment and technology upgrades for schools, scholarship funds, acquisition of open space and/or park land and development thereof, sponsorship of special community events, and undergrounding of overhead electric and other utility lines. Affordable Housing Fund – This fund is used to accumulate and account for resources received and restricted for use in the Town’s affordable housing program. Exterior Energy Offset Fund – This fund is used to account for fees collected at building permit to create financial assistance, rebates, and incentives to promote energy efficient projects within the Town of Avon. Fees are established based on a formula using BTUs required for certain amenities over a 20-year period. Disposable Paper Bag Fee Fund - This fund is used to account for fees received by the Town from retailers who are required to pay ten cents ($0.10) for each disposable paper bag used during a retail purchase. Effective May 1, 2018 it became unlawful for retailers to provide plastic bags to customers at point of sale. The intent is to encourage the use of reusable bags. Fees are restricted for use to programs and education related to waste reduction, and for providing reusable bags to Town residents and guests. TOWN OF AVON, COLORADO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2018 Community Affordable Exterior Energy Water Enhancement Housing Offset Fund Fund Fund Fund ASSETS Cash and Cash Equivalents 95,346$ -$ 718,549$ 77,044$ Receivables: - Accounts - 83,009 - - - Intergovernmental 102,009 - - - Notes Receivable - - 17,475 - Total Assets 197,355$ 83,009$ 736,024$ 77,044$ LIABILITIES Accounts Payable 11,753$ -$ -$ -$ Accrued Liabilities 700 - - - Deposits and Reserves - - 2,000 - Total Liabilities 12,453 - 2,000 - DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Notes Receivable - - 17,475 - Total Deferred Inflows of Resources - - 17,475 - FUND BALANCES Restricted For: Water Projects 184,902 - - - Community Enhancement - 83,009 - - Affordable Housing Programs - - 716,549 - Exterior Energy Offset Programs - - - 77,044 Waste Reduction Programs - - - - Total Fund Balances 184,902 83,009 716,549 77,044 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 197,355$ 83,009$ 736,024$ 77,044$ Special Revenue Funds 58 Disposable Total Paper Bag Nonmajor Fee Governmental Fund Funds 17,882$ 908,821$ - 83,009 3,345 105,354 - 17,475 21,227$ 1,114,659$ -$ 11,753 - 700 - 2,000 - 14,453 - 17,475 - 17,475 - 184,902 - 83,009 - 716,549 - 77,044 21,227 21,227 21,227 1,082,731 21,227$ 1,114,659$ 59 TOWN OF AVON, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2018 Community Affordable Exterior Energy Water Enhancement Housing Offset Fund Fund Fund Fund Revenues Licenses and Permits -$ -$ -$ 44,276$ Charges for Services 229,957 - 35,548 - Investment Earnings - - 621 - Other Revenues - 83,009 104,133 - Total Revenues 229,957 83,009 140,302 44,276 Expenditures Current: General Government - - 9,239 - Public Works and Utilities 112,228 - - - Total Expenditures 112,228 - 9,239 - Excess (Deficiency) of Revenues Over (Under) Expenditures 117,729 83,009 131,063 44,276 Other Financing Sources (Uses): Transfers Out: Capital Projects Fund (125,000) - - - Net Change in Fund Balances (7,271) 83,009 131,063 44,276 Fund Balances, Beginning of Year 192,173 - 585,486 32,768 Fund Balances, End of year 184,902$ 83,009$ 716,549$ 77,044$ Special Revenue Funds 60 Disposable Total Paper Bag Nonmajor Fee Governmental Fund Funds -$ 44,276$ - 265,505 - 621 21,227 208,369 21,227 518,771 - 9,239 - 112,228 - 121,467 21,227 397,304 - (125,000) 21,227 272,304 - 810,427 21,227$ 1,082,731$ 61 TOWN OF AVON, COLORADO WATER FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Charges for Services 170,000$ 176,176$ 229,957$ 53,781$ Total Revenues 170,000 176,176 229,957 53,781 Expenditures Current: Public Works and Utilities 144,149 144,149 112,228 31,921 Total Expenditures 144,149 144,149 112,228 31,921 Excess (Deficiency) of Revenues Over (Under) Expenditures 25,851 32,027 117,729 85,702 Other Financing Sources (Uses) Transfers Out: Capital Projects Fund (125,000) (125,000) (125,000) - Net Change in Fund Balances (99,149) (92,973) (7,271) 85,702 Fund Balances, Beginning of Year 111,946 192,173 192,173 - Fund Balances, End of year 12,797$ 99,200$ 184,902$ 85,702$ Budgeted Amounts 62 TOWN OF AVON, COLORADO COMMUNITY ENHANCEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Other Revenues 80,000$ 80,000$ 83,009$ 3,009$ Total Revenues 80,000 80,000 83,009 3,009 Expenditures Current: Public Works and Utilities - - - - Total Expenditures - - - - Net Change in Fund Balances 80,000 80,000 83,009 3,009 Fund Balances, Beginning of Year 205 - - - Fund Balances, End of year 80,205$ 80,000$ 83,009$ 3,009$ Budgeted Amounts 63 TOWN OF AVON, COLORADO AFFORDABLE HOUSING FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Charges for Services 28,800$ 28,800$ 35,548$ 6,748$ Investment Earnings 621 621 621 - Other Revenues 3,120 3,120 104,133 101,013 Total Revenues 32,541 32,541 140,302 107,761 Expenditures Current: General Government 25,000 25,000 9,239 15,761 Total Expenditures 25,000 25,000 9,239 15,761 Net Change in Fund Balances 7,541 7,541 131,063 123,522 Fund Balances, Beginning of Year 563,329 585,486 585,486 - Fund Balances, End of year 570,870$ 593,027$ 716,549$ 123,522$ Budgeted Amounts 64 TOWN OF AVON, COLORADO EXTERIOR ENERGY OFFSET FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Licenses and Permits 5,000$ 5,000$ 44,276$ 39,276$ Total Revenues 5,000 5,000 44,276 39,276 Expenditures Current: Community Development - - - - Total Expenditures - - - - Net Change in Fund Balances 5,000 5,000 44,276 39,276 Fund Balances, Beginning of Year 32,768 32,768 32,768 - Fund Balances, End of year 37,768$ 37,768$ 77,044$ 39,276$ Budgeted Amounts 65 TOWN OF AVON, COLORADO DISPOSABLE PAPER BAG FEE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Other Revenues -$ 18,000$ 13,540$ (4,460)$ Total Revenues - 18,000 13,540 (4,460) Expenditures Current: General Government - - - - Total Expenditures - - - - Net Change in Fund Balances - 18,000 13,540 (4,460) Fund Balances, Beginning of Year - - - - Fund Balances, End of year -$ 18,000$ 13,540$ (4,460)$ Budgeted Amounts 66 TOWN OF AVON, COLORADO DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Earnings 6,000$ 10,000$ 10,475$ 475$ Total Revenues 6,000 10,000 10,475 475 Expenditures Debt Service: Principal 630,000 630,000 630,000 - Interest 381,854 381,854 381,853 1 Fiscal Charges 5,000 6,500 7,750 (1,250) Total Expenditures 1,016,854 1,018,354 1,019,603 (1,249) Excess (Deficiency) of Revenues Over (Under) Expenditures (1,010,854) (1,008,354) (1,009,128) (774) Other Financing Sources (Uses) Transfers In: Capital Projects Fund 1,010,854 1,008,354 1,008,354 - Net Change in Fund Balances - - (774) (774) Fund Balances, Beginning of Year 536,567 535,590 535,590 - Fund Balances, End of year 536,567$ 535,590$ 534,816$ (774)$ Budgeted Amounts 67 TOWN OF AVON, COLORADO CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes: Real Estate Transfer Tax 3,700,000$ 3,500,000$ 3,621,125$ 121,125$ Intergovernmental 40,000 530,000 490,000 (40,000) Investment Earnings 37,500 37,500 92,412 54,912 Other Revenues 80,000 80,000 39,799 (40,201) Total Revenues 3,857,500 4,147,500 4,243,336 95,836 Expenditures Capital Projects: Facilities 630,000 4,977,692 4,896,180 81,512 Land and Land Improvements 100,000 914,899 603,350 311,549 Roads and Streets 1,440,000 4,738,651 2,933,518 1,805,133 Water Fund Projects 125,000 125,000 16,723 108,277 Communications and Technology 125,000 - - - Contingency 250,000 41,512 - 41,512 Debt Service: Capital Leases 121,770 177,490 177,490 - Total Expenditures 2,791,770 10,975,244 8,627,261 2,347,983 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,065,730 (6,827,744) (4,383,925) 2,443,819 Other Financing Sources (Uses) Transfers In: General Fund 120,000 600,000 480,000 (120,000) Avon Urban Renewal Fund 20,000 1,420,000 1,420,000 - Water Fund 125,000 125,000 125,000 - Transfers Out: General Fund (233,117) (233,117) (233,117) - Debt Service Fund (1,010,854) (1,010,854) (1,008,354) 2,500 Debt Issuance Proceeds 375,000 258,258 258,258 - Total Other Financing Sources (Uses)(603,971) 1,159,287 1,041,787 (117,500) Net Change in Fund Balances 461,759 (5,668,457) (3,342,138) 2,326,319 Fund Balances, Beginning of Year 4,418,512 11,282,615 11,282,615 - Fund Balances, End of Year 4,880,271$ 5,614,158$ 7,940,477$ 2,326,319$ Budgeted Amounts 68 69 ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the Town Council is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered through user charges: or where the Town Council has decided that periodic determination of net income is appropriate for accountability purposes. Mobility Fund – This fund is used to account for the activities involved in operating the Town’s transportation system. Fleet Maintenance Fund – This fund is used to account for the accumulation and allocation of costs associated with the maintenance of vehicles and rolling stock for the Town and certain other third-party governmental entities. TOWN OF AVON, COLORADO MOBILITY FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Taxes 41,532$ 41,532$ 41,566$ 34$ Intergovernmental - 75,000 75,000 - Charges for Services 239,246 283,430 249,185 (34,245) Other Revenue 104,122 104,122 133,338 29,216 Total Revenues 384,900 504,084 499,089 (4,995) Expenditures: Administration 271,617 277,084 269,820 7,264 Operations 1,258,194 1,319,418 1,317,650 1,768 Wash Bay 157,973 177,740 151,795 25,945 Total Expenditures 1,687,784 1,774,242 1,739,265 34,977 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,302,884) (1,270,158) (1,240,176) 29,982 Other Financing Sources (Uses): Transfers In: General Fund 1,167,000 1,200,000 1,200,000 - Net Change in Fund Balances (135,884) (70,158) (40,176) 29,982 Fund Balances, Beginning of Year 625,541 660,464 660,464 - Fund Balances, End of Year 489,657$ 590,306$ 620,288$ 29,982$ Fund Balances at December 31, 2018, is computed as follows: Current Assets 732,295$ Less: Current Liabilities and Deferred Inflows of Resources (145,287) Add: Current Portion of Capital Leases Payable 33,280 Fund Balances - December 31, 2018 620,288$ Budgeted Amounts 70 RECONCILIATION OF NET CHANGE IN FUND BALANCES (BUDGETARY BASIS) TO CHANGE IN NET POSITION (GAAP BASIS) Net Change in Fund Balances (Budgetary Basis)(40,176)$ Adjustments to Reconcile Budgetary Basis to GAAP Basis Principal Paid on Capital Leases 58,821 Transfers In of Non-financial Resources 215,750 Transfers Out of Non-financial Resources (258,258) Depreciation (591,957) Total Adjustments (575,644) Change in Net Position (GAAP Basis)(615,820)$ 71 TOWN OF AVON, COLORADO FLEET MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative)Revenues: Charges for Services: Third-party Fleet Maintenance Charges 758,240$ 632,428$ 612,763$ (19,665)$ Departmental Fleet Maintenance Services 511,186 537,271 529,815 (7,456) Fuel Mark-up 10,000 10,000 39,364 29,364 Other Revenues - - - - Total Revenues 1,279,426 1,179,699 1,181,942 2,243 Expenditures: Fleet Maintenance 1,693,973 1,723,855 1,749,572 (25,717) Total Expenditures 1,693,973 1,723,855 1,749,572 (25,717) Excess (Deficiency) of Revenues Over (Under) Expenditures (414,547) (544,156) (567,630) (23,474) Other Financing Sources (Uses): Transfers In: General Fund 415,000 550,000 550,000 - Net Change in Fund Balances 453 5,844 (17,630) (23,474) Fund Balances, Beginning of Year 239,818 49,964 49,964 - Fund Balances, End of Year 240,271$ 55,808$ 32,334$ (23,474)$ Fund Balances at December 31, 2018, is computed as follows: Current Assets 629,208$ Less: Current Liabilities (749,370) Add: Current Portion of Certificates of Participation 152,496 Fund Balances - December 31, 2018 32,334$ Budgeted Amounts 72 RECONCILIATION OF NET CHANGE IN FUND BALANCES (BUDGETARY BASIS)TO CHANGE IN NET POSITION (GAAP BASIS) Net Change in Fund Balances (Budgetary Basis)(17,630)$ Adjustments to Reconcile Budgetary Basis to GAAP Basis Capitalization of Capital Assets 16,386 Principal Paid on Certificates of Participation 145,000 Principal Paid on Capital Lease Obligations 5,043 Amortization of Premium and Gain on Advance Refunding of Debt 2,910 Depreciation (140,200) Total Adjustments 29,139 Change in Net Position (GAAP Basis)11,509$ 73 74 THIS PAGE INTENTIONALLY LEFT BLANK 75 INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Town and to other government units, on a cost reimbursement basis. Equipment Replacement Fund – This fund is used to account for the rental of certain vehicles and equipment to other departments for the accumulation of funds for future replacement. TOWN OF AVON, COLORADO EQUIPMENT REPLACEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Original Final Amounts (Negative)Revenues:Charges for Services: Equipment Replacement Charges 639,478$ 664,888$ 665,735$ 847$ Other Revenues - - 27,750 27,750 Total Revenues 639,478 664,888 693,485 28,597 Expenditures: Capital Outlay: Fleet and Heavy Equipment 473,485 795,894 823,976 (28,082) Recreation Center Equipment & Improvements 31,515 42,595 10,779 31,816 Computer and Office Equipment 47,587 54,228 52,512 1,716 Machinery and Equipment 31,930 12,718 7,849 4,869 Heat Recovery System - 6,188 7,039 (851) Total Expenditures 584,517 911,623 902,155 9,468 Excess (Deficiency) of Revenues Over (Under) Expenditures 54,961 (246,735) (208,670) 38,065 Other Financing Sources (Uses): Sales of Capital Assets 23,000 45,000 26,601 (18,399) Net Change in Fund Balances 77,961 (201,735) (182,069) 19,666 Fund Balances, Beginning of Year 3,231,619 3,534,505 3,534,505 - Fund Balances, End of Year 3,309,580$ 3,332,770$ 3,352,436$ 19,666$ Fund Balances at December 31, 2018, is computed as follows: Current Assets 3,352,441$ Less: Current Liabilities (89,910) Add: Current Portion of Capital Leases Payable 89,905 Fund Balances - December 31, 2018 3,352,436$ Budgeted Amounts 76 RECONCILIATION OF NET CHANGE IN FUND BALANCES (BUDGETARY BASIS) TO CHANGE IN NET POSITION (GAAP BASIS) Net Change in Fund Balances (Budgetary Basis)(182,069)$ Basis to GAAP Basis Capitalization of Capital Assets 910,032 Book Value of Capital Assets Disposed (30,360) Transfers In of Non-financial Resources 1,182,935 Depreciation (724,347) Total Adjustments 1,338,260 Change in Net Position (GAAP Basis)1,156,191$ 77 78 MISCELLANEOUS SCHEDULES TOWN OF AVON, COLORADO DEBT SCHEDULE DECEMBER 31, 2018 Date Interest Maturity Amount Amount Purpose Issued Rate Date Issued Outstanding Principal Interest Revenue Bonds: Series 2013, Avon URA Tax Increment Revenue Bonds 11/27/13 3.52%12/1/28 6,825,000$ 4,985,000$ 425,000$ 175,472$ Series 2017, Avon URA Tax Increment Revenue Bonds 1/5/17 2.90%12/1/31 3,000,000 2,664,283 170,998 77,085 Total Revenue Bonds 9,825,000 7,649,283 595,998 252,557 Certificates of Participation: Series 2010, Certificates of Participation 11/16/10 2.00%-5.00%12/1/30 6,680,000 4,595,000 295,000 207,625 Series 2014B, Certificates of Participation 1/14/15 3.03%12/1/29 3,800,000 2,940,000 230,000 89,082 Series 2016, Certificates of Participation 8/2/16 2.00%-4.00%12/1/35 6,300,000 5,830,000 275,000 170,825 Total Certificates of Participation 16,780,000 13,365,000 800,000 467,532 Capital Lease Obligations Master Lease-Purchase, US Bancorp 3/15/12 2.19%3/15/19 217,004 16,621 16,621 182 Master Lease-Purchase, US Bancorp 7/25/14 2.10%7/15/21 170,246 76,020 24,813 1,466 Master Lease-Purchase, Clayton Holdings 10/5/17 2.35%11/27/24 355,818 308,459 48,471 7,249 Master Lease-Purchase, Clayton Holdings 8/24/18 3.39%8/24/25 258,258 258,258 33,280 8,475 Total Capital Lease Obligations 1,001,326 659,358 123,185 17,372 Total Long-term Debt 27,606,326$ 21,673,641$ 1,519,183$ 737,461$ Payments Due Schedule of Indebtedness In 2019 79 TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND EXPENDITURES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) General Government: Mayor and Town Council 226,760$ 232,288$ 224,164$ 8,124$ Boards and Commissions 16,049 16,049 16,135 (86) Town Attorney 132,000 132,000 143,696 (11,696) Town Clerk 117,913 118,313 112,727 5,586 Municipal Court 148,899 148,899 153,869 (4,970) Town Manager 375,561 363,558 343,707 19,851 Community Relations 195,666 196,416 212,449 (16,033) Subtotal General Government 1,212,848 1,207,523 1,206,747 776 Human Resources: Human Resources 503,153 461,613 467,380 (5,767) Finance and Information Technology: Finance 1,021,522 960,219 948,460 11,759 Information Systems 434,262 387,291 390,180 (2,889) Nondepartmental 497,254 601,347 611,755 (10,408) Subtotal Finance and Administration 1,953,038 1,948,857 1,950,395 (1,538) Total General Government, Finance and Administraion 3,669,039 3,617,993 3,624,522 (6,529) Community Development: Planning 281,940 296,038 285,715 10,323 Building Inspection 151,049 150,591 150,462 129 Town Produced Events 243,760 274,579 233,029 41,550 Signature Event Seed Funding 400,000 366,620 402,928 (36,308) Community Grants 161,000 200,034 191,902 8,132 Salute to the USA 97,000 97,000 78,762 18,238 Total Community Development 1,334,749 1,384,862 1,342,798 42,064 Budgeted Amounts 80 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Public Safety: Police Administration 775,392$ 795,442$ 763,568$ 31,874$ Patrol 2,570,770 2,648,142 2,634,838 13,304 Investigations 285,767 296,762 292,124 4,638 Total Public Safety 3,631,929 3,740,346 3,690,530 49,816 Public Works and Engineering Engineering: Engineering 283,636 249,063 241,861 7,202 Buildings and Facilities 1,194,952 1,212,135 1,261,144 (49,009) Public Works: Roads and Bridges 2,362,984 2,246,203 2,140,617 105,586 Parks and Grounds 671,517 648,067 554,746 93,321 Total Public Works 4,513,089 4,355,468 4,198,368 157,100 Recreation: Administration 237,063 227,560 231,723 (4,163) Adult Programs 61,906 61,393 61,690 (297) Aquatics 542,219 509,851 595,029 (85,178) Fitness 144,227 140,387 156,099 (15,712) Guest Services 325,124 319,070 331,601 (12,531) Youth Programs 149,536 149,034 166,058 (17,024) Community Swim Program 57,319 57,319 43,371 13,948 Total Recreation 1,517,394 1,464,614 1,585,571 (120,957) Contingency 200,000 - - - TOTAL EXPENDITURES 14,866,200$ 14,563,283$ 14,441,789$ 121,494$ Budgeted Amounts 81 TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND REVENUES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Taxes: General Property Tax 1,836,085$ 1,836,085$ 1,829,624$ (6,461)$ General Property Tax - Delinquent Collections 500 500 181 (319) General Property Tax - Interest and Penalties 1,500 1,500 1,485 (15) Abatements - (265) (379) (114) Specific Ownership Tax 120,000 105,000 105,234 234 Sales Tax 8,218,606 8,435,145 8,425,432 (9,713) Utility Tax 110,000 105,000 105,881 881 Accommodations Tax 1,306,343 1,346,488 1,334,306 (12,182) Penalties and Interest 25,000 50,000 41,713 (8,287) Sales Tax Audit Assessments 5,000 10,000 8,795 (1,205) VAA Retail Sales Fee 775,000 795,000 785,659 (9,341) Franchise Fees 430,000 425,000 430,029 5,029 Total Taxes 12,828,034 13,109,453 13,067,960 (41,493) Licenses and Permits: Liquor Licenses 7,000 12,500 9,730 (2,770) Business Licenses 85,000 95,000 91,825 (3,175) Contractor's Licenses 10,500 10,500 12,095 1,595 Tobacco / Cigarette Retailers License - - 1,500 1,500 Building Permits 115,000 215,000 235,059 20,059 Road Cut Permits 8,000 7,000 4,025 (2,975) Mobile Vendor Cart Permits 600 600 350 (250) Total Licenses and Permits 226,100 340,600 354,584 13,984 Intergovernmental: Federal: Click It or Ticket 5,500 2,225 2,225 - Bullet Proof Vest Grant 2,000 1,600 1,600 - State: LEAF Grant 18,000 - - - High Visibility Grants 20,000 25,000 20,923 (4,077) POST I70 Training Grants 21,000 40,976 43,459 2,483 Local Government/Other Agency Eagle River Youth Coalition 8,500 5,000 8,823 3,823 State/County Shared Revenue: Conservation Trust 72,000 72,000 66,524 (5,476) Motor Vehicle Registration 22,000 24,800 24,194 (606) Highway User's Tax 201,963 253,469 234,437 (19,032) Cigarette Tax 42,000 35,000 23,525 (11,475) County Sales Tax 483,743 450,000 447,938 (2,062) Road & Bridge Fund 132,220 134,615 134,741 126 State Severance Tax 1,000 1,000 787 (213) Total Intergovernmental 1,029,926 1,045,685 1,009,176 (36,509) Budgeted Amounts 82 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Charges for Services: General Government: Photocopying Charges 300$ 100$ 10$ (90)$ License Hearing Fees 100 100 - (100) Other Fees and Charges 1,250 2,000 3,338 1,338 Credit Card and Paper Filing Fees - 2,500 2,591 91 Plan Check Fees 95,000 65,000 76,116 11,116 Subdivision Review Fees 1,000 - - - Design Review Fees 14,295 22,000 24,725 2,725 Animal Control Fees 500 150 - (150) Impact Fee Administrative Fees 750 1,500 2,968 1,468 Police Reports 600 500 692 192 Off-duty Police Employment 25,000 50,000 57,835 7,835 Fingerprinting Fees 5,000 3,500 4,287 787 VIN Inspection Fees 5,000 750 1,035 285 False Alarm Fees 500 75 175 100 National Night Out 2,000 3,500 3,219 (281) DUI Reimbursement 24,250 40,900 26,403 (14,497) Subtotal: General Government 175,545 192,575 203,394 10,819 Recreation Center: Admission Fees 915,000 915,000 986,743 71,743 Program Fees 94,580 94,580 83,027 (11,553) Rentals 42,500 54,424 51,867 (2,557) Merchandise Sales 8,500 8,600 8,340 (260) Other Recreation Center Services 10,000 11,296 10,471 (825) Fitness Program Revenues 50,125 58,000 63,251 5,251 Other Recreation: Adult Program Revenues 24,921 26,000 21,606 (4,394) Cabin Equipment Rentals 17,500 31,350 32,857 1,507 Athletic Field Rentals 2,000 1,500 1,678 178 Youth Program Revenues 215,625 168,000 177,395 9,395 Sponsorships 38,000 7,000 6,500 (500) Event Fees 10,525 5,550 5,800 250 Special Event Admission Fees 10,287 10,485 9,267 (1,218) Subtotal: Recreation 1,439,563 1,391,785 1,458,802 67,017 Total Charges for Services 1,615,108 1,584,360 1,662,196 77,836 Budgeted Amounts 83 TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND REVENUES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2018 (CONTINUED) Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Fines and Forfeitures: Court Fines - Traffic 51,300$ 37,700$ 30,594$ (7,106)$ Court Fines - Criminal 21,000 10,200 9,890 (310) Court Fines - Parking 6,735 2,890 2,705 (185) Court Costs 7,000 5,860 4,846 (1,014) Jury Fees 100 25 25 - Bond Forfeitures 100 200 200 - Police Training Surcharge 6,210 4,500 3,960 (540) Total Fines and Forfeitures 92,445 61,375 52,220 (9,155) Investment Earnings 135,000 140,000 282,054 142,054 Miscellaneous Revenues: Recreational Amenity Fees 325,000 275,000 278,904 3,904 Bond Issuance Fee 10,200 10,200 10,248 48 Lease of Town-owned Property 40,000 60,000 60,875 875 Miscellaneous Nonclassified Revenues 45,100 110,100 149,906 39,806 Total Miscellaneous Revenues 420,300 455,300 499,933 44,633 TOTAL REVENUES 16,346,913$ 16,736,773$ 16,928,123$ 191,350$ Budgeted Amounts 84 85 THIS PAGE INTENTIONALLY LEFT BLANK TOWN OF AVON, COLORADO SCHEDULE OF CAPITAL PROJECT FUND PROJECT EXPENDITURES (BUDGETARY BASIS) - BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED DECEMBER 31, 2018 Variance with Total Budget - Prior Current Project Positive Project Description Years Year Total Budget (Negative) CAPITAL IMPROVEMENT PROJECTS Facilities: General Government Facilities: New Town Hall: New Town Hall 262,088$ 4,437,428$ 4,699,516$ 4,716,259$ 16,743$ Fiber - PSF to NTH 43,647 58,710 102,357 135,275 32,918 Joint Public Safety Facility Project: Construction 6,390,304 22,294 6,412,598 6,320,855 (91,743) Transportation Facilities: ARTF Doors 13,137 9,284 22,421 55,000 32,579 ARTF Solar Panels - 215,750 215,750 325,000 109,250 Cultural and Recreational Facilities: Nottingham Park Pavilion Retractable Door 7,303 24,925 32,228 239,532 207,304 Other Facilities Recycling Center, Lot 5 - 21,774 21,774 15,000 (6,774) Hahnewald Barn Predesign / Feasibility Study - 106,015 106,015 135,000 28,985 Land and Land Improvements: Nottingham Park Zone C Imp. - Playground 329,386 422,230 751,616 872,266 120,650 Eagle River Whitewater Park Repair 6,720 24,670 31,390 190,000 158,610 Nottingham Park Light Upgrade 110,905 10,600 121,505 310,000 188,495 Nottingham Park Fitness Court - 145,850 145,850 210,221 64,371 Roads and Streets: Streetscape Improvements: Wayfinding Signage 34,642 8,549 43,191 84,145 40,954 Avon Rd. / I70 Overpass Aesthetics Imp.- 8,245 8,245 270,000 261,755 Actual Amounts 86 Variance with Total Budget - Prior Current Project Positive Project Description Years Year Total Budget (Negative) CAPITAL IMPROVEMENT PROJECTS Roads and Streets (Continued) Street Maintenance and Repair: East B/C Blvd. Repair -$ 59,579$ 59,579$ -$ (59,579)$ 2018 Microsurface Project - 205,229 205,229 250,000 44,771 Wildwood Road Repair 8,850 - 8,850 75,000 66,150 Eaglebend Dr. and Nottingham Rd. Repaving 664,044 304,437 968,481 1,097,500 129,019 Street Improvements: West B/C Blvd. RR Crossing Improvements 9,831 21,790 31,621 231,621 200,000 East and West B/C Blvd. Street Rebuild 198,943 2,314,992 2,513,935 4,025,943 1,512,008 Recreational Trails Program: Trail Improvements 2,600 - 2,600 73,600 71,000 Riverfront Trail Connector - 10,697 10,697 210,000 199,303 Water Fund Projects: Nottingham Rd. Debris Flow Study and Imp.24,618 16,723 41,341 425,000 383,659 8,107,018$ 8,449,771$ 16,556,789$ 20,267,217$ 3,710,428$ Total Capital Improvement Projects Actual Amounts 87 Financial Planning 02/01 The public report burden for this information collection is estimated to average 380 hours annually. Form # 350-050-36City or County:AvonYEAR ENDING :December 2018This Information From The Records Of (example - City of _ or County of _)Prepared By: Valerie BarryPhone:970-748-4044 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway-Federal HighwayTaxesTaxesUser Taxes Administration1. Total receipts available2. Minus amount used for collection expenses3. Minus amount used for nonhighway purposes4. Minus amount used for mass transit5. Remainder used for highway purposes AMOUNT AMOUNTA. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)0 a. Motor Fuel (from Item I.A.5.) 2. Maintenance:2,012,338 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 51,073 2. General fund appropriations 2,977,380 b. Snow and ice removal 646,505 3. Other local imposts (from page 2)105,234 c. Other 4. Miscellaneous local receipts (from page 2)569,245 d. Total (a. through c.)697,577 5. Transfers from toll facilities 4. General administration & miscellaneous 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 396,382 a. Bonds - Original Issues 6. Total (1 through 5)3,106,298 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)0 a. Interest 250,679 7. Total (1 through 6)3,651,859 b. Redemption 553,513B. Private Contributions c. Total (a. + b.)804,192C. Receipts from State government 2. Notes: (from page 2)258,631 a. InterestD. Receipts from Federal Government b. Redemption (from page 2)0 c. Total (a. + b.)0E. Total receipts (A.7 + B + C + D)3,910,490 3. Total (1.c + 2.c)804,192C. Payments to State for highwaysD. Payments to toll facilitiesE. Total disbursements (A.6 + B.3 + C + D)3,910,490 Opening Debt Amount Issued Redemptions Closing DebtA. Bonds (Total)7,797,291 553,513 7,243,778 1. Bonds (Refunding Portion)B. Notes (Total)0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation3,910,490 3,910,490 0Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS(Show all entries at par) ITEM AND STREET PURPOSES 88 STATE:ColoradoYEAR ENDING (mm/yy):December 2018 AMOUNT AMOUNTA.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 5. Specific Ownership &/or Other 105,234 g. Other Misc. Receipts 6. Total (1. through 5.)105,234 h. Other RETT 569,245 c. Total (a. + b.)105,234 i. Total (a. through h.)569,245 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNTC. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 234,437 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 24,194 d. Federal Transit Admin d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.)24,194 g. Total (a. through f.)0 4. Total (1. + 2. + 3.f)258,631 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONALHIGHWAYHIGHWAY TOTALSYSTEMSYSTEM(a)(b)(c)A.1. Capital outlay: a. Right-Of-Way Costs 0 b. Engineering Costs 0 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 0 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4)0 0 0 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)0 0 0 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM 89 90 THIS PAGE INTENTIONALLY LEFT BLANK 91 STATISTICAL SECTION This section of the Town of Avon’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Town’s overall financial health. Financial Trends (Pages 92-100) – These schedules contain trend information to help readers understand how the Town’s financial performance and well-being have changed over time. Revenue Capacity (Pages 101-105) – These schedules contain information to help readers understand and assess the factors affecting the Town’s ability to generate its own-source revenues, specifically property taxes. Debt Capacity (Pages 106-109) – These schedules present information to help readers understand and assess the Town’s debt burden and ability to issue additional debt. Demographic and Economic Information (Pages 110-112) – These schedules offer demographic and economic information to help readers understand the environment in which the Town’s financial activities take place and to provide information that facilitates comparisons of financial statement information over time and among other local governments. Operating Information (Pages 113-115) – These schedules contain service and infrastructure information to help readers understand how the information in the Town’s financial report relates to the services the Town provides and the activities it performs. TOWN OF AVON, COLORADO NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2009 2010 2011 2012 Governmental Activities Net Investment in Capital Assets 34,458,411$ 35,651,654$ 34,738,700$ 36,904,217$ Restricted For: Emergencies 470,037 503,650 447,963 428,947 Debt Service 1,258,256 1,055,410 1,047,077 1,015,589 Capital Improvements - 3,000,722 2,972,175 2,530,266 Urban Renewal - - 242,620 216,002 Purposes of Grantors - - 2,725,334 2,238,966 Unrestricted 16,488,477 15,935,700 14,345,936 13,544,676 Total Governmental Activities Net Position 52,675,181$ 56,147,136$ 56,519,805$ 56,878,663$ Business-type Activities Net Investment in Capital Assets 2,729,412$ 2,154,069$ 1,815,425$ 1,761,245$ Unrestricted 1,147,965 1,219,055 1,256,004 943,960 Total Business-type Activities Net Position 3,877,377$ 3,373,124$ 3,071,429$ 2,705,205$ Primary Government Net Investment in Capital Assets 37,187,823$ 37,805,723$ 36,554,125$ 38,665,462$ Restricted 1,728,293 4,559,782 7,435,169 6,429,770 Unrestricted 17,636,442 17,154,755 15,601,940 14,488,636 Total Primary Government Net Position 56,552,558$ 59,520,260$ 59,591,234$ 59,583,868$ Source: Town of Avon Finance Department Fiscal Year 92 2013 2014 2015 2016 2017 2018 34,774,531$ 64,112,399$ 60,000,945$ 58,088,785$ 56,693,531$ 60,092,867$ 476,619 598,376 552,335 664,805 688,786 693,001 1,139,575 1,136,228 1,157,629 1,169,163 1,175,301 1,163,056 4,635,904 3,386,451 6,198,817 5,921,087 3,373,917 702,390 367,082 305,379 404,048 555,167 717,740 (124,281) 2,007,140 929,226 1,106,628 142,100 192,173 267,911 10,217,136 10,466,381 11,283,921 16,341,288 20,329,098 20,665,218 53,617,987$ 80,934,440$ 80,704,323$ 82,882,395$ 83,170,546$ 83,460,162$ 12,583,125$ 12,097,298$ 11,633,282$ 11,430,538$ 11,424,412$ 10,877,907$ 783,529 843,503 859,368 908,749 710,428 652,622 13,366,654$ 12,940,801$ 12,492,650$ 12,339,287$ 12,134,840$ 11,530,529$ 47,357,656$ 76,209,697$ 71,634,227$ 69,519,323$ 68,117,943$ 70,970,774$ 8,626,320 6,355,660 9,419,457 8,452,322 6,147,917 2,702,077 11,000,665 11,309,884 12,143,289 17,250,037 21,039,526 21,317,840 66,984,641$ 93,875,241$ 93,196,973$ 95,221,682$ 95,305,386$ 94,990,691$ Fiscal Year 93 TOWN OF AVON, COLORADO CHANGES IN NET POSITION LAST TEN FISCAL YEARS 2009 2010 2011 2012 Expenses Governmental Activities: General Government 2,431,143$ 2,832,514$ 3,539,636$ 3,400,499$ Community Development 1,286,956 644,968 519,631 421,554 Public Safety 2,608,604 2,409,115 2,569,100 2,554,404 Public Works and Utilities 6,302,284 5,948,003 5,821,879 5,479,239 Recreation and Culture 2,752,142 2,437,556 2,276,473 2,737,458 Interest and Fiscal Charges on Long-term Debt 1,195,981 637,344 575,100 516,160 Total Governmental Activity Expenses 16,577,110 14,909,500 15,301,819 15,109,314 Business-type Activities: Transportation 1,485,763 1,175,818 1,123,640 1,083,097 Fleet Maintenance 2,325,339 2,076,364 1,618,698 1,382,954 Total Business-type Activity Expenses 3,811,102 3,252,182 2,742,338 2,466,051 Total Primary Government Expenses 20,388,212$ 18,161,682$ 18,044,157$ 17,575,365$ Program Revenues Governmental Activities: Charges for Services: General Government 164,061$ 59,768$ 259,609$ 183,969$ Community Development 143,826 216,263 230,570 225,778 Public Safety 221,262 376,440 248,442 52,649 Public Works and Utilities 504,403 407,391 524,047 278,662 Recreation and Culture 1,272,902 1,207,964 1,208,130 1,116,947 Operating Grants and Contributions 59,857 51,048 59,329 39,607 Capital Grants and Contributions 269,853 1,855,346 247,368 1,715,337 Total Governmental Activity Program Revenues 2,636,164 4,174,220 2,777,495 3,612,949 Business-type Activities: Charges for Services 2,437,178 2,081,674 1,520,018 1,135,929 Capital Grants and Contributions - - - 305,351 Total Business-type Activity Program Revenues 2,437,178 2,081,674 1,520,018 1,441,280 Total Primary Government Program Revenues 5,073,342$ 6,255,894$ 4,297,513$ 5,054,229$ Net (Expense) Revenue Governmental Activities (13,940,946)$ (10,735,280)$ (12,524,324)$ (11,496,365)$ Business-type Activities (1,373,924) (1,170,508) (1,222,320) (1,024,771) Total Primary Government Net Expense (15,314,870)$ (11,905,788)$ (13,746,644)$ (12,521,136)$ Fiscal Year 94 2013 2014 2015 2016 2017 2018 2,836,303$ 3,186,870$ 3,042,126$ 3,291,190$ 3,500,101$ 3,661,274$ 365,960 463,821 1,341,706 1,202,097 1,617,329 1,454,581 2,551,559 2,792,174 3,039,333 3,214,680 3,703,871 3,983,349 4,814,364 7,179,132 8,458,218 9,656,808 9,026,700 9,448,309 3,851,812 2,061,033 1,430,648 1,584,531 1,684,492 1,978,431 600,367 504,343 639,267 754,238 796,462 720,441 15,020,365 16,187,373 17,951,298 19,703,544 20,328,955 21,246,385 1,193,289 1,686,778 1,979,505 1,963,223 2,253,558 2,272,401 1,608,295 1,609,134 1,506,138 1,623,046 1,655,774 1,720,433 2,801,584 3,295,912 3,485,643 3,586,269 3,909,332 3,992,834 17,821,949$ 19,483,285$ 21,436,941$ 23,289,813$ 24,238,287$ 25,239,219$ 135,448$ 163,429$ 219,364$ 239,199$ 294,431$ 272,153$ 485,406 279,179 380,130 369,867 396,731 395,239 54,205 66,662 69,629 99,862 64,275 93,646 256,749 564,090 764,549 698,195 287,151 233,982 1,064,314 1,092,276 1,238,395 1,334,056 1,519,254 1,458,802 39,217 52,151 11,713 104,217 84,761 75,430 7,823,132 1,027,911 61,779 1,816,456 31,237 491,600 9,858,471 3,245,698 2,745,559 4,661,852 2,677,840 3,020,852 1,450,388 1,645,083 1,670,213 1,557,439 1,482,770 1,564,465 90,494 - - 100,000 328,000 75,000 1,540,882 1,645,083 1,670,213 1,657,439 1,810,770 1,639,465 11,399,353$ 4,890,781$ 4,415,772$ 6,319,291$ 4,488,610$ 4,660,317$ (5,161,894)$ (12,941,675)$ (15,205,739)$ (15,041,692)$ (17,651,115)$ (18,225,533)$ (1,260,702) (1,650,829) (1,815,430) (1,928,830) (2,098,562) (2,353,369) (6,422,596)$ (14,592,504)$ (17,021,169)$ (16,970,522)$ (19,749,677)$ (20,578,902)$ Fiscal Year 95 TOWN OF AVON, COLORADO CHANGES IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS 2009 2010 2011 2012 General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property Taxes 3,640,183$ 4,195,297$ 3,672,307$ 3,027,319$ Real Estate Transfer Taxes 1,761,980 2,159,525 1,616,982 1,707,648 Sales and Accommodation Taxes 5,651,085 5,748,325 6,190,839 6,340,557 Other Taxes 1,334,692 1,268,120 1,323,246 499,114 Unrestricted Investment Earnings 246,225 163,991 87,099 37,827 Loss on Disposal of Capital Assets - - - (30,857) Grants and Contributions Not Restricted to Specific Programs 872,084 854,130 857,474 839,112 Miscellaneous 522,920 442,522 372,222 344,503 Capital Contributions - 907,500 - - Transfers (1,295,000) (1,532,175) (950,000) (910,000) Total Governmental Activities 12,734,169 14,207,235 13,170,169 11,855,223 Business-type Activities: Property Taxes 42,800 41,580 40,371 40,032 Capital Contributions - (907,500) - - Loss on Disposal of Capital Assets - - - (291,485) Transfers 1,295,000 1,532,175 950,000 910,000 Total Business-type Activities 1,337,800 666,255 990,371 658,547 Total Primary Government 14,071,969$ 14,873,490$ 14,160,540$ 12,513,770$ Change in Net Position Governmental Activities (1,206,777)$ 3,471,955$ 645,845$ 358,858$ Business-type Activities (36,124) (504,253) (231,949) (366,224) Total Primary Government (1,242,901)$ 2,967,702$ 413,896$ (7,366)$ Source: Town of Avon Finance Department Fiscal Year 96 2013 2014 2015 2016 2017 2018 3,039,132$ 2,873,055$ 2,904,509$ 3,315,020$ 2,876,177$ 3,260,557$ 1,574,502 3,764,526 2,369,314 3,497,602 4,411,530 3,621,125 7,249,935 8,089,010 8,754,673 9,540,260 9,437,658 10,595,905 625,756 1,197,603 1,208,352 1,389,896 1,385,171 641,144 21,296 45,844 53,161 139,665 178,997 398,998 - - - - - - 864,231 883,884 482,769 513,912 913,784 932,146 408,142 500,925 529,843 558,618 589,767 772,766 (10,955,776) 24,063,281 - (150,215) (103,403) - (926,000) (1,160,000) (1,326,999) (1,584,994) (1,750,415) (1,707,492) 1,901,218 40,258,128 14,975,622 17,219,764 17,939,266 18,515,149 40,375 40,079 40,280 40,258 40,297 41,566 10,955,776 24,897 - 150,215 103,403 - - - - - - - 926,000 1,160,000 1,326,999 1,584,994 1,750,415 1,707,492 11,922,151 1,224,976 1,367,279 1,775,467 1,894,115 1,749,058 13,823,369$ 41,483,104$ 16,342,901$ 18,995,231$ 19,833,381$ 20,264,207$ (3,260,676)$ 27,316,453$ (230,117)$ 2,178,072$ 288,151$ 289,616$ 10,661,449 (425,853) (448,151) (153,363) (204,447) (604,311) 7,400,773$ 26,890,600$ (678,268)$ 2,024,709$ 83,704$ (314,695)$ Fiscal Year 97 TOWN OF AVON, COLORADO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2009 2010 2011 2012RevenuesTaxes 11,710,148$ 12,728,883$ 12,083,403$ 11,574,638$ Licenses and Permits 124,130 215,635 219,265 207,670 Intergovernmental 1,201,794 2,760,524 1,164,171 2,594,056 Charges for Services 1,706,803 1,474,968 1,593,303 1,473,552 Fines and Forfeitures 129,530 147,057 197,103 151,533 Investment Earnings 246,225 163,991 87,099 37,827 Other Revenues 469,688 442,522 368,568 380,647 Total Revenues 15,588,318 17,933,580 15,712,912 16,419,923 Expenditures Current: General Government and Housing 3,138,391 2,560,405 3,411,329 3,088,911 Community Development 697,820 598,692 519,268 421,133 Public Safety 2,511,717 2,354,235 2,516,612 2,551,488 Public Works and Utilities 3,660,540 3,224,695 3,429,238 3,192,763 Recreation and Culture 2,375,945 2,144,447 2,054,477 2,148,410 Capital Improvements 2,746,286 5,554,096 1,023,914 4,087,083 Debt Service: Principal 26,416,250 1,495,000 1,195,000 1,240,000 Interest 824,535 543,331 526,288 470,455 Fiscal Charges 57,315 70,657 56,614 43,622 Bond Issuance Costs 160,000 77,695 - - Total Expenditures 42,588,799 18,623,253 14,732,740 17,243,865 Excess (Defieiency) of Revenues Over (Under) Expenditures (27,000,481) (689,673) 980,172 (823,942) Other Financing Sources (Uses)Transfers In 1,810,032 1,945,004 1,090,335 1,591,071 Transfers Out (3,105,032) (3,477,179) (2,040,335) (2,501,071) Debt Issuance Proceeds 7,200,000 3,310,000 - - Premium on Debt Issued - - - - Payments to Escrow Agent - (92,067) - - Sales of Capital Assets - - - - Total Other Financing Sources (Uses)5,905,000 1,685,758 (950,000) (910,000) Net Change in Fund Balances (21,095,481)$ 996,085$ 30,172$ (1,733,942)$ Debt Service as a Percentage of Noncapital Expenditures 66.88%14.76%12.39%12.60% Source: Town of Avon Finance Department Fiscal Year 98 2013 2014 2015 2016 2017 2018 12,489,325$ 15,924,194$ 15,236,848$ 17,742,776$ 18,148,536$ 18,118,731$ 336,548 210,636 335,741 259,997 374,311 398,860 8,324,980 1,963,946 989,546 2,868,277 1,029,782 1,499,176 1,556,262 1,757,625 1,682,724 1,772,510 2,005,812 1,927,701 104,736 131,513 129,356 91,014 94,311 52,220 21,296 45,827 53,158 139,665 178,997 398,998 531,738 503,354 532,353 651,603 664,037 748,101 23,364,885 20,537,095 18,959,726 23,525,842 22,495,786 23,143,787 2,762,979 3,084,616 2,916,095 3,119,007 3,379,282 3,636,761 369,158 456,063 1,348,166 1,201,086 1,505,073 1,342,798 2,539,475 2,726,711 3,007,164 3,122,942 3,416,991 3,690,530 1,911,225 3,799,489 4,080,272 5,067,825 4,318,222 4,310,596 3,328,177 1,654,078 1,147,149 1,293,277 1,436,483 1,585,571 11,837,101 7,927,709 3,284,852 8,864,565 6,721,147 8,449,771 7,300,000 1,491,042 1,264,966 1,382,506 1,239,743 1,371,210 423,487 453,883 503,269 473,674 746,385 666,120 39,145 51,007 41,289 54,071 81,625 63,337 133,330 - 80,569 147,270 41,162 - 30,644,077 21,644,598 17,673,791 24,726,223 22,886,113 25,116,694 (7,279,192) (1,107,503) 1,285,935 (1,200,381) (390,327) (1,972,907) 2,081,160 4,888,511 4,361,441 2,819,319 5,508,421 3,266,471 (3,007,160) (6,048,511) (5,138,440) (4,404,313) (7,258,836) (5,016,471) 6,851,367 - 3,800,000 6,300,000 3,080,204 258,258 - - - 302,205 - - - - - - - - 1,151 - - - - - 5,926,518 (1,160,000) 3,023,001 5,017,211 1,329,789 (1,491,742) (1,352,674)$ (2,267,503)$ 4,308,936$ 3,816,830$ 939,462$ (3,464,649)$ 39.77%12.95%11.37%10.95%10.85%10.65% Fiscal Year 99 TOWN OF AVON, COLORADO FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2009 2010 2011 2012 2013 General Fund Nonspendable -$ 7,710$ -$ -$ 7,442$ Restricted 470,037 503,650 447,963 428,947 476,619 Assigned - - 413,251 413,251 413,251 Unassigned 3,959,093 3,581,941 3,329,981 3,134,327 4,369,187 Total General Fund 4,429,130 4,093,301 4,191,195 3,976,525 5,266,499 All Other Governmental Funds Nonspendable - - - - - Restricted 3,933,265 6,930,731 6,987,206 6,045,396 2,803,943 Committed 5,539,422 3,968,735 4,100,746 3,656,294 3,624,653 Assigned 1,218,920 1,066,626 810,418 680,408 1,307,854 Unassigned (57,429) - - - - Total All Other Governmental Funds 10,634,178$ 11,966,092$ 11,898,370$ 10,382,098$ 7,736,450$ 2014 2015 2016 2017 2018 General Fund Nonspendable -$ 13,061$ 86,136$ -$ -$ Restricted 598,376 552,335 664,805 688,786 693,001 Assigned 325,000 47,878 - - - Unassigned 3,540,922 5,046,651 5,312,950 5,125,805 5,611,041 Total General Fund 4,464,298 5,659,925 6,063,891 5,814,591 6,304,042 All Other Governmental Funds Nonspendable 270 - - - Restricted 2,370,833 2,668,305 7,787,517 5,459,131 1,979,076 Committed 3,386,451 6,198,817 4,493,621 7,941,466 7,336,358 Assigned 513,594 517,335 516,183 585,486 716,549 Unassigned - - - - - Total All Other Governmental Funds 6,271,148$ 9,384,457$ 12,797,321$ 13,986,083$ 10,031,983$ Source: Town of Avon Finance Department Notes: (1) Fiscal years 2006 through 2010 have been reclassified with implementation of GASB Statement No. 54 in fiscal year 2011. Fiscal Year Fiscal Year 100 TOWN OF AVON, COLORADO TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS Specific Penalties, Interest Delinquent Sales Year General Ownership & Abatements Taxes Tax 2009 3,608,547$ 132,059$ 12,663$ 18,973$ 5,104,620$ 2010 4,187,345 117,354 6,566 1,387 5,120,543 2011 3,689,677 93,596 (42,784) 25,414 5,461,559 2012 2,953,002 92,105 1,805 (19,593) 5,607,160 2013 2,935,986 96,850 5,421 875 6,492,756 2014 2,824,449 112,848 (64,246) 6 7,777,302 2015 2,783,905 113,308 7,124 172 8,320,021 2016 3,310,530 119,483 4,491 - 8,985,661 2017 2,870,600 99,498 5,555 22 8,868,497 2018 3,259,270 105,234 1,106 181 9,261,599 Utility Franchise Accommodations Real Estate Year Tax Tax Tax Transfer Tax Total 2009 129,118$ 371,192$ 570,996$ 1,761,980$ 11,710,148$ 2010 146,852 361,530 627,782 2,159,525 12,728,883 2011 125,155 367,778 746,026 1,616,982 12,083,403 2012 127,060 372,054 733,397 1,707,648 11,574,638 2013 110,474 383,594 888,867 1,574,502 12,489,325 2014 109,441 404,328 995,540 3,764,526 15,924,194 2015 106,786 403,642 1,132,576 2,369,314 15,236,848 2016 102,643 432,488 1,289,879 3,497,602 17,742,776 2017 102,279 419,479 1,333,939 4,448,666 18,148,536 2018 105,881 430,029 1,334,306 3,621,125 18,118,731 Source: Town of Avon Finance Department Property Tax 101 TOWN OF AVON, COLORADO ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Total Gross Levy Collection Vacant Residential Commercial Other Assessed Year Year Land Property Property Property Value 2008 2009 22,764,190$ 120,861,970$ 90,753,760$ 2,030,920$ 236,410,840$ 2009 2010 23,830,510 138,215,140 98,306,000 3,079,680 263,431,330 2010 2011 23,241,510 138,877,350 97,287,710 3,127,070 262,533,640 2011 2012 17,238,450 101,871,140 73,141,140 3,361,120 195,611,850 2012 2013 15,456,680 102,328,980 71,704,020 3,441,730 192,931,410 2013 2014 16,403,340 90,703,150 67,157,140 4,576,530 178,840,160 2014 2015 15,183,630 92,056,060 66,419,690 4,280,110 177,939,490 2015 2016 14,261,780 121,724,600 70,940,420 3,929,820 211,061,910 2016 2017 13,201,140 123,870,280 69,822,570 4,310,460 211,204,450 2017 2018 12,927,680 129,786,330 79,660,040 4,387,310 226,761,360 Less TIF Total Net Direct Actual Value as a Levy Collection District Assessed Tax Taxable Percentage of Year Year Increment (1)Value Rate Value Actual Value 2008 2009 10,266,600$ 226,144,240$ 11.392 1,880,466,430$ 12.57% 2009 2010 17,517,540 245,913,790 11.208 2,125,079,840 12.40% 2010 2011 17,481,590 245,052,050 11.220 2,127,634,050 12.34% 2011 2012 12,538,960 183,072,890 12.072 1,566,445,080 12.49% 2012 2013 12,511,160 180,420,250 11.983 1,564,516,920 12.33% 2013 2014 12,105,380 166,734,780 12.258 1,406,594,920 12.71% 2014 2015 11,501,900 166,437,590 12.207 1,417,405,720 12.55% 2015 2016 16,476,380 194,585,530 11.765 1,806,178,690 11.69% 2016 2017 17,221,870 193,982,580 8.956 1,825,187,770 11.57% 2017 2018 21,857,430 204,903,930 8.956 2,104,646,220 10.77% Source: Eagle County Assessor's Office, Abstract of Assessments (1) The Avon Urban Renewal Authority was established in August, 2007. Notes: Property tax rates are stated in mills per $1,000 of assessed valuation. Other property includes state assessed, agricultural, and abatements and corrections. 102 TOWN OF AVON, COLORADO DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS Taxing Entity 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Town of Avon General Operating 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 General Obligation Debt Service 2.436 2.252 2.264 3.116 3.027 3.302 3.251 2.809 0.000 0.000 Total Direct 11.392 11.208 11.220 12.072 11.983 12.258 12.207 11.765 8.956 8.956 Eagle County 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 Colleges and School Districts Colorado Mountain College 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 Eagle County School District RE-50J 20.414 19.402 19.474 21.601 21.362 20.826 21.517 20.331 25.209 24.912 Metropolitan Districts Avon Metropolitan District 2.705 2.535 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Avon Station Metropolitan District 45.000 45.000 45.000 58.000 58.000 58.000 58.000 58.000 63.000 65.585 Confluence Metropolitan District 45.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Mountain Vista Metropolitan District 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 26.155 Village Metropolitan District 15.000 15.000 40.000 50.000 50.000 50.000 50.000 50.000 50.000 50.000 Other Special Districts Avon General Improvement District No. 1 9.396 9.396 9.396 15.288 15.288 17.557 17.557 14.077 14.005 14.005 Eagle River Fire Protection District 5.550 5.550 5.550 5.650 7.553 9.238 9.392 8.205 9.740 9.828 Eagle Valley Library District 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 Eagle River Water and Sanitation District 0.826 0.795 0.796 0.932 0.931 0.946 0.954 1.375 1.385 1.302 Colorado River Water Conservancy District 0.199 0.166 0.188 0.228 0.242 0.254 0.253 0.243 0.253 0.254 Eagle County Health Services District 2.055 1.780 1.768 1.764 2.023 2.006 2.019 2.008 2.755 2.753 Source: Eagle County Assessor's Office, Abstract of Assessment Notes: Property tax rates are stated in mills per $1,000 of assessed valuation. The Town's general operating mill rate may be increased only by a majority approval of the Town's residents during a general election. Rates for debt service are set based on each year's debt service requirements. Collection Year 103 TOWN OF AVON, COLORADO PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND NINE YEARS AGO Percentage Percentage of Total of Total Taxable Town of Avon Taxable Town of Avon Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value CSB Properties Holdings LLC 9,710,940$ 1 4.28% Traer Creek-WMT LLC 5,967,740 2 2.63%7,508,370$ 3 3.31% Avon MOB LLC 4,803,630 3 2.12% Traer Creek-HD LLC 4,315,330 4 1.90%5,382,540 6 2.38% Avon Wynfield LLC 3,747,820 5 1.65%2,957,460 10 1.31% Beaver Creek Vacation Ownership Plan 3,740,230 6 1.65% Prime Group Mountain Center LLC 3,654,870 7 1.61% SS Venture LLC dba Avon Warehouse 3,304,250 8 1.46% Points of Colorado - Time Share 2,814,190 9 1.24%8,718,880 2 2.94% Riverfront Village Hotel, LLC 2,733,000 10 1.21%11,714,450 1 1.33% Dillon Real Estate Co, Inc 2,412,080 11 1.06%2,174,780 13 0.96% Prime Group Avon LLC 2,181,200 12 0.96% Mountain Vista Condominium Assoc Inc.2,068,550 13 0.91% Avon Partners II, LLC 1,875,350 14 0.83%5,398,100 5 2.34% Public Service Co. of Colorado (Xcel)1,822,780 15 0.80% Traer Creek-L2 LLC - NA 0.00%5,412,970 4 2.67% Chapel Square Ventures LP - NA 0.00%5,296,510 7 1.76% CSC Land LLC - NA 0.00%4,295,830 8 1.34% ARI Mountain Center LLC - NA 0.00%3,412,810 9 1.31% Traer Creek-RP LLC - NA 0.00%2,414,760 11 0.88% Riverview Park Assoc., Inc - NA 0.00%2,204,950 12 0.92% Christie Lodge Assoc Ltd - NA 0.00%2,063,870 14 2.92% East Avon-Hudson LLC - NA 0.00%1,560,930 15 0.69% Total Assessed Value of the Fifteen Largest Taxpayers 55,151,960 24.32%70,517,210 29.83% Total Gross Assessed Value of Other Taxpayers 171,609,400 75.68%165,893,630 70.17% Total Gross Assessed Value of All Taxpayers 226,761,360$ 100.00%236,410,840$ 100.00% Source: Eagle County Assessor's Office 2018 2009 104 TOWN OF AVON, COLORADO PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Ratio of (2)Total Tax (1)Current Percent of Delinquent Total Collections Levy Collection Total Tax Current Taxes Tax Tax To Total Year Year Tax Levy Collections Collected Collections Collections Tax Levy 2008 2009 3,110,763$ 3,060,762$ 98.39%21,861$ 3,082,623$ 99.10% 2009 2010 3,285,710 3,208,908 97.66%1,387 3,210,295 97.70% 2010 2011 2,789,855 2,704,440 96.94%4,970 2,709,409 97.12% 2011 2012 2,250,055 2,209,593 98.20%(19,296) 2,190,298 97.34% 2012 2013 2,202,287 2,160,634 98.11%875 2,161,509 98.15% 2013 2014 2,083,835 2,042,508 98.02%6 2,042,514 98.02% 2014 2015 2,071,895 2,029,571 97.96%172 2,029,743 97.97% 2015 2016 2,329,489 2,286,146 98.14%- 2,286,146 98.14% 2016 2017 1,777,498 1,736,538 97.70%22 1,736,560 97.70% 2017 2018 1,876,652 1,829,624 97.49%181 1,829,805 97.50% Source: Town of Avon Finance Department Notes: (1) Taxes are due and payable on January 1 based on the prior year's assessed valuation. (2) Information on outstanding delinquent taxes is not available. 105 TOWN OF AVON, COLORADO RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS General Special Certificates Fiscal Obligation Assessment Revenue of Capital Year Bonds Bonds Bonds Participation Loans Leases 2009 3,714,230$ -$ 2,050,000$ 997,500$ 7,075,000$ 503,368$ 2010 2,842,835 - 1,670,000 3,310,000 6,825,000 335,205 2011 2,411,440 - 1,275,000 3,195,000 6,565,000 420,063 2012 1,960,045 - 870,000 3,075,000 6,295,000 476,227 2013 1,498,650 - 7,270,000 2,950,000 - 516,378 2014 1,017,255 - 6,520,000 2,825,000 - 547,990 2015 520,860 - 6,200,000 6,280,000 - 438,024 2016 - - 5,790,000 12,235,000 - 325,518 2017 - - 8,225,362 11,675,000 - 566,231 2018 - - 7,649,283 11,045,000 - 659,358 Certificates Total Percentage Fiscal of Capital Primary of Personal Per Year Participation Leases Government Income Capita 2009 2,992,500$ 20,954$ 17,353,553$ 0.69%2,582$ 2010 3,419,606 8,621 18,411,267 0.73%2,856 2011 3,302,110 377,753 17,546,366 0.70%2,477 2012 3,174,614 326,774 16,177,660 0.64%2,531 2013 3,047,119 303,251 15,585,398 0.62%2,440 2014 2,914,623 244,259 14,069,127 0.56%2,195 2015 2,777,127 185,937 16,401,948 0.65%2,534 2016 2,605,000 125,825 21,081,343 0.84%3,241 2017 2,465,000 63,864 22,995,457 0.92%3,603 2018 2,320,000 - 21,673,641 0.86%3,314 Source: Town of Avon Finance Department Governmental Activities Business-Type Activities 106 TOWN OF AVON, COLORADO DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT DECEMBER 31, 2018 Estimated Estimated Share of Debt Percentage Overlapping Government Unit Outstanding Applicable a Debt Debt Repaid With Property Taxes Confluence Metropolitan District 21,875,000$ 100.00%21,875,000$ Eagle County School District RE-50J 269,781,446 7.54%20,344,432 Eagle River Fire Protection District 22,800,000 21.85%4,980,774 Other Debt Eagle County 13,145,000 7.54%991,275 Traer Creek Metropolitan District 31,125,000 100.00%31,125,000 Subtotal - Overlapping debt 79,316,480 Town of Avon Direct Debt - Total Direct and Overlapping Debt 79,316,480$ Source: Various Governmental Entities, Eagle County Finance Department Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Avon. This process recognizes that, when considering the Town's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. a The basic approach to estimating the applicable percentage of overlapping debt was to divide the assessed value of the portion overlapping the Town to the total assessed value of the overlapping entity. 107 TOWN OF AVON, COLORADO RATIO OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT MARGIN LAST TEN FISCAL YEARS 2009 2010 2011 2012 General Bonded Debt Outstanding General Obligation Bonds 3,215,000$ 2,805,000$ 2,380,000$ 2,380,000$ Actual Taxable Property Value 1,880,466,430 2,125,079,840 2,127,634,050 1,566,445,080 Net Assessed Value 226,144,240 245,913,790 245,052,050 183,072,890 Percentage of General Bonded Debt Outstanding to Actual Taxable Property Value 0.17%0.13%0.11%0.15% Town of Avon Population 6,720 6,447 7,085 6,393 Per Capita 478$ 435$ 336$ 372$ Legal Debt Limit 56,536,060$ 61,478,448$ 61,263,013$ 45,768,223$ Total Debt Applicable to Limit (3,215,000) (2,805,000) (2,380,000) (2,380,000) Legal Debt Margin 53,321,060$ 58,673,448$ 58,883,013$ 43,388,223$ Total Debt Applicable to the Limit as a Percentage of Legal Debt Limit 5.69%4.56%3.88%5.20% Source: Eagle County Assessor's Office, State of Colorado Division of Local Governments Fiscal Year 108 2013 2014 2015 2016 2017 2018 1,480,000$ 1,005,000$ 515,000$ -$ -$ -$ 1,564,516,920 1,406,594,920 1,417,405,720 1,806,178,690 1,825,187,770 2,104,646,220 180,420,250 166,734,780 166,437,590 194,585,530 193,982,580 204,903,930 0.09%0.07%0.04%0.00%0.00%0.00% 6,388 6,410 6,472 6,505 6,383 6,541 232$ 157$ 80$ -$ -$ -$ 45,105,062$ 41,683,695$ 41,609,398$ 48,646,382$ 48,495,645$ 51,225,982$ (1,480,000) (1,005,000) (515,000) - - - 43,625,062$ 40,678,695$ 41,094,398$ 48,646,382$ 48,495,645$ 51,225,982$ 3.28%2.41%1.24%0.00%0.00%0.00% Fiscal Year 109 TOWN OF AVON, COLORADO DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Eagle Eagle County Eagle County Eagle County Denver / Eagle Town of Eagle Personal Per Capita County RE-50J Boulder County Avon County Income Personal Median School Consumer Unemployment Year Population Population (In $1,000's)Income Age Enrollment Price Index Rate 2009 6,720 55,269 2,511,100$ 45,430$ 36.30 6,249 208.5 7.30% 2010 6,447 52,197 2,533,900 44,709 36.60 6,181 212.4 8.80% 2011 7,085 54,212 2,521,062 48,618 36.30 6,344 220.3 8.70% 2012 6,393 51,874 2,515,096 48,485 35.20 6,244 224.6 8.20% 2013 6,388 53,811 2,005,000 48,750 36.00 6,549 230.8 5.20% 2014 6,410 52,460 2,644,828 50,416 36.20 6,713 237.2 4.75% 2015 6,472 53,605 3,065,540 57,927 36.50 6,546 240.0 2.10% 2016 6,505 53,989 3,297,869 61,522 36.70 6,901 246.6 2.81% 2017 6,383 52,576 3,486,688 64,581 35.60 6,959 254.9 2.22% 2018 6,541 51,364 N/A 70,384 39.00 6,882 261.9 2.59% N/A - Information not available. Information was compiled by the Demographic Section of the Colorado Division of Local Government, Bureau of Labor Statistics and U.S. Census Bureau. School Enrollment was obtained by Eagle County School District Administration Office based on June Enrollment. Per Capita Personal Income obtained from Bureau of Economic Analysis, Regional Economic Accounts. 