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TC Packet 08-27-2019 AVON TOWN COUNCIL MEETING AGENDA TUESDAY, AUGUST 27, 2019 MEETING BEGINS AT 5:05 PM AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK BRENDA TORRES AT 970-748-4001 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. SEGWAY DEMONSTRATION OLD TOWN HALL 1 LAKE STREET, AVON, CO 81620 4:00 PM AVON LIQUOR LICENSING AUTHORITY MEETING BEGINS AT 5:00 PM (SEE SEPARATE AGENDA ON PAGE 3) AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:05 PM 1. CALL TO ORDER AND ROLL CALL 5:05 2. APPROVAL OF AGENDA 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS 4. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA [AN INITIAL THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK. SPEAKER MAY REQUEST MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROVED BY A MAJORITY OF THE COUNCIL.] 5:10 5. BUSINESS ITEMS 5.1. PRESENTATION: EAGLE VALLEY BEHAVIORAL HEALTH (CHRIS LINDLEY, EAGLE VALLEY BEHAVIORAL HEALTH) (30 MINUTES) 5:15 5.2. PRESENTATION: VAIL SEGWAY AND PARK CABIN (20 MINUTES) 5:45 5.3. APPROVAL OF CONDITIONAL BILL OF SALE, AVON LANDING, VILLAGE AT AVON (TOWN ATTORNEY PAUL WISOR AND TOWN ENGINEER JUSTIN HILDRETH) (10 MINUTES) 6:05 5.4. APPROVAL OF DEVELOPMENT AGREEMENT WITH COLORADO WORLD RESORTS, LLC (PLANNING DIRECTOR MATT PIELSTICKER) (15 MINUTES) 6:15 5.5. APPROVAL OF LETTER REGARDING VILLAGE (AT AVON) WATER TANK CONSTRUCTION AND DEFERRING COMMUNITY PARK CONSTRUCTION (TOWN MANAGER ERIC HEIL) (10 MINUTES) 6:30 5.6. APPROVAL OF WATER TAP RATE INCREASES FOR THE UPPER EAGLE REGIONAL WATER AUTHORITY (TOWN MANAGER ERIC HEIL) (20 MINUTES) 6:40 5.7. PUBLIC HEARING: AVON APPLICATION TO AMEND MUNICIPAL CODE TO PERMIT COMMUNITY HOUSING IN THE INDUSTRIAL COMMERCIAL ZONE DISTRICT BY SPECIAL REVIEW USE (PLANNING DIRECTOR MATT PIELSTICKER) (30 MINUTES) 7:00 AVON TOWN COUNCIL MEETING AGENDA TUESDAY, AUGUST 27, 2019 MEETING BEGINS AT 5:05 PM AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO _______________________________________________________________________________ MEETING AGENDAS & PACKETS ARE FOUND AT: HTTP://WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, RECREATION CENTER, & AVON PUBLIC LIBRARY IF YOU HAVE ANY SPECIAL ACCOMMODATION NEEDS, PLEASE, IN ADVANCE OF THE MEETING, CALL TOWN CLERK BRENDA TORRES AT 970-748-4001 OR EMAIL BTORRES@AVON.ORG WITH ANY SPECIAL REQUESTS. 5.8. FIRST READING ORDINANCE 19-05 INCREASING PRIMARY RESIDENCE RETT EXEMPTION (TOWN MANAGER ERIC HEIL) (40 MINUTES) 7:30 5.9. FIRST READING ORDINANCE 19-07 ENACTING CAMPAIGN FINANCE REGULATIONS (DEPUTY TOWN MANAGER PRESTON NEILL) (15 MINUTES) 8:10 5.10. APPROVAL OF MINUTES FROM AUGUST 13, 2019 REGULAR COUNCIL MEETING (TOWN CLERK BRENDA TORRES) (5 MINUTES) 8:25 6. WRITTEN REPORTS 6.1. 2020 TOWN OF AVON COMMUNITY GRANT PROGRAM UPDATE (DEPUTY TOWN MANAGER PRESTON NEILL) 6.2. ABSTRACTS FROM AUGUST 20, 2019 PLANNING AND ZONING COMMISSION MEETING (PLANNING DIRECTOR MATT PIELSTICKER) 6.3. GIFT REPORTING – CIRCUS BELLA VIP RINGSIDE TICKETS AND DREAMS FLOAT SPA FLOTATION THERAPY SESSION (DEPUTY TOWN MANAGER PRESTON NEILL) 6.4. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT NELLY BURNS) 7. MAYOR & COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES) 8:30 8. ADJOURN 8:45 _________________________________________________________________________________________________________________________________________________________________________________________________________ *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: September 10, 2019 - PRESENTATION: MICHAEL CACIOPPO CONVENTION CENTER - AD HOC HEALTH AND RECREATION COMMITTEE INTERVIEWS - AD HOC FINANCE COMMITTEE INTERVIEW - PUBLIC HEARING: SECOND READING ORDINANCE 19-07 ENACTING CAMPAIGN FINANCE REGULATIONS - CAPITAL PROJECTS LONG-RANGE PLAN DISCUSSION - REVIEW AND DIRECTION ON EAGLE RIVER WATER QUALITY IMPROVEMENT EFFORTS - PARK RULE ENFORCEMENT, DOGS AT SPECIAL EVENTS, SPECIAL EVENT SECURITY AVON LIQUOR LICENSING AUTHORITY MEETING AGENDA TUESDAY, AUGUST 27, 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. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA [AN INITIAL THREE (3) MINUTE LIMIT ALLOWED TO EACH PERSON WISHING TO SPEAK. SPEAKER MAY REQUEST MORE TIME AT THE END OF THE THREE (3) MINUTES, WHICH MAY BE APPROVED BY A MAJORITY OF THE COUNCIL.] 4. PUBLIC HEARING LICENSE MODIFICATION: Transfer of Ownership: Applicant: Sabor Mazatlan, Inc d/b/a Sabor Mazatlan Location: 150 E Beaver Creek Blvd. #A-101 Type: Hotel & Restaurant New Owner: Juan Carlos Diaz 5. APPROVAL OF THE MINUTES FROM AUGUST 13, 2019 MEETING 6. WRITTEN REPORT 6.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (LIQUOR LICENSING AUTHORITY SECRETARY BRENDA TORRES) 7. ADJOURNMENT Transfer of Ownership Sabor Mazatlan, INC Page 1 LIQUOR LICENSING AUTHORITY REPORT To: Avon Liquor Licensing Authority From: Brenda Torres, Liquor Licensing Authority Secretary Meeting Date: August 27, 2019 Agenda Topic: PUBLIC HEARING Transfer of Ownership Application – Sabor Mazatlan, INC d/b/a Sabor Mazatlan ACTION BEFORE THE LOCAL LIQUOR LICENSING AUTHORITY The Town Council acting as the Local Liquor Licensing Authority is asked to consider the Transfer of Ownership Application for a Hotel and Restaurant Liquor License as submitted by: Applicant: Sabor Mazatlan, INC d/b/a Sabor Mazatlan / Juan Carlos Diaz Current Owner: Sabor Mazatlan, INC d/b/a Sabor Mazatlan / Jose Fortino Garcia Garibay New Owner: Juan Carlos Diaz New Manager: Alberto Contreras Morin Address: 150 E. Beaver Creek Blvd. #A-101 Type: Hotel and Restaurant License PROPOSED MOTION “I move to approve (or deny stating the reasons for denial) the Transfer of Ownership Application for Sabor Mazatlan, INC d/b/a Sabor Mazatlan.” BACKGROUND A transfer of ownership must be reported to and approved by the Local and State Licensing Authorities prior to any actual change of ownership. The Town Clerk may refer any ownership modification application to the Local Liquor Authority in the Town Clerk’s sole discretion. The applicable state and local license fees must accompany these applications. Both the state and town will issue new licenses for all transfers of ownership. The Town's Liquor Code states that "the burden of proof in an application for the transfer of an existing license shall be upon the applicant." The Avon Town Council acting as the Local Liquor Licensing Authority has the duty to conduct hearings and make findings of fact as to whether to grant or deny a transfer of ownership on an existing license. The Town Clerk, Special Counsel Pierce-Durance and Police Department handle the review of the liquor license applications administratively. In the case of a transfer of license, an investigation of the background of the parties is completed and a public hearing is set. The Liquor Code of Colorado provides that in making any decision, the Local Licensing Authority must consider the following before approving or denying the application: •Facts and evidence resulting from the investigation and any facts brought to the attention of the Authority. Transfer of Ownership Sabor Mazatlan, INC Page 2 •Any other pertinent matters affecting the qualifications of the applicant for the conduct of the type of business proposed. Requests for licenses may be denied for various reasons such as the applicant is not of good moral character; the applicant's character, record, or reputation is unsatisfactory; or the proposed outlet is within 500 feet of any school. DISCUSSION The Town Clerk and Special Counsel Pierce-Durance have reviewed the application materials and the Avon Police Department have completed the background checks on the principal of the company. The applicant applied for and received a temporary permit dated May 8, 2019 that allows them to operate for 120 days until the transfer of ownership application has been approved. Public notices were posted and published ten (10) days prior to the hearing date. The applicant, Juan Carlos Diaz, will be present for the hearing. Financial Implications: The transfer of ownership application fees have been submitted to the Town of Avon and the State fees will be forwarded with the application materials upon Local Liquor Authority approval. FINDINGS: A background investigation has been completed by the Colorado Bureau of Investigation and the report indicates that Mr. Diaz was arrested in August 26, 2010 for Failure to Appear for a Traffic charge. Action Options: Requests for licenses may be denied for various reasons such as the applicant is not of good moral character; the applicant’s character, record, or reputation is unsatisfactory; or the proposed outlet is within 500 feet of any school. State required documents on file with the Town Clerk: ✓ Lease between Sabor Mazatlan, INC and 150 E Beaver Creek, LLC ✓ Affidavit of Transfer and Statement of Compliance ✓ Articles of Organization ✓ Certificate of Good Standing ✓ Temporary Permit ✓ Individual History Records ✓ Avon Police Department and CBI background checks Attachments: ✓ Colorado Liquor Retail License Application (DR8404) ✓ Diagram of Premises AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES TUESDAY, AUGUST 13, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620 Page 1 1. CALL TO ORDER AND ROLL CALL Chairwoman Smith Hymes called the meeting to order at 5:01 p.m. A roll call was taken and Board members present were Amy Phillips, Jennie Fancher, Tamra Underwood and Jake Wolf. Board members Scott Prince and Chico Thuon were absent. Also present were Town Manager Eric Heil, Police Chief Greg Daly, Planning Director Matt Pielsticker, Transit director Eva Wilson, Deputy Town Manager Preston Neill and Secretary Brenda Torres. 2. APPROVAL OF AGENDA Board member Underwood moved to approve the agenda, as presented. Vice Chairwoman Phillips seconded the motion and the motion passed unanimously by Board members present. Board members Prince and Thuon were absent. 3. PUBLIC COMMENT No public comments were made. 4. PUBLIC HEARING SPECIAL EVENTS PERMIT 4.1. APPLICANT NAME: TOWN OF AVON EVENT NAME: AVON LIVE! EVENT DATE: AUGUST 21 & 28, 2019; 5:00 P.M. UNTIL 09:00 P.M. LOCATION: 1 LAKE STREET EVENT MANAGER: PRESTON NEILL PERMIT TYPE: MALT, VINOUS AND SPIRITUOUS LIQUOR Chairwoman Smith Hymes opened the public hearing and no comments were made. The Event manager, Preston Neill, and the Special Events Manager, Danita Dempsey, provided answers to several questions from Board members. Board member Thuon arrived at 5:05 p.m. Board member Fancher moved to approve the Special Events Permit application for the Avon LIVE! special event on August 21 & 28, 2019. Board member Wolf seconded the motion and the motion passed unanimously by Board members present. Board member Prince was absent. 4.2. APPLICANT NAME: TOWN OF AVON EVENT NAME: COLORADO CLASSIC EVENT DATE: AUGUST 23, 2019; 11:30 A.M. UNTIL 04:00 P.M. LOCATION: 1 LAKE STREET EVENT MANAGER: PRESTON NEILL PERMIT TYPE: MALT, VINOUS AND SPIRITUOUS LIQUOR Chairwoman Smith Hymes opened the public hearing and no comments were made. The Event manager, Preston Neill, and the Special Events Manager, Danita Dempsey, commented about this event. AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES TUESDAY, AUGUST 13, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 81620 Page 2 Board member Fancher moved to approve the Special Events Permit application for the Colorado Classic special event on August 23, 2019. Board member Wolf seconded the motion and the motion passed unanimously by Board members present. Board member Prince was absent. 5. APPROVAL OF THE MINUTES FROM JUNE 25, 2019 MEETING Board member Underwood moved to approve the minutes from the June 11, 2019 Liquor Licensing Authority Meeting. Vice Chairwoman Phillips seconded the motion and the motion passed unanimously by Board members present. Board member Prince was absent. 6. WRITTEN REPORT 6.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (LIQUOR LICENSING AUTHORITY SECRETARY BRENDA TORRES) 7. ADJOURNMENT There being no further business to come before the Board, Chairwoman Smith Hymes adjourned the Liquor Licensing Authority meeting. The time was 5:16 p.m. RESPECTFULLY SUBMITTED: ____________________________________ Brenda Torres, Secretary APPROVED: Sarah Smith Hymes ___________________________________ Amy Phillips Jake Wolf Chico Thuon Jennie Fancher Scott Prince Tamra Underwood AVON LIQUOR LICENSING AUTHORITY WRITTEN REPORT To: Avon Liquor Licensing Authority From: Brenda Torres, Liquor Licensing Authority Secretary Date: August 27, 2019 Topic: REPORT ON RECENT ADMINISTRATIVE APPROVALS SUMMARY: The Town’s local liquor licensing regulations allow for administrative review and approval of routine liquor license applications, including: (1) Renewals, (2) Modification of Ownership, (3) Modification of Managers, and (4) Special Event Permits for events already approved by the Town Council. Requirements for administrative approval include that the application is complete, there is no new criminal activity on the background and there are no liquor code violations during the last year. Renewals and Special Event Permits require notice to be posted for seven days and require the Town Clerk to accept comments and/or requests for a public hearing before the Avon Town Council. In all cases, the Town Clerk has the discretion to refer the application to the Avon Town Council. The Town Clerk is required to report administrative approvals, which is the reason for this written report. Dating back to August 13, 2019, the Town has received one Liquor Special Events Liquor Permit and three Renewal Applications that have met all the requirements for administrative review and approval and were ultimately approved by the Town Clerk. No comments, complaints, or request for hearings were received. They are as follows: Special Event Permit: Applicant: Eagle Valley Humane Society Event: Major League Triathlon Dates: September 6, 2019 4:00 p.m.-9:00 p.m. September 7, 2019 12:00 p.m. -9:00 p.m. Location: Nottingham Park Manager of Event: Char Gonsenica Renewals: Applicant: Dillon Companies, LLC d/b/a City Market #26 Location: 0072 East Beaver Creek Place Type: Fermented Malt Beverage Off (city) Manager: Jeff Gentilini Applicant: Suncor Energy Sales, Inc d/b/a Shell Location: 0047 Nottingham Road Type: Fermented Malt Beverage Off (city) Manager: Anakut Loya Applicant: Y & Z 2, LLC d/b/a Nozawa Sushi & Kitchen Location: 240 Chapel Place #B-115 Type: Hotel & Restaurant Manager: Yong-Hu Yuan Page 1 of 1 TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Greg Daly, Chief of Police Meeting Date: August 27, 2019 Agenda Topic: PRESENTATION BY DR. CHRIS LINDLEY, EXECUTIVE DIRECTOR OF EAGLE VALLEY BEHAVIORAL HEALTH SUMMARY Honorable Mayor and Council, Dr. Chris Lindley, Executive Director of Eagle Valley Behavioral Health will present on the amazing steps and collaborations that have recently taken place by many individuals and organizations and on the vision for change to address the behavioral health crisis in Eagle County. BACKGROUND The Vail Health Board formed a new nonprofit “Eagle Valley Behavioral Health” to address the lack of resources in behavioral health in Eagle County. Vail Health has committed to provide $60 million in direct funding and through in-kind services over the next 10 years to behavioral health. In addition, the Vail Health Foundation has a target to raise up to $200 million for behavioral health over the next ten years. Dr. Chris Lindley has become a champion for behavioral health change in Eagle County. Until recently, Dr. Lindley was the Eagle County Director of Public Health. Prior to Eagle County, Dr. Lindley was the prevention services director for the Colorado Department of Public Health and Environment. He directed Colorado’s wellness, workplace and public health prevention strategies; supported research, educational campaigns, policy efforts and federal/state initiatives; and built strong coalitions with public health professionals, policymakers, state government partners, residents and key stakeholders. Dr. Lindley is former Denver Firefighter. Dr. Lindley also served as the unit commander and environmental science officer of preventive medicine in the 793rd Medical Detachment of the US Army Medical Reserves. Dr. Lindley received a presidential commendation and the Bronze Star Medal for saving multiple lives during a suicide bomber attack that demanded the treatment of 91 injured soldiers while leading troops in Iraq. Dr. Lindley holds a Master of Public Health, a Master’s in the Science of Epidemiology, a Master of Business Administration and a PhD in Epidemiology. FINANCIAL Currently the Town of Avon is contributing $19,500 for behavioral health 24/7 crisis response to the Hope Center of Eagle Valley via the police department’s 2019 budget. ATTACHMENT Copy of PowerPoint presentation. ### •Nearly 1 in 4 (226) local 7th and 8th graders seriously considered suicide in 2017. •16% (157) of local 7th & 8th graders have made a suicide plan. •Eagle County averages nearly a suicide attempt per day (324 in 2018). •Colorado ranks 43rd for mental health in the U.S. (2018 CDPHE Assessment). •Suicide is the leading cause of death for Coloradans aged 10 to 24. 2 THE CURRENT SYSTEM IS FAILING ANXIETY & DEPRESSION - ER VISITS 3 465% increase in 4 years ALCOHOL / INTOXICATED - ER VISITS 4 332% increase in 4 years SUICIDES IN EAGLE COUNTY 5 *2019 data as of 8/8/2019 Healthy Kids Colorado Survey (7th & 8th)2011 2013 2015 2017 Felt sad or hopeless for two or more weeks 19%23%25%31% Seriously considered suicide 9%12%17%23% Made a suicide plan 5%9%13%16% Attempted suicide 4.8%6%6.5%8.5% OUR 7TH & 8TH GRADERS 6 SUBSTANCE ABUSE IN EAGLE COUNTY Alcohol is the substance of choice (over opioids) 23% of adults report binge or heavy drinking. 25% of high school students report binge drinking. 29% of driving deaths involved alcohol impairment. 37% of high school students had at least 1 drink of alcohol in last 30 days. 7 County Health Rankings, BRFSS, 2016; FARS 2013-2017; Healthy Kids Survey 2017. YOUTH NICOTINE & VAPING Colorado rates of vaping highest in the country; Eagle County higher than Colorado average. 39% have used vaping products in the past month. 57% have tried vaping products. 50% Vapers bought while underage from a store. 61% Smokers bought while underage from a store. 8 EAGLE COUNTY DEMOGRAPHICS •Approximately 30% of adults & over 50% of youth are LatinX. •Over 36% of students are English language learners. •30% of residents speak other than English at home. •18% of residents are foreign-born. BEHAVIORAL HEALTH DOES NOT DISCRIMINATE To serve all, we must address the following within our LatinX community ●Lack of inclusivity - within the community, and organizational support systems. ●Organizations and providers have limited cultural awareness or competence. ●Historical and well-founded lack of trust of providers, care settings, and traditional institutions. ●Supports/solutions tend to be clinical whereas non-clinical approaches are often favored (e.g. preferring to seek guidance from a peer figure). ●Stigma around mental health, compounded by machismo culture and religious beliefs. ●Large wealth disparities... Local Factors •Lack of mental health resources (50% of CO avg.) •Culture of “rugged individualism” •Access to firearms •“Paradise Paradox” - geography doesn’t fix problems •Disparity between wealthy & working class •Transient nature means lack of deep social attachments and intergenerational relationships: people have moved away from their natural support system •Resort town party culture & substance abuse •Altitude (studies by Univ. of Utah in 2014 & 2018) –Reduction in serotonin levels (regulates mood) –Dopamine increase (risk taking/pleasure seeking) –Amplification of bipolar disorder 11 THE TIPPING POINT: Why Is This Happening? National Factors •Opioid crisis & substance abuse •Smartphones & social media •Political climate & 24/7 news •Debt and cost of living increases •Provider & funding shortage Put the patient 1st! Grassroot community effort, coordinated across all partners 12 SO WHAT DO YOU DO? Gap Analysis: across the BH continuum of care. Prevention Outreach, education, screening, bolstering protective factors, and decreasing risk factors Intervention Crisis response, school-based and community services Treatment Inpatient, outpatient, and post-crisis services Recovery After-care and recovery support Provider Collaboration & Connection to Physical Health Data, Evaluation, Best Practices & Improvement P1: Insufficient parental support and coaching P2: Inconsistent screening & follow-up P3: Limited community/social connectedness (pro-social connections, support groups) P4: No youth/community centers I1: Lack of integrated BH facility capacity I2: Inadequate funding to support our mobile crisis response needs I3: Inadequate funding for school-based services SE1: No single point of contact for available services, referral, escalation and follow-up SE2: No capacity monitoring system T1: Lack of full continuum of substance use (SU) services T2: Lack of full continuum of Mental Health (MH) services T3: Limited MH or SU providers T4: Lack of timely post crisis follow-up T5: Inadequate funding for jail-based services R1: Lack of recovery supports for people in or completing SU/MH treatment SE3: Data systems do not enable data sharing SE4: Continuous improvement is not formalized SE5: No local accountability/oversight SE7: The community climate reinforces stigma and isolation SE6: Service funding and payment mechanisms are poorly understood13 UNDERSTAND THE PROBLEM KEY ACCOMPLISHMENTS & COMMUNITY WINS 14 MISSION Lead community collaboration to transform the Eagle Valley’s behavioral health system. 15 EAGLE VALLEY BEHAVIORAL HEALTH VISION Imagine a day in this Valley when we spend as much time, effort and resources on our behavioral health as we do our physical health. 16 EAGLE VALLEY BEHAVIORAL HEALTH GOVERNANCE EVBH Board of Directors •Jeff Shroll (Appointed by position) •Will Cook (Appointed by position) •Mike Imhof (VH Appointed) •Doris Kirchner (VH Appointed) •Amanda Precourt (Community Member) •Steven Schlozman MD, Psychiatrist/Harvard/Mass Gen (Outside expert) •Matt Jones (Business Community) •Nicole Greener -East West Partners (Business Community) •Magdalena King - Antlers (LatinX leader) •Dan Godec (Patient Family Advocate) •TBD (Community Member) •TBD (Community Member) EVBH Medical Advisor •Marshall Thomas (Adult Psychiatrist) 17 EVBH Advisory Council •Bright Future Foundation - Casey Wolfington •Colorado Mountain Medical - Ada Borg •Eagle County Health Service District - Chris Montera •Eagle County Human Services - Kendra Kleinschmidt •Eagle County Public Health - Dana Erpelding •Eagle County School District - Melisa Rewold-Thuon •Eagle County Sheriff - James VanBeek •Eagle River Youth Coalition - Michelle Stecher •Eagle Valley Behavioral Health - Chris Lindley (Chair) •LatinX Community - Sonia Mejia •Hope Center - Michelle Muething •Law Enforcement - Greg Daly •Mind Springs - Sharon Raggio •Mountain Family - Ross Brooks •Pastors/Church - Ethan Moore •Patient/Family Advocate - John Shipp •Regional Accountable Entity (RAE) - Meg Taylor •SpeakUp ReachOut - Erin Ivie •Vail Resorts - Corey Levy •Youth Engagement - Gerry Lopez ONE VOICE 18 10-YEAR STRATEGY 19 INITIATIVES 1. Cross-Functional BH Facility (CSU, Social Detox, Respite, 24/7 walk-in) 2. Provider Access and Capacity 3. System Coordination and Transformation- (Eagle Valley Behavioral Health) 4. Prevention and Education 5. Crisis Response and Transition Services 6. School-Based Services COST: $121-218 million depending on provider count (state avg. or top 5 states) VAIL HEALTH COMMITMENT $60 million commitment over 10 years •$30 million for system priorities (approx. $3M annually) •$12 million for construction of a Cross Functional BH Facility •$11 million for in-kind staffing support (admin/marketing/philanthropic) •$7 million for 501c3 staffing and operations 20 CROSS-FUNCTIONAL BH FACILITY 21 NEXT 6 MONTHS Aug-Oct: •Summit BH Facility design plans to the County •Further develop initiative work plans •Formation of additional workgroups •Countywide nicotine tax, T21, and retail licensure •Seating the Board of Directors •Further develop fundraising strategy •Hiring of EVBH staff •Hiring of CMM Behavioral Health staff •Campaign and Website launch (www.EagleValleyBH.org) Nov-Jan: •Funding request opportunities •Allocation of top tier priority funds22 COLLECTIVE IMPACT WORKS MANY EARLY WINS 23 CRISIS RESPONSE – THE HOPE CENTER •Launched Oct. 2018 ▪1,200 interactions (Oct - May) ▪74% (68) reduction in transports to Vail Health ▪Average Vail Health bill for mental health $26,363 ▪ 24 •7 school-based clinicians (Nov. 2018) ▪2,930 student interactions 25 SCHOOL-BASED CLINICIANS EAT CHAT PARENT | 2018-19 Eagle River Youth Coalition ●Focus on mental health in our youth ●Goal is to break mental health stigmas, create conversation, provide helpful information to improve mental health ●1,462 attendees ●12 events (6 topics) ○Your Kid’s Brain on Tech ○Cyberbullying & Sexting ○‘LIKE’ documentary ○Resiliency & Self Esteem ○Your Child & Anxiety ○Teen Substance Abuse 26 EAT CHAT PARENT | 2018-19 ●88% are more knowledgeable about the subject matter after the presentation (41% prior to presentation) ●79% are more aware of resources and organizations to access for help (44% prior to presentation) ●98% recognize mental health as an important aspect of overall health (96% prior to presentation) ●93% are willing to discuss mental health with friends family (82% prior to presentation) ●96% can recognize one healthy behavior to adopt to improve mental health (81% prior to presentation) 27 EAT CHAT PARENT | 2019-20 SCHEDULE 28 Date:Speakers & Affiliation Topic September 10-11 Dr. Paul Jenkins, Ph.D.Positive Parenting/Emotional Intelligence October 8-9 Alex Annacone, CU Depression Center Self-Care Interactive Workshop November 5-6 Dr. Janina Farinas, Ph.D., L’Ancla and La Cocina Olga Wilkins, FRC, Gerry Lopez, ERYC Therapeutic vs. Therapy en Espanol January 14-15 Elizabeth Jeglic, Ph.D. tentative Healthy Relationships, Sexual Assault March 3-4 Dr. Steven Schlozman, MD Anxiety/Depression •1,177 people took the pledge –839 students –204 parents –87 teachers/staff –47 community members 29 DISCONNECT TO RECONNECT | MAY 13-17 30 YOU ARE NOT ALONE - PRINT 31 YOU ARE NOT ALONE - DIGITAL Spanish ads: 525 clicks May 1 - June 14 English ads: 306 clicks May 1 - June 14 EAGLEVALLEYBH.ORG | LAUNCH SEPT 32 ONLINE THERAPIST FINDER TOOL 33 34 Empowering neighborhoods to advocate for themselves. Los Corazones Reinan / The Hearts Reign A community group dedicated to raising mental health awareness, and promoting mental health wellness in the hispanic community. LATINX GRASSROOTS INITIATIVES 35 Mental Health First Aid in Spanish: 28 community members were certified. Next trainings expected to have 200 attendees: ○August - Edwards ○September - Eagle and Avon ○October- Eagle Vail and Dotsero ○November - Edwards and Dotsero ○December - Eagle 8 Additional bilingual trainers certified. LATINX GRASSROOTS INITIATIVES 36 ●QPR Suicide Prevention in Spanish Speak Up Reach Out: 20 spanish-speakers trained. ●Stress Reduction Techniques in Spanish ○Zumba ○Meditation ○Yoga ○Swimming ○Mountain Biking ○Stand-Up Paddle boarding ●Community Support Group Charlas del “Grupo Hispano”: monolingual Spanish-speaking group of 20 parents lead by Neighborhood Navigator that addresses common topics related to mental health issues. LATINX GRASSROOTS INITIATIVES 37 ●Women mental health “Promotoras de Salud”: self-help Workshops in Spanish “Nuestros Cuerpos Nuestras Vidas” by Boston Women’s Health Book Collective facilitated by The Hearts Reign /Los Corazones Reinan and sponsored by Neighborhood Navigators. ●Valores de Familia Project: Elementary school children and their families come together to learn more about family values. ●Men Mental Health Bilingual Workshops ●Grace Alliance Mental Health (TX) UPCOMING LATINX INITIATIVES 38 MIRA is a integrated and culturally relevant approach to resource connection and service delivery. It plays an important role in recognizing and referring people to resources such as food, medical, dental, educational opportunities, child care, housing, financial literacy, and more. Mental health being addressed by: •Helping the community understand mental health symptoms and reduce stigma. •Create/strengthen the referral system with behavioral health providers. •Developing a way to capture quantitative and qualitative data about mental health challenges and opportunities for solutions specific to the Latinx community. Most of all, MIRA is building TRUST within our Latinx community. MOBILE INTERCULTURAL RESOURCE ALLIANCE 39 SUPPORT VIA MIRA BASED ON COMMUNITY NEED More info and live data on the MIRA Data Dashboard To date, over 2,000 people have been supported by MIRA, 90% of whom are Latinx. COUNTY MARIJUANA TAX ALLOCATIONS TO DATE School Based Mental Health Counselors (Addition of 4 counselors in ECSD, 1 in RF)$400,000 Mind Springs (To provide jail based counseling services in Jail)$80,000 Hope Center (Expanding all crisis response services in Eagle County)$100,000 Mind Springs (Support for Rapid Response Treatment Team)$114,367 Eagle River Youth Coalition (Support 10 bilingual Eat Chat Parent workshops )$21,600 Valley Settlement (Increase access to bilingual therapists in the Roaring Fork Valley)$20,000 Speak Up Reach Out (Support suicide prevention training activities)$50,000 The Buddy Program (Support mentoring programs for at-risk youth)$15,000 Bright Future Foundation (Coordinate doctoral students to intern & offer free services)$15,000 Early Childhood Partners (Additional counselor support for 20 early childhood classrooms)$49,260 MIRA-Our Community Foundation (Add mental health services)$60,000 School Based Mental Health Counselors (Additional counselor in RF Middle School)$80,000 TOTAL FUNDING TO DATE $1,005,227 40 #1: BUILD A CROSS FUNCTIONAL BH FACILITY Strategy #1: Build an integrated cross-functional behavioral health facility within the community to include a Crisis Stabilization Unit (CSU), Social Detox, Respite Care and 24/7 Walk-in Services Funding Required: One Time Costs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6-10 10 Year Cost w/ Escalator Capital Construction $6,000,000 $6,000,000 $0 $0 $0 $0 $12,000,000 Annual Operational Cost $0 $0 $0 $0 $0 $0 $0 Subtotal $ - $ 6,000,000 $ 6,000,000 $ -$ -$ -$ -$ 12,000,000 #2: EXPAND BH PROVIDER ACCESS & CAPACITY Strategy #1: Increase behavioral health workforce access and capacity to bring Eagle County in line with recommended number of providers per capita resulting in decreased waiting times and increased availability. Strategy #2: Provider scholarship, tuition, and student loan incentives to bring providers to the area. Strategy #3: Increase access and funding for telepsychiatry. Strategy #4: Develop branding and messaging to encourage employment and recruitment. Strategy #5: Pursue 100% screening during primary care visits with common protocols. Strategy #6: Increase the number of jail-based behavioral health providers. Strategy #7: Support creation of a data system for jail to integrate into other collection systems. #2: EXPAND BH PROVIDER ACCESS & CAPACITY #3: DEVELOP SYSTEM COORDINATION/TRANSFORMATION Eagle Valley Behavioral Health (EVBH) will lead community collaboration in transforming the Eagle Valley’s behavioral health system. EVBH will support the behavioral health community through shared responsibility, accountability and philanthropic opportunity. EVBH will ensure the creation of the necessary data systems and processes to inform this coordination and transformation. Strategy FTEs One Time Costs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6-10 10 Year Cost w/ Escalator Total Strategy #1: EVBH Staffing and Operations (Funded by Vail Health)6 $ -$ 888,000 $ 927,950 $ 940,017 $ 917,431 $ 960,552 $ 5,528,935 $ 9,180,010 Total Strategy #2: In-kind support from Vail Health staff (marketing, development, IT, finance, etc.)$ -$ 2,075,000 $ 1,855,000 $ 1,485,000 $ 1,055,000 $ 755,000 $ 3,775,000 $ 11,000,000 Total Strategy #3: Create comprehensive/unified data system $ 4,000,000 $ 270,000 $ 220,000 $ 120,000 $ 120,000 $ 120,000 $ 600,000 $ 5,450,000 Total Initiative #3 6 $ 4,000,000 $ 3,233,000 $ 3,002,950 $ 2,545,017 $ 2,092,431 $ 1,835,552 $ 9,903,935 $ 25,630,010 #3: DEVELOP SYSTEM COORDINATION/TRANSFORMATION #4: EXPAND PREVENTION & EDUCATION EFFORTS Multiple strategies centered on increasing the overall volume of general behavioral health education available in the the valley, encouraging prosocial connections, and shifting the community climate to discourage stigma and isolation. Strategy #1: Reduce mental health stigma through community awareness campaigns, parent education programs and faith-based initiatives. (In both Spanish and English) Strategy #2: Reduce norming of substance abuse through community awareness campaigns including awareness of medication safe disposal procedures. (In both Spanish and English) Strategy #3: Prevention skills development: increase protective factors, decrease risk factors skills development programs specific to youth, adults, parents and the workplace. (In both Spanish and English) Strategy #4: Civic engagement (youth engagement model). (In both Spanish and English) Continued on next slide Strategy #5: Improving social connections by supporting the marketing and PR of pro-social events across the valley and linking hard to reach communities via transportation, translation services, etc. Strategy #6: Improve social determinants of mental health through community education and ensuring equity and cultural appropriateness across all prevention initiatives Strategy #7: Increase early childhood services including family centered therapies and the addition of child-care based early childhood mental health providers. Strategy #8: Create and administer marketing strategies to support all education and awareness programming and promotion of prosocial events. #4: EXPAND PREVENTION & EDUCATION EFFORTS #4: EXPAND PREVENTION & EDUCATION EFFORTS Strategy FTEs One Time Costs Year 1 Costs Year 2 Year 3 Year 4 Year 5 Years 6-10 10 Year Cost w/ Escalator Total Strategy #1: Reduce mental health stigma 1 290,000 273,000 266,090 234,273 227,551 1,190,474 2,481,388 Total Strategy #2: Reduce norming of substance abuse 1 $ 165,000 $ 168,000 $ 171,090 $ 149,273 $ 152,551 $ 1,315,474 $ 2,121,388 Total Strategy #3: Prevention skills development: increase protective factors, decrease risk factors 0 $ 330,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 $ 1,330,000 Total Strategy #4: Civic engagement 0 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 $ 500,000 Total Strategy #5 Improving social connections 0 $ -$ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 $ 100,000 Total Strategy #6: Improve social determinants of mental health 0 $ -$ 25,000 $ 25,000 $ 25,000 $ 15,000 $ 15,000 $ 75,000 $ 180,000 Total Strategy #7: Early childhood services 5 $ -$ 295,000 $ 449,500 $ 533,635 $ 545,294 $ 557,303 $ 2,979,641 $ 5,360,373 Total Strategy #8: Create and administer marketing strategies 0 $ 1,140,000 $ 865,000 $ 690,000 $ 525,000 $ 375,000 $ 340,000 $ 1,700,000 $ 5,635,000 Initiative #4 Total FTE and Funding 7.00 $1,470,000 $1,800,000 $1,765,500 $1,680,815 $1,478,840 $1,452,405 $8,060,589 $17,708,149 #5: INTEGRATE CRISIS RESPONSE AND TRANSITION SERVICES Strategy #1: Provide additional personnel to augment our existing EMS staff with additional paramedics; add enough behavioral health professionals to ensure they are available 24/7 to accompany law enforcement and 911 EMS or Community Paramedics on calls and provide follow-up services to maintain stability and reduce recidivism. Strategy #2: Increase support for stabilization and referral services creating a closed-loop transition to treatment for people experiencing crisis. Strategy #3: Support the infrastructure of the crisis response and transition services team by providing office space and additional support staffing. Strategy #4: Provide additional crisis transition providers to assist in a seamless transition from crisis services to outpatient services. #5: INTEGRATE CRISIS RESPONSE AND TRANSITION SERVICES Strategy FTEs Upfront Costs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6-10 10 Year Cost w/ Escalator Total Strategy #1: Crisis co-response staffing 7 $ 680,000 $ 700,400 $ 721,412 $ 743,054 $ 765,346 $ 4,185,226 $ 7,795,438 Total Strategy #2: Stabilization and referral services 1 $ 100,000 $ 103,000 $ 106,090 $ 109,273 $ 112,551 $ 615,474 $ 1,146,388 Total Strategy #3: Infrastructure $ 50,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 $ 750,000 $ 1,550,000 Total Strategy #4: Crisis transition providers 2 $ 100,000 $ 203,000 $ 209,090 $ 215,363 $ 221,824 $ 1,213,022 $ 2,162,299 Initiative #5 Total FTE and Funding Request 10 $ 50,000 $ 1,030,000 $ 1,156,400 $ 1,186,592 $ 1,217,690 $ 1,249,720 $ 6,763,722 $ 12,654,124 Licensed Provider reimbursement/recovery: % of licensed provider costs: to be determined via covered benefit analysis $ (176,000)$ (201,280)$ (207,318)$ (213,538)$ (219,944)$ (1,202,744)$ (2,220,825) #6: EXPAND & ENHANCE SCHOOL BASED BH SERVICES Increase the number of school based clinicians each year in order to serve all Eagle Valley middle and high schools. Strategy FTEs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6-10 10 Year Cost w/ Escalator Total Strategy #1: Increase number of school-based clinicians to serve all Eagle River Valley middle and high schools 17 $ 720,000 $ 1,360,000 $ 1,400,800 $ 1,442,824 $ 1,486,109 $ 8,126,652 $ 14,536,384 Total Strategy #2: Add an additional middle school clinician to each of the MS schools 6 $ -$ -$ 480,000 $ 494,400 $ 509,232 $ 2,784,689 $ 4,268,321 Total Strategy #3: Expand school prevention specialists 2 $ 160,000 $ 164,800 $ 169,744 $ 174,836 $ 180,081 $ 984,759 $ 1,834,221 Subtotal Initiative #6 Total FTE and Funding Request 25 880,000 1,524,800 2,050,544 2,112,060 2,175,422 11,896,100 20,638,926 Cost Recovery - School District: 50% Contribution $ (440,000)$ (762,400)$ (1,025,272)$ (1,056,030)$ (1,087,711)$ (5,948,050)$ (10,319,463) Initiative #6 Total FTE and Funding Request 25 $ 440,000 $ 762,400 $ 1,025,272 $ 1,056,030 $ 1,087,711 $ 5,948,050 $ 10,319,463 Q&A | DISCUSSION 52 970.748.4004 eric@avon.org TO: Honorable Mayor Smith Hymes and Council FROM: Eric Heil, Town Manager RE: Vail Segway Tours DATE: August 21, 2019 SUMMARY: Seth Valentine from Vail Segway Tours is presenting a proposal to conduct Segway tours on Avon recreation trails. Attached are materials as presented to the Vail Town Council. MUNICIPAL CODE OVERVIEW: Segway use is currently not permitted on Avon recreation trails, sidewalks, or pedestrian plazas. Avon Municipal Code 9.40.050(6) states that no commercial activities may occur in any park without a permit or license from the Town of Avon. Avon Municipal Code sections 9.04.130(b) and 9.40.20 grants the Town Manager authority to make rules and approve permits for uses on Town property. Segway tours would be a new use on Avon trails. Due to the proposal to establish regular Segway tours, use Town facilities for storage and charging of Segways, and potential conflicts with other recreational users, I have added this presentation to the Council meeting for direction. OPERATION CONSIDERATIONS: Mr. Valentine has encountered and addressed a variety of issues and concerns in Vail where he has operated Vail Segway Tours for the last couple years. The likely route for Segway tours in Avon would most likely include portions of the recreational trail in Nottingham Park and the riverfront trail between Avon Road and West Beaver Creek Blvd. If Council desires to allow Segway tours in Avon, we can probably accommodate the need for storage and charging stations in the 351 Benchmark Building (old fire station ground floor). Public use and enjoyment of Nottingham Park has increased substantially over the last couple years and the Town has experienced conflicts with over use and multiple incompatible activities (e.g. frisbee golf). Council should weigh the benefits of a visitor activity offering and attraction with the current use and enjoyment of Nottingham Park by the general public. RECOMMENDATION: If Council desires to permit Segway tours in Avon, then I would recommend that I proceed with a permit that establishes limits for the size of groups and the number of groups per day, restricts tours to non-special event times to avoid conflicts with special events, and allows for a permit termination process if there are complaints or conflicts. I would recommend that any Segway tour operations be limited to one tour operator at this time and limited to a one year trial period. If Council believes that Segway tours are not compatible with Nottingham Park and Town trails, then I will take no further action to permit Segway tours in Avon. Thank you, Eric “The only authorized, guided Segway tour provider in Colorado.” VAIL SEGWAY PRE-LAUNCH PLANNING: ▪Emailed letter of intention to the city manager (March 2017).  ▪Contacted Police/Code Enforcement to ensure we followed rules/areas where we were allowed to ride (June 2017).  ▪Applied for Business License. ✓The TOV issued us a business license with full knowledge of our proposed operation, i.e they said “yes, you can do that here.” ▪Authorized location ✓Vail Segway has operating standards that must be met for guest training, safety, machine maintenance, etc. •We never rent out our machines. •We never exceed maximum group size of six people per guide. ✓Level-2 Segway technicians on staff - machines are maintained on a regular service schedule. ✓All guides are Segway-certified training administrators.   ▪Our tours provide ✓Interesting, historical and educational ride through Vail. ✓Recommendations for shopping, dining and other area activities. ✓Use up to 2 guides (one lead and one follow) for each tour – based on group needs. WHAT IS VAIL SEGWAY? WHAT IS VAIL SEGWAY? ▪Seth Valentine – Day-to-day operator ✓Passionate and experienced tour guides with years of experience. ✓Segway-certified training administrators. ✓Level-2 Segway technicians – for daily maintenance. ▪Jim and Candace Callan - Owners ✓With help and guidance of long time friends Steve and Kim Schultz - successful Segway Tour Operators on Hilton Head Island, SC. ✓Pledged to donate 10% profits to rare cancer research. ✓Future plans may include expanding into retail offering unique items to the area. WHO IS VAIL SEGWAY? ▪We endeavor to anticipate and mitigate risk whenever possible. ▪We are always adjusting our operation to maximize safety. ▪We teach our guests the proper rules and guide them carefully and in good order. ▪Each group is evaluated before going on the path, and we turn around if we feel it is unsafe, i.e. we stick to the green runs with them. ▪We have never had an incident with a pedestrian or cyclist. A COMPARISON:  The following are rented with little regard to the competence of the rider. ✓E-bikes, mountain bikes, skis/snowboards ▪Extensive training is not provided in the proper use of these items with no limit to group size.  SAFETY IS OUR #1 PRIORITY  Reviewed July, 2017: “Seth and Spencer spent a good 45 mins to an hour just going over basic Segway operation and teaching us proper use and safety techniques!” ▪The machine operates easily in pedestrian areas by design. ▪Maximum speed possible is 12.5 mph, difficult to reach for any sustained period of time. (Vail town limit is 15mph) ▪When going down hill maximum speed is automatically reduced. ▪Unlike bikes, Segways can remain motionless with ease ▪Highly visible = safer (hunters wear orange, road crews wear reflective vests,etc…).  MACHINES DESIGNED FOR PEDESTRIAN AREAS 2.75 Foot width SAFTEY STUDIES •The Segway® Personal Transporter (PT) has been evaluated by four independent agencies representing interests from around the world. •U.S. Department of Transportation/Federal Highway Administration •Centre for Electric Vehicle Experimentation in Quebec (CEVEQ) •German Federal Board for Road Traffic •Victoria Transport Policy Institute NO IMPACT •The first phase of the two-phase report detailed information discovered during the evaluation of motorized personal transportation devices (MPTD) specifically, the ergonomic, operational and technical aspects of the devices. •Findings included that the Segway PT was very stable and gave users a feeling of being in control. Also, Segway PTs compared favorably to other types of devices and were far superior in the area of stability as compared to bicycles and mopeds. •Lastly the report noted that the Segway PT could meet a large number of mobility requirements for a broad market, could facilitate transfers to other forms of transportation, and serve as an alternative to automobiles. Publish date: May 2004 Centre for Electric Vehicle Experimentation in Quebec (CEVEQ) First Phase Pilot Project for Evaluating Motorized Personal Transportation Devices NO IMPACT… •The Second Phase of the two-phase report detailed use of the Segway PT by 143 participants who rode more than 9,000 total kilometers on sidewalks, paths, and roadway shoulders, in three major cities located in the Province of Quebec. The report noted that no incident or serious injury, nor any Segway PT/pedestrian collision or physical interference, was reported during the evaluation. •Upon completion the study “Recommendations” indicate that Segway PTs should be allowed to operate on urban pedestrian areas and that such use will have little impact on user safety and still less on the safety of pedestrians, cyclists, motorists and other walkway users. Publish date: April 2006 Centre for Electric Vehicle Experimentation in Quebec (CEVEQ) Second Phase Pilot Project for Evaluating the Segway HT in Real Conditions MADE FOR PEDESTRIAN AREAS AND BIKE PATH •The three-month study was conducted by the German government in conjunction with the Ministry of Internal Affairs, Ministry of Commerce of the Saarland, Saarbruken Police Department, and Municipal Of Gice of Neunkirchen. Results for braking, steering and general handling of the device were very favorable. •The study also reports that Segway PTs are best suited for bicycle lanes and pedestrian traffic areas. Publish Date: October 2005 German Federal Board for Road Traffic Segway in Public Spaces FUNCTIONALITY •The study was undertaken to clarify the operational characteristics of both motorized and non-motorized transportation. Data was collected to obtain physical dimensions, turning capabilities, acceleration, speed and stopping distance of these devices. The Segway PT and its rider were found to have: • the second shortest braking distance • highest sight lines • one of the smallest footprints • quickest perception reaction time. •The Segway PT met or exceeded all recommendations made by the American Association of State Highway & Transportation Officials (AASHTO) Guide to the Development of Bicycle Facilities. Publish Date: July 2004 U.S. Department of Transportation/Federal Highway Administration Characteristics of Emerging Road Users & Their Safety SAME IMPACT AS JOGGERS TO PEDESTRIAN AREAS •This study researched the use of various personal mobility devices such as electric scooters, powered wheelchairs and Segway PTs on non-motorized infrastructure including sidewalks and bike lanes/paths. Overall the study found that Segway PTs would have medium impact or risk to others (namely pedestrians), the same which was found true of joggers and runners. •As a comparison, bicycles were found to have medium to large impact or risk to others. Publish Date: October 2005 Victoria Transport Policy Institute Managing Personal Mobility Devices (PMDs) On Nonmotorized Facilities OUR ROUTE(S) ▪Designed to follow the safest path for pedestrians and our guests. ▪Majority of time spent outside of the village. ▪We follow the golf course - this is an area that has a reasonable expectation for bike/foot/other traffic. ✓Banning Segways will not significantly reduce this congestion. ▪After taking our tour our guests are better prepared to make their way safely around Vail. FORD PARK: ▪Easy to avoid the crowds ✓Touring the park has never been an issue. We adjusted accordingly as events and other activities required. ✓Certain areas of the Park are wide open and easy for beginners to ride in. ✓One of the safest places for us to go, which is why it is our first stop on the tour.   