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TC Packet 07-09-2019 AVON TOWN COUNCIL MEETING AGENDA TUESDAY, JULY 9, 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 970-748-4001 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. 1 1. CALL TO ORDER AND ROLL CALL 5:00 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.] 5:05 4. BUSINESS ITEMS 4.1. RESOLUTION NO. 19-13 APPOINTING PAUL WISOR AS THE TOWN ATTORNEY AND APPROVING THE AGREEMENT FOR LEGAL SERVICES WITH GARFIELD & HECHT, P.C. (TOWN MANAGER ERIC HEIL) (10 MINUTES) 5:10 4.2. FIRST READING OF ORDINANCE 19-05 INCREASING PRIMARY RESIDENCE RETT EXEMPTION (TOWN MANAGER ERIC HEIL) (60 MINUTES) 5:20 4.3. INITIATE ZONING AMENDMENT FOR LOT 16, BENCHMARK SUBDIVISION (PLANNING DIRECTOR MATT PIELSTICKER) (10 MINUTES) 6:20 4.4. RESOLUTION 19-15 APPROVING AD HOC CITIZEN FINANCE COMMITTEE (TOWN MANAGER ERIC HEIL) (10 MINUTES) 6:30 4.5. RESOLUTION 19-16 APPROVING AD HOC CITIZEN COMMITTEE FOR HEALTH, RECREATION PROGRAMMING AND RECREATION CENTER DESIGN (TOWN MANAGER ERIC HEIL) (10 MINUTES) 6:40 4.6. AUTHORIZATION FOR NOTICE OF AWARD FOR BENCHMARK ROAD PARKING PROJECT (TOWN ENGINEER JUSTIN HILDRETH) (10 MINUTES) 6:50 4.7. WORK SESSION: REVIEW AND DISCUSSION OF TOWN CODE OF ETHICS (TOWN ATTORNEY PAUL WISOR) (45 MINUTES) 7:00 4.8. WORK SESSION: REVIEW AND DISCUSSION OF SHORT-TERM RENTAL TAX (TOWN ATTORNEY PAUL WISOR) (30 MINUTES) 7:45 4.9. APPROVAL OF LETTER TO SENATOR KERRY DONOVAN REQUESTING FUNDS FOR COLORADO WATER PLAN (TOWN MANAGER ERIC HEIL) (5 MINUTES) 8:15 4.10. APPROVAL OF SIGNING AMICUS BRIEF WITH COLORADO MUNICIPAL LEAGUE CONCERNING INDEPENDENT ETHICS COMMISSION AND HOME RULE AUTHORITY (TOWN ATTORNEY PAUL WISOR) (10 MINUTES) 8:20 AVON TOWN COUNCIL MEETING AGENDA TUESDAY, JULY 9, 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 970-748-4001 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. 2 4.11. APPROVAL OF MINUTES FROM JUNE 25, 2019 COUNCIL RETREAT (DEPUTY TOWN MANAGER PRESTON NEILL) 4.12. APPROVAL OF MINUTES FROM JUNE 25, 2019 REGULAR COUNCIL MEETING (DEPUTY TOWN MANAGER PRESTON NEILL) (5 MINUTES) 8:30 5. WRITTEN REPORTS 5.1. ABSTRACT FROM JULY 2, 2019 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) 5.2. GIFT REPORTING – PURINA PRO PLAN INCREDIBLE DOG CHALLENGE VIP TICKETS, VAIL VALLEY BREW FEST TICKETS AND BEAVER CREEK RODEO SERIES VIP TICKETS (DEPUTY TOWN MANAGER PRESTON NEILL) 5.3. UPPER EAGLE REGIONAL WATER AUTHORITY JUNE 27, 2019 MEETING SUMMARY (MAYOR SMITH HYMES) 6. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES) 8:35 7. ADJOURNMENT 8:50 _________________________________________________________________________________________________________________________________________________________________________________________________________ *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: August 13, 2019 - Review and Direction on Eagle River Water Quality Improvement Efforts - Review of Polystyrene and Plastics Regulations - Ordinance 19-XX Approving an Amendment to the Wildridge PUD Amendment for Tract O and Tract N, Block 5, adding Residential Density - Approval of CC4CA Policy Agenda TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Preston Neill, Deputy Town Manager Date: July 9, 2019 Topic: RESOLUTION 19-13 APPOINTING PAUL WISOR AS THE TOWN ATTORNEY AND APPROVING THE AGREEMENT FOR LEGAL SERVICES WITH GARFIELD & HECHT, P.C. ACTION BEFORE COUNCIL: Council is asked to take action on Resolution 19-13 Appointing Paul Wisor as the Town Attorney and Approving the Agreement for Legal Services with Garfield & Hecht, P.C. PROPOSED MOTION: “I move to approve Resolution 19-13 Appointing Paul Wisor as the Town Attorney and Approving the Agreement for Legal Services with Garfield & Hecht, P.C. SUMMARY: After soliciting proposals for legal services and conducting interviews on June 11, 2019, the Town Council agreed to enter into an agreement for legal services with Garfield & Hecht, P.C. This resolution provides for the appointment of a new town attorney, Paul Wisor, effective July 9, 2019. ATTACHMENT: Resolution 19-13 RESOLUTION 19-13 APPOINTING PAUL WISOR AS THE TOWN ATTORNEY AND APPROVING THE AGREEMENT FOR LEGAL SERVICES WITH GARFIELD & HECHT, P.C. 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 Home Rule Charter of the Town of Avon states in Chapter X, Section 10.1, that the Council shall appoint a Town Attorney to serve at the pleasure of the Council, who shall be admitted to practice in Colorado and shall have been in active practice at least five years prior to appointment; and WHEREAS, the Town of Avon solicited proposals for legal services; and WHEREAS, Paul Wisor of the law firm Garfield & Hecht, P.C., submitted a proposal for legal services and Mr. Wisor meets the qualifications for appointment as the Town Attorney of the Town of Avon; and WHEREAS, The Town Council of the Town of Avon desires to appoint Paul Wisor to serve as the Town Attorney and desires to retain the law firm of Garfield & Hecht, P.C.; and WHEREAS, the Town Council desires to promote an efficient transition in the office of the Town Attorney. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON: 1. The Town Council hereby appoints Mr. Paul Wisor as the Town Attorney of the Town of Avon effective July 9, 2019. 2. The Town Council hereby approves the Agreement for Legal Services with the law firm of Garfield & Hecht, P.C. attached hereto as Exhibit A and authorizes the Mayor and Town Clerk to execute the Agreement for Legal Services. ACCEPTED, APPROVED AND ADOPTED this 9th day of July, 2019. AVON TOWN COUNCIL By:_______________________________ Attest:_________________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk 2041977v1 GARFIELD & HECHT, P.C. ATTORNEYS AT LAW Since 1975 www.garfieldhecht.com July 9, 2019 VIA EMAIL Town of Avon Attn: Honorable Sarah Smith Hymes P.O. Box 975 Avon, CO 81620 Re: LEGAL REPRESENTATION AND FEE AGREEMENT Madame Mayor: 1. Scope of Engagement; You Hire Us To Act As Your Attorney: Thank you for the opportunity to work with the Town of Avon (the “Town”) as its Town Attorney. This letter shall serve as an agreement for our firm, through the appointment of Paul Wisor by Town Council to serve as Town Attorney, to represent the Town. Unless you specifically engage us to provide additional services after the completion of this engagement, we do not undertake to advise you with respect to future legal developments relating to this engagement. 2. Fees and Staffing; We Bill By The Hour: We will bill the Town on a tiered structure. Mr. Wisor and Shareholders within the firm within the firm with bill the Town for Town work at a rate of $195.00 per hour and Associates will be the Town at a rate of $185.00 per hour. For all work provided on behalf of the Town subject to reimbursement to the Town by developers or other third parties, Mr. Wisor and Shareholders within the firm will bill at a rate of $245.00 per hour and Associates will bill at a rate of $210.00. From time to time, we may assign other lawyers, primarily associates, or paralegals for discrete tasks. We agree to keep records of all time spent. Unless otherwise advised, you will be billed monthly. Unless otherwise agreed, you will be billed for professionals’ time at increments of 1/10th hour. Our rates and fees are based on factors set forth in Rule 1.5(a) of the Colorado Rules of Professional Conduct, applicable to all Colorado attorneys. We periodically review and adjust the hourly rates of our attorneys, paralegals or other timekeepers in response to rising costs, market conditions or other factors law firms typically take into account. We shall not adjust our fees without first providing you with at least four (4) months’ notice prior to any such adjustment. Nothing herein shall be construed as to constitute a multiple fiscal year obligation of the Town under Article X, Section XX of the Colorado Constitution or any other provision of Colorado law. 3. Expenses; You Will Reimburse Us For Expenditures On Your Behalf: You agree to pay promptly for such legal services and to pay all expenses incurred in connection therewith, such as long distance, court reporters, data compilation and management, office copying service, postage, Federal Express or other overnight carriers, filing, recording fees, secretarial overtime, and the like allocated to AVON OFFICE 0070 Benchmark Road Post Office Box 5450 Avon, Colorado 81620 Telephone: (970) 949-0707 Facsimile: (970) 949-1810 EXHIBIT A Town of Avon July 9, 2019 Page 2 2041977v1 your legal matter. We may also incur travel, mileage, lodging and subsistence expenses for your legal matter for which you are also responsible. In certain matters, we will need to retain consultants, vendors and experts on your behalf. You authorize us to incur costs on your behalf, but we are not required to do so. We will attempt to obtain your consent before incurring costs in excess of $500.00, but you understand that circumstances may make it impractical to obtain your consent before incurring such costs. You agree that you are solely responsible for any costs incurred on your behalf. In lieu of advancing costs, we may request funds from you for the payment of anticipated costs, which will be kept in our COLTAF account until the costs are incurred. These payments or requested funds for payment must be paid promptly. 4. Litigation; We Cannot Guarantee Success: If our representation of you involves a contested or adversarial matter, we intend to assert your position vigorously and efficiently. However, you must understand that, in representing any client in a contested or adversarial matter, we cannot promise or guarantee the ultimate success of your position, whether in a lawsuit, arbitration or any other forum. Our performance also depends, in large part, upon your cooperation and particularly upon prompt receipt of information and instructions from you from time to time as the matter progresses. Further, the level of activity may, in large measure, depend on the steps the other parties may take and their willingness, if any, to resolve your dispute without a full-scale trial. We hereby advise you of the existence of alternative forms of dispute resolution which might reasonably be pursued to attempt to resolve the legal dispute or to reach the legal objective sought. 5. Payment; We Charge Interest On Late Payment: If you are billed for any legal services or expenses, you agree that payment must be made within 30 days of the date of any such bill. You will be charged compounded interest at a periodic monthly rate of 1.5% (this is an annual percentage rate of 18%) on any balance unpaid after 30 days, but in no event less than a 1.5% periodic monthly rate. In cases of our representation of a corporation or other business entity, your signature below constitutes your undertaking to be personally responsible for all statements rendered to such entities in the course of our representation. Unless otherwise agreed, where there are multiple clients, we look to each for full payment of our bills without having to wait for the others to pay their share pursuant to any arrangement that may exist among them. In the event that you do not pay an invoice within forty-five (45) days and no information is brought to our attention regarding a dispute as to the amount owed, we may elect to take legal action including a collection lawsuit to recover our unpaid legal fees and costs and accrued interest. Under such circumstances you agree to pay our reasonable legal fees and costs incurred in such collection activity and you further agree to submit to the jurisdiction of the County or District Court in Colorado of the county in which our office is located where the primary legal services were provided as reasonably determined by us. 6. Withdrawal; We Reserve The Right To Withdraw, You May Always Terminate Us: By written notice, we may withdraw as your counsel for reasons including, but not limited to, failure to pay fees or expenses, failure to cooperate with the firm, conflicting communications where there is more than one client and those mandated by the Colorado Rules of Professional Conduct or otherwise provided in this agreement. If permission for withdrawal from employment is required by court rules, the firm shall withdraw upon receiving permission from the court; and you agree to pay all legal fees until such permission is obtained or otherwise incurred incident to the winding up and conclusion of your EXHIBIT A Town of Avon July 9, 2019 Page 3 2041977v1 representation. Upon withdrawal, you shall immediately pay any remaining balance owed on your account. You may also terminate our employment by notifying us in writing. The firm reserves its right to assert a retaining lien or charging lien, as appropriate, on any unpaid balance. 7. Privacy; Your Assurance Of Confidentiality, When Disclosures Are Permitted: Subject to professional and ethical standards, all communications between us are protected by the attorney-client privilege. This privilege may be waived by you if you share the communications or advice with third parties. We advise you not to share or disclose attorney-client communications to any third parties without first consulting us. Additionally, we advise that you avoid posting any information related to the scope of our representation on social media, as this may result in a waiver of the attorney-client privilege. Any information that you post on social media may be discoverable by adverse parties; we advise you to avoid posting any information related to the scope of our representation or your underlying legal matter on social media. Confidential information may be shared by us with other attorneys, paralegals, contract attorneys or legal assistants and outside consultants retained on your behalf whose services are necessary in the course of our representation. Confidential information may also be disclosed by us to third parties where such disclosure is implied from the legal services you have requested us to provide such as our outside ethics counsel or our IT provider. We protect all such information with physical, electronic, and procedural safeguards that comply with our professional standards. If we are representing multiple clients in this matter, it is your responsibility to advise us if any information you may give us is confidential. Otherwise, all relevant communications received from you may be disclosed to other clients we represent in this matter. 8. Insurance; We Are Not Responsible For Insurance You May Have: It is possible you may have insurance policies relating to the matter wherein you have requested our assistance. You should carefully check all policies and, if coverage may be available, notify the insurance company about the matter as soon as possible. We do not undertake any responsibility to advise you as to the existence, applicability or availability of any insurance coverage or to give notice or tender any claims to any insurance company for any of the matters being handled by this firm. If any insurance company undertakes the payment of any portion of our billing statements, you will still remain responsible for any amounts not paid by the insurance company. Finally, if there is insurance involved in any transaction where we represent you, it is your responsibility to determine whether or not the underwriter has adequate resources to pay any claim. We are not financial analysts, and we do not have the expertise to advise you as to the financial condition of any underwriter or insurance agent. 9. Conflicts of Interest; Conflict Checks; Conflicts That May Arise Later and Waivers: To protect both of us and to comply with our professional obligations, our representation is subject to clearance of any conflicts of interest with present or former clients of our firm, as well as approval by the firm’s management which reviews all new matters. The firm acknowledges and recognizes that the Town of Avon as the local government jurisdiction has regulatory, licensing, taxing and fee authority that affects all property owners and businesses in the Town of Avon. The firm shall use its best efforts to disclose all clients of the firm with property or business interests in the Town of Avon and shall promptly provide an updated client list at any time that the firm accepts new clients with property or business interests in the Town of Avon. The Town shall retain the firm’s client list as confidential. Furthermore, the firm agrees to use its best efforts to disclose if the firm represents, or has formerly represented, any EXHIBIT A Town of Avon July 9, 2019 Page 4 2041977v1 individual who has interaction with the Town of Avon concerning licensing or compliance with Avon’s municipal code, regulations or other laws. Town acknowledges that the firm’s representation on any specific matter is subject to clearance of any conflicts of interest with present or former clients of our firm, as well as approval by the firm’s management which reviews all new matters. The firm agrees to not represent any individual or entity in any matter involving threated or actual litigation against the Town. Further, Paul Wisor will not represent any individual living within the Town nor any property owner or business interest or transactional matter within the Town. In the event of an actual or potential conflict of interest with the Town arises as a result of proposed representation by a lawyer in our firm other than Paul Wisor of a present or future client in a transactional matter, the firm agrees to promptly consult with the Town. If the conflict cannot be resolved through a waiver of a conflict of interest signed in writing by the Town the firm agrees that it will not engage in the matter giving rise to the potential conflict. 10. File Retention Policy; When Your Files May Be Disposed Of: The firm reserves the right to dispose of any file four (4) years after the legal matters described therein have been resolved or four (4) years after the last work on the matter has been performed, whichever is first. If you wish to obtain your file, you must do so by written request within said four (4) year period. You agree to be responsible for the shipping and handling charges incurred in forwarding these files to you or to any third party you may designate. 