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TC Packet 07-13-2021_______________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AVON ELEMENTARY AND 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. AVON TOWN COUNCIL MEETING AGENDA TUESDAY, July 13, 2021 MEETING BEGINS AT 5:10 PM (ALL START TIMES LISTED IN RED ARE APPROXIMATE) Hybrid meeting; in-person at Avon Town Hall or virtually through Zoom AVON LIQUOR LICENSING AUTHORITY MEETING BEGINS AT 5:00 PM (See Agenda on page 3) AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:10 PM 1. CALL TO ORDER AND ROLL CALL 5:10 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 Public comments are limited to three (3) minutes. The speaker may request an additional one (1) minute, which may be approved by a majority of Council. 5. BUSINESS ITEMS 5.1. Discussion of Eagle District Court Ruling on Recall Petitions (Town Attorney Paul Wisor) (30 Minutes) 5:15 5.2. Presentation: CIP Project Update (Town Engineer Justin Hildreth) (20 Minutes) 5:45 5.3. Work Session: East Harry A. Nottingham Park Improvements (Planning Director Matt Pielsticker & Pedro Campos, Zehren & Associates) (45 Minutes) 6:05 5.4. Public Hearing: Second Reading Ordinance 21-05 Concerning the Management of Plastic Products (Town Attorney Paul Wisor) (10 Minutes) 6:50 5.5. Public Hearing: Second Reading of Ordinance 21-09 Approving Code Text Amendments to Chapter 7 of the Avon Municipal Code (Planning Director Matt Pielsticker) (15 Minutes) 7:00 5.6. Resolution 21-16 supporting the America the Beautiful Initiative (General Government Manager Ineke de Jong) (10 Minutes) 7:15 5.7. Receipt of 2020 Annual Financial Report (Finance Director Scott Wright & McMahan & Associates Auditor Paul Backus) (15 Minutes) 7:25 5.8. Presentation: Use Tax (Town Manager Eric Heil and Assistant Town Manager and Finance Director Scott Wright) (30 Minutes) 7:40 6. MINUTES 6.1. Approval of June 22, 2021 Regular Council Meeting Minutes (Town Clerk Brenda Torres) (5 Minutes) 8:10 6.2. Approval of June 24, 2021 Special Council Meeting Minutes (General Government Manager Ineke de Jong) (5 Minutes) 8:15 7. WRITTEN REPORTS 7.1. Quarterly Update on 2021 department goals (Town Manager Eric Heil) 7.2. Musical Instruments Update (Public Works Director Gary Padilla) _______________________________________________________________________________ MEETING AGENDAS AND PACKETS ARE FOUND AT: WWW.AVON.ORG AGENDAS ARE POSTED AT AVON TOWN HALL, AVON RECREATION CENTER, AVON ELEMENTARY AND 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. 7.3. Rec Center Parking Status Update (Interim Recreation Director Michael Labagh, Chief of Police Greg Daly and Mobility Director Eva Wilson) 7.4. June 29, 2021 Planning and Zoning Commission Meeting Abstract (Planner David McWilliams) 7.5. Upper Eagle Regional Water Authority June 24, 2021 Meeting Summary (Mayor Smith Hymes) 7.6. Town Manager Report (Town Manager Eric Heil) ** Indicates topic will be discussed at future agenda’s 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES) 8:20 9. ADJOURN 8:35 Public Comments: Council agendas shall include a general item labeled “Public Comment” near the beginning of all Council meetings. Members of the public who wish to provide comments to Council greater than three minutes are encouraged to schedule time in advance on the agenda and to provide written comments and other appropriate materials to the Council in advance of the Council meeting. The Mayor shall permit public comments for any action item or work session item and may permit public comment for any other agenda item, and may limit such public comment to three minutes per individual, which limitation may be waived or increased by a majority of the quorum present. Article VI. Public Comments, Avon Town Council Simplified Rules of Order, Adopted by Resolution No. 17-05. FUTURE AGENDAS AUGUST 10 o Work Session: Discussion of Council Conduct and Speech o First Reading of Ordinance 21-10 Enacting Chapter 2.05 of the Avon Municipal Code – Removal of Council Members o Presentation: Consideration to support the CC4CA Policy Statement Updates o Resolution 21-XX PEG Grant Fund Request 2020 o Public Hearing: Second Reading of Ordinance 21-10 Enacting Chapter 2.05 of the Avon Municipal Code – Removal of Council Members o Incentives for E-Bike Purchases o Resolution 21-XX for a Use tax ballot question o Ordinance 21-XX: Department Reorganization o Recycling Update (Nina Waysdorf) AVON LIQUOR LICENSING AUTHORITY MEETING AGENDA TUESDAY, JULY 13, 2021 MEETING BEGINS AT 5:00 PM (ALL START TIMES LISTED IN RED ARE APPROXIMATE) Hybrid meeting; in-person at Avon Town Hall or virtually through Zoom 1. CALL TO ORDER AND ROLL CALL 5:00 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. PUBLIC HEARING FOR A NEW H&R LIQUOR LICENSE APPLICATION 5:00 5.1. APPLICANT NAME: MEZZO LLC D/B/A FATTORIA LOCATION: 48 E BEAVER CREEK BLVD. UNITS 105, 106, 107 AND 108 TYPE: HOTEL AND RESTAURANT (CITY) OWNERS: NOAH BENDER, JAMES PAVELICH AND STEPHEN SHELMAN MANAGER: STEPHEN SHELMAN 6. PUBLIC HEARING FOR SPECIAL EVENTS LIQUOR PERMITS 5:05 6.1. APPLICANT NAME: CIRCUS MENTORS INC. EVENT: FLYNN CREEK CIRCUS DATES AND TIMES: AUG. 13, 2021 3:00–9:00PM, AUG. 14, 2021 12:00–9:00PM, & AUG. 15, 2021 12:00–6:00PM LOCATION: NOTTINGHAM PARK 1 LAKE ST. TYPE: SPECIAL EVENT PERMIT MANAGER: GINA HALLISEY 6.2. APPLICANT NAME: WALKING MOUNTAINS SCIENCE CENTER EVENT: A TASTE OF NATURE DATE AND TIME: AUG. 5, 2021 5:00-11:00PM LOCATION: 318 WALKING MOUNTAINS LANE TYPE: SPECIAL EVENT PERMIT MANAGER: KATHERINE BRENNAND 7. MINUTES 5:10 7.1 APPROVAL OF THE MINUTES FROM JUNE 22, 2021 LIQUOR LICENSING AUTHORITY MEETING (LIQUOR LICENSING AUTHORITY SECRETARY BRENDA TORRES) 8. WRITTEN REPORT 8.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS (LIQUOR LICENSING AUTHORITY SECRETARY BRENDA TORRES) 9. ADJOURNMENT 5:10 (970) 748-4001 btorres@avon.org TO: Avon Liquor Licensing Authority FROM: Brenda Torres, Liquor Licensing Authority Secretary RE: PUBLIC HEARING for New Hotel & Restaurant (City) Liquor License for Mezzo, LLC d/b/a Fattoria DATE: June 11, 2021 SUMMARY: Mezzo LLC d/b/a Fattoria, as the Applicant, is applying for a new Liquor License. The Applicant has submitted the appropriate materials required by the State of Colorado Liquor Enforcement Division and all materials are in order. These documents are on file in the Town Clerk’s office. ACTION BEFORE THE LOCAL LIQUOR LICENSING AUTHORITY: Public Hearing will be hosted both in a virtual format, using Zoom.us at Avon.org, and in person at Avon Town Hall – 100 Mikaela Way, Avon, Colorado. Town Council acting as the Local Liquor Licensing Authority is asked to consider the liquor license application for the following new Hotel & Restaurant (City) Liquor License: Applicant: Mezzo, LLC d/b/a Fattoria Location: 48 East Beaver Creek Boulevard, Units #105, 106, 107 & 108 Type: Hotel & Restaurant (City) Liquor License Owners: Noah Bender, James Pavelich & Stephen Shelman Manager: Stephen Shelman Action: Resolution No. 21-02 BACKGROUND: Attached is the “Report of Findings” for this application, which was submitted by the applicant on May 19, 2021. The Town Clerk and Town Special Counsel have reviewed the application for complete information and public notice was posted on the premises, Town website, and published in the Vail Daily as documented in the report of findings. The report of findings presented in this packet has been updated as this item was continued from the June 22nd meeting and public notices were reposted on June 30th. A background investigation has been completed by the Avon Police Department and Colorado Bureau of Investigations. Report is on file with the Clerk and a copy will be provided separately to the Liquor Authority Board. These premises were previously licensed. However, this license expired on December 12, 2020, making this property eligible for re-licensing. FINDINGS: The information in the report addresses how the applicant has met the criteria outlined in Section 5.08 Liquor Licenses of the Avon Municipal Code and the State Liquor and Beer Code. The report indicates that the applicant has the burden of proving he is qualified to hold the license. The applicant also has the burden of proving that the reasonable requirements of the neighborhood and the desires of the community require the granting of the license. A petition survey has been submitted; this information will assist in the determination of the “desires & needs of the neighborhood”. It is noted that the petition, with 51 signatures, shows 100% favor for this type of license in this neighborhood. The applicant has submitted a diagram of the premises. The owner has been notified and will attend the meeting. The application fees for the liquor licensing have been submitted for both the Town and State of Colorado. If the Authority decides to approve the application, a resolution is attached, which if adopted takes this action. Page 2 btorres@avon.org A motion granting the application is proposed below. If the Authority is considering denial for grounds, the matter should be set for additional hearing at which time those grounds may be answered by the applicant. PROPOSED MOTION: “I move to approve (or deny based upon statutory grounds for denial) Liquor Licensing Authority Resolution 21-02 Approving the application of Mezzo, LLC d/b/a Fattoria for a New Hotel and Restaurant (City) Liquor License.” Thank you, Brenda NEW LIQUOR LICENSE APPLICATION ATTACHMENTS: The Applicant for the new liquor license has submitted the following materials: •Attachment A: Colorado Liquor Retail License Application (State form DR 8404) •Attachment B: Diagram of Premises •Attachment C: Report of Findings, updated as this item was continued from June 22, 2021 •Attachment D: Resolution No. 21-02, Approving the Application of Mezzo, LLC d/b/a Fattoria for a New Hotel and Restaurant (City) Liquor License The following documents as part of the application submittal are on file at the Town Clerk’s office: •Lease Agreement •Articles of Organization •Certificate of Good Standing •Individual History Record & Background check reports from Avon Police Department & CBI •Petition to Avon Liquor Licensing Authority ADDENDUM TO MEMO FOR NEW LIQUOR LICENSE APPLICATIONS: Background on the Role of Liquor Licensing Authority in Consideration of New Licenses: 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 new local liquor license. The State Licensing Authority cannot grant or issue any "new license" until the Authority has first approved the application by conducting a hearing for such license. If the Authority denies the application, the Executive Director of the State of Colorado cannot override its decision. If the Authority approves a license, the State Licensing Authority cannot refuse to issue the license except upon hearing with a 15-day notice to the applicant and the Authority. Once the state license is received by the Town Clerk's Office and the Certificate of Occupancy has been received from the Building Department, the Town and State licenses can be issued. The Town Clerk, Town Attorney and Police Department handle the review of the liquor license applications administratively. A “Report of Findings” is completed by the Town Clerk & provided the applicants five days prior to the hearing. The Authority members are provided the application materials when it appears on the Liquor Board Agenda. A public hearing is conducted for all new applications. The Local Authority’s decision is usually given at the conclusion of the hearing although it may be delayed. The decision must be given in writing within 30 days after the date of the hearing and may follow in the form of a resolution. The motion to approve or disapprove should be explicit stating the exact reasons for denial or approval. A motion to deny a license must be based on evidence presented at the hearing. Page 3 btorres@avon.org 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 & evidence resulting from the investigation & any facts brought to the attention of the Authority. ▪The reasonable requirements of the neighborhood ▪The desires of the inhabitants of the neighborhood. ▪The number, type and availability of liquor outlets located in or near the neighborhood under consideration. ▪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. ATTACHMENT A ATTACHMENT B LOCAL LIQUOR LICENSING AUTHORITY TOWN OF AVON, COLORADO Report of Findings Fattoria UPDATED 07-01-2021Town of Avon Page 1 of 2 RE THE APPLICATION OF ) MEZZO, LLC D/B/A FATTORIA ) REPORT OF FINDINGS 48 E BEAVER CREEK BLVD SUITES 105, 106, 107 AND 108 ) AVON, COLORADO ) FOR A NEW HOTEL & RESTAURANT (CITY) LIQUOR LICENSE ) TO: THE APPLICANT ABOVE AND OTHER INTERESTED PARTIES SUBMITTED BY: BRENDA TORRES, TOWN CLERK, TOWN OF AVON DATE: JUNE 11, 2021 UPDATED: JULY 1, 2021 PURSUANT to the Statutes of the State of Colorado, the Ordinances of the Town of Avon, and the Rules and Procedures of the Local Licensing Authority, the applicants are hereby advised that with regard to the application for a Hotel & Restaurant Liquor License filed with the Town Clerk’s Office on May 19, 2021, an investigation has been made, and the Report of Findings is as follows: 1.The location of the new establishment, Mezzo LLC d/b/a Fattoria is 48 E Beaver Creek Blvd Suites 105, 106, 107 and 108, Avon, Colorado. 2.From evidence submitted, the applicant is entitled to possession of the premises as documented by a “Lease Agreement” with a commencement date of May 1, 2021 and executed between the applicant and The Ark LLC. The applicant has submitted a diagram of the premises showing the floor plan of the building. The premise is approximately 3,600 square feet in size. 3.The operation of a business and sale of liquor in this the proposed location is in an area permitted under the applicable zoning laws of the Town of Avon. The applicant is not required to obtain a license until the business is established. Noah Bend er, however, has been well established with the Town for his other business Southside Benderz. Their sales tax and business licenses are paid and renewed in a timel y manner every month. 4.The proposed building in which the liquor is to be sold is not located within 500' of any public or parochial school or the principal campus of any college, university or seminary. 5.The appropriate documents, i.e. individual history rec ords & fingerprints, required to conduct the background investigation were submitted to the Colorado Bureau of Investigation (“CBI”) and Avon Police Department. The results will be provided to the Liquor Authority Board. The final background reports from CBI have been received. See below for name of owners: ATTACHMENT C LOCAL LIQUOR LICENSING AUTHORITY TOWN OF AVON, COLORADO Report of Findings Fattoria UPDATED 07-01-2021Town of Avon Page 2 of 2 Title Name Address Telephone Owner Owner Owner/Manager Noah Bender James Pavelich Stephen Shelman PO Box 99 Vail, CO 81658 PO Box 99 Vail, CO 81658 PO Box 99 Vail, CO 81658 (603) 545-8375 (603) 545-8375 (603) 545-8375 6. The applicant has submitted the appropriate application fe es to the Town Clerk for costs associated with a new Concurrent Review application. If the H&R License is approved by Avon’s Local Liquor Authority, the appropriate executed paperwork will be forwarded to the L iquor Enforcement Division for its approval and issuance of the State license. Upon receipt of the State License, the Town Clerk will issue the town license to the owners. 