110 TOWN OF AVON, COLORADO PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Employer Employees Rank Employees Rank Westin Riverfront Resort & Spa 265 1 205 1 Wal-Mart 258 2 200 2 Home Depot 107 3 133 4 Maya, Mexican Kitchen 150 4 NA NA City Market 143 5 115 5 Eagle River Water & Sanitation 116 6 92 7 Christie Lodge 103 7 76 9 Town of Avon 92 8 104 6 Colorado Mountain Medical - Avon 68 9 NA NA Sheraton Mountain Vista 50 10 87 8 Finnegan's NA NA 71 10 Restaurant Avondale NA NA 140 3 Sources: Various Town of Avon businesses, Department of Labor 2018 2009 111 TOWN OF AVON, COLORADO COMMERCIAL AND RESIDENTIAL CONSTRUCTION LAST TEN FISCAL YEARS Total Total Building Permits Square No. of Construction Year Issued Footage Value Units Value Value 2009 91 - 725,000$ 3 8,683,371$ 9,408,371$ 2010 112 16,517 3,215,036 7 9,806,550 13,021,586 2011 125 2,210 922,600 9 8,412,190 9,334,790 2012 126 54,250 11,400,000 8 2,448,500 13,848,500 2013 159 217,293 27,121,876 12 9,027,760 36,149,636 2014 156 - 1,500,000 10 13,735,900 15,235,900 2015 153 114,614 14,336,000 10 6,970,000 21,306,000 2016 158 90,309 21,525,147 7 8,551,360 30,076,507 2017 167 60,043 29,298,052 6 18,930,069 48,228,121 2018 164 93,579 37,542,440 20 15,120,198 52,662,638 Source: Town of Avon Community Development Department Commercial Construction Residential Construction 112 TOWN OF AVON, COLORADO FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2009 2010 2011 2012 2013General Government Administration 3.75 3.75 3.75 2.75 3.75 Human Resources 2.00 2.00 2.00 2.00 2.00 Finance 7.00 8.00 8.00 8.00 8.00 Nondepartmental 6.00 5.00 3.00 1.00 1.00 Community Development 7.75 7.75 6.00 5.00 4.00 Police 22.00 22.00 20.00 20.00 20.00 Public Works: Engineering 3.00 3.00 3.00 2.00 2.00 Buildings and Facilities 4.00 3.75 2.75 2.75 3.00 Roads and Bridges, Parks 17.00 16.25 16.25 15.25 16.00 Transportation 8.00 4.50 4.35 4.35 4.00 Fleet Maintenance 13.10 13.10 9.25 7.25 8.00 Recreation 8.00 7.00 8.00 9.00 6.00 Total 101.60 96.10 86.35 79.35 77.75 2014 2015 2016 2017 2018General Government Administration 4.75 4.75 4.60 4.60 4.60 Human Resources 2.00 3.00 3.00 3.00 3.00 Finance 8.00 8.00 8.00 8.00 9.00 Nondepartmental 1.00 1.00 1.00 1.00 1.00 Community Development 4.00 4.00 4.00 5.00 6.00 Police 20.00 20.00 20.40 20.40 20.40 Public Works: Engineering 2.00 2.00 2.00 2.00 2.00 Buildings and Facilities 3.00 4.00 4.00 5.00 5.00 Roads and Bridges, Parks 14.00 14.00 15.00 16.00 15.00 Transportation 4.00 6.00 6.00 6.00 6.00 Fleet Maintenance 8.00 8.00 8.00 8.00 8.00 Recreation 7.00 9.00 9.00 10.00 10.00 Total 77.75 83.75 85.00 89.00 90.00 Source: Town of Avon Budget Full-time Equivalent Employees as of December 31 113 TOWN OF AVON, COLORADO OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2009 2010 2011 2012 Town of Avon Facilities and Services: Miles of Streets 23.73 23.73 23.73 23.73 Number of Street Lights 433 454 632 632 Culture and Recreation: Miles of Bike/Pedestrian Paths 5.60 5.60 8.75 8.75 Miles of dirt, singletrack trails 0.00 0.00 0.00 0.00 Parks / Lakes 5/1 5/1 5/1 5/1 Park Acreage 672 672 672 672 Tennis/Volleyball /Basketball Courts/Pickleball Courts 4 / 3 / 3 4 / 3 / 3 4 / 2 / 3 4 / 2 / 3 Recreation Centers 1 1 1 1 Softball / Soccer Fields 1 / 2 1 / 2 1 / 2 1 / 2 Playgrounds 4 4 4 4 Performance Art Pavilion Police Protection: Number of Stations 1 1 1 1 Number of Police Personnel and Officers 21 20 18 20 Number of Patrol Units 13 15 15 16 Number of Law Violations: General Ordinance Violations 168 157 218 396 Traffic Violations 287 831 1,204 495 Parking Violations 13 379 285 110 Facilities and Services Not Included in the Reporting Entity: Libraries: Number of Libraries / Volumes 1 / 79,560 1 / 80,054 1 / 83,008 1 / 82,193 Water System: Miles of Water Mains 24.99 24.99 24.99 24.99 Number of Service Connections 3,787 3,802 3,799 3,814 Daily Average Consumption in Gallons 687,693 672,789 687,099 589,567 Maximum Daily Capacity of Plant in Gallons 10MGD 10MGD 10MGD 10MGD Sanitary Sewer System: Miles of Sanitary Sewers 33.44 33.44 33.44 33.44 Number of Treatment Plants 1 1 1 1 Number of Service Connections 3,913 3,916 3,933 3,953 Maximum Daily Capacity of Treatment Plant in Gallons 4.3MGD 4.3MGD 4.3MGD 4.3MGD Education: Number of Elementary Schools / Instructors 1 / 23 1 / 23 1 / 23 1 / 23 Fire Protection: Number of Stations 9 9 9 8 Number of Fire Personnel and Officers 47 56 55 55 Number of Calls Answered 2,262 2,167 2,198 2,089 Number of Inspections Conducted 397 141 166 190 Fiscal Year 114 2013 2014 2015 2016 2017 2018 23.73 23.73 23.73 23.73 23.73 23.73 632 613 619 634 646 646 8.75 8.82 8.82 9.32 9.32 9.36 0.00 11.00 11.00 11.00 11.00 11.00 5/1 5/1 5/1 5/1 5/2 5/2 672 672 672 672 672 672 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 1 1 1 1 1 1 1 / 2 1 / 2 1 / 2 1 / 2 1 / 2 1 / 2 4 4 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 20 20 21 23 23 23 16 16 15 15 15 15 207 438 384 419 91 118 285 372 314 543 446 142 165 366 282 234 147 59 1 / 79,405 1 / 80,239 1 / 79,226 1 / 77,490 1 / 78,779 1 / 77,137 24.99 24.99 24.99 24.99 24.99 24.99 3,831 3,897 3,917 3,917 3,980 3,980 675,728 706,833 706,833 709,478 712,521 718,731 10MGD 10MGD 10MGD 10MGD 10MGD 10MGD 33.44 33.44 33.44 33.44 33.44 33.44 1 1 1 1 1 1 3,969 4,038 4,086 4,086 4,118 4,118 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 1 / 27 1 / 25 1 / 27 1 / 47 1 / 62 1 / 44 5 5 5 6 6 5 66 64 67 68 68 70 2,244 2,357 636 670 644 554 154 154 122 175 179 166 Fiscal Year 115 THIS PAGE INTENTIONALLY LEFT BLANK TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Preston Neill, Deputy Town Manager Date: May 28, 2019 Topic: RESOLUTION 19-12 APPROVING A CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE ACTION BEFORE COUNCIL: Council is asked to take action on Resolution 19-12 Approving a Cultural, Arts and Special Events Committee. PROPOSED MOTION: “I move to approve [with or without modifications] Resolution 19-12 Approving a Cultural, Arts and Special Events Committee.” SUMMARY: On February 26, 2019, Council adopted Resolution 19-05 approving a Cultural, Arts and Special Events (CASE) Committee. At the May 14, 2019 Council meeting, Council asked staff to prepare a resolution that would amend the CASE Committee Authority and Procedures and officially replace Resolution 19-05. More specifically, Council asked for the “registered elector” qualification to be removed from the “Qualification of Voting Members” section and replaced with an “Eagle County resident” qualification. Based on that direction, Resolution 19-12 has been prepared for Council consideration and is attached to this memorandum. ATTACHMENT: Resolution 19-12 RESOLUTION 19-12 APPROVING A CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE WHEREAS, the Town of Avon, Colorado (the “Town”) is a home rule municipality and political subdivision of the State of Colorado (the “State”) organized and existing under a home rule charter (the “Charter”) pursuant to Article XX of the Constitution of the State; and WHEREAS, the Town Council finds that the Ad Hoc Special Events Committee has provided valuable and important review, research and advisory functions with regard to special event planning and programming for the Avon community and desires to create a permanent standing advisory committee to continue with these efforts; and WHEREAS, Section 11.2 of the Charter states that Council may create any boards or commissions including an advisory committee; and WHEREAS, the Avon Town Council finds that special events promote the local community and character of Avon as well as promote the local economy and that the establishment of a permanent Cultural, Arts and Special Events Committee will promote the health, safety and general welfare of the Avon community; and NOW THEREFORE, the Avon Town Council, hereby RESOLVES to create the Cultural, Arts and Special Events Committee as set forth in Exhibit A: Cultural, Arts and Special Events Committee Authority and Procedures, attached hereto. ADOPTED May 28, 2019 by the AVON TOWN COUNCIL By:_______________________________ Attest:_________________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk Cultural, Arts and Special Events Committee Adopted February 26, 2019 Page 1 of 3 EXHIBIT A: CULTURAL, ARTS AND SPECIAL EVENTS COMMITTEE AUTHORITY AND PROCEDURES 1. Establishment, Purpose and Duties. There is hereby established the Cultural, Arts and Special Events Committee (“CASE”) of the Town. The purposes and duties of CASE are as follows: (a) To provide advice concerning the Cultural Plan for the Town of Avon, as may be amended from time to time; (b) To review, research and provide guidance and advice on culture, arts and special event programming in the Town of Avon; (c) To review applications for Town funding allocated for special events and provide recommendations to the Avon Town Council, and to develop applications forms and procedures and review criteria related to such funding applications; (d) To conduct surveys and prepare reports related to special events as appropriate and as directed by Council; (e) To attend joint meetings with the Avon Town Council to review past, present and future special events, review and evaluate implementation of the Cultural Plan, review annual appropriations to support culture, arts and special events, and to review policies, procedures and practices for culture, arts and special events and CASE; and, (f) To perform such other tasks related to culture, arts and special events in or near Avon as the Avon Town Council may direct. 2. Membership. CASE shall be composed of seven (7) Voting Members and two (2) Ex-Officio Non- Voting Council members appointed by Council. 3. Qualification of Voting Members. Eagle County residents shall be eligible for appointment as Voting Members, provided that at least four (4) Voting Members shall be registered electors of the Town or owners or representatives of an existing business with a physical location and address in the Town of Avon at the time of their appointment to CASE. Persons having experience with special events, event site planning and design, culture, arts or local business which is of particular value to CASE should be preferred over persons who do not. Appointments shall be made by Council in February, or as soon as thereafter as possible, after posting notice to solicit interested persons. Council shall appoint four (4) persons in odd numbered years and three (3) persons in even numbered years to fill Case seats. 4. Qualification of Ex-Officio Non-Voting Members. Council members shall be eligible for appointment to the two (2) Ex-Officio Non-Voting seats. Appointments shall be made by Council in January of odd numbered years after the election and seating of Council members, or as soon thereafter as possible, and shall be made at the same time as appointments of Council members to other committees. The term of office for Ex-Officio Non-Voting Members shall be two (2) years until the bi-annual appointment of Council members to committees. Ex-Officio Non-Voting Members shall Cultural, Arts and Special Events Committee Adopted February 26, 2019 Page 2 of 3 have the equal right to participate at CASE meetings and equal right to receive all CASE materials and notices of CASE meetings, but shall not have any right to vote on recommendations, advisory matters, or other actions of CASE. 5. Quorum. Four (4) Voting Members of CASE shall constitute a quorum for the transaction of business, but in the absence of a quorum, a lesser number may adjourn any meeting to a later time or date. In the absence of all Voting Members, any staff member may adjourn any meeting to a later time or date. 6. Term. The term of office for a Voting Member shall be two (2) years on an overlapping tenure. A Voting Member of CASE who ceases to possess the qualifications for office that the Voting Member possessed at the time of appointment may be permitted by the Council to serve until the end of the appointed term, provided that the CASE member continues to reside in Eagle County. A member of CASE may be removed by Council pursuant to Section 8 Removal from Office, below. 7. Vacancies. A vacancy on CASE shall occur whenever a member of CASE is removed by the Council, dies, becomes incapacitated and unable to perform the required duties for a period of ninety (90) days, resigns, ceases to meet the qualifications of CASE and is not permitted by Council to serve until the end of the existing term or is convicted of a felony. In the event a vacancy occurs, the Council shall appoint a successor to fill the vacancy who shall serve the remainder of the term of the former member after posting notice of such vacancy to solicit interest from qualified persons. 8. Removal from Office. Any member of CASE may be removed for just cause at the pleasure of the Town Council by a majority vote of the entire Council in office at the time the vote is taken. Just cause shall include misconduct, conduct unbecoming of a Town official, violation of the Town Code of Ethics, inefficiency or more than two (2) unexcused absences within a twelve-month period. Prior to removal, Council shall conduct a hearing and shall provide written notice to the CASE member stating the grounds for removal at least three (3) days prior to the hearing. 9. Officers. CASE shall select its own Chairperson and Vice-Chairperson. The Chair or, in the absence of the Chair, the Vice-Chair, shall be the presiding officer of its meetings. In the absence of both the Chair and the Vice-Chair from a meeting, the Voting Members present shall appoint a Voting Member to serve as Acting Chair at the meeting. 10. Compensation. All members of CASE shall serve with compensation and benefits, if any, as may be established by the Council and shall be reimbursed for all authorized personal expenses incurred while performing duties as a CASE member. 11. Staff. The Town Manager shall designate Town staff to serve as the staff of CASE and shall provide for the service of a recording secretary who shall act in the capacity of secretary for CASE. 12. Rules and Regulations. CASE shall operate in accordance with its own rules of procedure; provided, however, that CASE shall submit its proposed rules or any amendment to the rules to the Council, which by motion shall approve the rules or amendment and direct their adoption by CASE or disapprove the proposal with directions for revision and resubmission. The rules shall incorporate and comply with the Colorado Open Meetings Law, Colorado Open Records Act, and the Colorado Municipal Records Retention Schedule as such are adopted and implemented by the Town of Avon. The rules shall be filed with the Town Clerk and maintained in the records of the Town and shall be Cultural, Arts and Special Events Committee Adopted February 26, 2019 Page 3 of 3 subject to public inspection. CASE may provide for certain variances, exceptions and exemptions from the requirements of its rules and regulations. 13. Meetings. CASE shall meet in accordance with the rules of procedure governing CASE and otherwise upon the call of the Chairperson or, in the absence of the Chair, by the Vice-Chairperson. All meetings shall be held at the offices of the Town, unless otherwise specified, with adequate notice given to all interested parties. 14. Appropriation Authority. CASE shall not have authority to appropriate or spend Town of Avon funds. CASE may provide recommendations to the Events Manager, Town Manager and/or Avon Town Council with regard to any annual budget for special events, expenditures related to the annual applications in response to the special events request for proposal, Town staff support for special events and capital improvements related to events. 15. Council Amendments. Council reserves the right to amend, increase, reduce or change any or all of the powers, duties and procedures of CASE. TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Preston Neill, Deputy Town Manager Date: May 28, 2019 Topic: INTERVIEWS OF CULTURAL, ARTS, AND SPECIAL EVENTS COMMITTEE CANDIDATES AND APPOINTMENT OF 7 MEMBERS ACTION BEFORE COUNCIL: Council is asked to interview and appoint candidates to fill seven spots on the newly founded Cultural, Arts and Special Events (CASE) Committee. PROPOSED MOTION: “I move to appoint [four candidate names] to the CASE Committee, with terms expiring on February 1, 2021. I further move to appoint [three candidate names] to the CASE Committee, with terms expiring on February 1, 2020. Finally, I move to appoint Mayor Pro Tem Amy Phillips and Councilor Jake Wolf as the ex-officio non-voting Council members to the CASE Committee.” SUMMARY: At the May 14, 2019 Council meeting, Council interviewed the following CASE Committee applicants: Arzu Basyildiz, Pedro Campos, Chris Cofelice, Jason Denhart, Julie Harris, Lisa Mattis and Kathy Ryan. At the conclusion of those interviews, Council continued the interviews and appointments to the May 28, 2019 Council meeting to allow for applicants Ruth Stanley and Timothy Haley to be interviewed and for staff to bring to Council a resolution that would amend the CASE Committee Authority and Procedures. More specifically, Council asked for the “registered elector” qualification to be removed from the “Qualification of Voting Members” section and replaced with an “Eagle County resident” qualification. Based on that direction, Resolution 19-12 has been prepared for Council consideration during Tuesday’s Council meeting. If approved, it would officially replace Resolution 19-05. According to Resolution 19-12, the CASE Committee shall be composed of seven (7) voting members and two (2) ex-officio non-voting Council members appointed by Council. It is Council’s prerogative to increase or decrease membership. The term of office for each member shall be two years on an overlapping tenure. During this initial appointment of CASE Committee membership, it will be necessary for Council to appoint staggered terms. More specifically, initial appointment of membership will include appointment of four members to two-year terms and three members for one-year terms. The purposes and duties of the CASE Committee are as follows: • To provide advice concerning the implementation of the Cultural Plan for the Town of Avon, as may be amended from time to time; • To review, research and provide guidance and advice on event programming in the Town of Avon; • To review applications for Town funding allocated for events and provide recommendations to the Avon Town Council, and to develop applications forms and procedures and review criteria related to such funding applications; • To conduct surveys and prepare reports related to special events as appropriate and as directed by Council; • To attend joint meetings with the Avon Town Council to review past, present and future events, review and evaluate implementation of the Cultural Plan, review annual appropriations to support events, and to review policies, procedures and practices for events and the CASE; and, • To perform such other tasks related to special events in or near Avon as the Avon Town Council may direct. Per Section 3 of the CASE Committee Authority and Procedures, “Eagle County residents shall be eligible for appointment as Voting Members, provided that at least four (4) Voting Members shall be registered electors of the Town or owners or representatives of an existing business with a physical location and address in the Town of Avon at the time of their appointment to CASE.” All applicants are residents of Eagle County and therefore eligible for appointment. Please note that “persons having experience with special events, event site planning and design, culture, arts or local business which is of particular value to CASE should be preferred over persons who do not.” Officers, meeting schedule and Committee rules will be determined once membership is established and the Committee meets. Resolution 19-12 identifies that the CASE Committee “shall operate in accordance with its own rules of procedure.” Furthermore, the CASE Committee is required to submit to Council, for review and approval, its proposed rules. CANDIDATES AND INTERVIEW PROCESS: The Town received nine applications for seven seats on the CASE Committee. The following individuals have submitted completed CASE Committee Applications: • Arzu Basyildiz • Pedro Campos* • Chris Cofelice* • Jason Denhart • Timothy Haley* • Julie Harris • Lisa Mattis* • Kathy Ryan* • Ruth Stanley* *Denotes service on the sunset Ad Hoc Special Events Committee The information received from applicants is attached to this report for your review as Attachment B. During Tuesday’s meeting, scheduled to begin at approximately 5:55 p.m., Council will conduct seven- minute interviews of applicants Timothy Haley and Ruth Stanley. ATTACHMENTS: Attachment A – Applicant Information ATTACHMENT A ATTACHMENT A Professional Resume www.zehren.comMarch 21, 2019 As a State of Colorado licensed landscape architect with twenty two years of diverse professional experience, Pedro is committed to work that applies the principles of sustainability to innovate beyond conventional development and land use planning. Pedro’s professional experience has been extremely diverse in the fields of land planning and landscape architecture. He has significant direct work experience in large scale community planning, site specific detail design, and project implementation. He has particular professional strengths in project management, master planning and visioning, site specific planning , landscape design, public speaking, community facilitation/communication and consensus building. He has specialized in the master planning and execution of resort hospitality and recreation projects working closely with developers, investors, local municipalities, agencies, and districts. He has made several important contributions toward improving the quality of the surrounding human and natural environment with projects that emphasize water conservation, regional appropriateness, driven by a sustainable design approach and underlying ecological principles. PROFESSIONAL EXPERIENCE: Principal Landscape Architect / Land Planner, Zehren and Associates, Inc - January 2015 - Present Landscape Architect / Land Planner, Zehren and Associates, Inc - April 2010 to January 2015 Senior Landscape Architect / Land Planner, VAg, Inc Architects & Planners - July 2004 to April 2010 Associate & Landscape Architect, Design Workshop, Inc - March 1997 to June 2004 Environmental Planner, Sapphos Environmental - Feb. 1996 to Feb. 1997 REPRESENTATIVE PROJECTS INCLUDE: • Town Farm Master Plan, Todos Santos, Baja Sur, Mexico • Gerald R. Ford Amphitheater Renovation, Vail, Colorado • Ford Park Improvements, Vail, Colorado • Hyatt Regency Hotel, Changbaishan, Jilin Province, China • Finca Powers, Medellin, Colombia • The Blake Hotel, Taos Ski Valley, New Mexico • River Edge Colorado Community, Garfield Count , Colorado • Riverfront Lodge and Townhomes, Avon, Colorado • Lake Fork Stream Restoration, Taos, New Mexico • Main Street Pedestrian Mall, Avon, Colorado • Eagle River Park, Eagle, Colorado • Nottingham Park Master Plan, Avon, Colorado • EagleVail Parks Master Plan / Pavilion Park Playground, EagleVail, Colorado • Town Park Master Plan, Dillon, Colorado • Steamboat Springs Sub-Area Mountain Town Plan, Steamboat Springs, CO • Water Conservation and Xeriscape Demonstration Gardens, Eagle, Colorado • Avon Road Landscape and Streetscape Improvements, Avon, Colorado • Okemos Pointe Apartment Community, East Lansing, Michigan • Common Ground Affordable Housing Study, Vail, Colorado • Retreat on the Blue, Silverthorne, Colorado • Drake Landing, Frisco, Colorado • Girdwood Commercial Areas and Transportation Plan, Anchorage, Alaska • Traer Creek Plaza (LEED Certified) Landscape Design, Avon Colorado • Sunset View Cemetery Master Plan, Eagle, Colorado • Freedom Park Recreational Fields Master Plan, Edwards, Colorado EDUCATION Masters of Landscape Architecture, California State Polytechnic University, Pomona, CA 1996 Bachelor of Integrated Arts, Pennsylvania State University, University Park, PA 1993 REGISTRATION Landscape Architect, State of Colorado # 373 AWARDS ASLA Honor Award for Excellence in Landscape Architecture Study Pedro Campos, Principal, Land Planner / Landscape Architect ATTACHMENT A ATTACHMENT A PO Box 754 • EDWARDS, C0 81632 PHONE 407-920-8681 • E-MAIL CCOFELICE@WESTINRIVERFRONT.COM Chris Cofelice Results oriented hotel sales and marketing executive with proven success in top-line revenue growth, implementing and executing group, leisure and revenue management strategies while providing exceptional customer service. Experience Westin Riverfront Resort & Spa Avon, CO AAA 4-diamond, 240 rooms, 7,500 sq. ft. meeting space July 2015-Present  Responsible for event programming within the resort including Nature at Night series with Walking Mountains, special events with Mikaela Shiffrin, Josiah Middaugh, Chris Anthony and Trista Sutter  Led planning and execution of Westin Riverfront’s 10th Anniversary Party (September 2018) and Solar Eclipse viewing (August 2017) party attracting over 1,000 guests at each event  Direct the overall coordination, functional management and leadership of group and leisure sales, marketing, events, reservations, catering sales and revenue strategies  Responsible for over $28m in top line revenue, including room, F&B and spa/athletic club revenues Vail Marriott Mountain Resort Vail, CO AAA 4-diamond, 344 rooms, 25,000 sq. ft. meeting space January 2012-July 2015 Director of Sales and Marketing  Responsible for over $30m in top line revenue, including $25m in room revenue and $5m in banquet F&B  Implemented multiple new revenue streams including mountain view upgrades, cash & point upgrades for Marriott rewards redemptions and year round $35 resort fee  Collaborated with Marriott Western Region Marketing Office in Scottsdale, AZ for comprehensive marketing plan development and execution, with significant quantifiable results Park Hyatt Beaver Creek Resort & Spa Beaver Creek, CO AAA 4-diamond, 190 rooms, 20,000 sq. ft. meeting space June 2008-January 2012 Senior Sales Manager  2011 finalist, Young Professional of the Year, Vail Valley Success Awards  Hyatt Masters in 2010 Beaver Creek Lodge Beaver Creek, CO AAA 4-diamond, 72 guest rooms, 6,000 sq. ft. meeting space May 2007–June 2008 Sales Manager  Territory included all markets in the eastern half of the United States  Achieved over 100% of group sales quota for 3rd and 4th quarter of 2007 Hyatt Regency Savannah Savannah, GA AAA 3-diamond hotel, 351 guest rooms, 33,000 sq. ft. meeting space ATTACHMENT A January 2006–May 2007 Group Sales Manager  Member of Sales Team of the Year (2006) for all North American Hyatt properties  Managed, developed, and acquired corporate Business travel accounts including $700,000 account Education University of Florida Bachelor of Science in Business Administration with a major in Finance Interests and activities Traveling, snowboarding, hiking, fly-fishing and golfing Volunteer experience  Town of Avon Adhoc Special Events Committee, Habitat for Humanity, Highway Cleanup, Eagle River Cleanup ATTACHMENT A ATTACHMENT A ATTACHMENT A ATTACHMENT A ATTACHMENT A ATTACHMENT A APPLICATION FOR THE TOWN OF AVON CULTURAL, ARTS AND SPECIAL EVENTS (CASE) COMMITTEE DEADLINE FOR APPLICATION: MARCH 25, 2019 Name: ____________________________________________________________________________________ Occupation & Place of Employment: ___________________________________________________________ Mailing Address: ___________________________________________________________________________ Phone: ___________________________________________________________________________________ Email: ____________________________________________________________________________________ Please briefly describe your interest in the Cultural, Arts, and Special Events Committee: __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ What background, experience, or special skills would you bring to the Committee? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Is there anything else we should know about you? __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ Serving as a community leader is an important part of my role as a local business leader. Activating the Culture Plan is significant in building Avon's future and is compelling to me personally . I believe that strong, healthy communities utilize culture, arts and special events to create and sustain economic vitality and a vibrant community experience. I am committed to leading that charge in Avon. 25+ years of leadership of diverse groups of stakeholders in governance, strategy and growth initiatives, strong facilitation and consensus building skills, community engagement and momentum building strengths, and core components of leading people are my specialties. This is an exciting time, full of potential and opportunity to build community and economic development. I'd like to strengthen the relationships between Town Council, the Committee and staff by creating clarity/ agreement on success measures, along with a business plan. ATTACHMENT A LISA MATTIS Chief Executive Officer, Can Do Multiple Sclerosis Lisa Mattis is President & Chief Executive Officer of Can Do Multiple Sclerosis and serves as a Member of the Board of Directors. Can Do MS is a national nonprofit organization that helps families living with MS thrive by delivering health and wellness education programs. Exercise, nutrition, symptom management, communication skills, goal setting, and motivation are core focus areas. Lisa’s single priority is to meet the vision of strengthening every family living with MS by dramatically growing the organization. Mattis spent a decade leading Outward Bound USA National Advancement & Scholarships and led Big City Mountaineers as Executive Director. Her consulting company, Catalyst Philanthropy, continues to transform organizations, build leadership, and strengthen development capacity to enable nonprofits to create momentum and organizational change. Strategic planning, interim executive leadership, board development and training, revenue capacity building, team coaching and organizational alignment are core services. Mattis holds a BA from Fordham University and an MPA from Columbia University’s School of International & Public Affairs. Lisa serves on the National Multiple Sclerosis Society Services Advisory Committee. She chairs the Professional Ski & Snowboard Association (PSIAAASI) Education Foundation Committee and is a member of the Colorado Mountain College Edwards Campus Advisory Committee. She has served on the Board of Directors of the Colorado Fourteeners Initiative and Big City Mountaineers. Lisa is a cyclist, Vail ski instructor, and volunteers extensively across the Vail Valley. ATTACHMENT A ATTACHMENT A ATTACHMENT A APPLICATION FOR THE TOWN OF AVON CULTURAL, ARTS AND SPECIAL EVENTS (CASE) COMMITTEE Name: Ruth Stanley Occupation & Place of Employment: Real Estate Broker, Vail Property Sales, LLC/KW Mailing Address: P. O. Box 9027, Avon, CO 81620 Phone: 970-390-4725 Email: RuthStanley@kw.com Please briefly describe your interest in the Cultural, Arts, and Special Events Committee: Having served on the AdHoc committee for the past two years, I feel we were on the right path to creating a plan for cultural arts and special event programming within the Town of Avon. What background, experience, or special skills would you bring to the Committee? Two years prior experience with the committee. Experience includes thorough and careful review of applications, surveys, and prior year (s) event success for the Town of Avon providing advice, event and funding recommendations to the Town Council and Staff. Is there anything else we should know about you? Committed to working toward a cultural and a “go to” destination for the Town of Avon with direction from the Avon Town Council and staff. *** ATTACHING PREVIOUS SUBMITTAL *** ATTACHMENT A APPLICATION FOR THE TOWN OF AVON AD HOC SPECIAL EVENTS COMMITTEE TERM JANUARY 15 – DECEMBER 31, 2017 DEADLINE FOR APPLICATION: DECEMBER 31, 2016 Name: Ruth Stanley Occupation & Place of Employment: Real Estate Broker, Marketing Manager, Event Planner Mailing Address: P. O. Box 9027, Avon, CO 816320 Daytime Phone: 970-390-4725 Email: VailCoLocal@aol.com Please briefly describe below your interest in the Ad Hoc Committee for Special Events. With the new stage and the new committee I believe I could offer some good personal as well as experienced input and insight into assisting with the future of the town events committee through the group planning, solicitation, budgeting and functioning of our town events. More importantly, would like to assist with making our events successful and profitable for all involved. And putting Avon on the map as a “go to” fun destination. What background, experience, or special skills do you think you can bring to the committee? BACKGROUND & EXPERIENCE Having grown up in the Radio Business (father owned a radio station - WEW) I was automatically thrust into working events for my father’s radio station. We were heavily involved with the Community and held constant “promotions” for the station & clients In college, I worked on the Campus activities committee 4 years where we were Involved with hiring musicians, creating, executing and follow through of all Campus Activities. We attended the NECAA, National Entertainment Campus Activity Association conventions every year where we attended seminars, mingled and met and hired talent for our campuses. Example of how large this convention was, Jackson Browne PLAYED for one of the finale nights one year! (We didn’t have a budget to hire him but Washington University did!) After college I sold for my father’s station, moved into Direct Mail Marketing and was finally hired as an Account Executive for Cable AdNet in St. Louis – the ultimate job in media sales - selling advertising for the likes of ESPN, CNN, Lifetime, and Discovery, to name. We held national promotions promoting the Networks in the St. Louis Market. For Example ESPN: St. Louis Blues Night – we held a function for all of our clients over ATTACHMENT A Ruth Stanley – Page Two 500) in the Arena Cub (where the Blues played) with pregame Live Music, Dinner, Gift Bags and treated them to the hockey game (thanks to ESPN) and then mingled with the Hockey Players themselves. I was also involved with conceiving and executing small promotions as well for my invidividual clients (these clients had budgets of $250,000 + /year for advertising – not really “small” clients). VAIL Experience: 1993 – 1996: KZYR Radio Sales and then Sales Manager, KTUN Radio Sales. Continued my experience in sales and promotions with these stations. Executed or assisted with such promotions for the likes of the Eagle County Fair & Rodeo, Ford Park Concerts, anything community related, we were involved in. Since the radio biz, and working for a Developer, I have created a niche in the market planning and executing weddings, milestone birthday parties, Fundraising, VVCF functions, and concierge activities on the side. Anything to stay involved with “people” and planning. SPECIAL SKILLS: I’m an idea person. I come from years of conceiving & executing the ultimate event. Budgeting: I’m meticulous with sticking to the budget Knowledge: I know the valley. I know people. I know how to follow through. Involved: I NEED to be involved with my community. This committee would be an ideal forum for me to put my past experience and skills to their full potential. WHILE working with prospective event planners, concerts, festivals, etc., and building up my Town’s reputation the THE place to be. PRESENTLY: Real Estate Broker for KW Mountain Properties AND… Working part time on starting my own small business in event planning. Alpenglow Planning and Events (Brochure attached) Familiar with negotiating with vendors as well as clients. Any additional information we should know about you? MAINLY: I’m committed to my community and would like to say I’m a part of it’s growth and prosperity; this appears to be the BEST MEDIUM FOR ME to do that based on my skills & previous experience. PREVOIUS AFFILITATIONS: Founding Member: St. Patrick’s Day Parade Committee, 1976–1993 Judevine Center for Autistic Children, St. Louis, Mo, Father was Co-Founder and President of the Board – I worked with the foundation fundraising as well as assisted with center activities 1970 – 1993. Special Events planner and organizer to the Mayor of St. Louis, MO Mayor Vincent Schoemehl, 1982 – 1984. Personal, City and Political events MAINLY: I’m committed to my community and would like to be apart of it’s growth and Prosperity and this appears to be the BEST MEDIUM FOR ME to do that ATTACHMENT A TOWN MANAGER REPORT TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager RE: Overview of Community Housing Efforts DATE: May 22, 2019 SUMMARY: This report provides an overview of Avon’s Community Housing Plan efforts to date and describes potentials activities going forward. Council input and prioritization on Avon’s Community Housing efforts is requested. “Community Housing” is the term used in Avon’s Plan document. Other terms for housing programs include, “affordable housing,” “attainable housing,” “employee housing,” “workforce housing.” Ordinance No. 19-01 proposes to codify a definition of “Community Housing” as follows: 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. This proposed definition is intentionally vague to all Council to determine the specific terms of a deed restriction; however, the minimum elements of this definition include (1) a deed restriction (2) which permanently restricts the use and occupancy of a residence to (3) long term residential use that (4) can be enforced by Town. BACKGROUND: Council adopted Avon’s first Community Housing Plan in December, 2018. The Community Housing Plan listed a diverse range of strategies to promote community housing. STRATEGIES: Appendix A to the Community Housing Plan included a Work Plan with a series of strategies for implementing Community Housing. Each strategy is discussed as follows: Capital Assessment of Existing Deed Restricted Inventories: Town staff has contacted and worked with the Wildwood South owners’ association whereby Town funded a capital reserve study. Our understanding is that the next step is for the Wildwood South owners’ association to determine a design and cost estimate for certain capital improvements and the Wildwood South property owners may desire the Town to amend the existing deed restriction to increase the price cap as determined appropriate for the cost of capital improvements. Other properties and projects have not been identified as having a need for a capital assessment. Formalize Fee Waiver Program: Ordinance No. 19-01 is presented to Council, which would formalize and codify a review process to waive taxes and fees for Community Housing projects. The details of Ordinance No. 19-01 are included in another memorandum. Code Amendments – ADUs, STRs, Inclusionary Zoning: ADUs (Accessory Dwelling Units): Staff has not yet conducted a formal review of the Avon Development Code and presented findings to the Planning and Zoning Commission for ADUs. ADUs can be a very effective means of promoting additional affordable housing, both to the person(s) using the ADU and to the property owner who may be able to receive additional income from the ADU. ADUs work best for single- Page 2 of 4 family and duplex residential units. Multi-family zoning already allows multiple units and often results in housing configurations that do not easily allow additions or lock-offs to create an ADU, either physically or legally due to more extensive declarations and covenants common to multi-family developments. The vast majority of potential for ADUs are in Wildridge. The Town’s Development Code and the Wildridge Subdivision Declarations both prohibit ADUs. Wildridge does not have an active owners association or declarations committee. The declarations require a substantial super-majority of 75% of property owners to approve an amendment. The Town of Avon is not obligated to follow or enforce the Wildridge declarations; however, Town’s code generally follows the same use regulations as defined in the Wildridge declarations. If Council desired to further pursue allowing ADUs in Wildridge then I would recommend that the Town conduct a property owner’s survey of all property owners to determine preferences to allow or prohibit ADUs. There are approximately 700 separate property owners in Wildridge. It may be possible to conduct a lower cost community survey with a post card notice and on-line survey (each property owner enters a separate code provided on the post card), but it would be important that any property owner survey has a strong response rate. Short Term Rentals: The Town adopted a Short Term Rental Overlay District for the Town Core and valley floor area in 2010. The Wildridge PUD/Subdivision area is not included in the Short Term Rental Overlay and the existing Wildridge declarations do not allow short term rentals. There was some preliminary discussion about prohibiting short term rentals in residential areas as a method of promoting long-term residential use, or at least preventing additional loss of long-term residential use when residences are converted to short term rental use. My recollection is that there was not interest in further considering a change to the current Short Term Rental Overlay District due to concerns about taking away existing short term rental uses. Inclusionary Zoning: Council is considering second reading of an inclusionary zoning ordinance, which is addressed in detail in a separate memorandum from Matt Pielsticker. Industrial Zoning Amendment: An idea which emerged from conversations with potential investors and developers of Community Housing is to revise the Avon Development Code to allow residential uses in the IC - Light Industrial & Commercial zone district by Special Review Use in a manner similar to recent amendments to the PF – Public Facilities zone district. Wildwood Housing Project: Staff has a budget amendment proposed to fund a survey and preliminary site assessment work for the Wildwood parcel owned by the Town of Avon. This would be the first step towards determining the feasibility of the Town’s Wildwood parcel for a potential housing project. The number of units, types of units, potential cost, options for financing and options for public-private partnership would be considered once a feasibility study is completed. There is also a legal question as to whether any potential conveyance of the Town’s Wildwood parcel would require voter approval under the Avon Home Rule Charter. Town staff expects to complete the feasibility study by September. Review Revenue Streams & Evaluate Fund Contributions: The Work Plan includes statements that Town should “Include annual allocation for housing in budget process,” and “Approve fund transfers each year during budget approval.” No specific allocation was made for 2019. The Town does place housing related revenues, such as rents received from Town, in the housing fund. Council direction is requested on Page 3 of 4 whether to determine an annual amount to appropriate for housing efforts. Also, see Other Strategies below for some ideas on dedicated housing fund revenue sources. Participate in Regional Studies, Site Analysis, Forums: This is a general obligation which the Town staff and Town Council has performed. Cultivate Public-Private Partnerships: Town staff has been in contact with the owners of several vacant parcels of land in Avon concerning potential housing projects. Town staff has also received several inquiries from potentially interested developers and investors on using Town property for potential housing projects. Most interested parties have expressed the challenges with economics (cost of land and cost of construction). Town of Avon does not have an inventory of property suitable for housing that can be readily conveyed and has limited funding sources. General investors and developers desire some initial confidential conversations to determine if a project is feasible. Town staff explains the Town’s Opportunity Zone status and thus far, all investors and developers are already aware of the Town’s Opportunity Zone status. Town staff has expressed interest to all potential vacant land owners in discussion public-private housing partnerships. An executive session with Town Council should be scheduled as a next step to review various properties, opportunities and challenges as well as to receive some general direction on Council support for Community Housing Partnerships. Other Strategies: Swift Gulch: Stan Clauson Associates prepared a Town properties study for the Town in 2015 which included a housing analysis for the north portion of Swift Gulch. Physically, housing could be constructed in this area. I suggest that the north end of Swift Gulch would be most appropriate for additional Town owned residential property that could be available for rent to Town employees. Other local governmental entities have increased employee housing stock over the last couple years. Avon currently has one 3- bedroom unit that it owns in Sherwood Meadows and two units available at the former Wildridge Fire Station building, including a 1-bedroom with loft and a 2-bedroom. The Town also owns the former Avon Fire Station building (351 Benchmark) which has 12-bedrooms which the Town has rented to a third party for workforce housing. Increasing Avon’s stock of residential units owned by the Town to make available for rent by Town employees would be a fairly traditional and common component to a comprehensive housing plan. Avon Direct Purchaser Assistance: The Town could consider establishing a program to offer direct financial assistance to qualified purchasers in excess of minimum down payment requirements which would then include a mandatory deed restriction with price control to be placed on the property. The Town’s housing fund is projected to have a year-end balance of $620,000. Preliminary discussions with area housing officials indicates that the “buy-down” from free market values to a deed-restricted value may be around $70,000 to $75,000 per unit. More research would need to be conducted to determine appropriate values to offer to “buy-down” an existing free-market residential unit to a deed-restricted unit. The most significant advance of this type of program is that it does not require construction or financing to establish additional deed-restricted residential units. Dedicated Revenue Sources for Housing: The Town could consider using a portion of existing or potential new revenue sources to be dedicated to a Community Housing Fund. A portion of the Real Estate Transfer Tax could be dedicated towards a Community Housing Fund. The Real Estate Transfer Tax is estimated to generate approximately $3.5 million. A dedication of 5% of this fund would provide a Page 4 of 4 significant revenue source in the annual amount of $175,000. This could be accomplished by either including the allocation in the 2020 budget or by amending Avon Municipal Code Section 3.12.110 – Allocation of Revenue to formalize allocating a percentage of Real Estate Transfer Tax to a Community Housing Fund. A potential new revenue source for consideration is a 2% increase on Sales Tax for Short Term Rentals (not including hotels and timeshares) with the revenue stream dedicated to a Community Housing Fund. A 2% tax on Short Term Rentals is estimated to generate approximately $52,000 per year. There are other potential taxes, such as an excise tax based on the square footage of new construction, which could be considered and dedicated to a Community Housing Fund. Council direction is requested on whether Council has any interest in further considering, discussing or exploring dedicated funding sources or potential new revenue sources that could be dedicated to Community Housing. REQUESTED ACTION/DIRECTION: Council direction is sought on the Avon Community Housing Plan – Work Plan, with specific direction on prioritizing Town’s efforts and indicating which strategizes and work tasks are supported by Council. RECOMMENDATION: I provide the following recommendation regarding the list of Community Housing actions, possibilities and concepts discussed above: 1. Proceed with Ordinance No. 19-01 Tax and Fee Waivers for Community Housing 2. Initiate Code Text Amendment process to amend the IC – Light Industrial and Commercial zone district to allow residential uses by Special Review Use 3. Proceed with Wildwood Parcel site feasibility analysis, determine potential project partners 4. Initiate site feasibility analysis and financial analysis for use of north Swift Gulch site for construction of Town owned employee residences 5. Further research and consider establishing a Direct Purchaser Assistance program to assist to provide financial assistance for purchase of residential units with the placement of a permanent deed restriction and price cap control on such property 6. Further consider dedicating a portion of Real Estate Transfer Tax and further consider an increased tax for Short Term Rentals to establish a dedicated revenue source in the amount of $200,000 to $250,000 per year Thank you, Eric ATTACHMENTS: Appendix A: Avon Community Housing Plan – Work Plan Swift Gulch site analysis by Stan Clauson Associates 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. STAN CLAUSON ASSOCIATES INC landscape architecture • planning • resort design21 MASTER PLAN UPDATETOWN OF AVON November 12, 2015 Swift Gulch- Swift Gulch can accommodate approximately twenty units of workforce housing. These units can be provided in varying sizes, along with adequate parking and storage as well as visitor parking. Additional areas have been provided for site amenities, such as playgrounds, and parking provided for non-residents to access the open space. Concerns of accessibility and the visual impacts of being adjacent to the transportation operations have been considered. While a bus stop is not currently provided adjacent to the transportation operations, it could easily be provided. A dedicated walk with a comfortable slope could connect the housing to the future bus stop. Landscaping would screen the transportation operations from housing. When considering the potential for locating Police at Swift Gulch, Town Council has identiﬁ ed issues with site constraints, visibility, and access. Moreover, locating Police on Swift Gulch drastically reduces the potential for providing workforce housing. For these reasons only workforce housing is being proposed on the Swift Gulch site. One scenario is presented: 1. Swift Gulch Preliminary Site Plan provides for workforce housing. Figure 3: Swift Gulch Workforce Housing Study STAN CLAUSON ASSOCIATES INC landscape architecture • planning • resort design 22 MASTER PLAN UPDATE TOWN OF AVON November 12, 2015 Community and Financial Costs and Opportunities – Swift Gulch Preliminary Site Plan Swift Gulch Preliminary Site Plan Community Costs •Providing workforce housing at Swift Gulch does not create vitality within the core of Town, however, the benefits of new housing in Avon versus down valley will be an economic advantage. •Swift Gulch is on the opposite side of I-70 from the main areas of Town and is perceived to be remote. Educational efforts need to be made to inform the community that the walk time from Swift Gulch to the core is approximately ten minutes. •Along with other efforts to encourage transit ridership throughout Town, residents will need to be encouraged to utilize transit. Financial Costs •Site constraints have been identified, particularly issues with soil stability. Additional soil testing, civil engineering, and specialized construction techniques may be required on top of escalating construction costs. Community Opportunities •Swift Gulch provides an excellent opportunity to provide significant workforce housing within Town limits. An improved pedestrian corridor already exists along Swift Gulch Road which provides easy access to the core in approximately ten minutes. •Workforce housing likely represents the highest and best use as other municipal uses are not viable options. •The Swift Gulch site is adjacent to open space, a key consideration when locating workforce housing. Access to open space provides readily accessible recreational opportunities and allows the workforce housing to enjoy a secluded location. •Swift Gulch is removed from I-70. Meaningful grade change allows for separation to be created between the transportation operations and potential workforce housing. Moreover, the site offers excellent views to the south which would make the workforce housing provided more desirable and unique; solar energy applications should be available. •The site is immediately adjacent to potential transit and Town of Avon facilities, countering the more remote location and providing an opportunity for town employees to live immediately adjacent to work. Financial Costs •Swift Gulch is a Town owned property and construction cost of the workforce housing the only expense to Town. With involvement from other partners, such as the Town of Vail who are looking for shovel ready projects to provide workforce housing, the financial impacts to the Town of Avon are potential reduced. Nottingham Park- Strong support was given at the Public Open House as well as in the Council work session for pursuing enhancements to the Park. This support was provided based on the understanding of the greater opportunity costs of keeping Town Hall at its current location rather than providing community gathering spaces. Purchasing the Skier Building for Town Hall also received conditional support. The ﬁ nancial impacts of the purchase of the Skier Building are not fully known. It is important that the Town be able to negotiate a purchase price that does not over-value the property. The uncertainty of the success of negotiating the right purchase price demands the creation of an alternative which utilizes the existing Fire Station site for Town Hall and/or Police. Ordinance 19‐03 Inclusionary Housing Page 1 of 2 TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Matt Pielsticker, AICP, Planning Director Date: May 28, 2019 Topic: PUBLIC HEARING AND SECOND READING OF ORDINANCE 19‐03, APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE, FOR INCLUSIONARY HOUSING REGULATIONS ACTION BEFORE COUNCIL Before Council is action on Second Reading of Ordinance 19‐03, set to approve amendments to Title 7 of the Avon Municipal Code for Inclusionary Housing Regulations. AVAILABLE ACTIONS ‐ Continue Ordinance 19‐03 to a future meeting. ‐ Approve 2nd Reading of Ordinance 19‐03, thereby approving inclusionary Housing Regulations. RECOMMENDED MOTION “I move to approve second reading of Ordinance 19‐03.” SUMMARY OF CHANGES TO ORDINANCE The first reading of the Ordinance was approved on May 14, 2019. At the meeting Council decided to delay the update to the 2008 Commercial Linkage study and residential study. There was direction to revise the employee mitigation rate from 10% to 20%. Other miscellaneous modifications include:  Purpose clause amendments, including exempting Community Housing Projects.  Redcliff added to list of exceptions to Eagle Valley definition.  Property Management Definition clarifications.  Changes to nomenclature in Table 7.20‐14, Employee Housing Mitigation Formula.  Introduction to prioritization (Subsection (f)) to explain preference is first on‐site housing, then within Avon, etc.  Credit Sheraton Mtn Vista (Section 4) with blended average option as discussed on May 14. The number of credits was doubled in order to adjust to correspond to the 20% mitigation change.  