11. Dispute Resolution; We Will Try To Resolve Disputes By Mediation And If Not Successful Then By Arbitration: In the event of any dispute, controversy or claim (a “Dispute”) arising from or relating to (1) this agreement or breach thereof, including a dispute as to the amount owed for legal fees or (2) any representation or services provided by the firm including possible malpractice where the Dispute cannot be resolved by direct discussions between the parties, you and this firm agree to first endeavor to resolve the Dispute by mediation before resorting to arbitration. Mediation may be initiated by written notice by either party who has authority to resolve the Dispute. If the Dispute is not resolved within sixty (60) days after the beginning of mediation then, upon written notice by either party to the other, the dispute shall be finally resolved by binding arbitration conducted by, and in accordance with the rules of the Judicial Arbiter Group, Inc., or, if such entity is no longer functioning, its successor or such other entity most nearly performing the same function in Colorado as we may reasonably determine. BY AGREEING TO ARBITRATION THIS FIRM AND YOU AGREE TO WAIVE ANY RIGHT TO A TRIAL BY JURY. On balance we believe arbitration is a worthwhile way to resolve Disputes because it can be done expeditiously and with less expense than litigation. The place of mediation and arbitration shall be in the county in Colorado in which our office is located where the primary legal services were provided as reasonably determined by us. Except as may be required by law, a party, mediator or arbitrator may not, with respect to a Dispute, disclose the existence, content or results of any discussions, mediation, or arbitration hereunder without the prior written consent of both parties, and the process of discussions, mediation, if necessary, and arbitration, if necessary, shall, to the fullest extent allowed by law, be the sole means of resolving any Disputes. If we prevail in the arbitration, you agree to pay our reasonable attorney fees and costs incurred. As to non-payment of legal fees only, and provided neither party has requested mediation or arbitration, we reserve the right to file a collection lawsuit. If we have commenced a collection lawsuit for legal fees owed and in the course of that litigation you raise any EXHIBIT A Town of Avon July 9, 2019 Page 5 2041977v1 matters that are required to be resolved in accordance with the dispute resolution procedures set forth herein, we shall dismiss or stay the litigation and submit the dispute to these resolution procedures. 12. E-Mail Alerts; Website: If you have provided us with your e-mail or mailing address, we may periodically send to you via e-mail or regular mail alerts involving firm news or changes in laws. If you do not wish to receive these alerts, please let us know, and we will omit your name from our distribution list. Sending such alerts is solely a courtesy to our clients and does not give rise to any duty on our part to keep you informed of changes in laws or constitute legal advice. Documents we send you by e-mail (whether or not containing confidential information) will not be encrypted unless you request us, in writing, to encrypt outgoing e-mail and we are able, without significant additional cost, to agree with you and implement mutually-acceptable encryption standards and protocols. We make reasonable attempts to exclude from our e-mails and any attachments any virus or other defect that might affect any computer or information technology system. However, it is your responsibility to put in place measures to protect your computer system against any such virus or defect, and we do not accept any liability for any loss or damage that may arise from the receipt or use of electronic communication from us. If you are a corporation or other form of entity, your signature below constitutes a consent to include your name in the Representative Client listing appearing on our website. We never post the names of individuals on the list. If you do not wish to have your name appearing on the listing, please let us know. Please acknowledge your acceptance of the terms set forth herein by executing this letter and returning it to the undersigned or send it back in electronic format. We look forward to working with you. Very truly yours, GARFIELD & HECHT, P.C. By: Paul F. Wisor AGREED TO: _______________________________ Sarah Smith Hymes, Mayor, Town of Avon If a different billing address is not provided below the address at the beginning of this engagement letter will be used for billing purposes. You may also elect to have your billing emailed to you. Please select your preferred method of delivery below. □ Billing Mailing Address: □E-Mail – Billing E-mail Address: __________________________________ ____________________________ __________________________________ __________________________________ EXHIBIT A Town of Avon July 9, 2019 Page 6 2041977v1 cc: Eric Heil, Avon Town Manager EXHIBIT A Report re: Ordinance No. 19-05 Increasing Primary Residence Exemption Page 1 of 3 TOWN MANAGER REPORT TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager RE: Ordinance No. 19-05 Primary Residence RETT Exemption DATE: July 1, 2019 SUMMARY: Ordinance No. 19-05 is presented to Council for consideration and review on first reading. A power point presentation will be provided prior to the Council meeting that will summarize the financial points in this report and will provide examples of how an increased exemption from real estate transfer taxes for primary residences would benefit buyers in Avon. BACKGROUND: Council adopted Avon’s first Community Housing Plan last December. Council previously expressed a desire to consider increasing the Real Estate Transfer Tax (RETT) exemption for primary residences. Draft language was presented in Ordinance No. 19-01 in early 2019; however, Council separated out the tax and fee waivers for Community Housing in Ordinance No. 19-01 and recently adopted that Ordinance. 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. The proposed amendment to increase the primary residence exemption has been simplified by creating a separate independent exemption rather than building upon the two existing exemptions for primary residences. TABOR IMPLICATIONS: The Tax Payor Bill of Rights (TABOR) amended the Colorado Constitution in 1992 and prohibited any new or increased real estate transfer tax. Any increase of the primary residence exemption would become permanent and could not be repealed by Council at a later date. It is possible to draft an increased exemption for primary residences as a “temporary tax credit”; however, that would make the wording even more complicated and is not suggested. 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. 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. 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 annual RETT revenues that is not received and is exempted for primary residence Report re: Ordinance No. 19-05 Increasing Primary Residence Exemption Page 2 of 3 purchases. 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. 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. IMPACTS TO RETT AND CAPITAL IMPROVEMENTS: The RETT generates between $2.5 million to $3.1 million in revenues per year depending upon the real estate market. The RETT revenues sometimes received an increase when new “for-sale” projects become available to the market. Existing debt service is approximately $1 million per year, leaving a conservative budget of $1.5 million per year for capital improvements. 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. The consequence of increasing the primary residence exemption would be to require deferral or elimination of capital projects in the approximate amount of $200,000 to $442,000 (based on increasing exemption to $500,000 in consideration paid). An increase of the primary residence RETT exemption is expected to reduce the available Capital Improvements Budget by 14% to 29%. ADMINISTRATION: An increased exemption for primary residences would create a third category of exemption. RETT exemptions are already complicated; therefore, an additional increased exemption for primary residences would require the Town to provide additional instructions and would require submission of a closing statement that indicates the amount of the real estate transfer tax to be paid by the buyer. 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 price 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 Report re: Ordinance No. 19-05 Increasing Primary Residence Exemption Page 3 of 3 (16) to increase the $160,000 exemption amount. 2. Increase the $160,000 primary residence exemption but 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). 3. Increase the $160,000 primary residence exemption but limit eligibility for the additional exemption to persons who meet the definition of Eagle County Employee. 4. Increase the minimum timeframe to that the property must be used as a primary residence from the current minimum duration of one (1) year. 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 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 would 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 full-time resident housing. Option 3 proposes that the increase in RETT exemption over $160,000 for primary residences is limited to Eagle County Employees. Combining Options 2 and 3 would target the exemption to benefit eagle county employees and within the price range where the greatest need is identified. 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 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 ATTACHMENT: Ordinance 19-05 Ord. 19-05 July 9, 2019 FIRST READING Page 1 of 4 TOWN OF AVON, COLORADO ORDINANCE NO. 19-05 AMENDING CHAPTER 3.12 REAL PROPERTY TRANSFER TAX TO INCREASE THE PRIMARY RESIDENCE EXEMPTION 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, 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 with 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. Amendment of Section 3.12.060 – Exemptions. Section 3.12.060 of the Avon Municipal Code is hereby amended to enact a new Section 3.12.060(19) to read as follows: “3.12.060 (19) In the alternative to the exemption in sub-sections (17) and (18) of this Section Ord. 19-05 July 9, 2019 FIRST READING Page 2 of 4 3.12.060, a qualified purchaser may exempt [three hundred twenty thousand dollars ($320,000.00) – five hundred thousand dollars ($500,000)] of the consideration paid for any sale or conveyance of real property and completed improvements for occupancy as a primary residence (including both the first purchase in Avon and subsequent purchases), provided the following conditions are met: a. An application for exemption is filed with the Finance Department, which application is accompanied by: 1. An affidavit that the applicant meets the definition of Eagle County employee; that the real property is being purchased for use as a primary residence and not for investment or resale (provided that a co-signor shall not disqualify the exemption for the applicant where the co-signor is signing for the sole purpose of facilitating the financing qualifications of the applicant/primary resident and signs an affidavit that the co-signor is not a co-purchaser for investment or resale purposes); and 2. A promissory note in the amount of the tax otherwise owing, together with interest accruing at the rate hereinafter provided, providing that the tax and the promissory note including accrued interest shall be due and payable in full in the event the applicant shall fail to occupy and use the property as a primary residence within the timeframe established under the definition of primary residence found in Section 3.12.020 or shall cease to use the property as his or her primary residence within one (1) year after closing and granting to the Town a lien securing such indebtedness, which lien shall be subordinate to any first mortgage or deed of trust of record; and 3. The total consideration paid for the residence does not exceed [six hundred forty thousand dollars ($640,000.00) or nine hundred sixty thousand dollars ($960,000.00)]; and, b. The exemption applies only to the portion of the transfer tax actually paid by the buyer and will not reduce any portion of the transfer tax that the seller agrees to pay in the transaction.” Section 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 Ord. 19-05 July 9, 2019 FIRST READING Page 3 of 4 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, 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. [SIGNATURE PAGE FOLLOWS] Ord. 19-05 July 9, 2019 FIRST READING Page 4 of 4 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on July 9, 2019 and setting such public hearing for August 13, 2019 at the Council Chambers of the Avon Town Hall, located at 100 Mikela Way, Avon, Colorado. BY: ATTEST: ____________________________ ___________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ADOPTED ON SECOND AND FINAL READING on August 13, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Paul Wisor, Town Attorney TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Matt Pielsticker, Planning Director Date: July 9, 2019 Topic: INITIATE REZONING OF LOT 16, BLOCK 2, BENCHMARK AT BEAVER CREEK SUBDIVISION SUMMARY: Council is asked to initiate, by motion and vote, a Rezoning of Lot 16, Block 2, Benchmark at Beaver Creek Subdivision (“Lot 16”). In 1993, the Town purchased Lot 16 for access and parking on the north side of Nottingham Park. Although Lot 16 has always been used for park purposes, the Residential High Density zoning has remained. Staff believes the character of Lot 16 is park use and that consideration of a zoning amendment from Residential High Density is appropriate. According to the Avon Municipal Code Section 7.16.050, Rezonings may only be initiated by the Town Council or property owners. The zoning amendment process includes a public hearing and recommendation from the Planning and Zoning Commission and a public hearing and approval by ordinance by the Town Council. PROPOSED MOTION: “I move to initiate the Rezoning of Lot 16, Block 2, Benchmark at Beaver Creek Subdivision, from Residential High Density (RHD) to either the Park (P) zone district or Public Facilities (PF) zone district.” Page 1 of 2 TOWN MANAGER REPORT TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager RE: Ad Hoc Finance Committee DATE: July 2, 2019 SUMMARY: Resolution No. 19-15 is presented to Council which would establish an Ad Hoc Finance Committee (“Finance Committee”). The Finance Committee is presented to increase citizen engagement, input and understanding of the Town’s financial structure. The Finance Committee is a temporary advisory committee which would expire on January 31, 2022 unless extended by Council. PURPOSE: Section 1 of the Resolution establishes the Finance Committee as an advisory board only with the following purposes and duties: (a) To review, research and study the Town’s tax and fee structure and sources of revenue, including but not limited to: (i) comparisons to both incorporated and unincorporated peer communities, (ii) potential volatility associated with various revenue sources, and (iii) determining the percentage of revenues attributable to residents, second home owners, visitors and businesses; (b) To review, research and study the Town’s economy as it relates to the Town’s finances; (c) To prepare reports as appropriate to assist the Town Council and the general public to better understand the Town’s finances; and (d) To perform such other tasks related to the Town’s finances as the Town Council may request. As presented, the Finance Committee members would be appointed jointly by the Mayor and Mayor Pro-Tem, rather than the Council. Membership on the Finance Committee would include between five to nine Voting Members. The range of members is presented to allow flexibility depending upon citizen interest. The eligibility of members includes residents, property owners and business owners and employees of businesses based in Avon. Two Ex-Officio Non-Voting Members are presented to include two Council members on the Finance Committee. The inclusion of two Council members is proposed to serve as Council liaisons and promote understanding and communication between Council and the Finance Committee. FINANCIAL CONSIDERATIONS: The Finance Committee would be supported by Town Staff and is anticipated to meet once a month. Staff support includes posting of vacancies, posting meeting notices, record keeping, preparing information for meetings, assisting with reporting recommendations to Council and implementing public information on the Town’s finances. The Town Manager and Finance Director are anticipated to regularly attend Finance Committee meetings. Town Staff support is collectively estimated at 16-30 hours per month. IMPLEMENTATION: If Resolution 19-15 is approved by Council, then solicitations for interested persons would be posted for at least thirty days beginning in July. Appointments would occur in late August and an initial meeting would be set for after Labor Day week-end. OPTIONS: Council can amend or adjust any provision or structure of the Finance Committee. MOTIONS: “I move to approve Resolution No. 19-15 Approving An Ad Hoc Finance Committee.” Thanks, Eric ATTACHMENT: Resolution No. 19-15 Page 1 of 3 RESOLUTION NO. 19-15 APPROVING AN AD HOC FINANCE 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, Section 11.2 of the Town’s Home Rule Charter authorizes the Town Council to create advisory boards and does not prohibit Town Council members from serving on non-permanent advisory boards as ex-officio members; and WHEREAS, the Town Council finds that an Ad Hoc Finance Committee will provide valuable important review, research and advisory functions with regard to the Town’s financial structure and local economy; and WHEREAS, the Town Council finds that the establishment of an Ad Hoc Finance Committee will promote citizen understanding and involvement in the Town’s financial structure and will thereby promote the health, safety and general welfare of the Avon community. NOW THEREFORE, the Town Council, hereby RESOLVES to create the Ad Hoc Finance Committee, as follows: Section 1. Establishment, Purpose and Duties. There is hereby established the Ad Hoc Finance Committee (“Finance Committee”) of the Town. The purposes and duties of Finance Committee are as follows: (a) To review, research and study the Town’s tax and fee structure and sources of revenue, including but not limited to: (i) comparisons to both incorporated and unincorporated peer communities, (ii) potential volatility associated with various revenue sources, and (iii) determining the percentage of revenues attributable to residents, second home owners, visitors and businesses; (b) To review, research and study the Town’s economy as it relates to the Town’s finances; (c) To prepare reports as appropriate to assist the Town Council and the general public to better understand the Town’s finances; and, (d) To perform such other tasks related to the Town’s finances as the Town Council may request. Section 2. Membership. Finance Committee shall be composed of five (5) to nine (9) appointed by the Mayor and Mayor Pro Tem and who shall shall be eligible to cast votes as voting members on the Finance Committee (“Voting Members”) and two (2) ex-officio non-voting members of Council (“Ex-Officio Non-Voting Members”) appointed by Town Council. Section 3. Qualification of Voting Members. Residents of the Town, property owners in the Town, and owners and employees of a business located in the Town are eligible to be Page 2 of 3 appointed as Voting Members. Appointments shall be made jointly by the Mayor and Mayor-Pro Tem after posting notice of a vacancy for at least twelve (12) days. Section 4. Qualification of Ex-Officio Non-Voting Members. Council members shall be eligible for appointment to the two (2) Ex-Officio Non-Voting Members. Appointments shall be made by Town Council. The term of office for Ex-Officio Non-Voting Members shall coincide with each appointed Town Council member’s term or the expiration of the Finance Committee, whichever is shorter. Ex-Officio Non-Voting Members shall have the equal right to participate at Finance Committee meetings and equal right to receive all Finance Committee materials and notices of Finance Committee meetings, but shall not have any right to vote on recommendations, advisory matters, or other actions of Finance Committee. Section 5. Quorum. Three (3) Voting Members of Finance Committee 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. Section 6. Term. The term of