COMMUNITY VISIBILITY AND INTERACTION We are enthusiastic promoters of the entire local area. ▪The tour can have a built-in stop at a café where we drive regular business. ▪Every day we promote other local businesses, give directions, make recommendations, and hand out promotional materials for other local businesses. ▪Our business plan is to be visible, answer questions but never solicit without an inquiry being made. ▪We want to be good partners in delivering the expert customer service people have come to expect when visiting Vail. We bring diversification to the winter tourism economy. 5 Star Reviews •117 5-star reviews in 2.5 seasons. •Moved from #20 on trip advisor to #2 in less than 2 seasons. •We provide an exceptional Experience that fits with the TOV’s Current desire to diversify year round Activities. 5-STAR REVIEWS 01/08/2018 To: Vail Town Council From: Vail Segway Tours For the Council’s Consideration Before the Upcoming Council Meeting on 01/16/2018: Dear Esteemed Council Members, We look forward to meeting with each of you to discuss the Council’s concerns regarding the use of Segways (and other EPAMDs) in the Vail town public spaces. We would like to take this opportunity to share with you some information we feel is not only relevant to the discussion, but important for understanding our business, who we are, and what we really do. -First, it is important to note that Vail Segway Tours is the only manufacturer-authorized tour provider in the state of Colorado. There are several other Segway-related businesses in the state, but none have an ofﬁcial professional relationship with Segway, inc. other than us. -An important part of having this designation of “Authorized Tour Provider” is we are bound by contract to conduct our operations to the safety standards set by the manufacturer. Thus, there is an element of accountability to our operation as we can lose our “Authorized” designation should we fail to adhere to their minimum guidelines.* *It is important to note that we, as a matter of practice, go above and beyond what is required by the manufacturer in terms of safety and training (see TA reviews included in this packet as evidence of this). -Our guides are Segway-certiﬁed trainers and guides, meaning they have completed the manufacturer’s training program on how to properly teach guests how to safely operate the Segway Personal Transporters (PTs). -We only offer a guided tour experience. Under our own volition we have chosen to never rent Segway PTs for individual use, a decision that has lead to considerable lost revenue but nevertheless is the responsible course of action. -All tour groups are accompanied by at least one, but most often two guides, one at the front of the group leading and one at the back of the group following up. -Each guest must complete a comprehensive training program (roughly 25-35 minutes) before being allowed to ride the machines on the tour. -Our guides are also Level-2 certiﬁed Segway Technicians, meaning our machines are maintained properly to the standards of the manufacturer. -Our Segway PTs are brand new 2017 model X2 SE, the top of the line. -We complete regular monthly maintenance on the machines to ensure they are safe to operate (documentation available upon request). -In advance of beginning our operations in June of 2017, we took special care to contact the Town of Vail, Vail Police, and Vail Code Enforcement so that we could clearly understand exactly what the town’s code and ordnances were before starting the business. We designed our tour routes and practices based on the counseling and information provided by the Chief of Police, the Head of Code Enforcement, and a representative from the Town. -The TOV sanctioned our intended business practices (i.e. tour routes, areas we proposed to ride with our guests) when it issued us a business license for this express purpose. -We are not just a random group of people who popped up overnight in Vail with a ﬂeet of Segways. Rather, we are industry professionals with years of experience. Jim Callan, the owner of Vail Segway Tours, fell in love with Vail and the Colorado Rockies when he visited the town for his nephew’s wedding (he married a girl from Vail!). Jim wanted to ﬁnd a way to spend part of the year in this amazing place and thought it would be the perfect location for a Segway tour. Much like Pete Seibert 6 decades ago, when Jim saw Vail he said “This is the Place!” One of the features that made Jim think Vail would be the perfect place is the wonderful network of paths, which are safer than roadways as there are no cars to interact with. An entrepreneur by nature, Jim has endeavored to create a successful business, and so far 2 jobs (hopefully more soon!), here in Vail Village. As per Jim’s wishes and deep commitment, Vail Segway has, from the very beginning, pledged 10% of all proﬁts to rare cancer research. Seth Valentine, manager of Vail Segway, has 4 years experience working for one of the largest tour providers in Europe and the United States. He has led thousands of people on Segway, walking, bicycle, sea kayaking, hiking and adventure tours in major European capital cities (Paris, London, Barcelona, Berlin, Prague, Rome), the Caribbean (St. John & St. Thomas, U.S. Virgin Islands), and now he brings his extensive tour industry knowledge and experience to Vail. Spencer Valentine spent 4 years as an EMT both on ambulances and in ERs in some of the busiest hospitals in Denver. Prior to moving to Vail, both Seth and Spencer spent the last 5 years living in Dubai, U.A.E., where they were hired by, and worked for, the Crown Prince of Dubai at Skydive Dubai, one of the worlds premier sport parachuting facilities. At Skydive Dubai the brothers worked as FAA certiﬁed Senior Parachute Technicians responsible for the lives and safety of thousands of people, professionally managing risk through adherence to industry best practices and regulations. They helped build and maintain the largest parachute equipment service center in the Middle East/North Africa (MENA) region and to date have recorded a combined 70+ lives saved from their work. -We view our role in the town as much more than just a tour business. We are ambassadors for Vail, and Colorado. When not out on tour we can often be seen in Solaris Plaza, or on Bridge Street, or in Seibert Square giving directions or recommendations, answering questions, taking photos for guests, and generally trying to be helpful and friendly, contributing to the overall welcoming vibe that Vail is so well known for. When out on tour with a group, we of course provide funny and entertaining stories about local history and geography, but we also try to provide useful information about the town and its exceptional local businesses. Our guests regularly ask us where to go and what to do while they are here, and we have the wonderful opportunity to help other local businesses by recommending them to our guests. All we are trying to do is build a small business that provides a fun, safe and memorable experience for our guests, and we believe that we offer a unique activity that ﬁts in nicely with the overall theme of adventurous, outdoorsy, fun, exciting, family-oriented activities that Vail has become known for. In other words, we believe it “ﬁts” nicely and we strongly urge you to allow us to continue our tour operations. To whom it may concern, It was brought to my attention that the Town of Vail was trying to limit the access of Segways in the Vail Village. I believe this to a mistake, and this limits the different activities our guests get ability to experience. Seth and Spencer have brought to the village a great service to our many guests. With my knowledge of their business and of their customer satisfaction, they are running a very vital business here in the village. With the weather not producing snow this season, so far, the town needs to make sure we are offering alternative activities to skiing in order to insure that guests continue to come back to Vail for their personal vacations. I manage a successful ski rental shop here in Vail Village. Our numbers are down due to the snow fall. Guests are here but they are not skiing as much as usual. They are also taking more days off in the middle of their stay. We are not getting a lot of cancellations but we are definitely not getting the typical day traffic and weekend warriors that we typically get. I am blaming the snow for this. If Vail is offering a different product, then more people will come or at least stay longer. I think a Great example of this is summer activities. I have lived here 10 years and the summer has become more and more busy. I believe this is due to more activities during the summer. More activities to do, more guests more business more revenue. The Solaris building is a great example of adding to our village activities: ice rink, BOL, movie theater. Why take away a fun, successful and informative activity in the Village. If anything Vail should be looking at ways to add different activities for guests to experience while visiting our Amazing town. Please do not get rid of alternative activities that our customers will be able to experience while in our wonderful town. If we can keep the guests in our Village they will be continuing to come year after year and keep the money in our town, thus not driving to other areas that have what they are looking for. -- Jacob Bangtson Base Camp/ Venture Sports Manager 970-477-8095 To whom it may concern, I just wanted to let you know that Spencer and Seth who run the Segway tours are a nice addition to the town. They were working across the street from the Bistro all summer. I think they brought something fun to many of the tourists and locals alike.It was also something people could do in the off season and the early season while we had no snow. I believe safety to the riders and the pedestrians were always their first and foremost concern.Please consider allowing them to continue their Segway tours. Thank you , Vidette Gehl Big Bear Bistro TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Paul Wisor, Town Attorney; Justin Hildreth, Town Engineer Date: August 27, 2019 Topic: Approval of Conditional Bill of Sale, Avon Landing, Village at Avon ACTION BEFORE COUNCIL: Council is asked to review and approve the Conditional Bill of Sale, Avon Landing, Village at Avon. RECOMMENDED MOTION: “I move to approve the Conditional Bill of Sale, Avon Landing, Village at Avon.” MODIFICATIONS: Council reviewed the Conditional Bill of Sale at the August 13, 2019 meeting. Direction was provided to make changes and return on August 27, 2019. The changes to the document are attached in redline/strikethrough format behind a clean version. SUMMARY: The Conditional Bill of Sale is entered into by and between the Town and Traer Creek Metropolitan District (“TCMD”) in connection with the development of Avon Landing. Avon Landing is located in Planning Area J on the northeast side of the I-70 interchange, as more particularly shown in Exhibit A attached hereto. Pursuant to the Conditional Bill of Sale, TCMD transfers to the Town, all of TCMD’s interest in certain improvements constructed for the purpose of serving Tract H of The Village (At Avon), including roadway and sitework improvements, storm sewer improvements and erosion control and revegetation improvements (together, the “Completed Improvements”). The Completed Improvements were undertaken pursuant to a Public Improvement Agreement (the “PIA”), which PIA was previously approved administratively pursuant to the Development Agreement, Section G of the PUD Guide for the Village (At Avon) and Section 7.32.100 of the Town Code. The Completed Improvements do not include certain outstanding improvements, limited to 1) the final two inches of asphalt on the roadway improvements and 2) a multi-use trail (the “Outstanding Improvements”), and TCMD will cause such improvements to be constructed and accepted by the Town prior to the issuance of a commercial or residential building permit or temporary certificate of occupancy, as applicable. With respect to the two inches of asphalt overlay, it is the Town’s understanding Traer Creek-RP is contemplating the development of a commercial shopping center or mixed-use project, and the infrastructure, including the road improvements, was installed to make the area more marketable. Once ready for development, the two inches of asphalt overlay will be installed. The Completed Improvements, including the roadway improvements, were completed more than two years prior to the Conditional Bill of Sale. As such, the Town has agreed to a modified date of acceptance, and to operate and maintain the Completed Improvements dedicated to the Town, as the warranty period and all repairs related to the Completed Improvements have long been completed and accomplished. In approving the Conditional Bill of Sale, the Town will have ownership of the Completed Improvements and the ability control and operate the same. The Town Engineer has inspected and reviewed the Completed Improvements. The Completed Improvements have been constructed to the Town’s specification and are eligible to be accepted by the Town. ATTACHMENTS: Conditional Bill of Sale Avon Landing Work Area 1377328.2 CONDITIONAL BILL OF SALE THIS CONDITIONAL BILL OF SALE (“Conditional Bill of Sale”) is made to be effective as of the _____ day of _______________, 2019 by TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado (together with its successors and assigns, “TCMD”) also referred to as “Grantor”, whose address is c/o: CliftonLarsenAllen, 8390 E Crescent Parkway, Suite 300, Greenwood Village, CO 80111, for good and valuable consideration by TOWN OF AVON, a Colorado home rule municipal corporation of the State of Colorado, County of Eagle (the “Town”), the receipt and sufficiency of which is hereby acknowledged, has bargained and sold, and does grant and convey unto the Town, successors, or assigns, all of its right, title and interest in the improvements, property and materials constructed related to the roadway improvements for the property referenced in Exhibit A (the “Property”), attached hereto and incorporated herein by reference and all appurtenances related and associated with such improvements. RECITALS A. Pursuant to the Avon Landing Public Improvements Agreement, dated August 17, 2015, and recorded on September 3, 2015, at Reception No. 201516731 (the “Avon Landing PIA”), concerning the completion of certain public improvements as further described therein (the “Public Improvements”), certain costs related to roadway improvements were verified on behalf of and to TCMD and on March 21, 2018, the duly elected Board of Directors of TCMD approved the Engineer’s Report and Certification, Planning Area J, dated March 7, 2018, including a summary of the public improvements provided by and on behalf of Traer Creek Holdings No. 2 LLC, a Colorado limited liability company (together with its successors and assigns, “TCH2”) by the Engineer for TMCD. Those certain public improvements (which exclude all telecommunications conduits, vaults and related improvements) as identified in the summary (the “Completed Improvements”), as described in Exhibit B, attached hereto and incorporated herein, were constructed on behalf of, for the benefit of and at the instruction of the TCMD, including the roadway improvements which TCMD desires to convey to the Town for ownership, operations and maintenance. B. TCMD has received the necessary certifications and quitclaim bill of sale from TCH2, for the roadway improvements outlined in Exhibit B, within and related to that certain Property located within the Final Plat, Avon Landing, a Replat of Tract H, The Village (at Avon), Filing No. 3 (“Avon Landing Plat”), which Property is within and is part of what is legally described on Exhibit A. C. The Property is subject to, among other matters, the Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon), dated as of October 22, 2013, and recorded on August 1, 2014 at Reception No. 201412777 (“Development Agreement”), and that certain The Village (at Avon) Amended and Restated PUD Guide dated November 7, 2012, and recorded on August 1, 2014 at Reception No. 201412778 (“PUD Guide”). D. Pursuant to that certain Assignment and Release Agreement dated as of October 14, 2016, and recorded on October 17, 2016, at Reception No. 201617230, TCH2 and the Town 2 1377328.2 are parties to that certain Avon Landing Public Improvements Agreement dated as of August 17, 2015, and recorded on September 3, 2015, at Reception No. 201516731 (the “Avon Landing PIA”). E. The Avon Landing PIA, pursuant to Paragraph 22 and Exhibit C thereof, specifically addresses the design, construction and completion of certain public improvements for the initial phase of development within the Avon Landing Plat (as further described in Paragraph 22 and Exhibit C thereof, the “Phase I Improvements”). F. In accordance with the Avon Landing PIA, TCH2, for investment purposes, has incurred costs and expenses (“TCH2 Costs”) to finance the design and construction of the Phase I Improvements on behalf of and for the benefit of TCMD, and TCMD’s acquisition of the Completed Improvements and payment of the verified TCH2 Costs is within the scope of TCMD’s authority pursuant to its service plan. G. Pursuant to the terms of the Avon Landing PIA, TCH2 is obligated to cause TCH2 to effect the conveyance, dedication or other transfer of certain Capital Projects (as defined in the Avon Landing PIA) to TCMD by a quitclaim bill of sale transferring and conveying TCH2’s interest in the improvements comprising the Capital Projects (or designated phase or portion thereof), together with certain related deliveries as enumerated in the Agreement and addressed herein. H. In accordance with the Avon Landing PIA, TCH2 has financed the construction of Completed Improvements, which are a portion of the Capital Projects under the Avon Landing PIA. I. The Completed Improvements do not include certain outstanding improvements, limited to the final two inches of asphalt on the roadway improvements and multi-use trail (the “Outstanding Improvements”), and TCMD will cause such improvements to be constructed and accepted by the Town prior to the issuance of a commercial or residential building permit or temporary certificate of occupancy, as applicable. J. The Completed Improvements, including the roadway improvements, were completed more than two years prior to this Bill of Sale. The Town has agreed to a modified date of acceptance, and to operate and maintain the Completed Improvements dedicated to the Town, as the warranty period and all repairs related to the Completed Improvements have long been completed and accomplished. K. TCMD has inspected and approved the Completed Improvements. L. TCH2, as land investor, conveyed the Completed Improvements to TCMD, together with certain assignable warranties associated therewith, in accordance with the Avon Landing PIA. M. TCMD now wishes to convey the Completed Improvements to the Town, subject to the condition that the Outstanding Improvements will need to be completed and accepted by the 3 1377328.2 Town prior to a request for a commercial or residential building permit (for the two inches of asphalt overlay) and prior to a request for a residential certificate of occupancy (for the “multi-use trail” improvements). N. Upon completion and acceptance of the Outstanding Improvements the Outstanding Improvements will be conveyed to the Town. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. Recitals; Defined Terms. The above Recitals are incorporated into this Conditional Bill of Sale as if fully set forth herein. Capitalized terms used but not defined herein have the meanings provided in the Avon Landing PIA. 2. Conveyance. TCMD hereby quitclaims, assigns, transfers and sets over unto the Town, all right, title and interest of TCMD in and to the Completed Improvements, owned by TCMD, together with all third-party warranties to the extent the same relate to the Capital Projects and are assignable (the “Assigned Warranties”) related to the Completed Improvements listed in Exhibit B. 3. Exclusion of Warranties. Except for the Assigned Warranties, TCMD is conveying the Completed Improvements in their “as is” condition, and TCMD has not made and does not make any express or implied warranty or representation of any kind whatsoever with respect to the Completed Improvements, including, without limitation, the merchantability of the Completed Improvements or their fitness for any particular purpose, the design or condition of such Completed Improvements, the compliance of such Completed Improvements with the requirements of any rule, law, regulation, ordinance, specification or contract pertaining thereto, or any patent infringements or latent defects. The Town has inspected and approved the Completed Improvements, and hereby agrees and acknowledges that, except as otherwise warranted pursuant to the Assigned Warranties, the Town accepts such Completed Improvements on such “as is” basis, pursuant to the terms of this Conditional Bill of Sale. 4. Conditionals. TCMD and the Town acknowledge and agree that the Outstanding Improvements must be completed by TCMD in compliance with the Avon Landing PIA and Development Agreement (as applicable) and be accepted by the Town. The remaining two inches of asphalt will be required to be constructed, installed and accepted by the Town prior to the next request for a commercial or residential building permit within the Property pursuant to the Avon Landing PIA and Development Agreement, as applicable and as referenced above. TCMD shall repair any and all damage to the roadway improvements prior to construction and installation of the two inches of asphalt, and such repairs shall be inspected by the Town and repaired to Town’s reasonably satisfaction by TCMD prior to construction and installation of the two inches of asphalt. The multi-use trail shall be constructed andinstalled by TCMD pursuant to the requirements set forth in the Appendix F of the PUD Guide and accepted by the Town prior to the request for the 4 1377328.2 next residential temporary certificate of occupancy within the Property pursuant to the Avon Landing PIA and Development Agreement, as applicable and as referenced above. The Town may deny any application as set out in this Section 4 under this Conditional Bill of Sale on the grounds that the required Outstanding Improvements do not comply with these requirements and/or the requirements of the Avon Landing PIA and the Development Agreement. 5. Operation and Maintenance of Completed Improvements by the Town. The Town has agreed to a modified date of acceptance and as a result, the warranty period related to the Completed Improvements has expired. The Town has no obligation to open the road to public use, except in its sole discretion, until the issuance of a Temporary Certificate of Occupancy has been issued by the Town. 6. Successors and Assigns. This Conditional Bill of Sale is binding upon and will inure to the benefit of the successors and assigns of the parties hereto. 7. Attorneys’ Fees and Costs. In the event legal action is commenced to enforce or interpret any provision of or right under this Conditional Bill of Sale, the prevailing party will be entitled to recover its actual costs and expenses incurred, including reasonable attorneys’ fees, from the party not prevailing. 8. Counterparts. This Conditional Bill of Sale may be executed in one or more counterparts, each of which will constitute an original, but all of which, when taken together, will constitute but one agreement. 9. Governing Law. This Conditional Bill of Sale is governed by, interpreted under, and construed and enforced in accordance with, the laws of the State of Colorado. [Signatures appear on following page(s)] 5 IN WITNESS WHEREOF, the TCMD has executed this Conditional Bill of Sale to be effective as of the date set forth above. TCMD: ____________________________________ Attest: ________________________ (insert title) ________________________ Secretary ACCEPTED BY THE TOWN: ___________________________ (insert title) Attest: ____________________________ Brenda Torres, Town Clerk A-1 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY B-1 EXHIBIT B COMPLETED IMPROVEMENTS Roadway & Sitework Storm Sewer Erosion Control & Revegetation All as more particularly described in Exhibit C to the Avon Land Public Improvements Agreement dated August 17, 2015, and recorded on September 13, 2015 at Reception No. 201516731. [The Sanitary Sewer, Water and Shallow Utilities described therein are specifically excluded from this Conditional Bill of Sale.] OUTSTANDING IMPROVEMENTS The remaining two inches of asphalt will be required to be constructed, installed and accepted by the Town prior to a request for a commercial or residential building permit. The multi-use trail must be constructed, installed and accepted by the Town prior to a request for a residential temporary certificate of occupancy pursuant to the Avon Landing PIA and Development Agreement, as applicable. 1377328.2 CONDITIONAL BILL OF SALE THIS CONDITIONAL BILL OF SALE (“Conditional Bill of Sale”) is made to be effective as of the _____ day of _______________, 2019 by TRAER CREEK METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado (together with its successors and assigns, “TCMD”) also referred to as “Grantor”, whose address is c/o: CliftonLarsenAllen, 8390 E Crescent Parkway, Suite 300, Greenwood Village, CO 80111, for good and valuable consideration by TOWN OF AVON, a Colorado home rule municipal corporation of the State of Colorado, County of Eagle (the “Town”), the receipt and sufficiency of which is hereby acknowledged, has bargained and sold, and does grant and convey unto the Town, successors, or assigns, all of its right, title and interest in the improvements, property and materials constructed related to the roadway improvements for the property referenced in Exhibit A (the “Property”), attached hereto and incorporated herein by reference and all appurtenances related and associated with such improvements. RECITALS A. Pursuant to the Avon Landing Public Improvements Agreement, dated August 17, 2015, and recorded on September 3, 2015, at Reception No. 201516731 (the “Avon Landing PIA”), concerning the completion of certain public improvements as further described therein (the “Public Improvements”), certain costs related to roadway improvements were verified on behalf of and to TCMD and on March 21, 2018, the duly elected Board of Directors of TCMD approved the Engineer’s Report and Certification, Planning Area J, dated March 7, 2018, including a summary of the public improvements provided by and on behalf of Traer Creek Holdings No. 2 LLC, a Colorado limited liability company (together with its successors and assigns, “TCH2”) by the Engineer for TMCD. Those certain public improvements (which exclude all telecommunications conduits, vaults and related improvements) as identified in the summary (the “Completed Improvements”), as described in Exhibit B, attached hereto and incorporated herein, were constructed on behalf of, for the benefit of and at the instruction of the TCMD, including the roadway improvements which TCMD desires to convey to the Town for ownership, operations and maintenance. B. TCMD has received the necessary certifications and quitclaim bill of sale from TCH2, for the roadway improvements outlined in Exhibit B, within and related to that certain Property located within the Final Plat, Avon Landing, a Replat of Tract H, The Village (at Avon), Filing No. 3 (“Avon Landing Plat”), which Property is within and is part of what is legally described on Exhibit A. C. The Property is subject to, among other matters, the Consolidated, Amended and Restated Annexation and Development Agreement for The Village (at Avon), dated as of October 22, 2013, and recorded on August 1, 2014 at Reception No. 201412777 (“Development Agreement”), and that certain The Village (at Avon) Amended and Restated PUD Guide dated November 7, 2012, and recorded on August 1, 2014 at Reception No. 201412778 (“PUD Guide”). D. Pursuant to that certain Assignment and Release Agreement dated as of October 14, 2016, and recorded on October 17, 2016, at Reception No. 201617230, TCH2 and the Town 2 1377328.2 are parties to that certain Avon Landing Public Improvements Agreement dated as of August 17, 2015, and recorded on September 3, 2015, at Reception No. 201516731 (the “Avon Landing PIA. .”). E. The Avon Landing PIA, pursuant to Paragraph 22 and Exhibit C thereof, specifically addresses the design, construction and completion of certain public improvements for the initial phase of development within the Avon Landing Plat (as further described in Paragraph 22 and Exhibit C thereof, the “Phase I Improvements”). F. In accordance with the Avon Landing PIA, TCH2, for investment purposes, has incurred costs and expenses (“TCH2 Costs”) to finance the design and construction of the Phase I Improvements on behalf of and for the benefit of TCMD, and TCMD’s acquisition of the Completed Improvements and payment of the verified TCH2 Costs is within the scope of TCMD’s authority pursuant to its service plan. G. Pursuant to the terms of the Avon Landing PIA, TCH2 is obligated to cause TCH2 to effect the conveyance, dedication or other transfer of certain Capital Projects (as defined in the Avon Landing PIA) to TCMD by a quitclaim bill of sale transferring and conveying TCH2’s interest in the improvements comprising the Capital Projects (or designated phase or portion thereof), together with certain related deliveries as enumerated in the Agreement and addressed herein. H. In accordance with the Avon Landing PIA, TCH2 has financed the construction of Completed Improvements, which are a portion of the Capital Projects under the Avon Landing PIA. I. The Completed Improvements do not include certain outstanding improvements, limited to the final two inches of asphalt on the roadway improvements and multi-use trail (the “Outstanding Improvements”), and TCMD will cause such improvements to be constructed and accepted by the Town prior to the issuance of a commercial or residential building permit or temporary certificate of occupancy, as applicable. J. The Completed Improvements, including the roadway improvements, were completed more than two years prior to this Bill of Sale. The Town has agreed to a modified date of acceptance, and to operate and maintain the Completed Improvements dedicated to the Town, as the warranty period and all repairs related to the Completed Improvements have long been completed and accomplished. K. TCMD has inspected and approved the Completed Improvements. L. TCH2, as land investor, conveyed the Completed Improvements to TCMD, together with certain assignable warranties associated therewith, in accordance with the Avon Landing PIA. M. TCMD now wishes to convey the Completed Improvements to the Town, subject to the condition that the Outstanding Improvements will need to be completed and accepted by the 3 1377328.2 Town prior to a request for a commercial or residential building permit (for the two inches of asphalt overlay) and prior to a request for a residential certificate of occupancy (for the “multi-use trail” improvements). N. Upon completion and acceptance of the Outstanding Improvements the Outstanding Improvements will be conveyed to the Town. AGREEMENT NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. Recitals; Defined Terms. The above Recitals are incorporated into this Conditional Bill of Sale as if fully set forth herein. Capitalized terms used but not defined herein have the meanings provided in the Avon Landing PIA. 2. Conveyance. TCMD hereby quitclaims, assigns, transfers and sets over unto the Town, all right, title and interest of TCMD in and to the Completed Improvements, owned by TCMD, together with all third-party warranties to the extent the same relate to the Capital Projects and are assignable (the “Assigned Warranties”) related to the Completed Improvements listed in Exhibit B. 3. Exclusion of Warranties. Except for the Assigned Warranties, TCMD is conveying the Completed Improvements in their “as is” condition, and TCMD has not made and does not make any express or implied warranty or representation of any kind whatsoever with respect to the Completed Improvements, including, without limitation, the merchantability of the Completed Improvements or their fitness for any particular purpose, the design or condition of such Completed Improvements, the compliance of such Completed Improvements with the requirements of any rule, law, regulation, ordinance, specification or contract pertaining thereto, or any patent infringements or latent defects. The Town has inspected and approved the Completed Improvements, and hereby agrees and acknowledges that, except as otherwise warranted pursuant to the Assigned Warranties, the Town accepts such Completed Improvements on such “as is” basis, pursuant to the terms of this Conditional Bill of Sale. 4. Conditionals. TCMD and the Town acknowledge and agree that the Outstanding Improvements must be completed by TCMD in compliance with the Avon Landing PIA and Development Agreement (as applicable) and obtain acceptance frombe accepted by the Town. The remaining two inches of asphalt will be required to be constructed, installed and accepted by the Town prior to the next request for a commercial or residential building permit within the Property pursuant to the Avon Landing PIA and Development Agreement, as applicable and as referenced above. The multi-use trail must be constructed, installedTCMD shall repair any and all damage to the roadway improvements prior to construction and installation of the two inches of asphalt, and such repairs shall be inspected by the Town and repaired to Town’s reasonably satisfaction by TCMD prior to construction and installation of the two inches of asphalt. The multi-use trail shall be constructed andinstalled by TCMD pursuant to the requirements set forth in the Appendix F of 4 1377328.2 the PUD Guide and accepted by the Town prior to the request for the next residential temporary certificate of occupancy within the Property pursuant to the Avon Landing PIA and Development Agreement, as applicable and as referenced above. The Town may deny any application as set out in this Section 4 under this Conditional Bill of Sale on the grounds that the required Outstanding Improvements do not comply with these requirements and/or the requirements of the Avon Landing PIA and the Development Agreement. 5. Operation and Maintenance of Completed Improvements by the Town. The Town has agreed to a modified date of acceptance and as a result, the warranty period related to the Completed Improvements has expired. The Town has no obligation to open the road to public use, except in its sole discretion, until the issuance of a Temporary Certificate of Occupancy has been issued by the Town. 6. Successors and Assigns. This Conditional Bill of Sale is binding upon and will inure to the benefit of the successors and assigns of the parties hereto. 7. Attorneys’ Fees and Costs. In the event legal action is commenced to enforce or interpret any provision of or right under this Conditional Bill of Sale, the prevailing party will be entitled to recover its actual costs and expenses incurred, including reasonable attorneys’ fees, from the party not prevailing. 8. Counterparts. This Conditional Bill of Sale may be executed in one or more counterparts, each of which will constitute an original, but all of which, when taken together, will constitute but one agreement. 9. Governing Law. This Conditional Bill of Sale is governed by, interpreted under, and construed and enforced in accordance with, the laws of the State of Colorado. [Signatures appear on following page(s)] 5 IN WITNESS WHEREOF, the TCMD has executed this Conditional Bill of Sale to be effective as of the date set forth above. TCMD: ____________________________________ Attest: ________________________ (insert title) ________________________ Secretary ACCEPTED BY THE TOWN: ___________________________ (insert title) Attest: ____________________________ Brenda Torres, Town Clerk A-1 EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY B-1 EXHIBIT B COMPLETED IMPROVEMENTS Roadway & Sitework Storm Sewer Erosion Control & Revegetation All as more particularly described in Exhibit C to the Avon Land Public Improvements Agreement dated August 17, 2015, and recorded on September 13, 2015 at Reception No. 201516731. [The Sanitary Sewer, Water and Shallow Utilities described therein are specifically excluded from this Conditional Bill of Sale.] OUTSTANDING IMPROVEMENTS The remaining two inches of asphalt will be required to be constructed, installed and accepted by the Town prior to a request for a commercial or residential building permit. The multi-use trail must be constructed, installed and accepted by the Town prior to a request for a residential temporary certificate of occupancy pursuant to the Avon Landing PIA and Development Agreement, as applicable. TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Town Council From: Matt Pielsticker, Planning Director Date: August 27, 2019 Topic: CONTINUED - DEVELOPMENT AGREEMENT WITH COLORADO WORLD RESORTS, LLC ACTION BEFORE COUNCIL: Council is asked to take action, by motion and vote, on the attached revised development agreement between Colorado World Resorts, LLC and the Town of Avon. PROPOSED MOTION: “I move to approve the development agreement with Colorado World Resorts, LLC.” MODIFICATIONS: The Council reviewed the agreement at the August 13, 2019 meeting. Direction was provided to make changes and return on August 27, 2019. The changes to the document are attached in redline/ strikethrough format behind a clean version. SUMMARY: Colorado World Resorts, LLC is the owner of the property located 38388 Highway 6. On September 18, 2018, the Avon Planning and Zoning Commission approved a Major Design and Development application for the Colorado World Resorts Condominium project. The application was approved with the condition that a development agreement be executed, prior to building permit, to address a water budget, public improvements, and maintenance of drainage infrastructure. This development agreement is being brought to Avon Town Council to fulfil the condition of approval, in order to obtain to a full building permit and begin foundation work. The property owner is currently working under a grading and excavation permit. The Avon Municipal Code allows for grading permits to be issued and enforced by the Town Engineer, in advance of building permits. Activities associated with grading permits generally include drainage infrastructure, excavation, grading, and retaining walls. Issuance of grading and excavation in advance of building permits is typical for larger construction projects and is common to keep work progressing while final construction documents are being prepared. Town Staff requires collateral for site restoration as part of a grading permit and for this development the collateral is $209,475. DEVELOPMENT AGREEMENT COMPONENTS: The attached agreement includes assurances that outdoor water use will be limited in perpetuity. The water budget provisions are the result of a collaborative planning process with the Eagle River Water and Sanitation District (ERWSD). The agreement will be executed by ERWSD and the applicable section of the agreement has been approved by ERWSD staff. Public Improvement construction, and ongoing maintenance is also addressed with the agreement. Other aspects commonly found in larger projects were added: site restoration in the event of project failure, and future subdivision mechanisms to require amenities fee, if applicable. PROJECT TIMELINE: - May 2018. Town Council approved rezoning of the property from PUD to Residential High Density, with Short Term Rental Overlay District. - September 2018. Avon Planning and Zoning Commission approved development plan applications. - October 2018. Excavation and grading permit submitted for grading and soil nail walls. o Permit Fee collected: $26,195 o Collateral for site restoration (typical) collected: $209,475 - November 2018. Site mobilization and site preparation. - December 2019. Updated Landscape and Irrigation plans approved by Avon Planning and Zoning Commission. - Spring 2019. Full mobilization for excavation, grading, and soil nail wall activities. - July 2019. Ability to Serve received from Water Authority and District. - August 2019. Anticipated foundation permit issuance. DEVELOPMENT AGREEMENTS: The Town’s authority to enter development agreements is derived from its home rule charter, state statutes, and the power generally held by Colorado home rule municipalities to address maters of local concern by contract. Generally, the Town has entered into development agreements with developers at the same time and in conjunction with Ordinances to approve rezoning applications (i.e. Confluence, Wyndham, Village at Avon). In those cases, the Ordinance was the approval mechanism and the development agreement was made part of, or condition to, the Ordinance and other land use approvals being sought. In the instance of Colorado World Resorts, LLC, the zoning was approved by Ordinance prior to a development application submittal. The development plan approval included a condition requiring the development agreement as a pre-requisite to a building permit being issued. ATTACHMENT: Development Agreement Page 1 of 20 Colorado World Resorts DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT (“Agreement”) is made and entered into as of _________________, 2019, by and between COLORADO WORLD RESORTS, LLC., a Colorado limited liability corporation (“Owner”), and the Town of Avon, a home rule municipal corporation of the State of Colorado (“Town”) (Owner and Town may be referred to individually as “Party” and collectively as “Parties”), and, as to Article V of this Agreement only, UPPER EAGLE REGIONAL WATER AUTHORITY, a quasi-municipal corporation and political subdivision of the State of Colorado (“Authority”). RECITALS A. The Owner owns approximately 21.52 acres within the Town that is legally described as: 38388 Highway 6, Town of Avon, County of Eagle, State of Colorado as is also described in the Quit Claim Deed recorded in the Eagle County Clerk and Recorder’s office at Reception Number 201803580 (“Property”). B. The Owner submitted an application to the Town for approval of a Major Design and Development application for a condominium project referred to as Colorado World Resorts (“Application”). C. After holding a public hearing on September 18, 2018, the Town of Avon Planning and Zoning Commission approved the Application conditioned upon the execution of this Agreement prior to a building permit. D. The Application includes a Landscape Plan and Irrigation Plan, which includes a limited irrigated area and drought tolerant species. E. The Application includes public improvements that necessitate further review, warranty, and acceptance upon satisfactory completion. F. Development of the Property in accordance with this Agreement will provide for orderly growth in accordance with the policy and goals set forth in the Town’s Comprehensive Plan; ensure reasonable certainty, stability and fairness in the land use planning process; stimulate economic growth; secure the reasonable investment-backed expectations of the Owner; foster cooperation between the public and private sectors in the area of land use planning; and otherwise achieve the goals and purposes of the Town. AGREEMENT NOW, THEREFORE, in consideration of the recitals set forth above, the terms, conditions, covenants and mutual promises set forth in this Agreement, and other good and valuable Page 2 of 20 Colorado World Resorts consideration, the receipt and sufficiency of which are hereby acknowledged, the Owner and the Town agree as follows with respect to the development of the Property: ARTICLE I DEFINITIONS Definitions. The following terms shall have the meanings set forth below unless the context in which they are used clearly indicates otherwise: 1.1 Association. The common interest community association and/or other entity formed or to be formed for purposes of governing the rights, obligations and interests of owners of Time- Share Interests and other interests in the Development upon completion of construction thereof. Certain provisions relating to the rights and obligations of the Association are provided in Article X of this Agreement. 1.2 Association Governing Documents. The declaration of covenants, articles of incorporation, bylaws, rules and regulations, and any other documents creating or governing the Association and its members, as in existence from time to time. 1.3 Development. The project to be constructed on the Property as described in the Development Plan. 1.4 Development Plan. The approved Major Design and Development Plan is made part of the land use approval for the Development Plan. 1.5 Development Plan Components. The following plan set sheets contained in the Development Plan are incorporated by reference into and made a part of this Agreement: [Sheet C1.0 – C6.0] Public Property Improvement Map [Sheets L1.0-L3.0 & IR1.0-IR1.3} Landscape Plan & Irrigation Plan [Sheets C1.0 – C6.0] Owner Maintained Public Improvements 1.6 Exhibits. The following Exhibit is to this agreement is incorporated by reference and made part of this Agreement: Exhibit A Amenity Fees 1.7 Landscape & Irrigation Plan. The approved Landscape Plan and Irrigation Plans, Sheets L1.0-L3.0 & IR1.0-IR1.3of the Development Plan, is made part of the land use approval for the Development Plan. 1.8 Municipal Code. The Avon Municipal Code, including the Avon Development Code, as may be amended from time to time. 1.9 Public Improvements. Those improvements to be acquired, constructed or installed for the benefit of the public, including, but not limited to, the Public Improvements described in Article IV and in the Public Property Improvement Map. Page 3 of 20 Colorado World Resorts 1.10 Public Property Improvement Map. The approved Public Property Improvement Map, Sheets C1.0 – C6.0of the Development Plan, is made part of the land use approval for the Development Plan. 1.11 ROW. “ROW” shall mean that certain public right of way as described in the Development Plan. 1.12 Term. The term of this Agreement as provided in Article III. ARTICLE II DEVELOPMENT PLAN 2.1 Development Plan. The Development Plan sets forth the approved scope of development of the Property and has been approved by the Town through action by the Town of Avon Planning and Zoning Commission. 