7. The public hearing on this application was originally set for June 22, 2021. This public hearing was continued, to be held by a Hybrid meeting, virtually via Zoom.us and in person on Avon Town Hall, 100 Mikaela Way, on July 13, 2021, at 5:00 p.m. Public Notice was given regarding said application and scheduled hearing date, and was published in the Vail Daily on June 30, 2021 and posted on premises of the proposed location at least ten days prior to the hearing. At said hearing, the applicant shall have an opportunity to be heard regarding all matters related to the application, including all matters set forth herein. The applicant has agreed to be present at the virtual hearing. 8. The “neighborhood” has been established by the Avon Liquor Licensing Authority with the adoption of Resolution No. 04-04 on November 23, 2004, defining it as “the neighborhood to be served by any applicant for liquor license of any kind shall be the Town of Avon, including residents of the Town, persons working in the Town and visitors to the Town”. 9. At the public hearing, the applicant has the burden of proving that he is qualified to hold the license applied for, and that his character, record and reputation are satisfactory. The applicant also has the burden of providing prima facie evidence of neighborhood need for the license requested, which he may do with presentation of petitions, remonstrances, or otherwise. The applicant filed the petition that shows unanimous support for this “Hotel and Restaurant Liquor License” in this location with a total of 51 signatures. 10. The applicant is advised to obtain and read a copy of the State of Colorado Liquor and Beer Codes and Regulations and the Town Code Section on Liquor Licenses (Title 5, Cha pter 5.08). These regulations can be found on the foll owing websites: https://www.colorado.gov/pacific/enforcement/liquor https://library.municode.com/co/avon/codes/home_rule_charter_and_code?nodeId=CD_TIT5BUT ALIRE_CH5.08LILI Updated report e-mailed on July 1, 2021. LIQUOR LICENSING AUTHORITY TOWN OF AVON RESOLUTION 21-02 A Resolution Approving the Application of Mezzo, LLC d/b/a Fattoria for a New Hotel and Restaurant (City) Liquor License WHEREAS, on May 19, 2021, the Liquor Licensing Authority of the Town of Avon (“the Authority”) did receive and consider the application of Fattoria, whose mailing address is PO Box 99, Vail, Colorado, for a new Hotel and Restaurant (City) License located at 48 E Beaver Creek Blvd #105, 106, 107, and 108, Avon, Colorado; and WHEREAS, the Authority finds that Notice of Application was published in the Vail Daily on June 14, 2021 and June 30, 2021. Proof of publication by the publisher of the Vail Daily was received; and WHEREAS, the Authority finds that the application was in proper form and accompanied by the necessary supplementary evidentiary matter required by law, the regulations of the State of Colorado and the Authority; and WHEREAS, the application was supported by the applicant’s presentation to the Authority and by a petition containing 51 signatures in favor; and WHEREAS, the neighborhood to be served by the proposed licensee has been determined to be the Town of Avon, including residents of the Town, persons working in the Town and visitors to the Town as stated in TC Resolution No. 04-04 adopted on November 23, 2004. NOW, THEREFORE, THE LIQUOR LICENSING AUTHORITY OF THE TOWN OF AVON DO ES FIND: 1.The applicant is of good moral character and reputation. 2.The neighborhood to be served by the applicant is the Town of Avon, including residents of the Town, persons working in the Town and visitors to the Town. 3.There does exist a reasonable requirement in such neighborhood for the type of license for w hich application is made. 4.The adult inhabitants of the Town desire that the license be granted. ADOPTED THIS JULY 13, 2021 BY THE LOCAL LIQUOR AUTHORITY. TOWN OF AVON, COLORADO ______________________________ __________________________ Sarah Smith Hymes, Chairman Brenda Torres, Secretary ATTACHMENT D 970-748-4001 btorres@avon.org TO: Avon Liquor Licensing Authority FROM: Brenda Torres, Liquor Licensing Authority Secretary RE: PUBLIC HEARING for Special Event Permit Application - Flynn Creek Circus DATE: July 07, 2021 SUMMARY: Circus Mentors Inc., as the Applicant, is applying for malt, vinous, spirituous liquor permit to serve/sell beverages at the Flynn Creek Circus special event on August 13, 2021, August 14, 2021, and August 15, 2021. The Applicant has submitted materials required by the State of Colorado Liquor Enforcement Division and all materials are in order. Documents are on file in the Town Clerk’s office. The 1 Lake Street premise has been posted with notice of the public hearing for this application. The event manager will be present to answer question about the application. The Applicant has adequate proof of commercial liability insurance that meets Town requirements and has obtained any other permit needed for this event. Background checks show no previous failure by the Applicant to comply with Special Event Permit laws and fewer than 15 special event permits issued to the Applicant this calendar year. BACKGROUND: Special events permits are issued by the Local Licensing Authority to allow particular types of organizations, municipalities, and political candidates to sell, serve or distribute alcohol beverages in connection with public events. Avon has adopted the local option whereby applications are made directly to the Avon Local Licensing Authority. Special event permits may only be issued for prescribed hours on a single day. An entity may receive a maximum of 15 special event permits per calendar year. There is no required finding for the issuance of a special event permit. Section 44-5-106, C.R.S., states the grounds for denial of a special event permit application as follows: “The state or local authority may deny the issuance of a special event permit upon the gr ounds that the issuance would be injurious to the public welfare because of the nature of the special event, its location within the community, or the failure of the applicant in a past special event to conduct the event in compliance with applicable laws.” ACTION BEFORE THE LOCAL LIQUOR LICENSING AUTHORITY: The Town Council, acting as the Local Liquor Licensing Authority, will consider a Special Events Permit Application for the upcoming Flynn Creek Circus special event. A public hearing is required before final action is taken. Please note that Circus Mentors Inc. is acting as the Applicant for this permit. Applicant Name: Circus Mentors Inc. Event Name: Flynn Creek Circus Event Dates: August 13, 2021; 3:00 p.m. until 9:00 p.m. August 14, 2021; 12:00 p.m. until 9:00 p.m. August 15, 2021; 12:00 p.m. until 6:00 p.m. Location: 1 Lake Street Event Manager: Blaze Birge Permit Type: Special Events Permit -Malt, Vinous & Spirituous Liquor Page 2 of 2 PROPOSED MOTION: “I move to approve (or deny based upon statutory grounds for denial) the Special Events Permit application for the Flynn Creek Circus special event on August 13, 2021, August 14, 2021, and August 15, 2021.” Thank you, Brenda SPECIAL EVENTS PERMIT APPLICATION ATTACHMENTS: The Applicant for the special event permit has submitted the following materials: ✓ Attachment A: Application for a Special Event Permit (State form DR 8439) ✓ Attachment B: Alcohol Management Plan ✓ Attachment C: Diagram where liquor will be served ATTACHMENT A ATTACHMENT B/C ATTACHMENT B/C 970-748-4001 btorres@avon.org TO: Avon Liquor Licensing Authority FROM: Brenda Torres, Liquor Licensing Authority Secretary RE: PUBLIC HEARING for Special Event Permit Application - A Taste of Nature DATE: July 07, 2021 SUMMARY: The Walking Mountains Science Center, as the Applicant, is applying for malt, vinous, spirituous liquor permit to serve/sell beverages at the A Taste of Nature special event on August 05, 2021. The Applicant has submitted materials required by the State of Colorado Liquor Enforcement Division and all materials are in order. Documents are on file in the Town Clerk’s office. The 318 Walking Mountains Lane premise has been posted with notice of the public hearing for this application. The event manager will be present to answer question about the application. The Applicant has adequate proof of commercial liability insurance that meets Town requirements and has obtained any other permit needed for this event. Background checks show no previous failure by the Applicant to comply with Special Event Permit laws and fewer than 15 special event permits issued to the Applicant this calendar year. BACKGROUND: Special events permits are issued by the Local Licensing Authority to allow particular types of organizations, municipalities, and political candidates to sell, serve or distribute alcohol beverages in connection with public events. Avon has adopted the local option whereby applications are made directly to the Avon Local Licensing Authority. Special event permits may only be issued for prescribed hours on a single day. An entity may receive a maximum of 15 special event permits per calendar year. There is no required finding for the issuance of a special event permit. Section 44-5-106, C.R.S., states the grounds for denial of a special event permit application as follows: “The state or local authority may deny the issuance of a special event permit upon the gr ounds that the issuance would be injurious to the public welfare because of the nature of the special event, its location within the community, or the failure of the applicant in a past special event to conduct the event in compliance with applicable laws.” ACTION BEFORE THE LOCAL LIQUOR LICENSING AUTHORITY: The Town Council, acting as the Local Liquor Licensing Authority, will consider a Special Events Permit Application for the upcoming A Taste of Nature special event. A public hearing is required before final action is taken. Please note that the Walking Mountains Science Center is acting as the Applicant for this permit. Applicant Name: Walking Mountains Science Center Event Name: A Taste of Nature Event Date: August 05, 2021; 5:00 p.m. until 11:00 p.m. Location: 318 Walking Mountains Lane Event Manager: Katherine Brennand Permit Type: Special Events Permit -Malt, Vinous & Spirituous Liquor Page 2 of 2 PROPOSED MOTION: “I move to approve (or deny based upon statutory grounds for denial) the Special Events Permit application for the A Taste of Nature special event on August 05, 2021.” Thank you, Brenda SPECIAL EVENTS PERMIT APPLICATION ATTACHMENTS: The Applicant for the special event permit has submitted the following materials: ✓ Attachment A: Application for a Special Event Permit (State form DR 8439) ✓ Attachment B: Alcohol Management Plan ✓ Attachment C: Diagram where liquor will be served ATTACHMENT A ATTACHMENT B ATTACHMENT C AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES TUESDAY, JUNE 22, 2021 SETUP AS A HYBRID MEETING (BOTH IN PERSON & VIA ZOOM) 1.CALL TO ORDER AND ROLL CALL The meeting was hosted in person, as well as in a virtual format, via Zoom.us. 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, Scott Prince, Lindsay Hardy, RJ Andrade and Chico Thuon. Tamra Underwood was virtually present. Also present were Town Manager Eric Heil, Town Attorney Paul Wisor, Police Chief Greg Daly, Planning Director Matt Pielsticker, General Government Manager Ineke de Jong, and Secretary Brenda Torres. 2.APPROVAL OF AGENDA Video Start Time: 00:01:18 Chairwoman Smith Hymes removed agenda item 6.1 to be continued to the July 13th Liquor Authority meeting. Vice Chairwoman Philips moved to approve the liquor authority agenda as amended. Board member Hardy seconded the motion and the motion passed unanimously. 3.DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Video Start Time: 00:02:25 No conflicts of interest were disclosed. 4.PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA Video Start Time: 00:02:43 Chairwoman Smith Hymes asked for public comments by anyone present in person or virtually. No public comments were made. 5.REPORT OF CHANGES - MODIFICATION OF PREMISES Video Start Time: 00:03:00 5.1. APPLICANT: VAIL COUNTRY CLUB, LLC D/B/A VAIL CC LOCATION: 240 CHAPEL SQUARE UNIT B-126 TYPE: REPORT OF CHANGES - MODIFICATION OF PREMISES (HOTEL & RESTAURANT (CITY)) MANAGER: KENNY THAYER Vail CC Manager Kenny Thayer was present and answered questions from Board members. Vice Chairwoman Philips moved to approve the modification of premises application made by Vail Country Club LLC d/b/a Vail CC. Board member Hardy seconded the motion and the motion passed unanimously. 6.PUBLIC HEARING FOR A NEW H&R LIQUOR LICENSE APPLICATION 6.1. APPLICANT NAME: MEZZO LLC D/B/A FATTORIA This item was moved to the July 13th agenda. 7.APPROVAL OF THE MINUTES FROM JUNE 08, 2021 MEETING Video Start Time: 00:06:06 Board member Thuon moved to approve the minutes from the June 8, 2021 Liquor Licensing Authority Meeting. Vice Chairwoman Philips seconded the motion and the motion passed unanimously. AVON LIQUOR LICENSING AUTHORITY MEETING MINUTES TUESDAY, JUNE 22, 2021 SETUP AS A HYBRID MEETING (BOTH IN PERSON & VIA ZOOM) 8. WRITTEN REPORT 8.1. REPORT ON RECENT ADMINISTRATIVE APPROVALS 9. ADJOURNMENT The Avon Liquor Authority meeting adjourned at 5:07 p.m. These minutes are only a summary of the proceedings of the Local Liquor Licensing Authority 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, Secretary APPROVED: Sarah Smith Hymes ___________________________________ Amy Phillips Chico Thuon Scott Prince Tamra Underwood Lindsay Hardy RJ Andrade (970) 748-4001 btorres@avon.org AVON LIQUOR LICENSING AUTHORITY WRITTEN REPORT To: Avon Liquor Licensing Authority From: Brenda Torres, Liquor Licensing Authority Secretary Date: July 1st, 2021 Topic: REPORT ON RECENT LIQUOR LICENSE RENEWALS 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 require notice to be posted for seven days and Special Event Permits for ten 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 June 22, 2021, the Town has received one Renewal Application that has met all the requirements for administrative review and approval and was ultimately approved by the Town Clerk. No comments, complaints, or request for hearings were received. It is as follows: Renewals: Applicant: Ein Prosit Fine Beers & Sausages d/b/a Prost LLC Location: 82 East Beaver Creek Blvd. Suite M107 Type: Hotel and Restaurant (City) Manager: Scott Pohlman 970-300-4373 pwisor@garfieldhecht.com TO: Honorable Mayor Smith Hymes and Council members FROM: Paul Wisor, Town Attorney RE: Recall Appeal DATE: July 8, 2021 I. SUMMARY This memorandum addresses the Town’s position with respect to litigation to determine the proper method to calculate the signature threshold to trigger a recall election for Mayor Smith Hymes and Councilor Underwood. This memo seeks to articulate the Town’s arguments with respect to the recall, the recent Order provided by the Eagle County District Court as well as potential next steps for the Town. This memorandum is only a summary, and documents related to the recall litigation can be found at https://engage.avon.org/avon-recall-election II. BACKGROUND In 2020, a small group of Avon citizens formed the Avon Recall Committee for the purpose of recalling Mayor Sarah Smith Hymes and Councilor Tamra Underwood. The Town of Avon and the Recall Committee disagree on the number of signatures required to trigger a recall under state law. Many communities in Colorado interpret “entire vote cast” to encompass the number of actual people who participated in a given election. The Town believes this interpretation is correct. The Recall Committee believes the proper method requires counting all votes cast, i.e. bubbles filled, rather than people. There is no guidance from any Colorado court as to the correct method. In order to resolve this legal issue, the Town sought a Declaratory Judgment from Eagle County District Court. On June 23, the Court issued an order finding the Town’s interpretation is incorrect and directing the Town to hold a recall election for both Mayor Smith Hymes and Councilor Underwood. III. TOWN’S POSITION The Town’s view of the recall provisions is that they require the Town to include the vote and undervote, not because the Town wants a higher signature threshold, but because the Town believes Article XXI of the Colorado Constitution and the First and Fourteenth Amendments of the United States Constitution require people, not bubbles filled, to be accounted for in making the threshold calculation. A. Text of Article XXI Section 1 of Article XXI of the Colorado Constitution requires a recall election when a recall petition contains signatures equal to or greater than “twenty-five percent of the entire vote cast at the last preceding general election for all candidates for the office . . . said entire vote being divided by the number of all officers elected to such office.” So, for the 2018 Town Council election for four open seats, the threshold formula can be expressed as follows: (Entire Vote Cast x.25)/4 Page 2 of 5 Section 4 of Article XXI provides “no municipality may require a recall signature threshold more in number than twenty-five percent of the entire vote cast at the last preceding election.” Accordingly, we know the formula set forth above must always equal twenty -five percent of the entire vote cast. Only the Town’s interpretation of “entire vote cast” – that both votes and undervotes must be counted – consistently results in a number equal to 25% of the number of people voting. The Committee’s position – that “entire vote cast” only means bubbles filled - results in a number with no relationship to the number of people voting. For instance, in the 2018 Town Council election, 1,984 people returned ballots, with each voter being allowed to vote for up to four of the listed candidates . Within these ballots, a total of 5,276 bubbles were filled, i.e., votes were allocated to candidates, leaving a total of 2,660 bubbles unfilled, i.e. undervotes. Often in Avon elections, individuals will strategically vote for their preferred candidates and not vote for anyone else so as not to dilute their preferred candidate’s chances of winning . These unallocated votes are still recorded by the County and are known as undervotes. As set forth below, in the 2018 election, or any election, it is mathematically impossible to reach the 25% threshold as required by Article XXI unless votes and undervotes are counted. 