office for a Voting Member shall be temporary and indefinite for the duration of the Finance Committee. A Voting Member of Finance Committee who ceases to possess the qualifications for office that the Voting Member possessed at the time of appointment may be permitted by the Town Council to serve until the end of the appointed term, provided that the Finance Committee member continues to reside in Eagle County. Any member of Finance Committee may be removed by Town Council pursuant to Section 8 - Removal from Office, below. Section 7. Vacancies. A vacancy on Finance Committee shall occur whenever a member of Finance Committee 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 Finance Committee 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 of a Voting Member occurs, the Mayor and Mayor Pro Tem shall jointly 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. Council shall appoint Council members to fill any vacancy in an Ex-Officio Non-Voting seat. Section 8. Removal from Office. Any member of Finance Committee may be removed for just cause at the pleasure of the Town Council by a majority vote of the entire Town 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, Town Council shall conduct a hearing and shall provide written notice to the Finance Committee member stating the grounds for removal at least three (3) days prior to the hearing. Section 9. Officers. Finance Committee shall select its own Chairperson and Vice- Chairperson. The Chair or, in the absence of the Chair, the Vice-Chair, shall be the presiding officer of its meeting. In the absence of both the Chair and the Vice-Chair from a meeting, the Voting Members present shall appoint a Voting Member to serve as Acting Chair at the meeting. Section 10. Compensation. All members of Finance Committee shall serve with compensation and benefits, if any, as may be established by the Town Council and shall be Page 3 of 3 reimbursed for all authorized personal expenses incurred while performing duties as a Finance Committee member. Section 11. Staff. The Town Manager shall designate Town staff to serve as the staff of Finance Committee and shall provide for the service of a recording secretary who shall act in the capacity of secretary for Finance Committee. Section 12. Rules and Regulations. Finance Committee shall operate in accordance with its own rules of procedure; provided, however, that Finance Committee shall submit its proposed rules or any amendment to the rules to the Town Council, which by motion shall approve the rules or amendment and direct their adoption by Finance Committee 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. The rules shall be filed with the Town Clerk and maintained in the records of the Town and shall be subject to public inspection. Finance Committee may provide for certain variances, exceptions and exemptions from the requirements of its rules and regulations. Section 13. Meetings. Finance Committee shall meet in accordance with the rules of procedure governing Finance Committee 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. Section 14. Appropriation Authority. Finance Committee shall not have authority to appropriate or spend Town funds. Finance Committee may provide recommendations to the Town Manager and/or Town Council with regard to the annual budget for financial studies. Section 15. Council Amendments. Town Council reserves the right to amend, increase, reduce or change any or all of the powers, duties and procedures of Finance Committee. Section 16. Expiration. The Finance Committee is a temporary, non-permanent advisory board and shall automatically expire on January 31, 2022 unless terminated earlier by Council resolution or unless the expiration date is extended by Council by resolution. ADOPTED July 9, 2019 by the AVON TOWN COUNCIL By:_______________________________ Attest:_________________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk Page 1 of 2 TOWN MANAGER REPORT TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager RE: Ad Hoc Health and Recreation Committee DATE: July 2, 2019 SUMMARY: Resolution No. 19-16 is presented to Council which would establish an Ad Hoc Health and Recreation Committee (“Recreation Committee”). The Recreation Committee is presented to increase citizen engagement, input and understanding of the Town’s health, recreation programming and recreation facilities. The Recreation Committee is a temporary advisory committee which would expire on January 31, 2023 unless extended by Council. PURPOSE: Section 1 of the Resolution establishes the Recreation Committee as an advisory board only with the following purposes and duties: (a) To review, research and study the Town’s health and recreation, including but not limited to: (i) “healthy community” issues, planning, policies and implementing strategies for improving overall community health, (ii) comparisons to both incorporated and unincorporated peer communities of recreation facilities and programs, and (iii) the design, programming and estimated cost of recreational facility improvements, including but not limited to remodeling and expansion of the Avon Recreation Center; (b) Conducting community outreach, studies and surveys to determine community preferences for recreation programming, recreation facilities and healthy community policies; and, (c) To provide recommendations to the Town Council concerning healthy community, recreation programming and recreation facilities. As presented, the Recreation Committee members would be appointed jointly by the Mayor and Mayor Pro-Tem, rather than the Council. Membership on the Recreation Committee would include between five to nine Voting Members. The range of members is presented to allow flexibility depending upon citizen interest. The eligibility of members includes residents, property owners and business owners and employees of businesses based in Avon. Two Ex-Officio Non-Voting Members are presented to include two Council members on the Recreation Committee. The inclusion of two Council members is proposed to serve as Council liaisons and promote understanding and communication between Council and the Recreation Committee. FINANCIAL CONSIDERATIONS: The Recreation Committee would be supported by Town Staff and is anticipated to meet once a month. Staff support includes posting of vacancies, posting meeting notices, record keeping, preparing information for meetings, assisting with reporting recommendations to Council concerning health, recreation programming and recreation facilities. The Town Manager and Recreation Director are anticipated to regularly attend Recreation Committee meetings. Town Staff support is collectively estimated at 16-30 hours per month. IMPLEMENTATION: If Resolution 19-16 is approved by Council, then solicitations for interested persons would be posted for at least thirty days in July. Appointments would occur in late August and an initial meeting would be set for after Labor Day week-end. OPTIONS: Council can amend or adjust any provision or structure of the Recreation Committee. MOTIONS: “I move to approve Resolution No. 19-16 Approving An Ad Hoc Health and Recreation Committee.” Thanks, Eric ATTACHMENT: Resolution No. 19-16 Page 1 of 3 RESOLUTION NO. 19-16 APPROVING AN AD HOC HEALTH AND RECREATION 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, Section 11.2 of the Charter authorizes the Town Council to create advisory boards; and WHEREAS, the Town Council finds that an Ad Hoc Health and Recreation Committee will provide valuable important review, research and advisory functions with regard to the health and recreation of the Avon community; and WHEREAS, the Town Council finds that the establishment of an Ad Hoc Health and Recreation Committee will promote citizen understanding and involvement in the Town health and recreation opportunities and will thereby promote the health, safety and general welfare of the Avon community. NOW THEREFORE, the Town Council, hereby RESOLVES to create the Ad Hoc Health and Recreation Committee, as follows: Section 1. Establishment, Purpose and Duties. There is hereby established the Ad Hoc Health and Recreation Committee (“Recreation Committee”) of the Town. The purposes and duties of Recreation Committee are as follows: (a) To review, research and study the Town of Avon’s health and recreation, including but not limited to: (i) “healthy community” issues, planning, policies and implementing strategies for improving overall community health, (ii) comparisons to both incorporated and unincorporated peer communities of recreation facilities and programs, and (iii) the design, programming and estimated cost of recreational facility improvements, including but not limited to remodeling and expansion of the Avon Recreation Center; (b) Conducting community outreach, studies and surveys to determine community preferences for recreation programming, recreation facilities and healthy community policies; (c) To provide recommendations to the Town Council concerning healthy community, recreation programming and recreation facilities; and, Section 2. Membership. Recreation Committee shall be composed of five (5) to nine (9) members appointed by the Mayor and Mayor Pro Tem who shall be eligible to cast votes as voting memebers of the Finance Committee (“Voting Members”) and two ex-officio non-voting members of Town Council (2) Ex-Officio Non-Voting Town Council members appointed by Town Council. Page 2 of 3 Section 3. Qualification of Voting Members. Residents of the Town, property owners in the Town, and owners and employees of a business located in the Town are eligible to be appointed as Voting Members. Appointments shall be made jointly by the Mayor and Mayor- Pro Tem after posting notice of a vacancy for at least twelve (12) days. Section 4. Qualification of Ex-Officio Non-Voting Members. Town Council members shall be eligible for appointment to the two (2) Ex-Officio Non-Voting Members. Appointments shall be made by Town Council. The term of office for Ex-Officio Non-Voting Members shall coincide with each appointed Town Council member’s term or the expiration of the Recreation Committee, whichever is shorter. Ex-Officio Non-Voting Members shall have the equal right to participate at Recreation Committee meetings and equal right to receive all Recreation Committee materials and notices of Recreation Committee meetings, but shall not have any right to vote on recommendations, advisory matters, or other actions of Recreation Committee. Section 5. Quorum. Three (3) Voting Members of Recreation Committee 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. Section 6. Term. The term of office for a Voting Member shall be temporary and indefinite for the duration of the Recreation Committee. A Voting Member of Recreation Committee who ceases to possess the qualifications for office that the Voting Member possessed at the time of appointment may be permitted by the Town Council to serve until the end of the appointed term, provided that the Recreation Committee member continues to reside in Eagle County. Any member of Recreation Committee may be removed by Town Council pursuant to Section 8 – Removal from Office, below. Section 7. Vacancies. A vacancy on Recreation Committee shall occur whenever a member of Recreation Committee is removed by the Town 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 Recreation Committee and is not permitted by Town Council to serve until the end of the existing term or is convicted of a felony. In the event a vacancy of a Voting Member occurs, the Mayor and Mayor Pro Tem shall jointly 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. Town Council shall appoint Town Council members to fill any vacancy in an Ex-Officio Non-Voting seat. Section 8. Removal from Office. Any member of Recreation Committee may be removed for just cause at the pleasure of the Town Council by a majority vote of the entire Town 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, Town Council shall conduct a hearing and shall provide written notice to the Recreation Committee member stating the grounds for removal at least three (3) days prior to the hearing. Section 9. Officers. Recreation Committee shall select its own Chairperson and Vice-Chairperson. The Chair or, in the absence of the Chair, the Vice-Chair, shall be the presiding officer of its meeting. In the absence of both the Chair and the Vice-Chair from a meeting, the Voting Members present shall appoint a Voting Member to serve as Acting Chair at the meeting. Page 3 of 3 Section 10. Compensation. All members of Recreation Committee shall serve with compensation and benefits, if any, as may be established by the Town Council and shall be reimbursed for all authorized personal expenses incurred while performing duties as a Recreation Committee member. Section 11. Staff. The Town Manager shall designate Town staff to serve as the staff of Recreation Committee and shall provide for the service of a recording secretary who shall act in the capacity of secretary for Recreation Committee. Section 12. Rules and Regulations. Recreation Committee shall operate in accordance with its own rules of procedure; provided, however, that Recreation Committee shall submit its proposed rules or any amendment to the rules to the Town Council, which by motion shall approve the rules or amendment and direct their adoption by Recreation Committee 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. The rules shall be filed with the Town Clerk and maintained in the records of the Town and shall be subject to public inspection. Recreation Committee may provide for certain variances, exceptions and exemptions from the requirements of its rules and regulations. Section 13. Meetings. Recreation Committee shall meet in accordance with the rules of procedure governing Recreation Committee 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. Section 14. Appropriation Authority. Recreation Committee shall not have authority to appropriate or spend Town funds. Recreation Committee may provide recommendations to the Recreation Director, Town Manager and/or Town Council with regard to the annual budget for financial studies. Section 15. Town Council Amendments. Town Council reserves the right to amend, increase, reduce or change any or all of the powers, duties and procedures of Recreation Committee. Section 16. Expiration. The Recreation Committee is a temporary, non-permanent advisory board and shall automatically expire on January 31, 2023 unless terminated earlier by Town Council resolution or unless the expiration date is extended by Town Council by resolution. ADOPTED July 9, 2019 by the AVON TOWN COUNCIL By:_______________________________ Attest:_________________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Justin Hildreth, Town Engineer Meeting Date: July 9, 2019 Topic: NOTICE OF AWARD, West BENCHMARK ROAD ON STREET PARKING AND WATER QUALITY VAULT PROJECT REQUESTED ACTION: Staff requests Council to authorize Staff to issue a Notice of Award for construction of the West Benchmark Road on Street Parking and Water Quality Vault Project if the lowest qualified bidder is within the construction budget of $581,000 as discussed at the April 30, 2019 Town Council meeting. BACKGROUND: The 2019 Capital Projects Fund has $440,000 budgeted to design and construct on-street parking spaces on West Benchmark Road in front of the Season’s building. At the April 30, 2019, Council meeting, Staff presented a revised construction budget of $581,000 for the project due to poor soils discovered at the site as well as the proposed addition of a water quality vault for storm water pollution treatment in the amount of $70,883. This project was envisioned as part of the Town Center West plan and Town Owned Properties Plan. Construction is scheduled for fall 2019. Project bids are due on July 11th. The next scheduled Town Council meeting is on August 13th. Issuing the Notice of Award after the August 13th meeting will make it difficult for the Contractor to start work on September 3rd and complete the project by November 15. Staff is requesting authorization to issue the Notice of Award if the project is within the revised budget. GARFIELD & HECHT, P.C. ATTORNEYS AT LAW Since 1975 www.garfieldhecht.com AVON OFFICE 0070 Benchmark Road Post Office Box 5450 Avon, Colorado 81620 Telephone: (970) 949-0707 Facsimile: (970) 949-1810 MEMORANDUM To: Honorable Mayor Smith Hymes and Town Council members From: Paul Wisor, Town Attorney Re: Avon Town Code of Ethics Date: July 9, 2019 I. Summary Pursuant to a discussion at the June 25, 2019 Town Council meeting, the following memorandum sets forth relevant portions of the Town of Avon (the “Town”) Charter, the Avon Town Code of Ethics (the “Ethics Code”), attached hereto as “Exhibit A,” and proposes various approaches and changes to the Ethics Code. This memorandum is meant to serve as a framework for discussion with respect to the Ethics Code, and no Town Council action is required. II. Background The Town adopted Ordinance 15-05 on July 28, 2015 amending the Ethics Code. Such amendments were adopted in response to concerns regarding conflicts of interests arising out of Town Council members’ potential financial interests in projects, development projects in particular, which required the approval of Town Council. The resulting amendments established some of the most stringent ethical regulations in Colorado. Over time, however, the amended Ethics Code has prompted some Town Council members to seek recusal from most development applications. Such recusals have rarely been the result of an actual conflict of interest. Rather, Town Council members have perceived their participation in a given matter may give rise to conflicts of interest in the future. This concern has led to matters being heard by as few as four Town Council members, the minimum number needed to take necessary action. In order to avoid the Ethics Code standing in the way of Town Council members fulfilling their roles and obligations under the Charter, it is clear modifications need to be made either to the interpretation of the Ethics Code or the Ethics Code language itself. III. Relevant Charter Provisions Section 5.5 of the Town Charter sets forth the basic organization and rules of Town Council. Section 5.5(b) provides that an affirmative vote of four Town Council members is necessary for the adoption of an ordinance, resolution, order for appropriation, approval of contract or approval of intergovernmental agreement. Section 5.5(b) goes on to provide every “Council member who is present must vote upon all voting matters unless excused by the Town Code of Ethics, the Charter, or rules and procedures for Council meetings adopted by 2 ordinance.” Put more directly, four votes are required to adopt an ordinance or resolution, and all Town Council members present must vote unless a relevant exception exists. IV. Relevant Ethics Code Provisions Although the full text of the Ethics Code is important and attached hereto, the provisions of the Ethics Code cited below specifically highlight the most relevant provisions applicable to those instances in which a Town Council member cannot participate in a matter due to a conflict of interest. a. Current Conflicts Section 2.30.060(3) of the Ethics Code provides no Town Council member shall perform an “official act which directly and substantially affects to its economic benefit a business or other undertaking in which such Council member has