Exemptions Section updated to remove the word ‘redevelopment,’ and added current Development Plan approvals that exist on effective date or are extended per code. Council has discretion to apply this ordinance to any development that does not already have a building permit (i.e. Lot B hotel) or vested rights. The final exemption listed above was added by staff after questions arose to the effectiveness of the ordinance when looking at existing project approvals. If Council agrees with this approach to existing approvals there is nothing to change in the ordinance. If Council wishes to have the ordinance apply to any project that has not pulled a building permit, then the language in Section (c)(4) of the ordinance should be stricken. Ordinance 19‐03 Inclusionary Housing Page 2 of 2 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 Town Council shall use the following review criteria as the basis for a decision 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 that seems to be getting more pressing. They promote the health, safety and welfare of the community by linking new job generation 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 Avon Community Housing Plan (ACHP). The ordinance conforms 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.” ATTACHMENTS 1: Ordinance 19‐03 2: Town Council Staff Reports from May 14, 2019, April 9, 2019, and March 12, 2019 3: Eagle County Housing Tools Matrix 4: Sections from the Town of Avon Community Housing Plan 5: Written Public Comment LINKS Eagle County Affordable Housing Guidelines https://www.eaglecounty.us/Housing/Documents/2014_Housing_Guidelines_May_13/ Avon Comprehensive Plan Master Appendix Tables http://avon.org/DocumentCenter/View/19348/Comprehensive‐Plan‐Master‐Appendix ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – May 28, 2019 Page 1 of 8 TOWN OF AVON ORDINANCE 19-03 APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE FOR INCLUSIONARY HOUSING REGULATIONS RECITALS WHEREAS, the Avon Town Council (“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; 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; WHEREAS, after conducting the noticed Public Hearings, PZC made the required findings to recommend approval of the Application to the Town Council; 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; WHEREAS, pursuant to the home rule powers of the Town, the 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; WHEREAS, the Town Council held public meetings on March 12, 2019, April 9, 2019, and May 14, 2019 to consider the Application and first reading; WHEREAS, the Town Council held a Public Hearing on May 28, 2019, after posting notice as required by law, considered all comments, testimony, evidence, Planning and Zoning Commission recommendations, and staff reports prior to taking action on the Application; WHEREAS, the Town Council finds that changes to Employee Housing Mitigation provides a method of delivering more Community Housing choices to residents and workers in the Town; 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; 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; WHEREAS, former Lot C, Avon Center at Beaver Creek Subdivision, 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 Town Council desires to acknowledge the previous community housing ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – May 28, 2019 Page 2 of 8 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 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 Town Council, or any member of the 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 7.08 - Definitions. is hereby amended to read as follows with underline indicating language to be adopted: 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. Eagle Valley means the area between Vail and Dotsero, not including Redcliff, Burns, Bond, or McCoy. Property Management is a land use category for development that is a hybrid of a condominium and hotel, by being operated as a commercial hotel even though the units are individually owned. Residential use means the use of a building or other structure as a dwelling. Section 3. 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) Purpose. The purpose of this Section is to create housing for workers generated by new development, which is affordable to Eagle Valley workers. This is accomplished through the creation of Employee Housing Mitigation units, deed restricting existing housing units, payment of fees based on the number of workers created by development, and/or exempting Community Housing projects. (b) 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. This Section applies to all entities, including private and non-profit entities. (c) Exemptions. (1) Development within Existing Structures and Changes in Use for Remodeling. ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – May 28, 2019 Page 3 of 8 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 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. (2) Governmental projects and housing projects constructing Community Housing are exempt from this section. (3) Properties with preexisting vested rights are exempt from these requirements. (4) Projects with current Development Plan approvals that are valid on June 28, 2019, and/or extended pursuant to Section 7.16.010(g). (d) Employee Housing Mitigation Formulas When applicable, employee housing mitigation shall be provided in accordance with these standards: To determine the number amount of Employee Housing Mitigation units that must be provided, the following job generation, employee generation, and mitigation rate formulas shall be used: Table 7.20-14 Employee Housing Mitigation Formulas Factor Calculation Commercial Size of development Leasable square feet Jobs generated Workers Required 2.8 per 1,000 sq. ft. Rate x sq. ft./1,000 Employees generated Jobs per employee 1.2 jobs per employee Jobs generated/1.2 Households generated 1.8 employees per unit Employees generated/1.8 Units required Required mitigation 120% mitigation Households Jobs generated x 120% Lodging and Property Management Size of development # of rooms or # of units Jobs generated Workers Required 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 ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – May 28, 2019 Page 4 of 8 Jobs per employee Households generated 1.8 employees per unit Employees generated/ 1.8 Units required Required mitigation 10% mitigation Households Jobs generated x 10% Residential Size of development # of Dwelling Units Workers Required .33 per Dwelling Unit # of units x 0.33 Jobs Per Employee 1.2 Jobs generated/1.2 Required mitigation 20% mitigation Jobs generated x 20% Note: The required employee housing mitigation shall be rounded to the nearest whole number. (e) Methods of Employee Housing Mitigation. (1) 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. (2) For any of the following methods of producing Employee Housing Mitigation, all proposed units 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 Units Type Minimum Size of Unit (Square Footage) Number of Employees Housed Studio 500 1.25 1 bedroom 750 1.75 2 bedrooms 900 2.25 3 or more bedrooms 1,225 3.5 (3) No Credit Given: If the residential square footage of the proposed Employee Housing Mitigation unit(s) is in excess of the minimum required residential square footage, the additional residential square footage shall not be eligible for use as any form of future credit or for the Employee Housing Mitigation. (f) Priorities for Employee Housing Mitigation. The following options for Employee Housing Mitigation are listed in order of preference regarding the types of unit(s) created: ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – May 28, 2019 Page 5 of 8 (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, 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 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 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. Units constructed shall be valued at .75 of the applicable required Employee Mitigation rate. (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) isproposed, the Applicant must obtain the approval of the Town for the specific unit(s) and the deed restriction agreement language for the 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) isadequately 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 Townmay request additional information about the proposed unit(s) as reasonable tomake such a determination. Such approval may contain provisions to ensure that any Employee Housing Mitigation unit(s) subject to a deed restriction meets long term standards for maintenance and affordability. ii.Employee Housing Mitigation units outside of the Town 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. 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. iv.Deed restricted units outside of the Town shall be valued at .75 of the applicable required Employee Housing Mitigation rate. ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – May 28, 2019 Page 6 of 8 (5) Fees-in-lieu, as defined by Town Council resolution and updated every two years, may be provided only for any fractional remainder of the Employee Mitigation requirement generated under this Section totaling less than 1.0 employee, subject to the following requirements: i.Time of Payment and Use of Funds. Payment of the fee in-lieu shall be made to the Town prior to the issuance of any Certificate of Occupancy or TemporaryCertificate of Occupancy 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. (g) Mitigation plan required. The Mitigation plan shall include the following: (1) Calculation and method. The calculation of, and method by which Employee Housing Mitigation units are to be provided, in compliance with Table 7.20-14 and Section 7.20.100(d). (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. (h) 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. (i) 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- ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – May 28, 2019 Page 7 of 8 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 4. Sheraton Mountain Vista. Town acknowledges the housing provided previously as part of the Sheraton Mountain Vista Planned Unit Development and adopts the interpretation that previously constructed housing provides a total of 27.36 employee housing credits, and that a balance of 25.58 employee housing credits shall be available to be applied to satisfy employee housing mitigation requirements for development of Lots 2A, 2B, 3 and 5, Mountain Vista Resort Subdivision. Section 5. 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 6. 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 7. 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 8. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town, that it is promulgated for ATTACHMENT 1 Ord. 19-03 – Amending Avon Municipal Code SECOND READING – May 28, 2019 Page 8 of 8 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 9. 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 May 14, 2019 and setting such public hearing for May 28, 2019 at the Council Chambers of the Avon Municipal Building, located at One Hundred Mikaela Way, Avon, Colorado. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ADOPTED ON SECOND AND FINAL READING on May 28, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Kathryn M Sellers, Town Attorney Ordinance 19-03 Inclusionary Housing Page 1 of 5 TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Matt Pielsticker, AICP, Planning Director Date: May 14, 2019 Topic: FIRST READING OF ORDINANCE 19-03, APPROVING AMENDMENTS TO TITLE 7 OF THE AVON MUNICIPAL CODE, FOR INCLUSIONARY HOUSING REGULATIONS ACTION BEFORE COUNCIL Before Council is action on First Reading of Ordinance 19-03, set to approve amendments to Title 7 of the Avon Municipal Code for Inclusionary Housing Regulations. AVAILABLE ACTIONS - Continue 1st Reading of Ordinance 19-03 to a future meeting, pending additional information. - Approve 1st Reading of Ordinance 19-03, thereby setting a public hearing date of July 9, 2019. RECOMMENDED MOTION “I move to approve first reading of Ordinance 19-03, setting a final reading and public hearing date of July 9, 2019.” SUMMARY OF PREVIOUS TOWN COUNCIL MEETING The April 9, 2019 presentation focused on responses to specific elements of the Ordinance that members of Town Council had questions. Items presented, without any update for Council, include: • Difference between Eagle County worker and a Telecommuter • Additional definitions in the code • Government Inclusion in requirements – Who is exempt? • Funds eligible to be returned in 7 years? • Eagle County Affordable Housing Guidelines UPDATES Pursuant to discusses at the last meeting, staff has progressed on several elements of the Ordinance and are ready to move forward to a second reading pending final direction on the Sheraton Mountain Vista credit section. The following bullet points conclude the remaining topics discussed: • Relevance of the 2008 Eagle County Nexus/Proportionality Analysis for Commercial Development/ Workforce Housing Linkage Following Council’s direction from the last meeting, this study is proposed to be updated, and expanded. See attached proposal (ATTACHMENT 4) from RRC Associates. After initial discussions, the consultants mentioned that the commercial development generation rate numbers are only likely to change slightly, as most business types have not fundamentally changed in the last 11 years. Eagle County is eager to partner on the data collection/commercial linkage portion of this updated and expanded study and would like to contribute to that portion of the contract (approximately $4,750). The new portion of the study includes residential linkage rates. Staff has included this line item in the upcoming general fund budget amendment, scheduled for the next Town Council meeting. The total contract, minus Eagle County’s contribution, is expected to be approximately $10,000. ATTACHMENT 2 Ordinance 19-03 Inclusionary Housing Page 2 of 5 • Single Family and Duplex Regulations Staff still has not included single family and duplex regulations in the proposal and would appreciate some clarity from Town Council whether to include it. No new formulas are proposed at this time because the proposed updated nexus study would calculate size categories for mitigation of single family and duplex houses based on homeowner operations and ongoing maintenance work. That is, the updated nexus study would propose a formula through which Employee Equivalents required for mitigation would be stepped up incrementally based on size of the houses. The fees per employee equivalent would be approved by Council resolution and updated as needed. • Multifamily Employee Generation Rate The currently proposed Multifamily Employee Generation is .33 per dwelling unit, from a Telluride study. This study hypothesized that multifamily units were all subject to short-term rental within their town core. This rate is subject to potential revision with the updated study. The proposed study will not contemplate the short-term rental implications of multifamily developments because of the uncertainty involved (i.e. ratio of units in a rental pool). The Employee Generation number is likely to fall from .33 based upon updated information on straight residential projects. Staff suggests that if the Council choses, short term rental impacts are best handled through a direct tax on short term rentals. • Subdivision regulations Staff is not proposing that these regulations be applicable at the time of property subdivision. This is due in part to the timing of a property subdivision. If a landowner decides to subdivide a large parcel into smaller developable lots the details of the future development would not be available to conjure an accurate Housing Mitigation Plan. The other likely time of property subdivision is during construction, or shortly thereafter, and again this would be an inopportune time to trigger community housing standards because the project would have already gone through a development review. Large, underdeveloped parcels, such as the Village (at Avon) present other unique circumstances that limit implementation of these regulations. The Village (at Avon) has vested property rights until 2039, including a PUD Guide, that outlines the procedure and criteria for review and administrative approval of subdivisions. Therefore, the inclusionary zoning regulations would not be triggered by subdivision unless the property were rezoned to another zone district. The Village (at Avon) has committed to providing 500 employee housing units at full buildout. Today, there are 244 units constructed at Buffalo Ridge. • Sheraton Mountain Vista The Sheraton property was developed as a PUD and the initial phase of the development provided 20 units of employee housing. The undeveloped lots were once part of the PUD that were to be served by those units. Now that those lots are zoned Town Center, the credit earned by those 20 units is subject to debate for future development. Three options are proposed by staff to demonstrate the amount of credit that is available for the undeveloped Sheraton property, which consists of Lots 2A, 2B, 3 and 5, Mountain Vista Resort Subdivision. As drafted in the attached Ordinance, the current Sheraton development would require 14.57 Employee Equivalents, and the reminder of credits available would go to Lots 2A, 2B, 3 and 5. The three credit types are tabulated on the next page. The three methodologies are as follows: o “Bedroom Allocation” would credit the existing 20 employee units based upon bedroom count. The project includes eight (8) studio, eight (8) 1-bedroom, two (2) 2- ATTACHMENT 2 Ordinance 19-03 Inclusionary Housing Page 3 of 5 bedroom, and two (2) 3-bedroom deed restricted units. Based upon the Ordinance formula for number of employees per unit type, the total credit would be 35.5 employees. This would leave 20.93 employee credits to future Lot C Development. This is the formula presented at the April 9, 2019 meeting, and the feedback received by Council indicated that this credit seemed high based on the smaller constructed unit sizes. o “Bedroom Allocation Accounting for Size Difference” takes the ratio of the total square footage of each unit type provided, and compares that to the square footage required if the 20 employee units were built under the proposed Ordinance (i.e. 8 studios x 500 square feet + 8 1-bdrms x 750 square feet). The Ordinance would require approximately 14,250 square feet of housing, and the existing 20 units total 7,712 square feet of housing. This equals approximately 54% of the “Bedroom Allocation” outlined above and would leave 4.65 employee credits for future Lot C development. This credit could accommodate a 69-room hotel project without triggering any additional mitigation. o “Average of the Two” is the average credit of the two formulas and would result in a credit of approximately 12.79 employee credits for future Lot C development. For perspective, this credit would accommodate a 191-room hotel project. Staff suggests that during this meeting Town Council conclude the credit rationale for Lots 2A, 2B, 3, and 5, Mountain Vista Resort Subdivision (“Lot C” in above chart). Please refer to Section 4 of the Ordinance, Page 7 of attachment 1, to see how the credit would be memorialized. • Historic PUD Approval Employee Offsets In Avon’s history, various PUD negotiations have resulted in the provision of employee dwelling units. Staff was asked to quantify them in accordance to the Employee Equivalents that would have been required. Note that the third column expresses the equivalents due at the PUD process only, and some of these projects evolved to have lower densities (resulting in lower requirements) than the requirement show. Of course, the PUDs may also have provided other types of public benefits not captured by this table. Calculation Type Total PUD Credits Credits Available for Lot C Bedroom Allocation 35.5 20.93 Bedroom Allocation Accounting for Size Difference 19.22 4.65 Average of the Two 27.36 12.79 Sheraton Credit Calculation ATTACHMENT 2 Ordinance 19-03 Inclusionary Housing Page 4 of 5 • Development Bonus Regulations The Ordinance has been updated to remove the Development Bonus regulations. At the April 9, 2019 meeting it became clear that this section of the Ordinance should not be mixed with the inclusionary zoning regulations. 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 Town Council shall use the following review criteria as the basis for a decision 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 that seems to be getting more pressing. They promote the health, safety and welfare of the community by linking new job generation 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 Avon Community Housing Plan (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.” Name Units provided Meet Proposed Size? Emp Equivalents Req at PUD Emp Equivalents Provided by units (or $) Brookside PUD 3 yes 8.27 6 Chapel Square PUD 8 No 23.79 16 WR Gandorph PUD 1 yes 0.11 3 Sheraton PUD 20 No 20.2 35.5 Riverfront Original PUD $846,000 N/A 37.73-22.53 16.09 Riverfront 2018 PUD 2 yes 1.46 4.5 PUDs that Provided Employee Housing ATTACHMENT 2 Ordinance 19-03 Inclusionary Housing Page 5 of 5 ATTACHMENTS 1: Ordinance 19-03 2: April 9, 2019 Town Council Staff Report 3: March 12, 2019 Town Council Staff Report 4: Nexus Analysis Proposal from RRC Associates, dated 4/15/19 5: Eagle County Housing Tools Matrix 6: Sections from the Town of Avon Community Housing Plan 7: Public Comment LINKS Eagle County Affordable Housing Guidelines https://www.eaglecounty.us/Housing/Documents/2014_Housing_Guidelines_May_13/ Avon Comprehensive Plan Master Appendix Tables http://avon.org/DocumentCenter/View/19348/Comprehensive-Plan-Master-Appendix ATTACHMENT 2 TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: David McWilliams, AICP, Town Planner Matt Pielsticker, AICP, Planning Director Date: April 9, 2019 Topic: 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 30, 2019. RECOMMENDED MOTION “I move to approve first reading of Ordinance 19-03, setting a final reading and public hearing date of April 30, 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 that seems to be getting more pressing. They promote the health, safety and welfare of the community by linking new job generation 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 ATTACHMENT 2 that incorporates both rental and ownership opportunities, affordable for local working families,” and the Avon Community Housing Plan (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 MARCH 12, 2019 TOWN COUNCIL MEETING The March 12, 2019 presentation and meeting materials focused on the background, supporting documents, scope, applicability, and potential impacts. Specific elements of proposed code were highlighted to spur discussion and individual members of Town Council gave feedback for various parts of the proposed language. Below is a list of those points, with staff comments. • Difference between Eagle County worker and a Telecommuter Staff contacted George Ruther, Housing Director with the Town of Vail, to inquire about how the recent Chamonix housing development addressed this question. For that project, Vail enforces employment with a local business. For the rest of Vail, “The Town does permit telecommuting, sort of, but not entirely, yet. We do have residents in deed restricted housing that receive a pay check from an out of town parent company, but all of their work is local and servicing the local community. For example, this exists in Vail in certain health care positions and several technology positions. Again, the pay check may be coming from Atlanta, however, all the service being provided is local. By contrast, we would not permit a hedge fund manager to work in Vail, get a pay check from New York, and provide all their services to a firm on Wall Street.” Staff feels that the regulations as presented would allow the same type of employment profile as Vail uses in their deed restricted housing. In the future, individual housing projects may merit additional considerations that limit or expand allowances for telecommuters. • Additional definitions Staff included the following definitions in the definitions section of Chapter 7: property management; residential use; community housing (Attachment 1). The community housing definition is the same as the one proposed in Ordinance 19-01, Community Housing Incentives. Code currently includes the following definition that would apply to the Jobs Generated portion of Table 7.20-14, Lodge/Hotel of .8 per room: “Hotel, motel and lodge means a building, excluding bed and breakfast, containing any room or group of rooms used primarily for short-term transient lodging for a total continuous duration of less than thirty (30) days and which may include accessory uses, such as offices, laundry facilities, recreational facilities, lobbies, lounges, kitchen and dining facilities, meeting rooms, retail and other similar accessory uses commonly associated with hotels, motels and lodges.” • Subdivision regulations Subdivision regulations are not currently proposed in the Code Text Amendment (CTA) because the proposed language adequately captures the perceived needs of the town, and staff suggests keeping the language as proposed. Development application submittal is the appropriate timing since that is when details of a new development application are finalized for review. • Multifamily Employee Generation Rate Staff proposed a Multifamily Employee Generation Rate of .33 employees per dwelling unit. This was “ripped” from Telluride’s development code. Staff reached out to planning staff in Telluride and learned that the number is based on a 1994 nexus study, similar to the 2008 study conducted in Eagle County. While Telluride has been using this number for 25 years, their planning staff could not find the original document or confirm the exact scope (number of communities sampled) for the study. ATTACHMENT 2 • Relevance of the 2008 Eagle County Nexus/ Proportionality Analysis for Commercial Development/ Workforce Housing Linkage While there are no industry standards on how up-to-date studies must be, in practice they are typically updated when new fees are being significantly altered or when new linkage programs are being enacted. Staff reached out to the Tori Franks (Valley Home Store), Willa Williford (independent consultant), and Melanie Rees (independent consultant), to provide feedback about the current study and the possibility of updating the study. When the Eagle County Housing Needs Assessment was updated last year, 53 local employers responded to the survey questions. Connecting this updated data to the larger data set from the 2008 Eagle County Nexus/Proportionality Analysis for Commercial Development would allow for the team to examine rates by type of employment. A residential rate may also be possible to produce. Eagle County is interested in partnering to update the study if the Council so desires. Staff is still working with the County and the consultants to determine the scope, timeframe (roughly 3 months), and potential costs (roughly $10,000), which could be split 50/50 with Eagle County. Alternatively, staff could spearhead a project that surveys only Town of Avon businesses (instead of an enlarged sample from multiple mountain communities) to get smaller scale estimate of the commercial linkage equivalents but could probably not independently produce an accurate residential rate. • Single Family and Duplex Regulations The current CTA excludes housing developments of less than three (3) dwelling units to limit the impact on the primarily residential neighborhoods. There are few parcels zoned for single family or duplex that have yet to develop in Avon. If desired, staff could present an updated CTA that requires a fee-in-lieu for new development, redevelopment, and additions. Staff analyzed some recently approved developments in the Town of Avon according to Employee Equivalent requirements in Telluride and Aspen (and using the fee-in-lieu potentially to be adopted by Avon, at 100% AMI) to illustrate different options that have been used. Avon’s Equivalent was calculated as if the .33 employees generated per residential dwelling unit applied to single family dwellings, and it would not be possible to account for additions. Telluride calculates an employee equivalent based on a logarithmic scale thus increasing the number of equivalents per square feet as the size increases. That is, a large house is expected to generate more employees