2018 Election Entire Vote Cast Multiply by .25 Divide by 4 Total Required Signatures Signature Requirement as % of People (1,984) Signature Requirement as % of Bubbles Filled (5,276) Votes + Undervotes (ToA) 7,936 1,984 496 496 25% 9.4% “Votes cast” Bubbles Filled (Committee) 5,276 1,319 330 330 16.6% 6.2% The “votes cast” (bubbles filled) approach never yields a recall threshold that, in percentage terms, reaches 25%. However, the “votes plus undervotes” approach always does, no matter the number of open seats. To compare and contrast the wide variability arising from the “bubbles filled” approach with the consistency of the Town’s “votes plus undervotes” approach, consider an example where every voter in the 2018 Town election “bullet voted” – that is, they allocated a single vote for one candidate for Town Council, opting out of using their other three eligible votes. In that case, under the Committee’s approach, there would have been 1,984 “votes cast” (bubbles filled) so that only 124 signatures (6% of the electorate) would have been needed to force a recall election of any or all Council members. Under the Town’s approach, no matter how each person voted, the number of signatures required would still be 496 (25% of the electorate). This consistency of result fits in with our constitutional framework in a way that the Committee approach does not. Page 3 of 5 B. First Amendment It is the Town’s view that counting the votes and undervotes is consistent with the First Amendment, while the “votes cast” method violates it. The First Amendment of the United States Constitution provides “Congress shall make no law ... abridging the freedom of speech.” This protection necessarily extends to a citizen’s decision not to speak – that is, the government cannot compel you to speak. In the context of elections and voting, the First Amendment specifically protects voters’ right to refrain from speaking at all. And “[t]he right to speak and the right to refrain from speaking are complementary components of the broader concept of ‘individual freedom of mind.’” Under the “votes cast” approach, if a voter allocates a vote for only one candidate when she could have voted for up to four candidates, then, when it comes time for calculating a recall threshold, her single vote counts less than those of someone who voted for two, three, or four candidates. In other words, under the “votes cast” approach, a voter who wants her participation in an election to count equally to that of other voters for purposes of calculating a recall threshold must vote for the maximum number of candidates. This is diametrically opposed to the fundamental principles of the First Amendment, and directly impacts all Avon voters, no matter their view on this proposed recall election. The Town’s view of “entire vote cast,” on the other hand, permits an individual to be equally counted no matter how many bubbles they filled, which is in harmony with the First Amendment. C. Fourteenth Amendment In addition, the Town considers that the “votes cast” approach violates the Fourteenth Amendment rights of the Avon electorate. The United States Supreme Court has recognized that “the right to vote freely for the candidate of one’s choice is of the essence of a democratic society and any restric tions on that right strike at the heart of a representative government.” As such, the Fourteenth Amendment’s equal protection clause protects citizens’ right to vote because, as the United States Supreme Court has noted, the “[o]ther rights, even the most basic, are illusory if the right to vote is undermined.” The Fourteenth Amendment’s equal protection clause further guarantees that persons who are similarly situated will receive like treatment under the law. Once an Avon voter deposits a ballot in a Town Council election, there is no basis for the Town or the State to require Avon voters to utilize their maximum number of eligible votes for their participation in the democratic process to be equally counted for purposes of a recall election. Tho se voters who participated in the 2018 Avon Town Council election in a strategic manner have the right to have their participation counted on an equal basis as those who, in some cases, blindly allocated the maximum number of votes without consideration as to the consequences of such allocation for purposes of the present election or a future recall election. The Town’s interpretation of “entire vote cast” is the only interpretation that does not effectively compel speech by diluting the votes of those elec tors who choose to vote for fewer than the maximum number of candidates available to them, and is the only interpretation resulting in equal treatment of all electors. While the Court did render a decision in this case, precisely none of the arguments raised above were addressed. The Town’s arguments are compelling from a reading of the text of Article XXI. More important, however, there are significant concerns related to the constitutional rights of every Avon voter, and citizen for that matter, and those issues still need to be addressed by a court of competent jurisdiction, necessitating a review. Page 4 of 5 IV. COURT’S DECISION In an effort to bolster its position, the Town noted to the Court that in 1947 the Colorado General Assembly adopted statutory provisions to implement Article XXI. In doing so, the legislature did not use the “entire vote cast divided by available seats” formula. Instead, the legislature set the formula for recall as “ballots cast multiplied by twenty-five percent.” The Town noted the ballots cast formula utilized by the legislature produced the exact same results as the Town ’s interpretation of the “entire vote cast divided by available seats” formula, as show below: Formula Ballots Cast x.25 (Entire Vote Cast x.25)/4 2018 Data 1,984(.25) (7,936 x .25)/4 Recall Threshold 496 496 In 1991, the General Assembly considered a “clean-up bill” related to the municipal election code. Among many other changes, the bill altered the articulation of the formula to calculate a recall from “ballots cast multiplied by twenty-five percent” to the now familiar “entire vote cast divided by available seats” formula. Importantly, not a single legislator discussed this change. The United States Supreme Court has ruled that where there are technical changes to statutory language, not discussed by the legislature at the time of the change, then those changes should not be read as to make substantive alteration to the law. Given that the Town’s interpretation of “entire vote cast” renders the same result as “ballots cast multiplied by twenty-five percent,” it is not surprising there was no discussion of the change at the time it was made as legislators did not believe they were making a substantive alteration to the law. That is, they did not believe they were lowering the threshold from 25% to, as is the case here, 16% of the electorate. As such, in the Town’s view, “ballots cast” and “entire vote cast” are synonymous as both incorporate the total number of people participating in an election. The District Court disagreed. In its view, the General Assembly “deleted the language of ‘equal in number to twenty-five percent of all ballots cast…’ and replaced it with “equal in number to twenty-five percent of the entire vote cast…” The amendment changed the signature requirement to trigger a recall based on the number of ballots cast to the number of votes cast. The Court went on to say that “the Town’s interpretation would require application of the former ‘all ballots cast’ language of the statute; that is, the total number of votes cast plus the number of ‘undervotes’ or votes not cast, which will always be equal to the total number of ballots c ast. This position is untenable. It is in opposition to the amended statutory language, plain and ordinary meaning of the term ‘entire vote cast,’ and would require the Court to disregard the legislative change intended by the General Assembly.” It is the Town’s view that the Court missed a key part of the statutory change. In finding ballots cast was changed to “votes cast” (i.e. bubbles filled), the Court failed to identify the fact the statute also included the requirement the “entire vote cast” be divided by the number of seats available. This is a key component of the legislative change. Were the Court’s view of the change to be taken to its logical conclusion, the vote threshold would be 1,319 (5,279 “votes cast” [i.e., bubbles filled] multiplied by twenty- five percent). Finally, it is inconceivable that the legislators who voted on the bill, many of whom were Page 5 of 5 former municipal elected officials, would suddenly reduce the recall threshold without discussing the need to do so. V. Next Steps Over the course of the last several days, some members of the community have identified that the Court’s order did not address critical issues and have proposed alternatives to pursuing an appeal. Those options and proposals are addressed below. Adopt a Town Ordinance – The Avon Home Rule Charter specifically provides the Town’s recall procedures are governed by Article XXI. The Town cannot pass an ordinance that conflicts with its charter. Though a bit unclear, it would appear the Court’s order expresses the belief “entire vote cast” found in Article XXI means “votes cast.” Therefore, an ordinance would conflict with the charter, which requires the Town to look to Article XXI. Change the Charter – Changing the charter requires an election. The Town could alter the charter to follow state statute, but the Court’s order interprets the statute to mean “votes cast.” It may be possible, as a home rule municipality to establish the Town’s own recall threshold within the charter; however, Article XXI specifically provides no municipality may increase the 25% threshold. The Town would be increasing the threshold by adopting the approach it deems correct, and the Town, at best, would find itself in litigation. Change the State Statute – The General Assembly could amend the state statute to revert to the language adopted in 1947. However, as noted above, this approach does not produce the same outcome as the “votes cast” approach, and it certainly can be argued the court’s order provides the calculation in the constitution embodies a “votes cast” approach. The General Assembly is not bound by the District Court’s decision but it could be the basis upon which legislators decide not to vote for such a change. Even absent this risk, a change in state legislation is not a foregone conclusion. In addition, the Town would need to amend its charter to provide it follows the election code rather than the constitution. Finally, it has been suggested that conducting the recall election will be cheaper than pursuing an appeal were the issue to go all the way to the Colorado Supreme Court. This may be true in the short term, but it seems likely the next time a councilor receives a Certificate of Sufficiency (the mechanism by which the recall election begins), they would file an action against the Town and take the issue to the Colorado Supreme Court. The Town would be required to argue against its previous position, and, per the recall statute, would need to pay the councilor’s attorney fees were he or she to prevail. VI. Conclusion The Town did not undertake the recall litigation lightly or to prevent a recall election from commencing. The Town has raised legitimate questions of law that needed, and still need, to be addressed. Some of those questions implicate the fundamental rights of Avon voters . The Town and the community should take those issues seriously, if not for themselves, then for the rest of the state and those communities adopting the Town’s approach as embodied in their charters and municipal codes, which charters and municipal codes have now been called into question by this single District Court decision. Paul Wisor 970-748-4045 jhildreth@avon.org TO: Honorable Mayor Smith Hymes and Councilmembers FROM: Justin Hildreth, Town Engineer RE: July Update on 2021 Capital Improvement Program DATE: July 8, 2021 SUMMARY: This memo provides Town Council an update on the current status of the 2021 Capital Improvements Program. The Capital Project Fund budget as amended in April and project descriptions are attached. RECREATION CENTER PROJECTS Pool Plastering. The recreation center pools have a coat of plaster that needs to be replaced every 10- years and was last completed in 2009. The Recreation Center will have to be closed because plastering the pools is an intrusive process that includes draining the pools, blasting off the old plaster generating a lot of dust, and applying a new coat and letting it cure. Contractors that specialize in pool construction and renovation have inspected the Recreation Center pool and 2 of 3 updated bids have been received. A limited amount of tile replacement is included for both cosmetic and code compliance purposes. The project is scheduled for October, requires closure of the Recreation Center and has a budget of $215,000. The project will be funded with $141,000 from the Equipment Replacement Fund and the remainder from the Capital Projects Fund. Page 2 of 9 Jacuzzi Leak Repair and Pool Deck. The jacuzzi is currently closed because the water line is leaking approximately 3000 gallons/per day. The proposed leak repair includes removing concrete, excavating the pipe, replacing the pipe, backfill and concrete work. The concrete pool deck and associated trench drain repair is needed