2.2 Compliance with General Regulations. The approval of the Development Plan and this Agreement shall not preclude the application of Town ordinances and regulations, or state or federal laws and regulations, which are general in nature and are applicable to all property subject to land use regulation by the Town, including, but not limited to, building, exterior energy offset, fire, plumbing, electrical and mechanical codes, as all such regulations exist on the date of this Agreement or may be enacted or amended after the date of this Agreement. ARTICLE III TERM 3.1 Term. The term of this Agreement shall be for so long as the building which comprises the Development continues to exist and for five (5) years after such time the building that comprises the Development is no longer in existence on the Property. In the event the building which comprises the Development is destroyed by fire or other calamity and then reconstructed within five (5) years, such reconstructed building shall be deemed the building that comprises the Development and this Agreement shall continue in full force and effect until five (5) years after the reconstructed building no longer exists. The Parties may terminate this Agreement earlier by mutual agreement. ARTICLE IV PUBLIC IMPROVEMENTS 4.1 Public Improvements. The Owner agrees to construct and install the public improvements set forth in this Agreement (the “Public Improvements”). Such obligations directly relate to the Application complying with the minimum required development standards set forth in the Code and are material to the terms, conditions, covenants and mutual promises bargained for by Town and the Owner in this Agreement. The Owner shall install or cause to be installed all Public Improvements that the Owner is required to construct in a good and workmanlike manner in accordance with the applicable regulations of the Town and applicable Utilities, as defined below, and in accordance with this Agreement. Page 4 of 20 Colorado World Resorts (a) Utility Improvements. The Owner agrees to install all utility improvements as described in the Development Plan. (b) Drainage Improvements. The Owner shall install drainage improvements for stormwater control and quality as described in the Development Plan. (c) Sidewalk. The Owner shall install the sidewalk adjacent to Highway 6 running the length of the project, as described the Development Plan. (d) Turn Lanes. The Owner shall install turn lanes off Highway 6, as described in the Development Plan. 4.2 Timing of Public Improvements. The Owner shall complete the Public Improvements and the Town shall have provided written notification of acceptance of the Public Improvements from the Town (the “Town’s Notification of Acceptance”) on or before the date of completion of the Development. The date of completion of the Development shall be defined as the date that the Owner receives from the Town a Temporary Certificate of Occupancy for the Development. The Owner shall inform the Town of all construction plans within Town property and within the ROW at least ninety (90) days prior to the start of construction that is to occur within Town property or the ROW. If the Owner has not received the Town’s Notification of Acceptance from the Town of all Public Improvements, the Town may withhold the issuance of a Temporary Certificate of Occupancy. 4.3 Warranty Period. The Public Improvements constructed and installed by the Owner shall be warranted to be free from defects in material, workmanship and quality for a period of two (2) years after the date of the Town Notification of Acceptance (the “Warranty Period”). In the event of any such defect arising during the Warranty Period, the Town may require the Owner to correct the defect in material, workmanship or quality. Ten percent (10%) of the total actual cost of completion of all Public Improvements to be installed and constructed by the Owner shall be collected by the Town from the Owner as security during such two (2) year period as the improvement warranty pursuant to Code § 7.32.100, as may be amended. In the event any corrective work with respect to the material, workmanship and quality is performed during the Warranty Period then the warranty on said corrected work with respect to the material, workmanship and quality shall be extended for two (2) years from the date on which it is completed. Security equal to 125% of the cost of any corrected work with respect to the material, workmanship and quality, as estimated by the Town, shall be retained by the Town or immediately paid to the Town by the Owner, if sufficient funds are not held by the Town, in accordance with Code § 7.32.100, for a period of two (2) years from the date of completion of the corrected work. 4.4 Engineering Certification. Upon completion of portions of the Public Improvements to be installed and constructed by the Owner, the Owner will cause its engineers (who shall have been actively engaged in observing to a commercially reasonable degree the construction of the Public Improvements and who are licensed in the State of Colorado) to provide a written opinion. The written opinion shall be in form and content reasonably satisfactory to the Town’s Engineer, and based upon on-site observation, review of sufficient construction- observation reports, field test reports, and material test reports and certifications by qualified Page 5 of 20 Colorado World Resorts personnel, shall opine that the installation of the Public Improvements, or portions thereof as may be completed from time to time, have been completed, and that to the best of the opining engineer’s knowledge and professional judgment, the Public Improvements are in conformance with all Standards (as defined below), plans, and specifications as submitted to and previously approved by the Town, or the pertinent utility supplier, as depicted on Sheets C1.0 – C6.0 of the Development Plan. Inspection reports, test results, as-constructed plans, including surveys, and other supporting documentation shall be submitted with the certification. The as-constructed plans shall be submitted on paper and in a digital format, either AutoCad DWG, AutoCad DXF, or ESRI GIS shapefile. 4.5 Inspection Procedures. All Public Improvement work shall be done under the published inspection procedures and standards (collectively, “Standards”) established by the Town, Holy Cross Energy, Eagle River Water and Sanitation District, Upper Eagle Regional Water Authority, Xcel Energy, CenturyLink, Comcast, or any other utility (“Utilities”), as applicable and shall be subject to the reasonable satisfaction of the Town and applicable Utilities. No work shall be deemed complete until the reasonable approval and acceptance of the Public Improvements by the Town or the Utilities. Inspections by the Town and Utilities shall not relieve the Owner or the Owner’s agents from any responsibility or obligation to ensure that all work is completed in conformance with all Standards, plans, and specifications as submitted to and previously approved by the Town and Utilities. (a) Cost of Inspections: The cost, if any, of inspections, by Town employees, or an independent third-party inspector, shall be paid by the Owner. (b) Notice of Non-Compliance: In the event that the Town, through its inspectors, reasonably determines that the Public Improvements to be installed and constructed by the Owner are not in compliance with the Development Plan, it shall give written notice of such non-compliance (“Notice of Non-Compliance”) to the Owner. The Notice of Non-Compliance shall include a narrative describing the unsatisfactory construction work with specific reference to the applicable construction plans and specifications with which the Public Improvements fail to comply. The Notice of Non- Compliance must be provided to the Owner within two (2) working days of the date of the inspection. 4.6 Indemnification and Hold Harmless. The Owner shall indemnify, defend and hold harmless the Town (and its officials, agents, representatives, employees, contractors, and successors and assigns) from all claims, demands, damages (including, without limitation, consequential damages), causes of action, fines, penalties, losses, liability, judgments, costs or expenses (including reasonable attorneys’ fees) resulting from claims for bodily injury (including death) to any person or damage to any property, arising during the construction of the Public Improvements or otherwise arising on the Property or from the Owner’s activities while performing this Agreement (including, without limitation, maintenance, repair and replacement activities), including without limitation any claim that all or any portion of the Public Improvements installed and constructed by the Owner on Town property or ROW constitute a dangerous and/or unsafe condition within a public right-of-way; provided, however, that this indemnity shall not apply to any claims, demands, damages (including, without limitation, consequential damages), causes of action, fines, penalties, losses, liability, Page 6 of 20 Colorado World Resorts judgments, costs or expenses (including reasonable attorneys’ fees) resulting from any act or omission of the Town or its officials, agents, representatives, employees, inspectors, including independent third-party inspectors, contractors, and successors and assigns. 4.7 With respect to Owner’s obligation with respect to and/or any claims arising from the construction or installation of the Public Improvements, all Owner’s or Owner’s contractor’s insurance policies related in any way to the Public Improvements shall be endorsed to include the Town and the Town’s officers and employees as additional insureds/loss payees, applicable within each policy. Every policy covering the Public Improvements shall be primary insurance, and any insurance carried by the Town, its officers, or its employees, or carried by or provided through any insurance pool of the Town, shall be excess and not contributory insurance to that provided by the Owner or the Owner's contractors. No additional insured endorsement to the policy required herein shall contain any exclusion for bodily injury or property damage arising from completed operations. The Owner and its endorsement/additional insured costs, premiums and contractor shall be solely responsible for deductible losses under any policy required above. ARTICLE V WATER PROVISION, WATER USE AND ENFORCEMENT 5.1 Water Rights. The Property has not been allocated water rights by the Town and must dedicate water rights to serve 81 SFEs and irrigate 0.91 acres of landscaped area as required by the Authority or, in the alternative, the Owner shall pay the Authority cash-in-lieu of a water rights dedication. The Owner shall provide proof of dedication or of payment of cash-in-lieu of water rights dedication and proof of water system impact fees in the amount of $56,379.00 prior to the issuance of a building permit. 5.2 Indoor Water Usage Limit. The Owner shall adhere to an indoor usage water budget of no more than 300 gallons per day, per unit, and shall be responsible for managing use to this limit. Any use in excess of this limit may be subject to an excess use fee as determined by the Authority. Colorado World Resorts Indoor Water Usage Limit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Use per Unit 9.3 8.4 9.3 9 9.3 9 9.3 9.3 9 9.3 9 9.3 110 (kgal) Total existing (kgal) 753.3 680.4 753.3 729.0 753.3 729.0 753.3 753.3 729.0 753.3 729.0 753.3 8870 Page 7 of 20 Colorado World Resorts 5.3 Outdoor Water Usage. (a) The Owner shall install a separate irrigation meter pursuant to Code § 7.28.050(6)(ii)(D). This section establishes a maximum allowable outdoor water use limit for the development to ensure this Development does not exceed its outdoor water allocation as established by the Authority’s Water Dedication Requirement and Water Service Agreement between the Owner and the Authority. During the first two growing seasons, the Owner shall not exceed 639,832 gallons of outdoor water use in any calendar year. Thereafter, the Owner shall not exceed 319,916 gallons of outdoor water use in any calendar year. The following monthly budget is based upon a total irrigated area of 0.91 acres or 39,787 square feet: Colorado World Resorts Outdoor Water Usage Limit May Jun July August September Total Gallons 54,641 71,763 78,060 66,350 49,102 319,916 (b) Outdoor Water Usage on the Property may be curtailed by the Authority during periods of low stream flows, and/or during instream flow calls. Once connected, the Authority will monitor water usage of the Property. 5.4 Enforcement. (a) The Authority, upon determining that the Owner has exceeded the Water Usage Limits prescribed above in this Article, may provide written notice by mail or e- mail to the Owner or its successors and assigns of the violation of this Section and demand that the excessive water usage cease immediately. The Town, in its sole discretion, may also issue a notice under this Section when it has been notified by the Authority that there is a violation of this Article. (b) In the event that the water usage of the Property exceeds the Water Usage Limits in this Article, the Owner shall be obligated to either reduce its water usage to within the Water Usage Limits, or, at the Authority’s sole discretion, pay additional cash in lieu of a water rights dedication fees for the excess water use. If the Authority, in its sole discretion, does not accept an additional cash in lieu of water rights dedication fee, the Owner or its successors and assigns shall be obligated to reduce its water use to the Water Usage Limits in accordance with all remedies set forth in this Agreement. (c) Even if the Owner ceases excessive water usage immediately, the Authority, in its sole discretion, may impose excess water usage fees on the Property for the period of excess usage. (d) Failure to correct excessive outdoor irrigation water use may result in a seven (7) day Notice of Disconnection, at the sole discretion of the Authority or other enforcement action commenced by the Authority and/or Town. Page 8 of 20 Colorado World Resorts (e) The Town has the right, but not the obligation, to enforce the provisions of this Article and may take such action as permitted or authorized by law, this Agreement or the ordinances of the Town, as the Town deems necessary to protect the public health, safety and welfare. ARTICLE VI MAINTENANCE AND ONGOING OBLIGATIONS 6.1 Operations and Maintenance. The Owner understands and acknowledge that those certain aspects of the maintenance, operation and use of the Development, including drainage, infrastructure, landscaping, and sidewalks (“Owner Maintained Public Improvements”), as delineated on Sheets C1.0 – C6.0 of the Development Plan and incorporated herein, require maintenance by Owner. (a) Except in the event such liability arises from the action or omission of Town or its officials, agents, representatives, employees, inspectors, including independent third-party inspectors, contractors, and successors and assigns, but without waiving governmental immunity, the Owner agrees that the Town is not liable, and will not assume any liability, responsibility, or costs for any damage, maintenance, or repair of any Owner Maintained Public Improvements erected or maintained by the Owner under this Agreement. (b) If the Owner fails to maintain the Owner Maintained Public Improvements, the Town may perform the necessary maintenance and/or repair, as determined by the Town in its sole discretion, after providing at least thirty (30) days written notice to the Owner detailing the necessary maintenance and/or repair. If, after the remedy period set in the notice, the Owner fails to perform the necessary maintenance and/or repair, the Town may perform such maintenance and/or repair. The actual costs of the maintenance and/or repair, together with a fifteen percent (15%) charge for administration, shall be assessed against the Property. The Town shall send a notice of assessment to the Owner and upon the expiration of the thirty (30) period provided in such notice, the costs, including the administrative charge, shall be a lien upon the Property. If the assessment is not paid within thirty (30) days of the lien, the Town may impose interest upon such costs and upon the administrative charge, at the rate of eighteen percent (18%) per year. All costs, interest and charges, including the costs of collection, may be certified to the County Treasurer and collected in the same manner as taxes. ARTICLE VII SUBDIVISION 7.1 Future Subdivision. Before acceptance of the Public Improvements, the Owner shall submit a complete application for a subdivision of land pursuant to the Code. Easements for Public Improvements shall be provided for public pedestrian usage of the sidewalk, and for the usage of the stormwater and drainage improvements for their intended purposes. 7.2 Timeshare Amenities Fee. Though not currently permitted, in the event future zoning provides for such use, if any portion of the property is turned into timeshare intervals, vacation Page 9 of 20 Colorado World Resorts membership or other similar program, the applicable amenity fee per timeshare interval as set forth in Exhibit A hereto shall be paid by the Owner for each interval period created e.g., if one week intervals, then for each week or, if calendar quarter intervals, then for each calendar quarter. Such fee shall be due prior to the conveyance of the first timeshare interest is sold to a third party. ARTICLE VIII RESTORATION OF SITE 8.1 Restoration Due to Inactivity. Unless a building permit extension is granted in writing by the building official upon justifiable cause demonstrated by the Owner, the building permit shall become invalid after 180 days of suspended work. If the building permit becomes invalid, the Owner shall restore the site to the condition the site was in at the time of issuance of the building permit (subject to changes reasonably necessary for public safety or preservation of land and adjoining land, or to prevent waste) within thirty (30) days from the date of notice by the Town that restoration is required. Upon restoration of the Property in accordance with this Article and to the reasonable satisfaction of the Town, this Agreement shall automatically terminate. 8.2 Restoration Funds. The Town currently holds funds deposited by the Owner in the amount of $209,475.00 as security for any possible future required restoration. If the obligation to restore arises (i.e., if the permit becomes invalid) and if the Owner thereafter fails to restore the Property in compliance with this Article and to the Town’s satisfaction, the Town may use such funds to cover the costs of any required restoration work. The Town shall maintain an accounting of such costs and once restoration work is completed, the Town shall return any remaining funds along with such accounting. If the funds are insufficient to perform the restoration work, the Owner, upon demand from the Town, shall deposit additional required funds as determined by the Town. If the Owner fails to provide such funds, the Town’s costs of restoration over the amount of funds current held, shall be a lien upon the Property to be collected in the same manner as property tax and the Town may certify such amount to the County Assessor for collection, including an additional 10% imposed by the Town for costs of collection. 8.3 Return of Funds. After the issuance of a final Certificate of Occupancy, the Town shall refund the restoration funds to the Owner. ARTICLE IX DEFAULTS, REMEDIES AND TERMINATION 9.1 Default by Town. A “breach” or “default” by the Town under this Agreement shall be defined as the Town’s failure to perform its obligations under this Agreement, after the applicable cure period described in Section 9.3, below. 9.2 Default by Owner. A “breach” or “default” by the Owner shall be defined as the Owner’s failure to fulfill or perform any obligation of the Owner contained in this Agreement following the applicable cure period described in Section 9.3, below, or the Owner’s failure to fulfill or perform any obligation of the Owner contained in any other written agreement relating to the Property between the Town and the Owner or the Town following any applicable cure period contained in such agreement. The failure by the Owner to cause the Association to collect and Page 10 of 20 Colorado World Resorts remit the timeshare amenities fee to the Town as provided in Section 7.2 shall constitute a default by the Owner. 9.3 Notices of Default. In the event of a default by either Party under this Agreement, the non-defaulting Party shall deliver written notice to the defaulting Party of such default, at the address specified in Section 11.6, and the defaulting Party shall have five (5) days for monetary obligations and thirty (30) days for non-monetary obligations from and after receipt of such notice to cure such default. With respect to non-monetary obligations, if such default is not of a type that with the exercise of reasonable diligence can be cured within such thirty (30) day period and the defaulting Party gives written notice to the non-defaulting Party within such thirty (30) day period that it is actively and diligently pursuing such cure, the defaulting Party shall have a reasonable period of time up to one hundred eighty (180) days given the nature of the default to cure such default, provided that such defaulting Party is at all times within such additional time period actively and diligently pursuing such cure. 9.4 Remedies for Default by Town. If a default by Town under this Agreement is not cured as described in Section 9.3, the Owner shall have the right to enforce the Town’s obligations by an action for any equitable remedy, including, without limitation, injunction or specific performance or an action to recover damages. Each remedy in this Section 9.4 is cumulative and is in addition to every other remedy provided for in this Agreement or otherwise existing at law or in equity. 9.5 Remedies for Default by the Owner or Association. If any default by the Owner or the Association under this Agreement is not cured as described in Section 9.3, the Town shall have the right to enforce the Owner’s or the Association’s obligations hereunder by an action for any equitable remedy, including injunction or specific performance, or an action to recover damages. Each remedy in this Section 9.5 is cumulative and is in addition to every other remedy provided for in this Agreement or otherwise existing at law or in equity. In addition, if a default of this Agreement by the Owner or the Association also constitutes a violation of the Code and non- compliance with the Development Plan for this Property then the Town shall have all enforcement rights as described in the Code and other applicable sections of the Code concerning enforcement and penalties for violations, as the Code may be amended from time to time. 9.6 Mediation. The Parties agree that prior to submitting any controversy or claim arising out of or relating to this Agreement, including, without limitation, any breach, default, or interpretation hereof, to a legal process, and as a prerequisite to initiating any legal process, the Parties shall attempt to resolve the controversy or claim in good faith in accordance with the procedures stated in this Section 9.6. The Party asserting the breach, default, controversy, or claim shall first provide written notice to the other Party, citing this Section 9.6, and requesting consideration by the other Party to resolve the controversy or claim. The Parties shall use reasonable efforts to resolve the dispute within thirty (30) days from the date of the notice commencing this process. If the dispute is not resolved within thirty (30) days of the date of the notice, or by such longer period as may be mutually agreed by the Parties, then either Party may initiate a legal action. At any time after the written notice citing Section 9.6, the Parties may mutually agree to appoint an independent neutral third party (the “Mediator”) to assist them in resolving the dispute. In such an instance, (i) each Party agrees to provide the Mediator access to Page 11 of 20 Colorado World Resorts all relevant and non-privileged documents and may impose reasonable confidentiality provisions; (ii) the Parties may make representations and submissions to the Mediator but there shall be no formal hearing unless the Mediator requires a formal hearing and provides a written notice to the Parties; (iii) the Mediator shall make his recommendations in writing as soon as is reasonably possible but not later than thirty (30) days following the receipt of representations and submissions by each Party; (iv) the Mediator’s recommendation shall not be binding upon the Parties, but would become binding upon the Parties if voluntarily accepted by both Parties in writing; and (v) the fees of the Mediator shall be paid equally by the Parties. Following receipt by the Parties of the recommendations made by the Mediator, the Parties shall have ten (10) days, or such longer period as may be mutually agreed by the Parties, to accept said recommendation or a mutually acceptable alternative. Submission of the dispute to the Mediator shall be deemed by the Parties to toll the applicable statute of limitations until the mediation process is concluded. ARTICLE X ASSOCIATION MATTERS 10.1 The Owner shall form the Association upon completion of the Development and prior to any occupancy thereof; provided, however, that in the event that the Association has not been formed as required, the Owner shall be liable for all obligations of the Association hereunder until such time as the Association is formed. 10.2 In addition to the rights and obligations of the Association, as specifically stated in this Agreement, at such a time as the Association is formed, except for any right of Owner to a refund of any deposit or other monetary security held by Town hereunder, the Association shall be deemed to be the Owner with respect to the provisions, rights, and obligations of this Agreement. The provisions of any other Section of this Agreement necessary to give effect to the Association’s rights and obligations under the foregoing Articles and Sections shall also be deemed to control. The Association shall indemnify and hold harmless the Town for Owner Maintained Public Improvements. The Association Governing Documents will contain a provision stating that the Association shall be subject to this Agreement as provided herein, and recite the Association’s obligations in this Agreement, including the obligation to indemnify the Town, as described herein. In addition, the Association Governing Documents shall state that the Town is a limited third-party beneficiary solely for the purpose of enforcing the performance of the Association’s agreements under Section 4.1 and Article VI of this Agreement. 10.3 The Association Governing Documents will contain an acknowledgement and disclosure to each owner of a time-share in the Development (“Time-share Owner”) that, in the event the Time-share Owner shall rent its time-share period, the Time-share Owner or its rental management company must obtain a Town business license and the Public Accommodations Tax shall apply to such rental as described in the Code. 10.4 Any failure of the Association Governing Documents to contain provisions required by this Agreement shall be a default by the Owner and the Association under this Agreement, and the Town shall be entitled as a remedy therefor to obtain an order for reformation of the Association Governing Documents so that they are in compliance with this Agreement. Page 12 of 20 Colorado World Resorts ARTICLE XI MISCELLANEOUS 11.1 Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Colorado. 11.2 No Joint Venture or Partnership. No form of joint venture or partnership exists between the Town and the Owner, and nothing contained in this Agreement shall be construed as making the Town and the Owner joint venturers or partners. 11.3 Applicability of Avon Municipal Code. All matters not covered by this Agreement are controlled by the Code to the extent applicable. This Agreement does not prevent the Town from imposing additional requirements not inconsistent with this Agreement as conditions for approval of a subdivision or the granting of a building permit. 11.4 Waiver. No waiver of one or more of the terms of this Agreement shall be effective unless in writing. No waiver of any provision of this Agreement in any instance shall constitute a waiver of such provision in other instances. 11.5 Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect so long at the intent of this Agreement is not frustrated. 11.6 Notices. Any notice or communication required or permitted under the terms of this Agreement shall be in writing, may be given by the Parties hereto or such Party’s respective legal counsel, and shall be deemed given and received (i) when hand delivered to the intended recipient(s), by whatever means; (ii) three (3) business days after the same is deposited in the United States Mail, with adequate postage prepaid, and sent by registered or certified mail, with return receipt requested; (iii) one (1) business day after the same is deposited with an overnight courier service of national reputation having a delivery area encompassing the address of the intended recipient, with the delivery charges prepaid; or (iv) when received via electronic mail to intended recipient’s electronic mail address, provided below. Any notice shall be delivered, mailed, or sent, as the case may be, to the appropriate address set forth below: If to Town: Town of Avon Attention: Town Manager P.O. Box 975 Avon, Colorado 81620 Telephone: 970-748-4005 Email: eheil@avon.org And: Town of Avon Attention: Paul Wisor 0070 Benchmark Road, Unit 104 PO Box 5450 Page 13 of 20 Colorado World Resorts Email: pwisor@garfieldhecht.com If to Owner: Colorado World Resorts, LLC 6460 S Quebec St, Building 5, Centennial, CO 80111 Attn: Ranko Mocevic And: Les Roos Leslie J. Roos, LLC 303-916-7145 5555 DTC Parkway Suite 340 Greenwood Village, Colorado 80111 Email: les@lesroos.com Each Party may change its addresses and/or email addresses for notices pursuant to a written notice that is given in accordance with the terms hereof. As used herein, the term “business day” shall mean any day other than a Saturday, a Sunday or a legal holiday for which U.S. Mail service is not provided. Whenever any date or the expiration of any period specified under this Agreement falls on a day other than a business day, then such date or period shall be deemed extended to the next succeeding business day thereafter. 11.7 Amendment of Agreement. For the purpose of any amendment to this Agreement, “Owner” shall mean only the Owner as defined herein and those parties, if any, who have specifically been granted, in writing by the Owner, the power to enter into such amendments. No amendment to this Agreement shall be valid unless signed in writing by Owner and Town. 11.8 Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest or the legal representatives of the Parties hereto. The Owner shall have the right to assign or transfer all or any portion of its interests, rights or obligations under this Agreement: (a) to the Association; and (b) to an entity or entities formed for the purpose of developing the Property which are managed by an affiliate of the Owner and comprised of affiliates of the Owner. Further, the Owner shall have the right to assign or transfer all or any portion of its interests, rights or obligations under this Agreement to third parties acquiring an interest or estate in the Property, including, but not limited to, purchasers or long-term ground lessees of individual lots, parcels, or of any improvements now or hereafter located within the Property. Notwithstanding the forgoing, any assignee shall fully assume in writing all obligations of the Owner assigned to such assignee and Owner must obtain the Town’s written consent to such assignment, which consent will not be unreasonably withheld or delayed if the Owner has reasonably demonstrated to the Town that the assignee has the financial capability to perform the obligations under this Agreement so assigned. In no event shall any time-share Owner be individually liable for any obligations of the Owner or the Association pursuant to this Agreement. Nothing in this Section shall be deemed to limit or in any way restrict the sale or other conveyance of property within the Property. Page 14 of 20 Colorado World Resorts 11.9 Counterparts. This Agreement shall be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Any electronically delivered counterparts shall have the same force and effect as an “ink-signed” original. 11.10 No Waiver of Governmental Immunity. Nothing in this Agreement shall be construed to waive, limit, or otherwise modify any governmental immunity that may be available by law to the Town, its officials, employees, contractors, or agents, or any other person acting on behalf of the Town and, in particular, governmental immunity afforded or available pursuant to the Colorado Governmental Immunity Act, Title 24, Article 10, Part 1 of the Colorado Revised Statutes.. [SIGNATURE PAGE FOLLOWS] Page 15 of 20 Colorado World Resorts IN WITNESS WHEREOF, the Owner and the Town have executed this Agreement as of the date first written above. TOWN: By:__________________________________ Sarah Smith Hymes, Mayor ATTEST ___________________________________ Brenda Torres, Town Clerk OWNER: By:____________________________________ Its:____________________________________ STATE OF COLORADO ) ) ss. COUNTY OF ___________ ) Acknowledged before me this _______ day of _________________, 20__, by ________________________ as _________________________________ of COLORADO WORLD RESORTS, LLC., a Colorado corporation, on behalf of the corporation. My commission expires: _________________ ______________________ Notary Public As to Article V of the Agreement only: AUTHORITY: ATTEST: , Secretary EXHIBIT A AMMENITY FEES Amenities Fee. Commencing as of a first-time sale and conveyance of a Fractional Interest to a third-party purchaser and continuing in perpetuity with respect to such Fractional Interest, the Owner or property owner's association for any Fractional Interest Ownership subdivision within the Colorado World Resorts condominium project ("Association") is obligated to collect from each Fractional Interest Owner and remit to the Town on a semi-annual basis an Amenities Fee in the initial amount of $39.30 per year per Fractional Interest or the equivalent if conveyed in some Fractional Interest other than a one-week period. The Owner is exempt from the obligation for the Amenities Fee until the first-time sale of a Fractional Interest. The provisions for the obligation for each Fractional Interest Owner to pay shall be a covenant running with the land and reflected accordingly on the Resubdivision Plat and Association covenants. Prior to the assignment of this Agreement to an Association, the Owner shall be obligated to collect and remit any and all Amenities Fees. The amount of the semi-annual payments will be calculated according to the following formula: Number of existing or newly deeded fractional interests per semiannual period (January- June, calculated as of June 1, and July-December calculated as of December 1), multiplied by an amount equivalent to $39.30 per weekly interest (as adjusted by CPI-U, as defined below), divided by 2. The due dates for the semiannual payment are August 20 and February 20 for the previous semiannual calculation period. On January 1, 2020, and on the first day of each year thereafter, the amount of the fee shall be increased, but not decreased, by the percentage increase from the prior year average consumer price index for All Urban Consumers for the Denver-Boulder-Greeley metropolitan area as published semiannually and appearing in the January and July issues of the CPI Detailed. Report published by the Bureau of Labor Statistics (the "CPI-U"). In the event that the CPI-U remains the same as the prior year or decreases from the prior year, the amount of the fee shall not be adjusted for that year. It shall be the duty of the Association to keep and preserve such records as are necessary to determine the amount of fees due hereunder. Such records shall be preserved for a period of three years and shall be open for inspection by representatives of the Town during regular business hours. Prior to the formation of the Association, the Owner shall have the above-referenced obligation to keep and preserve such records. If a remittance to the Town is delinquent, or the remittance is less than the full amount due, the Town shall make a written demand of the amount due and deliver or mail the same to the office of the Association. The amount properly determined to be owing shall bear interest from the due date Page 17 of 20 Colorado World Resorts of the remittance at the rate of one and one-half percent per month until paid. Prior to formation of the Association such written demand will be delivered to the Owner. Page 1 of 20 Colorado World Resorts DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT (“Agreement”) is made and entered into as of _________________, 2019, by and between COLORADO WORLD RESORTS, LLC., a Colorado limited liability corporation (“Owner”), and the Town of Avon, a home rule municipal corporation of the State of Colorado (“Town”) (Owner and Town may be referred to individually as “Party” and collectively as “Parties”), and, as to Article V of this Agreement only, UPPER EAGLE REGIONAL WATER AUTHORITY, a quasi-municipal corporation and political subdivision of the State of Colorado (“Authority”). RECITALS A. The Owner owns approximately 21.52 acres within the Town that is legally described as: 38388 Highway 6, Town of Avon, County of Eagle, State of Colorado as is also described in the Quit Claim Deed recorded in the Eagle County Clerk and Recorder’s office at Reception Number 201803580 (“Property”). B. The Owner submitted an application to the Town for approval of a Major Design and Development application for a condominium project referred to as Colorado World Resorts (“Application”). C. After holding a public hearing on September 18, 2018, the Town of Avon Planning and Zoning Commission approved the Application conditioned upon the execution of this Agreement prior to a building permit. D. The Application includes a Landscape Plan and Irrigation Plan, which includes a limited irrigated area and drought tolerant species. E. The Application includes public improvements that necessitate further review, warranty, and acceptance upon satisfactory completion. F. Development of the Property in accordance with this Agreement will provide for orderly growth in accordance with the policy and goals set forth in the Town’s Comprehensive Plan; ensure reasonable certainty, stability and fairness in the land use planning process; stimulate economic growth; secure the reasonable investment-backed expectations of the Owner; foster cooperation between the public and private sectors in the area of land use planning; and otherwise achieve the goals and purposes of the Town. AGREEMENT NOW, THEREFORE, in consideration of the recitals set forth above, the terms, conditions, covenants and mutual promises set forth in this Agreement, and other good and valuable Page 2 of 20 Colorado World Resorts consideration, the receipt and sufficiency of which are hereby acknowledged, the Owner and the Town agree as follows with respect to the development of the Property: ARTICLE I DEFINITIONS Definitions. The following terms shall have the meanings set forth below unless the context in which they are used clearly indicates otherwise: 1.1 Association. The common interest community association and/or other entity formed or to be formed for purposes of governing the rights, obligations and interests of owners of Time- Share Interests and other interests in the Development upon completion of construction thereof. Certain provisions relating to the rights and obligations of the Association are provided in Article X of this Agreement. 1.2 Association Governing Documents. The declaration of covenants, articles of incorporation, bylaws, rules and regulations, and any other documents creating or governing the Association and its members, as in existence from time to time. 1.3 Development. The project to be constructed on the Property as described in the Development Plan. 1.4 Development Plan. The approved Major Design and Development Plan is made part of the land use approval for the Development Plan. 1.5 Development Plan Components. The following plan set sheets contained in the Development Plan are incorporated by reference into and made a part of this Agreement: [Sheet C1.0 – C6.0] Public Property Improvement Map [Sheets L1.0-L3.0 & IR1.0-IR1.3} Landscape Plan & Irrigation Plan [Sheets C1.0 – C6.0] Owner Maintained Public Improvements 1.6 Exhibits. The following Exhibit is to this agreement is incorporated by reference and made part of this Agreement: Exhibit A Amenity Fees 1.7 Landscape & Irrigation Plan. The approved Landscape Plan and Irrigation Plans, Sheets L1.0-L3.0 & IR1.0-IR1.3of the Development Plan, is made part of the land use approval for the Development Plan. 1.8 Municipal Code. The Avon Municipal Code, including the Avon Development Code, as may be amended from time to time. 1.9 Public Improvements. Those improvements to be acquired, constructed or installed for the benefit of the public, including, but not limited to, the Public Improvements described in Article IV and in the Public Property Improvement Map. Page 3 of 20 Colorado World Resorts 1.10 Public Property Improvement Map. The approved Public Property Improvement Map, Sheets C1.0 – C6.0of the Development Plan, is made part of the land use approval for the Development Plan. 1.11 ROW. “ROW” shall mean that certain public right of way as described in the Development Plan. 1.12 Term. The term of this Agreement as provided in Article III. ARTICLE II DEVELOPMENT PLAN 2.1 Development Plan. The Development Plan sets forth the approved scope of development of the Property and has been approved by the Town through action by the Town of Avon Planning and Zoning Commission. 2.2 Compliance with General Regulations. The approval of the Development Plan and this Agreement shall not preclude the application of Town ordinances and regulations, or state or federal laws and regulations, which are general in nature and are applicable to all property subject to land use regulation by the Town, including, but not limited to, building, exterior energy offset, fire, plumbing, electrical and mechanical codes, as all such regulations exist on the date of this Agreement or may be enacted or amended after the date of this Agreement. ARTICLE III TERM 3.1 Term. The term of this Agreement shall be for so long as the building which comprises the Development continues to exist and for five (5) years after such time the building that comprises the Development is no longer in existence on the Property. In the event the building which comprises the Development is destroyed by fire or other calamity and then reconstructed within five (5) years, such reconstructed building shall be deemed the building that comprises the Development and this Agreement shall continue in full force and effect until five (5) years after the reconstructed building no longer exists. The Parties may terminate this Agreement earlier by mutual agreement. ARTICLE IV PUBLIC IMPROVEMENTS 4.1 Public Improvements. The Owner agrees to construct and install the public improvements set forth in this Agreement (the “Public Improvements”). Such obligations directly relate to the Application complying with the minimum required development standards set forth in the Code and are material to the terms, conditions, covenants and mutual promises bargained for by Town and the Owner in this Agreement. The Owner shall install or cause to be installed all Public Improvements that the Owner is required to construct in a good and workmanlike manner in accordance with the applicable regulations of the Town and applicable Utilities, as defined below, and in accordance with this Agreement. Page 4 of 20 Colorado World Resorts (a) Utility Improvements. The Owner agrees to install all utility improvements as described in the Development Plan. (b) Drainage Improvements. The Owner shall install drainage improvements for stormwater control and quality as described in the Development Plan. (c) Sidewalk. The Owner shall install the sidewalk adjacent to Highway 6 running the length of the project, as described the Development Plan. (d) Turn Lanes. The Owner shall install turn lanes off Highway 6, as described in the Development Plan. 4.2 Timing of Public Improvements. The Owner shall complete the Public Improvements and the Town shall have provided written notification of acceptance of the Public Improvements from the Town (the “Town’s Notification of Acceptance”) on or before the date of completion of the Development. The date of completion of the Development shall be defined as the date that the Owner receives from the Town a Temporary Certificate of Occupancy for the Development. The Owner shall inform the Town of all construction plans within Town property and within the ROW at least ninety (90) days prior to the start of construction that is to occur within Town property or the ROW. If the Owner has not received the Town’s Notification of Acceptance from the Town of all Public Improvements, the Town may withhold the issuance of a Temporary Certificate of Occupancy. 4.3 Warranty Period. The Public Improvements constructed and installed by the Owner shall be warranted to be free from defects in material, workmanship orand quality for a period of two (2) years after the date of the Town Notification of Acceptance (the “Warranty Period”). In the event of any such defect arising during the Warranty Period, the Town may require the Owner to correct the defect in material or, workmanship or quality. Ten percent (10%) of the total actual cost of completion of all Public Improvements to be installed and constructed by the Owner shall be collected by the Town from the Owner as security during such two (2) year period as the improvement warranty pursuant to Code § 7.32.100, as may be amended. In the event any corrective work with respect to the material, workmanship and quality is performed during the Warranty Period then the warranty on said corrected work with respect to the material, workmanship and quality shall be extended for two (2) years from the date on which it is completed. Security equal to 125% of the cost of any corrected work with respect to the material, workmanship and quality, as estimated by the Town, shall be retained by the Town or immediately paid to the Town by the Owner, if sufficient funds are not held by the Town, in accordance with Code § 7.32.100, for a period of two (2) years from the date of completion of the corrected work. 4.4 Engineering Certification. Upon completion of portions of the Public Improvements to be installed and constructed by the Owner, the Owner will cause its engineers (who shall have been actively engaged in observing to a commercially reasonable degree the construction of the Public Improvements and who are licensed in the State of Colorado) to provide a written opinion. The written opinion shall be in form and content reasonably satisfactory to the Town’s Engineer, and based upon on-site observation, review of sufficient construction- observation reports, field test reports, and material test reports and certifications by qualified Page 5 of 20 Colorado World Resorts personnel, shall opine that the installation of the Public Improvements, or portions thereof as may be completed from time to time, have been completed, and that to the best of the opining engineer’s knowledge and professional judgment, the Public Improvements are in conformance with all Standards (as defined below), plans, and specifications as submitted to and previously approved by the Town, or the pertinent utility supplier, as depicted on Sheets C1.0 – C6.0 of the Development Plan. Inspection reports, test results, as-constructed plans, including surveys, and other supporting documentation shall be submitted with the certification. The as-constructed plans shall be submitted on paper and in a digital format, either AutoCad DWG, AutoCad DXF, or ESRI GIS shapefile. 4.5 Inspection Procedures. All Public Improvement work shall be done under the published inspection procedures and standards (collectively, “Standards”) established by the Town, Holy Cross Energy, Eagle River Water and Sanitation District, Upper Eagle Regional Water Authority, Xcel Energy, CenturyLink, Comcast, or any other utility (“Utilities”), as applicable and shall be subject to the reasonable satisfaction of the Town and applicable Utilities. No work shall be deemed complete until the reasonable approval and acceptance of the Public Improvements by the Town or the Utilities. Inspections by the Town and Utilities shall not relieve the Owner or the Owner’s agents from any responsibility or obligation to ensure that all work is completed in conformance with all Standards, plans, and specifications as submitted to and previously approved by the Town and Utilities. (a) Cost of Inspections: The cost, if any, of inspections, by Town employees, or an independent third-party inspector, shall be paid by the Owner. (b) Notice of Non-Compliance: In the event that the Town, through its inspectors, reasonably determines that the Public Improvements to be installed and constructed by the Owner are not in compliance with the Development Plan, it shall give written notice of such non-compliance (“Notice of Non-Compliance”) to the Owner. The Notice of Non-Compliance shall include a narrative describing the unsatisfactory construction work with specific reference to the applicable construction plans and specifications with which the Public Improvements fail to comply. The Notice of Non- Compliance must be provided to the Owner within two (2) working days of the date of the inspection. 