a substantial financial interest. A “substantial financial interest” is defined in Section 2.30.050 as 1) an ownership in a business; 2) a creditor interest in a business; 3) an ownership interest in real or personal property; 4) a loan or any other debtor interest; or 5) a directorship or officership in a business. In addition, Section 2.30.060(4) prohibits any Town Council member from performing “an official act which directly and substantially affects a business or other undertaking by whom the Council member is employed, or by whom such Council member is engaged as counsel, consultant, representative or agent.” b. Future Conflicts In addition to addressing direct and substantial conflicts existing at the time Town Council votes on a particular matter, the Ethics Code also places a restriction on future activity of Town Council members by limiting future employment opportunities or sources of compensation. Section 2.30.060(11) prohibits any Town Council member from seeking or obtaining “employment or compensation concerning matters upon which he or she took an Official Act during his or her term of office for six (6) months following expiration or termination of office, if such Official Act occurred less than four years prior to such employment or compensation.” Notwithstanding the foregoing restrictions on future employment and compensation, Section 2.30.060(11) provides any conflict giving rise to the prohibition on future employment or compensation opportunities “may be waived by a majority of the disinterested Town Council members.” c. Appearance of Impropriety The Ethics Code also contains a catchall provision common in many municipal codes throughout Colorado in a variety of iterations that seeks to broadly cover all manner of unethical behavior. Section 2.30.060(8) provides a Town Council member shall not take action “under circumstances which give rise to appearance of impropriety” on the part of the 3 Town Council member. d. Adjudication In the event a Town Council member believes they have, or another Town Council member has, a conflict of interest with respect to a given matter, Section 2.30.080 of the Ethics Code sets forth a process Town Council must follow. First, the Town Council member must disclose their conflict or raise the conflict of fellow Town Council member. If such a conflict is brought to Town Council’s attention, the Town Council “shall determine whether a conflict of interest exists.” Note the potentially conflicted Town Council member does not partake in the determination of whether the conflict exists, and the Town Council’s decision is effectively the final word on the matter. V. Approaches to Current Language Given the framework set forth above, it is likely a Town Council member can participate in nearly every matter that comes before Town Council without a conflict of interest arising. In fact, the plain language of the Ethics Code makes it unlikely an actual conflict will ever exist. In the event a potential future conflict were to become an issue, the Ethics Code clearly vests the Town Council with the ability relieve a Town Council member of the burden of such conflict. a. Actual Conflict Unlikely Although the Town Council members’ experiences and involvement in the Avon community vary greatly, it is unlikely a Town Council member would be required to abstain from voting more than once or twice during their tenure on Town Council. Section 2.30.060(3) requires a Town Council member to have an ownership interest, or similar interest, in a business that will realize a substantial economic benefit from a Town Council action. While this is an important prohibition, it is one that likely does not impact current Town Council members regularly and should be considered by prospective Town Council members before running for Town Council. Similarly, no Town Council member may take part in a hearing or vote if the outcome will “substantially” affect the business of their employer or client. While an amorphous term, in many contexts “substantially” denotes fifty percent (50%) or more. Again, it is unlikely a Town Council member will be frequently engaging in decisions that could impact their employer’s bottom line by such a significant amount. b. Waiver of Future Conflict While it is rare a Town Council member will find themselves in a situation where a matter before Town Council creates an actual and immediate conflict of interest, Town Council members rightfully worry about the trickledown effect a particular decision may have on their individual or employer’s economic wellbeing in the future. However, Section 2.30.060(11) of the Code addresses this concern by providing Town Council may waive any conflict that may arise as a result of any action taken by a Town Council member. The specific 4 time and manner in which this waiver is provided is unclear. That said, there is nothing in the Ethics Code specifically precluding a Town Council member from seeking a waiver at the time action is taken if the Town Council member foresees a potential conflict. c. Council Acts As Final Arbiter The statutory framework articulated above provides a shield for Town Council members from accusations that a particular Town Council member is acting in their own self- interest rather than in the interest of the Town. Prior to hearing a particular matter, Section 2.30.080 requires a Town Council member to disclose a conflict of interest. Under the Ethics Code, it is then the obligation of the remaining Town Council members to determine if a conflict exists. If no conflict exists, the Town Council member with the perceived conflict is required to vote under Section 5.5 of the Town Charter. As such, an individual Town Council member can never be faulted for participating in a given matter. That decision is the prerogative of fellow Town Council members and a requirement of the Charter. VI. Alternatives In the event Town Council determines the current Ethics Code is unworkable, there are several alternative approaches that can be utilized. Town Council could 1) amend Section 2.30.060(11), 2) eliminate Section 2.30.060(11), 3) recodify or delete Section 2.30.060(8); 4) make disqualification a unilateral decision of a Town Council member or 5) revise the Ethics Code to allow a Town Council member to participate in a vote so long as the conflict is disclosed. a. Amend Section 2.30.060(11) – Timing of Waiver of Conflict The Ethics Code could be amended to provide more guidance with respect to waiver of future conflicts. Currently, the Ethics Code allows the Town Council to waive a conflict that may arise as a result of an action taken by a Town Council member. While this should ameliorate concerns regarding future employment or compensation, this provision is unclear as to when such a waiver can be requested or granted. While the future is obviously difficult to predict, some conflicts are foreseeable, and Town Council members may be more amenable to participating in a matter if they knew they can seek a waiver for a future conflict at the time the matter is heard. Town Council could amend Ethics Code to clarify Town Council members can seek a waiver from the rest of Town Council for future conflicts either 1) at the time a matter is heard or 2) in the future when the conflict comes to fruition by amending Section 2.30.060(11), in relevant part, as follows: “provided that this provision may be waived by a majority of the disinterested Town Council members EITHER AT THE TIME A POTENTIAL CONFLICT IS BROUGHT TO TOWN COUNCIL’S ATTENTION OR AT THE REQUEST OF AN INDIVIDUAL TOWN COUNCIL MEMBER WHEN AN ACTUAL CONFLICT ARISES.” b. Delete Section 2.30.060(11) – Future Conflicts As noted above, it appears many Town Council members are quick to seek recusal on 5 certain matters not because an actual conflict of interest exists, but because they are concerned they may someday be accused of being the beneficiary of a particular vote in ways the Town Council member never anticipated. To avoid this issue, Section 2.30.060(11), which addresses future conflicts, could be eliminated in its entirety. Individual Town Council members and Town Council as a whole would no longer be forced to address future conflicts that are merely theoretical. The Ethics Code would still remain effective as it would continue to prohibit Town Council members from taking action where a direct conflict exists. c. Recodify or Delete Section 2.30.060(8) – Appearance of Impropriety In addition to concerns about potential future conflicts arising under Section 2.30.060(11), some Town Council members may be alarmed future actions violate to prohibition codified in Section 2.30.060(8) against a Town Council member’s action giving rise to the appearance of impropriety. As previously mentioned, this concept is ubiquitous in municipal codes across Colorado. However, such provisions are often found in policy statements as general expressions of the purpose of the ethical code and not, as with the Town, a specific basis for an ethical violation. The general concept of an appearance of impropriety is difficult to define, its vagueness adds little to an otherwise fairly specific Ethics Code, and the concept can be weaponized where no actual conflict exists. Given the Town Council’s role in determining whether a conflict exists, the provision seems to lack a specific purpose and could either be deleted in its entirety or placed in a preamble to the Ethics Code. d. Amend Section 2.30.080 – Unilateral Disqualification Town Council members may have more comfort with the Ethics Code if individual Town Council members have agency over their own potential conflicts. Under the current framework, a Town Council member who may have a conflict of interest does not have the ability to determine if such a conflict exists. This approach provides for impartiality, but the Town Council member subject to the potential conflict of interest may have a different view as to whether a conflict is direct, substantial, likely to occur in the future or how it impacts their decision making. Town Council members might find the conflict of interest process less punitive and arbitrary if they are able to recuse themselves. The ability to recuse oneself is a common approach. The Town Council could amend Section 2.30.080 to include a provision providing a Town Council member must “publicly disclose the nature and extent of such a conflict of interest and disqualify himself or herself from participating in the deliberation as well as in the voting.” However this approach may undermine Section 5.5. of the Town Charter as some Town Council members may use this mechanism for recusal to avoid the difficult or controversial votes they were elected to take when present at a meeting. e. Disclose and Vote Though mostly an anachronism, some code provisions in other jurisdictions take a liberal approach to conflicts of interest and provide whenever the performance of a Town Council member’s official duties shall require any official to deliberate and vote “on any matter involving his or her financial or personal interest, he or she shall publicly disclose the nature and extent of such interest prior to hearing the matter and casting his or her vote.” 6 Town Council could essential overhaul the Ethics Code and adopt this approach. In fact, a qualified version of this approach can already be found in Section 2.30.100, which allows voting where a conflict exists if 1) the vote is needed for a quorum or an action to occur; 2) the conflicted member discloses the conflict with the Secretary of State; and 3) a majority of Town Council finds participation with not be contrary to the public interest. While a “disclose and vote” approach may seem extreme, it is already an option Town Council may exercise if it so desires. VII. Conclusion The Ethics Code clearly serves an important purpose, and must be preserved in one form or another to maintain the public’s trust in Town Council as well as in the Town itself. There is a strong argument to be made that no changes need to be made to the Ethics Code so long as Town Council members, as sole and final arbiters of the Ethics Code, keep the plain meaning of the Ethics Code in mind. However, certain changes can easily be made to the Ethics Code to provide Town Council members with more clarity and certainty when evaluating potential conflicts of interest. Of course, staff is happy to assist in this endeavor. Exhibit A EXHIBIT  A:  AMENDMENTS  TO  AVON  TOWN  CODE  OF  ETHICS     Page 2 of 7 July 28, 2015 - FINAL   abovementioned interests owned, held or controlled by such oOfficer's spouse or dependent children. 2.30.060 Conflict of interest. A Town Officer shall not: (1) Disclose or use confidential information acquired in the course of such Officer's duties (a) in order to further a business or other undertaking in which such Officer has a substantial financial interest or (b) for any use which would be detrimental to the Town; (2) Engage in a substantial financial transaction for his or her private business purposes with a person whom such oOfficer inspects or supervises in the course of his or her official duties; (3) Perform an official act which directly and substantially affects to its economic benefit a business or other undertaking in which such Officer has a substantial financial interest; (4) Perform an official act which directly and substantially affects a business or other undertaking by whom the oOfficer is employed, or by whom such Officer is engaged as counsel, consultant, representative or agent; (5) Acquire or hold an interest in any business or undertaking which such Officer has reason to believe may be directly and substantially affected to its economic benefit by official action to be taken by the agency over which he or she has substantive authority; (6) Perform an official act directly and substantially affecting to its economic detriment any business or other undertaking when such Officer has a substantial financial interest in a competing business or undertaking; (7) Solicit or accept a present or future gift, favor, loan, service or thing of value from a person under circumstances which would lead a reasonably prudent person to believe that such gift, favor, service or thing of value was made or given primarily for the purpose of influencing or attempting to influence such oOfficer in connection with an official act, or as a reward for official action he or she has previously taken. The provisions of this Subsection shall not apply to those circumstances described in Subsection 2.30.070(3);. (8) Perform any official act under circumstances which give rise to appearance of impropriety on the part of the Officer; (9) Make or accept any ex parte communication or contact concerning a matter which is to be determined after a public hearing without making the contents of such communication or contact a part of the record of such public hearing; (10) Appear on behalf of any private person, business or entity, other than himself or herself, his or her spouse, or minor children, before the Town Council, any Town Commission or the Municipal Court.; or, (11) For members of Town Council, seek or obtain employment or compensation concerning matters upon which he or she took an Official Act during his or her term of office for six (6) months following expiration or termination of office, if such Official Act occurred less than four years prior to such employment or compensation, provided that this provision may be waived by a majority of the disinterested Town Council members. 2.30.070 Exemptions. The provisions of Section 2.30.060 shall not prohibit an Officer from: (1) Accepting or receiving a benefit as an indirect consequence of the performance of an official act; EXHIBIT  A:  AMENDMENTS  TO  AVON  TOWN  CODE  OF  ETHICS     Page 3 of 7 July 28, 2015 - FINAL   (2) Taking official action when such Officer is similarly situated to other Town residents, such as adopting general land use regulations, owning property within a special or local improvement district, voting for taxes or bonds, adopting ordinances of general applicability or otherwise acting upon matters involving the common public interest, except that this exemption shall not apply to interests of Officers of the Avon Urban Renewal Authority in any project or in any property included or planned to be included in any project and the provisions of C.R.S. §31-25- 104(3) shall control; (3) Soliciting or accepting gifts or loans which are: a. Campaign contributions reported as required by law; b. An occasional nonpecuniary gift, insignificant in value; c. A nonpecuniary award publicly presented by a nonprofit organization in recognition of public service; d. Payment of or reimbursement for actual and necessary expenditures for travel and subsistence or attendance at a convention or other meeting at which such Officer is scheduled to participate; e. Reimbursement for or acceptance of an opportunity to participate in a social function or meeting which is not extraordinary when viewed in light of the position held by such Officer; f. Items of perishable or nonpermanent value, including, but not limited to, meals, lodging, travel expenses or tickets to sporting, recreational, educational, or cultural events; g. Payment for speeches, debates, or other public events, reported as honorariums to the Town Manager; h. A loan at a rate of interest which is not substantially lower than the commercial rate then currently prevalent for similar loans within the Town. (4) Receiving such compensation for his or her services to the Town as may be fixed by ordinance, pay plan, budget or other similar official action. 