for both safety and cosmetic purposes. In several areas where settling of a concrete pad has occurred – often at the deck drains – a lip of up to ½” is creating a tripping or toe stubbing hazard. This work will be targeted to the area’s most in need and augmented with grinding the edges when practical. The concrete area near the jacuzzi where the main drain is suspected to be leaking will also be repaired. We are recommending these repairs be completed during the October shutdown because of the disruption to pool operations. This project is not in the current CIP and the requested project budget is $60,000. Heating and Air Condition Building Automation System Upgrades. The existing Recreation Center Heating and Air Condition (HVAC) Building Automation System (BAS) is over 10-years old and is no longer supported. Also, the BAS no long communicates with equipment in the facility, reducing its efficiency. The project will replace the BAS with a similar system utilized in Town Hall and the Public Safety Facility. The project includes repairs to the HVAC equipment communication network and potential energy efficiency benefits. We are in the process of selecting an engineering firm to start with the diagnostic process. The project budget is $250,000 and construction will occur in 2022. Page 3 of 9 HARRY A. NOTTINGHAM PARK PROJECTS Harry A. Nottingham Park West Landscape Improvements Project. The project started on April 1st and is mostly complete except for the stone steps, irrigation system and punch list items. The project expenses are within the $318,000 budget. The project included the following: • Update of the landscaping around the tennis and basketball courts • Replacement of the softball field with a multi-purpose athletic field • Addition of a seating and picnic area east of the parking lot • Upgrade to the parking lot entrance landscaping • Installation of an entry monument sign to match the other park entrances • Construction of 3 public sculpture foundations • Convert irrigation system water source from potable to non-potable, saving the Town water fees and energy West Harry A. Nottingham Park Landscaping Page 4 of 9 Pickleball Resurfacing Project. $100,000 is included in the 2021 CIP budget to resurface the 4 pickleball courts in Harry A. Nottingham Park because of extensive cracking. The adjacent tennis court is proposed to be resurfaced and striped for both pickleball and tennis. Contractors specializing in resurfacing are booked for 2021 and we are currently engaging contractors to resurface the courts in spring 2022. This project is evolving as we learn more about constructing a facility that best satisfies the long-term needs of a fast-growing community of Pickleball enthusiasts. The Town’s previous approach involved filling the existing cracks (some up to 2 ½” wide), leveling and patching followed by resurfacing/painting. After a year or two, the cracks in the asphalt develop again because of freeze-thaw conditions and repairs are repeated. We have contacted Eagle Vail, Homestead and Vail which have recently installed courts and several specialized installers for advice. At this time, it appears that making a long-term investment in building a post tensioned concrete pad, which will last 30+ years without any significant cracking, provides the best value and safest courts. To construct these over the 2 existing tennis courts (creating 4 – 8 Pickleball courts), will require a budget of $325,000. Staff will consult with the Health and Recreation Committee and community partners to determine the final pickleball/tennis court layout. Most communities use a painted, textured hard surface which cost approximately $10,000/pickleball court and several communities have transitioned to a cushioned surface which cost approximately $14,000/pickleball court. The hard surfaces can last 10 years while the soft ones last about half as long. We are seeking direction from Council on whether to move forward with just resurfacing the pickleball courts for $100,000 or move forward with rebuilding the courts with a concrete pad and adjusting the project budget to $325,000. Eagle Vail Pickleball Courts Page 5 of 9 Vail Pickleball Courts Harry. A. Nottingham Park North Restrooms. Restrooms are proposed in the vicinity of the beach and volleyball courts. Proposals are currently being solicited for the design of the facility. The facility is currently envisioned to be of similar size and design to the Playground Restrooms. Public comment will be solicited using Engage Avon (engage.avon.org) and the site location and building design will be submitted to Planning and Zoning Commission for design review. The current budget is $50,000 in 2021 and $450,000 in 2022. The project budget is a placeholder since the project has not been fully scoped. Construction is scheduled to start in September 2022, after the summer season. Harry A. Nottingham Park, East Improvements. The project is scheduled to be presented after this Capital Project update. Construction is currently planned for 2022. Harry A. Nottingham Park Pavilion Moisture Repair Project. The new moisture proofing system and concrete topping slab have been installed. The new railing at the edge of the deck is being fabricated and should be installed by the end of July. Expenses are within the project budget of $425,600. Former Town Hall Asbestos Removal and Demolition Project. The project is underway and includes the following items: • Relocate electrical utilities from the building to new control panels • Abatement and disposal of asbestos at hazardous waste landfill in eastern Colorado • Demolition and removal of structure • Removal of underground fuel tank near former police entrance • Grading of site in preparation for future development The project is currently behind schedule though expenses are within the $643,359 project budget. Page 6 of 9 STREET IMPROVEMENTS Metcalf Road Culvert Repair. A 30-Ft long section of a 7-FT diameter culvert underneath Metcalf Road collapsed in the vicinity of the northern Metcalf Lofts driveway. The culvert is 130-FT-long and is 25-FT below Metcalf Road. There are several underground utilities above the culvert including water, sewer, gas, electric, Comcast and Century Link. The combination of pipe depth and the presence of utilities makes repair or replacement very difficult and expensive. The sediment in the culvert has been cleaned out and we have evaluated the condition to develop an appropriate repair method. A new 50-FT long, 48-IN diameter section of culvert will be slip-lined (inserted) into the larger culvert. At the same time, the remaining pipe will be coated with a material to prevent further damage. The new culvert will have smooth walls and the same hydraulic capacity as the larger pipe. The culvert cleaning, slip-lining and coating will cost $300,000. Location of damaged culvert under Metcalf Road 2021 Proposed Avon Road/I 70 Pedestrian Safety Improvements. The project will improve safety for bicyclists and pedestrians traveling underneath I70 at Avon Road. Project components include: • Detaching the sidewalk from Avon Road and rerouting it to the west side of the bridge columns • Removing concrete paving and replacing it with landscaping and rock • Constructing snow sheds to prevent snow and ice build-up on the sidewalk • Adjusting drainage to prevent snow melt from accumulating on the sidewalk Town Council has awarded the project to Gould Construction and construction is scheduled to start in August and will be completed by November 1, 2021. The steel sheds are in fabrication and we have obtained the required Colorado Department of Transportation permits. Project Budget: $1,051,835. Page 7 of 9 Digital Displays Digital displays are scheduled to be installed on the Union Pacific Railroad Bridge over Avon Road in late July. Staff presented an update on the Digital Displays at the June 22, 2021, and, as directed by Council we are preparing to present the following five locations to the Planning and Zoning Commission for Design Review input: • Metcalf Road, at the water pump station or Wildwood Road • Nottingham Road at Swift Gulch Road • West Beaver Creek Blvd at Railroad Tracks • Post Blvd between East Beaver Creek Blvd and Railroad Tracks • Hurd Lane Graphic Representation of the Digital Display on the Railroad Bridge Page 8 of 9 The Planning and Zoning Commission recommendations will be incorporated into a Digital Sign program presented to Council for incorporation into the 2022 Capital Projects Fund budget. Buck Creek Road Repair and Paving Project. Buck Creek Road near the first switchback is deteriorating and requires major repairs. The project includes an asphalt overlay, drainage improvements, retaining wall repairs and guardrail replacement. The project has been awarded to United Companies, is scheduled to be completed this fall, and expenses are within the project budget of $800,000. Page 9 of 9 Mikaela Way Paving Project. The project area includes Mikaela Way and Town Hall Parking Lot. The existing infrastructure is over 20-years old and requires major reconstruction. The project scope includes an asphalt overlay, concrete repairs, drainage improvements and American with Disabilities Act upgrades. The project is currently being bid out and is scheduled to be completed in fall 2021. Project Budget: $400,000. ATTACHMENTS A -Capital Projects Fund budget as amended by Resolution B - 21-10 Project Descriptions Fund Summary Proposed Original Revised Difference Actual Budget Budget Increase 2020 2021 2021 (Decrease) REVENUES Taxes 5,998,950$ 2,500,000$ 3,300,000$ 800,000$ Intergovernmental 32,040 - 69,000 69,000 Investment Earnings 92,480 50,000 50,000 - Other Revenue 770 - - - Total Revenues 6,124,240 2,550,000 3,419,000 869,000 Other Sources: Transfer In from Other Funds 700,000 848,500 848,500 - Total Other Sources 700,000 848,500 848,500 - TOTAL REVENUES AND OTHER SOURCES 6,824,240 3,398,500 4,267,500 869,000 EXPENDITURES Capital Improvements: Facilities 490,210 1,484,840 2,439,863 955,023 Land and Land Improvements 79,006 968,000 988,705 20,705 Roads and Streets 1,109,419 2,367,000 2,558,373 191,373 Utility Projects 289,803 - 285,894 285,894 Communications and Technology 142,756 357,000 594,534 237,534 Debt Service: Capital Leases 81,999 81,999 81,999 - Total Expenditures 2,193,193 5,258,839 6,949,368 1,690,529 Other Uses Operating Transfer-Out - General Fund 247,314 247,314 341,648 94,334 Operating Transfer-Out - Debt Service Fund 1,007,801 967,385 967,385 - Operating Transfer-Out - Mobility Fund - 500,000 600,000 100,000 Operating Transfer-Out - Fleet Maintenance Fund - 193,460 193,460 - Operating Transfer-Out - Equipment Replacement Fund - 425,000 425,000 - Total Other Uses 1,255,115 2,333,159 2,527,493 194,334 TOTAL EXPENDITURES AND OTHER USES 3,448,308 7,591,998 9,476,861 1,884,863 NET SOURCE (USE) OF FUNDS 3,375,932 (4,193,498) (5,209,361) (1,015,863) FUND BALANCE, Beginning of Year 8,722,351 7,222,383 12,098,283 4,875,900 FUND BALANCE, End of Year 12,098,283$ 3,028,885$ 6,888,922$ 3,860,037$ Fund Balances Restricted For: Asphalt Overlay 657,821$ 108,421$ 450,230$ 341,809$ Assigned For: Tract G/URA Projects 484,108 1,040,000 899,108 (140,892) Unreserved 10,956,354 1,880,464 5,539,584 3,659,120 Total Fund Balances 12,098,283$ 3,028,885$ 6,888,922$ 3,860,037$ Capital Projects Fund #41 Supplemental Amendment No. 1 ATTACHMENT A Proposed Original Revised Difference Account Actual Budget Budget Increase Number Description 2020 2021 2021 (Decrease) Taxes: 51401 Real Estate Transfer Tax 5,976,990$ 2,500,000$ 3,300,000$ 800,000$ 51304 Penalties and Interest 21,960 - - - 51000 Total Taxes 5,998,950 2,500,000 3,300,000 800,000 Intergovernmental: Federal / State: DOLA - Broadband Grant - - 25,000 25,000 Colorado Energy Office - 2020 Charge Ahead Grant 32,040 - - - Colorado Energy Office - 2021 Charge Ahead Grant - - 44,000 44,000 53000 Total Intergovernmental 32,040 - 69,000 69,000 Investment Earnings: 57101 Interest Earnings 92,480 50,000 50,000 - 57000 Total Investment Earnings 92,480 50,000 50,000 - Other Revenues: 58999 Nonclassified Revenues 770 - - - 58000 Total Other Revenues 770 - - - Other Sources: Transfer In from Avon URA: 59201 Tract G Projects 700,000 700,000 700,000 - Transfer in from Community Enhancement Fund 59201 West Avon Preserve Trail Improvements - 28,500 28,500 - 59201 Powerline Undergrounding - 120,000 120,000 - 59000 Total Other Sources 700,000 848,500 848,500 - 50000 TOTAL REVENUES 6,824,240$ 3,398,500$ 4,267,500$ 869,000$ Revenue Detail Capital Projects Fund #41 Supplemental Amendment No. 1 ATTACHMENT A (1)(2)(3)(4)(1+2+4) Proposed Revised 2019 and Original Amended Estimated Difference Account Prior Actual Budget Budget Project-to-Date Increase Number Description Actuals 2020 2021 2021 Expenditures Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS Facilities: General Government Facilities: 11009 Town Hall Control System -$ 10,924$ -$ -$ 10,924$ 10,715$ 10,715$ -$ Completed - 2020 11012 Tenant Finish Construction - NTH 4,864,853 22,914 - - 4,887,767 4,774,516 4,774,516 - Completed - 2020 11020 Fiber - Pavilion to NTH 46,192 6,247 - 17,561 70,000 70,000 70,000 - Carryover. To Be Completed - 2021 11021 Level 2 EV Charging Station - NTH - 5,322 - - 5,322 5,000 5,000 - Completed - 2020 11022 New Town Hall Security Upgrades - 105,423 - - 105,423 125,000 125,000 - Completed - 2020 11023 New Town Hall 2nd and 3rd Floor Updates - 3,335 100,000 96,665 100,000 100,000 100,000 - Carryover. To Be Completed - 2021 Old Town Hall Site: 11019 Utility Upgrade - 144,169 - 305,831 450,000 450,000 450,000 - Carryover. To Be Completed - 2021 11024 Asbestos Mitigation / Demolition - 1,200 525,000 523,800 525,000 525,000 525,000 - Carryover. To Be Completed - 2021 11025 Restrooms - Nottingham Park OTH Site - - 85,000 85,000 85,000 935,000 935,000 - New Project 2021 Public Safety Facilities: 12006 PSF Parking Lot Canopy Design - - 20,000 20,000 20,000 20,000 20,000 - New Project 2021 Wildridge Emergency Warning Siren - - - 26,000 26,000 - 26,000 26,000 New Project 2021 Transportation Facilities: 14010 Fleet Maintenance EPDM Roof Replacement - - 300,000 300,000 300,000 300,000 300,000 - New Project 2021 14019 Bus Shelter - Piedmont Apartments - - 30,000 30,000 30,000 30,000 30,000 - New Project 2021 Cultural and Recreational Facilities: 15018 Pavilion - Retractable Door 252,195 40,574 - - 292,769 290,700 290,700 - Completed - 2020 15019 Pavilion - Deck Railing and Floor Replacement - 95,434 - 330,166 425,600 425,600 425,600 - Carryover. To Be Completed - 2021 15020 Recreation Center Weight Room Expansion 456,983 3,565 - - 460,548 500,000 500,000 - Completed - 2020 15021 Recreation Center Locker Replacement - - - 200,000 200,000 200,000 200,000 - Carryover. To Be Completed - 2021 15023 Recreation Center HVAC Upgrade - - 250,000 250,000 250,000 250,000 250,000 - New Project 2021 15024 Recreation Center ADA Parking - - 10,000 10,000 10,000 10,000 10,000 - New Project 2021 Recreation Center Yogo Studio Bathroom Conversion - - - 25,000 25,000 - 25,000 25,000 New Project 2021 Project Expenditures Total Project Budget CIP Projects Inventory Capital Projects Fund #41 Supplemental Amendment No. 1 ATTACHMENT A (1)(2)(3)(4)(1+2+4) Proposed Revised 2019 and Original Amended Estimated Difference Account Prior Actual Budget Budget Project-to-Date Increase Number Description Actuals 2020 2021 2021 Expenditures Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS Project Expenditures Total Project Budget CIP Projects Inventory Capital Projects Fund #41 Supplemental Amendment No. 1 15025 Metcalf Family Cabin Feasibility Analysis - - 20,000 20,000 20,000 20,000 20,000 - New Project 2021 Other Facilities: 13013 Swift Gulch Housing Design - - 120,000 120,000 120,000 120,000 120,000 - New Project 2021 19005 2120 Saddle Ridge Loop (Fire Station) Improve.36,160 - 24,840 24,840 61,000 61,000 61,000 - Carryover. To Be Completed - 2021 19006 DC Fast EV Charging Station - Tract A - 51,103 - - 51,103 75,000 75,000 - Completed - 2020 Level 2 Charging Station and DC Fast EV Charging Statio - - - 55,000 55,000 - 55,000 55,000 New Project 2021 Land and Land Improvements: 21022 Eagle River Whitewater Park Repair 215,758 20,200 - - 235,958 245,758 245,758 - Completed - 2020 21027 O'Neil Spur Park Improvements Design 1,988 - - 18,012 20,000 20,000 20,000 - Carryover. To Be Completed - 2021 21053 Resurface Pickleball Courts - - 100,000 100,000 100,000 100,000 100,000 - New Project 2021 21054 Wildland Fire Mitigation - 22,859 40,000 40,000 NA NA NA - Ongoing 21055 Power Line Undergrounding - - 120,000 120,000 120,000 120,000 120,000 - New Project 2021 21056 West Nottingham Park Improvements/Soccer Field - 9,307 268,000 270,693 280,000 280,000 280,000 - Carryover. To Be Completed - 2021 21057 O'Neil Spur Park Parkiing Lot Rebuild - - 100,000 100,000 100,000 100,000 100,000 - New Project 2021 21058 Restrooms - Nottingham Lake Beach - - 50,000 50,000 50,000 500,000 500,000 - New Project 2021 21059 Nottingham Park Benches - 26,640 - - 26,640 26,640 26,640 - Completed - 2020 21060 Nottingham Park Light Upgrade- Phase 2 - - 190,000 190,000 190,000 190,000 190,000 - New Project 2021 21061 Beach Expansion - - 100,000 100,000 100,000 100,000 100,000 - New Project 2021 Roads and Streets: Streetscape Improvements 31030 Mall Activation Elements - 15,088 - 14,912 30,000 30,000 30,000 - Carryover. To Be Completed - 2021 31031 Avon Rd./I70 Aesthicis Improvements 8,465 44,668 900,000 995,112 1,048,245 1,048,245 1,048,245 - Carryover. To Be Completed - 2021 ATTACHMENT A (1)(2)(3)(4)(1+2+4) Proposed Revised 2019 and Original Amended Estimated Difference Account Prior Actual Budget Budget Project-to-Date Increase Number Description Actuals 2020 2021 2021 Expenditures Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS Project Expenditures Total Project Budget CIP Projects Inventory Capital Projects Fund #41 Supplemental Amendment No. 1 Annual Street Maintenance and Repair: 32026 Retaining Wall Repairs - Nottingham & Swift Gulch Rd.