4.6 Indemnification and Hold Harmless. The Owner shall indemnify, defend and hold harmless the Town (and its officials, agents, representatives, employees, contractors, and successors and assigns) from all claims, demands, damages (including, without limitation, consequential damages), causes of action, fines, penalties, losses, liability, judgments, costs or expenses (including reasonable attorneys’ fees) resulting from claims for bodily injury (including death) to any person or damage to any property, arising during the construction of the Public Improvements or otherwise arising on the Property or from the Owner’s activities while performing this Agreement (including, without limitation, maintenance, repair and replacement activities), including without limitation any claim that all or any portion of the Public Improvements installed and constructed by the Owner on Town property or ROW constitute a dangerous and/or unsafe condition within a public right-of-way; provided, however, that this indemnity shall not apply to any claims, demands, damages (including, without limitation, consequential damages), causes of action, fines, penalties, losses, liability, Page 6 of 20 Colorado World Resorts judgments, costs or expenses (including reasonable attorneys’ fees) resulting from any act or omission of the Town or its officials, agents, representatives, employees, inspectors, including independent third-party inspectors, contractors, and successors and assigns. 4.7 With respect to Owner’s obligation with respect to and/or any claims arising from the construction or installation of the Public Improvements, all Owner’s or Owner’s contractor’s insurance policies related in any way to the Public Improvements shall be endorsed to include the Town and the Town’s officers and employees as additional insureds/loss payees, applicable within each policy. Every policy covering the Public Improvements shall be primary insurance, and any insurance carried by the Town, its officers, or its employees, or carried by or provided through any insurance pool of the Town, shall be excess and not contributory insurance to that provided by the Owner or the Owner's contractors. No additional insured endorsement to the policy required herein shall contain any exclusion for bodily injury or property damage arising from completed operations. The Owner and its endorsement/additional insured costs, premiums and contractor shall be solely responsible for deductible losses under any policy required above. ARTICLE V WATER PROVISION, WATER USE AND ENFORCEMENT 5.1 Water Rights. The Property has not been allocated water rights by the Town and must dedicate water rights to serve 81 SFEs and irrigate 0.91 acres of landscaped area as required by the Authority or, in the alternative, the Owner shall pay the Authority cash-in-lieu of a water rights dedication. The Owner shall provide proof of dedication or of payment of cash-in-lieu of water rights dedication and proof of water system impact fees in the amount of $[________]$56,379.00 prior to the issuance of a building permit. 5.2 Indoor Water Usage Limit. The Owner shall adhere to an indoor usage water budget of no more than 300 gallons per day, per unit, and shall be responsible for managing use to this limit. Any use in excess of this limit may be subject to an excess use fee as determined by the Authority. Colorado World Resorts Indoor Water Usage Limit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Use per Unit 9.3 8.4 9.3 9 9.3 9 9.3 9.3 9 9.3 9 9.3 110 (kgal) Total existing (kgal) 753.3 680.4 753.3 729.0 753.3 729.0 753.3 753.3 729.0 753.3 729.0 753.3 8870 Page 7 of 20 Colorado World Resorts 5.3 Outdoor Water Usage. (a) The Owner shall install a separate irrigation meter pursuant to Code § 7.28.050(6)(ii)(D). This section establishes a maximum allowable outdoor water use limit for the development to ensure this Development does not exceed its outdoor water allocation as established by the Authority’s Water Dedication Requirement and Water Service Agreement between the Owner and the Authority. During the first two growing seasons, the Owner shall not exceed 639,832 gallons of outdoor water use in any calendar year. Thereafter, the Owner shall not exceed 319,916 gallons of outdoor water use in any calendar year. The following monthly budget is based upon a total irrigated area of 0.91 acres or 39,787 square feet: Colorado World Resorts Outdoor Water Usage Limit May Jun July August September Total Gallons 54,641 71,763 78,060 66,350 49,102 319,916 (b) Outdoor Water Usage on the Property may be curtailed by the Authority during periods of low stream flows, and/or during instream flow calls. Once connected, the Authority will monitor water usage of the Property. 5.4 Enforcement. (a) The Authority, upon determining that the Owner has exceeded the Water Usage Limits prescribed above in this Article, may provide written notice by mail or e- mail to the Owner or its successors and assigns of the violation of this Section and demand that the excessive water usage cease immediately. The Town, in its sole discretion, may also issue a notice under this Section when it has been notified by the Authority that there is a violation of this Article. (b) In the event that the water usage of the Property exceeds the Water Usage Limits in this Article, the Owner shall be obligated to either reduce its water usage to within the Water Usage Limits, or, at the Authority’s sole discretion, pay additional cash in lieu of a water rights dedication fees for the excess water use. If the Authority, in its sole discretion, does not accept an additional cash in lieu of water rights dedication fee, the Owner or its successors and assigns shall be obligated to reduce its water use to the Water Usage Limits in accordance with all remedies set forth in this Agreement. (c) Even if the Owner ceases excessive water usage immediately, the Authority, in its sole discretion, may impose excess water usage fees on the Property for the period of excess usage. (d) Failure to correct excessive outdoor irrigation water use may result in a seven (7) day Notice of Disconnection, at the sole discretion of the Authority or other enforcement action commenced by the Authority and/or Town. Page 8 of 20 Colorado World Resorts (e) The Town has the right, but not the obligation, to enforce the provisions of this Article and may take such action as permitted or authorized by law, this Agreement or the ordinances of the Town, as the Town deems necessary to protect the public health, safety and welfare. ARTICLE VI MAINTENANCE AND ONGOING OBLIGATIONS 6.1 Operations and Maintenance. The Owner understands and acknowledge that those certain aspects of the maintenance, operation and use of the Development, including drainage, infrastructure, landscaping, and sidewalks (“Owner Maintained Public Improvements”), as delineated on Sheets C1.0 – C6.0 of the Development Plan and incorporated herein, require maintenance by Owner. (a) Except in the event such liability arises from the action or omission of Town or its officials, agents, representatives, employees, inspectors, including independent third-party inspectors, contractors, and successors and assigns, but without waiving governmental immunity, the Owner agrees that the Town is not liable, and will not assume any liability, responsibility, or costs for any damage, maintenance, or repair of any Owner Maintained Public Improvements erected or maintained by the Owner under this Agreement. (b) If the Owner fails to maintain the Owner Maintained Public Improvements, the Town may perform the necessary maintenance and/or repair, as determined by the Town in its sole discretion, after providing at least thirty (30) days written notice to the Owner detailing the necessary maintenance and/or repair. If, after the remedy period set in the notice, the Owner fails to perform the necessary maintenance and/or repair, the Town may perform such maintenance and/or repair. The actual costs of the maintenance and/or repair, together with a fifteen percent (15%) charge for administration, shall be assessed against the Property. The Town shall send a notice of assessment to the Owner and upon the expiration of the thirty (30) period provided in such notice, the costs, including the administrative charge, shall be a lien upon the Property. If the assessment is not paid within thirty (30) days of the lien, the Town may impose interest upon such costs and upon the administrative charge, at the rate of eighteen percent (18%) per year. All costs, interest and charges, including the costs of collection, may be certified to the County Treasurer and collected in the same manner as taxes. ARTICLE VII SUBDIVISION 7.1 Future Subdivision. Before acceptance of the Public Improvements, the Owner shall submit a complete application for a subdivision of land pursuant to the Code. Easements for public improvements as defined in Article IVPublic Improvements shall be provided for public pedestrian usage of the sidewalk, and for the usage of the stormwater and drainage improvements for their intended purposes. Page 9 of 20 Colorado World Resorts 7.2 Timeshare Amenities Fee. AtThough not currently permitted, in the event future zoning provides for such time asuse, if any portion of the property is turned into timeshare intervals, vacation membership or other similar program, the applicable amenity fee per timeshare interval as set forth in Exhibit A hereto shall be paid by the Owner for each interval period created e.g., if one week intervals, then for each week or, if calendar quarter intervals, then for each calendar quarter. Such fee shall be due prior to the conveyance of the first timeshare interest is sold to a third party. ARTICLE VIII RESTORATION OF SITE 8.1 Restoration Due to Inactivity. Unless a building permit extension is granted in writing by the building official upon justifiable cause demonstrated by the Owner, the building permit shall become invalid after 180 days of suspended work. If the building permit becomebecomes invalid, the Owner shall restore the site to the condition the site was in at the time of issuance of the building permit (subject to changes reasonably necessary for public safety or preservation of land and adjoining land, or to prevent waste) within thirty (30) days from the date of notice by the Town that restoration is required. Upon restoration of the Property in accordance with this Article and to the reasonable satisfaction of the Town, this Agreement shall automatically terminate. 8.2 Restoration Funds. The Town currently holds funds deposited by the Owner in the amount of $209,475.00 as security for any possible future required restoration. If the obligation to restore arises (i.e., if the permit becomes invalid) and if the Owner thereafter fails to restore the Property in compliance with this Article and to the Town’s satisfaction, the Town may use such funds to cover the costs of any required restoration work. The Town shall maintain an accounting of such costs and once restoration work is completed, the Town shall return any remaining funds along with such accounting. If the funds are insufficient to perform the restoration work, the Owner, upon demand from the Town, shall deposit additional required funds as determined by the Town. If the Owner fails to provide such funds, the Town’s costs of restoration over the amount of funds current held, shall be a lien upon the Property to be collected in the same manner as property tax and the Town may certify such amount to the County Assessor for collection, including an additional 10% imposed by the Town for costs of collection. 8.3 Return of Funds. After the issuance of a final Certificate of Occupancy, the Town shall refund the restoration funds to the Owner. ARTICLE IX DEFAULTS, REMEDIES AND TERMINATION 9.1 Default by Town. A “breach” or “default” by the Town under this Agreement shall be defined as the Town’s failure to perform its obligations under this Agreement, after the applicable cure period described in Section 9.3, below. 9.2 Default by Owner. A “breach” or “default” by the Owner shall be defined as the Owner’s failure to fulfill or perform any obligation of the Owner contained in this Agreement following the applicable cure period described in Section 9.3, below, or the Owner’s failure to Page 10 of 20 Colorado World Resorts fulfill or perform any obligation of the Owner contained in any other written agreement relating to the Property between the Town and the Owner or the Town following any applicable cure period contained in such agreement. The failure by the Owner to cause the Association to collect and remit the timeshare amenities fee to the Town as provided in Section 7.2 shall constitute a default by the Owner. 9.3 Notices of Default. In the event of a default by either Party under this Agreement, the non-defaulting Party shall deliver written notice to the defaulting Party of such default, at the address specified in Section 11.6, and the defaulting Party shall have five (5) days for monetary obligations and thirty (30) days for non-monetary obligations from and after receipt of such notice to cure such default. With respect to non-monetary obligations, if such default is not of a type that with the exercise of reasonable diligence can be cured within such thirty (30) day period and the defaulting Party gives written notice to the non-defaulting Party within such thirty (30) day period that it is actively and diligently pursuing such cure, the defaulting Party shall have a reasonable period of time up to one hundred eighty (180) days given the nature of the default to cure such default, provided that such defaulting Party is at all times within such additional time period actively and diligently pursuing such cure. 9.4 Remedies for Default by Town. If a default by Town under this Agreement is not cured as described in Section 9.3, the Owner shall have the right to enforce the Town’s obligations by an action for any equitable remedy, including, without limitation, injunction or specific performance or an action to recover damages. Each remedy in this Section 9.4 is cumulative and is in addition to every other remedy provided for in this Agreement or otherwise existing at law or in equity. 9.5 Remedies for Default by the Owner or Association. If any default by the Owner or the Association under this Agreement is not cured as described in Section 9.3, the Town shall have the right to enforce the Owner’s or the Association’s obligations hereunder by an action for any equitable remedy, including injunction or specific performance, or an action to recover damages. Each remedy in this Section 9.5 is cumulative and is in addition to every other remedy provided for in this Agreement or otherwise existing at law or in equity. In addition, if a default of this Agreement by the Owner or the Association also constitutes a violation of the Code and non- compliance with the Development Plan for this Property then the Town shall have all enforcement rights as described in the Code and other applicable sections of the Code concerning enforcement and penalties for violations, as the Code may be amended from time to time. 9.6 Mediation. The Parties agree that prior to submitting any controversy or claim arising out of or relating to this Agreement, including, without limitation, any breach, default, or interpretation hereof, to a legal process, and as a prerequisite to initiating any legal process, the Parties shall attempt to resolve the controversy or claim in good faith in accordance with the procedures stated in this Section 9.6. The Party asserting the breach, default, controversy, or claim shall first provide written notice to the other Party, citing this Section 9.6, and requesting consideration by the other Party to resolve the controversy or claim. The Parties shall use reasonable efforts to resolve the dispute within thirty (30) days from the date of the notice commencing this process. If the dispute is not resolved within thirty (30) days of the date of the notice, or by such longer period as may be mutually agreed by the Parties, then either Party may Page 11 of 20 Colorado World Resorts initiate a legal action. At any time after the written notice citing Section 9.6, the Parties may mutually agree to appoint an independent neutral third party (the “Mediator”) to assist them in resolving the dispute. In such an instance, (i) each Party agrees to provide the Mediator access to all relevant and non-privileged documents and may impose reasonable confidentiality provisions; (ii) the Parties may make representations and submissions to the Mediator but there shall be no formal hearing unless the Mediator requires a formal hearing and provides a written notice to the Parties; (iii) the Mediator shall make his recommendations in writing as soon as is reasonably possible but not later than thirty (30) days following the receipt of representations and submissions by each Party; (iv) the Mediator’s recommendation shall not be binding upon the Parties, but would become binding upon the Parties if voluntarily accepted by both Parties in writing; and (v) the fees of the Mediator shall be paid equally by the Parties. Following receipt by the Parties of the recommendations made by the Mediator, the Parties shall have ten (10) days, or such longer period as may be mutually agreed by the Parties, to accept said recommendation or a mutually acceptable alternative. Submission of the dispute to the Mediator shall be deemed by the Parties to toll the applicable statute of limitations until the mediation process is concluded. ARTICLE X ASSOCIATION MATTERS 10.1 The Owner shall form the Association upon completion of the Development and prior to any occupancy thereof; provided, however, that in the event that the Association has not been formed as required, the Owner shall be liable for all obligations of the Association hereunder until such time as the Association is formed. 10.2 In addition to the rights and obligations of the Association, as specifically stated in this Agreement, at such a time as the Association is formed, except for any right of Owner to a refund of any deposit or other monetary security held by Town hereunder, the Association shall be deemed to be the Owner with respect to the provisions, rights, and obligations of this Agreement. The provisions of any other Section of this Agreement necessary to give effect to the Association’s rights and obligations under the foregoing Articles and Sections shall also be deemed to control. The Association shall indemnify and hold harmless the Town for Owner Maintained Public Improvements. The Association Governing Documents will contain a provision stating that the Association shall be subject to this Agreement as provided herein, and recite the Association’s obligations in this Agreement, including the obligation to indemnify the Town, as described herein. In addition, the Association Governing Documents shall state that the Town is a limited third-party beneficiary solely for the purpose of enforcing the performance of the Association’s agreements under Section 4.1 and Article VI of this Agreement. 10.3 The Association Governing Documents will contain an acknowledgement and disclosure to each owner of a time-share in the Development (“Time-share Owner”) that, in the event the Time-share Owner shall rent its time-share period, the Time-share Owner or its rental management company must obtain a Town business license and the Public Accommodations Tax shall apply to such rental as described in the Code. 10.4 Any failure of the Association Governing Documents to contain provisions required by this Agreement shall be a default by the Owner and the Association under this Agreement, and the Page 12 of 20 Colorado World Resorts Town shall be entitled as a remedy therefor to obtain an order for reformation of the Association Governing Documents so that they are in compliance with this Agreement. ARTICLE XI MISCELLANEOUS 11.1 Applicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of Colorado. 11.2 No Joint Venture or Partnership. No form of joint venture or partnership exists between the Town and the Owner, and nothing contained in this Agreement shall be construed as making the Town and the Owner joint venturers or partners. 11.3 Applicability of Avon Municipal Code. All matters not covered by this Agreement are controlled by the Code to the extent applicable. This Agreement does not prevent the Town from imposing additional requirements not inconsistent with this Agreement as conditions for approval of a subdivision or the granting of a building permit. 11.4 Waiver. No waiver of one or more of the terms of this Agreement shall be effective unless in writing. No waiver of any provision of this Agreement in any instance shall constitute a waiver of such provision in other instances. 11.5 Severability. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect so long at the intent of this Agreement is not frustrated. 11.6 Notices. Any notice or communication required or permitted under the terms of this Agreement shall be in writing, may be given by the Parties hereto or such Party’s respective legal counsel, and shall be deemed given and received (i) when hand delivered to the intended recipient(s), by whatever means; (ii) three (3) business days after the same is deposited in the United States Mail, with adequate postage prepaid, and sent by registered or certified mail, with return receipt requested; (iii) one (1) business day after the same is deposited with an overnight courier service of national reputation having a delivery area encompassing the address of the intended recipient, with the delivery charges prepaid; or (iv) when received via electronic mail to intended recipient’s electronic mail address, provided below. Any notice shall be delivered, mailed, or sent, as the case may be, to the appropriate address set forth below: If to Town: Town of Avon Attention: Town Manager P.O. Box 975 Avon, Colorado 81620 Telephone: 970-748-4005 Email: eheil@avon.org And: Town of Avon Page 13 of 20 Colorado World Resorts Attention: Paul Wisor 0070 Benchmark Road, Unit 104 PO Box 5450 Email: pwisor@garfieldhecht.com If to Owner: Colorado World Resorts, LLC 6460 S Quebec St, Building 5, Centennial, CO 80111 Attn: Ranko Mocevic And: Les Roos Leslie J. Roos, LLC 303-916-7145 5555 DTC Parkway Suite 340 Greenwood Village, Colorado 80111 Email: les@lesroos.com Each Party may change its addresses and/or email addresses for notices pursuant to a written notice that is given in accordance with the terms hereof. As used herein, the term “business day” shall mean any day other than a Saturday, a Sunday or a legal holiday for which U.S. Mail service is not provided. Whenever any date or the expiration of any period specified under this Agreement falls on a day other than a business day, then such date or period shall be deemed extended to the next succeeding business day thereafter. 11.7 Amendment of Agreement. For the purpose of any amendment to this Agreement, “Owner” shall mean only the Owner as defined herein and those parties, if any, who have specifically been granted, in writing by the Owner, the power to enter into such amendments. No amendment to this Agreement shall be valid unless signed in writing by Owner and Town. 11.8 Assignment. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest or the legal representatives of the Parties hereto. The Owner shall have the right to assign or transfer all or any portion of its interests, rights or obligations under this Agreement: (a) to the Association; and (b) to an entity or entities formed for the purpose of developing the Property which are managed by an affiliate of the Owner and comprised of affiliates of the Owner. Further, the Owner shall have the right to assign or transfer all or any portion of its interests, rights or obligations under this Agreement to third parties acquiring an interest or estate in the Property, including, but not limited to, purchasers or long-term ground lessees of individual lots, parcels, or of any improvements now or hereafter located within the Property; provided, however, that. Notwithstanding the third partyforgoing, any assignee shall fully assumesassume in writing all obligations of the Owner assigned to such partyassignee and Owner must obtain the Town consents in writingTown’s written consent to such third party assignment, which consent will not be unreasonably withheld or delayed if the Owner has reasonably demonstrated to the Town that the third party assignee has the financial capability to perform the obligations under this Page 14 of 20 Colorado World Resorts Agreement so assigned. In no event shall any Timetime-share Owner be individually liable for any obligations of the Owner or the Association pursuant to this Agreement. Nothing in this Section shall be deemed to limit or in any way restrict the sale or other conveyance of property within the Property. 11.9 Counterparts. This Agreement shall be executed in multiple counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Any electronically delivered counterparts shall have the same force and effect as an “ink-signed” original. 11.10 No Waiver of Governmental Immunity. Nothing in this Agreement shall be construed to waive, limit, or otherwise modify any governmental immunity that may be available by law to the Town, its officials, employees, contractors, or agents, or any other person acting on behalf of the Town and, in particular, governmental immunity afforded or available pursuant to the Colorado Governmental Immunity Act, Title 24, Article 10, Part 1 of the Colorado Revised Statutes.. [SIGNATURE PAGE FOLLOWS] Page 15 of 20 Colorado World Resorts IN WITNESS WHEREOF, the Owner and the Town have executed this Agreement as of the date first written above. TOWN: By:__________________________________ Sarah Smith Hymes, Mayor ATTEST ___________________________________ Brenda Torres, Town Clerk OWNER: By:____________________________________ Its:____________________________________ STATE OF COLORADO ) ) ss. COUNTY OF ___________ ) Acknowledged before me this _______ day of _________________, 20__, by ________________________ as _________________________________ of COLORADO WORLD RESORTS, LLC., a Colorado corporation, on behalf of the corporation. My commission expires: _________________ ______________________ Notary Public As to Article V of the Agreement only: AUTHORITY: ATTEST: , Secretary EXHIBIT A AMMENITY FEES Amenities Fee. Commencing as of a first-time sale and conveyance of a Fractional Interest to a third-party purchaser and continuing in perpetuity with respect to such Fractional Interest, the Owner or property owner's association for any Fractional Interest Ownership subdivision within the Colorado World Resorts condominium project ("Association") is obligated to collect from each Fractional Interest Owner and remit to the Town on a semi-annual basis an Amenities Fee in the initial amount of $39.30 per year per Fractional Interest or the equivalent if conveyed in some Fractional Interest other than a one-week period. The Owner is exempt from the obligation for the Amenities Fee until the first-time sale of a Fractional Interest. The provisions for the obligation for each Fractional Interest Owner to pay shall be a covenant running with the land and reflected accordingly on the Resubdivision Plat and Association covenants. Prior to the assignment of this Agreement to an Association, the Owner shall be obligated to collect and remit any and all Amenities Fees. The amount of the semi-annual payments will be calculated according to the following formula: Number of existing or newly deeded fractional interests per semiannual period (January- June, calculated as of June 1, and July-December calculated as of December 1), multiplied by an amount equivalent to $39.30 per weekly interest (as adjusted by CPI-U, as defined below), divided by 2. The due dates for the semiannual payment are August 20 and February 20 for the previous semiannual calculation period. On January 1, 2020, and on the first day of each year thereafter, the amount of the fee shall be increased, but not decreased, by the percentage increase from the prior year average consumer price index for All Urban Consumers for the Denver-Boulder-Greeley metropolitan area as published semiannually and appearing in the January and July issues of the CPI Detailed. Report published by the Bureau of Labor Statistics (the "CPI-U"). In the event that the CPI-U remains the same as the prior year or decreases from the prior year, the amount of the fee shall not be adjusted for that year. It shall be the duty of the Association to keep and preserve such records as are necessary to determine the amount of fees due hereunder. Such records shall be preserved for a period of three years and shall be open for inspection by representatives of the Town during regular business hours. Prior to the formation of the Association, the Owner shall have the above-referenced obligation to keep and preserve such records. If a remittance to the Town is delinquent, or the remittance is less than the full amount due, the Town shall make a written demand of the amount due and deliver or mail the same to the office of the Association. The amount properly determined to be owing shall bear interest from the due date Page 17 of 20 Colorado World Resorts of the remittance at the rate of one and one-half percent per month until paid. Prior to formation of the Association such written demand will be delivered to the Owner. 970.748.4004 eric@avon.org TO: Honorable Mayor Smith Hymes and Council FROM: Eric Heil, Town Manager RE: Letter Approving Deferral of Community Park Construction in the Village (at Avon) DATE: August 21, 2019 SUMMARY: Traer Creek and the Upper Eagle Regional Water Authority (“UERWA”) recently settled litigation related to the Traer Creek Water Storage Tank failure. The settlement allows UERWA to proceed with demolition of the failed storage tank and reconstruct a new storage tank. Traer Creek and UERWA have entered into various agreements to accomplish this project, including a license agreement to use a portion of Planning Area – P3, which is the site of a planned “community park.” Planning Area – P3 is on the north side of I-70 and is shown on a diagram below. The period of the license agreement extends potentially as long as December 31, 2025 if additional work or warranty repair work is needed. Traer Creek is willing to provide the license agreement requested by UERWA, but has concerns that additional development in the Village (at Avon) may trigger the obligation of Traer Creek to commence construction of 50% of the community park, which Traer Creek may not be able to do if the site is still in use as a staging site for the Traer Creek water storage tank construction. Traer Creek has requested a letter from the Town affirming that the Town will defer the obligation to construct 50% of the community park until after the Traer Creek water storage tank is complete and Planning Area P3 is no longer used for staging for the water storage tank construction. The water storage tank is essential infrastructure that must be completed. The water storage tank failure and reconstruction was not contemplated when the Community Park obligation was established in the original 1998 Village (at Avon) PUD guide. The actual language is recited below for convenience. A draft letter is attached this report for your consideration. Page 2 of 2 RECOMMENDATION: I recommend approval of the letter. Completion of the water storage tank is essential and required infrastructure for the Village (at Avon) and is also beneficial the redundancy of the water system throughout the Avon area. It is speculative as to whether the trigger to construct the park would actually occur during the timeframe that the water storage tank construction project is using Planning Area P3 for staging. Also, there are no existing plans, designs or minimum requirements for the community park in Planning Area P3 nor is there current demand, so there is time to determine appropriate community park construction plans. The motion is simple and the draft letter contains specific detail on the extent of deferring the requirement to construct 50% of the community park. PROPOSED MOTION: I move to approve the letter to Traer Creek agreeing to defer the requirement to construct 50% of the community park on Planning Area P3. Thank you, Eric Planning Area P3 is on north side of the Post Blvd. & I-70 Interchange Post Office Box 975 100 Mikaela Way Avon, CO 81620 Traer Creek, LLC Sent VIA to: MarcusLindholm@traercreek.com MichaelLindholm@traercreek.com August 27, 2019 RE: Deferral of Requirement to Construct 50% of Community Park Dear Marcus and Michael, The Avon Town Council finds that the construction of the Traer Creek water storage tank is very important for the Village (at Avon) and that efficient and cost effective construction requires the use of Planning Area P3 for staging. In the interest of cooperating and facilitating the efforts of Traer Creek and the Upper Eagle River Water Authority to complete this water storage tank project, the Avon Town Council voted at its regular Council meeting on August 27, 2019 to approve a deferral of commencement of the construction of 50% of the community park on Planning Area P3 as required in section 16 of the Supplement Regulations of the Village (at Avon) PUD Guide until as late as December 31, 2023 if the Town’s obligation to issue a certificate of occupancy for the 601st Dwelling Unit with the Property occurs and if Planning Area P3 is still subject to a license agreement allowing use by the Upper Eagle River Water Authority as a staging site for construction of the Traer Creek water storage tank. This letter shall serve as the Town of Avon’s agreement and representation to the deferral of the requirement to commence construction of 50% of the community park as described herein. This letter shall not otherwise alter the obligations set forth in the Village (at Avon) PUD guide and shall not be construed to otherwise accelerate the obligation to commence construction of 50% of the community park on Planning Area P3 if the Town has not yet issued a certificate of occupancy 601 Dwelling Units within the Property. Sincerely, Sarah Smith Hymes Mayor, Town of Avon 970.748.4004 eric@avon.org TO: Honorable Mayor Smith Hymes and Council FROM: Eric Heil, Town Manager RE: Water System Impact Fee Increase DATE: August 21, 2019 SUMMARY: The Upper Eagle River Water Authority (“UERWA”) has provided a notice of a proposed Water System Impact Fee increase. Paragraph 23 of the 2015 Amended and Restated Authority Service Agreement states that an increase of the Plant Investment Fee (aka “Water System Impact Fee”) requires the unanimous vote or consent of all Authority Board Members and requires 45 days prior notice to the UERWA members. A complete report from Jason Cowles is attached to this report. The last rate increase was in 2014. The proposed residential rate increase for Tier 1 is from $4.08 to $4.96 per square foot, or a 21.5% increase (which is an average of 4.3% per year since 2014), which would increase the Water System Investment Fee (“WSIF”) for a 2,500 sq.ft. home from $10,200 to $12,398. The average residential dwelling size decreased over the last 5 years from 2,500 sq.ft. to 2,200 sq.ft.; therefore, the Plant Investment Fee Update states that the average WSIF for a single-family equivalent residence would increase from $10,200 to $10,910, or 6.9%. Residential - Based on Square Feet Floor Area Tiers Square Feet in Tier Current Price Per Square Foot Current Tier Total Proposed Price Per Square Foot Proposed Tier Total Tier 1 0 - 2,500 $ 4.08 $ 10,200 $ 4.96 $ 12,398 Tier 2 2,501 - 3,500 $ 5.02 $ 5,020 $ 6.20 $ 6,199 Tier 3 3,501 - 5,000 $ 6.12 $ 9,180 $ 7.75 $ 11,623 Tier 4 5,001+ $ 7.85 Overage $ 9.69 Overage Commercial - Based on Meter Size Proposed vs Current ¾" Meter (1.5 SFE) 1" Meter (2.6 SFE) 1½"Meter (5.8 SFE) 2" Meter (10.3 SFE) 3" Meter (23.0 SFE) 4" Meter (40.9 SFE) 6" Meter (92.1 SFE) Current Rate $15,265 $26,457 $59,019 $104,809 $236,100 $416,187 $937,185 Proposed Rate $16,366 $28,367 $63,280 $112,377 $250,940 $446,236 $1,004,850 OPTIONS: Support the WSIF rate increase, defer for more information, or reject the WSIF rate increase. RECOMMENDATION: Support the WSIF rate increase because Avon has directly benefitted from available capacity (see the Marginal Cost Approach on page 3 of rate update report) and will benefit from future capacity to serve higher density redevelopment in Avon’s core (see page 4 of rate update report). PROPOSED MOTION: “I move to direct Avon’s representative to the Upper Eagle River Water Authority to vote in favor of and/or consent to the Water System Impact Fee increase recommended in the June 27, 2019 memorandum from Jason Cowles.” Thank you, Eric ATTACHMENT: UERWA Water System Impact Fee Increase Report MEMORANDUM TO: Upper Eagle Regional Water Authority Board of Directors FROM: Jason Cowles DATE: June 27, 2019 RE: Notice of Proposed UERWA Water System Impact Fee Increase At the May Board meeting Staff was directed to prepare an update to the Authority’s Water System Impact Fee (WSIF, formerly Plant Investment Fee). The 2015 Amended and Restated Authority Service Agreement requires that: “Any proposal to increase to the Plant Investment Fee shall be introduced at least forty-five (45) days prior to the date of its approval by the Board of Directors and written notice of such change shall be given to all of the Authority Board Members at the time of introduction. Adoption of the increased Plant Investment Fee shall require a unanimous vote or consent of all the Authority Board Members.” Accordingly, Staff is introducing the proposed impact fee increase with this memorandum and will request formal action from the Board at the August 22, 2019 meeting. The Authority’s WSIF is an impact fee charged to new customers that creates equity in the financing of the water system’s current and planned future assets by requiring that new customers pay for their allocation of system capacity at the time of connection. The methodology for calculating the WSIF was developed in 2001 by THC Utility Management Specialists. The 2001 study created a framework for periodic evaluations and adjustments of the Authority’s WSIF. The WSIF has historically been increased annually at the rate of the Denver/Boulder consumer price index (CPI). These annual CPI adjustments recognize the time value of money invested in the system but fail to capture and adequately recoup investments in new capital assets and capital improvements in the system. In 2014, Staff updated the WSIF utilizing the framework developed by THC. The proposed 2019 update to the WSIF was performed by our Rate Analyst, Seth Perry, and uses the methodology and framework established in the past to evaluate the current WSIF rate. The conclusion of the analysis is that the Authority should consider increasing the current WSIF. The current fee is designed to recoup on average $10,200 per single family equivalent (SFE). Staff is proposing an increase in the fee to recoup on average $10,910 per SFE. This increase is attributed to significant capital investment in the water system since the 2014 update. The Authority’s WSIF is assessed to new residential customers based upon square footage. At the time of the 2014 update, the fee was structured to recoup the per SFE value based upon a 2,500 square foot residence. Staff has reviewed WSIF assessments over the past 10 years and determined that the average SFE assessed has decreased from 2,500 square feet to 2,200 square feet. We expect this trend to continue as demand for smaller more affordable housing units increases and the availability of vacant land for large lot, single-family home developments declines, thus Staff is proposing an adjustment to the assessment structure to account for this trend. A comparison of the current assessment structure to the proposed assessment structure for new residential customers is presented in Table 1 and a comparison for new commercial customers is presented in Table 2. Notice of Proposed UERWA Water System Impact Fee Increase Page 2 of 2 Table 1 - Proposed Assessment Structure for Residential Customers Residential - Based on Square Feet Floor Area Tiers Square Feet in Tier Current Price Per Square Foot Current Tier Total Proposed Price Per Square Foot Proposed Tier Total Tier 1 0 - 2,500 $ 4.08 $ 10,200 $ 4.96 $ 12,398 Tier 2 2,501 - 3,500 $ 5.02 $ 5,020 $ 6.20 $ 6,199 Tier 3 3,501 - 5,000 $ 6.12 $ 9,180 $ 7.75 $ 11,623 Tier 4 5,001+ $ 7.85 Overage $ 9.69 Overage Table 2 - Proposed Assessment Structure for Commercial Customers Commercial - Based on Meter Size Proposed vs Current ¾" Meter (1.5 SFE) 1" Meter (2.6 SFE) 1½"Meter (5.8 SFE) 2" Meter (10.3 SFE) 3" Meter (23.0 SFE) 4" Meter (40.9 SFE) 6" Meter (92.1 SFE) Current Rate $15,265 $26,457 $59,019 $104,809 $236,100 $416,187 $937,185 Proposed Rate $16,366 $28,367 $63,280 $112,377 $250,940 $446,236 $1,004,850 Further detail on the assumptions, methodology and calculations used to arrive at the updated WSIF can be found in the attached draft UERWA Water System Investment Fee Update Report. If you have any further questions or need additional information regarding the proposed WSIF increase, please let me know. Attachments: • Draft UERWA Water System Impact Fee Update Report dated June 19, 2019 Plant Investment Fee Update June 27, 2019 i Table of Contents Overview .................................................................................................................................... 1 Introduction ............................................................................................................................ 1 Background ............................................................................................................................ 1 Relevant Legislation and Case Law ........................................................................................ 2 Methodologies ........................................................................................................................ 2 Water System Impact Fee Calculation ....................................................................................... 3 System Capacity .................................................................................................................... 4 Existing Assets ....................................................................................................................... 5 Contributed Capital ................................................................................................................. 6 Water Resources .................................................................................................................... 6 Work-In-Progress ................................................................................................................... 8 Water System Master Plan ..................................................................................................... 9 Master Planned System Improvements ............................................................................... 9 New Capacity Projects .......................................................................................................10 Water System Impact Fee .....................................................................................................10 Recommendations ....................................................................................................................12 Works Cited ..............................................................................................................................13 Tables Table 1 – Total Estimated Value of Existing Assets ................................................................... 6 Table 2 – WSIF Eligible Water Rights ........................................................................................ 8 Table 3 – Total Estimated Costs of Work-In-Progress ................................................................ 9 Table 4 – Recommended Residential Water System Impact Fee ..............................................11 Table 5 – Recommended Commercial Water System Impact Fee ............................................11 Appendices Appendix A – Existing Assets by Category Appendix B – Contributed Capital Assets Appendix C – Appraisal of the Water Rights of the Upper Eagle Regional Water Authority Appendix D – Work-in-Progress Appendix E – Master Plan Recommended Projects Appendix F – Capital Budget Projects Appendix G – Plant Investment Fee Summary Appendix H – 2019 Upper Eagle Regional Water Authority Connection Fees 1 Overview Introduction The Water System Impact Fee (WSIF) of the Upper Eagle Regional Water Authority (Authority) is a one-time impact fee assessed to new customers at the time of their initial connection to the water system, intended to recover the customer’s share of the costs to develop the system. The current WSIF framework was developed in 2001 by THC Utility Management Specialists, Inc. (THC) after Colorado Revised Statutes were amended to adopt more restrictive requirements governing the assessment of impact fees by local governments. The WSIF was last updated by Staff in 2014. This study employs the philosophy and methodology established by THC, and approved by the Authority Board of Directors using more current data and assumptions to determine whether the current WSIF rate is adequate to meet its intended purpose. The current effort to update the WSIF has been prepared and reviewed by a committee of District Staff including: Seth Perry, Rate Analyst; Jason Cowles, Engineering Manager; and James Wilkins, Director of Finance. Background The Authority’s WSIF is a one-time impact fee that is assessed to new customers at the time of their initial connection to the water system. The WSIF is intended to recover the capital costs incurred by the Authority to construct and finance available capacity in the water system. As a result of the WSIF, existing customers are compensated for the capital investments in existing facilities that include excess capacity available for future growth. This philosophy is in keeping with the Authority’s Policy that growth should pay for growth. The WSIF fee is structured to recover capital investments in the regional water system assets, which are assigned to the following categories: supply, treatment, transmission and distribution (T&D), treated water storage, water resources, and general assets. Localized system components that are required to serve new development are typically constructed and financed by the Developer and conveyed to the Authority as a condition of the Authority providing water service to new development. The capital investment in these localized contributed capital assets inherently does not require recovery through the WSIF. Two underlying philosophies were applied by THC in the development of the Authority’s WSIF: 1. The fee should represent the unit cost of water system capacity that is allocated to a new customer when that user connects to the system (Hartman, 2006). 2. New customers “buy into” a water system that current customers have developed over time through the payment of user charges, contributions, and other up-front fees, therefore the WSIF should be structured such that it represents the purchase of a share of equity in the system thereby placing new customers on an equal footing with existing rate payers (Hartman, 2006). 