2.30.080 Disclosure of conflict of interest in Town Council action. Any member of the Town Council who believes he or she has a conflict of interest as defined in Section 2.30.060 on any matter proposed or pending before the Town Council shall disclose such potential interest to the Town Council. Any member of the Council who believes that another member of the Council has a conflict of interest shall bring the matter to the attention of the Council prior to Council consideration of the issue involving the alleged conflict. The Council shall determine whether a conflict of interest exists. The Council member who has an alleged conflict of interest shall not vote on the determination of whether a conflict of interest exists; however, such Council member may participate in the discussion and may remain in the room with the consent of the majority of the remaining Council members. If the Council determines that an actual conflict of interest exists, the Council Member shall not attempt to influence other members of the Town Council in connection with such matter, and, except as provided in Section 2.30.100, the Council Member shall not vote upon such matter. The Council Member shall leave the room during Council's discussion and action on the subject, and shall return only when the council has taken up the next agenda item. EXHIBIT  A:  AMENDMENTS  TO  AVON  TOWN  CODE  OF  ETHICS     Page 4 of 7 July 28, 2015 - FINAL   2.30.090 Disclosure of conflict of interest in Planning Commission action. Any member of the Planning Commission who believes he or she has a conflict of interest as defined in Section 2.30.060 on any matter proposed or pending before the Planning Commission shall disclose such potential interest to the Planning Commission. Any member of the Planning Commission who believes that another member of the Planning Commission has a conflict of interest shall bring the matter to the attention of the Planning Commission prior to Planning Commission consideration of the issue involving the alleged conflict. The Planning Commission shall determine whether a conflict of interest exists. The Planning Commission member who has an alleged conflict of interest shall not vote on the determination of whether a conflict of interest exists; however, such Planning Commission member may participate in the discussion and may remain in the room with the consent of the majority of the remaining Planning Commission members. If the Planning Commission determines that an actual conflict of interest exists, the member of the Planning Commission shall not attempt to influence other members of the Planning Commission in connection with such matter, and, except as provided in Section 2.30.100, the member of the Planning Commission shall not vote upon such matter. The member of the Planning Commission shall leave the room during the Planning Commission's discussion and action on the subject, and shall return only when the Planning Commission has taken up the next agenda item. 2.30.100 When Council Member or member of the Planning Commission with conflict of interest may vote. Notwithstanding the provisions of Sections 2.30.080 and 2.30.090, a Council member or member of the Planning Commission may vote upon a matter as to which he or she has a conflict of interest if: (1) His or her participation is necessary to obtain a quorum or to otherwise enable the Council or Planning Commission to act, and (2) he or she complies with the disclosure provisions of Section 2.30.110, and (3) a majority of the Council members or Planning Commission members present at a meeting who do not have a conflict of interest find that the participation of such Council member or Planning Commission member will not be contrary to the public interest and vote to permit such Council member or Planning Commission member to vote despite the conflict of interest. 2.30.110 Voluntary Disclosure to Secretary of State. A Town oOfficer may, prior to acting in a manner which may impinge on his or her fiduciary duty and the public trust, disclose the nature of his or her private interest to the Colorado Secretary of State. Such Town oOfficer shall make the disclosure in writing to the Colorado Secretary of State, listing the amount of his or her financial interest, if any, the purpose and duration of his or her services rendered, if any, and the compensation received for the services or such other information as is necessary to describe his or her interest. If he or she then performs the official act involved, he or she shall state for the record the fact and summary nature of the interest disclosed at the time of performing the act. Such disclosure shall constitute an affirmative defense to any civil or criminal action or any other sanction under this Town EXHIBIT  A:  AMENDMENTS  TO  AVON  TOWN  CODE  OF  ETHICS     Page 5 of 7 July 28, 2015 - FINAL   Code of Ethics or any other local, state or other code of ethics or standards of conduct. 2.30.120 Public contracts. (a) The Town shall not enter into any contract with a Town Officer (including spouse or minor children of the Town Officer) to provide any compensation from the Town for the provision of goods or services and shall not approve any vendor permit or privilege to conduct commercial business on Town property during such Officer’s term, appointment or employment with the Town; provided that this restriction shall not apply to compensation provided to any Town Officer for performance of official duties for the Town. This section shall not operate to restrict the Town from entering into contracts or approving vendor permits and privileges to an organization which employees a Town Officer if such Town Officer is not an owner or controlling officer of such organization that receives such compensation, permits or privileges and such Town Officer declares a conflict of interest in accordance with Section 2.30.060(3) and does not participate in any Town decision related to such public contract. For the purposes of this section, ownership in an organization shall include any ownership interest that is greater than 1%. (b) The provisions of Subsection (a) of this Section shall not apply to: (1) Investments or deposits in financial institutions which are in the business of loaning or receiving money; or, (2) with respect to which the Town Officer has voted therein in accordance with Section 2.30.100. (c) It shall be a violation of this Code of Ethics for any Town Officer to enter into a contract with the Town or receive compensation or receive vendor permits or privileges from the Town in violation of this section. (d) Any contract approved by the Town or vendor permit or privilege granted by the Town in violation of this section shall be unenforceable against the Town. (a) Except as provided in Subsection (b) of this Section, no Officer shall have an interest in any contract made by the Town. (b) The provisions of Subsection (a) of this Section shall not apply to: (1) Contracts awarded to the lowest responsible bidder based on competitive bidding procedures; (2) Merchandise sold to the highest bidder at public auctions; (3) Investments or deposits in financial institutions which are in the business of loaning or receiving moneys; (4) A contract between the Town and an officer if, because of geographic restrictions, the Town could not otherwise reasonably afford itself of the subject of contract. It shall be presumed that the Town could not otherwise reasonably afford itself of the subject of a contract if the additional cost to the Town is greater than ten percent (10%) of a contract with an officer or if the contract is for services that must be performed within a limited time period and no other contractor can provide those services within that time period; (5) A contract with respect to which the officer has disclosed his or her personal or financial interest to the Town Council and has not voted thereon, or with respect to which the officer has voted therein in accordance with Section 2.30.100. EXHIBIT  A:  AMENDMENTS  TO  AVON  TOWN  CODE  OF  ETHICS     Page 6 of 7 July 28, 2015 - FINAL   (c) No Town officer shall be a purchaser or vendor in connection with any sale or purchase made by him or her in his or her official capacity. The provisions of this Subsection shall not apply to those contracts described in Subsection (b) of this Section. 2.30.130 Limitation on subsequent employment. A former Town oOfficer may not, within six (6) months following the termination of his or her office with the Town, contract with or become employed by an employer who contracts with the Town involving matters with which such oOfficer was directly involved during such Officer’s the term of office or with the Town. 2.30.140 Enforcement. (a) The Town Council shall have the primary responsibility for the enforcement of this Chapter. It shall have the power to investigate any complaint, to initiate any suit and to prosecute any criminal or civil action on behalf of the Town wherein it believes such action is appropriate. (b) The Town Council may direct the Town Attorney to investigate or prosecute any apparent violation of this Chapter or the Council may employ or appoint any qualified attorney to investigate or prosecute any violation or series of violations by one (1) or more persons of this Chapter. In the event the alleged conflict of interest involves a Council member (or multiple Council members), the Council member(s) who has an alleged conflict of interest shall not vote upon whether to investigate or prosecute the alleged conflict of interest. (c) Any person who believes that a violation of any portion of this Chapter has occurred may file a complaint with the Town Council, which shall promptly investigate such complaint and take such action thereon as the Council shall deem to be appropriate. (d) The district attorney of the district where the trust is violated may bring appropriate judicial proceedings on behalf of the people. Any moneys collected in such actions shall be paid to the general fund of the Avon Town government. Judicial proceedings pursuant to this section shall be in addition to any criminal action which may be brought against such Town oOfficer. 2.30.150 Penalties and remedies. (a) It is unlawful for any person to violate any provision of, or to fail to comply with any of the requirements of this Chapter. Any person who violates any provisions of this Chapter shall be punished in accordance with the provisions of Section 1.08.010 of this Code. Additionally, upon conviction such person shall be liable to the Town for such damages as may have been suffered or incurred as a result of such violation. (b) Upon conviction for any violation of this Chapter such oOfficer shall immediately forfeit his or her office or position. Nothing in this Chapter shall be construed to prohibit such public oOfficer from being reelected, reappointed or otherwise rehired to any position forfeited under the provisions of this Chapter. (c) Any court of competent jurisdiction called upon to enforce the provisions of this Chapter may, with the consent of the Town Council, exempt from the provisions of this Chapter any conduct of a Town Officer upon the finding that the enforcement of this Chapter with respect to such Officer's conduct would not be in the public interest. 2.30.160 Distribution of code of ethics. The Town Clerk shall cause a copy of this code of ethicsthe Avon Town Code of Ethics EXHIBIT  A:  AMENDMENTS  TO  AVON  TOWN  CODE  OF  ETHICS     Page 7 of 7 July 28, 2015 - FINAL   to be distributed to every Officer of the Town within thirty (30) days after enactment of the ordinance adopting this Chapter. Each Town Officer elected, appointed, or engaged thereafter shall be furnished a copy before entering upon the duties of his or her office. 2.30.170 Gift Reporting. (a) In accordance with §7, Article XXIX of the Colorado Constitution, the requirements of Article XXIX of the Colorado Constitution shall not apply to the Town of Avon. It is the intention and purpose that this section 2.30.170, Chapter 2.30 Avon Town Code of Ethics of the Avon Municipal Code, and any other applicable Avon Home Rule Charter provision, ordinance or resolution adopted by the Town of Avon shall completely address all matters set forth in Article XXIX of the Colorado Constitution. (b) Any Town Officer who receives any present, or offer of future, individual gift, favor, loan, service or thing of value in excess of $50.00 and such gift is offered due to such person’s status as a Town Officer then such Officer shall report such gift and the estimated value to the Town Clerk. The Town Clerk shall promptly disclose gifts received, or offer of future gifts, to the Town Council.The failure of a Town Officer to report a gift to the Town Clerk shall constitute a violation of the Avon Town Code of Ethics. (c) Council shall determine if gifts received or offered in the future constitute a conflict of interest in accordance with the Avon Town Code of Ethics. Council members who are the recipient or intended recipient of a gift shall not vote on whether such gift constitutes a conflict of interest unless such gift is offered to Council as a whole or offered to Town generally. (d) Gifts which are given by an individual who is a relative or personal friend of the recipient on special occasions shall not be deemed a conflict of interest.Gifts which are given without the purpose or intent to influence a Town Officer in connection with an official act or as a reward for an official act performed and gifts which do not create the appearance of impropriety shall not be a conflict of interest. (e) Gifts which are received which are determined by Council to be a conflict of interest shall be returned. The receipt of a gift or the failure to return a gift or reimburse the equivalent value when Council determines such gift is a conflict of interest shall constitute a violation of the Avon Town Code of Ethics. 1 GARFIELD & HECHT, P.C. ATTORNEYS AT LAW Since 1975 www.garfieldhecht.com MEMORANDUM To: Honorable Mayor Smith Hymes and Town Council members From: Paul Wisor, Town Attorney Re: Short-Term Rental Ballot Question Date: July 9, 2019 Summary: The following memorandum proposes draft ballot language to be submitted to the voters at the November 5, 2019 election for the adoption of a short-term rental tax as well as sets forth areas where direction from Council is needed. Background: The Town of Avon (the “Town”) has previously adopted Ordinances 09-12 and 17-18, which make short-term rentals legal within most of the valley area through an overlay zone district. This overlay zone district only applies to properties zoned with a standard zone district and does not apply to any property zoned Planned Unit Development (“PUD”). However, the following areas zoned PUD permit short term rentals:  Brookside Park  Canyon Run  Chapel Square  Chateau St. Claire (The Ascent)  Falcon Pointe  Lakeside Terrace  Lot C (Sheraton Mountain Vista)  Riverfront Subdivision (Westin)  Stonebridge Cluster Homes Where short-term rentals are permitted, property owners must obtain a sales tax license through the Town and submit all applicable taxes to the Town. While owners of short-term rentals are required to collect taxes on short-term rentals, no specific tax is imposed on the short-term rental transaction itself. The proposed ballot language below, if submitted to and approved by the voters, would impose a specific tax on short-term rentals. In 2017, the Town of Crested Butte became the first Colorado municipality to implement a short-term rental tax.1 The Crested Butte tax is imposed at a rate of 5%, which collects up to 1 Some Colorado municipalities, such as the City of Boulder, impose a tax on short-term rentals and labeled it a “short-term rental tax.” In reality, however, these municipalities are simply applying their accommodation taxes on short-term rentals. AVON OFFICE 0070 Benchmark Road Post Office Box 5450 Avon, Colorado 81620 Telephone: (970) 949-0707 Facsimile: (970) 949-1810 2 $325,000 per year. Requested Council Action: Provide direction to staff as to whether a ballot question imposing a short-term rental tax should be placed on the November ballot and addressing details related thereto. Proposed Ballot Language: SHALL TOWN OF AVON TAXES BE INCREASED NOT MORE THAN $[_______________] IN 2020 AND BY WHATEVER AMOUNTS ARE GENERATED ANNUALLY THEREAFTER BY AN EXCISE TAX OF NOT MORE THAN [__]% ON THE AMOUNT CHARGED TO ANY PERSON FOR A VACATION SHORT-TERM RENTAL [FOR THE PURPOSE OF FUNDING COMMUNITY HOUSING PROGRAMS], WITH THE RATE OF TAX BEING ALLOWED TO BE INCREASED OR DECREASED WITHOUT FURTHER VOTER APPROVAL SO LONG AS THE RATE OF TAXATION DOES NOT EXCEED [__]% AND SHALL THE TOWN BE AUTHORIZED TO COLLECT, KEEP AND SPEND THE REVENUES FROM SUCH TAX AND ANY INVESTMENT INCOME THEREFROM NOTHWITHSTANDING THE LIMITS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION? Revenue Considerations: Short-term rentals account for 17% of all accommodation taxes collected by the Town for an annual total of $232,503, which equates to gross short-term rentals of $5,812,575. As such, staff estimates a 1.00% tax would generate $58,125.75 annually. Based off of these estimates, Council will need to determine the appropriate rate. Funding Purpose: As currently written, the proposed ballot language contemplates revenue generated from the short-term rental tax will be dedicated to community housing efforts. Council can choose to remove this reference, make it broader or even more specific if it so desires. Staff believes the current iteration provides enough guidance to voters as to how the revenue will be used while providing Council with enough discretion to use the funds in a variety of ways to promote community housing, including, but not limited to, construction, land acquisition, down payment assistance, deed restriction and administration. Ordinance or Resolution: Council may submit the proposed ballot question to voters via a resolution or an ordinance. Placing the proposed ballot language on the ballot by resolution would be a fairly simple task as such resolution would only include the ballot language without additional detail. Were the voters to approve the ballot language in November, Council would then need to adopt an ordinance between November and December in order to implement the details of the ballot question so the tax could be imposed beginning January 1, 2020. On the other hand, Council could direct staff to draft an ordinance, which would place the question on the ballot as well as include exemptions, payment mechamisms and other administrative details, thus giving voters a full picture of the program to be implemented. The provisions of the ordinance placing the ballot question on the ballot in November would be effective immediately, while the rest of the ordinance would take effect January 1, 2020, contingent on voter approval. Timing: The following dates are important to keep in mind: 3 August 13: Last day for First Reading August 27: Last day for Second Reading September 6: Last day to certify ballot content September 20: Last day to file pro/con comments to be included in ballot issue notice November 5: Election Day Direction Needed: To the extent Council supports placing the ballot question on the November ballot, Council must consider and give direction on the following issues:  What percentage sales tax on short-term rentals should be included in the ballot question?  Should funds derived from the short-term rental tax be dedicated to community housing? If so, should it be directed at specific programs or can such revenues be generally available for community housing efforts?  