- - 150,000 150,000 150,000 150,000 150,000 - New Project 2021 33219 Annual Guard Rail Improvements - 38,668 40,000 40,000 NA NA NA - Ongoing 33103 Eaglebend Dr. Resurfacing 1,040 189,189 - - 190,229 225,000 225,000 - Completed - 2020 32028 Yoder Ave. Asphalt Overlay 3,930 202,611 - - 206,541 550,000 550,000 - Completed - 2020 32034 Buck Creek Repairs - 11,651 800,000 788,349 800,000 800,000 800,000 - Carryover. To Be Completed - 2021 32031 Mikaela Way and Benchmark Rd.- - 400,000 400,000 400,000 400,000 400,000 - New Project 2021 32032 Hurd Lane Intersection Improvements - - 20,000 20,000 20,000 20,000 20,000 - New Project 2021 Street Improvements 32029 Benchmark Rd. On-street Parking 37,952 552,940 - - 590,892 600,000 600,000 - Completed - 2020 Multi-Modal/Alternative Mobility: 34033 East and West B/C Blvd. Street Rebuild 3,988,243 2,140 - - 3,990,383 4,025,943 4,025,943 - Completed - 2019 34040 West B/C Blvd./ Beach On-steet Parking Imp.- - - 150,000 150,000 350,000 150,000 (200,000) New Project 2021 Recreational Trails Program: 34043 West Avon Preserve Trail Improvements - 52,464 57,000 - 52,464 57,000 57,000 - Completed - 2020 Utility Projects: 21026 Nottingham Rd. Debris Flow Improvements and Water Qua 164,303 35,831 - 224,866 425,000 425,000 425,000 - Carryover. To Be Completed - 2021 21028 Avon Road Water Quality Vault Projects - 253,972 - 61,028 315,000 484,000 315,000 (169,000) Carryover. To Be Completed - 2021 ATTACHMENT A (1)(2)(3)(4)(1+2+4) Proposed Revised 2019 and Original Amended Estimated Difference Account Prior Actual Budget Budget Project-to-Date Increase Number Description Actuals 2020 2021 2021 Expenditures Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS Project Expenditures Total Project Budget CIP Projects Inventory Capital Projects Fund #41 Supplemental Amendment No. 1 Communications and Technology: 81011 Broadband - - - 125,000 125,000 125,000 125,000 - Carryover. To Be Completed - 2021 81012 Fiber - CDOT Hand hold to PSF - - 80,000 80,000 80,000 80,000 80,000 - New Project 2021 81013 RR Bridge LED Messaging Boards - - 75,000 75,000 75,000 75,000 75,000 - New Project 2021 81014 Permanent Variable Message Boards (3)- - 150,000 150,000 150,000 150,000 150,000 - New Project 2021 81015 Finance/Comm Dev. ERP System - 142,756 - 82,534 225,290 225,290 225,290 - Carryover. To Be Completed - 2021 81016 Mini-split NTH Data Center - - 20,000 20,000 20,000 20,000 20,000 - New Project 2021 81017 Firearms Simulator - - 32,000 32,000 32,000 32,000 32,000 - New Project 2021 81018 Hybrid Meeting Technicl Improvements - - - 30,000 30,000 - - - New Project 2021 Total Capital Improvement Projects 10,078,062$ 2,111,194$ 5,176,840$ 6,867,369$ 18,915,098$ 20,852,407$ 20,589,407$ (263,000)$ ATTACHMENT A Town of Avon | Budget Book 2021 Page 161 Capital Project Descriptions Facilities Old Town Hall Demolition Description: The old Town Hall is proposed to be demolished in 2020. Demolishing the building necessitates extending a water main, relocating electrical equipment attached to or in the building that supplies power to the entire park, installation of a new fiber optic line from New Town Hall to the stage, removal of asbestos, and grading out the site. Budget: $600,000 Level 2 Charging Station at Town Hall Description: A level 2 (4 to 8-hour charge time) charging station is proposed at Town Hall and will be available to town motor pool vehicles and the public. Budget: $35,000 Public Safety Facility Parking Lot Canopy Description: A canopy over the police patrol vehicles is proposed to protect the vehicles from snow. This will decrease response times and improve safety for officers. Budget: $400,000 Cinder/Deicer Storage Description: The cinders and deicer are currently stored in the open. Water and snow that lands on the deicer will leach out into the soil in high concentrations impacting storm water quality. Snow will accumulate on the cinders causing them to freeze and difficult to break. The shed will protect the cinders and deicer and simplify loading the snowplows and reduce leaching of the deicer. Budget $300,000 Fleet Maintenance Facility EPDM Roof Replacement and Solar Panels Description: EPDM roofs have an expected life span of 15 to 20-years. The existing roof is 25 years old and is starting to leak in several locations. This project will replace the EPDM roof with a similar material. For project synergies, solar photovoltaic panels are recommended to be included with the project. Budget: $725,000 Nottingham Park Pavilion — Retractable Door Description: Replacement of the stage curtain with a retractable door will allow for more flexibility during inclement weather. Included in the project is the repair of several water leaks into the pavilion basement. Budget: $322,928 Nottingham Park Pavilion Deck Railing and Floor Replacement Description: The water proofing under the stage deck is not functioning properly and is not covered by warranty. This project will replace the deck topping slab and water proofing. In conjunction with this project, a railing will be installed along the front of the deck. Budget: $215,000 Recreation Center HVAC Upgrade Description: The existing HVAC is running on a software system that is no longer supported and no longer communicates with all the components. This project will upgrade the operating system and improve system efficiency by repairing the broken components. Budget: $250,000 Recreation Center Locker Replacement Description: The Recreation Center lockers were installed almost 20-years ago, are past their useful life, and the parts to maintain them are becoming difficult to obtain. Budget: $200,000 Recreation Center Phase 2 Design Description: The master plan for the Recreation Center envisions a multi-purpose gym for sports activities on the northeast side of the building. The design approach will begin with project scoping, then move to schematic design and design development. The design will be taken far enough to develop accurate construction price estimates for a potential ballot initiative. The project will likely include remodeling of the interior of the existing building. Budget: $500,000 Remodel of the Cabin in H.A. Nottingham Park ATTACHMENT B Town of Avon | Budget Book 2021 Page 162 Description: The cabin located in H.A. Nottingham Park was relocated to its current location approximately 30-years ago. The interior is not functional and does not support green room demands and children recreation requirements. When the cabin was moved, several alterations were made that do not consider the historical nature of the building. The building will incorporate the historical and make it functional for existing park demands. Budget: $500,000 Level 3 Fast EV Charging Station – Tract A Description: The electrical vehicle plan recommends a level 3 fast charging station (30 to 60 min) located on Tract A. Tract A is a town-owned parking lot located in front of Pier One. Staff will be applying for grants to offset the project costs. Budget: $75,000 Benchmark Road On-Street Parking Description: Several Town plans envision adding on street parking to West Benchmark Road from Avon Station to Mikaela Way. The goal is for the parking to support local businesses and provide parking for Avon Station and the Gondola. The design will incorporate environmentally sustainable practices to minimize the effect of the additional paved area. The project is delayed from 2019 due to unexpected utility conflicts. Budget: $440,000 Restrooms – H.A. Nottingham Park at Old Town Hall Site Descriptions: Restrooms are proposed for the old town hall site. The project has not been scoped at this time, so this budget is a place holder. Budget: $935,000 Restrooms – H.A. Nottingham Park near Beach Descriptions: Restrooms are proposed in the vicinity of the beach and volleyball courts. The project has not been scoped at this time, so this budget is a placeholder. Budget: $500,000 Patio Landscaping at OTH Descriptions: The patio on the east side of the old Town Hall site is proposed to be kept since it is heavily used. This project will remodel the patio to match the current design pallette in the park. Budget: $100,000 Study and Schematic Design of West Main Street Description: The Town master plans envisions extending the Main Street Mall from Mikaela Way to Lake Street. There have been recent changes to the area including the vacating of 351 Benchmark Rd., the former fire station. This plan will study the area and create a vision for extending the mall and then develop the design. Budget: $225,000 West Main Street Construction Description: This project will extend the mall from Lettuce Shed Lane to Lake Street matching the aesthetic used at Possibility Plaza. Budget: $1,500,000 Land and Land Improvements Whitewater Park Repairs Description: The whitewater park experienced hydrologic changes caused in high runoff years. The features were updated in 2019 to make them enjoyable and effective. However additional modifications are required to improve the feature and are scheduled for late 2019 or early 2020. Budget: $281,390 Nottingham Park Light Upgrade Description: The existing lights were originally installed in 1980 and show signs of wear and tear along with not being energy efficient. The program will replace the lights with modern LED bollard fixtures, like the ones installed around the pavilion and Main Street Mall. This is the second phase of a multi-year project and will install the bollards on the south side of the park. Budget: $310,000 Resurface Pickleball Courts Description: The pickleball courts located on the west side of Nottingham Park where built over several tennis courts that were in disrepair. The cracks were filled when the pickleball courts were installed but are coming back and impairing the responsiveness of the pickleball courts. This new surface will be more responsive and enjoyable for the users. Budget: $50,000 ATTACHMENT B Town of Avon | Budget Book 2021 Page 163 West Nottingham Park Landscape Improvements Description: The landscaping in the west side of Nottingham Park has deteriorated due to age, especially around the tennis courts and bus stop. The project will update the landscaping and bring it up to the same standard as the rest of the park. Budget: $55,000 Lower Soccer Field/Baseball field removal Description: The baseball field is not frequently used and a better use for that area is to remove the infield, plant grass and build a smaller soccer field for youth teams. Budget: $25,000 Retaining Wall/Seating Replacement by Old Town Hall Description: The original wood retaining wall along the paved path south of the main athletic field is old and in disrepair. This project will replace the wood wall with a stone wall designed for seating and match the current design aesthetic in the park. Budget: $150,000 O’Neil Spur Parking Lot Rebuild Description: The O’Neil Spur Parking lot is in disrepair and this project will rebuild asphalt parking lot. Budget: $100,000 Roads, Streetscape, and Trails Metcalf Road Retaining Wall Stabilization Description: The sandstone cliff above Metcalf Road just prior to the upper switchback was not stabilized during its original construction. The cliff is made up of loose sandstone that is steadily eroding and causing the lot immediately above to gradually erode toward the existing structure’s foundations. This project will install a retaining wall to prevent further erosion of the steep slope. Budget: $100,000 Mall Activation Elements Description Several elements are proposed to help activate the Main Street Mall including outdoor musical instruments and monuments to honor the history of Avon. Budget $30,000 Avon Road/I-70 Interchange Pedestrian Improvements Description: The pedestrian experience along Avon Road underneath I-70 is important because it connects the Nottingham Road trail, Swift Gulch Road trail and the Nottingham Road neighborhood with the Town Core. It has poor connectivity; and winter icing issues. The project will widen the path on the westside separating it from traffic and improve the drainage. Budget: $990,000 Retaining wall repairs, Nottingham Road and Swift Gulch Road Description: The retaining walls along the bike path paralleling Nottingham Road and Swift Gulch Road are starting to show signs of deterioration. This project will provide repairs and maintenance to ensure the wall longevity. Budget: $50,000 Annual Guardrail Maintenance Improvements Description: The majority of the guardrail in Avon was installed when the roads were constructed in the late 1970s and early 1980s. The guard rail is in poor condition and needs major maintenance. This project will fund yearly maintenance for the next four years. Budget: $40,000/year Annual Paving/Road Improvements Description: The Town’s annual street resurfacing and pavement maintenance program generally consists of asphalt overlays, slurry seals and related surface treatments such as curb and gutter, storm drainage repair, ADA Ramp updates and guardrail replacement or adjustment. The program includes a 5-year slurry seal rotation and 20-year rebuild rotation for the roads. The paving locations are determined annually based on the Asphalt Paving Association rating system. Budget: 2020 Eaglebend Drive $300,000; 2020 Yoder Ave. $550,000; 2021 Mikaela Way and Benchmark Road $400,000; 2020 Buck Creek Road repair $300,000; 2022 W. Beaver Creek Blvd Hwy. 6 to AES $515,000; 2023 Riverfront Lane and Lake Street $450,000; 2024 Post Blvd $1,400,000 US Hwy. 6 Crosswalks Description: Hwy 6. east of Avon Road is scheduled to be paved in 2021 and the Town is partnering with CDOT on the installation of pedestrian