2 Relevant Legislation and Case Law WSIFs may also be referred to as “tap fees”, “system capacity charges”, “impact fees”, “system buy-in fees”, “capital recovery fees”, or “system development charges” (American Water Works Association, 2012). Colorado has historically allowed local governments to recoup capital costs through impact fees but has only provided limited statutory guidance on how impact fees should be determined. The Authority’s WSIF was last updated in 2001 after Colorado Revised Statutes were amended to adopt more restrictive requirements governing the assessment of impact fees charged by local governments. Colorado Revised Statutes require that: (a) the fee must be legislatively adopted by the local government; (b) the fee shall be generally applicable to a broad class of property; (c) the magnitude of the fee shall be reasonably related to the impact of the new development; and (d) no landowner shall be required to provide any site-specific improvements or dedications to meet the same needs as those for which the fee is imposed (Hartman, 2006). While Colorado Revised Statutes do not provide specific legislative guidance for local governments to utilize in the development of impact fees, there have been legal challenges to impact fees in Colorado and other states that have established a legal precedent for use in the development of these fees. Legal precedent essentially requires that a “rational nexus” must exist between the impact fee and the benefit to the development that the fee is intended for. The impact fee must be proportional to the impact of development on the water system, which is typically defined in terms of capacity, and the Authority must provide benefit to the development in the form of water treatment and distribution. The Colorado Supreme Court established further legal precedence in their ruling on the Krupp vs. Breckenridge Sanitation District Case which also found that the fee must be: (a) reasonably related to the cost of providing necessary facilities; (b) rationally based and fairly calculated (but need not be mathematically precise); and (c) consistently and reasonably applied (Krupp vs Breckenridge Sanitation District, 2001). Methodologies There are several accepted methods that may be applied as a rational basis for the calculation of the Authority’s WSIF. THC presented a comparison of several methodologies for consideration by the Board, including: Equity Buy-In, Unit Replacement Cost, and the Marginal Cost Approach. The methodology that was previously adopted by both the Authority and the District boards is the Cost Attribution method, which is a hybrid approach that combines the Unit Replacement and Marginal Cost methods (Hartman, 2006). Unit Replacement Cost methodology considers the present replacement value of the existing water system’s assets. For this study, the historical capital costs to construct and improve the Authority’s water system assets were escalated to current replacement value using the Engineering News Record (ENR) Denver Construction Cost Index, which tracks historical costs of labor and materials in the Denver area. Unit Replacement Cost methodology does not consider accumulated depreciation of the assets. The unit replacement cost method was favored by the board for determining the value of existing assets because it recognizes the on- going investments made by existing customers to maintain system capacity and functionality that future customers will benefit from. Contributed capital assets are excluded from the 3 calculation to avoid charging for developer contributions of assets that were made at no cost to the Authority. The total replacement costs of the Authority’s assets are then divided by the system’s capacity to arrive at a unit cost for system capacity. This method recognizes the significant value of the available capacity that has been developed in the Authority’s existing facilities. The Marginal Cost Approach considers cost estimates for the construction of future growth- related capital investments that add capacity to or improve the water system. The planned capital investments in near-term projects that increase the capacity of the system are divided by the net increase in capacity that will be realized. This method recognizes the planned capital investment in developing new capacity to serve growth. The disadvantage of the Marginal Cost Approach is that it fails to recognize the value of excess capacity in the existing facilities that can provide benefit to future customers. Typically, a water utility, such as the Authority, may choose to build excess capacity in its facilities for the purpose of serving new development, as was the case with the Avon Drinking Water Facility. On the other hand, the Unit Replacement Cost approach fails to recognize planned near-term investments in facilities that will benefit future customers. It is common for a water utility, such as the Authority, to have excess capacity in some system components (e.g., water treatment) while also facing capacity deficits in other system components that are planned for upgrades (e.g., treated water storage). Therefore, strictly applying either the Unit Replacement Cost or Marginal Cost approach would not adequately define the true capacity of the Authority’s water system for the purpose of determining an impact fee (Hartman, 2006). The inadequacies of the Unit Replacement Cost and Marginal Cost methods can be addressed by combining them into a hybrid approach called Cost Attribution Methodology. Cost Attribution results in a WSIF calculation that includes a “reimbursement” component for available capacity in the existing water system and an “improvement” component for planned capital investments in future system capacity (Hartman, 2006). This method was previously approved by the Authority’s Board of Directors for the calculation of the WSIF and is applied for this update of the WSIF. Plant Investment Fee Calculation Calculation of the Authority WSIF using the Cost Attribution method involves several steps. First, system capacity is established by forecasting the number of single-family equivalents (SFEs) that the system will serve in the future at build-out. This number will be used to determine the denominator for the various components of the WSIF. Next, the replacement value of the water system’s current assets and Work-In-Progress is established. This is necessary to determine the cost of capacity in the existing water system that future development will benefit from. The WSIF component for these existing assets is established by dividing the resulting asset value by the total number of SFEs that the system is anticipated to serve at build out and allocating a share of these assets to existing customers. The unallocated share of the existing system is the share available to serve new development. The estimated costs of planned improvements to the existing water system are similarly divided amongst 4 existing customers and new development and allocated between the two user classes. Next, a price component is calculated for future improvements that are anticipated to add capacity to serve new development. The total estimated cost of those capacity improvements is divided by the anticipated number of future SFEs that will be added to the water system to determine the capacity expansion component of the WSIF. The WSIF component values for the existing water system, planned improvements, and future capacity expansions are subsequently added to arrive at a fee that considers the value of existing available capacity as well as capital investment in future system capacity. System Capacity The Authority measures system capacity in terms of the number of SFEs that can be served by its water system. The Authority’s Rules and Regulations define an SFE as a multiplier that is used to quantify the impact of a Customer’s water use on the system. By December of 2018, the Authority’s water system was serving a total of 16,721 SFE’s. Two sources of future SFE forecasts were considered in the development of this study to determine the number of SFE’s that will be added to the water system as it continues to build out to its ultimate capacity. The first source of SFE forecasts is the “Authority’s Water Master Plan Update,” prepared in 2009 by SGM, Inc. The Master Plan Update was prepared to evaluate the Authority’s water system and recommend capital improvements that will be necessary to provide capacity for anticipated growth within the Authority’s service area and to meet evolving regulatory and operational requirements. SGM worked with Town of Avon and Eagle County planning staffs to perform a detailed analysis of current land zoning and future up-zoning requests that were anticipated in order to create planning estimates for the number of SFE’s at build-out of the Authority’s service area. SGM then used historical customer meter reading data to project average and maximum day water demand per SFE by subdivision and customer class in order to forecast build-out water demands. The meter reading data that was analyzed and presented by SGM demonstrates that peak day residential demand in lower density subdivisions where larger residential units exist are substantially higher per SFE than subdivisions where higher density, smaller residential units exist. This is likely attributed to the higher irrigation demand of large residential lots. SGM’s Master Plan Update forecasts a total of 23,259 SFEs at build out (Schmueser Gorden Meyer, Inc., 2009). The other source of SFE forecasts is a November 2014 draft of the “UERWA – Future SFE Update” prepared by the Authority’s financial consultant, Stan Bernstein and Associates, Inc. (SBA). The SFE forecasts by SBA are prepared for the purpose of modeling Authority revenues over the next 10 years. SBA currently projects that the Authority’s water system will serve a total of 19,553 SFE’s in the year 2025 (Greer, 2014). It is important to note major differences between the two sources of SFE forecasts. The SGM SFE forecast is intended to determine the maximum build-out potential of the Authority’s service area for the purpose of planning future capital investments in the water system to serve the future build-out. SGM’s SFE forecast speculates that significant up-zoning and redevelopment will occur, particularly in the Town of Avon’s core, where the zoning designations of currently developed properties support much higher density than what is currently developed. By nature, 5 the SGM forecast is conservatively high to ensure that the Authority’s investments in the water system infrastructure will be adequate to serve future build-out. The SBA forecasts are intended to forecast revenues from the WSIF for financial planning purposes. Unlike the SGM SFE forecast, the SBA forecast does not speculate on any future up-zoning. Conversely, the SBA forecasts are conservatively low to ensure that the Authority’s revenues will be adequate to meet its financial obligations. It is believed that the likely number of total SFEs that the Authority’s water system will serve at full build-out lies somewhere within the range of these two forecasts. In order to estimate where the total number of SFEs at future build-out will fall within that range, historical SFE growth rates were analyzed. In 2014, a 15-year period from 1999 to 2014 was selected as the representative sample because of its inclusion of periods of both rapid growth during economic booms and stagnant growth during recessions. Over that 15-year period, an average SFE growth rate of 2.13% per year was observed. By projecting the observed SFE growth rate of 2.13% per year forward over the next 15-years, it was estimated that 22,424 SFEs will be served by the system by the year 2029. To maintain the 15-year time horizon of the 2014 study, the projection of 22,424 SFEs was increased by the observed growth from January 2015 to April 2019 of 462 SFEs. The extended SFE capacity projection was calculated to be 22,886 SFEs. This projected SFE total is used as the capacity denominator for the recommended WSIF update. Existing Assets The Authority’s water system has developed into the existing Regional water system that serves customers located between Dowd Junction and Cordillera via the consolidation of several localized water systems that were previously owned, operated and maintained by the various member Districts and contracting Districts of the Authority. In some instances, capital assets were contributed at no cost to the Authority by the Member Districts, the Contracting Districts, or by Developers seeking to receive water service from the Authority. The Authority also made investments into capital assets to complete the regionalization of the water system, the most significant being the Avon Drinking Water Facility. One of the key benefits of this regionalization effort was to create a broader customer base to keep the costs of capital investment, operations, and maintenance down, as smaller localized systems tend to have higher per user costs to operate and maintain. The Authority’s booked asset records were reviewed to identify historical capital investments in the regional water system. These capital assets were assigned to categories based upon type: 1. Supply: This category includes facilities for raw water conveyance to treatment facilities and groundwater wells. 2. Treatment: This category includes surface drinking water treatment facilities and appurtenances. 3. Transmission and Distribution (T&D): This category generally includes water mains and appurtenances for the transmission and distribution of drinking water, as well as booster pump stations and pressure reducing valves that convey drinking water between the various pressure zones in the Authority’s water system. 6 4. Treated Storage: This category includes drinking water storage tanks and appurtenances. 5. General Assets: This category includes land assets. Using the Unit Replacement Cost methodology, the value of each existing asset was escalated to the current Replacement Cost New (RCN) as of December 2018, using ENR’s Denver Construction Cost Index. The spreadsheets detailing these asset categories and calculations are presented in Appendix A. Table 1 – Total Estimated Value of Existing Assets summarizes the total estimated RCN value of the Authority’s existing assets in each of these categories. These assets benefit current and future customers and are therefore divided amongst existing customers and future development to determine the existing assets component of the WSIF. Since the 2014 study there has been a considerable increase in the asset value of the Authority. The causes of this have been improvements to the system, new construction necessary to serve new developments, and an increase in the costs of construction which under the RCN valuation increases the value of all existing assets. Table 1 – Total Estimated Value of Existing Assets Asset Category 2014 Estimated Value of Assets (RCN) 2019 Estimated Value of Assets (RCN) General $ 780,962 $ 1,255,733 Supply $ 1,498,353 $ 4,927,610 Transmission & Distribution $ 11,837,313 $ 19,932,747 Treated Storage $ 7,909,271 $ 9,275,434 Treatment $ 48,627,591 $ 55,984,159 TOTAL $ 70,653,490 $ 91,375,682 Contributed Capital As previously noted, a significant portion of the Authority’s existing capital assets were contributed at no cost by the Member Districts, the Contracting Districts, or by Developers seeking to receive water service from the Authority. These assets have been booked as contributed capital. There are no recoverable costs associated with these assets; therefore, they have been excluded from the WSIF calculation. A detailed listing of the Authority’s contributed capital assets is included in Appendix B. Water Resources The Authority’s Water Rights portfolio was evaluated to determine which of these assets should be included in the WSIF calculation as existing assets. The Authority’s water rights portfolio consists of owned and leased in-basin consumptive use credits, in-basin reservoir storage for augmentation, and out-of-basin contract storage for augmentation. The Authority’s existing water rights are believed to be adequate to serve the full build-out at current zoning of the Authority’s service area; although additional rights, including storage, are intended to be 7 acquired to provide additional physical supplies to reduce the effects of drought, other interruptions to water supply, and zoning changes. A January 2018 appraisal of the Authority’s Water Rights Portfolio prepared by the Authority’s water counsel, Porzak Browning and Bushong LLP is included in Appendix C. The Authority’s portfolio of in-basin consumptive use credits includes the rights to 2,109.2 acre- feet of water. These in-basin consumptive use credits are largely made up of historical irrigation season consumptive use credits that have either been dedicated to the Authority as a condition of water service for new development or leased to the Authority by its Member Districts at no cost as a condition of water service. An additional portion of the in-basin consumptive use credits in the Brett and Creamery ditches were purchased by the Authority for the benefit of current and future customers due to their seniority. For the purposes of the WSIF calculation, the Authority’s portfolio of in-basin consumptive use credits is specifically limited to the 184.46 acre-feet of credits that have been purchased by the Authority. The Authority’s portfolio includes a contractual storage right with ERWSD to use 200 acre-feet of in-basin storage that is released from the Black Lakes. Though the Authority has the right to use the 200 acre-feet, it cannot command the release of this water to correspond with out-of- priority depletions caused by its diversions; therefore, the Black Lakes Lease is assigned no value in the Authority’s Water Rights Portfolio and is excluded from the WSIF calculation. Authority policy requires that new development dedicate an adequate amount of augmentation water for out-of-priority depletions that are necessary to serve the development. This requirement is applied to up-zonings within the Authority’s service area and new inclusions of property into the Authority’s service area boundary. Where required, this obligation is satisfied through the dedication of acceptable water rights to the Authority, or by making a cash payment in-lieu of dedicating water rights. The cash-in-lieu payment is for the allocation of the Authority’s consumptive use credits and storage necessary to augment depletions caused by the development. The Authority’s storage in Eagle Park, Homestake, Wolford Mountain and Green Mountain Reservoirs has primarily been developed to augment diversions made by the Authority that are necessary to provide water service. The storage in these reservoirs provides further benefit in its ability to protect the Authority’s water supply from the effects of drought and other interruptions; to satisfy senior downstream calls; to offset evaporation and transit losses; to maintain minimum stream flows during in-stream flow calls, thus enhancing the value of the water rights leased to the Authority by its members. The investment by the Authority to develop, maintain and lease these storage rights improves the reliability and quality of the water resources used by the Authority’s current and future customers. Therefore, the appraised value of the Authority developed storage in these reservoirs is included in the calculation of the WSIF. A summary of the water rights included in the WSIF calculation is presented in Table 2 – WSIF Eligible Water Rights. 8 Table 2 – WSIF Eligible Water Rights Water Right Quantity (acre feet) WSIF Eligible (acre feet) 2019 Price per acre foot (4) 2014 Appraised Value of PIF Eligible Water Rights 2019 Appraised Value of WSIF Eligible Water Rights Eagle Park Reservoir 579 579 $ 35,000 $ 14,475,000 $ 20,265,000 Homestake Reservoir 256.5 256.5 $ 35,000 $ 6,412,500 $ 8,977,500 Black Lakes Lease (1) 200 200 $ - $ - $ - Green Mtn. Res. contract 548 548 $ 1,500 $ 548,000 $ 822,000 Wolford Mtn. Res. contract 710.8 710.8 $ 3,625 $ 2,331,424 $ 2,576,650 In-basin consumptive use (2) 2,109.20 184.46 $ 9,000 $ 1,457,234 $ 1,660,140 Beaver Creek (summer) (3) 215 0 $ 9,000 $ - $ - Beaver Creek (winter) (3) 17 0 $ 35,000 $ - $ - TOTAL $ 25,224,158 $ 34,301,290 Notes: (1) The Authority has no control over the timing or quantity of releases from the Black Lakes, therefore this lease has no value. (2) The Authority has a right to 2,109.20 acre-feet of In-basin consumptive use credits which have either been dedicated to the Authority, leased to the Authority at no cost, or were purchased by the Authority. The in-basin consumptive use credits that have been purchased by the Authority, making them WSIF eligible, include 45.03 acre-feet in the Creamery Ditch and 149.18 acre-feet in the Brett Ditch. The Authority has received a cash-in-lieu payment for 9.75 acre-feet of the Brett Ditch consumptive use credits from St. Clare of Assisi. Therefore, the total of Brett Ranch credits that are WSIF eligible is 139.43 acre-feet. (3) Beaver Creek's water rights are leased at no cost to the Authority. (4) Price per acre-foot values obtained from January 31, 2018 "Appraisal of the Water Rights of the Upper Eagle Regional Water Authority", by Porzak, Browning & Bushong LLP. Work-In-Progress In addition to its booked assets, the Authority has budgeted for assets that are either currently under construction or planned for construction in the near-term. These Work-In-Progress items were obtained from the Authority’s 2018 “Fixed Asset Summary” and are presented in detail in Appendix D. Similarly to booked assets, the Work-In-Progress has been assigned to component categories based upon the asset classes. A review of the Work-In-Progress items indicates that these improvements benefit current and future customers and are therefore divided amongst existing and future customers to determine the Work-In-Progress component of the WSIF. Table 3 – Total Estimated Costs of Work-In-Progress summarizes the total estimated costs of Work-In-Progress by asset category. 9 Table 3 – Total Estimated Costs of Work-In-Progress Work-in-Progress by Asset Category 2014 Total Estimated Cost of Work-In-Progress ($) 2019 Total Estimated Cost of Work-In-Progress ($) General $ 1,866,814.38 $ 534,157.65 Supply $ 7,024,035.09 $ 362,171.46 T&D $ 12,801,889.50 $ 1,164,682.63 Treated Storage $ 1,070,293.95 $ 1,624,142.45 Treatment $ 3,651,400.88 $ 453,717.14 Total $ 26,414,433.80 $ 4,138,871.33 Water System Master Plan and Capital Budget The Authority’s Water System Master Plan Update (Master Plan) was prepared in 2009 by SGM, Inc. In the preparation of the Master Plan, SGM anticipated and modeled future build-out conditions within the Authority’s service area. From this modeling effort, a prioritized list of Capital Improvement Projects was developed. Additionally, since the development of the Master Plan the Authority has identified new projects that are required to improve the current system and serve future growth. These projects are contained in the Capital Budget. Projects from both the Master Plan and Capital Budget fall into two categories: Planned System Improvements and New Capacity Projects. These projects are treated differently for the purpose of the WSIF calculation depending upon which category they fall into. Spreadsheet detailing the recommended Master Plan System Improvement and Capital Budget projects, including their categorization as either improvements, capacity have been included in Appendix E and Appendix F respectively. Considering that the Master Plan was prepared in 2009, all of the estimated costs presented in the Master Plan for projects that have not yet been completed have been escalated to 2018 values using the ENR Denver Construction Cost Index. Note that there are recommended projects in the Master Plan that require the extension of main lines to serve new customers that are located outside of the Authority’s service area. Under the Authority’s main line extension policy, these extensions to serve new development would be paid for by the development and dedicated to the Authority as contributed capital as a condition of service. Thus, these specific projects have been excluded from the WSIF calculation. System Improvements The projects that are classified as System Improvements are betterments that are necessary to meet regulatory and/or safety requirements, improve system reliability and/or redundancy, or to preserve overall system capacity. While these projects do not increase the overall capacity of the Authority’s water system, they do provide benefit to current and future customers, and add overall value to the various components of the water system. Therefore, these projects are divided amongst existing and future customers to determine the System Improvements component of the WSIF. 10 New Capacity Projects The Master Plan and Capital Budget also identify several new capacity projects which increase capacity within certain components of the system to allow for future service to new development. Notable projects in this category are new High Zone Pumps at the Avon Drinking Water Facility and transmission line upgrades at both the Avon and Edwards Drinking Water Facilities. These projects are recommended in order to support increased finished water pumping rates from the two treatment facilities as the Authority’s service area builds out and will primarily be driven by the need to serve future development that is expected in the Avon and Edwards areas. These improvements increase capacity within the system in order to serve future growth, and thus provide direct benefit to future customers. These improvements would not be necessary if no further growth were anticipated. Therefore, the estimated costs of these capacity expansions are only divided amongst the future anticipated SFE’s to determine the new capacity component of the WSIF. Current Master Planning Efforts The previous Master Plan was completed approximately ten years ago, and Staff is currently preparing a new master plan for the Authority’s water system that is anticipated for completion late in 2019. When that plan is complete, there may be a need for an update to this portion of the WSIF study. Water System Impact Fee Using Cost Attribution Methodology to evaluate the Authority’s existing water system assets, planned improvements, and planned capacity additions to the water system, the recommended rate for the Authority’s WSIF can be established using the projected total of 22,886 SFE’s in the year 2034. The recommended WSIF rate is $10,910 per SFE. A WSIF Calculation Summary Table is included in Appendix G. The Authority’s WSIF is collected at the time that a customer connects to the water system and is assessed based upon the customer’s classification as either a residential or commercial user. For residential customers the impact is assessed relative to the size of the residence and is determined by measuring the floor plans of new residential construction, or residential additions, to verify the square footage of the residence. The residential WSIF rate per square foot is tiered such that the larger residential homes pay a higher rate per square foot than smaller homes. This tiered rate structure is supported by the SGM Water Master Plan Update, which demonstrates, as previously noted, that lower density subdivisions with larger residential homes have a significantly higher peak day demand per SFE than subdivisions with smaller, high density residential units. In effect, the impact to the water system, measured in gallons used per SFE, increases with the size of a residential unit. For this reason, it is recommended that the tiered approach for assessing the WSIF for residential customers be continued. The WSIF for commercial customers is determined by meter size. A plumbing fixture count for commercial use is provided by the customer to size the water meter, and an equivalent number of SFEs are attributed based upon the water demand that the meter can accommodate. SFEs for mixed use residential and commercial buildings are calculated using a hybrid of the residential and commercial approaches. 11 In the 2014 study, it was determined that a typical new SFE averaged 2,500 square feet. A similar analysis of new SFEs was conducted for this study, and it was determined that recent development has favored smaller units. Over the past ten years of WSIF collections data, the average square footage per SFE is roughly 2,200 square feet. When determining the square foot price, the per SFE price is divided by the expected square feet per SFE. Staff determined that using the 2,200 square feet per SFE metric is more reflective of the expected future development characteristics and the WSIF should reflect this expectation. The 2019 Authority Connection Fee Schedule is included in Appendix H. It is therefore recommended that the new rate for Tier 1 residential be based upon the recommended WSIF rate of $10,910 per SFE, and that the remaining tiers be established accordingly to match the existing tier distribution. It is further recommended that commercial rates be established by multiplying the equivalent SFE’s attributed to the meter sizes by the proposed rate of $10,910 per SFE. Table 4 summarizes the Recommended WSIF rate for residential and Table 5 summarizes the recommended WSIF rate for commercial customers. Table 4 - Recommended Residential Water System Impact Fee Residential - Based on Square Feet Floor Area Tiers Square Feet in Tier Current Price Per Square Foot Current Tier Total Proposed Price Per Square Foot Proposed Tier Total Tier 1 0 - 2,500 $ 4.08 $ 10,200 $ 4.96 $ 12,398 Tier 2 2,501 - 3,500 $ 5.02 $ 5,020 $ 6.20 $ 6,199 Tier 3 3,501 - 5,000 $ 6.12 $ 9,180 $ 7.75 $ 11,623 Tier 4 5,001+ $ 7.85 Overage $ 9.69 Overage Table 5 – Recommended Commercial Water System Impact Fee Commercial - Based on Meter Size Proposed vs Current ¾" Meter (1.5 SFE) 1" Meter (2.6 SFE) 1½"Meter (5.8 SFE) 2" Meter (10.3 SFE) 3" Meter (23.0 SFE) 4" Meter (40.9 SFE) 6" Meter (92.1 SFE) Current Rate $15,265 $26,457 $59,019 $104,809 $236,100 $416,187 $937,185 Proposed Rate $16,366 $28,367 $63,280 $112,377 $250,940 $446,236 $1,004,850 12 Recommendations The following summarizes the recommendations of this report: 1. The Board should consider increasing the Authority’s WSIF to a value that lies within the calculated range of $10,200 and $11,297 per SFE based upon the SGM and SBA SFE forecasts. The recommended fee based on the historical SFE growth rate is $10,910 per SFE. At the Board’s discretion, this value may be adjusted after due consideration of other relevant factors including but not limited to:  The Board’s adopted policies, particularly that growth should pay for growth  The carrying costs and returns on previous investments made in the water system’s available capacity by existing customers  Similar impact fees that may be assessed by other entities  Impacts on the development community, and affordability for future customers 2. The WSIF’s tiered rate structure should be continued and the average revenues collected per SFE should be reviewed annually to insure that the tiered rate structure is effective. 3. The Board should periodically re-examine the WSIF as new assets are added and as warranted by changes in the Authority’s capital improvement program. 4. The WSIF should be adjusted annually by the rate of construction-related inflation, as reflected by the Denver Construction Cost Index published by Engineering News Record. 13 Works Cited Krupp vs Breckenridge Sanitation District, 19 P.3d 687 (Supreme Court of Colorado 2001). American Water Works Association. (2012). Principles of Water Rates, Fees and Charges (6th ed.). Denver, CO, USA: American Water Works Association. Greer, A. (2014, August 13). Draft #1 UERWA - Future SFE Update. Vail, CO: Stan Bernstein & Associates, Inc. Hartman, R. (2006, December 12). Eagle River Water and Sanitation District Water Tap Fee Review. Boulder, CO, USA: Unpublished Manuscript. Schmueser Gorden Meyer, Inc. (2009). Upper Eagle Regional Water Authority, Water Master Plan Update, Final Report. Glenwood Springs, CO. Appendix A Existing Assets by Category UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING GENERAL ASSETS DECEMBER 31, 2018 AREA DATE ASSET TYPE PURPOSE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) UERWA 1985 General NEW LAND IMPROVEMENT ON TRACT P & A PORTION OF TRACT G 52,962.00$ 3316.24 119,997.36$ UERWA 1987 General NEW LANDSCAPING 31,494.87$ 3506.95 67,478.20$ UERWA 1989 General NEW R.R. LEASE 52,400.00$ 3641.78 108,111.24$ ARROWHEA 1993 General NEW Arrowhead Easement for the relocation of a water dist. Main (1/2 AH & 1/2 UERWA)19,800.00$ 4012.02 37,081.34$ AVON 1995 General NEW Access Easement for Metcalfs Ditch Diversion Structure 65.00$ 4087.82 119.47$ AVON 1997 General NEW Easement - Metcalf Diversion 10,000.00$ 4329.24 17,355.68$ EDWARDS 1997 General SOLD Brett Ranch Land - Tract F -$ 4329.24 -$ EDWARDS 2000 General NEW Edwards Plant Track "D" site 492,944.91$ 4766.74 777,016.42$ EDWARDS 2004 General NEW Land for Edwards Water Tank -$ 5450.34 -$ CORDILLER 2013 General NEW CVC Water Tank Parcel (Purchased from USFS)60,000.00$ 7012.69 64,286.51$ AVON 2013 General NEW Mountain Star Water Tank Parcel (From USFS)60,000.00$ 7012.69 64,286.51$ TOTAL 659,666.78$ 1,255,732.74$ Page 2 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING SUPPLY ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) BERRY CREEK Supply 2004 Wells - Rehab for Drought - at Berry Creek 774,843.72$ 5450.34 1,068,178.41$ UERWA Supply 2006 Install Chlorine Analyzers at Well Facilities 17,633.91$ 5714.30 23,186.70$ BERRY CREEK Supply 2007 Berry Creek Well #1 Repair 47,645.85$ 5746.96 62,293.13$ BERRY CREEK Supply 2009 Berry Creek Well #2 Repair 86,725.00$ 6343.19 102,728.24$ BERRY CREEK Supply 2011 Berry Creek Well #1 Rehab - 2010 37,756.01$ 6886.53 41,194.47$ AVON Supply 2011 Mountain Star RFP Development 3,610.00$ 6886.53 3,938.76$ CORDILLERA Supply 2012 Cordillera Well Winterize and Improvements 16,269.15$ 6979.25 17,514.97$ BERRY CREEK Supply 2012 Berry Creek Well #1 Pump Replacement 13,209.24$ 6979.25 14,220.74$ CORDILLERA Supply 2012 Fenno Well F6-Civil Work 11,769.93$ 6979.25 12,671.22$ UERWA Supply 2013 Ground Water Rule New Line 1,980,974.05$ 7012.69 2,122,498.63$ BERRY CREEK Supply 2013 Berry Creek New Well 1,120,331.12$ 7012.69 1,200,369.72$ BERRY CREEK Supply 2013 Berry Creek Well #2 Repair 62,743.35$ 7012.69 67,225.86$ CORDILLERA Supply 2014 Cordillera Well House Expansion 15,868.39$ 7073.93 16,854.87$ CORDILLERA Supply 2014 Cordillera F6 Well Upgrade 33,360.31$ 7073.93 35,434.20$ BERRY CREEK Supply 2015 Berry Creek Well #3 Motor Replacement 55,438.08$ 7073.66 58,886.71$ BERRY CREEK Supply 2016 Berry Creek Well #3 Motor Replacement Completion 19,918.78$ 7366 20,317.96$ CORDILLERA Supply 2016 Cordillera Wellhouse Meter 9,267.42$ 7366 9,453.14$ CORDILLERA Supply 2017 Cordillera F5 Well Upgrade 26,915.69$ 7412 27,283.79$ BERRY CREEK Supply 2018 Berry Creek Well #3 Spare Motor-SME 8" 159hp, 3460rp 12,049.00$ 7514 12,049.00$ CORDILLERA Supply 2018 Cordillera Well F3 Motor 11,309.31$ 7514 11,309.31$ TOTAL:4,357,638.31$ 4,927,609.83$ Page 3 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TRANSMISSION & DISTRIBUTION ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) ARROWHEAD T&D 1988 ARROWHEAD 121,265.74$ 3538.26 257,514.48$ BEAVER CREEK T&D 1988 BEAVER CREEK 10,019.00$ 3538.26 21,275.90$ AVON T&D 1988 METCALF INTAKE DITCH 509,756.25$ 3538.26 1,082,495.48$ UERWA T&D 1988 DIVERSION WORKS 10,604.41$ 3538.26 22,519.05$ UERWA T&D 1988 GAUGING STATION ON EAGLE RIVER-9,250.00$ 3538.26 19,642.88$ UERWA T&D 1991 24" RAW WATER LINE-BOB BRIDGE 6,384.00$ 3715.34 12,910.63$ UERWA T&D 1991 24" TRANSMISSION LINE TO B.C.578,069.15$ 3715.34 1,169,053.81$ AVON T&D 1992 AVON TO A.H. VAULT IMP 7,387.43$ 3833.64 14,478.89$ UERWA T&D 1992 24" TRANS LINE-FLAGING/LANDSCAPING 7,802.31$ 3833.64 15,292.03$ UERWA T&D 1993 16" LPZ TRANS LINE AVON TO BEAVER CK.260,853.27$ 4012.02 488,524.64$ BERRY CREEK T&D 1994 BOOSTER STATION IN BERRY CK. TANS. LINE 45,294.69$ 4008.74 84,897.06$ UERWA T&D 1994 DOWD JCT. INTERCON. PHASE I & II 799,304.65$ 4008.74 1,498,158.36$ UERWA T&D 1995 DOWD JCT. INTERCON. PHASE III 360,923.72$ 4087.82 663,402.24$ BACHELOR GULCH T&D 1995 LINE TO BACHELOR GULCH TANK 250,000.00$ 4087.82 459,516.93$ BERRY CREEK T&D 1996 BERRY CREEK BPS UPGRADE 6,908.54$ 4334.09 11,976.82$ UERWA T&D 1996 DOWD JUNCTION III EASEMENTS 5,000.00$ 4334.09 8,668.13$ AVON T&D 1997 AVON PRV VAULT AT BURGER KING 79,194.73$ 4329.34 137,447.83$ UERWA T&D 1997 INTERCONNECT PRV 17,717.17$ 4329.34 30,749.35$ AVON T&D 1998 AVON PUMP STATION 1&3 PAINTING/REPAIRS 34,950.00$ 4470.35 58,743.38$ BERRY CREEK T&D 1998 BERRY CREEK BPS INTERIOR PAINTING 16,870.00$ 4470.35 28,354.82$ UERWA T&D 1998 MILLER RANCH BPS TO BERRY CREEK 228,185.31$ 4470.35 383,530.08$ EDWARDS T&D 1999 EDWARDS BPS PIPING REPAIR 5,957.50$ 4498.45 9,950.72$ UERWA T&D 1999 BACKUP GENERATORS 172,252.72$ 4498.45 287,711.00$ BERRY CREEK T&D 1999 BERRY CREEK WATER MAIN UPSIZE-Winslow Rd.138,955.21$ 4498.45 232,094.69$ UERWA T&D 1999 DISTRIBUTIVE CONTROL-TELEMETRY 45,429.77$ 4498.45 75,880.63$ UERWA T&D 2000 GENERATOR INSTALLATION 70,536.92$ 4766.74 111,185.54$ EDWARDS T&D 2000 WINSLOW ROAD WATER LINE EXTENSION-See Above 1,551.21$ 4766.74 2,445.13$ UERWA T&D 2000 DISTRIBUTIVE CONTROL-TELEMETRY 85,825.60$ 4766.74 135,284.69$ UERWA T&D 2002 PRV at Prater Road(Electric upgrade in 2005)118,736.34$ 4744.3 188,046.30$ CORDILLERA T&D 2003 CORDILLERA EAST BPS UPGRADE 24,393.15$ 5015.43 36,543.74$ BERRY CREEK T&D 2003 BERRY CREEK-Track A Water Line 24,779.06$ 5015.43 37,121.88$ UERWA T&D 2003 Diesel Pump 1/2 Ownership 32,807.00$ 5015.43 49,148.65$ UERWA T&D 2003 DISTRIBUTIVE CONTROLS-TELEMETRY 221,928.09$ 5015.43 332,473.76$ EAGLE-VAIL T&D 2004 EAGLE-VAIL-12" Water Line - Battle Mtn. H.S.114,311.76$ 5450.34 157,587.07$ EDWARDS T&D 2004 EDWARDS-Edwards BPS Upgrade 27,450.00$ 5450.34 37,841.82$ EDWARDS T&D 2004 EDWARDS-Miller Ranch Road Interconnect 225,077.60$ 5450.34 310,285.84$ Page 4 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TRANSMISSION & DISTRIBUTION ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) AVON T&D 2005 AVON-PRV at Prater Road-Electrical 15,359.00$ 5551.55 20,787.49$ BERRY CREEK T&D 2005 BERRY CREEK-Upgrade Berry Creek BPS 16,925.00$ 5551.55 22,906.97$ UERWA T&D 2005 Distributive Control-Telemetry 55,165.20$ 5551.55 74,662.79$ EAGLE-VAIL T&D 2006 EAGLE-VAIL-12" Water Line - Battle Mtn. H.S.10,568.80$ 5714.3 13,896.84$ CORDILLERA T&D 2006 CORDILLERA-Water System Improvements 83,296.80$ 5714.3 109,526.33$ EDWARDS T&D 2006 EDWARDS-South 40 Retainage Wall Re-route, Phase I Wtr. Line 362,227.26$ 5714.3 476,289.89$ UERWA T&D 2006 Distributive Control-Telemetry 7,960.00$ 5714.3 10,466.54$ CORDILLERA T&D 2007 CORDILLERA-Water System Improvements 2007 22,051.00$ 5746.96 28,829.92$ UERWA T&D 2007 Distributive Control Telemetry 43,164.69$ 5746.96 56,434.38$ EDWARDS T&D 2007 EDWARDS-South 40 Retainage Wall Re-route 734,150.52$ 5746.96 959,843.02$ EDWARDS T&D 2007 EDWARDS-South 40 Water Line 568,259.10$ 5746.96 742,953.27$ UERWA T&D 2008 Spare Parts and Motors for BPS & Tanks 35,908.96$ 5935.74 45,454.95$ CORDILLERA T&D 2008 Cordillera Water System Improvements for Acceptance 77,459.84$ 5935.74 98,051.67$ AVON T&D 2009 AVON-Lake Street Water Main 24,883.13$ 6343.19 29,474.78$ UERWA T&D 2009 Motors and Parts for BPS & Tanks 52,062.51$ 6343.19 61,669.53$ AVON T&D 2011 AVON-2011 Sample Stations 22,912.99$ 6886.53 24,999.69$ EDWARDS T&D 2011 EDWARDS - Brett Ranch Water Main 747,597.15$ 6886.53 815,681.23$ AVON T&D 2011 AVON- 1 BPS Pump Replacement 20,216.14$ 6886.53 22,057.23$ CORDILLERA T&D 2012 CORDILLERA-Sample Station 3,283.64$ 6979.25 3,535.09$ UERWA T&D 2012 Radio Network Upgrade Project Design (To be built in future)20,923.40$ 6979.25 22,525.62$ CORDILLERA T&D 2012 Cordillera East BPS Isolation Valve 5,354.83$ 6979.25 5,764.88$ UERWA T&D 2012 Spare Parts and Motors for BPS & Tanks 80,524.42$ 6979.25 86,690.62$ BEAVER CREEK T&D 2012 Beaver Ck BPS 1 & 2 Soft Start Upgrade 45,584.81$ 6979.25 49,075.49$ UERWA T&D 2012 Corrosive Soils Study (To be used in future construction)59,900.00$ 6979.25 64,486.88$ UERWA T&D 2012 BPS Interior Painting 17,694.29$ 6979.25 19,049.24$ UERWA T&D 2012 Telemetry System Parts 17,917.86$ 6979.25 19,289.93$ UERWA T&D 2012 Arc Flash Improvements in BPS Beaver Ck 2 and Mt. Star 3 27,623.98$ 6979.25 29,739.30$ BEAVER CREEK T&D 2013 Booster Pump By-Pass @ BC Tank #3 59,076.06$ 7012.69 63,296.57$ UERWA T&D 2013 Spare Parts and Motors for BPS & Tanks 38,281.24$ 7012.69 41,016.13$ UERWA T&D 2013 BPS & Tank Motors 14,296.55$ 7012.69 15,317.92$ UERWA T&D 2013 BPS Interior Painting 19,510.86$ 7012.69 20,904.75$ AVON T&D 2013 Avon 1 BPS Improvements Project 269,322.01$ 7012.69 288,562.89$ UERWA T&D 2013 Roof & Siding on BPS 66,080.07$ 7012.69 70,800.96$ BERRY CREEK T&D 2013 Berry Creek BPS Vault Rehab, Electric & Controls 69,094.59$ 7012.69 74,030.84$ CORDILLERA T&D 2013 Cordillera -Webb Peak Auto Flusher 42,406.96$ 7012.69 45,436.59$ Page 5 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TRANSMISSION & DISTRIBUTION ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) EAGLE-VAIL T&D 2013 E-V BPS Flood Mitigation Improvements 54,155.11$ 7012.69 58,024.05$ UERWA T&D 2014 Spare Parts and Motros for BPS & Tanks 36,630.31$ 7073.93 38,907.48$ UERWA T&D 2014 PRV Rehab 22,187.02$ 7073.93 23,566.30$ UERWA T&D 2014 Water Main Line Valve Replacement 7,415.20$ 7073.93 7,876.18$ CORDILLERA T&D 2014 Grenada Glen Water Main Replacement 146,852.23$ 7073.93 155,981.49$ CORDILLERA T&D 2014 Cordillera East 1 Valve Replacement 15,711.40$ 7073.93 16,688.12$ UERWA T&D 2014 Siding on Avon 1 and Edwards BPS 23,145.55$ 7073.93 24,584.42$ BEAVER CREEK T&D 2014 Beaver Creek Peregrine BPS 33,464.49$ 7073.93 35,544.85$ UERWA T&D 2014 PSI Transmitters for BPS's 31,071.18$ 7073.93 33,002.76$ UERWA T&D 2015 Spare Parts and Motros for BPS & Tanks 19,446.40$ 7073.66 20,656.10$ UERWA T&D 2015 Clortec Parts 10,485.60$ 7073.66 11,137.88$ ADWF T&D 2015 ADWF Clearwell Recovery Water Main 156,003.08$ 7073.66 165,707.54$ AVON T&D 2015 Avon1 & Wildridge 2 Driveway & Retaining Wall 10,750.00$ 7073.66 11,418.72$ AVON T&D 2015 Mountain Star BPS PRV Rehab 8,299.93$ 7073.66 8,816.24$ EDWARDS T&D 2015 Edwards, Singletree-Apaloosa Circle Fire Hydrant Valve 7,726.60$ 7073.66 8,207.25$ AVON T&D 2015 Avon-1014 Wildwood Water Main Valve Replacement 9,468.82$ 7073.66 10,057.85$ EDWARDS T&D 2015 Edwards, Singletree-Chute Circle Valve 10,932.72$ 7073.66 11,612.81$ EDWARDS T&D 2015 Edwards, Singletree-Foal Circle Valve 5,618.53$ 7073.66 5,968.04$ EDWARDS T&D 2015 Edwards, Singletree-Fox Lane Fire Hydrant Valve 2,483.00$ 7073.66 2,637.46$ BEAVER CREEK T&D 2015 Beaver Creek-Avondale Water Main Valve Replacement 30,695.11$ 7073.66 32,604.56$ EDWARDS T&D 2015 Edwards, Singletree-Morgan Dr. FH Valve Replacement 11,837.06$ 7073.66 12,573.41$ AVON T&D 2015 Door & Siding on Wildridge 2 BPS 20,835.00$ 7073.66 22,131.08$ ARROWHEAD T&D 2015 Cresta Road BPS Strainer 4,388.41$ 7073.66 4,661.40$ EDWARDS T&D 2015 Edwards Gold Dust BPS Replacement 94,661.64$ 7073.66 100,550.24$ EDWARDS T&D 2015 Edwards,Singletree-Rawhide & Winslow Rd. Water Main Replacement 12,765.38$ 7073.66 13,559.47$ BEAVER CREEK T&D 2016 Beaver Creek BPS 1 & 2 Clay Valve Replacement 16,480.00$ 7366.07 16,810.27$ CORDILLERA T&D 2016 Cordillera East 2 BPS Variable Freq. Drive 7,984.15$ 7366.07 8,144.16$ EAGLE-VAIL T&D 2016 Eagle-Vail Piping Valves Between Tanks 1 & 2 95,502.63$ 7366.07 97,416.55$ AVON T&D 2016 Avon Basecamp Water Main Imp. (NE Corner RoundAbout & Hwy 6)31,025.00$ 7366.07 31,646.76$ EDWARDS T&D 2016 Edwards, Homestead 288 Edwards Vill. Blvd.Water Main Repl.19,701.14$ 7366.07 20,095.96$ CORDILLERA T&D 2016 Cordillera Forest Trail Water Main Repair 38,946.50$ 7366.07 39,727.01$ Page 6 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TRANSMISSION & DISTRIBUTION ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) CORDILLERA T&D 2016 Cordillera Fenno Drive Water Main Repair 33,223.60$ 7366.07 33,889.42$ CORDILLERA T&D 2016 Cordillera Valley Club-Sanctuary Lane Water Main 13,388.19$ 7366.07 13,656.50$ CORDILLERA T&D 2016 Cordillera Greyhawk Water Main Repair 10,241.75$ 7366.07 10,447.00$ CORDILLERA T&D 2016 Cordillera Kensington Water Main Repair 8,024.26$ 7366.07 8,185.07$ CORDILLERA T&D 2016 Cordillera 525 Forest Trail Fire Hydrant Repair 8,407.19$ 7366.07 8,575.67$ EAGLE-VAIL T&D 2016 Eagle-Vail Tank Asphalt 17,528.30$ 7366.07 17,879.58$ CORDILLERA T&D 2016 Cordillera 125 Red Draw Water Main Repair 26,583.84$ 7366.07 27,116.59$ UERWA T&D 2016 Dowd Junction BPS Industrial Painting 14,894.13$ 7366.07 15,192.62$ CORDILLERA T&D 2016 Cordillera 12" Gate Valve Fenno Drive 10,868.19$ 7366.07 11,085.99$ ADWF T&D 2016 ADWF Clearwell Recovery Water Main Final Invoice 2,295.00$ 7366.07 2,340.99$ EDWARDS T&D 2016 Edwards Gold Dust BPS Replacement 790,769.95$ 7366.07 806,617.40$ UERWA T&D 2016 Spare Parts and Motors for BPS & Tanks 16,446.21$ 7366.07 16,775.80$ EDWARDS T&D 2016 Edwards Transmission Main @ roundabouts I-70 Interchange 756,733.38$ 7366.07 771,898.72$ CORDILLERA T&D 2017 Cordillera-BPS #2 Pump & Motor Rebuild 18,638.55$ 7412.32 18,893.45$ EAGLE-VAIL T&D 2017 Eagle-Vail BPS Industrial Interior Painting 25,361.41$ 7412.32 25,708.25$ UERWA T&D 2017 Spare Parts and Motors for BPS & Tanks 13,396.00$ 7412.32 13,579.20$ AVON T&D 2017 Mountain Star Booster Pump Stations 2,138,222.31$ 7412.32 2,167,464.38$ AVON T&D 2017 Avon-River Oaks Fire Hydrant Replacement 71,946.76$ 7412.32 72,930.70$ CORDILLERA T&D 2017 Cordillera Territories Backflow Prev. Non Pot System 90,329.88$ 7412.32 91,565.22$ CORDILLERA T&D 2018 CORDILLERA-Variable Frequency Drive (VFD) Controller E. BPS #2, Pump #9,151.79$ 7513.69 9,151.79$ UERWA T&D 2018 Spare Parts and Motors for BPS & Tanks 4,693.89$ 7513.69 4,693.89$ AVON T&D 2018 AVON-Mountain Star Booster Pump Stations 896,224.76$ 7513.69 896,224.76$ BACHELOR GULCH T&D 2018 BACHELOR GULCH-Bachelor Gulch BPS 1 Improvement 751,920.60$ 7513.69 751,920.60$ BACHELOR GULCH T&D 2018 BACHELOR GULCH-Bachelor Gulch BPS 2 Interior Coating 20,412.93$ 7513.69 20,412.93$ EDWARDS T&D 2018 EDWARDS-Air Vac Valve at Sifers, 6 West 9,995.54$ 7513.69 9,995.54$ UERWA T&D 2018 Aerial Imagry of UERWA System 49,964.00$ 7513.69 49,964.00$ TOTAL 15,239,107.56$ 19,932,746.95$ 1. T&D Facilities contributed under mainline extension policy or via consolidation are excluded. (See T&D Contributed Table) Page 7 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TREATED STORAGE ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) AVON Treated Storage 1994 INTEREST IN AVON TANK(PER 4TH ADDEN)300,000.00$ 4008.74 562,298.13$ BACHELOR GULCH Treated Storage 1997 BACHELOR GULCH - TANK 1,746,929.72$ 4329.34 3,031,915.16$ EDWARDS Treated Storage 1999 EDWARDS WATER TANK EXTERNAL PAINTING 8,640.00$ 4498.45 14,431.26$ BEAVER CREEK Treated Storage 1999 BEAVER CREEK TANK #2 SOLAR INSTALL 7,955.00$ 4498.45 13,287.11$ ARROWHEAD Treated Storage 2000 ARROWHEAD WATER TANK REPAIR 69,711.75$ 4766.74 109,884.84$ BEAVER CREEK Treated Storage 2000 BEAVER CREEK TANK #1 REPAIR 83,628.07$ 4766.74 131,820.78$ ARROWHEAD Treated Storage 2009 Paint BC & Arrowhead Tanks 59,997.17$ 6343.19 71,068.36$ EAGLE-VAIL Treated Storage 2009 Eagle-Vail Tank Landscape 22,184.33$ 6343.19 26,277.97$ BERRY CREEK Treated Storage 2011 Berry Creek Tank Fencing 14,138.37$ 6886.53 15,425.96$ BERRY CREEK Treated Storage 2012 Low Zone CVC Water Tank & Main 4,005,971.97$ 6979.25 4,312,731.53$ UERWA Treated Storage 2012 Tank Overflow Valves 18,796.99$ 6979.25 20,236.38$ BEAVER CREEK Treated Storage 2014 Interior Paint & Mixing BC Tank 536,738.11$ 7073.93 570,105.13$ AVON Treated Storage 2016 Mountain Star Water Tank 268,094.30$ 7366.07 273,467.05$ CORDILLERA Treated Storage 2013 Completion on CVC Water Tank & Main (Landscaping)97,475.56$ 7012.69 104,439.40$ UERWA Treated Storage 2013 Tank Hatch Security Improvements 16,841.55$ 7012.69 18,044.74$ TOTAL 7,257,102.89$ 9,275,433.81$ Page 8 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TREATMENT ASSETS DECEMBER 31, 2018 Facility Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) ADWF Treatment 1988 PLANT 5,349,323.97$ 3538.26 11,359,584.10$ ADWF Treatment 1988 LG ELE MOTOR-9 45,000.00$ 3538.26 95,559.98$ ADWF Treatment 1988 PUMPS-9 36,000.00$ 3538.26 76,447.98$ ADWF Treatment 1989 HIGH SERV PUMP 52,861.05$ 3641.78 109,062.48$ ADWF Treatment 1989 