Does Council want to adopt a resolution or an ordinance? Page 1 of 2 TOWN MANAGER REPORT TO: Honorable Mayor Smith Hymes and Town Council FROM: Eric Heil, Town Manager RE: Letter to Senator Donovan Requesting Support for Funding Colorado Water Plan DATE: July 1, 2019 SUMMARY: The Town of Avon received a request from Erin Riccio from Conservation Colorado for western slope officials to request state lawmakers to support sustainable funding for the Colorado Water Plan. The Board of Commissioners of Eagle County approved a letter to Sen. Donovan on June 24, 2019. The Colorado Water Plan was adopted in November, 2015 after ten years of work by statewide Basin Roundtable groups. The Colorado Water Plan, urges water planning by stating, “Within the next few decades, even assuming aggressive conservation and the completion of dozens of water projects currently being considered, the state could face a shortfall that exceeds 500,000 acre feet annually.” The objectives of the Colorado Water Plan include: 1. Eliminate the projected Supply-Demand Gap by 2030; 2. Achieve 400,000 acre-feet of new water conservation by 2050; 3. Promote incorporation of water-saving actions into land-use planning for 75% of the State’s population by 2025; 4. Maintain agricultural economic productivity with growing state, national and global needs; 5. Achieve 400,000 acre-feet of new water storage by 2050; 6. Establish stream management plans and watershed protection plans for 80% of prioritized rivers and critical watersheds by 2030; 7. Investigate options to raise additional revenue in the amount of $100 million annually. The Executive Summary of the Colorado Water Plan defines the funding goals as: Colorado’s Water Plan sets an objective to sustainably fund its implementation. In order to support this objective, the State will investigate options to raise additional revenue in the amount of $100 million annually ($3 billion by 2050) starting in 2020. Such funds could establish a repayment guarantee fund and green bond program focused on funding environmental and recreational projects. In addition, such funds could further support conservation, agricultural viability, alternative transfer methods, education and outreach, and other plan implementation priorities. Colorado faces challenging fiscal conditions, not only for water infrastructure, but most other parts of the State budget. In order to address the water infrastructure fiscal need, the CWCB will explore creation of a repayment guarantee fund and green bond program with an initial investment of $50 million from the Severance Tax Perpetual Fund. A repayment guarantee fund could assist water providers in securing financing for regional multi-partner and multi-purpose projects by backing bonds so that all the partners can achieve financing. Issuance of green bonds could support large-scale environmental and recreational projects. These funds could be operated in a conjunctive manner. As water Page 2 of 2 provider bonds were paid down, the guarantee fund could be reduced and could be used to pay green bonds. By doing so, an initial $50 million investment could leverage half a billion dollars of regional projects. Under a well-planned, phased approach, an additional $100 million per year might address all of the State-related funding needs described in Colorado’s Water Plan, as further detailed in Section 9.2. COLORADO WATER PLAN LINK: https://www.colorado.gov/pacific/cowaterplan FINANCIAL CONSIDERATIONS: There are no direct financial implications to the Town of Avon. Funding and implementation of the Colorado Water Plan is likely to benefit the Avon community, as well as other western slope communities, over the long term by promoting sustainable water supplies and preserving minimum stream flows. PROPOSED MOTION: “I move to approve sending a letter to Senator Donovan requesting her support for sustainable funding of the Colorado Water Plan.” ATTACHMENT A: Draft Letter to Senator Donovan ATTACHMENT B: E-Mail request from Erin Riccio ATTACHMENT C: Letter from BOCC Eagle County [Avon Letterhead] Senator Kerry Donovan 200 E. Colfax, RM 346 Denver, CO 80203 July 10, 2019 RE: SUPPORT FOR FUNDING OF THE COLORADO WATER PLAN Senator Donovan, Water is a vital resource for Colorado’s economy, culture, lifestyle and wildlife. Population growth, visitor growth and climate change are projected to result in severe state-wide water shortages within thirty years unless decisive and effective leadership to support statewide water planning occurs now. Our water supply is fundamental to meeting the state’s current and future needs, including clean drinking water, agriculture, opportunities for outdoor recreation, and sustaining the natural environment. Water is essential to maintaining the economic and cultural values that define Colorado. Water is too precious to take for granted in Colorado. The Colorado Water Plan provides that the State will investigate options to raise additional revenue in the amount of $100 million annually starting in 2020. For these reasons, the Avon Town Council urges you to support sustainable funding for the Colorado Water Plan in the 2020 Legislative Session. Thank you for considering our request. Sincerely, _________________________________ ________________________________ Sarah Smith-Hymes, Mayor Amy Phillips, Mayor Pro-Tem _________________________________ ________________________________ Jennie Fancher, Council member Scott Prince, Council member _________________________________ ________________________________ Chico Thuon, Council member Tamra Underwood, Council member _________________________________ Jake Wolf, Council member ATTACHMENT A: Draft Letter to Sen. Donovan From:Erin Riccio To:Council Everyone Group Subject:Resolution or Letter on CO Water Plan Funding Date:Thursday, June 27, 2019 11:31:55 AM Attachments:Water Plan Funding_Sign On Letter Template (2) (1).docx Colorado Water Plan - Eagle County.pdf Members of the Avon Town Council, I work as a community organizer for Conservation Colorado based out of Grand Junctionoffice. I am reaching out to you today with a request regarding statewide water policy. While the 2019 state legislative session is now over, our lawmakers are already starting to think about what what bills they'll be sponsoring next year. Given this, we are hoping to getthe conversation started early among our legislators about prioritizing water conservation in the next legislative session. One way we believe this can be accomplished, is by finding a sustainable source of fundingfor the Colorado Water Plan. If you are unfamiliar with the Colorado Water Plan, it is a road map for Colorado's present and future water usage that was created by stakeholders fromacross the state and representatives from 9 major river basins roundtables. It aims to improve overall water conservation and safeguard our water supplies. Would the Avon Town Council be willing to either send a letter to Senator Donovan orcome out with a resolution calling on Senator Donovan and other state lawmakers to prioritize funding the Colorado Water Plan in the 2020 legislative session? I've attached a letter draft as well as a letter from the Eagle County Board of CountyCommissioners for reference. Thank you for taking the time to consider this. If you have further questions about the Colorado Water Plan, I'd be happy to answer them. Best,Erin -- Erin Riccio | Field Organizer erin@conservationco.org | 720-470-7580 546 Main St #404, Grand Junction, CO 81501 ATTACHMENT B: E-Mail Request for Letter Board of County Commissioners 970-328-8605 970-328-8629(f) eagleadmin@eaglecounty.us www.eaglecounty.us 500 Broadway, P.O. Box 850, Eagle, Colorado 81631 Senator Kerry Donovan 200 E Colfax, RM 346 Denver, CO 80203 June 24, 2019 Dear Senator Donovan, You already know this, but Colorado is a special place. Our mountains, rivers, valleys, plains, forests, wildlife, and wilderness are unparalleled and draw visitors from around the world. And with so much to love about our great state, it is not surprising that our population has grown. In 1930, one million Coloradans called our great state home. Today, more than five million residents live here, a figure that is expected to exceed 10 million by 2050. And as our state’s population continues to grow and the effects of climate change take hold, it has been estimated that there will be severe water shortages -- equivalent to the yearly supply needed for approximately 2.5 million residents -- unless climate change and water consumption trends are sufficiently addressed. We can mitigate this looming catastrophe by acting decisively and acting now. The consequences of inaction will be devastating. That is why we urge you to find a long-term, sustainable source of funding for the Colorado Water Plan and prioritizing the plan’s conservation elements. The same geological forces that shaped our mountains, rivers, valleys, and plains also made us a headwaters state. We are home to the headwaters for some of our nation’s most important rivers, including the Colorado, Arkansas, South Platte, and Rio Grande. Our water supply is fundamental to meeting the state’s current and future needs, including clean drinking water, agriculture, opportunities for outdoor recreation, and sustaining the natural environment. Please protect the waterways we hold dear and the life -- and lifestyle -- they support. Please fund the Colorado Water Plan. Sincerely, Eagle County Board of Commissioners Jeanne McQueeney Kathy Chandler-Henry Matt Scherr Chair Commissioner Commissioner ATTACHMENT C: Eagle County BOCC Letter 1 GARFIELD & HECHT, P.C. ATTORNEYS AT LAW Since 1975 www.garfieldhecht.com MEMORANDUM To: Honorable Mayor Smith Hymes and Town Council members From: Paul Wisor, Town Attorney Re: Support of CML Amicus Brief Date: July 9, 2019 I. Summary The Colorado Municipal League (“CML”) has asked the Town of Avon (the “Town”) to sign on to an amicus brief CML will be filing with the Colorado Court of Appeals in connection with an appeal from the Denver District Court’s decision in Jones v. Dunafon, 2019 CA 000321. The Dunafon case addresses applicability of a constitutional amendment known as Amendment 41 to home rule municipalities and the ability of home rule municipalities to adopt and enforce its own Code of Ethics. Staff recommends the Town sign on to the amicus brief as the Town Code specifically provides Amendment 41 does not apply to the Town and the Avon Code of Ethics, the Town Charter and other ordinances control. Both CML’s amicus brief as well as the Denver District Court’s decision are attached here to as “Exhibit A” and “Exhibit B,” respectively. II. Background Amendment 41 was approved by the voters in November 2006 and, among other things, established and Independent Ethics Commission (the “IEC”) to hear complaints, issue findings, and assess penalties in connection with ethical issues arising from Amendment 41 throughout the State of Colorado. Notwithstanding this broad mandate, Amendment 41 contains a carve out that limits the IEC’s jurisdiction over home rule municipalities. Specifically, the carve out provides “the requirements of this article shall not apply to . . . home rule municipalities that have adopted charters, ordinances, or resolutions that address the matters covered by this article.” Colo. Const. art. XXIX, § 7. The carve out for home rule municipalities is at the heart of the Dunafon case. There, two ethical complaints were filed with the IEC against the Mayor of Glendale. The Mayor argued the IEC lacked jurisdiction over the matter in light of the fact Glendale, as a home rule municipality, adopted and enforced its own Code of Ethics. After reviewing the plain language of Amendment 41 as well as the legislative intent of the drafters and voters, the Denver District Court concluded the IEC did not have AVON OFFICE 0070 Benchmark Road Post Office Box 5450 Avon, Colorado 81620 Telephone: (970) 949-0707 Facsimile: (970) 949-1810 2 jurisdiction over this matter. In concluding the IEC lacked jurisdiction, the Denver District Court noted the intent of Amendment 41 was to permit home rule municipalities to implement their own ethical codes of conduct that did not necessarily comport with or were less stringent than Amendment 41. III. Recommendation CML is submitting its amicus brief to support and bolster the position of the Mayor. By signing on to CML’s brief, the Town, and other municipalities that sign on as well, will be demonstrating to the Court of Appeals that CML’s views are not unique and in fact are shared throughout the municipal community in Colorado. CML’s effort in this case is relevant and important to the Town for two reasons. First, the brief affirms the importance of home rule generally. Second, it argues Codes of Ethics adopted by home rule municipalities are exempt for IEC jurisdiction even if such codes are less stringent that Amendment 41. Section 2.30.170(a) of the Town Code provides Amendment 41 “shall not apply to the Town of Avon.” This is particularly relevant to gifts received by the Town. Amendment 41 places a hard cap on the amount of gifts that an elected official or staff person may receive while the Town Code provides gifts simply must be reported, and the Town Council will determine if such gifts create a conflict of interest. The Town’s support of CML in this effort will not be unique. The Town signed on to an amicus brief authored by CML in a case raising similar questions in 2017. IV. Requested Action Approve a motion directing staff to sign on to the amicus brief to be filed by CML in Jones v. Dunafon. Exhibit A Colorado Court of Appeals 2 East 14th Avenue Denver, CO 80203 ▲ Court Use Only ▲ City and County of Denver District Court The Honorable Edward D. Bronfin, Judge Case No. 2018CV32664 Defendants/Appellants: April Jones, Jo Ann Sorensen, William Leone, Matt Smith, in their official capacities, and The Independent Ethics Commission, State Of Colorado, v. Plaintiff/Appellee: Michael Dunafon Attorneys for Amici Curiae Colorado Municipal League: David Broadwell (#12177) Laurel Witt (#51188) 1144 Sherman Street Denver, CO 80203-2207 Phone: 303-831-6411 Fax: 303-860-8175 E-mails: dbroadwell@cml.org; lwitt@cml.org City of Colorado Springs: Wynetta P. Massey (#18912) Tracy M. Lessig (#27566) OFFICE OF THE CITY ATTORNEY P.O. Box 1575, Mail Code 510 30 South Nevada Avenue, Suite 501 Colorado Springs, CO 80901 Phone: (719) 385-5909 Fax: (719) 385-5535 E-mails: wmassey@springsgov.com; tlessig@springsgov.com Case No. 2019CA000321 BRIEF OF AMICI CURIAE [INSERT CITIES] AND THE COLORADO MUNICIPAL LEAGUE IN SUPPORT OF PLAINTIFF/APPELLEE MICHAEL DUNAFON CERTIFICATE OF COMPLIANCE I certify that this brief complies with all requirements of C.A.R. 29 and C.A.R. 32, including all formatting requirements set forth in these rules. Specifically, I certify the following: The brief complies with the applicable word limits set forth in C.A.R. 29(d). The brief contains _____ words (does not exceed 4,750 words). The amici brief complies with the content and form requirements set forth in C.A.R. 29(c). I acknowledge that this brief may be struck if it fails to comply with any of the requirements of C.A.R. 29 and C.A.R. 32. /s/ Tracy M. Lessig Tracy M. Lessig i TABLE OF CONTENTS IDENTITY AND INTEREST OF AMICI CURIAE .................................................. SUMMARY OF THE ARGUMENT .......................................................................... ARGUMENT ............................................................................................................... CONCLUSION ............................................................................................................ TABLE OF AUTHORITIES 1 Pursuant to C.A.R. 29(b), the undersigned Colorado home rule municipalities and the Colorado Municipal League submit this brief as amici curiae in support of Plaintiff/Appellee Michael Dunafon, Mayor of the City of Glendale, a home rule municipality (“Mayor Dunafon”). IDENTITY AND INTEREST OF AMICI CURIAE [Insert from Motion Laurel and Ellie are drafting] SUMMARY OF THE ARGUMENT The district court determined the plain language of Amendment 41 to the Colorado Constitution, now codified as Article XXIX, provides a carve-out provision for home rule jurisdictions that locally address ethical standards of conduct. [cite] The district court further found Section 7 of Article XXIX allows home rule entities to pass ethical provisions less stringent than the article. [cite] Finally, the district held the Independent Ethics Commission (“IEC”) lacked jurisdiction over Mayor Dunafon because Glendale had addressed ethical standards of conduct in its charter and code. [cite] This Court should affirm the reasoning and findings of the district court and reject the arguments of the IEC. The IEC incorrectly claims that ethics are a matter of statewide concern; that it has authority to determine on a case-by-case basis whether a home rule 2 jurisdiction is exempt from Article XXIX by assessing whether the jurisdiction’s ethics provisions are meaningful both facially and as applied; and that, unless this Court adopts the IEC’s position, ethics in home rule jurisdictions will go unchecked. The IEC’s position demonstrates a basic misunderstanding of home rule in Colorado and a lack of appreciation for the broad power Article XX of the Colorado Constitution grants home rule cities and towns to govern local affairs. The home rule exemption in Section 7 of Article XXIX did not give home rule entities authority to opt out of the article. Rather, the carve-out recognizes that home rule entities already have the power to regulate ethical standards pursuant to Article XX, Section 6(a). Section 6(a) of Article XX grants home rule entities authority over terms, duties, and conditions of municipal officers and employees. Colo. Const. art. XX, § 6(a). As such, home rule jurisdictions are free to legislate in the area of ethics, whether their standards are more or less stringent than Article XXIX. The IEC has no power under Article XXIX to analyze the substance or application of each home rule entity’s ethics code on a case-by-case basis. If a home rule entity has addressed ethics standards, the Section 7 carve-out applies and the inquiry ends. The IEC’s interpretation would leave every Colorado home 3 rule official and employee uncertain as to whether they must comply with their local code or Article XXIX. This is an absurd result. Finally, the IEC’s prediction that, unless this Court agrees with its interpretation of Article XXIX, home rule citizens will have no recourse when ethics “standards are inconsistently or unfairly applied” has no merit. Op. Br. 35. Colorado Rule of Civil Procedure 106(a)(4) provides the mechanism for citizens to challenge judicial or quasi-judicial decisions of governmental bodies or officials that exceed their jurisdiction or abuse their discretion. Local citizens can also address insufficient ethical standards or inconsistent application of those standards by exercising their right to vote for citizen-initiated charter amendments or ordinances and electing officials that represent local values. These options, not a state body reviewing home rule matters, are consistent with law and principles of representative democracy. In sum, the IEC’s intrusion on home rule authority is ultra vires because the IEC has no constitutional authority over home rule jurisdictions that have elected to govern ethics as a local matter. The district court’s reasoning and conclusions reflect the concept of home rule in Colorado. The district court’s order should be affirmed. 4 ARGUMENT I. BACKGROUND Amendment 41 was passed by the voters in November 2006 and contains the following exemption for home rule cities and counties: Any county or municipality may adopt ordinances or charter provisions with respect to ethics matters that are more stringent than any of the provisions contained in this article. The requirements of this article shall not apply to home rule counties or home rule municipalities that have adopted charters, ordinances, or resolutions that address the matters covered by this article. Colo. Const. art. XXIX, § 7 (emphasis added). Both before and after the passage of Article XXIX, home rule cities and counties operated successfully under local regulations governing standards of conduct for their officials and employees. Then, without authority or need, in December 2016 the IEC issued Position Statement1 16-01 (Home Rule Counties and Municipalities).2 [CITE]. In July 2018, the IEC issued an order asserting 1 Nothing in Article XXIX gives the IEC authority to issue position statements. Article XXIX only confers power to the IEC to “hear complaints, issue findings, and assess penalties, and also to issue advisory opinions.” Colo. Const. art. XXIX, § 5(1). The IEC issues advisory opinions when a covered person requests a determination regarding whether their conduct would violate Article XXIX. Colo. Const. art. XXIX, § 5(5). 