flashing beacons at Stonebridge Drive and Avon Road. Budget: $80,000 ATTACHMENT B Town of Avon | Budget Book 2021 Page 164 West Beaver Creek Blvd Beach on Street Parking Improvements Description: Since the construction of the beach, there has been an increase in the amount of park guests, and they have been parking in the West Beaver Creek Blvd bike lane near the north park entrance. This project will widen the shoulder, so the vehicles will no longer park in the bike lane. Budget: $350,000 USFS Road 779 Access Improvements Description: The Town is currently negotiating improvements to the USFS Road 779 access of which a portion is on Town property. Budget: $100,000 Resurface Park Paths Description: The majority of the paths on the west side of Nottingham Park, especially around the baseball field are in poor condition. They have deteriorated due to age and require complete replacement. Budget: $520,000 Water Nottingham Road Debris Flow Study and Implementation Description: Currently after large rainstorms, the runoff transports large amounts of mud and debris onto Nottingham Road, overwhelming the ditches and closing the road. This project started with a study analyzing the drainages and proposed remediation alternatives. In 2019 the first project was implemented near the church to reduce the amount of sediment deposited on Nottingham Road. The next phase of project will be near the Chambertin Townhomes and above 230 Nottingham Road. Budget: $450,000 Avon Road Stormwater Quality Vaults Description: The strategic plan states that the water quality in the Eagle River is high priority for the Town. A regional drainage plan recommends underground stormwater quality vaults that will collect pollutants including trash, oils and other pollutants before they are discharged to the river. The east vault will be located just west of the Christy Sports parking lot. The west vault will be located just east of the White River building. Budget: $484,000 ATTACHMENT B 970-748-4413 mpielsticker@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Matt Pielsticker, AICP, Planning Director RE: Work Session: East Harry A. Nottingham Park Improvements DATE: July 8, 2021 OVERVIEW: The purpose of this work session is for the Town Council to provide direction on the East Harry A. Nottingham Park improvement project. During the Capital Improvement Plan (“CIP”) budget process last year, staff was directed and approved to proceed with design (2021) of restrooms “and ancillary improvements”, a picnic and seating area, and retaining wall replacement. In the attached materials you will find what is being referred to as the “Base” option reflecting the direction received last year. The option shows the bathrooms pushed toward the west side of the side, and the balance of the property landscaped with trees and ground cover. A narrative summary (“Attachment B”) and illustrative site diagrams (“Attachment C”) were developed by the design professionals at Zehren and Associates for the area of the old Town Hall site. The Town Council will review input from the Cultural Arts and Special Events Committee (“CASE”), Planning and Zoning Commission (“PZC”), and public comments related to the project. Pedro Campos, Principal with Zehren and Associates, will present the background and other design alternatives for Town Council consideration. DIRECTION SOUGHT: Please come to the work session prepared to provide your input and direction on the following key elements: 1. Sports Fit Court relocation to this site? Staff comments: Since the construction of the Sports Fit Court in its current location, it has been acknowledged that it is not in an opportune location. Early programming meetings challenged the design team to incorporate the fit court into some of the design alternatives for this project – as a potentially viable relocation area for the Sports Fit Court. Comments so far have consistently questioned this site as the appropriate location, challenging to either find a different location or leave the Sports Fit Court where it current exists. 2. Confirmation of Restrooms Size / # of fixtures. Staff comments: The footprints for each restroom structure accommodate approximately twenty (20) fixtures each. It has been determined that this fixture count, in addition to the restrooms on the north side of the main field, will adequately accommodate all daily needs, Avon LIVE!, and expanded Avon LIVE! series moving forward. Larger ticketed events and Salute to the USA will always require additional facilities. The existing sewer line infrastructure serving the area has been evaluated for integrity, size, and slope. Initial review shows that the sewer line is in good condition, however, the size (4”) may be a limiting factor in the currently designed fixture count. If the sewer service line is determined inadequate for capacity of current and future projected needs, then replacement will be required. The final determination will come back to Town Council at a future meeting. Replacement of the sewer line would add to the conceptual budget figures. 3. Inclusion of Storage Building or no Storage Building on the site at this time? Staff comments: Through programming exercises with internal staff at the project outset, storage was identified as a need for special events. Currently, storage for events is spread between 351 Page 2 of 8 Benchmark (old Fire House), behind the parks garage, and below the stage. Consolidation and centrally located storage, with easy access, is imperative to successful Town produced events. The design alternatives include storage flanking the west parking lot. This area works well for events as it can be accessed with vehicles and is close to the main field. Feedback received so far has questioned the need for storage on this site near the restrooms citing the “prime real estate”. The storage area below the stage is actively used but is difficult to access on a routine basis with a set of stairs. Staff is currently exploring the possibility of constructing a ramp out of the storage area below the stage as a potential to leverage the existing area. 4. Inclusion of Permanent Concessions Space or no Permanent Concession space on the site at this time? Staff comments: While not part of the original CIP discussions, this element was developed out of initial staff meetings. Having concessionary space adjacent to a storage area was found to be efficient. The space is anticipated to be beverage only concessions, with food vendors occupying other areas of the park for events or sporting events. This element was heavily supported by CASE committee. It is estimated that concessionary space would be used up to 25 days per year. 5. Inclusion of new Programmable (multi-use court, plaza, or mixed-use ground space area) or no new programmable / leasable space? Staff comments: The “Multi-Use Plaza” concept measures about the size of two tennis courts put together. It shows up in Concepts 3 and 4 in varying layouts. The range of uses contemplated for the multi-use plaza include: recreational uses (i.e. meetup spot for sports teams, registration for athletic races, yoga in the park, etc), events (i.e. vendors, meetups, staging area for restrooms, private events with rented tents), and passive uses with park benches. 6. Is the “Base Option” the preferred direction? Staff comments: This was the initial scope of the project as outlined in the 5-year CIP. It is included in the design package (“Attachment A”), along with preliminary level cost estimates. This base option could be expanded in the future with other desired programming elements. DESIGN PROCESS: The design process began with internal staff members from Public Works, Recreation, Parks, Special Events, Community Development, Engineering, and Administration. Circulation and needs/wants were identified early in the process to better understand current utilization of the area surrounding old Town Hall and the resultant parameters for the project. Notably, storage and concessionary space for special events were desires brought into the programming discussion early as they play into the long-term vision of the space. The fit court was also brought into the discussion as an opportunity since there is often conflict with inappropriate use during events. An opportunities and constraints analysis quickly determined the geographic boundaries of the project (i.e. multi-use path on northern boundary cannot move due to major utilities), and the elevation changes from one side of the property to the other. A series of sketch drawings were then produced by the design team. The sketches began to inform general areas of programming, and how the identified program elements, such as storage for special events, could be arranged on the site. After another round of internal staff review took place before four (4) conceptual site layouts were produced. These layouts were modified before first “public” review by the CASE Committee on May 20th. Minor modifications were again made to the diagrams before presentation to PZC on June 15th. Avon Page 3 of 8 LIVE! was attended by Pedro Campos and I on June 23rd and July 7th to gain additional feedback from park users. The feedback from the various audiences is summarized below. SCHEDULE AHEAD: • July-October – Schematic/Final Design • October 26 – Town Council Update • November – Bid Out • January – Notice of Award to Contractor • Spring 2022 - Construction BUDGET: The current 5-year CIP includes the following line items related to this effort: - $85,000 for design in 2021 - $120,000 for undergrounding powerlines in 2021 - $850,000 for construction of public restrooms and ancillary improvements in 2022 - $100,000 for construction of patio and seating area in 2022 - $150,000 for construction of retaining/seating wall 2022 Following an RFQ process, staff engaged Zehren and Associates. A “do not exceed” was executed in the amount of $56,700. The services include conceptual design (current phase), community engagement, 30% level schematic drawings, and cost estimating. Design services to bring the final preferred design through final design will be negotiated pending Council direction. MANAGER’S COMMENTS: I encourage consideration and awareness of our “needs” versus “desires” for the redevelopment of the old Town Hall site. I also encourage a design and program whereby the Town “builds it once and builds it right” to serve the east end of Harry A. Nottingham Park and Special Events for 10 years and beyond. In addition to my cover memorandum (“Attachment A”), a Draft 10-Year Vision document is presented to illustrate the potential demands of Special Events if these events continue to grow. This Draft (“Attachment D”) 10-Year Vision document also illustrates that the number of events and capacity of the main field to recover in between events may be reached simply with the current list of Special Events and concepts for additional events. This information was presented to the CASE committee and is provided to PZC for additional understanding of the vision. PZC COMMENTS: On June 15, 2021 PZC held a work session to review the concepts. The following summarizes PZC comments: General Consensus from PZC: - Increased landscaping and expanded picnic area is supported on east side of project area - No fit court in this area of the park. - “Stadium” seating above the retaining wall is supported - Include bicycle racks Miscellaneous comments from PZC: - The pedestrian experience on south side of bathrooms needs to be prioritized. - Cut stone should be placed on top of seating/retaining wall Page 4 of 8 - Long term (i.e. 10 plus year vision) programming should drive current design direction CASE COMMENTS: On May 20, 2021 the CASE Committee reviewed the concept plans and provided input. This meeting included some public comment as well. The following summary captures the salient points from that meeting: General Consensus Areas from CASE: - Concessionary space should be integrated at outset of project and not phased in later - Like Concept #4, with modifications (i.e. consider reorientation with BC views) - Parking should be maximized with this project - Bring the park area and green space into the project boundaries with more landscaping - Retaining wall replacement is supported - Uncertainty with ‘multi-use plaza’ area programming and uses - Structure(s) as art, with intentional architecture Miscellaneous Comments from CASE: - Not correct location for fit court - Consider storage needs co-located with Parks Storage garage to west side of parking lot - Art incorporated into walkway/seating wall would add interest - Landscaping should screen parking PUBLIC COMMENTS: A project page was created at Engage Avon. Additionally, attendance at Avon LIVE! on June 23rd and July 7th elicited additional feedback from the community. Overall, positive feedback and support for any improvement is supported. The majority of This summary captures general comments received at Avon LIVE!: General comments from Avon LIVE! attendees: - Numerous comments on the need to add parking wherever possible for the park - Options 3-4, with multi-use plaza area are worth pursuing - Storage may not be the highest and best use for the site - Add landscaping wherever possible - Make sure the viewing platform areas have shade - Keep the trees and view (i.e. minimize dominance of structures) - Fit court seems out of place - Possible area to utilize for pickleball - New views of the mountains to the south need to be considered in the new design - Some of the existing trees in the foreground and background block the views to the south - Support for replacing the wall along the north side of the parcel as an informal seating area. - Permanent concessions located close to venue would be a nice addition. - Separate picnic area from restroom queuing and entries – undesirable views / odors - Preserve existing parking, add more if possible - The site deserves world class architecture and landscape architecture Page 5 of 8 DESIGN REVIEW PROCESS: Once direction on project scope and budget is received by Town Council, the design team will move into schematic drawings. The schematic plans will be wrapped up into a “Major Development Plan” application. The Major Development Plan process includes a public hearing with PZC. The final recommendation from PZC will be reviewed by the Town Council, who takes final action on the design plans. BACKGROUND: It is important to present the ever-evolving history of this portion of Harry A. Nottingham Park. The following timeline attempts to capture relevant policy directives for the property, through the lens of the Town’s long range planning documents. A summary of highlighted policy from each document is presented on the following pages to explain the evolution of the site. 2006 Comprehensive Plan. This community wide plan started to contextualize this area as the focal point for the Town, acknowledging that it could become an anchor a future main street. 