LOADING DOCK 946.16$ 3641.78 1,952.11$ ADWF Treatment 1990 LOW SERVICE PUMP LP-10 30,427.94$ 3668.2 62,326.51$ ADWF Treatment 1997 Building 5,616,640.21$ 4329.24 9,748,060.49$ ADWF Treatment 1997 Chemical Systems Equipment 294,998.79$ 4329.24 511,990.43$ ADWF Treatment 1997 Pumps 432,423.18$ 4329.24 750,499.79$ ADWF Treatment 1997 Filter Media 90,450.46$ 4329.24 156,982.92$ ADWF Treatment 1997 Tube Settlers 194,425.91$ 4329.24 337,439.37$ ADWF Treatment 1997 Motor Control Center 122,718.39$ 4329.24 212,986.10$ ADWF Treatment 1997 T-1 Communication Line 17,496.21$ 4329.24 30,365.86$ ADWF Treatment 2000 Paint Filters at Avon DWF 33,840.00$ 4766.74 53,341.12$ ADWF Treatment 2001 Crane System Improvements-Avon DWF 7,645.00$ 4663.08 12,318.50$ ADWF Treatment 2001 Avon Water Plant Painting 37,068.00$ 4663.08 59,728.22$ ADWF Treatment 2001 Gate at ADWF (Moved to Vail)19,382.66$ 4663.08 31,231.57$ EDWF Treatment 2003 Planning and Pilot Activites 37,412.00$ 5015.43 56,047.47$ EDWF Treatment 2003 Road to Plant 666,000.00$ 5015.43 997,744.47$ EDWF Treatment 2003 Engineering and Permiting 863,580.00$ 5015.43 1,293,741.99$ EDWF Treatment 2003 CO - Accelerate concrete Work 134,131.00$ 5015.43 200,943.64$ EDWF Treatment 2003 Landscape 13,024.00$ 5015.43 19,511.45$ EDWF Treatment 2003 Bike Path Water Line 68,520.00$ 5015.43 102,650.83$ EDWF Treatment 2003 Sewer Tap Fee/Meter 83,054.00$ 5015.43 124,424.43$ EDWF Treatment 2003 Water Tap fee & Plant Investment Fee 20,066.00$ 5015.43 30,061.17$ EDWF Treatment 2003 Electric to Property and Const. Easements 42,330.00$ 5015.43 63,415.20$ EDWF Treatment 2003 Clean up and Mobilization 316,586.00$ 5015.43 474,282.18$ EDWF Treatment 2003 External Pipe, Dirtwork & Intake 1,345,536.00$ 5015.43 2,015,767.42$ EDWF Treatment 2003 Concrete Building Structure 1,992,987.00$ 5015.43 2,985,723.36$ Page 9 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TREATMENT ASSETS DECEMBER 31, 2018 Facility Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) EDWF Treatment 2003 Metals & Handrails 113,455.00$ 5015.43 169,968.62$ EDWF Treatment 2003 Roof, Doors & Weather proofing 699,426.00$ 5015.43 1,047,820.45$ EDWF Treatment 2003 Pumps, Filters & other Equipment 1,034,768.00$ 5015.43 1,550,201.27$ EDWF Treatment 2003 Internal Piping 1,213,537.00$ 5015.43 1,818,017.76$ EDWF Treatment 2003 HVAC & Electrical System 1,374,641.03$ 5015.43 2,059,370.10$ ADWF Treatment 2003 AVON DWF INCREASED PROD. PROJ.271,338.93$ 5015.43 406,496.87$ ADWF Treatment 2003 VENTILATION AND COOLING UPGRADE - ADWF 18,526.00$ 5015.43 27,754.08$ ADWF Treatment 2003 REPLACE PRODUCTION METERS 21,730.48$ 5015.43 32,554.75$ ADWF Treatment 2003 Separate AA's Office from Conf. Room 4,384.56$ 5015.43 6,568.57$ ADWF Treatment 2004 Fence In Front of Avon DWF 7,692.75$ 5450.34 10,605.02$ ADWF Treatment 2005 Ozone Repairs at Avon DWF 68,837.32$ 5551.55 93,167.18$ ADWF Treatment 2005 Avon DWF Plant Lighting Improvements/Replacement 39,615.00$ 5551.55 53,616.53$ ADWF Treatment 2006 Replace DP Gauages, & 1720C Chlorine Analyzers 37,049.98$ 5714.3 48,716.74$ ADWF Treatment 2006 Distribution Pumps, Inspection, Rebuild, Balance 64,513.32$ 5714.3 84,828.08$ ADWF Treatment 2006 Upflow Clarifier By-Pass 7,832.00$ 5714.3 10,298.24$ ADWF Treatment 2007 Baffle ADWF Clearwell 121,001.64$ 5746.96 158,199.95$ ADWF Treatment 2007 Avon DWF Optimization 1,014,424.24$ 5746.96 1,326,278.46$ ADWF Treatment 2007 Security Fence at Avon 29,975.00$ 5746.96 39,189.91$ EDWF Treatment 2007 Sand Separator EDWF 212,687.07$ 5746.96 278,071.31$ ADWF Treatment 2008 Rehabilitate ADWF Filter #7 29,480.19$ 5935.74 37,317.17$ ADWF Treatment 2008 Filter Effluent Valve Replace. ADWF-Phase1 58,661.17$ 5935.74 74,255.59$ EDWF Treatment 2008 EDWF Irrigation Strainers 9,570.00$ 5935.74 12,114.08$ ADWF Treatment 2009 ADWF Ozone Repairs/Chlorine Conversion 2,715,206.28$ 6343.19 3,216,239.51$ ADWF Treatment 2009 ADWF Paint & Exterior Improvements 18,300.00$ 6343.19 21,676.87$ ADWF Treatment 2009 ADWF Replacement Parts 8,967.91$ 6343.19 10,622.75$ ADWF Treatment 2009 ADWF & EDWF Roof Repairs 84,600.00$ 6343.19 100,211.12$ EDWF Treatment 2009 EDWF Generator 216,553.36$ 6343.19 256,513.65$ ADWF Treatment 2010 Generator Backup Avon 1,279,247.59$ 6397.15 1,502,523.75$ ADWF Treatment 2010 Replace ADWF Control Valves 136,686.05$ 6397.15 160,542.84$ Page 10 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TREATMENT ASSETS DECEMBER 31, 2018 Facility Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) ADWF Treatment 2010 ADWF Lighting Upgrades 31,961.00$ 6397.15 37,539.38$ ADWF Treatment 2010 Production Meter ADWF, Mag Meters Inf, HZ & LZ 52,599.97$ 6397.15 61,780.62$ ADWF Treatment 2010 ADWF Replacement Parts 40,611.84$ 6397.15 47,700.11$ UERWA Treatment 2010 Other Facilities Replacement Parts 8,464.59$ 6397.15 9,941.97$ ADWF Treatment 2010 ADWF Instrumentation for Automation 65,699.31$ 6397.15 77,166.28$ ADWF Treatment 2011 ADWF PLC's & Terminal Services 240,151.95$ 6886.53 262,022.72$ ADWF Treatment 2011 ADWF Spare Parts 19,048.33$ 6886.53 20,783.07$ ADWF Treatment 2011 ADWF Polymer System 26,025.80$ 6886.53 28,395.98$ ADWF Treatment 2011 ADWF Trac-Vac Upgrades 73,218.91$ 6886.53 79,887.00$ ADWF Treatment 2011 ADWF Online Total Organic Carbon Analyzer 28,361.28$ 6886.53 30,944.16$ EDWF Treatment 2011 EDWF Server, Integration & HART Protocol 34,371.25$ 6886.53 37,501.46$ EDWF Treatment 2011 EDWF Pretreatment Project Phase I 498,427.02$ 6886.53 543,819.04$ EDWF Treatment 2011 EDWF Online Total Organic Carbon Analyzer 31,855.88$ 6886.53 34,757.01$ UERWA Treatment 2011 BPS & Tank Spare Parts/Motors 65,159.13$ 6886.53 71,093.21$ EDWF Treatment 2011 EDWF Fence 22,571.46$ 6886.53 24,627.06$ ADWF Treatment 2011 ADWF Instrumentation for Automation 67,173.07$ 6886.53 73,290.56$ ADWF Treatment 2012 ADWF Spare Parts 14,574.15$ 6979.25 15,690.17$ ADWF Treatment 2012 ADWF Polymer System (Completion work, project in 2011)2,428.84$ 6979.25 2,614.83$ ADWF Treatment 2012 ADWF Office Space/Server Room Remodel 17,758.93$ 6979.25 19,118.83$ ADWF Treatment 2012 ADWF Online Total Organic Carbon Analyzer (Comp., project '11)1,073.52$ 6979.25 1,155.73$ ADWF Treatment 2012 ADWF PLC Process Upgrade 30,497.16$ 6979.25 32,832.50$ ADWF Treatment 2012 ADWF Chlorine Storage Tank Replacement 19,015.45$ 6979.25 20,471.57$ EDWF Treatment 2012 EDWF Pretreatment Project Phase I (Comp wk, done in '11)2,106.51$ 6979.25 2,267.82$ EDWF Treatment 2012 EDWF Online Total Organic Carbon Analyzer (Comp wk., done in '11)686.76$ 6979.25 739.35$ UERWA Treatment 2012 BPS & Tank Spare Parts/Motors 29,677.90$ 6979.25 31,950.50$ EDWF Treatment 2012 EDWF Fence (Completion work, project in 2011)140.00$ 6979.25 150.72$ ADWF Treatment 2012 ADWF Instrumentation for Automation 12,294.90$ 6979.25 13,236.39$ CORDILLERA Treatment 2012 CORDILLERA Stage 2 Disinfection Byprod. Compliance Plan 107,561.36$ 6979.25 115,797.93$ UERWA Treatment 2012 Spill Time Calculation Tool 6,968.46$ 6979.25 7,502.07$ Page 11 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TREATMENT ASSETS DECEMBER 31, 2018 Facility Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) ADWF Treatment 2012 ADWF Plant Networking 11,484.87$ 6979.25 12,364.33$ ADWF Treatment 2013 ADWF Spare Parts 45,121.95$ 7012.69 48,345.55$ ADWF Treatment 2013 ADWF Trac Vac Upgrades 8,714.00$ 7012.69 9,336.54$ ADWF Treatment 2013 ADWF Motor Soft Start Replacements 18,659.23$ 7012.69 19,992.28$ ADWF Treatment 2013 ADWF 8156 Chemical Pumps 38,839.45$ 7012.69 41,614.21$ ADWF Treatment 2013 ADWF Asphalt 29,815.00$ 7012.69 31,945.04$ EDWF Treatment 2013 EDWF Turbidity Analyzers 13,823.79$ 7012.69 14,811.39$ EDWF Treatment 2013 EDWF Power Monitor Upgrade 10,073.59$ 7012.69 10,793.27$ ADWF Treatment 2013 ADWF Corrosion Inhibition Program 31,500.00$ 7012.69 33,750.42$ EDWF Treatment 2013 EDWF Corrosion Inhibition Program 27,536.34$ 7012.69 29,503.59$ ADWF Treatment 2013 ADWF As-Built Update 130,694.07$ 7012.69 140,031.10$ ADWF Treatment 2013 ADWF Plant Networking-Server Separation 7,697.00$ 7012.69 8,246.89$ ADWF Treatment 2014 Replace ADWF Filter Valves & Filter Gallery Wiring 194,252.14$ 7073.93 206,328.08$ ADWF Treatment 2014 ADWF MCC #3 Breaker 13,427.00$ 7073.93 14,261.71$ ADWF Treatment 2014 ADWF Paint Basin Floor 30,035.00$ 7073.93 31,902.16$ ADWF Treatment 2014 ADWF Existing Ozone Optimation Project 128,298.71$ 7073.93 136,274.57$ ADWF Treatment 2014 ADWF Clearwell Weirs 43,308.96$ 7073.93 46,001.32$ ADWF Treatment 2014 ADWF SCADA Standardization 110,098.42$ 7073.93 116,942.83$ ADWF Treatment 2014 ADWF Corrosion Inhibition, Brine Tank & Foundation 595,673.85$ 7073.93 632,704.68$ ADWF Treatment 2014 ADWF Replacement Servers 17,715.00$ 7073.93 18,816.28$ EDWF Treatment 2014 EDWF Membrane Replacement 232,245.46$ 7073.93 246,683.30$ EDWF Treatment 2014 EDWF SCADA Standardization 134,731.95$ 7073.93 143,107.74$ ADWF Treatment 2014 ADWF Gate 9,880.00$ 7073.93 10,494.20$ EDWF Treatment 2014 EDWF Power Monitor Upgrade Completion Work 2,388.44$ 7073.93 2,536.92$ ADWF Treatment 2014 ADWF Instrumentation for Automation 98,121.53$ 7073.93 104,221.38$ ADWF Treatment 2014 ADWF Hydroscreen 133,603.29$ 7073.93 141,908.91$ UERWA Treatment 2014 Fluoride Project 86,670.21$ 7073.93 92,058.18$ ADWF Treatment 2015 ADWF Boiler Replacement 36,633.26$ 7073.66 38,912.10$ ADWF Treatment 2015 ADWF Analyzers for Ozone System 10,427.27$ 7073.66 11,075.92$ Page 12 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TREATMENT ASSETS DECEMBER 31, 2018 Facility Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) ADWF Treatment 2015 ADWF ADWF Roof Repair 15,500.00$ 7073.66 16,464.21$ ADWF Treatment 2015 ADWF Chlortec Dialectrics Replacment Ozone Sys 42,137.00$ 7073.66 44,758.21$ EDWF Treatment 2015 EDWF Membrane Replacement 227,853.03$ 7073.66 242,027.05$ EDWF Treatment 2015 EDWF Raw Water Pumps Replacement 24,891.35$ 7073.66 26,439.76$ ADWF Treatment 2015 ADWF Redundant Ozone Air Compressor 66,412.70$ 7073.66 70,544.02$ ADWF Treatment 2015 ADWF Redundant Ozone System Parts 26,000.59$ 7073.66 27,618.00$ ADWF Treatment 2015 ADWF SCADA Standardization, completion work 5,359.00$ 7073.66 5,692.37$ EDWF Treatment 2015 EDWF SCADA Standardization, completion work 6,876.00$ 7073.66 7,303.73$ EDWF Treatment 2015 EDWF Security Cameras 4,430.70$ 7073.66 4,706.32$ ADWF Treatment 2015 ADWF Security Cameras 4,430.69$ 7073.66 4,706.31$ EDWF Treatment 2015 EDWF Hydroscreen 126,652.08$ 7073.66 134,530.71$ ADWF Treatment 2015 ADWF Turbine Pump #2 @ Raw Water BPS 16,550.00$ 7073.66 17,579.52$ EDWF Treatment 2015 EDWF Clorine Metering Pump 9,361.51$ 7073.66 9,943.86$ ADWF Treatment 2016 ADWF Boiler Replacement 34,000.00$ 7366.07 34,681.38$ ADWF Treatment 2016 ADWF Ozone Flow Meter 20,936.00$ 7366.07 21,355.57$ EDWF Treatment 2016 EDWF Membrane Replacement 196,259.72$ 7366.07 200,192.87$ EDWF Treatment 2016 EDWF Fence 6,390.00$ 7366.07 6,518.06$ EDWF Treatment 2016 EDWF Raw Water Pumps Replacement 12,527.00$ 7366.07 12,778.05$ ADWF Treatment 2016 ADWF SCM & Ozone Replacement 16,299.53$ 7366.07 16,626.18$ EDWF Treatment 2016 EDWF Hydroscreen completion invoice 607.20$ 7366.07 619.37$ ADWF Treatment 2016 ADWF Instrumentation for Automation 15,372.01$ 7366.07 15,680.07$ ADWF Treatment 2016 ADWF Redundant Ozone Air Compressor completion 710.69$ 7366.07 724.93$ EDWF Treatment 2016 EDWF Clearwell Hatches 77,851.26$ 7366.07 79,411.44$ UERWA Treatment 2016 UERWA Remote Fluoride Analyzers 12,659.94$ 7366.07 12,913.65$ ADWF Treatment 2017 ADWF LED Light Fixtures for Plant 10,870.00$ 7412.32 11,018.66$ ADWF Treatment 2017 ADWF Main Gate Rebuild 5,250.00$ 7412.32 5,321.80$ ADWF Treatment 2017 ADWF Raw BPS Surge Arrestor 10,981.98$ 7412.32 11,132.17$ EDWF Treatment 2017 EDWF Turbidity Analyzers 32,840.96$ 7412.32 33,290.09$ EDWF Treatment 2017 EDWF 350 HP Dist. Pump Motor 34,662.54$ 7412.32 35,136.58$ Page 13 of 13 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX A EXISTING TREATMENT ASSETS DECEMBER 31, 2018 Facility Asset Type DATE DESCRIPTION Original Cost ENR Denver Construction Cost Index Replacement Cost New (RCN) ADWF Treatment 2017 ADWF Ozone Orbisphere Moni 13,200.84$ 7412.32 13,381.37$ EDWF Treatment 2017 CRP-EDWF Air Compressor 20,499.87$ 7412.32 20,780.22$ ADWF Treatment 2017 ADWF Recplacement HVAC Control System 157,404.07$ 7412.32 159,556.71$ EDWF Treatment 2017 EDWF Membrane Feed Pump Replacement 16,366.79$ 7412.32 16,590.62$ ADWF Treatment 2017 ADWF Filter Optimization Design 82,406.81$ 7412.32 83,533.80$ UERWA Treatment 2017 SCADA Intrusion Detection System 80,952.86$ 7412.32 82,059.96$ ADWF Treatment 2018 ADWF HMI Touchscreen for PLC #6 Cabinets 14,290.00$ 7513.69 14,290.00$ ADWF Treatment 2018 ADWF Ozone % Weight Analyzer 6,396.54$ 7513.69 6,396.54$ ADWF Treatment 2018 ADWF Motor & Starter for Air Compressor #1 7,617.70$ 7513.69 7,617.70$ ADWF Treatment 2018 ADWF Auto Dialer 10,275.30$ 7513.69 10,275.30$ ADWF Treatment 2018 ADWF House Water Gate Valve 14,245.00$ 7513.69 14,245.00$ ADWF Treatment 2018 ADWF Clearwell, Settling, & Basin Hydraulic Imp.2,136,992.40$ 7513.69 2,136,992.40$ ADWF Treatment 2018 ADWF High Service Cla Valves Rebuild 18,446.17$ 7513.69 18,446.17$ UERWA Treatment 2018 Swift Gulch - Network Switches 8,881.08$ 7513.69 8,881.08$ ADWF Treatment 2018 ADWF-Mcc-4 Replacement, Wall & Elect. Junction Boxes 487,267.64$ 7513.69 487,267.64$ ADWF Treatment 2018WF-Hypo Chlorite Tanks, Pipework, Coatings, Doors & Corrosion Resistive Sup 76,573.13$ 7513.69 76,573.13$ ADWF Treatment 2018 ADWF-New Fluoride System & Pipework 478,023.54$ 7513.69 478,023.54$ ADWF Treatment 2018 DWF-Plant foundation sealing (crack injection, link seals and concrete overlay 204,397.07$ 7513.69 204,397.07$ ADWF Treatment 2018 ADWF-Replace pipework, electrical equip, HVAC, Valves 347,460.26$ 7513.69 347,460.26$ TOTAL 37,925,906.86$ 55,984,158.69$ Appendix B Contributed Capital Assets Page 1 of 6 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX B CONTRIBUTED CAPITAL ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Contribution EAGLE-VAIL T&D 1998 EAGLE-VAIL DISTRIBUTION SYSTEM 1,712,825.00$ BEAVER CREEK T&D 1998 Water System 5,827,713.20$ BEAVER CREEK T&D 1998 Booster Pumps 45,610.50$ ARROWHEAD T&D 1998 ARROWHEAD DISTRIBUTION SYSTEM 1,923,049.49$ BERRY CREEK T&D 1998 BERRY CREEK DISTRIBUTION SYSTEM 2,275,998.59$ EDWARDS T&D 1998 Water System 2,908,526.10$ EDWARDS T&D 1998 Pump House 6,000.00$ EDWARDS T&D 1998 PYLE RANCH - LAKE CRK. RD.170,443.19$ AVON T&D 1998 VILLA MONTAINE - AVANDALE RD.53,800.00$ AVON T&D 1998 RIVER FORGE - 38169 HWY 6 11,368.75$ AVON T&D 1999 AVON DISTRIBUTION SYSTEM 5,419,257.84$ ARROWHEAD T&D 1999 ARROWHEAD FILING #16 65,110.00$ BEAVER CREEK T&D 1999 STRAWBERRY PARK 912,684.66$ AVON T&D 1999 BROOKSIDE (east sec. of main line fh @A to vault)149,282.50$ CVC T&D 1999 THE SANCTUARY (CVC)86,967.40$ T&D 1999 EMERALD ACRES 35,815.00$ EDWARDS T&D 1999 EDWARDS VILLAGE CENTER - PARCEL 9 46,909.00$ EDWARDS T&D 1999 EDWARDS VILLAGE CENTER - PARCEL 14 49,390.00$ AVON T&D 1999 WILDRIDGE LOT 7 19,000.00$ EAGLE-VAIL T&D 1999 BATTLE MOUNTAIN HS EXTENSION 48,006.00$ T&D 1999 ELK MEADOWS 34,360.00$ BACHELOR GULCH T&D 1999 SKYWATCH PHASE 1 - B. GULCH FILING 3 111,921.32$ BACHELOR GULCH T&D 1999 BACHELOR GULCH FILING 1 & 2 2,707,969.05$ BACHELOR GULCH T&D 1999 BACHELOR GULCH FILING 3 1,126,111.89$ AVON T&D 2000 MARKET SQUARE (VILLA MONTANE)53,800.00$ BERRY CREEK T&D 2000 LAS VISTAS-Berry Ck.149,165.00$ Page 2 of 6 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX B CONTRIBUTED CAPITAL ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Contribution AVON T&D 2000 SWIFT GULCH PHASE 2-Avon 102,772.00$ BEAVER CREEK T&D 2000 ONE BEAVER CREEK PLACE (east-west line to tunnel)26,730.00$ EDWARDS T&D 2000 EDWARDS MEDICAL CENTER 8" MAIN LINE 42,849.00$ EDWARDS T&D 2000 MILLER RANCH / BERRY CREEK SCHOOL 141,320.00$ BACHELOR GULCH T&D 2000 DEER TRAIL, PHASE II-Bach. Gulch #3 22,052.00$ BACHELOR GULCH T&D 2000 BUCKHORN - Smith Ck./Bach. Ridge #3 51,732.00$ EAGLE-VAIL T&D 2000 EAGLE BEND PHASE III - Eagle Vail 7,590.00$ BACHELOR GULCH T&D 2000 QUARTER MOON - Bach. Gulch #3 51,389.00$ EAGLE-VAIL T&D 2000 EAGLE VAIL INDUSTRIAL PARK (US Hwy 6 Eagle-Vail)38,950.00$ ARROWHEAD T&D 2001 Arrowhead Filing 13, Lot 25&21 The Pinyons 9,408.60$ ARROWHEAD T&D 2001 Arrowhead Filing 18 - Phase II 115,945.18$ ARROWHEAD T&D 2001 Arrowhead Village Core 38,833.13$ ARROWHEAD T&D 2001 Arrowhead/Cresta Road (Terrell Creek)91,292.00$ BACHELOR GULCH T&D 2001 Bachelor Gulch Skywatch Phase 2 16,115.00$ EDWARDS T&D 2001 Edwards Station (Texaco)56,284.50$ EDWARDS T&D 2001 Edwards - B&B Gravel Pit 8" Main 19,175.00$ EDWARDS T&D 2001 Edwards - Newman Water Line 37,838.29$ AVON T&D 2001 Avon - Chapel Square 129,000.00$ ARROWHEAD T&D 2001 Arrowhead - Knudson Ranch 28,534.20$ ARROWHEAD T&D 2001 Arrowhead - Cresta Project Phases I & 2 195,466.00$ AVON T&D 2001 Avon Sheraton Mt. Vista - Avon Lot C 46,067.60$ EDWARDS T&D 2001 Edwards - CVC Filing 9 - Legacy Trail 98,293.50$ EDWARDS T&D 2001 Edwards - CVC Filing 8 - Fall Creek 55,701.85$ BACHELOR GULCH T&D 2001 Bachelor Gulch - Bear Paw Lodge 43,880.00$ EDWARDS T&D 2001 Edwards - Aspen Glen 37,403.24$ EDWARDS T&D 2001 Edwards Plaza Phase 3 17,464.00$ Page 3 of 6 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX B CONTRIBUTED CAPITAL ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Contribution BACHELOR GULCH T&D 2001 Bachelor Gulch - DayBreak Ridge 130,435.00$ BERRY CREEK T&D 2002 BERRY CREEK - Winslow Rd Line Upgrade 13,300.00$ BERRY CREEK T&D 2002 BERRY CREEK - Eagle County Charter Academy 108,838.00$ BEAVER CREEK T&D 2002 BEAVER CREEK - Offerson Rd 35,140.00$ EDWARDS T&D 2002 EDWARDS - EDWF Bike Path Water Main 48,007.77$ ARROWHEAD T&D 2002 ARROWHEAD - Mountain Project 1,380,759.47$ EDWARDS T&D 2002 EDWARDS - Homestead Filing #3,Lot #3 10,000.00$ EDWARDS T&D 2002 EDWARDS - Rest Area 77,474.00$ BACHELOR GULCH T&D 2002 BACHELOR GULCH - Snow Berry Filing #3 33,607.80$ EDWARDS T&D 2002 EDWARDS - Trinity Baptist Church - South 40 Main Ext.26,852.00$ EDWARDS T&D 2002 EDWARDS - Brett Ranch (south of US 6)133,285.78$ ARROWHEAD T&D 2002 ARROWHEAD - Alpine Club FH Relocate 8,930.00$ CORDILLERA T&D 2002 CORDILLERA - Cordillera Club Cottages 76,454.22$ ARROWHEAD T&D 2002 ARROWHEAD - Golf Course Maintenance 10,011.12$ AVON T&D 2003 AVON - Mountain Star Lot 87 FH Relocate 7,800.00$ BEAVER CREEK T&D 2003 BEAVER CREEK-Tarnes Phase 2 N&S 12" Extensions 28,437.60$ EDWARDS T&D 2003 EDWARDS - Lake Creek Apartments 258,306.00$ EDWARDS T&D 2003 EDWARDS - Miller Creek Section 3 Culdesac Ext.207,687.90$ EDWARDS T&D 2003 EDWARDS - Medical Center Phase 2 118,418.00$ BACHELOR GULCH T&D 2003 BACHELOR GULCH - Peak View filing #3 Tract YY 77,710.00$ BACHELOR GULCH T&D 2003 BACHELOR GULCH - Fire light Logde FH filing #3 2,640.00$ ARROWHEAD T&D 2003 ARROWHEAD - Arrowhead Golf Course Maintenance 10,011.12$ CORDILLERA T&D 2003 CORDILLERA EAST BPS UPGRADE 73,179.46$ EDWARDS T&D 2004 EDWARDS-St. Clare Phase 3 72,500.00$ EDWARDS T&D 2004 EDWARDS-St. Clare Phase 4 15,800.00$ EAGLE-VAIL T&D 2004 EAGLE-VAIL-Exception Parcel Eagle-Vail Filing #2, Phase 1 40,500.00$ Page 4 of 6 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX B CONTRIBUTED CAPITAL ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Contribution AVON T&D 2004 AVON-Barranas 8" Water Main Line 200,321.00$ CORDILLERA T&D 2004 CORDILLERA-Filing #37 Phase 2B Martingale(Castle Pk Ln)230,355.82$ AVON T&D 2004 AVON-Petro Hut 4" Service & FH & FH Relocate 7,261.00$ EDWARDS T&D 2004 EDWARDS-Edwards Corner 23,500.00$ CORDILLERA T&D 2004 CORDILLERA - All Water Lines in System per 3/25/04 agreement 33,529,252.00$ BEAVER CREEK T&D 2005 BEAVER CREEK-Chair 6 Water Main Relocation 16,018.00$ ARROWHEAD T&D 2005 ARROWHEAD MTN.-Trailside Phase I Water Line 47,743.78$ EDWARDS T&D 2005 EDWARDS-Edwards Station Fire Hydrant Relocate 3,500.00$ ARROWHEAD T&D 2005 ARROWHEAD-Village Townhomes II Water Lines A & B 69,970.00$ EDWARDS T&D 2005 EDWARDS-Miller Ranch Road Water Line Extension 18,700.00$ EDWARDS T&D 2005 EDWARDS-Brett Ranch Villas Area A Water Line 167,566.00$ ARROWHEAD T&D 2005 ARROWHEAD-River Ranch Road 8" Water Line (Don. Parcel)102,207.00$ EDWARDS T&D 2005 EDWARDS-River Pines, Hwy. 6 Water Line 30,500.00$ AVON T&D 2006 WILDRIDGE-Western Sage Old Abandon 5" from Existing 8" GV to New GV 38,143.00$ ARROWHEAD T&D 2006 ARROWHEAD-McCoy Springs 8" Water Up to Lots 1-4 51,125.00$ EDWARDS T&D 2006 EDWARDS-Miller Ranch Filings 2 & 3 213,780.00$ EDWARDS T&D 2006 EDWARDS-Berry Ck. Housing 12" Water Plus Laterals Phase I 333,985.95$ AVON T&D 2007 AVON-Buffalo Ridge Housing Complex, Water Main 202,623.00$ EDWARDS T&D 2007 EDWARDS-Heritage Park Development Water Main 135,261.48$ BACHELOR GULCH T&D 2007 BACHELOR GULCH-Hummingbird Project, Water Main 29,400.00$ AVON T&D 2007 WILDRIDGE-Dry Creek PUD -Water Main 35,615.28$ BEAVER CREEK T&D 2007 BEAVER CREEK-Village Walk, Water Main 182,085.00$ EDWARDS T&D 2007 EDWARDS-Riverstone, Water Main 103,940.16$ EDWARDS T&D 2008 EDWARDS-Berry Ck. Middle School Water Main Extension 52,787.00$ EDWARDS T&D 2008 EDWARDS-Miller Ranch, Tract C, The Pond Water Main Relocation 44,500.00$ EDWARDS T&D 2008 EDWARDS-Miller Ranch, Tract C, Berry Creek 5th, 8" to 10" Water Main 126,845.00$ Page 5 of 6 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX B CONTRIBUTED CAPITAL ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Contribution EDWARDS T&D 2008 EDWARDS-South Fork Meadows-Hwy 6 54,300.00$ AVON T&D 2009 AVON-Lake Street Public Improvements 96,464.63$ AVON T&D 2009 AVON-Riverfront 516,206.55$ BACHELOR GULCH T&D 2009 BACHELOR GULCH-Beaver Creek Landing, Lot 4, Tract B, Bachelor Gulch 8,900.00$ BACHELOR GULCH T&D 2009 BACHELOR GULCH-BMGD Operations Facility, 10" Line Only plus FH 15,530.00$ BEAVER CREEK T&D 2009 BEAVER CREEK-Beaver Creek Landing 12" Water Line 8,900.00$ EDWARDS T&D 2009 EDWARDS-Religious Foundation Church Site, 12" Water Main Relocate 48,566.89$ EDWARDS T&D 2009 EDWARDS-Fox Hollow Phase I Edwards Design & Craft Center 89,415.04$ EDWARDS T&D 2010 EDWARDS-Vail Christian High School 206,103.00$ EDWARDS T&D 2010 EDWARDS-Edwards Field House F H Relocate 4,673.25$ EDWARDS T&D 2010 EDWARDS-The Homestead Valley Lot 4, Filing No. 3 40,900.00$ ARROWHEAD T&D 2010 ARROWHEAD-One Arrowhead Place FH & 8"Dip Wtr Line 18,900.00$ AVON T&D 2010 AVON-Beaver Creek Gatehouse, 2nd section from 8X8X8 Tee to FH 54,820.00$ ARROWHEAD T&D 2011 ARROWHEAD-McCoy Creek Cabins 149,099.00$ BACHELOR GULCH T&D 2012 BACHELOR GULCH-Wtr main extension to lots 107 & 108 8" lines from skiway end 44,036.00$ BACHELOR GULCH T&D 2012 BACHELOR GULCH-Wtr main extension to lots 107 & 108 12" water Dip 21,387.00$ BEAVER CREEK T&D 2012 BEAVER CREEK-Beaver Ck Landing Water Line A 235,771.00$ BEAVER CREEK T&D 2012 BEAVER CREEK-The Ranch Beaver Ck Ski School Wtr Service 55,169.00$ AVON T&D 2013 AVON-Buck Creek Infrastructure 108,216.88$ AVON T&D 2014 AVON-Buck Creek PUD 1st Section Water Main 211,986.02$ AVON T&D 2016 Brookside Signature Lofts Fire Hydrant 37347 Hwy 6, Avon 24,900.00$ BEAVER CREEK T&D 2017 Beaver Creek-Basecamp 38359 Hwy 6 in Avon, water main, fire hydrant 70,635.00$ AVON T&D 2017 Avon-Wyndham, Avon Lot 61, 75 Benchmark Rd. water main, fire hydrant, air vac 71,666.93$ AVON T&D 2017 Avon-MOB-50 Buck Creek Lane, Avon Med. Center water main extension 101,844.00$ AVON T&D 2017 Avon- Avon Regional Transportation Facility, 502 Swift Gulch Rd., water main 92,898.00$ AVON T&D 2017 Avon- 5040 Wildridge Rd., water main extensions (tank overflow & drain)8,025.00$ Page 6 of 6 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX B CONTRIBUTED CAPITAL ASSETS DECEMBER 31, 2018 Area Asset Type DATE DESCRIPTION Original Contribution EDWARDS T&D 2017 Edwards-31 Anglers Way, Anglers Preserve Water Main 117,538.00$ EDWARDS T&D 2018 EDWARDS-Edwards Fire Station #12, 33860 US Hwy 6, Edwards, Water Main 62,200.00$ AVON T&D 2018 AVON-Northside Café, 20 Nottingham Rd, Avon, Water Main 30,362.50$ EDWARDS T&D 2018 EDWARDS-Edwards Medical Center-Shaw ASC Expansion, 320 Beard Ck. Rd., Edwa 140,692.00$ EDWARDS T&D 2018 EDWARDS-The Point, 95 Edwards Pointe, 2014 Gate Valve and Fire Hydrant relocate 2,745.00$ CORDILLERA T&D 2018 CORDILLERA-Upper Loop Water Main 2017, 1715 Cordillera Way, Edwards 586,500.00$ EDWARDS T&D 2018 EDWARDS-VVMC Edwards Campus 2010, 320 Beard Ck. Rd., Edwards, Water Mian 162,500.00$ AVON T&D 2018 AVON-Walking Mountains Science Center Classroom/Office Build. 318 Walking Mount 15,330.00$ CORDILLERA Treated Storage 2004 400,000 Gallon Tank, built 1995 1,017,279.00$ CORDILLERA Treated Storage 2004 500,000 Gallon Tank, built 1990 1,117,408.00$ CORDILLERA Treated Storage 2004 Upper Summit Booster Pump & 25,000 Tank, built 2000 1,052,208.00$ CORDILLERA Treated Storage 2004 Lower Summit Booster Pump & 250,000 Tank, built 1999 1,045,547.00$ CORDILLERA Treated Storage 2004 Mirador Ridge 266,000 Gallon Water Tank, built 1995 392,717.00$ CORDILLERA Treated Storage 2004 Mirador Ridge 266,000 Gallon Water Tank, built 1995 392,717.00$ AVON Treated Storage 2016 Mt. Star Homeowner's Association - Mt. Star Tank Contribution 399,569.76$ AVON Treated Storage 2016 Town of Avon-Mt. Star Tank Contribution 855,707.00$ AVON Treated Storage 2016 Mt. Star LLC-Mt. Star Tank Contribution (paid by ERWSD, cost recovery due Mt. Star L 105,027.97$ CORDILLERA Supply 2004 Fenno Booster Pump Station, built 1990 195,375.00$ CORDILLERA Supply 2004 Pump Station: NE Interconnect Booster, built 1996 24,943.00$ CORDILLERA Supply 2004 Chlorination-Elk Springs, built 1995 169,126.00$ CORDILLERA Supply 2004 Settlers Loop Booster Pump, built 1999 209,305.00$ CORDILLERA Supply 2004 Booster Pump Station/Casteel Ridge, built 1990 217,214.00$ CORDILLERA Supply 2004 Summit Upper Phase for #6, built 1990 258,621.00$ CORDILLERA Supply 2004 7 Ranch Wells 747,237.40$ TOTAL 78,153,424.10$ Appendix C Appraisal of the Water Rights of the Upper Eagle Regional Water Authority Item 7.1 Water Rights Appraisal Item 7.1 Water Rights Appraisal Item 7.1 Water Rights Appraisal Appendix D Work-in-Progress Page 1 of 2 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX D WORK-IN-PROGRESS DECEMBER 31, 2018 ACCOUNT NUMBER - DESCRIPTION CATEGORY TOTAL ESTIMATED COST Water Dist Sys Master Plan & Hydraulic Model T&D 119,670.12$ Edwards Transmission Line Phase 2 T&D 310,949.66$ ADWF Metcalf Ditch Treatment 165,038.82$ ADWF High Zone Production Imp-Design A13 Treatment 31,734.55$ ADWF Facility Assessment Treatment 112,544.86$ Capitalized Construction Management General 440,173.15$ Traer Creek Tank Treated Storage 275,447.62$ Traer Creek Tank Investigation Treated Storage 1,087,497.57$ Traer Creek Tank Replacement Treated Storage 137,775.31$ Raw BPS Hydroscreen Treatment 58,722.27$ Design/Eng. RTU & Ifix Systems Plan T&D 734,062.85$ Reservoir Storage Master Plan Supply 362,171.46$ CRP-UERWA WST Interior/Ext Painting Treated Storage 47,447.37$ CRP-ADWF Breaker Coordination Study Treatment 5,696.00$ CRP-ADWF Turbidimeter Replacement Treatment 4,056.42$ CRP-ADWF Flocculators Treatment 75,924.22$ CRP-E-V Tanks Rehab Feasibility Treated Storage 75,974.58$ Capitalized Interest General 93,984.50$ TOTAL:4,138,871.33$ Total Estimated Work-In- Progrees ($) 534,157.65$ 362,171.46$ 1,164,682.63$ 1,624,142.45$ 453,717.14$ 4,138,871.33$ TOTAL Work-in-Progress by Asset Category General Supply T&D Treated Storage Treatment Page 2 of 2 Appendix E Master Plan Recommended Projects Page 1 of 4 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX E MASTER PLAN RECOMMENDED PROJECTS DECEMBER 31, 2018 Master Plan No.Project Type 2009 Estimated Cost of Improvements1 ENR Denver Construction Cost Index RCN2 Project Classification Total System Betterments Total Capacity Expansions Notes A2 BPS & PRV upgrade - BG 2 T&D 420,000$ 6343.19 497,502$ Improvement 497,502.01$ -$ A4 New 0.25-MG tank - Avon 3 Treated Storage 500,000$ 6343.19 592,264$ Improvement 592,264.30$ -$ A5 New 0.25-MG tank - BG 4 Treated Storage 500,000$ 6343.19 592,264$ Improvement 592,264.30$ -$ A5.A BPS Upgrade - BG 4 T&D 420,000$ 6343.19 497,502$ Improvement 497,502.01$ -$ A10 New PRV - Beaver Creek Drive (Beave Creek 3/Avon 1)T&D 155,000$ 6343.19 183,602$ Improvement 183,601.93$ -$ A14 New BPS & PRV – Strwbry. Pk 3 T&D 385,000$ 6343.19 456,044$ Improvement 456,043.51$ -$ A16.A New Greystone BPS Generator T&D 70,000$ 6343.19 82,917$ Improvement 82,917.00$ -$ A16.B New Greystone Fire Pump Station T&D 680,000$ 6343.19 805,479$ Improvement 805,479.45$ -$ A21 New PRV - Lower Daybrk Ridge (BG3/BG2)T&D 300,000$ 6343.19 355,359$ Improvement 355,358.58$ -$ A29 BPS upgrade - Beaver Creek 2 T&D 500,000$ 6343.19 592,264$ Improvement 592,264.30$ -$ A30 BPS upgrade - Beaver Creek 3 T&D 500,000$ 6343.19 592,264$ Improvement 592,264.30$ -$ A31 BPS upgrade - Bachelor Gulch 3 T&D 410,000$ 6343.19 485,657$ Improvement 485,656.73$ -$ A33 BPS upgrade (w/suct. pipe) - Dowd T&D 530,000$ 6343.19 627,800$ Improvement 627,800.16$ -$ Cost divided 50/50 between UERWA & Vail Water A34 Relocated PRV - Mulligans T&D 200,000$ 6343.19 236,906$ Improvement 236,905.72$ -$ A35 Trans. Upgrades & BPS - Whiskey Hill T&D 550,000$ 6343.19 651,491$ Improvement 651,490.73$ -$ Cost divided 50/50 between UERWA & Vail Water A36 Trans. upgrades - Avon Road T&D 200,000$ 6343.19 236,906$ Capacity Expansion -$ 236,905.72$ Necessary to support dedication of ADWF to High Zone A37 Trans. upgrades - Village/Avon Rd T&D 800,000$ 6343.19 947,623$ Capacity Expansion -$ 947,622.88$ Necessary to support dedication of ADWF to High Zone A38 Trans. upgrades - N. Fairway Dr./Beaver Creek Drive (new) T&D 200,000$ 6343.19 236,906$ Capacity Expansion -$ 236,905.72$ Necessary to support dedication of ADWF to High Zone Page 2 of 4 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX E MASTER PLAN RECOMMENDED PROJECTS DECEMBER 31, 2018 A39 Trans. upgrades - Beaver Creek Rd T&D 200,000$ 6343.19 236,906$ Capacity Expansion -$ 236,905.72$ Necessary to support dedication of ADWF to High Zone A41 Wildridge South PRV T&D 300,000$ 6343.19 355,359$ Improvement 355,358.58$ -$ A42 Beaver Creek 3 BPS (High) (BC3)T&D 1,020,000$ 6343.19 1,208,219$ Improvement 1,208,219.18$ -$ A44 Strawberry Park 1 PRV and 8" Water Line (SP1 to BC3)T&D 430,000$ 6343.19 509,347$ Improvement 509,347.30$ -$ E4 New Edwards tank (+ 0.7 MG) Treated Storage 1,500,000$ 6343.19 1,776,793$ Improvement 1,776,792.91$ -$ E5 New PRV @ Arrowhead Mountain BPS T&D 30,000$ 6343.19 35,536$ Improvement 35,535.86$ -$ E8 Upgrade Edwards Well capacity from 0.1 to 0.3 MGD Supply 300,000$ 6343.19 355,359$ Capacity Expansion -$ 355,358.58$ Increases capacity E10 Trans. upgrades - Foal Dr. T&D 1,000,000$ 6343.19 1,184,529$ Improvement 1,184,528.60$ -$ E11 Trans. upgrades - Singletree T&D 700,000$ 6343.19 829,170$ Improvement 829,170.02$ -$ E12 Trans. upgrades - June Creek T&D 1,000,000$ 6343.19 1,184,529$ Improvement 1,184,528.60$ -$ E13 Trans. upgrades - Longhorn T&D 1,100,000$ 6343.19 1,302,981$ Improvement 1,302,981.47$ -$ E14 Trans. upgrades - Homestead T&D 400,000$ 6343.19 473,811$ Improvement 473,811.44$ -$ E15 Trans. upgrades - Rolling Hills T&D 1,700,000$ 6343.19 2,013,699$ Improvement 2,013,698.63$ -$ C2 New PRV, BPS Upgrade, line connections (4 West)T&D 1,200,000$ 6343.19 1,421,434$ Improvement 1,421,434.33$ -$ C3 BPS upgrade – Cord. 1 West T&D 500,000$ 6343.19 592,264$ Improvement 592,264.30$ -$ C4 BPS upgrade – Cord. 3 East T&D 500,000$ 6343.19 592,264$ Improvement 592,264.30$ -$ C5 New PRV - Cord. 3 West BPS T&D 30,000$ 6343.19 35,536$ Improvement 35,535.86$ -$ C6 New PRV - Cord. 3 East BPS T&D 30,000$ 6343.19 35,536$ Improvement 35,535.86$ -$ C7 New 0.5-MG tank - Cord. 3 West Treated Storage 1,000,000$ 6343.19 1,184,529$ Improvement 1,184,528.60$ -$ C8 New 0.5-MG tank - Cord. 3 East Treated Storage 1,000,000$ 6343.19 1,184,529$ Improvement 1,184,528.60$ -$ C9 New line & PRV - Fenno Drive & West Timber Drive T&D 600,000$ 6343.19 710,717$ Improvement 710,717.16$ -$ C10 Line upgrade - Forest Trail T&D 1,200,000$ 6343.19 1,421,434$ Improvement 1,421,434.33$ -$ C11 New line & PRV - Fenno Drive & Red Draw Road T&D 500,000$ 6343.19 592,264$ Improvement 592,264.30$ -$ C12 New line & line upgrade - El Mirador T&D 3,200,000$ 6343.19 3,790,492$ Improvement 3,790,491.54$ -$ Page 3 of 4 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX E MASTER PLAN RECOMMENDED PROJECTS DECEMBER 31, 2018 C13 New lines (short) for connectivity - Cordillera Way T&D 400,000$ 6343.19 473,811$ Improvement 473,811.44$ -$ C14 New line - Bluegrass Court & Cottage Circle T&D 300,000$ 6343.19 355,359$ Improvement 355,358.58$ -$ C15 BPS upgrade - Cord. 2 West T&D 400,000$ 6343.19 473,811$ Improvement 473,811.44$ -$ C16 BPS upgrade - Cord. 3 West T&D 400,000$ 6343.19 473,811$ Improvement 473,811.44$ -$ C17 Line upgrade - 1 West Subzone T&D 900,000$ 6343.19 1,066,076$ Improvement 1,066,075.74$ -$ C18 Line upgrade - 3 East T&D 1,600,000$ 6343.19 1,895,246$ Improvement 1,895,245.77$ -$ C19 New line & PRV - 1 West Subzone T&D 500,000$ 6343.19 592,264$ Improvement 592,264.30$ -$ C20 New line & PRV - 9 East Subzone T&D 1,100,000$ 6343.19 1,302,981$ Improvement 1,302,981.47$ -$ C21 New line & line upgrade - 2 East T&D 500,000$ 6343.19 592,264$ Improvement 592,264.30$ -$ Total 32,860,000$ 38,923,610$ 36,909,911$ 2,013,699$ Notes: 1 Estimated Costs, presented in 2009 dollars, were obtained from 2009 SGM UERWA Water Master Plan Update, or Kennedy Jenks UERWA High Zone Improvements Study, unless noted otherwise. 2 Costs indexed to December 2018 value of 7513.69 per most recent available data from ENR Denver Construction Cost Index Page 4 of 4 UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX E MASTER PLAN RECOMMENDED PROJECTS DECEMBER 31, 2018 Category Total Improvements By Category Total Capacity Expansions By Category General -$ -$ Supply -$ 355,358.58$ T&D 31,579,532.60$ 1,658,340.05$ Treated Storage 5,330,378.72$ -$ Treatment -$ -$ Total 36,909,911.32$ 2,013,698.63$ Summary of Master Plan Improvements By Category Appendix F Capital Budget Projects UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX F CAPITAL BUDGET PROJECTS DECEMBER 31, 2018 DESCRIPTION PROJECT TYPE TOTAL ESTIMATED IMPROVEMENT COST TOTAL ESTIMATED NEW CAPACITY COST 20-1-2-00-00-028 Traer Creek Tank Replacement Treated Storage -$ 6,262,224.00$ 20-1-2-00-00-497 Wtr Dist. Sys. Master Plan & Hydraulic Model Dev. (UERWA T&D 265,330.00$ -$ 20-1-2-00-00-006 Mtn. Star BPS Upgrades T&D 62,869.00$ -$ 20-1-2-00-00-332 Berry Creek BPS Replacement T&D 1,178,200.00$ -$ 20-1-2-00-00-350 Eagle-Vail Tanks WST #1 & #2 Rehab Treated Storage 7,500,000.00$ -$ 20-1-2-00-00-479 Village Hall Water Lines Project T&D 682,277.00$ -$ 20-1-2-00-00-499 Edwards Transmission Line Phase 2 T&D -$ 4,389,853.00$ 20-1-2-00-00-502 UERWA BPS Bypass Stations T&D 885,000.00$ -$ 20-1-2-00-00-994 Reservoir Storage Master Plan Supply 414,291.00$ -$ 20-1-2-00-00-469 RTU System Upgrade T&D 4,319,187.00$ -$ 20-1-2-00-00-327 ADWF Raw BPS Intake Improvements Project Treatment 287,101.00$ -$ 20-1-2-00-00-462 ADWF High Zone Production Imp.-Design A13 Treatment -$ 2,380,000.00$ 20-1-2-00-00-490 ADWF Administration Expansion Treatment 2,270,000.00$ -$ 20-1-2-00-00-491 ADWF Analyzer Upgrades Treatment 6,052.00$ -$ 20-1-2-00-00-496 ADWF Clearwell, Settling, & Basin Hydraulic Improv Treatment 546,762.00$ -$ 20-1-2-00-00-132 ADWF HVAC Assessment Treatment 75,000.00$ -$ 20-1-2-00-00-133 Water Treatment Master Plan Treatment 200,000.00$ -$ 20-1-2-00-00-134 EDWF Membrane Rack Addition Treatment -$ 2,175,000.00$ 20-1-2-00-00-135 Water System Emergency Power General 350,000.00$ -$ TOTAL:19,042,069.00$ 15,207,077.00$ Total Estimated Improvement Cost ($) Total Estimated Growth Cost ($) 350,000.00$ -$ 414,291.00$ -$ 7,392,863.00$ 4,389,853.00$ 7,500,000.00$ 6,262,224.00$ 3,384,915.00$ 4,555,000.00$ 19,042,069.00$ 15,207,077.00$ Supply T&D Treated Storage Treatment TOTAL Work-in-Progress by Asset Category General Appendix G Plant Investment Fee Summary UERWA PLANT INVESTMENT FEE UPDATE - APPENDIX GPIF CALCULATION SUMMARYDECEMBER 31, 2018Recommended PIF Using 15-Year SFE Growth Rate ProjectionCategorySystem Capacity (SFE)Total SFE's at 2014 Year EndAvailable Capacity (SFE)Percent Capacity Available for GrowthEstimated Value of Existing Assets and Work-in-ProgressEstimated Costs of System ImprovementsTotal Existing Assets, WIP and Planned ImprovementsCost of Existing Capacity, WIP and Planned Improvements Per SFEEstimated Cost of New Capacity ProjectsEstimated Cost of New Capacity per Future SFETotal Plant Investment Fee per SFEEstimated Cost of New Capacity per Future SFEGeneral 22,886 16,721 6,165 26.94% 1,789,890$ 350,000$ 2,139,890$ 94$ -$ -$ 94$ 0.04$ Supply22,886 16,721 6,165 26.94% 5,289,781$ 414,291$ 5,704,072$ 249$ 355,359$ 58$ 307$ 0.14$ T&D22,886 16,721 6,165 26.94% 21,097,430$ 38,972,396$ 60,069,825$ 2,625$ 6,048,193$ 981$ 3,606$ 1.64$ Treated Storage 22,886 16,721 6,165 26.94% 10,899,576$ 12,830,379$ 23,729,955$ 1,037$ 6,262,224$ 1,016$ 2,053$ 0.93$ Treatment22,886 16,721 6,165 26.94% 56,437,876$ 3,384,915$ 59,822,791$ 2,614$ 4,555,000$ 739$ 3,353$ 1.52$ Water Resources 22,886 16,721 6,165 26.94% 34,301,290$ -$ 34,301,290$ 1,499$ -$ -$ 1,499$ 0.68$ TOTAL:129,815,843$ 55,951,980$ 185,767,824$ 8,117$ 17,220,776$ 2,793$ 10,910$ $4.96 Appendix H 2019 Upper Eagle Regional Water Authority Connection Fees UERWA CUSTOMER CONNECTION FEESResidentialBaseUp to XSq FtThereafter per Sq FtEfficiency Unit(0.5 SFE)Accomm Unit(0.35 SFE)Swimming Pools per Sq Ft¾"1.5 SFE1"2.6 SFE1½"5.8 SFE2"10.3 SFE3"23.0 SFE4"40.9 SFE6"92.1 SFEFloor AreaTiers Sq Ft in TIER Price per Sq FtTIER TOTAL TIER 1 0 - 2,500$4.96$12,398TIER 2 2,501 - 3,500$6.20$6,199TIER 3 3,501 - 5,000$7.75$11,623TIER 4 5,001 +$9.69+ overage Arrowhead Mountain - Water(1)$8,250600$3.00 $4,125 $2,888$7,500 $13,000 $29,000 $51,500 $115,000 $204,500 $460,500 Bachelor Gulch - Water (1)$5,500600$2.00 $1.75 /sq ft $1.75 /sq ft Cordillera - Water (1)$7,000 2,500$2.00 $2,500 $1,750N\A$13,000 $29,000 $51,500 $115,000 $204,500 $460,500 Plus, Administrative Fee Sewer Lines Town of Avon - Water (1)$4,000 3,000$2.00 $2,000 $1,400 $2.00$6,000 $10,400 $23,200 $41,200 $92,000 $163,000 $368,000 Plus, Oversized Unit Surcharge (Applies to units in Avon)$03,000$1.40 Plus, Oversized Unit Surcharge (Applies to units in Mtn. Star)$07,500$1.40 Village at Avon/Traer Creek - Avon Water (1)$4,000 3,000$2.00 $2,000 $1,400 $2.00$6,000 $10,400 $23,200 $41,200 $92,000 $163,000 $368,000Plus, Incremental Sewer Tap FeH$0.97$3,308 $5,733 $12,789 $22,712 $50,716 $90,186 $203,083Plus, Water Development FeeTier 1 0 - 600 $2.50(Min $1,500 )$2.00$3,000 $5,200 $11,600 $20,600 $46,000 $81,500 $184,000Tier 2>601 $2.00 ERWSD- Wastewater0N/A$3.86$13,230 $22,932 $51,157 $90,847 $202,862 $360,742 $812,331 UERWA-Irrigation Water Impact Fee West Edwards Sewer Encumbrance FeeIn Addition to the UERWA WSIF (above), Member Districts have the following Connection Fee assessments:CONNECTION FEES - As of October 1, 2019Upper Eagle Regional Water AuthorityDISTRICTSRESIDENTIALCOMMERCIAL - Based on Meter SizeUERWA WSIF (Water System Impact Fee)$16,366$28,367$63,280$112,377$250,940$446,236$1,004,850$1,000 per SFE$1,000 per SFE$2 per square foot of Commercial Floor Area$1,500$1,500up to $4,200 per SFEup to $4,200 per SFE If connecting to the Wastewater System the following Connection Fee assessment Shall apply: The following Other Connection Fee assessments May also apply:$1.09 per sq. ft. of irrigationApplies to new multi-family, open areas, new parks and commercial irrigated areas TOWN COUNCIL REPORT To: Honorable Mayor Smith Hymes and Avon Town Council From: David McWilliams, Town Planner Meeting Date: August 27, 2019 Topic: CONTINUED PUBLIC HEARING AND REVIEW OF PLANNING AND ZONING COMMISSION RECOMMENDATION - AVON MUNICIPAL CODE AMENDMENTS TO PERMIT COMMUNITY HOUSING IN THE LIGHT INDUSTRIAL AND COMMERCIAL EMPLOYMENT DISTRICT ZONE DISTRICT BY SPECIAL REVIEW USE ACTION BEFORE COUNCIL Public Hearing and direction to pursue or not pursue an Ordinance amending the Town of Avon Municipal Code to permit Community Housing in the Light Industrial and Commercial Employment District zone district by Special Review Use (SRU). APPLICATION BACKGROUND Town Council tasked the Community Development department with initiating the Code Text Amendment (CTA) process to determine the best way to provide Community Housing* in the Light Industrial and Commercial Employment District (IC). In front of Town Council are code text amendments that would allow increased densities within the IC district through the SRU process. *Community Housing means residential housing which is subject to a deed restriction that limits use to long-term residential use as a primary residence by qualified persons and which deed restriction may impose other restrictions and limitation and may include terms deemed appropriate in the Town’s discretion, including but not limited to controls on the resale price of such residential property, and which deed restriction is enforceable by the Town. PROCESS Once Council initiated the CTA process, staff scheduled a series of work sessions with the Planning and Zoning Commission (PZC) in to prepare the code language. After two (2) work sessions and two (2) public hearings, PZC voted unanimously to recommend denial of the changes (Attachment 1). AREA BACKGROUND The IC zone district originated in 1974 as part of the Benchmark subdivision, before Avon was a town. Wildridge had yet to be conceived, so the district was isolated and at a dead-end. As Avon grew around it, the IC district developed and by 1999, all the current buildings had been completed. While the uses and businesses have come and gone, the district itself is best described as mature or fully developed, with few vacant lots remaining. Five (5) of the properties have Accessory Dwelling Units (ADUs) within them, for a total of 12 units. In various iterations of the municipal code, they seemed to be by-right; now they all are subject to the Special Review Use (SRU) process. Code allows up to four (4) ADUs per property, and two (2) properties are at that limit. In some senses this speaks to the amount of demand for commercial space and the inherent complexity of retrofitting existing buildings and combining the uses where various owners or tenants are already established. Staff is unaware of any covenants that prohibit housing in the area but would not be surprised if some properties had such provisions. Some of the properties were originally built with their unit(s), while others had commercial space retrofitted to allow for housing. One of the more recent buildings, the vet hospital, was planned and constructed with all four (4) units as the top floor of the project. Currently there are four (4) vacant lots within the zone district – three (3) are somewhat physically isolated from the heart of the district and all of them have constraints to construction. Staff reviewed the uses and created the table below to illustrate the existing conditions in the area. Staff does not guarantee the accuracy of any individual piece of the information in the table but presents it as a tableau of the area in general. Address Lot Size (acres) Size of Buildings (sf)Floors Primary Use Has ADU Total number of DUs Proposed DU total 220 Metca 10 3.3 --Energy Facility No 25 451 Metca 11 0.96 6480 2 Commercial No 7 431 Metca 12 0.592 7734 2 Storage Yes 4 4 411 Metca 13 1.047 5150 1 Commercial No 8 371 Metca 14 / 15 2.82 55200 3 Commercial yes 2 21 311/331 M 16 / 17 3.276 19211 3 Commercial no 25 281 Metca 18 / 19 2.76 44586 3 Storage / Commercial no 21 111 Metca 20 / 21 2.04 --Vacant / Dog Run No 15 77 Metcalf 22 0.89 13882 3 Commercial No 7 810 Nottin 23 0.574 12056 1 Commercial No 4 830 Nottin 24 0.656 10335 1 Commercial No 5 850 Nottin 25 1.409 41640 2 Storage Yes 1 11 910 / 930 N 26 - 28 2.29 65817 3 Storage / Commercial yes 1 17 950 Nottin 29 1.454 13300 1 Commercial No 11 710 Nottin 30 0.537 --Vacant No 4 730 Nottin 31 0.576 14000 3 Vet Office Yes 4 4 780 Nottin 32 / 33 0.997 14480 1 Commercial No 7 80 Metcalf 34 0.642 10000 2 Commercial No 5 90 Metcalf 35 0.536 7750 1 Storage / Commercial No 4 120 Metca 36 0.328 2746 2 Commercial No 2 140 Metca 37 0.763 14080 1 Storage / Commercial No 6 240 Metca 39 2.81 --Vacant (TOA Property)No 21 NA Tract Y 7.232 --Vacant No 54 THE SPECIAL REVIEW USE (§7.16.040) “(a) Purpose. This Section provides a discretionary approval process for special review uses that have unique or widely varying operating characteristics or unusual site development features. The procedure encourages public review and evaluation of a use's operating characteristics and site development features and is intended to ensure that proposed use will not have a significant adverse impact on surrounding uses or on the community at large. Special review uses that may be allowed in each zone district are listed in Table 7.24-1, Allowed Uses… “Special review use approvals shall expire pursuant to this Section. The PZC may approve a SRU permit in perpetuity, but may assign a shorter time as deemed necessary. At least thirty (30) days prior to the expiration, the holder of the special review use approval may apply for a review hearing before the PZC. The PZC shall review the use against the criteria in Subsection (e) above to determine whether the special review use will be allowed to continue. (1) Developments and uses granted by a special review use permit shall be developed or established in accordance with an approved development schedule or within two (2) years of the date of approval if no development schedule is established. Failure to develop or establish such development or uses in accordance with the time period approved on the permit shall result in the expiration of the permit. (2) If an approved use ceases operation for any reason for a period of one (1) year, the special review use permit shall be deemed expired. If the conditions of a permit become the responsibility of a person or entity other than the applicant, the Director shall be notified in writing, identifying the new person or entity responsible for maintaining the conditions of the approval/permit. Until such notice is received, the applicant shall remain responsible. Such notice shall be attached to the permit on file at the Town. (3) If conditions of approval are not maintained, it shall be considered a violation of this Code and subject to revocation proceedings.” Generally, SRUs have more to do with use than built form. That is, SRUs generally are needed to decide upon a use within an existing space, not whether the space should be built. It is unlikely that any applicant for a Community Housing Project would request anything less than perpetuity. SRU REVIEW CRITERIA Code requires the PZC to use the following criteria on all SRU applications. While these criteria are not applicable for a CTA, staff’s responses are indicative of the hurtles that an applicant would need to cross, and the responses needed to get approved. Additional review criteria are being proposed, with responses further below: 1) The proposed use is consistent with the Comprehensive Plan and all applicable provisions of this Development Code and applicable state and federal regulations; Staff Response: The Comprehensive Plan states: [Current] uses provide an important component to Avon’s overall economic health… Existing uses on Nottingham and Metcalf Roads are intensely developed with large buildings and need improved landscaping, access, and screening. The Town should work towards improved traffic safety and aesthetics. Live/ work development opportunities in the Light Industrial and Commercial zone district that do not possess significant conflicts with surrounding land uses should be encouraged. The Planning Principle section states: “Accommodate residential development that supports primary industrial or employment land uses.” The Comprehensive plan prioritizes the current (or arguably denser) scale of ADUs but not a wholesale conversion of existing uses to residential. The undeveloped parcels in the IC zone district would not raise the same concerns as the rest, but perhaps this is a case to be made for the Rezoning process of these parcels and not a SRU. Staff feels that the proposal deviates from the area specific language. A Comprehensive Plan revision that better addresses the SRU process is not proposed at this time. The Community Housing Plan (part of the Comprehensive Plan) gives strong but general support for Community Housing. It lacks specific guidance with where the housing should be focused other than a few specific properties. 