2 The Colorado Municipal League, ethics watch groups, and numerous municipalities filed objections to the IEC’s draft Position Statement 16-01. [CITE?] 5 jurisdiction over two complaints it received against Mayor Dunafon. [CITE]. The IEC asserted jurisdiction over Mayor Dunafon because, in its opinion, Glendale’s city council was not sufficiently independent to satisfy the home rule exemption in Section 7 of Article XXIX. Order p. 3. The IEC’s actions created uncertainty and confusion for every home rule entity that had legislated in the area of ethics and had for years successfully operated under those local standards. Mayor Dunafon filed a C.R.C.P. Rule 106(a)(4) action in Denver District Court challenging the jurisdictional order of the IEC. The district court held the IEC lacked jurisdiction over Mayor Dunafon because Glendale has adopted ethical standards, which exempts it from Article XXIX. Order p. 14. The district court also concluded Article XXIX does not apply to home rule entities with ethical standards, “irrespective of the stringency of the home rule entity’s ethics code.” Order p. 11. The district court’s order affirmed the understanding of home rule cities and towns for years: if a home rule entity enacts ethical standards of conduct, it is exempt from Article XXIX, “whether the ethics code is more, equal, or less stringent that Article XXIX.” Order p. 11. II. THE DISTRICT COURT CORRECTLY DETERMINED THAT ETHICAL STANDARDS ARE A MATTER OF LOCAL CONCERN. A. Article XX gives cities and towns broad authority over local affairs. 6 The IEC claims ethical standards for government officials and employees are a matter of statewide concern.3 Citing Section 6 of Article XX, the IEC contends ethics are not a matter of local concern because ethical conduct is not “one of the topics specifically designated an area of local concern.” Op. Br. p. 25 fn 3. The district court correctly concluded “[i]t would be absurd for this Court . . . to hold that ethical standards for elected officials are a matter of statewide concern in view of the very specific carve-out provision that does not apply to home rule counties and municipalities, provided such a county or municipality has adopted an ethical code.” Order p. 14. The IEC’s narrow reading of Section 6 is not supported by legal precedent. See City & Cty. of Denver v. State, 788 P.2d 764, 770 (Colo. 1990) (noting that Colorado case law has “supported a broad interpretation” of Article XX, Section 6(a)). The IEC lacks appreciation for the power of home rule in Colorado. When Colorado citizens adopted Article XX over a century ago (1902, amended in 1912 to add Section 6), municipal citizens were granted authority to adopt home rule charters providing for local governance. The home rule amendment granted home rule cities and towns “every power theretofore possessed by the legislature to authorize municipalities to function in local and municipal affairs.” Id. at 767 3 Notably, Article XXIX does not state that ethics are a matter of statewide concern. 7 (emphasis in original) (internal quotations and citation omitted). A home rule entity’s charter “shall be its organic law and extend to all its local and municipal matters” and “[s]uch charter and the ordinances . . . shall supersede any law of the state in conflict therewith.” In matters of local concern, “[b]oth the home-rule city and the state may legislate . . . but in the event of a conflict, the home-rule provision prevails over the state provision.” Ryals v. City of Englewood, 364 P.3d 900, 905 (Colo. 2016) (internal citations omitted). The Colorado Supreme Court has recognized that “[a]lthough the legislature continues to exercise supreme authority over matters of statewide concern, a home rule city is not inferior to the General Assembly with respect to local and municipal matters.” Denver, 788 P.2d at 767. The terms and conditions of municipal officers and employees, including standards of ethical conduct, are matters of local concern over which home rule entities have plenary power to govern.4 Section 6(a) of Article XX grants home rule municipalities the “power to legislate upon, provide, regulate, conduct and control: [t]he creation and terms of municipal officers, agencies and employments; [and] the definition, regulation and alteration of the powers, duties, qualifications 4 Article V, Section 35 of the Colorado Constitution prohibits the general assembly from delegating to any special commission the power to perform any municipal function. 8 and terms or tenure of all municipal officers, agents and employees.”5 The carve- out for home rule entities in Section 7 of Article XXIX recognizes that ethical standards are a matter of local concern and home rule entities have the prerogative to enact legislation to regulate this local matter. Ethical standards of conduct are encompassed in the authority conferred in Article XX, Section 6(a). The IEC’s claim that every topic must be specifically named in Article XX is absurd and contrary to home rule jurisprudence. See Nat'l Advert. Co. v. Dep't of Highways of State of Colo., 751 P.2d 632, 635 (Colo. 1988) (“[a]lthough ‘zoning’ is not expressly enumerated in Article XX . . . as a specific power of municipal self-government we have nonetheless recognized . . . zoning legislation is a matter of local concern”) (internal citation omitted). In addition, courts have found numerous issues within a home rule municipality’s power that were not specifically set forth in Section 6(a). See Denver, 788 P.2d at 772 (residency requirements for employees are a matter of local concern); Schaefer v. City & Cty. of Denver, 973 P.2d 717, 720 (Colo. App. 1998) (the power design and implement group health insurance for employees is a matter of local concern). 5 The City and County of Denver has authority over the terms, duties and qualifications of local officers pursuant to Section 2 of Article XX. 9 Under Article XX, Section 6(a), home rule entities, not the state, have authority over local ethical standards of conduct if they legislate in this area. B. Colorado Springs supports the district court’s decision. The IEC attempts to distinguish Colorado Springs, a case relied on by the district court, by claiming elections are undisputedly matters of local concern and ethics are not. Op. Br. 27. In Colorado Springs, the Colorado Court of Appeals construed language identical to Article XXIX, Section 7, which was included in the Fair Campaign Practices Act (“FCPA”): Any home rule county or municipality may adopt ordinances or charter provisions with respect to its local elections that are more stringent than any of the provisions contained in this act . . . . The requirements of article XXVIII of the state constitution and of this article shall not apply to home rule counties or home rule municipalities that have adopted charters, ordinances, or resolutions that address the matters covered by article XXVIII and this article. In Re City of Colorado Springs, 277 P.3d 937, 940 (Colo. App. 2012); C.R.S. § 1- 45-116. The Court applied the plain and ordinary meaning of the language in holding the city fell within the exclusion contained in the FCPA because “its Charter and campaign practices ordinance address those matters.” Id. (emphasis added). The Court determined home rule entities already had the power to regulate elections pursuant to Article XX, Section 6 as a matter of local concern. See id. at 939. 10 Importantly, the Court cited the campaign finance provisions of the city, but did not conduct an analysis of the quality of those provisions. Id. at 940. Colorado Springs supports the district court’s analysis and findings in this case. The district court applied the plain and ordinary language of Article XXIX, Section 7 and concluded that the carve-out applies to home rule entities with legislation governing ethical conduct for local officials, regardless of whether the provisions are more or less stringent than Article XXIX. [cite] The district court’s analysis affirmed the understanding of home rule jurisdictions since the passage of Amendment 41 in 2006. C. The IEC’s position regarding the extent an adjudicator must be independent exemplifies its lack of understanding of the governing structure of home rule entities. The IEC’s position on the level of independence needed for adjudication of ethics complaints highlights its misunderstanding of the governing structure of home rule jurisdictions. Section 5(2) of Article XXIX contains a complex structure for appointing members of the IEC, including members appointed by the senate, the house of representatives, the governor, and the chief justice of the supreme court. It would be impossible for cities and towns to match this level of independence. 11 Home rule cities and towns are governed by a small number of elected officials with legislative and executive authority over all local matters. Due to this structure, it is often the case that elected officials make decisions on the conduct of each other. There is nothing inherently flawed with this arrangement. Courts have recognized that quasi-judicial decision-makers “are entitled to a ‘presumption of integrity, honesty and impartiality.’” Whitelaw v. Denver City Council (quoting Soon Yee Scott v. City of Englewood, 672 P.2d 225, 227 (Colo.App.1983)). Also, “[a]bsent a personal, financial, or official stake in the outcome evidencing a conflict of interest on the part of the decisionmaker, an adjudicatory hearing is presumed to be impartial.” Venard v. Dep't of Corr., 72 P.3d 446, 449 (Colo. App. 2003). The unique make-up and issues facing different home rule cities and towns requires diverse approaches to local matters. As such, home rule jurisdictions have addressed the adjudication of ethics complaints in a variety of ways. None of them mirror the make-up of the IEC. Yet, all of them are permissible under Article XX and Article XXIX. For example, Denver has a five-member Board of Ethics appointed by the mayor and city council. § 2-53(b), (c), D.R.M.C. Colorado Springs has an Independent Ethics Commission appointed by its city council with jurisdiction to investigate and make recommendations to city council on 12 complaints involving elected officials, administrative officers, judges, and members of boards and commissions. Colorado Springs City Code §§ 1.3.103(A)(B), § 1.3.102. Ethics complaints against employees, independent contractors, and volunteers are handled by the executive branch. Id. at § 1.3.102. In Central City, the Board of Ethics is comprised of the mayor and all members of city council. Central City Municipal Code §§ 2-4-110(b), (d). The Avon town council has authority over ethics complaints in Avon. Avon Town Code of Ethics 2.30.140(a). The diversity of home rule ethics codes highlights the underlying purpose behind Article XX: to give home rule cities and towns the ability to govern based on their particular make-up and uniqueness without interference from the state. D. The Gessler decision is inapplicable to this case. The IEC’s reliance on Gessler v. Smith, 419 P.3d 964, 970 (Colo. 2018), to support its position that home rule jurisdictions cannot adopt ethics provisions that conflict with Article XXIX misconstrues the language of Gessler. Op. Br. 26. The IEC claims the Gessler Court’s brief summary of Article XXIX provisions not at issue and not relevant to the matter before it is somehow dicta for the proposition that counties and municipalities can only adopt non-conflicting ethics codes. Op. Br. 26. The sentence in Gessler is merely a summary of the first sentence of 13 Section 7, which allows counties and municipalities to adopt more stringent ethics provisions. The Court did not address the second sentence, which completely exempts home rule entities that have locally addressed ethical standards of conduct. III. THE IEC’S INTERPRETATION OF ARTICLE XXIX LEADS TO AN UNWORKABLE AND ABSURD RESULT. The IEC’s Position Statement 16-01 contemplates that, after the IEC receives a complaint against a home rule official or employee from a jurisdiction with its own ethics code, it analyzes the local ethics provisions and determines whether they meaningfully address the matters in Article XXIX.6 [CITE]. If not, the IEC will exercise jurisdiction against the home rule official or employee and the provisions of Article XXIX will retroactively apply to that individual. The IEC’s interpretation of Section 7 leads to an absurd and unworkable result. Courts must construe constitutional provisions in order to “avoid an unreasonable interpretation or one that produces an absurd result.” Patterson Recall Comm., Inc. v. Patterson, 209 P.3d 1210, 1215 (Colo. App. 2009). Under the IEC’s framework, home rule officials and employees have no ability to determine whether to follow their local ethics code or Article XXIX because, at some point in the future, the 6 IEC Position Statement 16-01 sets forth an eight-factor test, which essentially requires home rule entities to mirror the provisions of Article XXIX. 14 IEC may determine the local code does not meaningfully address the matters in Article XXIX. This result is contrary to the plain meaning and clear intent of the drafters and voters of Amendment 41. Even more absurd is the IEC’s position in its July 2018 jurisdictional order involving Mayor Dunafon. The IEC did not merely determine whether Glendale’s ethics provisions were sufficient to exempt it from Article XXIX. Rather, the IEC judged whether the local provisions as applied in Mayor Dunafon’s case were sufficient to exempt him from Article XXIX.7 The IEC determined Glendale’s city council was not an independent body as applied to Mayor Dunafon, although it “would be a sufficiently independent body to adjudicate complaints against most covered individuals in Glendale.” Order p. 3. As a result, Mayor Dunafon (but no other Glendale official) is subject to all the provisions of Article XXIX, including gift provisions that significantly differ from Glendale’s charter and code. The drafters and voters of Amendment 41 could not have intended this result. Home rule jurisdictions cannot function under such an absurd interpretation of Article XXIX. 7 In its Position Statement, the IEC invites home rule entities to ask for a letter ruling regarding whether their local ethics provisions are sufficient under the IEC’s eight-factor test. Position Statement 16-01 p. 2 fn.2. However, the IEC’s as applied case-by-case approach in Mayor Dunafon’s case renders a letter ruling meaningless. Order p. 3. 15 IV. THE IEC ERRONEOUSLY CLAIMS THERE WILL BE NO REGULATION OF ETHICS IN HOME RULE JURISDICTIONS IF THE COURT REJECTS ITS INTERPRETATION OF ARTICLE XXIX. The IEC contends if the Court affirms the district court’s decision “a majority of state residents will be denied an impartial decision maker to hear their ethics complaints against local public officials and employees.” Op. Br p. 34-35. The IEC also states that affirming the district court’s decision “leaves complainants without any guarantee of the adoption and application of minimal standards of conduct in a home rule jurisdiction, and without any recourse if such standards are inconsistently or unfairly applied.” Op Br. p. 35. The IEC’s prediction that, without its oversight, ethics in home rule jurisdictions will be a free-for-all ignores long- standing rules applicable to judicial and quasi-judicial governmental action and fails to recognize the underlying principles of a representative democracy. A fundamental flaw in the IEC’s positon is that it presumes it has a continuing role in home rule jurisdictions that have adopted their own ethical standards of conduct. The IEC believes it has a review or appellate role in home rule ethics matters. It does not. The Section 7 carve-out does not allow individuals unhappy with the result of a local ethics adjudication another bite at the apple with the IEC. Rule 106 of the Colorado Rules of Civil Procedure, not the IEC, is the proper avenue for review of judicial or quasi-judicial decisions of local officials. C.R.C.P. 16 Rule 106(a)(4). A district court, not the IEC, has jurisdiction to decide whether governmental bodies or officers have exceeded their jurisdiction or abused their discretion. Id. Rule 106, not the IEC, is the correct path to challenge biased or impartial decisions by governmental bodies or officers. See Venard, 72 P.3d at 449. The IEC’s position also ignores the power of the electorate to vote. If home rule citizens are dissatisfied with local ethics codes or believe such codes are not applied impartially, they can pass charter amendments or ordinances with more robust ethical standards and/or elect different individuals to govern. Sufficient safeguards already exist to address wrongdoing in home rule jurisdictions. The IEC has no role in a local matter addressed by officials elected to office by local citizens. V. CONCLUSION Regulation of the standards of conduct over local officials and employees is a matter of local concern. Home rule authority is no small matter. Article XX grants strong home rule municipal authority to legislate, regulate, and control the duties of elected officials and employees. Nothing in Article XXIX undermines this authority. The electorate of Colorado has long-recognized the value of local control over local matters. It is in the purview of the citizens of home rule entities, 17 not a state commission, to determine whether local ethics provisions adequately address local concerns and values within the context of the particular community. The decision of the district court should be affirmed. Respectfully submitted this ____ day of July, 2019. COLORADO MUNICIPAL LEAGUE /s/ David Broadwell David Broadwell, General Counsel Reg. No. #12177 Laurel Witt, Staff Attorney Reg. No. #51188 1144 Sherman Street Denver, CO 80203-2207 Phone: 303-831-6411 Fax: 303-860-8175 E-mails: dbroadwell@cml.org lwitt@cml.org Attorneys for Amici Curiae OFFICE OF THE CITY OF COLORADO SPRINGS CITY ATTORNEY /s/ Wynetta P. Massey Wynetta P. Massey, City Attorney Reg. No. #18912 Tracy M. Lessig, Division Chief Reg. No. #27566 30 S. Nevada Ave., Suite 501 Colorado Springs, Colorado 80903 Telephone: (719) 385-5909 Facsimile: (719) 385-5535 Emails: wmassey@springsgov.com 18 tlessig@springsgov.com Attorneys for Amici Curiae [INSERT OTHER JURISDICTIONS] CERTIFICATE OF SERVICE I hereby certify that on this __ day of July, 2019, I electronically filed a true and correct copy of the foregoing [INSERT TITLE] with the Clerk of the Court through Colorado Courts E-Filing system which will send notification of this filing to the following: [insert names] /s/ Exhibit B AVON COUNCIL RETREAT MINUTES TUESDAY, JUNE 25, 2019 AVON POLICE DEPARTMENT, 60 BUCK CREEK ROAD, AVON, CO 81620 Council Retreat Minutes 6/25/2019 Page 1 1. CALL TO ORDER & ROLL CALL Mayor Smith Hymes called the meeting to order at 12:09 p.m. A roll call was taken and Council members present were Amy Phillips, Scott Prince, Jennie Fancher, Jake Wolf and Tamra Nottingham Underwood. Chico Thuon was absent. Also present were Town Manager Eric Heil, Assistant Town Manager Scott Wright, Planning Director Matt Pielsticker, Town Engineer Justin Hildreth, Recreation Director John Curutchet, CASE Manager Danita Dempsey and Deputy Town Manager Preston Neill. Councilor Thuon arrived at 12:18 p.m. 2. UPDATES ON 2019 STRATEGIC PLAN AND 2020 STRATEGIC PLANNING DISCUSSION Staff gave Council a variety of updates and background information on pending projects as well as potential projects or policies for the remainder of 2019 and potentially for 2020. Council members expressed ideas for the 2020 Strategic Plan and discussed various pending and future projects. Council gave direction to staff on a variety of pending projects and policies, as well as for a draft 2020 Strategic Plan. Councilor Thuon left the meeting at 12:40 p.m. 3. EXECUTIVE SESSION TO DISCUSS THE PURCHASE, ACQUISITION, LEASE, TRANSFER, OR SALE OF REAL, PERSONAL, OR OTHER PROPERTY INTEREST UNDER C.R.S. §24-6-402(2)(A) CONCERNING POTENTIAL PROJECTS IN AVON AND FOR A CONFERENCE WITH THE TOWN ATTORNEY FOR THE PURPOSE OF RECEIVING LEGAL ADVICE ON REAL ESTATE NEGOTIATIONS UNDER C.R.S. §24-6-402(2)(B). Mayor Smith Hymes moved to convene into Executive Session to discuss the purchase, acquisition, lease, transfer, or sale of real, personal, or other property interest under C.R.S. §24-6-402(2)(a) concerning potential projects in Avon and for a conference with the Town Attorney for the purpose of receiving legal advice on real estate negotiations under C.R.S. §24-6-402(2)(b). Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously by Council members present. Council Thuon was absent. The time was 3:24 p.m. Councilor Wolf left the meeting at 3:30 p.m. Executive Session started at 3:30 p.m. Executive Session ended at 4:03 p.m. 4. ADJOURNMENT There being no further business to come before the Council, Councilor Underwood moved to adjourn the Council Retreat. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously by Council members present. Councilor Wolf and Councilor Thuon were absent. The time was 4:04 p.m. AVON COUNCIL RETREAT MINUTES TUESDAY, JUNE 25, 2019 AVON POLICE DEPARTMENT, 60 BUCK CREEK ROAD, AVON, CO 81620 Council Retreat Minutes 6/25/2019 Page 2 RESPECTFULLY SUBMITTED: _________________________________ Preston Neill, Deputy Town Manager APPROVED: Sarah Smith Hymes ________________________________ Amy Phillips ________________________________ Jake Wolf ________________________________ Chico Thuon ________________________________ Tamra N. Underwood ________________________________ Scott Prince ________________________________ Jennie Fancher ________________________________ Page 1 AVON REGULAR MEETING MINUTES TUESDAY, JUNE 25, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620 1. CALL TO ORDER AND ROLL CALL Mayor Smith Hymes called the meeting to order at 5:07 p.m. A roll call was taken, and Council members present were Amy Phillips, Jennie Fancher, Tamra Underwood, Jake Wolf, Scott Prince and Chico Thuon. Also present were Town Manager Eric Heil, Police Chief Greg Daly, Planning Director Matt Pielsticker and Deputy Town Manager Preston Neill. 2. APPROVAL OF AGENDA (MAYOR SMITH HYMES) Mayor Sarah Smith Hymes requested that item 4.8 "Resolution 19-13 Appointing Paul Wisor as the Town Attorney and Approving the Agreement for Legal Services with Garfield & Hecht, P.C." be removed from the agenda and moved to the July 9, 2019 Council meeting. Councilor Underwood suggested several changes to the language in the agreement and Paul Wisor agreed to make the changes. Councilor Fancher moved to approve the agenda with the change proposed by Mayor Smith Hymes. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 6 to 1. Councilor Wolf voted no. 3. PUBLIC COMMENT No public comments were made. 4. BUSINESS ITEMS 4.1. PRESENTATION AND DIRECTION REQUESTED: CONTRIBUTION REQUEST FOR EAGLE COUNTY LOAN FUND (KIM BELL WILLIAMS, EAGLE COUNTY) Kim Bell Williams and Nicholle Jackson made a presentation on the Eagle County Downpayment Assistance Programs and described the fundraising goals for the Eagle County Loan Fund. Councilor Underwood made a motion to approve the appropriation of $50,000 from the Affordable Housing Fund to be given to the Eagle County Loan Fund. Councilor Fancher seconded the motion and the motion passed unanimously. 4.2. PUBLIC HEARING: SOUND PERMIT APPLICATION FOR A TASTE OF NATURE GALA FUNDRAISER AT WALKING MOUNTAINS SCIENCE CENTER (DEPUTY TOWN MANAGER PRESTON NEILL) Mayor Smith Hymes opened the public hearing and no comments were made. Councilor Prince noted that the date on the application needs to be changed to July 9, 2019 instead of July 9, 2018, and staff agreed to make the edit on the application. Councilor Prince moved to approve the Outdoor Amplified Sound Permit for Walking Mountains Science Center on Tuesday, July 9, 2019, to extend the hours to 10:30 p.m. Councilor Wolf seconded the motion and the motion passed unanimously. 4.3. PRESENTATION: COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2018 (ASSISTANT TOWN MANAGER/FINANCE DIRECTOR SCOTT WRIGHT) Scott Wright gave a presentation on the Comprehensive Annual Financial Report for the Year Ended December 31, 2018. Page 2 AVON REGULAR MEETING MINUTES TUESDAY, JUNE 25, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620 4.4. PUBLIC HEARING: RESOLUTION 19-08 GENERAL FUND BUDGET AMENDMENT (ASSISTANT TOWN MANAGER/FINANCE DIRECTOR SCOTT WRIGHT) Councilor Prince disclosed that his son participates in the Community Swim Program. Councilor Underwood moved to allow Councilor Prince to participate in the Budget Amendment. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously. Staff answered several questions from members of Council. Mayor Smith Hymes opened the public hearing and no comments were made. Councilor Fancher moved to approve Resolution 19-08 Amending the 2019 Town of Avon Budget. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously. 4.5. PUBLIC HEARING: RESOLUTION 19-14, FINAL PLAT FOR LOT 5, RIVERFRONT SUBDIVISION (PLANNING DIRECTOR MATT PIELSTICKER) Councilor Thuon, Councilor Fancher and Councilor Prince recused themselves from the item. Mayor Pro Tem Phillips requested permission from Council to vote on the item. The applicant answered a question from Councilor Underwood. Councilor Underwood moved to approve Resolution 19-14, thereby approving the Major Subdivision Application for Lot 5, Riverfront Subdivision. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 4 to 0. Councilor Thuon, Councilor Fancher, and Councilor Prince did not vote on the item because they had recused themselves. 4.6. PUBLIC HEARING: SECOND READING ORDINANCE 19-01 AMENDING THE AVON MUNICIPAL CODE TO AUTHORIZE FEE WAIVERS AND TAX EXEMPTIONS FOR COMMUNITY HOUSING PROJECTS (TOWN MANAGER ERIC HEIL) Mayor Smith Hymes opened the public hearing and no comments were made. Councilor Underwood moved 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. Councilor Fancher seconded the motion and the motion passed unanimously. 4.7. INTERVIEWS AND APPOINTMENT OF ONE PLANNING AND ZONING COMMISSION MEMBER (PLANNING DIRECTOR MATT PIELSTICKER) Rebecca Smith and Joe Shankland were interviewed for the vacant position on the Planning and Zoning Commission. Council conducted a straw poll and Rebecca Smith received five votes from Mayor Smith Hymes, Mayor Pro Tem Phillips, Councilor Fancher, Councilor Underwood and Councilor Prince. Joe Shankland received two votes from Councilor Thuon and Councilor Wolf. Councilor Underwood moved to appoint Rebecca Smith to the Avon Planning and Zoning Commission, with term expiring May 1, 2021. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 5 to 2. Councilor Thuon and Councilor Wolf voted no. 4.8. RESOLUTION 19-13 APPOINTING PAUL WISOR AS THE TOWN ATTORNEY AND APPROVING THE AGREEMENT FOR LEGAL SERVICES WITH GARFIELD & HECHT, P.C. (TOWN MANAGER ERIC HEIL) This item was not entertained by Council as it had been continued to the July 9, 2019 Council meeting. Page 3 AVON REGULAR MEETING MINUTES TUESDAY, JUNE 25, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620 4.9. APPROVAL OF MINUTES FROM JUNE 11, 2019 REGULAR COUNCIL MEETING (DEPUTY TOWN MANAGER PRESTON NEILL) Councilor Fancher moved to approve the June 11, 2019 Regular Council meeting minutes. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 6 to 1. Councilor Wolf voted no. 5. WRITTEN REPORTS 5.1. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT NELLY BURNS) 5.2. ABSTRACT FROM JUNE 18, 2019 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) 6. MAYOR & COUNCIL COMMENTS & MEETING UPDATES Councilor Fancher mentioned the "Small Business Insight Series: Q&A – Potential Tariffs on Recreational Goods from China" that will take place on June 26th at Colorado Mountain College at 5:00 p.m. Councilor Prince asked staff a question about this summer's parking plan for the Nottingham Park Beach/north side of the Park. Councilor Thuon conveyed several ideas, including a permanent VMS board above Avon Road on the Union Pacific Railroad bridge. Councilor Wolf highlighted the upcoming Avon LIVE! Concerts including the musical acts for each one. He also gave a reminder about the Salute to the USA event on July 3rd where Ziggy Marley and Hazel Miller will be performing. Finally, he said that the Vail Valley Brew Fest at Avon will take place on June 29th from 4 to 8 p.m. in Nottingham Park. Mayor Smith Hymes lauded several recent events including the Town Clean Up Day event, the Benches Project Kick Off and the Purina Pro Plan Incredible Dog Challenge. 7. ADJOURNMENT There being no further business before Council, Mayor Smith Hymes adjourned the Regular meeting. The time was 7:45 p.m. Page 4 AVON REGULAR MEETING MINUTES TUESDAY, JUNE 25, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620 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: Preston Neill, Deputy Town Manager APPROVED: Sarah Smith Hymes Amy Phillips Jake Wolf Chico Thuon Jennie Fancher Scott Prince Tamra N. Underwood 1 PZC Abstract – July 2, 2019 Planning & Zoning Commission Meeting Abstract July 2, 2019 I. Call to Order The meeting was called to order at 5:00 pm. II. Swearing in of Commissioner Rebecca Smith. Avon Town Clerk, Brenda Torres, swore in the newly appointed Planning and Zoning Commissioner. III. Roll Call All Commissioners were present. IV. Conflicts of Interest No conflicts were divulged. V. Additions & Amendments to the Agenda There were no additions or amendments to the agenda. VI. Code Text Amendment – PUBLIC HEARING File: CTA19002 Applicant: Town of Avon Properties: Light Industrial and Commercial Employment (IC) District Lots 10 – 39 Block 1 Benchmark at Beaver Creek; and Tract Y Filing 3 Mountain Star Subdivision 80-451 Metcalf Road; and 710-850 Nottingham Road Summary: Code Modification allow for residential development at 10 units per acre in the IC district under the Special Review Use process. Action: Commissioner Howell motioned to continue the item to the July 16, 2019 PZC meeting pending the completion of edits. Commissioner Nusbaum seconded the motion and it carried unanimously 7-0. VII. Consent Agenda A – PZC Meeting Minutes – June 18, 2019 B – Record of Decision – Major Subdivision SUB19006 / Riverfront Subdivision Action: Commissioner Barnes motioned to approve the consent agenda. Commissioner Nusbaum seconded the motion and it carried unanimously 5-0 with commissioner Smith and Howell abstaining. VIII. Other Business MNR19008: Roof and Solar Panel application for Lot111C Block 1 Wildridge, 2011 Beaver Creek Point. Staff initially noticed the application for public hearing, and approved the application once substantial compliance with Avon Municipal Code was achieved. TMP19002/TMP19003: Bank Parking for Boy Scout Troops on July 3 IX. Adjourn The meeting was adjourned at 6:15 pm. WRITTEN REPORT To: Honorable Mayor and Town Council From: Preston Neill, Deputy Town Manager Date: July 9, 2019 Topic: Town Code Requirement for Gift Reporting and Disclosure Report SUMMARY Section 2.30.170 “Gift Reporting” of the Avon Municipal Code requires the Town Clerk to disclose, through a report, any gifts received by any Town Officer in excess of $50 in value. Section 2.30.170(b) states that “any Town Officer who receives any present, or offer of future, individual gift, favor, loan, service or thing of value in excess of fifty dollars ($50.00) and such gift is offered due to such person's status as a Town Officer then such officer shall report such gift and the estimated value to the Town Clerk.” The Town Clerk is charged with promptly disclosing gifts received, or offer of future gifts, to the Town Council. Attached is a Town Clerk Gift Reporting Disclosure Report for July 2019, which lists 1) Fourteen (14) VIP passes to the 2019 Beaver Creek Rodeo Series, 2) Fourteen (14) tickets to the Vail Valley Brew Fest at Avon on June 29th, and 3) Three (3) VIP, All-Access passes to the Purina Pro Plan Incredible Dog Challenge on June 21st and 22nd. The Town Council is not required to take any action. Any Council member may request Council consideration of a reported gift to determine whether such gift constitutes a conflict of interest. Town of Avon Town Clerk Disclosure Report In accordance with §7, Article XXIX of the Colorado Constitution and Section 2.30.170 of the Avon Municipal Code, and any other applicable Avon Home Rule Charter provision, ordinance or resolution adopted by the Town of Avon, I, Brenda Torres, Town Clerk for Town of Avon, submit the following list of gifts reported to be received by officers of the Town of Avon: 1. Beaver Creek Rodeo Series VIP Passes – The Town Council received fourteen (14) VIP passes to this summer’s Beaver Creek Rodeo Series. Each member of the Council received two (2) passes, one provided for the purpose of reviewing the event for any future funding request, and the second provided as a gift for a guest. With individual VIP tickets valued at $27.00 and there being seven (7) total rodeo events scheduled, the total value of each pass is $189.00. 2. Vail Valley Brew Fest at Avon Tickets – The Town Council received fourteen (14) tickets to the Vail Valley Brew Fest at Avon on June 29th. Each member of the Council received two (2) tickets, one provided for the purpose of reviewing the event for any future funding request, and the second provided as a gift for a guest. Each ticket is valued at $25.00. 3. 2019 Purina Pro Plan Incredible Dog Challenge VIP Tickets – Mayor Smith Hymes, Mayor Pro Tem Phillips and Councilor Wolf each received one (1) VIP, All-Access pass to the Purina Pro Plan Incredible Dog Challenge on June 21st and 22nd. While the price of each ticket was not confirmed by the time this report was published, the value of each ticket is expected to exceed $50 in value. Submitted to the Avon Town Council on July 9, 2019. _________________________________ Brenda Torres, Town Clerk M E M O R A N D U M TO: Board of Directors FROM: Catherine Hayes, Board Secretary DATE: July 1, 2019 RE: Summary of Authority’s June 27, 2019, Board Meeting The following is a summary of items discussed at the June 27, 2019, Authority Board Meeting: Board members present and acting included: Chair George Gregory, Treasurer Geoff Dreyer, alternate directors Eric Heil, Betsy Laughlin, and Bill Simmons. Notice of Water System Impact Fee A water system impact fee increase is being considered, and this meeting was the formal notice of such consideration. Though the WSIF has been increased annually for cost of living, such increases have not accounted for additional capital projects undertaken by the Authority since 2015. The August board meeting will be the formal presentation and consideration by the board of the proposed increase. Backflow Prevention and Cross- Connection Control Program (BPCCCP) Notice of Violation Linn Brooks noted receipt of a formal notice of violation from the Colorado Department of Public Health and Environment (CDPHE) regarding the Authority and District’s BPCCCP on June 7. Required notification to customers must be issued within 30 days. A letter was prepared by staff and will be mailed on July 2, with customer water bills. A press release will also be issued to reach customers who do not receive a water bill. Customer support is needed to meet compliance with the BPCCCP, which is another reason to communicate broadly with the larger community about this matter. Lift Station #4 Linn Brooks summarized a recent sewage overflow at Lift Station #4 in Dowd Junction. Per regulations, the state was notified. The lift station is the oldest lift station in the District’s system and was already slated for repair in 2020. Staff is looking for ways to accelerate replacement. Lead and Copper Sampling Update Kailey Rosema updated the board on the required lead and copper sampling efforts. There was a good response to the original round of request letters, and half of the Authority’s samples were collected within the first three weeks of the sampling period. Kailey gave background on why homes with water softeners and whole-home filtration systems were ineligible for the sample pool. She explained that these systems mitigate “hard water” by removing the calcium and magnesium ions from water. Hard water buildup actually protects pipes from corrosion and poses no human health threat. In-house softeners and treatment systems are not encouraged because of the negative impacts they have to wastewater discharge limits and in-house pipe corrosion. Discussion ensued regarding communication of this information to the public. Colorado Basin Roundtable Update Diane Johnson discussed the Colorado Basin Roundtables and ongoing meetings of the four West Slope basin roundtables regarding the various phases of the Risk Study regarding how the state of Colorado would handle a Compact Call. Discussion ensued regarding the seniority of the Authority and District’s water rights, the state politics that would be involved in meeting a compact call, and various other considerations regarding these issues. Summary of Authority’s June 27, 2019, Board Meeting Page 2 of 2 Legislative Updates Diane Johnson reported that the Colorado Outdoor Recreation and Economy Act passed through the House Committee, clearing one major hurdle. The CORE Act calls for preservation of large amounts of public land. Diane and Kathryn Winn also discussed a push for a November ballot question that would allow voters to decide whether to fully appeal the Taxpayers Bill of Rights (TABOR). Changes to Meeting and Agenda Posting Requirements Kathryn Winn reported that on Aug.1 special districts can post meeting and agenda notices on their websites rather than physical posting in three locations plus at the district’s main office. Such changes will also require updates to the Authority and District bylaws, which will be presented to the boards in July. Kathryn suggested continuing the current physical posting methods for some months to communicate the change to the public. Proposed Purchase of the Biosolids Containment Facility Land Kathryn Winn updated on the District’s desire to purchase outright the BCF land, for which the District currently has a patent with the Bureau of Land Management which restricts the use of the land. Kathryn reported that the BLM is willing to work with the District but does not have a real estate specialist in place right now. Such a person will need to be hired before progress can be made to that end. Update on Climax, Eagle Mines Steve Bushong of Porzak Browning and Bushong LLP updated the board on Climax Mine and Eagle Mine matters. Steve said the Eagle Park Reservoir water quality is excellent; however, issues of ongoing concern surrounding Climax Mine include increasing levels of molybdenum from their operations and the potential to adversely affect water quality in the surrounding watersheds. Steve also discussed ongoing issues at Eagle Mine regarding maintenance, monitoring, and notifications as it relates to mine operations and how such issues can affect water quality in the Eagle River. He did acknowledge that progress is being made at Eagle Mine thanks to efforts by the Authority and District.