2006 Comprehensive Plan Policies: - Program enhancements to better activate and enhance the park as Avon’s primary recreational and cultural center. - Strengthen this area by including amenities such as a performing arts pavilion, maintaining flexible space for temporary concession facilities, and providing a western anchor to main street. Nottingham Park has developed into the cultural epicenter of the Town. By developing the event pavilion and programming a diverse selection of events and activities, the park has matured into a true anchoring point. LONG RANGE PLANS Page 6 of 8 2007 West Town Center District Investment Plan: The Investment Plan lead to the realignment of Lake Street and full design of a one-way street, which would have terminated into Lake Street near the old Town Hall. The Investment Plan included the relocation of Town Hall and envisioned a private hospitality use on the subject parcel. Policies: o Maintain views to Beaver Creek o Automobile access facing the park is strongly discouraged. o Inn at Nottingham Park Hotel Concept The first phase of the Investment Plan, realigning Lake Street and developing Avon Station (transit hub) were completed shortly after the plan. With the great recession, plans for a vehicular main street were shelved, as were most elements of the Investment Plan. Maintaining views to Beaver Creek continue to be an important element when programming the site. 2009 Master Plan for Harry A. Nottingham Park: The public process and resulting park plan document were the first step in fully realizing the potential for Harry A. Nottingham Park. Specific design and programming recommendations were detailed for the different zone areas of the park. Concepts included a performance pavilion built onto the back of the old Town Hall building. Specific recommendations from the 2009 Master Plan for Harry A. Nottingham Park included: o Recommends restrooms, expanded concession space, new lighting and park furniture o “Back of house” support for large events o New restrooms close to an existing facility Restrooms are the focus of this effort, as well as “back of house” for larger events. It should be noted that path lighting has been phased into other areas of the park, and final lighting will be an important part of the final design plans for this site. Page 7 of 8 2015 Planning Review and Update to Harry A. Nottingham Park. This plan followed the development of the Performance Pavilion. It validated the concept to relocate police/fire and all Town Hall administrative services to elsewhere in Town. Specific plan policies included: o Community flex space that would include support facilities for the stage and public restrooms o Existing Town Hall occupies a corner of Nottingham Park that may be better utilized for other community-based uses that can support the park and provide new amenities. 2017 Comprehensive Plan. Consistent with previous policy documents, the 2017 Comprehensive Plan reaffirmed the need to capitalize on views and plan for flexible space. Policies from the 2017 Comprehensive Plan include: o Enhancement of existing amenities near Nottingham Park o Maintain flexible space for temporary concession facilities. o Preserve view corridors to Beaver Creek and the Main Street Pedestrian Mall. Page 8 of 8 2018 Town-Properties Plan. This most recent planning effort focused on the development of a multi-use facility (structure), and included the idea to move and repurpose the Hahnewald Barn to the site. In all plan iterations the importance of multi-use for all seasons was emphasized. o Old Town Hall Area: Multi-Use Facility; new surface parking; restrooms o The Old Town Hall could incur a net loss of parking spaces with the reuse of the site. Thanks, Matt ATTACHMENT A: Memo from Eric Heil, Dated July 9, 2021 ATTACHMENT B: Summary Memo from Pedro Campos, Dated July 8, 2021 ATTACHMENT C: Conceptual Diagrams from Zehren & Associates, dated July 13, 2021 ATTACHMENT D: DRAFT Avon Special Events 10-20 Year Vision Document, dated May 18, 2021 970.748.4004 eric@avon.org TO: Honorable Mayor Smith Hymes and Council FROM: Eric Heil, Town Manager RE: Work Session: East Harry A. Nottingham Park Improvements DATE: July 9, 2021 SUMMARY: This report supplements reports submitted by Matt Pielsticker, Planning Director and Pedro Campos, Zehren and Associates, Inc. I am providing a recommendation based on public input I have heard over many years concerning the use of Harry A. Nottingham Park, my understanding of the current need of Special Events and a projected increased demand of Special Events in 10 years, my understanding of Avon’s staffing resources, and taking into consideration the role of this capital improvement project balanced with numerous other important capital improvement projects. RECOMMENDATIONS: I recommend that Council give strong consideration to the “Base” Concept, support the direction to focus on refinements to Base Concept and direct staff to work with Zehren to proceed to schematic designs of Base Concept. Pedro always recognized that we would get a better vision of the site once the old Town Hall structure was demolished. I believe this to be true and I believe the best, and most affordable, use of the property is simply public restrooms with more “park space”, meaning more grass and trees for general public use and picnic tables. The Town has received comments consistently over the years expressing concerning about over programming and over building in the park. Although this is a modest footprint area, it is the only real opportunity to add more “park” square footage to the existing park. We have experienced strong public demand and usage of the treed park area along the north side of the main field and adjacent to the playground. I believe the highest and best use of the old Town Hall site footprint is simply the addition of similar park area with grass, shade trees and picnic tables on the south side of the field, along with the public restrooms. I cannot recommend the construction of storage or a fixed concession facility. I understand it is possible to replace the existing stairs to the storage below the stage with a 5% ramp. The access width is 12’, which allows for both our electric park carts and pick-up trucks to back in for loading and unloading of storage items. The Town has already invested in constructing this storage area which has plenty of room to store additional items. CASE Committee and our CASE Manager have recommended the construction of a fixed beverage concession facility. I am not able to endorse that expenditure for the construction of a fixed concession facility for the following reasons: • The set-up of tents and mobile bars works. It works for AvonLIVE! events less than 1,000 and worked for the recent Salute to the USA Event serving over 8,000. • The mobile set-up is the most flexible for location as events grow and change in footprint. • Due to constraints imposed by the need for the main field to have three-four non-event rest and recovery days per week and the limit of the surrounding neighborhood to tolerate large events on main field, I foresee Avon growing into a maximum of 25 special events days where the Town of Avon would sell alcohol for events on the main field. The cost of labor to set-up and break-down mobile concessions is less than the cost to construct a fixed concession facility. I estimate that labor costs for set-up of mobile concessions for 25 special event days is $10,000 - $15,000. The ATTACHMENT A Page 2 of 2 construction of a ramp to easily access storage below the stage will improve the efficiency of set- up time for mobile beverage concessions. The cost of constructing a fixed concession facility will be in the range of $300,000 to $500,000 depending on size and improvements. AVAILABLE RESOURCES: It is a central and primary role of my position as the Town Manager to look at all of the Town’s desired projects and recommend the optimum allocation of resources to accomplish the goals of the community. I foresee and support a number of additional (and relatively modest) improvements to Harry A. Nottingham Park which have been voiced and identified by the public and Council members. The growth of regional transportation is resulting in the full use of our federally funded regional transportation facility for transit. There is a near term need in the next two years to construct covered parking for Public Works snowplows which were previously using surplus space in the regional transit facility. I also anticipate the desire of the Town to increase investment in Community Housing, particularly with the ability to partner with other local governments and with the increased availability of state and federal matching funds. These are significant expenses in addition to the expenses identified in our 5 year Capital Improvement Plan. For these reasons, I recommend that Council’s original vision and direction to focus on the public restrooms, replacing the retaining wall, and landscaping the site for additional park picnic area is the appropriate allocation of financial resources and meets the identified needs and preferences of the Avon Community. Specifically, I recommend that Council provide direction to proceed with schematic design of Concept 1 as well as proceed with designs to construct a ramp to the storage area below the Avon Pavilion. Thank you, Eric ATTACHMENT A Town of Avon East Nottingham Park Improvements Design and Community Engagement 1 | Page Town of Avon East Nottingham Park Improvements: Summary of Conceptual Site Plan Diagrams TO: Matt Pielsticker, Planning Manager, Town of Avon CC: Eric Heil, Town Manager, Town of Avon Justin Hildreth, Town Engineer, Town of Avon FROM: Pedro Campos, Zehren and Associates, Inc. DATE: July 8 2021 SUBJECT: Conceptual Site Plan Diagrams for Town Council Worksession on July 13, 2021. This memorandum is intended to provide a summary of the (5) Conceptual Site Plan Diagrams prepared by Zehren and Associates Inc for the East Nottingham Park Design Improvements project. The summary is part of the information being shared with the Avon community for a preliminary round of review and input to help guide the redevelopment of the Old Town Hall located on the eastern edge of Nottingham Park. The summary is organized to: 1) provide background on the effort. 2) highlight proposed improvements shared in all (5) concept site plan diagrams. 3) summarize differences unique to each of the concept site plan diagrams. 4) provide preliminary cost range for the options based on anticipated costs per square foot for building and site work costs. 1. Background Zehren and Associates was retained by the Town of Avon in April of 2021 to help with the design and community engagement facilitation for the East Nottingham Park Design Improvements project. The Old Town Hall is currently being demolished and the project involves the first steps of design and community input to determine the new uses and facilities on the site. The Town’s goals are first and foremost to develop new facilities that will support recreational, special events, and everyday use of Nottingham Park across the seasons. New bathrooms and storage facilities are major program elements for the site, in addition to vehicular and pedestrian circulation facilities to improve access into the park during special events including athletic tournaments, weekly free summer concerts, and large festivals. The concept plan diagrams prepared by Zehren and Associates include improvements that are shared in all concepts based on baseline needs and constraints. Likewise, the concept plan diagrams explore a variety of different layouts and configurations for the site to maximize the redevelopment opportunity of the site. The goal of the current ‘conceptual design’ stage of the effort is to obtain input from the community and to narrow down to a preferred conceptual site plan diagram. ATTACHMENT B Town of Avon East Nottingham Park Improvements Design and Community Engagement 2 | Page Specifically, toward the Town Council’s review during the worksession on July 13, a 5th ‘Base Option’ was prepared to show only the original program items requested by Council. These include: new restrooms, a picnic area with shade and seating, and a new wall along the north side of the property, to replace the existing wall. The ‘Base Option’ was added to the front end of the graphic presentation, before the (4) options previously developed and that explore additional program items vetted with Town staff. 2. Proposed Improvements shared by all (5) options: Due to existing park facilities adjacent to the Old Town Hall site that will remain and their existing patterns of use and operations, there are several program elements and new improvements that are included in the Base Option and all of the conceptual site plan diagrams. These include: a. The parking lot on the east side of the project site, between Lake Street and the area of the Old Town Hall will be preserved and remain as parking. b. The parking lot on the west side of the property will remain as it provides parking supply for everyday park users during normal day use of the park and serves as a service yard and turn-around area for large vehicles during special events. Likewise, the Parks and Recreation maintenance yard, storage building, and trash collection area are also preserved in all concept plan diagrams. These facilities will continue to operate in the future as they currently do in present day conditions. Expansion of the trash collection area is anticipated in this location. c. The walkway and site wall along the northern edge of the facility will be replaced by a new walkway and wall. There are numerous utilities in this corridor and the limits of the athletic field near to the existing walkway require that it be replaced and kept generally in the same width and location. The existing wall is used for seating and is being replaced to preserve this same pattern of use. The existing walk serves as a major east – west pedestrian thorough-fare within the park and provides access and back of house for vendors during special events. d. The West Benchmark Road running along the south of the property will remain. This road provides access to the Parks and Recreation maintenance yard and storage building, the western parking lot and the performance stage. Existing perpendicular and angled parking located on the side of the road will also remain. A new access control gate at the intersection of Lake Street and West Benchmark Road is proposed to restrict vehicular access during the staging and operation of special events in the Park. e. Vehicular and service access is shown on the western side of the property from the west parking lot. This provides access to the Parks and Recreation maintenance yard and storage building, to the ‘service plaza’ associated with the performance stage and pavilion, and to the walkway running along the north side of the site. New bollards or a new access control gate is called for at the transition between the service yard on the parking lot and the service plaza associated with the performance stage. ATTACHMENT B Town of Avon East Nottingham Park Improvements Design and Community Engagement 3 | Page f. Existing large trees that are called out for preservation and have not been removed during the demolition of the building are shown preserved in all concept plan diagrams. The exception is the one large cottonwood tree on the northeast corner of the east parking lot. This cottonwood tree may need to be removed due to the hazards it poses. One creative public art idea is that the stump could be left in place and re-purposed as an art element, with a wood carving of the stump to create a unique naturalistic sculpture and serve as a landmark for the park. g. A xeriscape demonstration garden is proposed in the planting area located under the Austrian pines called for preservation, and in between the walkway along the north and west parking lot / service yard. This location was the site of a former xeriscape garden which the Town wishes to renovate in the same location. It serves to help buffer the walkway and park from the service yard, as well as provide beauty and visual and educational interest along the walkway. h. Improvement of Lake Street pedestrian corridor and inclusion of Public Art. The eastern edge of the project will include the improvement of the sidewalk and landscaping along Lake Street and calls for new public art at the northeast corner of the site, and possibly the southeast corner too. The goal is to announce this area as the eastern gateway into Nottingham Park and increase the character and visual appeal of this key location of the park. i. Electrical transformers and controls relocated to the west side of the site and accessed from the west parking lot. This location is proposed to provide convenient access from the service yard and closer to the events staging and operations area. j. All concepts include new restrooms, storage space, and a picnic area. However, these vary in layout, size and location depending on each concept and are described in greater detail in section 3, below. The ‘Base Option’ excludes storage as it was not part of the original program requested by Town Council. 