2) The proposed use is consistent with the purpose and intent of the zoning district in which it is located and any applicable use-specific standards in the Development Code; Staff Response: In the CTA, staff revised the IC district purpose (7.20.080) to better align with this criterium. 3) The proposed use is compatible with adjacent uses in terms of scale, site design and operating characteristics; Staff Response: Staff does not feel strongly that, all things being equal, residents need to be protected or segregated from the majority of uses in the IC zone or vice-versa. However, the district is well established, located in a physically isolated section of town, away from parks, schools, transportation, etc. and in many ways is not conducive to a large residential development. Likewise, residential uses near the current uses can put pressure on them to redevelop, thereby losing the jobs (and tax base) present. 4) Any significant adverse impacts (including but not limited to hours of operation, traffic generation, lighting, noise, odor, dust and other external impacts) anticipated to result from the use will be mitigated or offset to the maximum extent practicable; Staff Response: There are mobility and transportation concerns that a proposed change would bring. Placing Community Housing away from the Town Core raises concerns about how workers are expected to get around and how the road network can handle the increased traffic in a relatively isolated section of town. Basic amenities such as sidewalks and streetlights are not provided. Staff would expect an applicant to detail how their project would mitigate these concerns but is doubtful they will be fully assuaged. 5) Facilities and services (including sewage and waste disposal, water, gas, electricity, police and fire protection and roads and transportation, as applicable) will be available to serve the subject property while maintaining adequate levels of service for existing development; and Staff Response: Fiscal impacts to the town and the region may also be reason for judicious review of any SRU proposal. Staff estimates that approximately $208,000, or 2.5% of the town’s overall sales tax collection in a given year, is collected in the IC zone district. Staff did not estimate the impact of the 2% transfer tax collected by the town as a way to recoup some of the potential losses because the units would be deed restricted and therefore exempt from the transfer tax. The lifeblood of municipal coffers is sales tax and eliminating businesses in town would result in a lower tax base. More public services may be required with a smaller sales tax base to draw from. 6) Adequate assurances of continuing maintenance have been provided. Staff Response: The concerns are the same as above. Additional SRU Criteria Staff proposes the inclusion of the following review criteria for applications that propose four (4) or more dwelling units per property in the IC zone district, in addition to the SRU criteria above. These additional criteria are an attempt to limit the type and location of properties that would be subject to a drastic change in use. 1. Compatibility with surrounding land uses; 2. Whether the proposed development is justified by changed or changing conditions in the area proposed to be developed; 3. Whether there are adequate facilities available to serve development of the type and scope suggested by the proposal compared to the existing use allowances, while maintaining adequate levels of service to existing development; 4. That, compared to the existing zoning, the development is not likely to result in significant adverse impacts upon other property in the vicinity of the subject tract; 5. The fiscal loss associated with net loss in IC uses due to the proposal is mitigated by the community’s need for housing; 6. The property is underutilized or underdeveloped and would function better as Community Housing; 7. That all of the housing provided will be deed restricted as Community Housing. 8. Architecture that responds to the sensitive site conditions and raises the standard of design for the rest of Town are being provided; and 9. The application provides an appropriate environment for housing. Staff Response: The proposed additional criteria takes four (4) criteria from Rezoning to better define where the change in use would be appropriate enough to warrant approval. They also require an applicant to demonstrate that the project is financially and aesthetically cohesive with the rest of town. PZC REVIEW AND RECOMMENDATIONS Work Sessions – Staff worked with PZC to create a purpose statement for the CTA process that guided the language choices. It reads: To codify a process that allows quality Community Housing in the Light Industrial and Commercial Employment District on underutilized or otherwise suitable locations, through the SRU process. With that as a starting point, staff sought to walk a fine line between opening up the possibility of housing while also protecting the important jobs base in the area. Public Hearings - A summary of the changes proposed by staff include: • Changing the IC district purpose statement to open the possibility for a housing-only parcel. • Change in the review for up to four (4) ADU from SRU process (brought to PZC) to staff-review. • Increase in the number of accessory units allowed per property from four (4) to eight (8), with four (4) or less ADUs per property allowed by-right and over 4 dwelling units per property requiring the SRU process. • Creation of three (3) use types within the IC zone district to steer applicants to the desired design type and possibly lower bar for SRU applications. Two types have a residential density maximum of 10 dwelling units per acre. • Addition of SRU criteria for application types that contain more than four (4) ADUs. • Requirement that housing above four (4) units per property be deed restricted Community Housing. CODE TEXT AMENDMENT REVIEW CRITERIA The review procedures for this application are governed by the Development Code. According to the AMC §7.16.040(c), Review Criteria, the PZC and Town Council shall use the following review criteria as the basis for recommendations and decisions on applications to amend the text of the Development Code: (1) The text amendment promotes the health, safety and general welfare of the Avon community; (2) The text amendment promotes or implements the goals and policies of the Avon Comprehensive Plan; (3) The text amendment promotes or implements the purposes stated in this Development Code; or (4) The text amendment is necessary or desirable to respond to changed conditions, new planning concepts or other social or economic conditions. Staff Response: Staff worked hard to balance the proposal to respond to changed conditions while maintaining the general welfare of the Avon community by preserving the job base in the district. Goal B.5 in the Comprehensive Plan states: Encourage revitalization of existing light industrial and manufacturing uses. Policy B.5.1: Ensure infrastructure improvements include sidewalks, utilities, and controlled access from collector roads, like Nottingham Road. Policy B.5.2: Encourage effective screening of industrial uses from adjacent uses and vehicular access and circulation separate from public roads. Policy B.5.3: Review accessory residential uses in association with light industrial commercial development when compatible. The application balances reusing light industrial and manufacturing uses against the revitalization of the district by potentially allowing redevelopment in appropriate areas. The Community Housing Plan, as part of the Comprehensive Plan, states the following goals: • Achieve a diverse range of housing densities, styles, and types, including rental and for sale, to serve all segments of the population. • Focus on increasing deed restricted homeownership opportunities for households making equivalent of 140% or less of the Area Median Income - $430,000 for a household of three people in 2018. • Grow the inventory of homeownership and “missing middle” inventory, in place of additional rental housing stock, to create a more balanced portfolio with a long-term goal of 50% rental, 50% ownership. • Seek to add deed restricted units to the inventory in the short term. Select purposes of the Development Code state: (a) Divide the Town into zones, restricting and requiring therein the location, erection, construction, reconstruction, alteration and use of buildings, structures and land for trade, industry, residence and other specified uses; regulate the intensity of the use of lot areas; regulate and determine the area of open spaces surrounding such buildings; establish building lines and locations of buildings designed for specified industrial, commercial, residential and other uses within such areas; establish standards to which buildings or structures shall conform; establish standards for use of areas adjoining such buildings or structures; (n) Achieve a diverse range of attainable housing which meets the housing needs created by jobs in the Town, provides a range of housing types and price points to serve a complete range of life stages and promotes a balanced, diverse and stable full time residential community which is balanced with the visitor economy; While different zone districts have allowances of mixed use, the IC zone district has stricter parameters limiting that mix than the others. For example, the Mixed-Use Commercial (MC) zone district allows for 100% commercial or 100% residential. Staff is not opposed to a more mixed-use future in this district but warns that eliminating IC uses is a worrying outcome of a more liberal approach to the SRU. No housing is affordable without a living wage and removing a jobs base from Town may produce that result. Therefore, this CTA takes a narrow approach at increasing housing in this zone district, which staff suggests is the right way to strike a balance between more housing units and preservation of existing jobs. FINDINGS OF FACT AND RECORD OF DECISION In the two hearings, members of PZC voiced their strong disagreement with the SRU as the correct process to review housing projects in the IC district. The SRU process was seen as a poor substitute to the Rezoning process to allow Community Housing because it undermines the preestablished rules for the drastic change in use. PZC voted to recommend denial of the application to Town Council (Attachment 1). Fundamentally, the body encourages a different approach (namely rezoning, a housing overlay district, and public-private partnerships (PPP)) to achieve Community Housing, instead of an expansion of the SRU process. The fact that the SRU process could require 100% of the additional units provided within the zone district to be deed restricted Community Housing was not particularly compelling. Members of PZC stated that due to the physical constraints on the undeveloped properties in the district, a PPP would probably need to be formed anyway, thus ensuring a large amount of the units created be deed restricted. Further, having received no input from the owners of the vacant properties, PZC generally had a hard time changing the parameters by which the properties are governed. STAFF RECOMMENDATION Staff recommends no further action on the item unless the Town Council chooses to strip the Ordinance of all sections except for the ADU increase from four (4) to eight (8). In that case, staff recommends initiating the first reading for the September 10, 2019 Town Council meeting, so staff can present a revised copy of the Ordinance. FURTHER RECOMMENDATIONS Staff’s focus on the IC zone district for this CTA led to some interesting compliance issues and other overarching observations for how to make it align closer to its purpose statement (found updated in the Ordinance, Attachment 2). Review Zone district uses – Staff feels that to best achieve the current intent of the zone district, certain changes in use allowance or programmatic focuses may be appropriate: • Self-storage, while necessary for many in the modern world, does not produce a large jobs base or fit well into the purpose statement for the IC zone district. Staff recommends capping the number of self-storage operations (through zoning or business license restrictions) at three (3), the current number. • The following uses are not permitted in the IC district. Furniture store; plant nursery; office supply store; paint store. While staff has not heard much demand for these operations in the district, staff suggests that adding them to the SRU list might spur additional businesses to locate in the town. Potential Programs - The IC zone district supports many year-round high paying jobs where a formal education is not required. Further supporting efforts in technology, micro industry (niche manufacturing), or a maker space may spur a more robust jobs base. Code Changes - ADU vs Live / Work: The IC district currently allows up to 4 ADUs per property as part of an SRU application. This use is not displayed in Table 7.24.040 as allowed in the IC district. Live / Work is a category in Table 7.24.040 but is not defined, and Live / Work is not shown as permitted in the IC district. Staff suggests a cleanup that corrects this. Rezoning – • The town owns Lot 39, Block 1 Benchmark at Beaver Creek (picture, left) and it is zoned IC. Staff does not anticipate any potential development on the site and suggests that the property be rezoned to open space. • Rezone Tract Y. Staff would seek owner approval for a Town Council initiated rezoning. ATTACHMENTS 1. PZC Recommendation 2. Ordinance Language LINKS Avon Comprehensive Plan https://www.avon.org/DocumentCenter/View/83/Comprehensive- Plan?bidId= Avon Community Housing Plan http://www.avonrec.org/DocumentCenter/View/18728/Avon- Housing-Plan If Your City Wants Equitable Job Growth, It Has to Zone for It https://nextcity.org/daily/entry/if-your-city-wants-equitable-job- growth-it-has-to-zone-for-it Affordable Housing Overlay Zone (AHOZ) Background and Links https://homeforallsmc.org/wp-content/uploads/.../AHOZ-Fact-Sheet_6_17_14.docx Making way for “Makers” https://planning.org/planning/2014/feb/makingway.htm Attachment 1 Ord 19-XX IC Zone District Revisions August 13, 2019 Page 1 of 7 TOWN OF AVON ORDINANCE 19-XX AMENDING SECTIONS 7.20.080, TABLE 7.20-13, 7.24.040, 7.24.060 & 7.24.070 OF THE TOWN OF AVON MUNICIPAL CODE TO PERMIT COMMUNITY HOUSING IN THE LIGHT INDUSTRIAL AND COMMERCIAL EMPLOYMENT DISTRICT ZONE DISTRICT BY SPECIAL REVIEW USE RECITALS WHEREAS, the Avon Town Council (“Town Council”) initiated a code text amendment application (“Application”) to amend the text of the Avon Development Code (“ADC”) in accordance with ADC §7.16.040, Code Text Amendment; WHEREAS, the Avon Planning & Zoning Commission (“PZC”) held a public hearing on July 2, 2019, after publishing and posting notice as required by law, considered all comments, testimony, evidence and staff reports provided by the Town staff prior to formulating a recommendation; WHEREAS, after conducting the noticed Public Hearings, PZC made the required findings to recommend approval of the Application to the Town Council; WHEREAS, the Town of Avon (“Town”) is a home rule municipal corporation and body politic organized under the laws of the State of Colorado and possessing the maximum powers, authority and privileges to which it is entitled under Colorado law; WHEREAS, pursuant to the home rule powers of the Town, the Town Council has the power to adopt Health and Safety Codes, and make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the comfort, and convenience of its inhabitants; WHEREAS, the Town Council held a public meeting on XXXXXXX, 2019, to consider the Application and first reading; WHEREAS, the Town Council held a Public Hearing on August 13, 2019 and XXXXX, 2019, after posting notice as required by law, considered all comments, testimony, evidence, Planning and Zoning Commission recommendations, and staff reports prior to taking action on the Application; WHEREAS, the Town Council finds that changes to the Light Industrial and Commercial Employment (IC) District provide a method of delivering more Community Housing to residents and workers in the Town; WHEREAS, the Application was reviewed with the criteria listed in ADC §7.16.040(c), Review Criteria, and are found to be in substantial compliance; Attachment 2 Ord 19-XX IC Zone District Revisions August 13, 2019 Page 2 of 7 WHEREAS, the Application promotes and implements the goals and policies of the Avon Comprehensive Plan, including but not limited to implementation of the Avon Community Housing Plan by providing additional housing development in the IC District; WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Town Council desires to comply with state law, the Avon Home Rule Charter and the ADC by setting a public hearing in order to provide the public an opportunity to present testimony and evidence regarding the application and that approval of this Ordinance on first reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies the proposed Application. NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Amendment to Section 7.28.080 - Mixed-use and commercial districts purpose statements. is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: (g) Light Industrial and Commercial (IC). This district is intended to provide for a variety of businesses, including warehouses, research and development firms, repair shops, wholesale distributors, light manufacturing, and Community Housing. This district may include supporting office and commercial uses where appropriate. Uses permitted in this district are intended to serve community and regional needs. This district is intended to be located away from low and medium density residential development. The IC district implements the light industrial commercial and employment classification of the Avon Future Land Use Plan and should be located along an arterial roadway. Section 3. Amendment to Table 7.20-13 - Dimensions for the Light Industrial and Commercial Employment District. is hereby amended to read as follows, with strike-out indicating language to be deleted and underline indicating language to be adopted: USE TYPE Min. Lot Size (acres or sq. ft.) Min. Lot Width (feet) Max. Lot Coverage (%) Min. Landscape Area (%) Min. Front Setback (feet) Min. Side Setback (feet) Min. Rear Setback (feet) Max. Building Height (feet) Max. Density Residential Primary IC Use 21,780 sq. ft. 100 50 20 25 7.5 10 48 48 accessory units [12] Mixed-IC Uses- [1] 21,780 sq. ft. 100 50 20 25 7.5 10 48 10 du/acre [2] Attachment 2 Ord 19-XX IC Zone District Revisions August 13, 2019 Page 3 of 7 Increased Residential 21,780 sq. ft. 100 50 20 25 7.5 10 48 10 du/acre [2] [1] Accessory dwelling units are permitted as a special review use pursuant to Section 7.16.100. At least 50% of the ground floor area is designated for IC uses; or the first floor(s) of the development are devoted to commercial or industrial uses. [2] Residential densities above 4 units per property or residential-only developments are permitted as a special review use pursuant to Section 7.16.100 and additional review criteria in Section 7.24.060(c). Section 4. Amendment to Section 7.24.040 - Table of allowed uses. is hereby amended to read as follows, with strike-out indicating language to be deleted and underline indicating language to be adopted: Use Category Use Type P - Permitted Use S = Special Review Use Districts in GREY are retired and not available for rezoning. Use- Specific Regulatio ns Residential Nonresidential R D R L R M R H RH -C NC MC TC SC P P F IC OLD Residential Uses Household Living Dwelling, Single- Family Detached P P S Dwelling, Two- Family/ Duplex P P P S Dwelling, Townhou se P P P P P P S Attachment 2 Ord 19-XX IC Zone District Revisions August 13, 2019 Page 4 of 7 Dwelling, Multi- Family P [1] P P P P P S S [2] [1] Limited to 8 units per building in RM [2] 7.24.060( c) Dwelling, live/ work S S S S S S P S Accessor y DU S S S S P/ S [1] 7.24.070( e) [1] 4 units are allowed by right; up to 8 units per property are allowed by SRU Section 5. Amendment to Section 7.24.060 - Special review uses. is hereby amended to read as follows, with underline indicating language to be adopted: (c) Residential uses in the IC zone district - Additional review criteria. The PZC shall use the following review criteria as the basis for decisions on applications for residential densities over four (4) units per property in the IC zone district: 1. Compatibility with surrounding land uses; 2. Whether the proposed development is justified by changed or changing conditions in the area proposed to be developed; Attachment 2 Ord 19-XX IC Zone District Revisions August 13, 2019 Page 5 of 7 3. Whether there are adequate facilities available to serve development of the type and scope suggested by the proposal compared to the existing use allowances, while maintaining adequate levels of service to existing development; 4. That, compared to the existing zoning, the development is not likely to result in significant adverse impacts upon other property in the vicinity of the subject tract; 5. The fiscal loss associated with net loss in IC uses due to the proposal is mitigated by the community’s need for housing; 6. The property is underutilized or underdeveloped and would function better as Community Housing; 7. That all of the housing provided will be deed restricted as Community Housing. 8. Architecture that responds to the sensitive site conditions and raises the standard of design for the rest of Town are being provided; and 9. The application provides an appropriate environment for housing. Section 6. Amendment to 7.24.070 – Accessory Uses and Structures. is hereby amended to read as follows, with strike-out indicating language to be deleted and underline indicating language to be adopted: (e)Additional Standards for Specific Accessory Uses and Structures. (1) Accessory Dwelling Units. An accessory dwelling unit shall be permitted as a Special Review Use subject to the following standards: (i) Districts Allowed. Accessory dwelling units shall be allowed as accessory uses to principal residential uses in the following districts: IC, PF, RL, RD and RM. (ii) Where Permitted on Lot. A permitted accessory dwelling unit shall comply with all applicable site and building design, access and other standards for principal uses dwelling units in the zoning district in which the accessory dwelling unit will be located. Accessory dwelling units may be a separate structure from the principal structure or be attached to and part of the principal structure. Recreational vehicles, travel trailers and any other wheeled or transportable structure shall not be used as accessory dwelling units. (iii) Requirements in the RL, RD and RM zone district: (A) Size of Accessory Dwelling Unit. No accessory dwelling unit shall exceed thirty-three percent (33%) of the size of the habitable floor area of the principal unit or six hundred (600) square feet, whichever is less. An accessory dwelling unit shall contain private sanitary facilities with hot and cold running water and cooking and food storage facilities. (iv)(B) Limit on Number. There shall be no more than one (1) accessory dwelling unit on a lot in addition to the principal single-family dwelling. (v)(C) Off-Street Parking. At least one (1) off-street parking space shall be provided for each accessory dwelling unit. (iv) Requirements in the IC zone district: Attachment 2 Ord 19-XX IC Zone District Revisions August 13, 2019 Page 6 of 7 (A) All accessory dwelling units shall be deed restricted as Community Housing. (B) Off-Street Parking. Parking allocation is subject to Section 7.28.020. (C) Up to eight (8) accessory dwelling units are permitted on each lot. Four (4) units are permitted by-right and an additional four (4) units are permitted through the Special Review Use process. Section 7. Codification of Amendments. The codifier of the Town’s Municipal Code, Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal Code. The Town Clerk is authorized to correct, or approve the correction by the codifier, of any typographical error in the enacted regulations, provided that such correction shall not substantively change any provision of the regulations adopted in this Ordinance. Such corrections may include spelling, reference, citation, enumeration, and grammatical errors. Section 8. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term “provision” means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term “application” means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 9. Effective Date. This Ordinance shall take effect thirty (30) days after final adoption in accordance with Section 6.4 of the Avon Home Rule Charter. Section 10. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town, that it is promulgated for 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 11. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. Section 12. INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on XXXXXXXX, 2019 and setting such public hearing for XXXXXXX, 2019 at the Council Chambers of the Avon Municipal Building, located at One Hundred Mikaela Way, Avon, Colorado. Attachment 2 Ord 19-XX IC Zone District Revisions August 13, 2019 Page 7 of 7 BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ADOPTED ON SECOND AND FINAL READING on XXXXXXX, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Paul Wiser, Town Attorney Attachment 2 Report re: Ordinance No. 19-05 Increasing Primary Residence Exemption Page 1 of 4 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: August 9, 2019 SUMMARY: Ordinance No. 19-05 is presented to Council for consideration and review on first reading. This ordinance and memorandum were provided to Council at the July 9, 2019 Council meeting and continued to this August 13, 2019 Council meeting for further consideration on first reading. Any increase in the exemption for primary residences will reduce revenues for the Capital Improvements Plan. A draft Capital Improvements Plan is scheduled for presentation to Council at the September 10, 2019 Council meeting. RECOMMENDATION: A recommendation for Council consideration is to approve first reading of Ordinance No. 19-05 with a more limited and targeted increase in the primary residence exemption to only $320,000 (which would double the exemption from the current $160,000) and limit the availability of the exemption to purchases that do not exceed $960,000 and set the public hearing for September 10, 2019 to be scheduled after the presentation on the Capital Improvements Plan. The impact to the Capital Improvements Fund is anticipated to be a reduction of $208,000 in available funds for Capital Improvements each year. Council can then consider the impacts to the Capital Improvements Plan in more detail at the September 10, 2019 Council meeting. 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. From the prior report on July 9, 2019: 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 Report re: Ordinance No. 19-05 Increasing Primary Residence Exemption Page 2 of 4 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 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. Report re: Ordinance No. 19-05 Increasing Primary Residence Exemption Page 3 of 4 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 asimple option that is very easy to adopt and administer. This exemption would be available to allprimary residence purchasers regardless of the sales price of the residence. If Council desires thisoption, then Ordinance No. 19-01 can be amended to simply amend AMC Sections 3.12.060(15) and(16) to increase the $160,000 exemption amount. 2.Increase the $160,000 primary residence exemption but limit eligibility for the additional exemption toresidences that do not exceed a maximum affordable prices based on the Area Median Income forEagle 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 topersons 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 thecurrent 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 Report re: Ordinance No. 19-05 Increasing Primary Residence Exemption Page 4 of 4 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 Aug 27, 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 Aug 27, 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 applicationis accompanied by: 1.An affidavit that the applicant meets the definition of Eagle County employee; thatthe 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 interestaccruing 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 fortythousand 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 buyerand 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 Aug 27, 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 Aug 27, 2019 FIRST READING Page 4 of 4 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on August 27, 2019 and setting such public hearing for September 10, 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 September 10, 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 Avon Town Council From: Preston Neill, Deputy Town Manager Date: August 27, 2019 Topic: FIRST READING ORDINANCE 19-07, ENACTING CAMPAIGN FINANCE REGULATIONS ACTION BEFORE COUNCIL: Town Council is asked to take action on First Reading of Ordinance 19-07, Enacting Chapter 1.14 of Title 1 of the Avon Municipal Code Pertaining to Campaign Finance. PROPOSED MOTION: “I move to approve [with or without modifications] First Reading of Ordinance 19-07, Enacting Chapter 1.14 of Title 1 of the Avon Municipal Code Pertaining to Campaign Finance.” SUMMARY: There has been an ongoing, national debate on the role money plays in campaigns for elected office. Campaign finance laws, which are found on the federal, state, and local levels, have been developed in order to reduce the potential, real or perceived, for money to influence an elected official’s voting behavior. Presently, there are no campaign contribution limits for municipal elections in the Town of Avon. A candidate for elective Town office may raise an unlimited amount of money from any one source. With 2020 Town Council campaigns not too far off, it is timely that the Town Council discuss, review and consider enacting legislation to reduce the role money plays in local Town Council campaigns. In its current form, the proposed Ordinance, if enacted, would: • Require all candidates for the office of Town Council to certify by affidavit that they are familiar with the provisions of the Chapter. • Require all candidate committees, political committees and issue committees to register with the Town Clerk before accepting or making any contributions. • Limit contributions and/or contributions in kind to the candidate committee of any candidate for the office of Town Council to $100 per person. • Require all candidate committees, political committees and issue committees to report to the Town Clerk their contributions and contributions in kind received that are $20.00 or more, expenditures made, and obligations entered into by the committee. • Prohibit contributions from any person who is not a citizen of the United States, or from a foreign government, corporation, labor union, or political party. • Establish regulations for unexpended campaign contributions. • Establish both civil and criminal penalties for violations of the Chapter. ATTACHMENT: Ordinance 19-07 Ord 19-07 FIRST READING – August 27, 2019 Page 1 of 3 TOWN OF AVON, COLORADO ORDINANCE 19-07 ADDING CHAPTER 1.14 OF TITLE 1 OF THE AVON MUNICIPAL CODE PERTAINING TO CAMPAIGN FINANCE WHEREAS, the Town of Avon, Colorado (the "Town") is a home rule municipality existing pursuant to the laws of the Colorado Constitution, the Colorado Revised Statutes and the Town's Home Rule Charter; WHEREAS, various efforts have been made to enact valid campaign financing and disclosure regulations and reforms at all levels of government; and WHEREAS, §1-45-116, C.R.S., of the Colorado Fair Campaign Practices Act, state, in pertinent part: “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.” WHEREAS, the manner of electing Town officers and of financing political campaigns supporting or opposing candidates for Town office and ballot issues and ballot questions referred to or initiated by Town electors for a vote of the entire Town electorate, are matters affecting the organization and structure of Town government and are matters affecting the elective franchise and potential abuses of the elective franchise; and therefore are within the constitutional and statutory authority of Town electors and the governing board to regulate by duly adopted home rule charter or ordinance; and WHEREAS, as a result of its status as a home rule town, the Town of Avon has a tradition and culture acknowledging the value and importance of transparency and disclosure in the financing of campaigns in local elections; and WHEREAS, the Avon Town Council finds that this Ordinance furthers and is necessary for the promotion of public health, safety and welfare. NOW, THERFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Addition of Chapter 1.14 to Title 1 of the Avon Municipal Code. Chapter 1.14, “Campaign Finance” is added to Title 1, “General Provisions,” of the Avon Municipal Code to read as set forth in Exhibit A: Addition of Chapter 1.14 to Title 1 of the Avon Municipal Code, attached hereto. Ord 19-07 FIRST READING – August 27, 2019 Page 2 of 3 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. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term “provision” means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term “application” means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 5. Effective Date. This Ordinance shall take effect thirty (30) days after final adoption in accordance with Section 6.4 of the Avon Home Rule Charter. Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 7. No Existing Violation Affected. Nothing in this Ordinance shall be construed to release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing which may have been incurred or obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall be treated and held as remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and for the purpose of sustaining any judgment, decree or order which can or may be rendered, entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or declaring such penalty or liability or enforcing such right, and shall be treated and held as remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and appeals pending before any court or administrative tribunal. Section 8. Publication. The Town Clerk is ordered to publish this Ordinance in accordance with Chapter 1.16 of the Avon Municipal Code. Ord 19-07 FIRST READING – August 27, 2019 Page 3 of 3 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on August 27, 2019 and setting such public hearing for September 10, 2019 at the Council Chambers of the Avon Town Hall, located at 100 Mikaela Way, Avon, Colorado. BY: ATTEST: ____________________________ ___________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ADOPTED ON SECOND AND FINAL READING on September 10, 2019. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Paul Wisor, Town Attorney Page 1 of 9 EXHIBIT A: ADDITION OF CHAPTER 1.14 TO TITLE 1 OF THE AVON MUNICIPAL CODE CHAPTER 1.14 CAMPAIGN FINANCE Section 1.14.010 Legislative declaration. Section 1.14.020 Definitions. Section 1.14.030 Candidate affidavit; disclosure statement; failure to file. Section 1.14.040 Registration of committees. Section 1.14.050 Campaign contributions. Section 1.14.060 Disclosure; filing of reports. Section 1.14.070 Reports to be public record. Section 1.14.080 Unexpended campaign contributions. Section 1.14.090 Independent expenditures. Section 1.14.100 Duties of town clerk. Section 1.14.110 Violations and complaints Section 1.14.120 Criminal penalties. Section 1.14.130 Civil penalties. Section 1.14.140 Immunity from penalty Section 1.14.150 Severability. 1.14.010 LEGISLATIVE DECLARATION. The citizens of the Town of Avon hereby find and declare that large campaign contributions to political candidates allow wealthy contributors and special interest groups to exercise a disproportionate level of influence over the political process; that large campaign contributions create the potential for corruption and the appearance of corruption; that the rising costs of campaigning for political office prevent qualified citizens from running for political office; that the interests of the public are best served by full and timely disclosure of campaign contributions, strong enforcement of campaign laws, and limiting campaign contributions; and that the Town is a home rule municipality and this Chapter shall supersede any and all conflicting constitutional provisions, state statutes and rules promulgated thereunder by the Secretary of State and Fair Campaign Practices Act, 1-45-101, et seq., C.R.S., as now enacted or as it may from time to time be amended. 1.14.020 DEFINITIONS. The following words, terms and phrases, when used in this Chapter, shall have the meanings ascribed to them in this Section: (a) Ballot issue, ballot question or issue shall mean any measure put to a vote of the registered electors of the Town by the Town Council at any election held under the provisions of the Town Charter. For purposes of this Chapter, ballot issue, ballot question or issue shall also mean any measure for which recall, initiative or referendum proceedings have been commenced. As used in this Section, commenced shall mean the date upon which the petition is first circulated for signatures. (b) Candidate shall mean any person who seeks nomination or election to the office of Town Council at any Town election. A person is a candidate if the person has publicly announced an intention to seek such election, has accepted a contribution in any amount, or has filed a nominating petition for the office of Town Council. Candidate shall also mean any elected official who is the subject of recall proceedings pursuant to the Charter and this Chapter. Page 2 of 9 (c) Candidate committee shall mean a person, including the candidate, or persons with the common purpose of receiving contributions and making expenditures under the authority of a candidate. A candidate shall have only one (1) candidate committee. A candidate committee shall be considered open and active until the committee has filed a termination report with the Town Clerk. (d) Contribution shall mean: (1) The payment, loan, pledge or advance of money, or guarantee of a loan, made to any candidate committee, issue committee or political committee; (2) Any payment made to a third party for the benefit of any candidate committee, issue committee or political committee; (3) Anything of value given, directly or indirectly, to a candidate committee for the purpose of promoting the candidate's nomination, retention, recall or election; or (4) With regard to a contribution for which the contributor receives compensation or consideration of less than equivalent value to such contribution, including, but not limited to, items of perishable or nonpermanent value, goods, supplies, services or participation in a campaign-related event, an amount equal to the value in excess of such compensation or consideration as determined by the candidate committee, issue committee or political committee. Contribution shall not include services provided without compensation by individuals volunteering their time on behalf of a candidate, candidate committee, political committee or issue committee. (e) Contribution in kind shall mean the fair market value of a gift or loan of any item of real or personal property, other than money, made to or for any candidate committee, issue committee or political committee for the purpose of influencing the passage or defeat of any issue or the nomination, retention, election or defeat of any candidate. Personal services shall be considered a contribution in kind by the person paying compensation therefore. In determining the value to be placed on contributions in kind, a reasonable estimate of fair market value shall be used. Contribution in kind shall not include an endorsement of a candidate or an issue by any person and shall not include the payment of compensation for legal and accounting services rendered to a candidate, candidate committee, political committee or issue committee if the person paying for the services is the regular employer of the individual rendering the services and the services are solely for the purpose of ensuring compliance with the provisions of this Chapter or other county state of federal requirements. (f) Expenditure shall mean the payment, distribution, loan or advance of any money by any candidate committee, political committee or issue committee. Expenditure shall also include the payment, distribution, loan or advance of any money by a person for the benefit of a candidate committee, political committee or issue committee that is made with the prior knowledge and consent of an agent of the committee. An expenditure occurs when the actual payment is made or when there is a contractual agreement and the amount is determined. (g) Independent expenditure shall mean the payment of money by any person for the purpose of advocating the election, defeat or recall of a candidate, which expenditure is not controlled by, or coordinated with, any candidate or any agent of such candidate. (h) Issue committee shall mean: Page 3 of 9 (1) Two (2) or more persons who are elected, appointed or chosen, or have associated themselves, for the purpose of accepting contributions and making expenditures to support or oppose any ballot issue or ballot question; or (2) Any partnership, committee, association, corporation, labor organization or other organization or group of persons that has accepted contributions or made expenditures to support or oppose any ballot issue or ballot question. For purposes of this Paragraph (2), the term expenditure shall not include expenditures made by persons in the regular course and scope of their business or in connection with communications sent solely to their members. The term expenditure also does not include a contribution, as defined in this Chapter. Issue committee shall not include political committees or candidate committees as otherwise defined in this Section. (i) Person shall mean any individual, partnership, committee, association, or other organization or group of persons. Person shall not include corporations, labor unions or political parties. (j) Political committee shall mean two (2) or more persons who are elected, appointed or chosen, or have associated themselves, for the purpose of making contributions to candidate committees, issue committees or other political committees, or for the purpose of making independent expenditures. Political committee shall not include: (1) Issue committees or candidate committees as otherwise defined in this Section; or (2) Any partnership, committee, association, corporation, labor organization or other organization or group of persons previously established for a primary purpose outside of the scope of this Chapter. (k) Termination report shall mean a final report prepared by a candidate committee or issue committee and filed with the Town Clerk that discloses the committee's contributions received, expenditures made and obligations entered into, when the committee no longer intends to receive contributions or make expenditures and a zero balance exists in any account established and maintained by the committee, and the committee has no outstanding debts or obligations. (l) Unexpended campaign contributions shall mean the balance of funds on hand in any candidate committee, issue committee or political committee following an election, less the amount of all unpaid monetary obligations incurred prior to the election. 1.14.030 CANDIDATE AFFIDAVIT; DISCLOSURE STATEMENT; FAILURE TO FILE. a) When any individual becomes a candidate, such individual shall certify, by affidavit filed with the Town Clerk within ten (10) days, that the candidate is familiar with the provisions of this Chapter. (b) Failure of any person to file the affidavit or disclosure statement required under this Section shall result in the disqualification of such person as a candidate for the office being sought. Disqualification shall occur only after the Town Clerk has sent a notice to the person by certified mail, return receipt requested, addressed to the person's last known residence address. The notice shall state that the person will be disqualified as a candidate if the person fails to file the appropriate document within five (5) business days of receipt of the notice. (c) The requirements of this Section shall not apply to any elected official who is the subject of recall proceedings. 1.14.040 REGISTRATION OF COMMITTEES. All candidate committees, political committees and issue committees shall register with the Town Clerk before accepting or making any contributions. Such registrations may be amended as necessary. Registration shall include a statement listing: Page 4 of 9 (a) The committee's full name, spelling out any acronyms used therein; (b) A natural person authorized to act as a registered agent; (c) A street address and telephone number for the principal place of operations; and (d) All affiliated candidates and committees; (e) The purpose or nature of interest of the committee. 1.14.050 CAMPAIGN CONTRIBUTIONS. (a) Limits. No person may make contributions and/or contributions in kind totaling more than one hundred dollars ($100.00) to the candidate committee of any candidate for the office of Town Council. No person shall make a contribution or contribution in kind in the name of another person or knowingly permit one's name to be used by another person to affect such a contribution or contribution in kind. These limitations shall apply to all contributions or contributions in kind, whether made directly to a candidate committee or indirectly via earmarked gifts passed through an intermediary, except that these limitations shall not apply to: (1) Contributions or contributions in kind made by a candidate to his or her own candidate committee; (2) Independent expenditures; or (3) Monetary loans that are: (a) personally guaranteed in writing by the candidate or the candidate's immediate family, or (b) secured by real or personal property owned by the candidate or the candidate's immediate family. (b) Joint contributions. No person shall make a contribution jointly with another person through the issuance of a check drawn on a jointly owned account unless: (i) the total amount of the joint contribution is less than the maximum amount that can be contributed by one (1) person under the contribution limits established in Subsection (a) of this Section or (ii) the check is signed by all owners of the account, in which event the amount of the total contribution shall be allocated equally among all such persons unless a different allocation is specified on the face of the check. No candidate committee, issue committee or political committee shall knowingly accept a contribution made in violation of this Subsection (c). (d) Contributions in excess of limits. No later than ten (10) business days after receiving a contribution in excess of the limits set forth in this Section, the candidate committee that received the contribution shall remit the excess to the contributor. (e) Prohibited contributors. No candidate committee or political committee shall knowingly accept contributions from any person who is not a citizen of the United States, or from a foreign government, corporation, labor union, or political party. (f) Contributions from one (1) candidate committee to another. (1) No candidate committee shall make a contribution or contribution in kind to, or accept a contribution or contribution in kind from, a candidate committee of another candidate. (2) No candidate committee shall accept a contribution or contribution in kind from a candidate committee of the same candidate that was established or maintained for a federal, state or county election campaign or office. Page 5 of 9 (g) Recordkeeping. All contributions received by a candidate committee, issue committee or political committee shall be deposited and maintained in a financial institution in a separate account whose title shall include the name of the committee. All records pertaining to such accounts shall be maintained by the committee for ninety (90) days following any election in which the committee received contributions unless a complaint has been filed under Section 1.14.110 alleging a violation of the provisions of this Chapter, in which case they shall be maintained until final disposition of the complaint and any consequent court proceedings. Such records shall be subject to inspection at any hearing held pursuant to this Chapter. (h) Reimbursements prohibited. No person shall make a contribution to a candidate committee, issue committee or political committee with the expectation that some or all of the amounts of such contribution will be reimbursed by another person. No person shall be reimbursed for a contribution made to any candidate committee, issue committee or political committee, nor shall any person make such reimbursement. An unexpended campaign contribution returned to a contributor by a candidate committee pursuant to Section 1.14.080(a)(4) shall not be considered a reimbursement. 