per square foot than a small one. Aspen has a mitigation per 1,000 square feet of floor area and the rate rises after 4,500 square feet. With these protocols, building additions could also be subject to inclusionary zoning regulations, as opposed to a simple dwelling unit count. These protocols are not proposed specifically, and staff suggests that if Town Council wishes to include developments with less than three (3) units, a measure thereby exempting houses under a certain size (perhaps 4,000 square feet) from the regulations, and then a scale that imposes fees per square feet should be used. No changes to the Ordinance have been made and staff seeks guidance on these potential changes. Avon Equivalent Telluride Equivalent Aspen Equivalent 2177 Saddle Ridge (3592 SF)1,446$ 32,501$ 30,214$ 465 Paintbrush (10912 SF)1,446$ 186,953$ 159,205$ Bear Trap Remodel (4293 to 5657 SF)-$ 14,216$ 23,638$ ATTACHMENT 2 • Government Inclusion in requirements – Who is exempt? Staff updated the language to represent a more realistic view of valley needs. All government entities are constructing things for a public purpose, and Town should not burden that objective. Community Housing projects are not exempt, because they would presumably have deed restrictions attached to them. • Funds eligible to be returned in 7 years? Staff deleted this language from the CTA and proposes no time limit. There is no obligation to return fees, however, there is an obligation to place fees in separate account for housing specific purpose. • Sheraton Mountain Vista The required housing mitigation for the Sheraton Mountain Vista PUD development on Lot C, Avon Center at Beaver Creek, included 20 units of deed restricted housing, constructed as eight (8) studio, eight (8) 1-bedroom, two (2) 2-bedroom, and two (2) 3-bedroom deed restricted units. The square footage of these units is smaller than the minimum size requirements in the proposed standards. A total of 7,712 square feet of employee housing was constructed. Under the proposed regulations, 14,250 square feet would be required for new housing mitigation. However, staff believes these units are functioning in a manner to provide housing for 35-36 employees. Therefore, staff supports the application of the employee mitigation plan based on the bedroom count rather than the new proposed minimum square footage requirement. Based on the bedroom count, the 20 units of employee housing mitigation constructed by Sheraton Mountain Vista amounts to 35.5 Employee Equivalents under the proposed formulas. The existing Sheraton Mountain Vista Phase 1 timeshare building would have required employee housing mitigation in the amount of 14.57 Employee Equivalents, as demonstrated on the Mitigation Requirement sheet prepared as part of the March 12 staff report, attachment 3. Staff suggests that the balance of 20.93 Employee Equivalents (35.5 - 14.57) could be allocated as a credit for employee housing mitigation for additional development of Sheraton Mountain Vista, Lots 2, 3 and 5 under the proposed inclusionary housing regulations, for a total of 627 timeshare units. Below is a breakdown of the unit types, square footage, and Employee Equivalents. Unit Bedrooms Square Feet Employee Equivalent Square Feet Required by Proposed Code E201 3 849 3.5 1,225 E301 3 807 3.5 1,225 E202 2 497 2.25 900 E302 2 495 2.25 900 E203 1 405 1.75 750 E204 1 405 1.75 750 E205 1 405 1.75 750 E206 1 405 1.75 750 E303 1 405 1.75 750 E304 1 405 1.75 750 E305 1 405 1.75 750 E306 1 405 1.75 750 E207 0 222 1.25 500 E208 0 230 1.25 500 ATTACHMENT 2 E209 0 230 1.25 500 E210 0 230 1.25 500 E307 0 222 1.25 500 E308 0 230 1.25 500 E309 0 230 1.25 500 E310 0 230 1.25 500 TOTAL 18 7712 35.5 14,250 • Eagle County Affordable Housing Guidelines update Eagle County’s guidelines mentioned in the March 12, 2019 staff report deserve a closer look. These guidelines apply for all commercial projects and all residential projects with three (3) or more units, including government non-profit. According to the Eagle County Affordable Housing Guidelines, for residential developments, the mitigation rate: “Is the higher of 1) 25% of the total residential units in a Project or 2) 15% of the total residential Square Footage of a Project… This Inclusionary Housing mitigation rate is substantially below the 61% of residential units in Eagle County that are currently occupied by local residents. As Eagle County is aware that not all local residents desire to live in Affordable Housing, this lower rate is justified.” “…For commercial developments, an applicant should mitigate the impact on Eagle County’s housing stock by building Affordable Housing for at least 45% of the new employees generated by the project that will earn less than 140% of AMI. This 45% mitigation rate is based on the percentage of Cost Burdened Households in Eagle County…Mixed Use Developments Eagle County typically encourages mixed-use developments. If both Commercial Mitigation and Inclusionary Housing requirements apply because the application contains a mix of Commercial Development and Residential Development, then the higher of the Affordable Housing requirement for Commercial Mitigation or Inclusionary Housing will apply. “ Tori Franks states that most properties in unincorporated Eagle County is single-use, or that the residential rates have been applied to mixed use development. Methods of housing mitigation for Eagle County are shown below: 1. Price Capped For Sale Housing with a maximum Initial Sales Price set at or below 100% AMI affordability level will be given full credit. 2. Affordable Rental Housing with a deed restriction requiring rents to be set at or below the 80% AMI affordability level maybe given increased credit if a recent market analysis shows the need for additional Affordable Rental Housing in the rental project’s location. 3. Resident Occupied For Sale Housing, which includes a 2.0% transfer fee on all sales to non-Eligible Households, without regard to AMI, will be given 0.50x credit. 4. A donation of land to ECHDA within a reasonable vicinity of the applicant’s Project will be given 0.50x credit. 5. Off Site Development will be given 0.50x credit. In cases where the off site location has a higher Affordability Gap than the development site, full credit maybe awarded. 6. A Payment in Lieu may be made to ECHDA. 7. An applicant may use Affordable Housing Credits. 8. Other Public Benefits may be provided to offset some portion of Affordable Housing. ATTACHMENT 2 To the right is an estimate of the mitigation based on Eagle County guidelines, next to the proposed Mitigation estimation from this CTA. Note that because there is no Property Management category in the Eagle County guidelines, staff credited that category with the Residential rate for the Eagle County mitigation calculation. Sheraton Mtn Vista USE TOA Mitigation EC Mitigation Lodge/Hotel 12.0 54.0 Prop. Management 0.0 0.0 Commercial SF 2.6 11.5 14.6 65.5 Wyndham USE TOA Mitigation EC Mitigation Lodge/Hotel 4.9 22.2 Prop. Management 0.0 0.0 Commercial SF 0.5 2.1 5.4 24.3 Lot B Hotel USE TOA Mitigation EC Mitigation Lodge/Hotel 9.5 42.6 Prop. Management 0.1 1.0 Commercial SF 0.1 0.6 9.7 44.2 Colorado World Resorts USE TOA Mitigation EC Mitigation Lodge/Hotel 0.0 0.0 Prop. Management 2.7 20.3 Commercial SF 0.0 0.0 2.7 20.3 Town Council Hypothetical USE TOA Mitigation EC Mitigation Lodge/Hotel 6.7 36.0 Prop. Management 0.3 2.5 Commercial SF 1.2 6.3 8.2 44.8 ATTACHMENT 2 ATTACHMENTS ATTACHMENT 1: Ordinance 19-03 ATTACHMENT 2: March 12, 2019 Town Council Staff Report ATTACHMENT 3: Eagle County Housing Tools Matrix ATTACHMENT 4: Sections from the Town of Avon Community Housing Plan ATTACHMENT 5: Public Comment LINKS Eagle County Affordable Housing Guidelines https://www.eaglecounty.us/Housing/Documents/2014_Housing_Guidelines_May_13/ Avon Comprehensive Plan Master Appendix Tables http://avon.org/DocumentCenter/View/19348/Comprehensive-Plan-Master-Appendix ATTACHMENT 2 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: 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 ATTACHMENT 2 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. ATTACHMENT 2 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 ATTACHMENT 2 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 ATTACHMENT 2 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). ATTACHMENT 2 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 ATTACHMENT 2 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= ATTACHMENT 2 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 2 ATTACHMENT 3 ATTACHMENT 3 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 ATTACHMENT 4 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 4 ATTACHMENT 5 ATTACHMENT 5 TOWN MANAGER REPORT TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager RE: Ordinance No. 19-01 Community Housing Tax and Fee Waivers DATE: May 23, 2019 SUMMARY: This memorandum provides a follow-up to the March 12, 2019 Council discussion of Ordinance No 19-01 Community Housing Incentives. The materials presented on February 26, 2019 were resubmitted to Council for the March 12, 2019 Council meeting along with a complete copy of the Avon Community Housing Plan adopted at the end of last year. Council had some questions and concerns, particularly with regard to increasing the Real Estate Transfer Tax (RETT) exemption for primary residents. Due to a desire for additional discussion of increasing the primary residence RETT exemption, this provision has been removed from Ordinance No. 19-01. Additionally, the Community Housing incentive for the Town’s water tap fee has been revised to only allow for a deferment of the required payment. The actual terms of deferment (duration, interest rate, etc.) would be determined at the time of approving incentives for a specific Community Housing project. BACKGROUND: Avon Council adopted Avon’s first Community Housing Plan last December. The Community Housing Plan adopted a Work-Plan that included the task “Formalize Fee Waiver Program”. Ordinance No. 19-01 would accomplish this goal by formalizing the eligibility, procedure and review criteria to waive Town taxes and fees for Community Housing Projects. AVON WATER TAP FEE: Ordinance No. 19-01 is revised to not allow waiver of Avon’s water tap fee. The common approach to utility fees is to permit a deferment of the fees and permit payment over a 5 to 20 year period. Waiver of utility fees is generally discouraged and avoided because waiver of a portion of fees can result in the increased costs for other utility users. Utility fees are based on infrastructure costs divided equally amongst users. Metropolitan Districts and Title 32 Districts are legally prohibited from waiving utility tap fees. Avon may have the discretion to consider this option as a home rule community, but the practice of waiving water tap fees would be highly irregular and is not recommended. FINANCIAL CONSIDERATIONS: Based on rough analysis provided in my February 6, 2019 memorandum the cost to Town in tax and fee revenue not received is approximately $14,000 for a two bedroom, 1,000 sq.ft. residence (calculated with Avon deferring, and not waiving, water tap fees). INCREASING PRIMARY RESIDENT RETT EXEMPTION: Increasing the RETT exempt for primary residents presented some transactional complications and questions about impacts and consequences to the Town’s budget. This potential code change can be addressed and discussed as a future separate ordinance. HOUSING INCENTIVE: I and Town staff have been approached by several potential investors and developers of housing projects throughout this calendar year. The adoption and formalization of the tax and fee waivers for Community Housing is not a final act and is not an immediate “but for” action that will enable a specific project to go forward, but it would send the signal that Avon Town Council’s policy is to consider waiver of taxes and fees for Community Housing projects and would provide an orderly procedure for reviewing such proposals. MOTIONS: “I move to approve 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.” Thank you, Eric ATTACHMENTS: Attachment A: Ord 19-01 Attachment B: February 7, 2019 Memorandum and March 6, 2019 memorandums Attachment C: Redline of AMC 3.12.060 RETT Exemption revisions Ord. 19-01 May 28, 2019 FIRST READING Page 1 of 7 TOWN OF AVON, COLORADO ORDINANCE NO. 19-01 AMENDING CHAPTER 3.08 SALES TAX; CHAPTER 3.12 REAL PROPERTY TRANSFER TAX; ENACTING CHAPTER 3.14 COMMUNITY HOUSING INCENTIVES; AND AMENDING CHAPTER 13.08 PUBLIC SERVICES OF THE AVON MUNICIPAL CODE WHEREAS, the Town of Avon, Colorado (the “Town”) is a home rule municipality and political subdivision of the State of Colorado (the “State”) organized and existing under a home rule charter (the “Charter”) pursuant to Article XX of the Constitution of the State; and WHEREAS, pursuant to C.R.S. §31-15-103 and §31-15-104, and pursuant to the home rule powers of the Town of Avon (“Town”), the Town Council has the power to make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of its inhabitants; and WHEREAS, Council adopted the Town of Avon Community Housing Plan on December 13, 2018, which included a policy to “formalize a fee waiver/reimbursement process” and which included an Appendix A: Avon Community Housing Plan – Work Plan that contemplated formalizing a Fee Waiver Program; and WHEREAS, Council adopted the Town of Avon Comprehensive Plan which includes Policy E.1.3: which states in part, “Provide attainable housing through alternative means, including . . . waiver of development and building fees, . . .”; and WHEREAS, the Avon Town Council finds that amendments to the Avon Municipal Code will promote the health, safety and general welfare of the Avon community; and WHEREAS, approval of this Ordinance on First Reading is intended only to confirm that the Town Council desires to comply the requirements of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence regarding the application and that approval of this Ordinance on First Reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies this ordinance. BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 2 of 7 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); such that Sections 3.12.060(14) through (18) 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, as defined in Section 3.14.020, subject to a deed restriction to qualified purchasers provided that the deed restriction that protects and maintains such Community Housing for the benefit of the Town is in compliance with all terms and conditions. (17) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided the following conditions are met: a. The same applicant has not previously received an exemption pursuant to this subsection; Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 3 of 7 b. An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1. An affidavit that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co- signor is not a co-purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence within one (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record. c. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction. (18) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided that the following conditions are met: a. The applicant previously received a primary residence exemption pursuant to Section 3.12.060(17) and the applicant has satisfied the conditions of subsection (17)b.1. and 2. of Section 3.12.060; and b. An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1. An affidavit that the applicant's current primary residence used to satisfy the requirements of Section 3.12.060(17) is within the town; that the applicant meets the definition of an Eagle County employee; that the real property is being purchased for use as a new primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co-purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event that the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence or shall cease to meet the definition of an Eagle County employee within one (1) year after closing and granting to the town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record; and Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 4 of 7 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. 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 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 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. Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 5 of 7 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 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. 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 deferment of water tap fee payment, or may allow a combination of credit 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 deferral for community housing. Town Council may defer 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 Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 6 of 7 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 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. Attachment A: Ord 19-01 Ord. 19-01 May 28, 2019 FIRST READING Page 7 of 7 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on May 28, 2019 and setting such public hearing for June 11, 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 June 11, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Kathryn Sellars, Interim Town Attorney Attachment A: Ord 19-01 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 B: Feb 7 and Mar 6, 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 B: Feb 7 and Mar 6, 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 B: Feb 7 and Mar 6, 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 B: Feb 7 and Mar 6, 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 B: Feb 7 and Mar 6, 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 B: Feb 7 and Mar 6, 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: Ordinance No. 19-01 ATTACHMENT B: Avon Community Housing Plan ATTACHMENT C: REDLINE of existing AMC Sections 3.12.060(14) through (17) compared to proposed AMC Sections 3.12.060(14) through (19) Attachment B: Feb 7 and Mar 6, 2019 Memorandum 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: 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 Attachment B: Feb 7 and Mar 6, 2019 Memorandum 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) Attachment B: Feb 7 and Mar 6, 2019 Memorandum (14) The subsequent transfer of a residence involved in a "tax free" or "tax deferred" trade under the Internal Revenue Code wherein the interim owner acquires property for the sole purpose of reselling that property as part of a qualified exchange and the property is resold within twenty-four (24) months after the first transfer. In these cases, the first transfer of title is subject to the real property transfer tax and the subsequent transfer will only be exempt as long as a transfer tax has been paid in connection with the first transfer of such residence in such exchange. In the event the consideration for the subsequent transfer is greater than the consideration for the first transfer, transfer tax shall be due on such increased amount of consideration. (14(15) Any sale or conveyance of real property or improvements for the purpose of constructing or otherwise providing low or moderately priced housing units for sale or lease to low or moderate income personsCommunity Housing as defined in Chapter 3.14; provided, that the parties to the transaction shall apply to the Town ManagerCouncil for the exemption prior to the occurrence of the transaction from which exemption is sought, in accordance with Chapter 3.14 Community Housing Incentives and that the partiesproperty shall agreebe subject to appropriately restrict the future use of the property to low and moderately priced housing units by recorded agreement,a deed restriction, covenants, declarations or similar instruments as may be required by that protects and maintains the Community Housing for the benefit of the Town Manager; ; (15) (16) Transfers of Community Housing subject to a deed restriction to qualified purchasers provided that the deed restriction that protects and maintains such Community Housing for the benefit of the Town is in compliance with all terms and conditions. (17) The first one hundred sixty thousand dollars ($160,000.00) of the consideration for any sale or conveyance of real property and completed improvements for occupancy as a primary residence, provided the following conditions are met: a. The same applicant has not previously received an exemption pursuant to this subsection; b. An application for exemption is filed with the Town Manager or his or her designee, which application is accompanied by: 1. An affidavit that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co- signor is not a co-purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence within one (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record. Attachment C: REDLINE of AMC 3.12.060 Revisions 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. The subsequent transfer of a residence involved in a "tax free" or "tax deferred" trade under the Internal Revenue Code wherein the interim owner acquires property for the sole purpose of reselling that property as part of a qualified exchange and the property is resold within twenty-four (24) months after the first transfer. In these cases, the first transfer of title is subject to the real property transfer tax and the subsequent transfer will only be exempt as long as a transfer tax has been paid in connection with the first transfer of such residence in such exchange. In the event the consideration for the subsequent transfer is greater than the consideration for the first transfer, transfer tax shall be due on such increased amount of consideration. Attachment C: REDLINE of AMC 3.12.060 Revisions TOWN MANAGER REPORT TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager and Matt Pielsticker, Planning Director RE: Civic Park Planning DATE: May 27, 2019 SUMMARY: This report provides an overview of next steps related to planning, design and implementation for “Tract G.” Council expressed a desire to incorporate appropriate and meaningful community engagement in the next steps for improvements related to Tract G. This report addresses anticipated improvements in Tract G which range from relatively simple and inexpensive to very complex and more significant in cost. One planning approach for all of Tract G is not recommended due to the anticipated differences in various tasks and activities. Tract G includes Nottingham Park, the old Town Hall Site, the old Fire Station Site (351 Benchmark Rd), the Avon Recreation Center, and the Main Street Pedestrian Mall. The next planning, design and implementation steps are intended to be more focused than the general concepts in the Town-Owned Properties Plan. The proposed reference for these next efforts is “Civic Park Planning”. Town Council adopted the Town of Avon Town-Owned Properties Plan on April 10, 2018 “TOA Properties Plan”. The TOA Properties Plan serves as the primary guidance for next steps related to Civic Park Planning. The Tract G portion of the TOA Properties Plan is attached to this report. TOA PROPERTIES PLAN GUIDANCE: The results of a community engagement process identified the following community preferences for Recreation, Park Elements and Land Uses for Tract G. Recreational Uses: (1) Multi-Use Field (84%); (2) Trails (80%); and, (3) Ice Skating (65%). Park Elements: (1) Restrooms (90%); (2) Picnic Shelters (84%); and, (3) Game Plaza (71%). Land Uses: (1) Recreation Center Expansion (77%); (2) A Pavilion (76%); (3) Food Collective (70%); and (4) Library Expansion (54%). The TOA Properties Plan set forth a series of specific tasks described as Phase 1 and Phase 2, which is attached. In an effort to provide a more orderly and grouped approached to the next steps for planning, design and implementation, specific tasks are identified and described in this report. Landscape Enhancements: Landscape enhancements are intended to “improve the qualities of the existing park through defined planting, user amenities and art” as well as “utilize native landscaping for educational purposes”. Next steps include: Page 2 of 4 (1) Review existing landscaping plans; (2) determine if additional landscape architectural services are required; (3) present landscape plans and options along with cost estimates to the Avon Planning and Zoning Commission; (4) determine desired options, capital improvements budget and phasing if appropriate with Town Council; and, (5) retain a contractor to implement the landscaping enhancement plan. Opportunities for community input are available through the Planning and Zoning Commission review process and Council review. Plans will be made available on the Avon website for public review and comment. Additional community engagement can be incorporated if determined desired and beneficial. Cultural and Art Enhancements: Closely related to landscape enhancements are cultural and art enhancements. This is an area that requires more attention and consideration. The planned installation of outdoor music equipment is one example of such enhancements. Consideration and recommendations of cultural and art enhancements of the Civic Park area fall under one of the adopted purposes of Cultural Arts and Special Events Committee. Multi-Purposes Fields: The west side of Nottingham Park includes a small soccer field and a baseball field. Additional community input and site planning is anticipated to determine the best mix of multi-purpose fields on the west side of Nottingham Park. Beach Portalettes: Upgraded screening is proposed for the Beach Portalettes. This project would include pouring a cement slab and constructing or installing screening for three portalettes, including one handicapped portalette and one additional portalette at the parking lot. This project is estimated to cost $25K to $50K depending upon design of the screening. The construction of a Public Restroom structure with plumbing is roughly estimated to cost $500K to $600K because extension of water and sewer utilities to the location for a Beach Public Restroom is expected to cost $100K to $200K. If Council desires further consideration of a Beach Public Restroom then the recommendation is to conduct additional preliminary design work to determine a more defined cost estimate and then incorporate the project into the Town’s capital improvement program. Construction of additional Public Restrooms near the Avon Pavilion is expected to be a higher priority (see discussion below) therefore the recommendation at this time is proceed with a project to install additional portalettes with enhanced screening. West Benchmark Parking: Council has already reviewed and approved this project. Requests for Proposals will be published soon. This project will be scheduled to commence after the Colorado Classic bike race on August 23rd and will be scheduled to not affect any traffic on this road until after Labor Day week-end. This project will also include installation of a storm water vault for treating stormwater run-off. Cabin and Public Works Barn: The historic cabin has potential to be used for an additional green room or small community meeting space. Assessment of existing conditions and potential for interior remodeling are recommended to determine feasibility of enhancing this building and increasing use. No changes are recommended for the Public Works Barn which current serves as a convenient location for parks maintenance equipment. Page 3 of 4 Old Town Hall Site: The Old Town Hall Site has obvious potential for a variety of uses. At this time, the following improvements are planned and recommended: (1) Proceed with demolition of Old Town Hall building; (2) Relocate utilities that serve the park; (3) Install High-Voltage hook-ups for performer coach parking; (4) Determine plans for re-claiming Old Town Hall site; and (5) Determine locations for future improvements, including but not limited to public restrooms. Planning to determine public restrooms should evaluate the projected size of routine events and evaluate the most efficient and cost-effective sizing of public restrooms. For example, it is not cost effective to construct public restrooms to serve occasional events in excess of 10,000 persons (such as the July 3rd Salute to the USA) but it anticipated that public restrooms should be constructed to comfortably serve events with 1,000 to 2,000 persons. Relocation of utilities will be planned to accommodate planned locations for future improvements. 351 Benchmark (Old Fire Station): This site offers significant opportunities for a variety of potential uses, including Town owned and operated community uses, private community uses and private uses. This is a prominent corner location, between the Avon Library and Nottingham Park, and with striking views of Beaver Creek resort. Any Town owned and operated community use is likely be significant in cost and several (i.e. many) years in the future. The determination of preferred community uses is expected to take several years of community engagement and financial analysis, both for construction and programming. Any private use for redevelopment (i.e. commercial, residential, or mixed-use) would require a vote of the Avon electorate to authorize conveyance pursuant to the Avon Home Rule Charter. In my experience, communities more often than not reject ballot questions to convey municipal property when they involve parks and property in the center of the community. Avon’s electorate previously rejected a Charter amendment to authorize the Avon Town Council to convey property as a follow-up to the adoption of the West Town Center Investment Plan in 2006. Avon’s electorate did approval conveying 3,000 sq.ft. of the Main Street Pedestrian Mall in 2015, but then this project did not move forward and the authorization for conveyance expired. Due to the abundance of opportunities and complexity of community engagement and financial analysis for redevelopment of 351 Benchmark, a two-step approach is recommended whereby Council consider upgrades to allow temporary uses of 351 Benchmark for the next 5 years as Step One and commences a thorough community planning process to determine the truly best vision and opportunity for this property as Step Two. The recommended Step One is to determine a cost estimate for installing a fire suppression in the entire building, formulate a Request for Proposal process to lease the ground floor, and determine guidance for review that considers potential lease revenues balanced with community value of potential different uses. The recommended Step Two is to outline a community planning process specific to this property to develop potential options, conduct financial analysis, conduct programming analysis, and recommend a process for implementation. Recreation Center Expansion: This project is anticipated to be the most involved and most costly of potential projects in the Civic Park area. A community based planning, design and cost estimating process Page 4 of 4 will be presented in detail at the June 25, 2019 Council retreat. An expansion project for the Avon Recreation Center is likely to depend upon future voter approval of financing; therefore, this process is expected to be a minimum multi-year process. Miscellaneous Recreation Improvements: Several recreational improvements have been identified that can involve or implicate planning efforts for the Recreation Center Expansion, 351 Benchmark and/or Old Town Hall site. Specifically, a community ice skating rink, a summer splash pad area, pickle ball courts, additional picnic areas, and public restrooms all should be further considered for preference and priority, capital improvements planning, and location. In addition, improvements that are identified to enhance and support the Avon Pavilion should be identified and incorporated into a Civic Park plan. Parking and Electric Vehicle Charging Stations: Town staff has been asked to start a comprehensive plan for installation of electric vehicle charging stations in the Town core. This is mentioned because identified and planned areas for electrical vehicle charging stations will certainly include the Town’s parking in the Civic Park planning area. REQUESTED DIRECTION: Most of the specific Civic Park planning and implementation categories identified above will require further design work, community engagement, and review by the Planning and Zoning Commission and Town Council. Council direction is sought on whether this scope and focus is deemed appropriate thus far. If so, Town staff will proceed with more specific processes, timelines and cost estimates for each of the activities and specific areas discussed above. Town staff expects to present a more refined process and schedule to Council as part of the June 25, 2019 retreat. Thanks, Eric ATTACHMENT A: Tract G portion of the Town Owned Properties Plan 17 TRACT G Image credit: Town of Avon ATTACHMENT A: Tract G - TOA Properties Plan - 2018 18 | Tract G OVERVIEW CURRENT USES - FACILITY AREA The existing facilities within Tract G includes the Avon Recreation Center, the Avon Library, Old Town Hall, 351 Benchmark Property (former fire station), and Main Street Pedestrian Mall. Town municipal services will be moved to the New Town Hall in 2018. Relocation of municipal services, and essential services moving to the Joint Public Facility in 2017, provides an opportunity to create other uses in this critical core parcel. CURRENT USES - HARRY A. NOTTINGHAM PARK The park is valued by the community for its open green space. The amenities within the park currently include: •Open space •Nottingham Lake for fishing, swimming, and stand-up paddle boarding •Two athletic fields •Children’s playground •Beach and swim area •Picnic tables •Barbecue grills •Recreational paths •Three tennis courts on the west end of the park CURRENT ZONING: facility and park AREA OF FACILITY: 46.88 acres TRACT G EXISTING CONDITIONS Avon Performance Pavilion Old Town Hall •Two basketball courts on the west end of the park •Four pickleball courts •Softball field on the west end of the park •Two sand volleyball courts •Renovated restroom facility •Avon Performance Pavilion that includes a 25’x 45’ stage, a large deck over the lake, and a green room available for rental •Early morning hour dog park SITE DESCRIPTION Tract G represents the civic core of the Town of Avon. The topography at the site is mostly level with no natural steep slope areas. Great views towards Beaver Creek Resort are found throughout the park site. Nottingham Lake allows recreational access and a beach area. Nearby, at the Avon Waste Water Treatment Plant, the historic Hahnewald Barn is slated to be demolished by the spring of 2019. The Hahnewald Barn was fully evaluated during the planning process, including various opportunities for relocating the structure onto town -owned properties. It is being evaluated for relocation to Tract G. Image credit: Town of Avon Image credit: Design Workshop ATTACHMENT A: Tract G - TOA Properties Plan - 2018 19 NOTTINGHAM RD DB E A V E RC RAVONRDWBEAVERCREEKBLVD RIVERFRONTL N BENCHMARK R D S U N RD MILLIESLN BENC H MARK RDLAKESTBENCHMARKRDWALKINGAVONRD BAC PRA B U C K CREEKRD INTERSTATE70ACC ESS R D INTERSTATE70AC CESS I N T E R S T A T E 70 A C C E IN T E R S TATE 70 A C C E S S RD AV O NA VONRDAVON(DJOH5LYHU 1RWWLQJKDP/DNH TRACT G ZONING Park area Public facility area ATTACHMENT A: Tract G - TOA Properties Plan - 2018 20 | Tract G EXISTING CONDITIONS 0’N 100’ 200’ 400’ I-70 NOTTINGHAM LAKE EAGLE R I V E R TRAILS AND SIDEWALKS BASKETBALL COURTS BASEBALL DIAMOND HAHNEWALD BARN PLAYING FIELD ELEMENTARY SCHOOL LIBRARY RECREATION CENTER SHERATON HOTEL NEW TOWN HALL (2018) AVON PERFORMANCE PAVILION RAIL R O A D RIG H T - O F - W A Y POST OFFICE COMFORT INN AVON CENTER BASKETBALL COURT BEACH SAND VOLLEYBALL COURT SOCCER FIELD OLD TOWN HALL PUBLIC WORKS TENNIS COURTS 351 BENCHMARK PROPERTY ATTACHMENT A: Tract G - TOA Properties Plan - 2018 21 DEVELOPMENT CONCEPT The Tract G site can accommodate a mix of cultural, recreational and new economic activities and facilities. CULTURAL/ECONOMIC DEVELOPMENT CIVIC FACILITIES Tract G offers the potential to infuse cultural and new economic opportunities through mixed use facility development. Mixed uses are possible through the re- purposing of the 351 Benchmark Property and Cabin, relocation or re-purposing of the Public Works garage, and potential relocation of the Hahnewald Barn. The 351 Benchmark Property can be renovated, expanded or replaced with a larger cultural, educational and entrepreneurial facility. The Hahnewald Barn will be considered as a facility to house the full spectrum of recreational, cultural and economic development uses to be developed on Tract G, in conjunction with the 351 Benchmark Property, Recreation Center expansion and Performance Pavilion. The Old Town Hall will be demolished to accommodate future uses, including the potential for relocating the Hahnewald Barn. The geographic area for these facilities is recognized as a high value location, with unmatched views and proximity to the Eagle River, Nottingham Park, the lake and the many lodging properties. The Town Council has adopted a goal to become one of Colorado’s Creative Districts. A certified Creative District delineates a defined area to attract artists and creative entrepreneurs, which then is attractive to residents, visitors and private businesses. Envisioned uses planned among the facilities include a combination of spaces from working studios, learning center, educational classrooms, including but not limited to culinary, master classes, business start-ups, in-residence housing, indoor performance space, private event space, such as for weddings, and support for the Avon Performance Pavilion, including additional green room space. The affiliated needs for additional restrooms, a small parks equipment storage space, and interface onto the adjoining soccer field will be planned. The next steps require continued public input to determine the demand for the spaces and placement of the various uses among the facilities, including the degree of flexibility in multi-use development. Discussion with the Library Board, including the potential for expansion south of the existing structure and interface with multi-use facility development should be pursued. Expansion of the Recreation Center, described below, should be included in the facilities mixed- uses determinations. ATTACHMENT A: Tract G - TOA Properties Plan - 2018 22 | Tract G 1 2 3 4 5 6 7 8 9 PROGRAM OF USES AND FACILITIES Existing Basketball/ Tennis Courts Multi-Purpose Field Beach/Sand Volleyball Playground Performance Pavilion Old Town Hall Area: Multi-Use Facility; New Surface Parking; Restrooms Park Landscape Improvements Recreation Center Expansion Landscape Learning Area Cultural/Economic Development Planning Area: Multi-Use Building(s); Library Expansion; New Surface Parking; Cultural/ Economic Development Facility(s) / Public Open Space RECREATIONAL DEVELOPMENT HARRY A. NOTTINGHAM PARK Beginning with the existing park environment, Harry A. Nottingham Park will maintain much of its current use patterns, such as passive recreational trails, lake access, playground, beach, field/court facilities and more. Future improvements will include park upgrades including improved landscaping, additional restrooms and more surface parking. It is important in the future to activate and attract residents from the southwest corner of the park. A multi-use field can continue to be accommodated on the south west portion of the site. Interim uses can be accommodated on the site, including parking or expanded lawn space. Providing for an expanded skating rink, to meet the interests of various skaters, and to extend the skating season, a chilled outdoor ice skating rink can be located in proximity to the facilities planned. The ice rink can support a game plaza, gathering space or area for festival tents and vendors, during warmer months. RECREATION CENTER EXPANSION A proposal brought forward in 2014, identified the program needs for expansion of the Recreation Center. From the program needs work, the Recreation Center benefited from upgrades and renovations to accommodate the growing user demands. As the Recreation Center reaches capacity, primary for building expansion is the need for indoor sports areas and a multi-use community spaces for activities such as basketball, yoga and fitness classes, increased room for cardio/weights, and multi-use space for special events, such as birthday parties. The feasibility of the inclusion of a regulation-size swimming pool, with an indoor/outdoor relationship requires more study. The recreation expansion plan also includes the concept of a splash pad or water play facility. This is located in the front of the recreation center, activating the space between the Recreation Center and the park, while consolidating management and operations/maintenance of the facility. During off-seasons, the space can function as an activity plaza. Recreation Center Splash Pad Image credit: Design Workshop Image credit: landscap.cn ATTACHMENT A: Tract G - TOA Properties Plan - 2018 23 PROPOSED CONCEPT PLAN 76 Spa c e s 116 S p a c e s EAGLE RIVER 70 S p a c e s35 Spaces14 Sp a c e s 14 Spaces37 Spaces Propos e d H i g h A m e ni t y Bicycle / P e d e s t r i a n F a c i l i t y I-70 NOTTINGHAM LAKE 2 2 1 3 8 9 6 7 4 5 22 Spaces On-St r e e t P a r k i n g ATTACHMENT A: Tract G - TOA Properties Plan - 2018 24 | Tract G PHASING AND FUNDING PHASE 1 Facility Planning In 2018, the planning of the 351 Benchmark Property, Hahnewald Barn, Recreation Center Expansion, the outdoor skating/game plaza, Mikaela Way and interface to the Main Street Mall will be planned, including the identification of multi-uses and schematic to construction documents. With strong civic engagement outreach, the integration of recreational, cultural and economic development in this important geographical area in the Town of Avon can be maximized for a unique “center” in the Vail Valley. Old Town Hall Demolition Demolition of the Old Town Hall will allow for future uses and buildings, including the potential relocation of the Hahnewald Barn. Depending on the timing, the demolition can be delayed. Interim uses of the building, in that event, can be considered, with limited to no investment by the Town. Beach Restrooms A concrete pad located near the Harry A. Nottingham Park beach will serve as a stable landing area for temporary restroom facilities. In future phases, this concrete surface will be enhanced with permanent facilities. High-Voltage Hook Ups and Performer Coach Parking To accommodate visiting performers, high-voltage hook ups and coach parking will provide adequate greenroom space for artists traveling with large coaches. Additional Parking Additional surface parking will be designed along West Benchmark Road with preference for permeable pavers or similar treatment. Landscape Enhancements Park landscape enhancements are intended to improve the qualities of the existing park through more defined planting, user amenities and art. Landscape learning areas that utilize native landscaping for educational purposes are an untapped opportunity. PHASE 2 Finalization of facility development costs and prioritization of facility phased development. FUNDING The adopted 2018 Capital Project Fund has $2,500,000 in reserve for the development of the Town- Owned Properties, upon adoption of the Development Strategies. These monies are available for planning and project development. Additional monies may be appropriated by the Town Council. Urban Renewal Fund surpluses, if any, may also be considered through the term of the current District Plan. Bonding for major capital construction will be required for project costs beyond this reserve. ATTACHMENT A: Tract G - TOA Properties Plan - 2018 25 PARKING PARKING The Old Town Hall could incur a net loss of parking spaces with the reuse of the site, however, the current use of the site will also relocate. Adding parking to West Benchmark Road, between Lake Street and Avon Station, could add new parking spaces to the West Town Center Core. Over time, it is proposed to relocate the parking that exists between the Recreation Center and the 351 Benchmark Property in order to strengthen the pedestrian connection, vitality, form and place-making of the mall and its connection to Harry A. Nottingham Park. Parking should be relocated incrementally during adjacent development activities. The Recreation Center expansion will occur in the location of the existing parking lot. Harry A. Nottingham Park will continue to be served by surrounding parking. The existing lot of 19 spaces to the north of the park has been supplemented with on-street parking during the summer season of 2017. In addition, 72 spaces are available at Avon Elementary School on weekends and non-peak school times. Special event parking will require continued coordination with individual private property owners through shuttling from locations such as Traer Creek Plaza, to allowing parking during non-business hours at establishments like US Bank, First Bank, Beaver Creek Bear Lots (overflow), and more. ATTACHMENT A: Tract G - TOA Properties Plan - 2018 26 | Tract G TRAIL HIERARCHY TRAILS The main walking circuit around the lake is well loved and used. User input during this planning process indicated excitement over the existing trail resources and a desire to maintain and improve the recreational opportunities afforded with trail connections in this part of town. This connection should be enhanced in the future, considering user experience, heightened landscape planting, and user amenities such as benches, shade shelters, lighting, signage, art, and recreational opportunities. Within the park, efforts to standardize and highlight through signage and/ or markings the distance traveled should be made with 1/4 mile increments. The Pedestrian Mall, as well as the Park Promenade also serve to enhance the user experience of moving through the Tract G site. The main pedestrian routes should be wide in order to accommodate multiple users, with a suggested ten foot minimum loop trail and a ten foot or greater promenade trail to accommodate events and vendors. Local connections are called out as secondary trails and are vital in moving residents through Avon. The trails must be scaled appropriate to the user groups. Shared bicycle and pedestrian paved paths should be a minimum of ten feet in width, while pedestrian-only secondary paths can be reduced to between four and six feet as appropriate to the context of the trail or pathway. The Eagle Valley Trail lies to the south of the Tract G parcel, and future efforts should be made to strengthen to connection from Tract G to the regional trail. LEGEND Primary Trail Network Secondary Trail Network Future Connection LAK E L O O P T R A I L PED E S T R I A N M A L L PRO M E N A D E FUTURE CONNECTION TO RIVERFRONT PATH ATTACHMENT A: Tract G - TOA Properties Plan - 2018 27 ACTIVE AND PASSIVE ZONES ACTIVE AND PASSIVE ZONES Five active zones are planned throughout Tract G. The major zones of activity include the multi- purpose field and tennis courts to the west, the beach are to the north of Nottingham Lake, the playground along Lake Street, the ice rink and game plaza, and the splash pad and multi-use civic space for soft programming to the east of Lake Street. The passive areas stitch together the concept including the pedestrian mall to the east and the open space in the park. Community members value a quiet buffer at the north edge of the park because of the close proximity to residences. LEGEND Active areas Passive areas ATTACHMENT A: Tract G - TOA Properties Plan - 2018 TOWN MANAGER REPORT Page 1 of 2 TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager RE: Ordinance No. 19-04 Amending Section 9.12.080 to Authorize Town Council and Town Manager to Designate Events that Allow Persons over Twenty-One Years of Age to Bring and Consume Alcohol Beverages on Town Properties DATE: May 22, 2019 SUMMARY: The Colorado legislature changed the state liquor laws to allow local governments to authorize open container alcohol consumption on municipal properties (e.g. BYOB in the park). The current municipal code prohibits the public from bringing and consuming their own alcohol on public properties. Ordinance No. 19-04 would authorize the Town Council and the Town Manager to allow the general public to bring their own alcohol to specifically designated events and properties. Specific events, times and rules can be established at later time, as appropriate. Ordinance No. 19-04 only adds the new state authorization to the existing municipal code. Due to the timing of first and second reading and the required thirty days for a new ordinance to take effect, first reading is presented so that the Town has the ability to designate events that allow brining your own alcohol by mid-July. No specific “bring your own alcohol” events are identified at this time and such designation is not considered appropriate for any of the Town’s planned special events. However, this would allow the flexibility to add community and family oriented events in the park where permitting “bring your own alcohol” may be appropriate. BACKGROUND: The question of whether the Town of Avon can legally authorize events whereby the general public can bring their own alcohol to events on Town property has been asked every summer for years. Other mountain communities have more or less allowed the general public to bring their own alcohol to communities at municipal properties, especially for events on community park properties in the summer. State law previously disallowed permitting the general public to bring and consume alcohol on public properties. The only means of permitting alcohol on public properties has been through a liquor license permit or by a private event limited to invitees only. Last year, the Colorado Legislature enacted Senate Bill 18-243. Section 11 of Senate Bill 18-243 amended Colorado Revised Statutes (C.R.S.) Sec. 12-47-910(h)(VII) to state that, “. . . it is not unlawful for a person who is at least twenty-one years of age to consume any fermented malt beverage or malt, vinous, or spiritous liquor in any public place . . . specifically authorized by ordinance, resolution or rule adopted by a municipality . . . . ” AMC Sec. 9.12.080 does not currently include this authorization. Ordinance No. 19- 04 would implement Section 11 of Senate Bill 18-243 by authorizing the Town Council and Town Manager to designate specific events and times on Town property where the general public may be able to bring and consume their own alcohol. The expectation is that this would be primarily events in Nottingham Park. The expectation and intent is not to allow the general public to bring and consume their own alcohol during all park hours. Details concerning designation, notice, signage and enforcement are not yet determined, but are expected to be determined administratively with input from the CASE Manager, Recreation Department and Police Department. Page 2 of 2 AMC 9.12.080 is reprinted for convenience with the additional language to implement Section 11 of Senate Bill 18-243 shown as an added sub-paragraph. AMC 9.12.080 - Drinking on public property and public rights-of-way without permit prohibited. (a) It is unlawful for any person to consume any malt, vinous or spirituous liquors or fermented malt beverages upon any street, alley, sidewalk, park, public property, public building or public parking lot in the Town or in any vehicle upon such places unless authorized in this Section 9.12.080. (b) It is unlawful for any person to possess or have in his or her possession or under his or her control in or upon any street, alley, sidewalk, park, public building or public parking lot in the Town, any malt, vinous or spirituous liquors or fermented malt beverages in any container of any kind or description which has been opened or which is not sealed or upon which the seal is broken, except in areas permitted pursuant to Subsection (c) of this Section. The word sealed means the regular seal applied by the United States Government over the cap of all malt, vinous or spirituous liquors or fermented malt beverages. It shall not be unlawful for any person to have in his or her possession or under his or her control one (1) opened container of vinous liquor removed from a licensed premises pursuant to Section 12-47-411(3.5), C.R.S. (c) Consumption and possession of malt, vinous or spirituous liquors or fermented malt beverages on public property and/or public rights-of-way is permitted under the following limited circumstances: (1) Pursuant to the time, location and limitations of a special events permit that has been issued pursuant to Article 48, Title 12, C.R.S.; (2) Pursuant to a private event permit when such person is a member or guest of a qualifying organization and which event meets the qualifications for exemption from special event permits pursuant to Section 12-48-108, C.R.S., except that the consumption of spirituous liquors shall not be permitted by any person at an event which meets the qualifications for exemption from special event permits pursuant to Section 12-48-108, C.R.S.; and, (3) Pursuant to a private event permit that meets the minimum requirements of Section 9.40.040. (4) Pursuant to a designation by the Town Council or the Town Manager to permit persons who are at least twenty-one years of age to bring and consume malt, vinous or spiritous liquors or fermented malt beverages on Town owned properties provided that such designation specifies the date, location and hours of such designated event. OPTIONS: Council may defer consideration on first reading, which would result in delaying the effective date. MOTIONS: “I move to approve first reading of Ordinance No. 19-04 Amending Section 9.12.080 to Authorize Town Council and Town Manager to Designate Events that Allow Persons over Twenty-One Years of Age to Bring and Consume Alcohol Beverages on Town Properties.” ATTACHMENT: Attachment A: Ordinance No. 19-04 ORDINANCE NO. 19-04 AMENDING SECTION 9.12.080 TO AUTHORIZE TOWN COUNCIL AND TOWN MANAGER TO DESIGNATE EVENTS THAT ALLOW PERSONS OVER TWENTY-ONE YEARS OF AGE TO BRING AND CONSUME ALCOHOL BEVERAGES ON TOWN PROPERTIES 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, Section 11 of Senate Bill 18-243 amended the state liquor code to allow municipalities to authorize consumption of alcohol beverages by persons over twenty-one years of age on public properties; and WHEREAS, the Avon Town Council finds that amendments to the Avon Municipal Code will provide greater flexibility and opportunities to create and allow community events on Town properties and with 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 9.12.080(c)(4). A new Sub-Section 9.12.080(c)(4) of the Avon Municipal Code is hereby enacted to read as follows: ATTACHMENT A: Ord No. 19-04 “(4) Pursuant to a designation by the Town Council or the Town Manager to permit persons who are at least twenty-one years of age to bring and consume malt, vinous or spiritous liquors or fermented malt beverages on town owned properties provided that such designation specifies the date, location and hours of such designated event.” Section 3. Codification Amendments. The codifier of the Town’s Municipal Code, Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any typographical error in the enacted regulations, provided that such correction shall not substantively change any provision of the regulations adopted in this Ordinance. Such corrections may include spelling, reference, citation, enumeration, and grammatical errors. Section 4. 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 5. 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 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 the date of final passage 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. 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, ATTACHMENT A: Ord No. 19-04 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 9. 