1.14.060 DISCLOSURE; FILING OF REPORTS. (a) All candidate committees, political committees and issue committees shall report to the Town Clerk their contributions and contributions in kind received, including the name, address, occupation and employer of each person who has made contributions or contributions in kind in the amount equal to or greater than twenty dollars ($20.00) or more; expenditures made; and obligations entered into by the committee. (b) For purposes of complying with the requirements of this Section, an issue committee consisting of an organization whose primary purpose is not to support or oppose ballot issues shall report only those contributions accepted, expenditures made and obligations entered into for the purpose of supporting or opposing a ballot issue or ballot question. Such issue committee shall not be required to report donations, membership dues or any other payments received unless such amounts are used or to be used for the purpose of supporting or opposing a ballot issue or ballot question. (c) Reports shall be filed with the Town Clerk on the twenty-first day, fourteenth day, and on the Friday before the election, thirty (30) days after the election, and annually on the first day of the month in which the anniversary of the election occurs until such time as a termination report is filed. If the reporting day falls on a weekend or legal holiday, the report shall be filed by the close of the next business day. (d) The reports required by this Section shall include the balance of funds at the beginning of the reporting period, the total of contributions received, the total of expenditures made during the reporting period and the name and address of the financial institution used by the committee or party. (e) All reports shall be submitted on forms provided by the Town Clerk and shall be complete in all respects. Reports shall be current in all respects as of two (2) days prior to the date upon which each such report is to be filed. (f) A report required to be filed by this Section is timely if the original report is received by the Town Clerk not later than the close of business on the due date or if a copy of the report is filed by fax on or before the date due and the original report is filed not later than the close of business on the next business day. For the purpose of this provision, the original report shall mean a copy containing an original signature of the person completing the report. (g) Any report that is deemed by the Town Clerk to be incomplete or inconsistent with the requirements of this Section shall be accepted on a conditional basis, and the committee treasurer shall be notified in writing as to any deficiencies found. Such notice may be delivered in person, by mail, or by electronic mail. The committee treasurer shall have seven (7) business days from the date of delivery of such notice to file an amended report that cures the deficiencies. Any such amended report shall supersede the original report filed for the reporting period. Page 6 of 9 (h) Any candidate committee, political committee or issue committee which has not accepted any contributions or contributions in kind, made any expenditures, or entered into any obligations during a reporting period, shall file a report with the Town Clerk on the days specified in Subparagraph (c) above certifying that the committee has not accepted any contributions or contributions in kind, made any expenditures or entered into any obligations during the relevant reporting period. 1.14.070 REPORTS TO BE PUBLIC RECORD. (a) Upon receipt of any campaign report submitted pursuant to this Chapter, the Town Clerk shall make available such report for public inspection. The campaign report filed with the Town Clerk fourteen (14) days prior to the election pursuant to Section 1.14.060 above shall be posted by the Town Clerk on the town’s official website in a manner that makes it easily identifiable, which posting shall occur no less than seven (7) days prior to the election. The campaign report filed with the Town Clerk thirty (30) days after the election pursuant to Section 1.14.060 above shall also be posted on the town’s official website by the Town Clerk, which publication shall occur no more than seven (7) days after the Town Clerk's receipt of the report. (b) No information contained in any campaign report submitted pursuant to this Chapter shall be sold or used by any person for the purpose of soliciting contributions or for any commercial purpose. 1.14.080 UNEXPENDED CAMPAIGN CONTRIBUTIONS. (a) Unexpended campaign contributions to a candidate committee may be: (1) Contributed to a political party; (2) Contributed to a candidate committee established by the same candidate for a subsequent campaign for the same office, subject to the limitations set forth in Section 1.14.050(e), if the candidate committee making such a contribution is affirmatively closed by the candidate no later than ten (10) days after the date such a contribution is made; (3) Donated to a charitable organization recognized by the Internal Revenue Service; or (4) Returned to the contributors. In no event shall contributions to a candidate committee be used for personal purposes not reasonably related to supporting the election or retention of the candidate. (b) A candidate committee for a former officeholder or a person not elected to office shall expend all of the unexpended campaign contributions retained by such candidate committee, for the purposes specified in Subsection (a) of this Section, no later than one (1) year from the date such officeholder's term expired or from the date of the election at which such person was a candidate for office, whichever is later. (c) Unexpended contributions to an issue committee or political committee may be donated to any charitable organization recognized by the Internal Revenue Service or returned to the contributor. 1.14.090 INDEPENDENT EXPENDITURES. Any person or political committee making independent expenditures totaling more than one hundred dollars ($100.00) shall deliver notice in writing of such independent expenditures to the Town Clerk no later than three (3) business days after the day that such funds are obligated. Said notice shall include the following information: Page 7 of 9 (a) The name, address, telephone number, occupation and employer of the person making the independent expenditures; (b) The name of the candidate(s) whom the independent expenditures are intended to support or oppose; (c) The name and address of the vendor(s) providing the property, materials or services; (d) A detailed description of the independent expenditures; (e) The amount of the independent expenditures; and (f) The date the funds were obligated. For the purposes of this provision, funds shall be considered to have been obligated as soon as an agreement is reached for the provision of the property, materials or services in question, regardless of when payment is to be made for such property or services. 1.14.100 DUTIES OF TOWN CLERK. The Town Clerk shall: (a) Prepare forms and instructions to assist candidates and the public in complying with the reporting requirements of this Chapter; (b) Develop a filing and indexing system consistent with the purposes of this Chapter; (c) Keep a copy of any report or statement required to be filed by this Chapter for a period of one year from the date of filing. In the case of candidates who were elected, those candidate's reports and filings shall be kept for one (1) year after the candidate leaves office; (d) Make reports and statements filed under this Chapter available for public inspection and copying no later than the end of the next business day after the date of filing; (e) Upon request by the Secretary of State, transmit records and statements filed under this Chapter to the Secretary of State; (f) Notify any person who has failed to fully comply with the provisions of this Chapter; and (g) Report apparent violations of this Chapter to the Town Manager. 1.14.110 VIOLATIONS AND COMPLAINTS (a) Any qualified elector may file a written complaint with the Town Clerk regarding a possible violation of this Chapter. The complaint shall include: (1) The name, address and signature of the complainant; (2) The name and address of each person alleged to have committed a violation; and (3) The details of the violation with citations to the Chapter. (b) If the Town Clerk receives a written complaint pursuant to Subsection (c), below, alleging a violation of this Article, the Town Clerk shall: Page 8 of 9 (1) Provide the person believed to have committed the violation with a copy of the written complaint. (2) Allow ten (10) business days for correction of the violation or submission of written statements explaining the reason that support a conclusion that a violation was not committed. (3) If the Town Clerk receives a written complaint that is not corrected or otherwise remedied as provided in Section 1.14.110(b)(2) herein, the Town Clerk shall refer the matter to the Town Attorney to review whether, under the circumstances and in accordance with this Chapter, a complaint in the Municipal Court should be filed with regard to the alleged violation. (c) Within ten (10) days of receipt of a complaint referred by the Town Clerk, the Town Attorney shall respond within ten (10) indicating whether he or she intends to file a civil or criminal action. If the Town Attorney indicates in the affirmative and files suit within thirty (30) days thereafter, no other action may be brought unless the action brought by the Town Attorney is dismissed without prejudice. (d) In the event any person residing within the Town shall bring a civil action for injunction or to otherwise enforce this Chapter and such person shall prevail in such action, then he or she shall be awarded a reasonable attorney's fee and costs of the action to be paid by the defendant. 1.14.120 CRIMINAL PENALTIES. (a) Any person who knowingly violates any provision of this Chapter is guilty of a misdemeanor and shall be punished by a fine not exceeding three hundred dollars ($300.00) or imprisonment for a period of not more than ninety (90) days or both such fine and imprisonment. (b) Any candidate who knowingly violates any provision of this Chapter shall, in addition to any other penalties provided for herein, be denied his or her right to take oath for the office to which he or she was elected unless he or she has already taken said oath, in which event, the office shall be deemed vacant and shall be filled as otherwise provided by law. 1.14.130 CIVIL PENALTIES. (a) Any person who violates any of the reporting provisions of this Chapter shall be liable in any civil action initiated by the Town Attorney or by a person residing within the Town for an amount not more than the amount or value not properly reported. (b) Notwithstanding the provisions of Subsection 1.14.130(a), any person who makes or receives a contribution or expenditure in violation of this Chapter is liable in a civil action initiated by the Town Attorney or by a person residing within the Town for an amount up to five hundred dollars ($500.00) or three (3) times the amount of the unlawful contribution or expenditure, whichever is greater. (c) In determining the amount of liability under Subsections 1.14.130(a) and (b), the Court may take into account the seriousness of the violation and the culpability of the defendants. If a judgment is entered against a defendant or defendants in an action under the sections noted above, the plaintiffs, other than the Town, shall receive fifty percent (50%) of the amount recovered. The remaining fifty percent (50%) shall be deposited in the treasury of the Town. In an action initiated by the Town Attorney, the entire amount record all be paid into the treasury of the Town. 1.14.140 IMMUNITY FROM PENALTY. (a) Any individual volunteering his or her time on behalf of a candidate or issue committee shall be immune from any liability for a penalty imposed if: Page 9 of 9 (1) The volunteer was acting in good faith and within the scope of such volunteer's functions and duties for the candidate or issue committee; and (2) The violation was not caused by willful and intentional misconduct by such volunteer. 1.14.150 SEVERABILITY. If any provision of this Chapter or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the Chapter which can be given effect without the invalid provision or application, and to this end the provisions of this Chapter are declared to be severable. AVON REGULAR MEETING MINUTES TUESDAY, AUGUST 13, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 1. CALL TO ORDER AND ROLL CALL Mayor Smith Hymes called the meeting to order at 5:16 p.m. A roll call was taken, and Council members present were Amy Phillips, Jennie Fancher, Tamra Underwood, Chico Thuon, and Jake Wolf. Councilor Scott Prince was absent. Also present were Town Manager Eric Heil, Town Attorney Paul Wisor, Police Chief Greg Daly, Town Engineer Justin Hildreth, Transit Director Eva Wilson, Recreation Director John Curutchet, Deputy Town Manager Preston Neill and Town Clerk Brenda Torres. 2. APPROVAL OF AGENDA Mayor Smith Hymes requested the removal of Executive Session item 8.3 from the agenda. Councilor Fancher moved to approve the agenda with the requested change. Mayor Pro Tem Phillips seconded the motion and the motion passed on a vote of 5 to 1. Councilor Wolf voted no. Councilor Prince was absent. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Mayor Pro Tem Phillips, Councilor Fancher and Councilor Thuon explained that they may have a potential conflict of interest related to item 5.2 "Approval of Development Agreement with Colorado World Resorts, LLC." Councilor Underwood made a motion to waive any potential conflict of interest for Mayor Pro Tem Phillips with respect to item 5.2. Councilor Thuon seconded the motion and the motion passed on a vote of 5 to 0. Mayor Pro Tem Phillips did not vote and Councilor Prince was absent. Councilor Underwood made a motion to waive any potential conflict of interest for Councilor Fancher with respect to item 5.2. Councilor Wolf seconded the motion and the motion passed on a vote of 5 to 0. Councilor Fancher did not vote and Councilor Prince was absent. Councilor Underwood made a motion to waive any potential conflict of interest for Councilor Thuon with respect to item 5.2. Councilor Wolf seconded the motion and the motion passed on a vote of 5 to 0. Councilor Thuon did not vote and Councilor Prince was absent. 4. PUBLIC COMMENT No public comments were made. 5. BUSINESS ITEMS 5.1. APPROVAL OF CONDITIONAL BILL OF SALE, AVON LANDING, VILLAGE AT AVON (TOWN ATTORNEY PAUL WISOR AND TOWN ENGINEER JUSTIN HILDRETH) Staff answered several questions posted by various Council members on the Conditional Bill of Sale. Through the discussion, various edits to the Conditional Bill of Sale were suggested by members of Council and staff agreed to apply the edits. Mayor Smith Hymes invited the public to comment on the item but no comments were made. Mayor Pro Tem Phillips moved to continue the Conditional Bill of Sale, Avon Landing, Village at Avon, to the August 27, 2019 Council meeting. Councilor Wolf seconded the motion and the motion carried unanimously by Council members present. Councilor Prince was absent. 5.2. APPROVAL OF DEVELOPMENT AGREEMENT WITH COLORADO WORLD RESORTS, LLC (PLANNING DIRECTOR MATT PIELSTICKER) Various edits to the Development Agreement were suggested by members of Council. Mayor Smith Hymes invited the public to comment on the Development Agreement. Mayor Pro Tem Phillips moved to continue AP moved to continue the Development Agreement with Colorado World Resorts, LLC, to the August 27, 2019 Council meeting. Councilor Fancher seconded the motion and the motion passed unanimously by Council members present. Councilor Prince was absent. AVON REGULAR MEETING MINUTES TUESDAY, AUGUST 13, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO Council then discussed rearranging the agenda by moving directly to item 5.6. Councilor Fancher moved to rearrange the agenda, as discussed. Mayor Pro Tem Phillips seconded the motion and the motion carried on a vote of 6 to 0. Councilor Prince was absent. 5.6. PUBLIC HEARING: APPEAL OF PLANNING AND ZONING COMMISSION’S DECISION DATED JUNE 4, 2019, DENYING A VARIANCE APPLICATION FOR BUILDING IMPROVEMENTS OUTSIDE A PLATTED BUILDING ENVELOPE ON LOT 111C, BLOCK 1, WILDRIDGE (TOWN ATTORNEY PAUL WISOR) Councilor Prince arrived at 6:28 p.m. Town Attorney Paul Wisor outlined the process for this appeal item. Tom Ruemmler and Judy Douglas (appellant) delivered a presentation. Mayor Smith Hymes opened the public hearing and comments were made by Dave Scherpf, Walt Bruschard, Richard Hoch, Dan, Lisa Currey and MaryAnn Scherpf. Mayor Pro Tem Phillips moved to approve Findings of Fact and a Record of Decision denying the application, and she proceeded to read the findings in their entirety. Councilor Underwood seconded the motion and the motion passed unanimousl y. Councilor Wolf moved to continue item 5.5 "Public Hearing: Avon Application to Amend Municipal Code to Permit Community Housing in the Industrial Commercial Zone District by Special Review Use" and item 5.7 "First Reading Ordinance 19-05 Increasing Primary Residence RETT Exemption" to the August 27, 2019 Council meeting. Councilor Underwood seconded the motion and the motion passed unanimously. Jack McBrian commented on the Nottingham Park Landscape Plan and encouraged more community input before implementation. 5.3. RESOLUTION 19-17 ADOPTING THE 2019 COLORADO COMMUNITIES FOR CLIMATE ACTION POLICY STATEMENT (DEPUTY TOWN MANAGER PRESTON NEILL) Councilor Underwood moved to approve Resolution 19-17 Adopting the 2019 Colorado Communities for Climate Action Policy Statement. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously. 5.4. RESOLUTION 19-18 APPOINTING ERIC HEIL AS SECOND ALTERNATE TO THE UPPER EAGLE REGIONAL WATER AUTHORITY (TOWN MANAGER ERIC HEIL) Councilor Wolf moved to move to approve Resolution 19-18 Appointing Town Manager Eric Heil as the Second Alternate to the Upper Eagle Regional Water Authority. Councilor Fancher seconded the motion and the motion passed unanimously. 5.5. PUBLIC HEARING: AVON APPLICATION TO AMEND MUNICIPAL CODE TO PERMIT COMMUNITY HOUSING IN THE INDUSTRIAL COMMERCIAL ZONE DISTRICT BY SPECIAL REVIEW USE (PLANNING DIRECTOR MATT PIELSTICKER) Continued to the August 27, 2019 Council meeting. 5.7. FIRST READING ORDINANCE 19-05 INCREASING PRIMARY RESIDENCE RETT EXEMPTION (TOWN MANAGER ERIC HEIL) Continued to the August 27, 2019 Council meeting. AVON REGULAR MEETING MINUTES TUESDAY, AUGUST 13, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO 5.8. APPROVAL OF MINUTES FROM JULY 9, 2019 REGULAR COUNCIL MEETING (TOWN CLERK BRENDA TORRES) Councilor Underwood moved to approve the minutes from the July 9, 2019 Regular meeting. Mayor Pro Tem Phillips seconded the motion and the motion carried on a vote of 6 to 1. Councilor Wolf voted no. 6. WRITTEN REPORTS 6.1. NOTTINGHAM PARK LANDSCAPE PLAN (PLANNING DIRECTOR MATT PIELSTICKER) 6.2. ABSTRACTS FROM JULY 16, 2019 & AUGUST 6, 2019 PLANNING AND ZONING COMMISSION MEETINGS (PLANNING DIRECTOR MATT PIELSTICKER) 6.3. MONTHLY FINANCIALS REPORT (SENIOR ACCOUNTANT NELLY BURNS) 6.4. OVERVIEW OF THE SALUTE TO THE USA EVENT (CASE MANAGER DANITA DEMPSEY) 6.5. I-70 COALITION UPDATE (MOBILITY DIRECTOR EVA WILSON) 7. MAYOR & COUNCIL COMMENTS & MEETING UPDATES Councilor Wolf encouraged viewers to attend the Avon LIVE! Concert on Wednesday, August 14th. Mayor Smith Hymes encouraged viewers to attend the Colorado Classic road bike race on August 23rd. Mayor Pro Tem Phillips went into detail about the Colorado Classic, including volunteer needs and event impacts. Councilor Prince recapped the Open Water Championship that took place on August 10th and 11th in Nottingham Lake. He requested that it be considered as a formal special event in the future due to its potential to grow and become an economic driver-type event. Councilor Wolf said Circus Bella will be in Nottingham Park this weekend starting on Friday. 8. EXECUTIVE SESSION 8.1. FOR THE PURPOSE OF LEGAL ADVICE WITH TOWN ATTORNEY REGARDING AVON PAVILION REPAIRS PURSUANT TO C.R.S. §24-6-402(4)(B) 8.2. FOR THE PURPOSE OF LEGAL ADVICE WITH TOWN ATTORNEY REGARDING AVON WHITE WATER PARK REPAIRS PURSUANT TO C.R.S. §24-6-402(4)(B) 8.3. FOR DISCUSSION OF A PERSONNEL MATTER UNDER C.R.S. §24-6-402(4)(F) Executive Session item 8.3 was removed from the agenda. Executive Session began at 8:47 p.m. Executive Session ended at 9:39 p.m. 9. ADJOURNMENT There being no further business before Council, Councilor Fancher made a motion to adjourn the Regular meeting. Councilor Wolf seconded the motion and the motion passed unanimously. The time was 9:39 p.m. AVON REGULAR MEETING MINUTES TUESDAY, AUGUST 13, 2019 AVON TOWN HALL, 100 MIKAELA WAY, AVON, CO These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk' s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: Brenda Torres, Town Clerk APPROVED: Sarah Smith Hymes ___________________________________ Amy Phillips Jake Wolf Chico Thuon Jennie Fancher Scott Prince Tamra Underwood TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Preston Neill, Deputy Town Manager Date: August 27, 2019 Agenda Topic: 2020 TOWN OF AVON COMMUNITY GRANT PROGRAM UPDATE OVERVIEW: For purposes of efficiency, this memorandum has been prepared as a written report to notify Council of staff’s recommended approach to the 2020 Town of Avon Community Grant Program. If Council has any questions or desires to discuss any aspect of the 2020 Town of Avon Community Grant Program, please raise this written report for discussion during Tuesday’s Council meeting. SUMMARY: Application materials for the 2020 Town of Avon Community Grant Program were released on July 29, 2019 and can be found at www.avon.org/communitygrants. The application deadline was August 26, 2019 at 5:00 p.m. The Ad Hoc Review Committee will meet during the week of September 9, 2019 to review all submitted applications and make funding recommendations. The Ad Hoc Review Committee, which is appointed by the Town Manager, will be comprised of citizens representing businesses and nonprofits, as well as various members of Town staff. At the Budget Retreat that will be held of October 30, 2019, staff will present the 2020 Community Grant Program Requests and Recommendations Funding Summary that will include recommendations for funding (both cash and in-kind), conditions of funding, if any, and supporting information. In 2016, the Town Council amended the Community Grant Program’s procedures for solicitation, evaluation and funding. One of the refinements was the elimination of applicant presentations before Council. Instead, funding recommendations from an appointed Ad Hoc Review Committee are incorporated into the annual proposed budget and subject to approval during the annual budget process. This year, staff is recommending some additional refinements. Based on the Town’s ongoing partnership with a few local organizations (e.g., Walking Mountains and Vail Valley Mountain Trails Alliance) and based on their programs and the services they provide to the community, staff recommends that these organizations not be required to submit a formal Community Grant Program application. Rather, staff will recommend contribution amounts for these organizations that we feel are commensurate with the work they provide to the Avon community. In addition, there are two organizations that have traditionally submitted an application for community grant funding who staff feels fall under a different category and no longer fit under the umbrella of the Town’s Community Grant Program. They are the EGE Air Alliance and the Vail Valley Partnership. Last year’s Ad Hoc Review Committee collectively recommended that, in the future, contribution requests from these two organizations be treated as “economic driver”-type contribution requests. Staff intends to include contribution amounts for these two entities in a separate program titled, “Economic Development”, along with a few other items. As stated above, staff will recommend contribution amounts for these organizations that we feel are commensurate with the work they provide to the Avon community. Council will have an opportunity to review and provide direction on the recommended contribution amounts at the Budget Retreat in October. In order for the Ad Hoc Review Committee to make recommendations on the applications received, a target funding amount must be set. The purpose of this memorandum is to make Council aware that staff’s recommendation is to set the “not to exceed” amount for community grant funding in FY2020 at $153,000, which is approximately 1% of 2019 General Fund Total Operating Expenditures. A concerted effort has been made over the last three years to dwindle the “not to exceed” amount for community grant funding to equal 1% of the previous budget year’s General Fund Total Operating Expenditures. A funding history chart has been prepared below: OTHER COMMUNITY GRANT PROGRAMS: In late 2016 and in advance of the 2017 Town of Avon Community Grant Program, staff researched the community grant programs of several Colorado municipalities including Aspen, Breckenridge, Estes Park, Telluride and Vail. At that time, the majority of them utilized some sort of ad hoc committee to review submitted applications and make funding recommendations. Annual grant funding was across the board and varied from 1.07% of General Fund Operating Expenditures to 7.19% of General Fund Operating Expenditures (see chart below). 1 PZC Meeting Abstract – August 20, 2019 Planning & Zoning Commission Meeting Abstract Tuesday, August 20, 2019 I. Call to Order – The meeting was called to order at 5:00 pm. II. Roll Call – All Commissioners were present. III. Conflicts of Interest – No conflicts of interest were disclosed. IV. Additions & Amendments to the Agenda – There were no additions or amendment to the agenda. V. VI. Work Session – Village at Avon Development Approval History Summary: Town Manager Eric Heil presented the background and current regulatory landscape for the Village (at Avon) PUD and Subdivision. The purpose of the work session was to familiarize the Commission and Council with the governing documents and role of the different review bodies for different land use proposals. VII. Rezone – CONTINUED PUBLIC HEARING – 420 West Beaver Creek Boulevard File: REZ19001 Applicant: Town of Avon Property: Lot 16 Block 2 Benchmark at Beaver Creek Subdivision Summary: Proposal to change the zoning from Residential – High Density to Park. Action: Commissioner Howell motioned to recommend that the Avon Town Council approve a rezoning to the Park (P) zone district with the following findings: 1. The application is complete; 2. The application provides enough information to determine that the application complies with the relevant review criteria; 3. The application was reviewed in accordance with the general procedures outlined in Code Section 7.16.050; 4. The PZC held a public hearing on August 6, 2019, after providing necessary public notification in accordance with the Code; 5. The review criteria in Code Sections 7.16.050(c) and were reviewed and substantial compliance with the criteria was found; 6. The application complies with the stated purposes of the Development Code; and 7. There exists potential for future housing projects that will achieve the intent of the development code and comprehensive plan. Commissioner Golembiewski second the motion and it carried 4-3 with Commissioners Barnes, Nusbaum, and Dammeyer voting in opposition. VIII. Work Session – Screening Summary: Recent development applications have stretched the screening regulations contained in code and staff suggests a conversation about potential improvement. PZC recommended additional language in the code that mitigates adjacent impacts and better integrates with the landscape or architecture. IX. Consent Agenda 2 PZC Meeting Abstract – August 20, 2019 A – PZC Meeting Minutes – August 6, 2019 B – Record of Decisions: 1. File #AEC19004 and MNR19012, Alternative Equivalent Compliance and Minor Development Plan for Lot 37B Block 4 Wildridge Subdivision / 5024 Wildridge Road East Unit B 2. File #SRU19001, Motion Rent A Car Special Review Use extension to File #SRU15004 Lot 18/19, Block 1, Benchmark at Beaver Creek Subdivision / 281 Metcalf Road, Unit 107 Action: Commissioner Nusbaum motioned to approve the consent agenda. Commissioner Howell seconded the motion and it carried unanimously 6-0 with Commissioner Golembiewski abstaining. X. Staff Approvals A. MNR19020 – Landscape at 2480 Saddle Ridge Loop B. SGN19006 – Temporary Sign at First Bank C. MNR19021 – Addition at 4015 Wildridge Road West XI. Adjourn – The meeting was adjourned at 7:08 pm. WRITTEN REPORT To: Honorable Mayor and Town Council From: Preston Neill, Deputy Town Manager Date: August 27, 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 August 2019, which lists 1) Fourteen (14) VIP Ringside tickets to Circus Bella, and 2) Seven (7) flotation therapy sessions from Dream & Dreams Float Spa. 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. Circus Bella VIP Ringside Tickets – The Town Council received fourteen (14) VIP Ringside tickets to Circus Bella. 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. Each ticket is valued at $48.00. 2. Dream & Dreams Float Spa Flotation Therapy Sessions – The owner of Dream & Dreams Float Spa in Avon has offered each member of the Town Council a free flotation therapy session before August 31, 2019. A flotation therapy session at Dream & Dreams Float Spa is valued at $89.00. Submitted to the Avon Town Council on August 27, 2019. _________________________________ Brenda Torres, Town Clerk FISCAL YEAR 2019 FINANCIAL REPORT August 27, 2019 ______________________________________________________________________________________ 1. Financial Report Cover Memo 2. Sales and Accommodations Tax Reports – June 3. Accommodations Tax Report – June 4. Cigarette and Tobacco Tax – 2nd Quarter 5. Real Estate Transfer Tax Report and Monthly Detail – June 6. Recreation Center Admissions – June 7. Recreation Center Program Fees - June 8. General Fund Year-To-Date Expenditures - June 9. Fleet Maintenance Fund Year-To Date Expenditures - June 10. Mobility Fund Year-To Date Expenditures - June TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Nelly Burns, Senior Accountant Meeting Date: August 27, 2019 Topic: Fiscal Year 2019 Financial Report –June 2019 Revenues SUMMARY Revenues SALES TAX • Sales tax revenue for the month of June totaled $725,840.03, a 4.18% decrease from the previous year and a 4.10% positive variance over the cumulative monthly budgets, which is based on the average of the relative monthly percentages of taxes collected over a 5-year period. • Monthly sales tax collections by industry compared to one year ago have increased $1,861 for Home/Garden, $1,969 for Grocery/Specialty/Health, and $4,426 Miscellaneous Retail, and $6,478 for Other Businesses. Monthly sales tax collections have decreased ($3,675) for Liquor Stores, ($5,557) for Sporting Good Retail/Rental, and ($2,644) for Restaurants and Bars, and ($33,313) for Service businesses. Year-to-date sales tax revenues through June have increased 3.23% over the previous year, which is $135,484.45 over the previous year and $140,468.04 over original budget estimates. 0.00 20000.00 40000.00 60000.00 80000.00 100000.00 120000.00 140000.00 160000.00 Sales Tax Comparison by Industry Jun-18 Jun-19 New and Renewed Business, Contractor & Sales Tax Licenses Issued in June Business License - Fixed Location 16 Business License - Home Occupation 8 Business License - Short Term Accommodation 11 Business License – Special Event 26 Business License - Vendor 59 Contractor License 20 Sales Tax License 55 Grand Total 195 ACCOMMODATIONS TAX • Accommodations tax revenue for month of June totaled $92,411.81, a 2.52% decrease from the previous year and a 13.83% positive variance from the cumulative monthly budgets, which is based on the average of the relative monthly percentages of taxes collected over a 5-year period. • Monthly accommodations tax collections increased $26,800.43 for time shares, decreased $29,495.35 for hotels, and increased $302.95 for vacation rentals compared to June 2018. • Year-to-date accommodation tax revenues through June have increased 9.97% over the previous year, which is $45,028.77 over the previous year and $11,231.29 over original budget estimates. CIGARETTE AND TOBACCO TAX A total of $52,300 has been collected in the 2nd quarter of 2019 for the per pack excise tax and a total of $27,310 for the 40% sales tax on tobacco products, along with $874 in penalties and interest, for a grand total of $80,485. Of this $80,485, roughly $25,600 was collected for April, $27,000 was collected for May, and $28,000 was collected for June. Tobacco penalty steadily decreases as all business have adjusted to reporting deadlines. - 20,000.00 40,000.00 60,000.00 Time Shares Hotels Vacation Rentals Accommodation Tax by Type Jun-18 Jun-19 The number of packs sold in April, May, and June were 5,100, 6,732, and 5,602 respectively. The 2019 budget reflects estimated revenues of $150,000 for the cigarette excise tax and $25,000 for tobacco sales tax. After the 2nd quarter of 2019, we have collected 98.70% of the original total budgeted amount of $175,000. Apr May Jun Tobacco Tax - Per Pack Fee 15,299.25 20,194.95 16,806.45 Tobacco Tax - 40% Rate-VAA 36.31 38.39 32.51 Tobacco Tax - 40% Rate 9,467.01 6,680.08 11,055.81 Tobacco- Penalty 719.24 27.82 Tobacco- Interest 118.57 8.34 - 5,000 10,000 15,000 20,000 25,000 30,000 Cigarette & Tobacco Tax Revenue 2nd Quarter, 2019 5100 6732 5602 0 2000 4000 6000 8000 Apr May Jun Number of Cigarette Packs Sold 2nd Quarter Total 52.7%46.0% 1.3% 2019 Budgeted Revenue Compared to 1st & 2nd Quarter Revenues $80,485 - 2nd Quarter Cigarette and Tobacco Tax Revenues $92,175 - 1st Quarter Cigarette and Tobacco Tax Revenues REAL ESTATE TRANSFER TAX • Real estate transfer tax collections for the month of June totaled $237,143.93, a decrease of 30.89% from the previous year and a negative variance of 25.57% over the cumulative monthly budgets, which is based on average of the relative monthly percentages of taxes collected over a 5-year period. Real Estate Transfer Tax (RETT) Transactions June RETT Transactions which paid 2% tax 8 RETT Exemptions for Primary Residence 4 RETT Exemptions for Full Exemption 11 Grand Total 23 RECREATION CENTER ADMISSIONS • June admission fees totaled $68,601.20 a 10.41% increase from the previous year. This is a 10.90% positive variance compared to the monthly budget, which is based on average of the relative monthly percentages of taxes collected over a 5-year period. The recreation center just completed a remodel of the weight room and admission revenues are already showing an increase due to these upgrades. RECREATION CENTER PROGRAM FEES • June program fees totaled $43,607.82 which is a 12.73% decrease from the previous year. This is a 23.34% negative variance compared to the monthly budget, which is based on average of the relative monthly percentages of taxes collected over a 5-year period. $- $20,000 $40,000 $60,000 $80,000 $100,000 2015 2016 2017 2018 2019 Recreation Center Admissions -July $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2015 2016 2017 2018 2019 Recreation Center Program Fees -July Expenditures • General Fund expenditures through June 2019 total 46.10% of the total budget. These expenditures include insurance premiums, computer services, events, community grants, equipment replacement, contract services, janitorial and legal services. • Fleet expenditures through June 2019 total 52.55% of the total budget. These costs include expenditures of stock parts, fleet maintenance, debt service interest, and insurance premiums. • Mobility funds are June 2019 total 36.45% of the total budget. These expenditures include costs of diesel, fleet maintenance, equipment replacement, capital lease payments, and insurance premiums. TOWN OF AVON SALES TAX 2019 Actual vs. Budget Budget YTD Collections Budget % of change % change 2014 2015 2016 2017 2018 2019 2019 Variance from 2018 from Budget January 638,863.27$ 765,195.68$ 743,689.78$ 792,562.03$ 825,816.08$ 817,828.62 819,179.33$ 1,350.71$ -0.80%0.17% February 673,722.03 788,999.06 774,754.00 798,923.33 785,412.03 829,920.52 809,165.90 (20,754.62) 3.02%-2.50% March 793,301.96 875,499.53 945,795.71 918,657.55 1,014,399.70 987,540.28 1,130,669.61 143,129.33 11.46%14.49% April 381,839.56 403,560.42 438,198.18 425,727.85 394,986.15 443,930.08 424,685.32 (19,244.76) 7.52%-4.34% May 340,332.28 353,840.11 404,872.55 394,689.30 418,628.58 415,276.78 422,685.32 7,408.54 0.97%1.78% June 538,517.31 570,424.51 693,675.00 650,794.65 757,498.52 697,261.19 725,840.03 28,578.84 -4.18%4.10% July 570,959.86 601,516.82 690,342.23 682,024.81 696,374.00 703,842.63 - August 547,085.80 572,647.57 593,398.26 618,515.44 639,569.12 645,210.78 - September 546,016.59 595,235.68 667,949.51 690,883.92 680,720.64 690,724.07 - October 417,921.46 423,701.53 451,303.71 458,645.68 490,977.90 486,978.23 - November 397,935.36 438,315.55 445,336.04 435,975.05 456,409.92 472,086.18 - December 1,221,263.98 1,159,160.45 1,247,832.82 1,183,666.21 1,264,626.23 1,319,545.64 - Total 7,067,759.46$ 7,548,096.91$ 8,097,147.79$ 8,051,065.82$ 8,425,418.87$ 8,510,145$ 4,332,225.51$ 140,468.04$ 3.23%3.35% Actual Collections $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2015 2016 2017 2018 2019 Year Sales Tax Collections for June TOWN OF AVON ACCOMMODATIONS TAX 2019 Actual vs. Budget Budget YTD Collections Budget % change % change 2014 2015 2016 2017 2018 2019 2019 Variance 2018 to budget January 129,851.78$ 164,361.04$ 168,424.63$ 190,207.82$ 181,588.99$ 188,298$ 197,879.22$ 9,581.20$ 8.97%5.09% February 150,317.06 175,056.31 185,370.53 194,804.88 186,147.24 201,220 203,190.38 1,970.70 9.16%0.98% March 168,597.39 183,650.29 217,387.54 201,008.55 206,783.36 220,566 246,969.61 26,403.89 19.43%11.97% April 31,626.02 34,825.13 60,916.55 38,340.02 33,275.27 44,902 31,824.90 (13,077.50) -4.36%-29.12% May 21,961.97 28,002.56 37,357.48 39,961.98 42,618.10 38,340 47,259.21 8,919.19 10.89%23.26% June 54,232.23 53,397.46 73,591.08 83,723.31 94,803.78 81,181 92,411.81 11,231.29 -2.52%13.83% July 81,083.01 86,301.22 107,595.18 119,300.76 119,458.02 115,930 - August 71,044.33 75,107.71 87,674.05 100,628.23 98,193.15 97,631 - September 50,840.16 60,417.74 68,139.11 81,837.60 85,257.82 78,189 - October 34,977.59 38,706.72 45,738.23 48,223.10 53,236.86 49,844 - November 32,064.02 34,328.47 37,570.50 46,397.08 47,934.88 44,747 - December 168,944.85 198,421.26 200,114.56 189,505.28 185,008.67 212,570 - Total 995,540.41$ 1,132,575.91$ 1,289,879.44$ 1,333,938.61$ 1,334,306.14$ 1,373,418.00$ 819,535.13$ 45,028.77$ 9.97%5.81% 0.88 0.88 0.97 1.00 0.97 Actual Collections $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 2015 2016 2017 2018 2019 Accommodations Tax Collections for June Town of Avon Real Estate Transfer Tax 2019 Actual vs. Budget Budget YTD Collections $ Change % of Change % change 2013 2015 2016 2017 2018 2019 2019 2018 2018 to budget 22,535.00$ 48,640.40$ 64,422.00$ 107,390.00$ 264,063.20$ 92,927.86$ 72,520.00$ (191,543.20)$ -72.54%-21.96% 55,872.69 85,479.08 200,850.86 270,815.26 269,578.51 161,754.65 298,730.16 29,151.65 10.81%84.68% 125,927.64 168,744.22 265,061.65 254,737.53 344,556.74 212,416.61 180,819.76 (163,736.98) -47.52%-14.87% 144,437.80 125,266.30 159,046.06 249,938.93 122,312.21 146,800.60 312,899.53 190,587.32 155.82%113.15% 121,784.12 237,971.08 184,987.10 377,490.82 351,236.93 233,390.60 278,241.63 (72,995.30) -20.78%19.22% 90,309.74 294,434.84 307,127.24 703,419.85 343,140.71 318,604.88 237,143.93 (105,996.78) -30.89%-25.57% 386,434.78 396,838.68 259,977.94 219,208.74 272,420.41 281,299.66 97,579.70 152,380.93 186,483.40 592,467.49 343,249.80 251,477.88 157,010.67 291,223.61 321,957.68 423,013.80 311,022.50 275,681.97 169,839.80 172,855.22 641,688.59 497,642.58 330,671.24 332,215.54 112,491.82 169,328.38 315,109.37 425,402.80 211,818.76 226,184.57 83,382.60 225,862.90 588,514.66 227,918.50 196,105.45 242,245.18 1,567,606.36$ 2,369,025.64$ 3,495,226.55$ 4,349,446.30$ 3,360,176.46$ 2,775,000$ 1,380,355.01$ (314,533.29)$ -18.56%18.39% Budget 2,775,000.00 Variance, Favorable (Unfavorable)(1,394,644.99)$ Actual Collections $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 2015 2016 2017 2018 2019 Year Real Estate Transfer Tax for June TOWN OF AVON RECREATION CENTER ADMISSION FEES 2019 Actual vs. Budget Budget YTD Collections Budget % of change % change 2014 2015 2016 2017 2018 2019 2019 Variance from 2018 from Budget January 70,039.90$ 62,607.00$ 64,723.00$ 74,674.00$ 88,582.09$ 79,714.43$ 72,981.40$ (6,733.03)$ -17.61%-8.45% February 68,578.10 63,838.00 68,506.00 86,342.00 75,952.60 80,287.10 64,868.20 (15,418.90) -14.59%-19.20% March 72,616.10 77,902.00 81,664.00 76,023.00 79,071.20 85,605.34 78,824.90 (6,780.44) -0.31%-7.92% April 64,370.00 61,760.00 55,452.00 67,398.00 61,817.56 68,700.13 53,085.20 (15,614.93) -14.13%-22.73% May 35,063.70 43,119.00 50,067.40 54,337.00 50,252.60 51,467.96 63,563.00 12,095.04 26.49%23.50% June 46,194.30 55,052.00 58,430.50 58,044.00 62,135.02 61,860.62 68,601.20 6,740.58 10.41%10.90% July 71,491.30 61,472.00 66,399.80 65,873.60 72,441.40 74,641.93 August 57,328.80 63,233.00 66,388.60 76,558.30 73,573.10 74,510.12 September 43,829.00 36,846.00 44,719.00 49,017.70 49,315.70 49,453.74 October 48,803.00 75,818.00 61,167.00 51,833.00 59,692.77 65,719.61 November 93,822.00 29,570.00 71,384.00 72,114.00 126,981.80 87,063.24 December 69,258.00 77,672.00 112,201.00 169,092.78 186,927.10 186,927.10 Total 741,394.20$ 708,889.00$ 801,102.30$ 901,307.38$ 986,742.94$ 965,951$ 401,923.90$ (25,711.68)$ -3.80%-6.01% Actual Collections $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 2015 2016 2017 2018 2019 Recreation Center Admissions -June TOWN OF AVON RECREATION CENTER PROGRAM FEES 2019 Actual vs. Budget Budget YTD Collections Budget % of change % change 2014 2015 2016 2017 2018 2019 2019 Variance from 2018 from Budget January 19,367.43$ 23,252.13$ 17,133.04$ 28,815.64$ 32,368.50$ 31,321.54$ 26,095.68$ (5,225.86)$ -19.38%-16.68% February 26,144.75 20,734.70 22,435.59 28,915.58 35,279.57 34,577.95 23,197.74 (11,380.21) -34.25%-32.91% March 19,727.40 15,184.33 19,132.72 29,016.16 28,669.46 28,937.09 27,280.96 (1,656.13) -4.84%-5.72% April 29,969.50 18,360.00 18,538.66 26,397.13 45,827.30 36,023.74 31,132.63 (4,891.11) -32.07%-13.58% May 31,395.87 22,175.69 39,447.85 44,605.22 37,300.42 45,304.03 31,335.76 (13,968.27) -15.99%-30.83% June 41,698.34 31,443.66 33,369.05 45,885.37 37,231.17 49,111.86 34,568.93 (14,542.93) -7.15%-29.61% July 48,801.54 29,162.29 44,969.88 46,745.40 49,968.33 56,886.73 August 41,195.29 31,055.94 46,025.52 52,318.40 64,320.46 60,841.05 September 15,886.00 18,209.25 36,240.11 30,853.05 41,463.74 36,945.64 October 19,819.50 20,380.77 22,068.60 26,881.06 26,782.63 30,025.50 November 9,991.00 20,095.40 30,866.78 25,906.72 24,952.65 28,958.46 December 16,653.80 21,918.03 30,294.89 37,309.30 26,328.09 34,317.39 Total 320,650$ 271,972$ 360,523$ 423,649$ 450,492$ 473,251$ 173,611.70$ (51,664.53)$ -19.88%-22.93% Actual Collections $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 2015 2016 2017 2018 2019 Recreation Center Program Fees -June Dept./Div.2019 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget General Government: 111 Mayor and Town Council 262,117$ 1,269$ 160,270$ 100,577$ 61.63% 112 Boards and Commissions 16,049 - 5,650 10,399 35.21% 113 Town Attorney 155,000 2,568 54,869 97,563 37.06% 115 Town Clerk 124,800 6,879 38,868 79,053 36.66% 121 Municipal Court 155,008 6,958 57,152 90,898 41.36% 131 Town Manager 387,995 15 114,742 273,238 29.58% 133 Community Relations 203,182 19,182 80,234 103,766 48.93% Total General Government 1,304,151 36,871 511,785 755,494 42.07% Human Resources Department: 132 Human Resources 541,184 14,872 217,283 309,029 42.90% Finance & IT Department: 141 Finance 997,181 55,387 466,482 475,312 52.33% 143 Information Systems 431,091 46,079 218,140 166,872 61.29% 149 Nondepartmental 584,917 67,500 436,883 80,534 86.23% Total Finance & IT 2,013,189 168,966 1,121,505 722,718 64.10% Total General Gov't Departments 3,858,524 220,709 1,850,574 1,787,242 53.68% Community Development: 212 Planning 343,353 22,040 131,286 190,028 44.66% 213 Building Inspection 163,739 2,100 93,864 67,775 58.61% 215 Town Produced Events 218,019 20,272 107,744 90,003 58.72% 216 Signature Event Seed Funding 500,000 8,867 148,324 342,809 31.44% 217 Community Grants 201,000 - 142,042 58,958 70.67% 218 Salute to the USA 110,715 54,381 57,701 (1,367) 101.23% Total Community Development 1,536,826 107,659 680,961 748,206 51.31% Police Department: 311 Administration 844,539 25,121 440,473 378,946 55.13% 312 Patrol 2,828,206 81,529 1,262,789 1,483,888 47.53% 313 Investigations 315,990 1,296 148,311 166,383 47.35% Total Police 3,988,735 107,946 1,851,572 2,029,217 49.13% Public Works: 412 Engineering 275,025 2,304 120,038 152,683 44.48% 413 Roads and Bridges 2,327,449 184,702 1,140,735 1,002,012 56.95% 415 Parks 630,423 60,445 211,242 358,736 43.10% 418 Buildings & Facilities 1,252,258 56,666 635,663 559,929 55.29% Total Public Works 4,485,155 304,117 2,107,679 2,073,359 53.77% Recreation Department: 514 Administration 244,297 12,989 122,491 108,818 55.46% 515 Adult Programs 62,701 750 26,117 35,834 42.85% 516 Aquatics 660,004 13,765 341,317 304,922 53.80% 518 Fitness 136,807 - 100,024 36,783 73.11% 519 Guest Services 336,180 521 164,622 171,037 49.12% 521 Youth Programs 161,580 2,234 64,886 94,460 41.54% 523 Community Swim Program 91,624 - 38,825 52,799 42.37% Total Recreation 1,693,193 30,259 858,282 804,652 52.48% Contingency 45,000 100,000 Operating Transfers 1,870,000 (63,223) 1,870,000 1,870,000 TOTAL OPERATING EXPENDITURES 17,477,433$ 770,689$ 7,285,845$ 9,412,676$ 46.10% Department Expenditure Summaries General Fund June 2019 Expenditures to Date Dept./Div. 2019 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES Public Works: 434 Fleet Maintenance 1,801,273$ 56,735$ 889,908$ 854,629$ 52.55% Total Operating Expenditures 1,801,273 56,735 889,908 854,629 52.55% TOTAL EXPENDITURES 1,801,273$ 56,735$ 889,908$ 854,629$ 52.55% Expenditure Summary Fleet Maintenance Enterprise Fund June 2019 Expenditures to Date Dept./Div.2019 Encumbrances Year To Date Available Number Description Budget Outstanding Expenditures Balance YTD/Budget EXPENDITURES 431 Transit Administration 286,200$ 18,972$ 139,020$ 128,207$ 55.20% 432 Transit Operations 2,087,011 2,015 744,596 1,340,400 35.77% 436 Wash Bay 169,093 8,646 84,477 75,970 55.07% 437 Programs 373,720 - 65,137 308,583 17.43% Total Operating Expenditures 2,916,024 29,633 1,033,231 1,853,160 36.45% TOTAL EXPENDITURES 2,916,024$ 29,633$ 1,033,231$ 1,853,160$ 36.45% Expenditure Summary Mobility Enterprise Fund June 2019 Expenditures to Date