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 May 28, 2019 and setting such public hearing for June 11, 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 June 11, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Kathryn Sellars, Interim Town Attorney ATTACHMENT A: Ord No. 19-04 TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 14, 2019 AVON TOWN HALL, 100 MIKAELA WAY Page 1 1. CALL TO ORDER AND ROLL CALL Mayor Smith Hymes called the meeting to order at 4:01 p.m. A roll call was taken, and Council members present were Amy Phillips, Jennie Fancher, Chico Thuon and Tamra Underwood. Council member Scott Prince arrived at 4:07 p.m. Also present were Town Manager Eric Heil, Interim Town Attorney Kathryn Sellars, Police Chief Greg Daly, Recreation Director John Curutchet, Finance Director Scott Wright, Planning Director Matt Pielsticker, Deputy Town Manager Preston Neill and Town Clerk Brenda Torres. 2. TUTORIAL ON TOWN’S OUTSTANDING DEBT Assistant Town Manager/Finance Director Scott Wright gave a presentation on the Town's current debt position and credit rating. 3. APPROVAL OF AGENDA (MAYOR SMITH HYMES) Councilor Underwood moved to approve the agenda. Councilor Prince seconded the motion and the motion passed unanimously by Council members present. Councilor Wolf was absent. Council member Jake Wolf arrived at 5:02 p.m. 4. PUBLIC COMMENT Adrienne Perer commented on business outreach and suggested that the Town implement a signage or light pole banner program that highlights Town of Avon businesses. Direction was provided by Council to further discuss Adrienne's idea at the Avon Summer Outlook Meeting on May 22nd. 5. BUSINESS ITEMS 5.1. PRESENTATION: LAW ENFORCEMENT EXECUTIVE CERTIFICATION TO CHIEF GREG DALY The Director of the Colorado Bureau of Investigation, John Camper, in his capacity as current president of the Colorado Association of Chiefs of Police, presented Police Chief Greg Daly with the Law Enforcement Executive Certification from the Colorado Association of Chiefs of Police. 5.2. PRESENTATION: SWEARING IN AND BADGE PINNING CEREMONY FOR POLICE OFFICERS ZACHARY HAYNES AND REECE ELLSWORTH Zachary Haynes and Reece Ellsworth were sworn in as Avon's newest police officers. 5.3. PRESENTATION: CLIMATE ACTION COLLABORATIVE ANNUAL REPORT Kim Schlaepfer, Project Manager for the Climate Action Collaborative gave a presentation to Council on the work of the Climate Action Collaborative and she also went over some of the highlights from the 2018 Annual Report and 2017 Inventory Update. 5.4. PRESENTATION: DIRECTION REQUESTED: 100% RENEWABLE ENERGY THROUGH THE HOLY CROSS RENEWABLE ENERGY PURCHASE PROGRAM Mike Steiner with Holy Cross Energy gave a presentation on Holy Cross Energy’s Renewable Energy Purchase Program. Council provided direction to staff to sign up for 100% of the Town government's TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 14, 2019 AVON TOWN HALL, 100 MIKAELA WAY Page 2 electricity to be sourced from renewable resources, specifically wind power, through Holy Cross Energy's Renewable Energy Purchase Program. 5.5. INTERVIEWS OF CULTURAL, ARTS, AND SPECIAL EVENTS COMMITTEE CANDIDATES AND APPOINTMENT OF 7 MEMBERS (DEPUTY TOWN MANAGER PRESTON NEILL) Council interviewed the following CASE Committee applicants: Arzu Basyildiz, Pedro Campos, Chris Cofelice, Jason Denhart, Julie Harris, Lisa Mattis and Kathy Ryan. There was consensus among Council to continue this item to the May 28th Council meeting to allow for applicants Ruth Stanley and Timothy Haley to be interviewed and for staff to bring to Council a revised CASE Committee Resolution that removes the "registered elector" qualification and replaces it with an "Eagle County resident" qualification. Councilor Underwood moved to continue the item to the May 28th Council meeting and to direct staff to prepare for Council a replacement resolution for Resolution 19-05 that removes the "registered elector" qualification and replaces it with an "Eagle County resident" qualification in the “CASE Committee Authority and Procedures.” Councilor Wolf seconded the motion and the motion passed unanimously. 5.6. FIRST READING ORDINANCE 19-03 APPROVING CODE TEXT AMENDMENTS FOR INCLUSIONARY HOUSING REQUIREMENTS (PLANNING DIRECTOR MATT PIELSTICKER) Councilor Prince moved to approve first reading of Ordinance 19-03, with the various edits provided by Councilor Underwood and Councilor Fancher and summarized by Town Manager Eric Heil, setting a final reading and public hearing date of May 28, 2019. Councilor Fancher seconded the motion and the motion passed on a vote of 6 to 1. Councilor Wolf voted no. 5.7. RESOLUTION 19-11 APPROVING A LEASE AGREEMENT WITH VAIL TENURE, LLC FOR WORKER HOUSING AT THE 351 BENCHMARK BUILDING (OLD FIRE STATION) (DEPUTY TOWN MANAGER PRESTON NEILL) Councilor Wolf made a motion to approve Resolution 19-11 Approving a Lease Agreement with Vail Tenure, LLC for Worker Housing at the 351 Benchmark Building, with the changes to the Lease Agreement that were provided by Councilor Underwood. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 6 to 1. Councilor Prince voted no and stated for the record why he voted no. 5.8. RESOLUTION 19-10 APPROVING A REQUEST FOR ALLOCATION OF PEG FUNDS Councilor Wolf made a motion to approve Resolution 19-10 Approving a Request Allocating PEG Funds to High Five Access Media. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously. TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 14, 2019 AVON TOWN HALL, 100 MIKAELA WAY Page 3 5.9. APPROVAL OF MINUTES FROM APRIL 30, 2019 REGULAR COUNCIL MEETING (TOWN CLERK BRENDA TORRES) Councilor Fancher made a motion to approve the April 30, 2019 Regular Council meeting minutes. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 4 to 1. Councilor Wolf voted no. Councilor Thuon and Councilor Underwood abstained from the vote since they were absent during the April 30, 2019 Regular Council meeting. 6. WRITTEN REPORTS 6.1. TOWN CLEAN UP DAY UPDATE (DEPUTY TOWN MANAGER PRESTON NEILL) 6.2. BENCHES OF AVON PROJECT UPDATE (DEPUTY TOWN MANAGER PRESTON NEILL) 6.3. AVON SUMMER OUTLOOK MEETING UPDATE (DEPUTY TOWN MANAGER PRESTON NEILL) 6.4. UPPER EAGLE REGIONAL WATER AUTHORITY APRIL 25, 2019 MEETING SUMMARY (MAYOR SMITH HYMES) 7. MAYOR & COUNCIL COMMENTS & MEETING UPDATES Councilor Thuon said Saturday, May 18th is Colorado Public Lands Day and that the Spraddle Creek Public Lands Day Celebration Hike will take place at 9:00 a.m. on May 18th. Councilor Thuon also talked briefly about the Eagle County Down Payment Assistance Program. Lastly, he asked staff a question about the Beaver Creek Boulevard Streetscape Improvements Project. Staff answered several questions from Council about Town Cleanup Week and the Town Cleanup Day event on May 23rd. Councilor Prince brought up the idea of removing the "registered elector" qualification for Planning and Zoning Commission membership. Council briefly discussed the idea, but no direction was provided. Councilor Fancher highlighted the NWCCOG 2019 Regional Economic Summit that she attended on May 2nd. She also talked about the need for higher paying jobs in Eagle County and said she would like to see a valley- wide effort to incentivize the creation of higher paying jobs. Lastly, she gave a brief update on the CML Spring Outreach Meeting that took place in Vail on May 8th. 8. ADJOURNMENT There being no further business to come before Council, Councilor Underwood moved to adjourn the regular meeting. Councilor Wolf seconded the motion and the motion passed unanimously by Council members present. The time was 9:19 p.m. TOWN OF AVON, COLORADO AVON REGULAR MEETING MINUTES FOR TUESDAY, MAY 14, 2019 AVON TOWN HALL, 100 MIKAELA WAY Page 4 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, Town Clerk APPROVED: Sarah Smith Hymes ___________________________________ Amy Phillips ___________________________________ Jake Wolf ________________________________ Chico Thuon ________________________________ Jennie Fancher ________________________________ Scott Prince ________________________________ Tamra N. Underwood ________________________________ FISCAL YEAR 2019 FINANCIAL REPORT May 28, 2019 ______________________________________________________________________________________ 1. Financial Report Memorandum 2. Sales Tax Report – March 3. Accommodations Tax Report – March 4. Cigarette and Tobacco Tax– 1st Quarter 5. Real Estate Transfer Tax Report – March 6. Recreation Center Admissions – March 7. General Fund Year-To-Date Expenditures – March 8. Fleet Maintenance Fund Year-To-Date Expenditures – March 9. Mobility Fund Year-To-Date Expenditures – March TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Nelly Burns, Senior Accountant Meeting Date: May 28, 2019 Agenda Topic: Fiscal Year 2019 Financial Report –March 2019 SUMMARY Revenues SALES TAX • Sales tax revenue for the month of March totaled $1,130,669.61, an 11.46% increase from the previous year and a 4.69% positive variance over the cumulative monthly budgets, which is based on the average of the relative monthly percentages of taxes collected over a 5-year period. • Monthly sales tax collections by industry compared to one year ago have increased $23,978 for Home/Garden, $8,258 for Grocery/Specialty/Health, $3,982 for Sporting Good Retail/Rental, $45,529 for Miscellaneous Retail, $41,188 for Accommodations, and $15,244 for Restaurants/Bars. Monthly sales tax collections have decreased ($3,153) for Liquor Stores, ($12,415) for Other businesses, and ($8255) for Service Related businesses. • Year-to-date sales tax revenues through March have increased 5.75% over the previous year, which is $133,387.03 over the previous year and $123,725.42 over original budget estimates. 0.00 50000.00 100000.00 150000.00 200000.00 250000.00 300000.00 Sales Tax Comparison by Industry Mar-18 Mar-19 New and Renewed Business, Contractor & Sales Tax Licenses Issued in March Business License - Fixed Location 36 Business License - Home Occupation 9 Business License - Short Term Accommodation 14 Business License – Special Event 0 Business License - Vendor 50 Contractor License 15 Liquor License 5 Sales Tax License 27 Grand Total 156 ACCOMMODATIONS TAX • Accommodations tax revenue for month of March totaled $246,969.61, a 22.87% increase from the previous year and a 6.15% positive variance from the cumulative monthly budgets, which is based on the average of the relative monthly percentages of taxes collected over a 5-year period. • Monthly accommodations tax collections increased $9,248.96 for time shares, $13,905.81 for hotels, and $17,031.48 for vacation rentals compared to March 2018. - 20,000.00 40,000.00 60,000.00 80,000.00 100,000.00 120,000.00 140,000.00 Time Shares Hotels Vacation Rentals March Accommodation Tax Totaled $246,969.61 Mar-19 Mar-18 CIGARETTE AND TOBACCO TAX In summary, grand total of $92,175 has been collected in cigarette and tobacco tax. That includes: • $52,302 for the 1st quarter for the per pack excise tax • $34,017 has been collected for the 40% sales tax on tobacco products • $5,856 in penalties, interest and VAA taxes1. Of this $92,175, roughly $39,000 was collected in January, $29,000 was collected in February, and $24,000 was collected in March. There is a significant decline in tobacco penalty and interest as all businesses have adjusted to reporting deadlines. 1 7-Eleven located on Nottingham Road has not remitted their cigarette and tobacco tax for the period of March. Jan Feb Mar Tobacco Tax - Per Pack Fee $20,659.80 $14,475.84 $17,166.42 Tobacco Tax - 40% Rate-VAA $40.98 $31.65 $44.45 Tobacco Tax - 40% Rate $15,482.96 $12,239.13 $6,177.67 Tobacco- Penalty $2,419.68 $1,647.94 $713.24 Tobacco- Interest $721.39 $247.18 $106.99 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Cigarette & Tobacco Tax Revenue 1st Quarter Totaled $92,175 6887 4826 5723 0 2000 4000 6000 8000 Jan Feb Mar 17,436 Cigarettes Packs Sold 1st Quarter The 2019 adopted budget reflects estimated revenues of $150,000 for the cigarette excise tax and $25,000 for the tobacco sales tax. After the first quarter we have collected 52.7% of the original total budgeted amount of $175,000. REAL ESTATE TRANSFER TAX • Real estate transfer tax collections for the month of March totaled $180,819.76, a decrease of 47.52% from the previous year and a positive variance of 18.19% over the cumulative monthly budgets, which is based on average of the relative monthly percentages of taxes collected over a 5-year period. Real Estate Transfer Tax (RETT) Transactions March RETT Transactions which paid 2% tax 10 RETT Exemptions for Primary Residence 2 RETT Exemptions for Full Exemption 4 Deed Restricted & Tax Exempt 1 Grand Total 17 52.7%47.3% Budgeted Tobacco Tax Revenue Compared to Actual Revenue 1st Quarter 2019 $92,175 1st Qtr Cigarette and Tobacco Tax Revenues $82,825 Remaining budgeted amount RECREATION CENTER ADMISSIONS • March admission fees totaled $78,824.90 a 0.31% decrease from the previous year. This is a 11.78% negative variance compared to the monthly budget, which is based on average of the relative monthly percentages of taxes collected over a 5-year period. Expenditures • General Fund expenditures through March 2019 total 24.61% of the total budget. These expenditures include insurance premiums, computer services, events, community grants, equipment replacement, contract services, janitorial and legal services. • Fleet expenditures through March 2019 total 22.68% of the total budget. These costs include expenditures of stock parts, fleet maintenance, debt service interest, and insurance premiums. • Mobility funds are March 2019 total 24.82% of the total budget. These expenditures include costs of diesel, fleet maintenance, equipment replacement, capital lease payments, and insurance premiums. TOWN OF AVONSALES TAX 2019 Actual vs. Budget Budget YTD Collections Budget % of change % change 2014 2015 2016 2017 2018 2019 2019 Variance from 2018 from BudgetJanuary 638,863.27$ 765,195.68$ 743,689.78$ 792,562.03$ 825,816.08$ 817,828.62 819,179.33$ 1,350.71$ -0.80% 0.17%February673,722.03 788,999.06 774,754.00 798,923.33 785,412.03 829,920.52 809,165.90 (20,754.62) 3.02% -2.50%March793,301.96 875,499.53 945,795.71 918,657.55 1,014,399.70 987,540.28 1,130,669.61 143,129.33 11.46% 14.49%April381,839.56 403,560.42 438,198.18 425,727.85 394,986.15 - - - May340,332.28 353,840.11 404,872.55 394,689.30 418,628.58 - - - June538,517.31 570,424.51 693,675.00 650,794.65 757,498.52 - - - July570,959.86 601,516.82 690,342.23 682,024.81 696,374.00 - - - August547,085.80 572,647.57 593,398.26 618,515.44 639,569.12 - - - September546,016.59 595,235.68 667,949.51 690,883.92 680,720.64 - - - October417,921.46 423,701.53 451,303.71 458,645.68 490,977.90 - - - November397,935.36 438,315.55 445,336.04 435,975.05 456,409.92 - - - December 1,221,263.98 1,159,160.45 1,247,832.82 1,183,666.21 1,264,626.23 - - - Total7,067,759.46$ 7,548,096.91$ 8,097,147.79$ 8,051,065.82$ 8,425,418.87$ 2,635,289$ 2,759,014.84$ 123,725.42$ 5.08% 4.69%Actual Collections$0$200,000$400,000$600,000$800,000$1,000,000$1,200,0002015 2016 2017 2018 2019YearSales Tax Collections for March TOWN OF AVON ACCOMMODATIONS TAX 2019 Actual vs. Budget Budget YTD Collections Budget % change % change 2014 2015 2016 2017 2018 2019 2019 Variance 2018 to budget January 129,851.78$ 164,361.04$ 168,424.63$ 190,207.82$ 181,588.99$ 188,424$ 197,879.22$ 9,455.43$ 4.03%5.02% February 150,317.06 175,056.31 185,370.53 194,804.88 186,147.24 201,354 203,190.38 1,836.30$ 4.30%0.91% March 168,597.39 183,650.29 217,387.54 201,008.55 206,783.36 220,713 246,969.61 26,256.57$ 22.87%11.90% April 31,626.02 34,825.13 60,916.55 38,340.02 33,275.27 44,932 - May 21,961.97 28,002.56 37,357.48 39,961.98 42,618.10 38,366 - June 54,232.23 53,397.46 73,591.08 83,723.31 94,803.78 81,235 - July 81,083.01 86,301.22 107,595.18 119,300.76 119,458.02 116,007 - August 71,044.33 75,107.71 87,674.05 100,628.23 98,193.15 97,696 - September 50,840.16 60,417.74 68,139.11 81,837.60 85,257.82 78,242 - October 34,977.59 38,706.72 45,738.23 48,223.10 53,236.86 49,878 - November 32,064.02 34,328.47 37,570.50 46,397.08 47,934.88 44,777 - December 168,944.85 198,421.26 200,114.56 189,505.28 185,008.67 212,712 - Total 995,540.41$ 1,132,575.91$ 1,289,879.44$ 1,333,938.61$ 1,334,306.14$ 1,374,335.32$ 648,039.21$ 37,548.31$ 10.58%6.15% 0.88 0.88 0.97 1.00 0.97 Actual Collections $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2015 2016 2017 2018 2019 Accommodations Tax Collections for March Town of AvonReal Estate Transfer Tax 2019 Actual vs. BudgetBudget YTD Collections $ Change % of Change % change 2013 2015 2016 2017 2018 2019 2019 2018 2018 to budget22,535.00$ 48,640.40$ 64,422.00$ 107,390.00$ 264,063.20$ 92,927.86$ 72,520.00$ (191,543.20)$ -72.54%-21.96%55,872.69 85,479.08 200,850.86 270,815.26 269,578.51 161,754.65 298,730.16 29,151.65$ 10.81%84.68%125,927.64 168,744.22 265,061.65 254,737.53 344,556.74 212,416.61 180,819.76 (163,736.98)$ -47.52%-14.87%144,437.80 125,266.30 159,046.06 249,938.93 122,312.21 146,800.60 121,784.12 237,971.08 184,987.10 377,490.82 351,236.93 233,390.60 90,309.74 294,434.84 307,127.24 703,419.85 343,140.71 318,604.88 386,434.78 396,838.68 259,977.94 219,208.74 272,420.41 281,299.66 97,579.70 152,380.93 186,483.40 592,467.49 343,249.80 251,477.88 157,010.67 291,223.61 321,957.68 423,013.80 311,022.50 275,681.97 169,839.80 172,855.22 641,688.59 497,642.58 330,671.24 332,215.54 112,491.82 169,328.38 315,109.37 425,402.80 211,818.76 226,184.57 83,382.60 225,862.90 588,514.66 227,918.50 196,105.45 242,245.18 1,567,606.36$ 2,369,025.64$ 3,495,226.55$ 4,349,446.30$ 3,360,176.46$ 2,775,000$ 552,069.92$ (326,128.53)$ -37.14%18.19%Budget2,775,000.00 Variance, Favorable (Unfavorable) (2,222,930.08)$ Actual Collections$0$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,0002015 2016 2017 2018 2019YearReal Estate Transfer Tax for March TOWN OF AVONRECREATION CENTER ADMISSION FEES 2019 Actual vs. Budget Budget YTD Collections Budget % of change % change 2014 2015 2016 2017 2018 2019 2019 Variance from 2018 from BudgetJanuary 70,039.90$ 62,607.00$ 64,723.00$ 74,674.00$ 88,582.09$ 79,714.43$ 72,981.40$ (6,733.03)$ -17.61% -8.45%February68,578.10 63,838.00 68,506.00 86,342.00 75,952.60 80,287.10 64,868.20 (15,418.90)$ -14.59% -19.20%March72,616.10 77,902.00 81,664.00 76,023.00 79,071.20 85,605.34 78,824.90 (6,780.44)$ -0.31% -7.92%April64,370.00 61,760.00 55,452.00 67,398.00 61,817.56 68,700.13 May35,063.70 43,119.00 50,067.40 54,337.00 50,252.60 51,467.96 June46,194.30 55,052.00 58,430.50 58,044.00 62,135.02 61,860.62 July71,491.30 61,472.00 66,399.80 65,873.60 72,441.40 74,641.93 August57,328.80 63,233.00 66,388.60 76,558.30 73,573.10 74,510.12 September 43,829.00 36,846.00 44,719.00 49,017.70 49,315.70 49,453.74 October48,803.00 75,818.00 61,167.00 51,833.00 59,692.77 65,719.61 November 93,822.00 29,570.00 71,384.00 72,114.00 126,981.80 87,063.24 December 69,258.00 77,672.00 112,201.00 169,092.78 186,927.10 186,927.10 Total741,394.20$ 708,889.00$ 801,102.30$ 901,307.38$ 986,742.94$ 965,951$ 216,674.50$ (28,932.37)$ -11.06% -11.78%Actual Collections $73,000 $74,000 $75,000 $76,000 $77,000 $78,000 $79,000 $80,000 $81,000 $82,000 $83,0002015 2016 2017 2018 2019Recreation Center Admissions - March Dept./Div.2019 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget General Government: 111 Mayor and Town Council 262,117$ 905$ 90,823$ 170,390$ 34.99% 112 Boards and Commissions 16,049 - 2,062 13,987 12.85% 113 Town Attorney 155,000 4,560 43,143 107,297 30.78% 115 Town Clerk 120,800 7,794 20,027 92,979 23.03% 121 Municipal Court 155,008 14,789 26,843 113,376 26.86% 131 Town Manager 386,895 15 35,923 350,957 9.29% 133 Community Relations 202,582 12,596 30,162 159,825 21.11% Total General Government 1,298,451 40,659 248,983 1,008,809 22.31% Human Resources Department: 132 Human Resources 537,456 19,173 91,972 426,311 20.68% Finance & IT Department: 141 Finance 997,181 98,197 199,054 699,930 29.81% 143 Information Systems 431,091 58,990 92,071 280,030 35.04% 149 Nondepartmental 583,517 225,712 189,109 168,697 71.09% Total Finance & IT 2,011,789 382,898 480,234 1,148,657 42.90% Total General Gov't Departments 3,847,696 442,730 821,189 2,583,778 32.85% Community Development: 212 Planning 293,353 23,454 58,367 211,532 27.89% 213 Building Inspection 177,039 2,100 34,680 140,259 20.78% 215 Town Produced Events 210,019 10,922 45,979 153,118 27.09% 216 Signature Event Seed Funding 500,000 17,245 21,200 461,555 7.69% 217 Community Grants 201,000 250 101,900 98,850 50.82% 218 Salute to the USA 110,715 1,427 19,103 90,184 18.54% Total Community Development 1,492,126 55,398 281,230 1,155,499 22.56% Police Department: 311 Administration 795,463 68,762 209,775 516,927 35.02% 312 Patrol 2,778,057 38,047 589,853 2,150,157 22.60% 313 Investigations 315,990 494 71,355 244,141 22.74% Total Police 3,889,510 107,303 870,983 2,911,224 25.15% Public Works: 412 Engineering 275,025 2,496 53,441 219,088 20.34% 413 Roads and Bridges 2,321,714 88,137 511,608 1,721,969 25.83% 415 Parks 671,860 65,527 145,845 460,488 31.46% 418 Buildings & Facilities 1,169,504 115,873 273,156 780,474 33.26% Total Public Works 4,438,103 272,033 984,050 3,182,020 28.30% Recreation Department: 514 Administration 244,297 31,133 47,038 166,126 32.00% 515 Adult Programs 62,701 799 13,842 48,061 23.35% 516 Aquatics 629,604 20,880 160,071 448,653 28.74% 518 Fitness 136,807 273 76,867 59,667 56.39% 519 Guest Services 336,180 2,568 78,875 254,737 24.23% 521 Youth Programs 161,580 2,664 26,066 132,849 17.78% 523 Community Swim Program 63,324 - 17,643 45,681 27.86% Total Recreation 1,634,493 58,317 420,402 1,155,774 29.29% Contingency 100,000 100,000 Operating Transfers 1,870,000 (63,223) 1,870,000 1,870,000 TOTAL OPERATING EXPENDITURES 17,271,928$ 935,780$ 3,314,631$ 12,958,294$ 24.61% Department Expenditure Summaries General Fund March 2019 Expenditures to Date Dept./Div.2019 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES Public Works: 434 Fleet Maintenance 1,801,273$ 79,941$ 328,643$ 1,392,690$ 22.68% Total Operating Expenditures 1,801,273 79,941 328,643 1,392,690 22.68% TOTAL EXPENDITURES 1,801,273$ 79,941$ 328,643$ 1,392,690$ 22.68% Expenditure Summary Fleet Maintenance Enterprise Fund March 2019 Expenditures to Date Dept./Div.2019 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES 431 Transit Administration 286,200$ 63,153$ 56,084$ 166,963$ 41.66% 432 Transit Operations 2,087,011 2,309 502,974 1,581,728 24.21% 436 Wash Bay 169,093 7,442 50,539 111,112 34.29% 437 Programs 373,720 41,250 - 332,470 11.04% Total Operating Expenditures 2,916,024 114,153 609,597 2,192,274 24.82% TOTAL EXPENDITURES 2,916,024$ 114,153$ 609,597$ 2,192,274$ 24.82% Expenditure Summary Mobility Enterprise Fund March 2019 Expenditures to Date WRITTEN REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Preston Neill, Deputy Town Manager Date: May 28, 2019 Topic: UPDATE ON O’NEAL SPUR PARK STRUCTURES SUMMARY: The purpose of this memo is to provide Council with an update on the structures within O’Neal Spur Park in Wildridge. In the next couple of weeks, the wooden picnic awning, as well as the wooden playground equipment, will be power washed and provided with a fresh coat of stain. The port-o-let enclosure has fallen into a state of disrepair and its wood paneling requires an upgrade. Public Works plans to repair the port-o- let enclosure with corten material (corrugated steel). The steel has been ordered and once it arrives, Public Works will replace the wood paneling with the steel. The corten material requires little maintenance and is expected to look very nice. BUDGET IMPLICATIONS: There is $20,000 in the Capital Projects Fund Budget for “O’Neal Spur Park Improvements.” The corten material has been ordered at a cost of $2,500. The cost to stain the picnic awning and playground equipment is $3,000. 1 PZC Meeting Abstract for Tuesday, May 21, 2019 Planning & Zoning Commission Meeting Abstract Tuesday, May 21, 2019 100 Mikaela Way – Avon Municipal Building I. Call to Order The meeting was called to order at 5:04pm II.Swearing in of Jared Barnes, Lindsay Hardy, and Steve Nusbaum Avon Town Clerk, Brenda Torres, swore in the newly reappointed Planning and Zoning Commissioners. III.Roll Call All Commissioners were present. IV.Appointment of Chairperson and Vise-Chairperson Summary:Pursuant to the PZC Rules of Procedure, PZC shall select its chairperson and vice chairperson on a yearly basis immediately after the appointment of new members. Staff will also ask that PZC re-affirm Lindsay Hardy’s role as Village at Avon DRB representative. Action: Commissioner Nusbaum nominated Lindsay Hardy as Chairperson; seconded by Commissioner Barnes. All were in favor. Commissioner Nusbaum nominated Jared Barnes as Vice Chairperson; seconded by Commissioner Hardy. All were in favor. V. Additions & Amendments to the Agenda None. VI.Conflicts of Interest None. VII.Fence Alternative Design & Minor Development Plan – PUBLIC HEARING File:MNR19004 & AEC19003 Applicant/Owner:Sean Reynolds Property:Lot 51B, Block 2, Wildridge Subdivision / 2646B Beartrap Road Summary:Proposed fence with mesh wiring. The application requires an AEC because fences in Wildridge are only allowed to be made of wood per code. Public Comments: None. Action on AEC19003: Commissioner Nusbaum motioned to approve File AEC19003 with the following findings: 1.The proposed application was reviewed pursuant to §7.16.120, Alternative Equivalent Compliance; 2.The proposed alternative achieves the intent of the subject design or development standard to the same or better degree than the subject standard; 3.The proposed alternative achieves the goals and policies of the Avon Comprehensive Plan to the same or better degree than the subject standard; 4.The proposed alternative results in benefits to the community that are equivalent to or better than compliance with the subject standard; and 2 PZC Meeting Abstract for Tuesday, May 21, 2019 5.The proposed alternative does not impose greater impacts on adjacent properties than would occur through compliance with the specific requirements of the Code. Commissioner Barnes seconded the motion; it passed 5-1 with Commissioner Golembiewski opposing. Action on MNR19004: Commissioner Nusbaum motioned to approve File MNR19004 with the following findings and condition: Findings: 1.The application is complete; 2.The application provides sufficient information to allow staff to determine that the application complies with the relevant review criteria; 3.The application complies with the goals and policies of the Avon Comprehensive Plan; 4.There is no extra demand for public services or infrastructure exceeding current capacity by the application; 5.The design relates the development to the character of the surrounding community; and 6.The modifications qualify as a Minor Development Plan pursuant to §7.16.080 of the Development Code. Condition: 1.All denuded landscape areas will be reseeded with native mix grass. Commissioner Barnes seconded the motion; it passed unanimously. VIII.Project Referral for Avon Apartments Applicant:Richard Graves Property:Planning Area F / Lot 1, Village (at Avon) Subdivision / 1000 E. Beaver Creek Blvd Owners:Traer Creek RP-LLC Summary:Pursuant to the Village (at Avon) PUD Guide, design projects are to be referred, for comment only, to the Avon Planning and Zoning Commission. Comments will be provided to the Village (at Avon) Design Review Board for consideration in their final review of the project. Public Comment: None. Action: No formal action. Matt Pielsticker explained that he would summarize comments in writing, provide to Village at Avon DRB as DRAFT document, and bring back to the Commission at their next meeting for review and finalization IX.Consent Agenda A – PZC Meeting Minutes – April 9, 2019 B – Record of Decision – Benchmark Road Parking C – Record of Decision – Lot 7 Riverfront & Tract H Benchmark at Beaver Creek Connector Path Action:Commissioner Nusbaum motioned to approve the Consent Agenda; seconded by Commissioner Howell. All were in favor and the motion passed unanimously. X. Adjourn The meeting was adjourned at 7:49pm