3. Differences unique to each Concept Site Plan diagrams Each of the concept site plan diagrams propose to accommodate and develop the program for the site in a different manner. The way in which the restrooms, storage and picnic area organized vary in each concept. In some cases, there are additional facilities and park elements that are explored in the diagrams. These differences are as follows: a. Concept 1: • New Storage Building and small service yard on the far west end of the site. • New Restrooms on the east end of the site. • Green park area in between the storage and restrooms. • New east-west pedestrian route / walkway along the southern edge of the site. • New north / south pedestrian route and walkway through the center of the site. • Picnic area on the northeast corner adjacent to the east parking and north walkway. ATTACHMENT B Town of Avon East Nottingham Park Improvements Design and Community Engagement 4 | Page • Potential covered / shelter areas attached to the storage and restroom building oriented to the green park area in between. • Sports Fit court relocated to the southeast corner adjacent to the east parking. • Additional parking on the north side of West Benchmark Road. • Overlook space oriented to the north for viewing of the recreation field and performance stage. b. Concept 2: • New Storage Building and small service apron on the far west end of the site. • New Restrooms Building across from Storage, with entrances facing east and west, accessing to the picnic area and to the central spine, respectively. • Potential covered / shelter area between the storage / restrooms buildings to provide additional cover, storm shelter and shade. • Potential concessions space on the northeast corner of the storage building, wrapping the corner of the building and oriented toward the north and the east for queuing and circulation. • New east / west pedestrian route and walkway along the southern edge of the site. • New north / south pedestrian route and walkway through the center of the site. • Picnic area on the east edge of the site to bring additional park and landscape area into the site adjacent to the east parking and the north walkway. • Additional parking on the north side of West Benchmark Road. • New events plaza space oriented to the north for viewing of the recreation field and performance stage. c. Concept 3 • New Storage Building and small service yard on the southwestern corner end of the site. • New Restrooms on the northwestern corner of the site, connected to and sharing a wall with the new storage building. • Multi-use court area in the center of the site to be used for sports courts during every day park use and for special events uses too. • Picnic area on the northeast corner adjacent to the east parking and north walkway. More expansive and larger than the picnic area shown in Concepts 1 and 2, also serves as overlook area into the park • New north / south pedestrian route and walkway through the center of the site. • Sports Fit court relocated to the southeast corner adjacent to the east parking. • Additional parking on the north side of West Benchmark Road. • Potential free-standing shelter oriented to the multi-use court, the picnic area, and the sports fit courts. ATTACHMENT B Town of Avon East Nottingham Park Improvements Design and Community Engagement 5 | Page • Overlook space oriented to the north, near restrooms for viewing of the recreation field and performance stage. d. Concept 4 • New Storage Building and small service yard on the western edge of the site. • New Restrooms along the southern edge of site. Separate restrooms wings, with a covered shelter in the space in between, connecting the two wings of restrooms, centered on the multi-use plaza. • Multi-use central plaza in the center of the site facing north. Serves to support every day park use and special event uses too. Offers overlook space oriented to the north, for viewing of the recreation field and performance stage. • Western wing of the restrooms connected to the Storage Building. • Eastern wing of the restrooms has a potential picnic shelter oriented to the Picnic Area. • Potential concessions area shown on back side of Storage Building facing the multi-use plaza. • Picnic area on the northeast corner adjacent to the east parking and north walkway. More expansive and larger than the picnic area shown in Concepts 1 and 2. Relates to the central plaza and serves as overlook area into the park. • New north / south pedestrian route and walkway through the center of the site. • Sports Fit court relocated to the southeast corner adjacent to the east parking. 4. Preliminary Cost Budget for the (4) concept site plan diagrams The effort is in conceptual preliminary stages and lacks sufficient detail for detailed cost estimating. At this stage, a range for the preliminary cost budget has been established based on the anticipated program for the site and shared elements in each concept site plan diagram, which are similar. The Base Option includes Restrooms 2250 sf in area. Estimated at $400 / sf price of construction, this represents $900,000 for the construction of just the restrooms. The other (4) options include both a Storage Building and Restrooms (2000sf and 2250 sf in size respectively). Estimated at $400 / sf price of construction, this represents $1.7 million for the construction of both the storage and restrooms. Additional improvements within each option include a new walkway, wall, picnic area, relocation of the sports fit court, additional shelter, and landscaping. For these elements a budget of $850,000 is proposed. Further a budget for site work is proposed at $550,000 for all options to address grading, new paving, and utilities. For Concepts 3 and 4, an additional budget of $500,000 is proposed for the multi-use court and the multi-use plaza. Given this, the following are the range the preliminary cost budget for concept site plan diagrams 1 and 2 and for concept site plan diagrams 3 and 4: ATTACHMENT B Town of Avon East Nottingham Park Improvements Design and Community Engagement 6 | Page Base Concept Buildings (Restrooms 2,250sf @ $400 / sf): $ 900,000 Site Program Elements (Picnic Area, Wall, Walkway, Landscaping): $ 700,000 Site Work and Utilities: $ 550,000 Sub-total $ 2,150,000 20% Contingency $ 430,000 Preliminary Cost Budget $2,580,000 Concepts 1 and 2: Buildings (Storage and Restrooms 4,250sf @ $400 / sf): $1,700,000 Site Program Elements (Picnic Area, Shelter, Wall, Walkway, Landscaping): $ 850,000 Site Work and Utilities: $ 550,000 Sub-total $3,100,000 20% Contingency $ 620,000 Preliminary Cost Budget $3,720,000 Concepts 3 and 4: Buildings (Storage and Restrooms 4,250sf @ $400 / sf): $1,700,000 Site Program Elements (Picnic Area, Shelter, Wall, Walkway, Landscaping): $ 850,000 Site Work and Utilities: $ 550,000 Multi-use Courts or Plaza $ 500,000 $3,600,000 20% Contingency $ 720,000 Preliminary Cost Budget $4,320,000 These budgets are preliminary and provided as on order of magnitude for reference. A 20% contingency has been applied to account for unknowns, inflation and fluctuating costs of materials and labor. A more detailed estimate will be prepared for the preferred concept and when it evolves to a schematic level of design later in the design process. - END - ATTACHMENT B EAST NOTTINGHAM PARK IMPROVEMENTSARCHITECTURE PLANNING INTERIORS LANDSCAPE ARCHITECTURE AND ASSOCIATES, INC. .(970) 9 49-0257 F.(970)949-1080 www.zehren.comPO Box 1976,Avon, Colorado Z E H R E N Town of Avon July 13,2021 Town of Avon East Nottingham Park Improvements Conceptual Planning Diagrams ATTACHMENT c EAST NOTTINGHAM PARK IMPROVEMENTSARCHITECTURE PLANNING INTERIORS LANDSCAPE ARCHITECTURE AND ASSOCIATES, INC. .(970) 9 49-0257 F.(970)949-1080 www.zehren.comPO Box 1976,Avon, Colorado Z E H R E N Town of AvonJUly 13, 2021 Town Context0 100’50’200’1/2 m i le10 m in wa lk 1/4 m i le5 m in wa lk Nottingham Lake Fit Court Playground A v o n Recreation Center A v o n Library The Westin New Riverfront Town Homes Eagle River Union Pacific Railroad Highway 6 To Beaver Creek Resort Interstate 70 Athletic Field A v o n Performance Pavilion Lake StreetU.S. Post Office W.B e n c h m a r k R o a d Avon RoadAvon RoadMai n S t r e e t Ped e s t r i a n M a l l Mika e l a W a y Sheraton Mountain Vista Villas Old Town Hall Cabin To Recreation Path Avon RoadRiv e r f r o n t L a n e ATTACHMENT c EAST NOTTINGHAM PARK IMPROVEMENTSPedestrian Circulation Vehicle Circulation Important Pedestrian Intersection View Corridors Key Important Vehicle Intersection ARCHITECTURE PLANNING INTERIORS LANDSCAPE ARCHITECTURE AND ASSOCIATES, INC. .(970) 9 49-0257 F.(970)949-1080 www.zehren.comPO Box 1976,Avon, Colorado Z E H R E N Town of AvonJUly 13, 2021 Site Analysis0 45’90’ Eagle River Old Town Hall A v o n Performance Pavilion Athletic Fields Old Fire Station A v o n Library A v o n Recreation Center Lake Street Union Pacific Railroad Recreation Path Nottingham Lake Parking Parking Service Maintenance Service Cabin To Pedestrian Mall Views to Beaver Creek Ben c h m a r k R o a d Playground Riv e r f r o n t L a n e ATTACHMENT c EAST NOTTINGHAM PARK IMPROVEMENTSARCHITECTURE PLANNING INTERIORS LANDSCAPE ARCHITECTURE AND ASSOCIATES, INC. .(970) 9 49-0257 F.(970)949-1080 www.zehren.comPO Box 1976,Avon, Colorado Z E H R E N Town of Avon July 13,2021 Stairs to old Town Hall on East Former Picnic Area NE corner Existing East Parking Lot / Cottonwood View from Sports Field Looking South Timber Wall and North Walkway West Parking lot / Service AreaWest Benchmark Road along South West Parking Lot and Existing Cabin Service Access to Performance Pavilion Outdoor Sports Fit Court Site Photos ATTACHMENT c TOPO1 OF 1 Transformer 14’ x 12’ EAST NOTTINGHAM PARK IMPROVEMENTSSite Boundary Pedestrian Circulation Vehicle Circulation Important Pedestrian Intersection View Corridors Existing Trees to Preserve New Trees Focal Spot Art Key Important Vehicle Intersection Power Pedestal ARCHITECTURE PLANNING INTERIORS LANDSCAPE ARCHITECTURE AND ASSOCIATES, INC. .(970) 9 49-0257 F.(970)949-1080 www.zehren.comPO Box 1976,Avon, Colorado Z E H R E N Town of AvonJUly 13, 2021 Restrooms 2,250sf area New Park Green Space and Picnic Area New Walkways Parking Cabin Performance Stage Sports and Recreation Fields Parking Parks and Rec Storage Widen Entrance + Bollards Parking and Events Staging Short Term Parking Parking New Gate Lake StreetParking Parking Walkway Seat Wall Seat Wall Views to Beaver Creek Views to South Xeric Garden Base ConceptSCALE: 1” = 20’ 0 20’10’40’ Union Pacific Railroad Service Plaza Access Lake Focal Spot Service Yard Trash Expansion Parking Shelter Golf Cart Access Ramp ATTACHMENT c TOPO1 OF 1 Transformer 14’ x 12’ EAST NOTTINGHAM PARK IMPROVEMENTSSite Boundary Pedestrian Circulation Vehicle Circulation Important Pedestrian Intersection View Corridors Existing Trees to Preserve New Trees Focal Spot Art Key Important Vehicle Intersection Power Pedestal ARCHITECTURE PLANNING INTERIORS LANDSCAPE ARCHITECTURE AND ASSOCIATES, INC. .(970) 9 49-0257 F.(970)949-1080 www.zehren.comPO Box 1976,Avon, Colorado Z E H R E N Town of AvonJUly 13, 2021 Storage (2,000sf) Restrooms (1,125sf) Restrooms (1,125sf) Picnic Area Overlook Overlook Green Walkway Parking Cabin Performance Stage Sports and Recreation Fields Parking Central Spine for Pedestiran & Service Access Parks and Rec Storage Widen Entrance + Bollards Parking and Events Staging Short Term Parking Parking New Gate Lake StreetParkingParking Walkway Seat Wall Views to South Views to South Xeric Garden Concept 1SCALE: 1” = 20’ 0 20’10’40’ Union Pacific Railroad Service Plaza Lake Focal Spot Service Yard Trash Expansion Service Apron Parking Fit Courts (1,427sf) Shelter Golf Cart Access Ramp ATTACHMENT c TOPO1 OF 1 EAST NOTTINGHAM PARK IMPROVEMENTSSite Boundary Pedestrian Circulation Vehicle Circulation Important Pedestrian Intersection View Corridors Existing Trees to Preserve New Trees Focal Spot Public Art Key Important Vehicle Intersection Power Pedestal ARCHITECTURE PLANNING INTERIORS LANDSCAPE ARCHITECTURE AND ASSOCIATES, INC. .(970) 9 49-0257 F.(970)949-1080 www.zehren.comPO Box 1976,Avon, Colorado Z E H R E N Town of AvonJUly 13, 2021 Storage + Concessions (2,000sf) Restrooms (1,125sf) Picnic Area Parking Cabin Performance Stage Sports and Recreation Fields Parking Central Spine for Pedestiran & Service Access Parks and Rec Storage Widen Entrance + Bollards Parking and Events Staging Short Term Parking Parking Lake StreetParkingParking Walkway Seat Wall Views to South Views to South Xeric Garden under existing trees Concept 2SCALE: 1” = 20’ 0 20’10’40’ Union Pacific Railroad Service Plaza Lake Service Yard Trash Expansion Parking Shelter Shelter Temporary Service Access Parking Restrooms (1,125sf) Transformer 14’ x 12’ Focal Spot Golf Cart Access Ramp Plaza Carved Tree Service Apron New Gate ATTACHMENT c TOPO1 OF 1 Transformer 14’ x 12’ EAST NOTTINGHAM PARK IMPROVEMENTSSite Boundary Pedestrian Circulation Vehicle Circulation Important Pedestrian Intersection View Corridors Existing Trees to Preserve New Trees Focal Spot Art Key Important Vehicle Intersection Power Pedestal ARCHITECTURE PLANNING INTERIORS LANDSCAPE ARCHITECTURE AND ASSOCIATES, INC. .(970) 9 49-0257 F.(970)949-1080 www.zehren.comPO Box 1976,Avon, Colorado Z E H R E N Town of AvonJUly 13, 2021 Storage (2,000sf) Restrooms (2,250sf) Picnic Area Parking Cabin Performance Stage Sports and Recreation Fields Parking Central Spine for Pedestiran & Service Access Parks and Rec Storage Widen Entrance + Bollards Parking and Events Staging Short Term Parking Parking New Gate Lake StreetParking Parking Walkway Seat Wall Views to South Views to South Xeric Garden Concept 3SCALE: 1” = 20’ 0 20’10’40’ Union Pacific Railroad Service Plaza Lake Service Yard Trash Expansion Shelter Overlook Parking Service Access Service Apron Multi-Use Court (4,689sf) Parking Seat Wall Fit Courts (1,427sf) Focal Spot Golf Cart Access Ramp ATTACHMENT c TOPO1 OF 1 EAST NOTTINGHAM PARK IMPROVEMENTSSite Boundary Pedestrian Circulation Vehicle Circulation Important Pedestrian Intersection View Corridors Existing Trees to Preserve New Trees Focal Spot Art Key Important Vehicle Intersection Power Pedestal ARCHITECTURE PLANNING INTERIORS LANDSCAPE ARCHITECTURE AND ASSOCIATES, INC. .(970) 9 49-0257 F.(970)949-1080 www.zehren.comPO Box 1976,Avon, Colorado Z E H R E N Town of AvonJUly 13, 2021 Storage (2,000sf) Restrooms (1,125sf) Picnic Area Parking Cabin Performance Stage Sports and Recreation Fields Parking Central Spine for Pedestiran & Service Access Parks and Rec Storage Widen Entrance + Bollards Parking and Events Staging Short Term Parking Parking New Gate Lake StreetParking Walkway Seat Wall Views to South Views to South Xeric Garden Concept 4SCALE: 1” = 20’ 0 20’10’40’ Union Pacific Railroad Service Plaza Lake Service Yard Trash Expansion Shelter Service Yard Fit Courts (1,427sf) Parking Seat Wall Restrooms (1,125sf) Shelter Multi-Use Plaza (4,780sf)Future Concession Entry Sign Transformer 14’ x 12’ Focal Spot Golf Cart Access Ramp Service Access Service Apron ATTACHMENT c 970.748.4004 eric@avon.org TO: CASE Committee FROM: Eric Heil, Town Manager RE: Special Events 10 Year Vision Document DATE: May 18, 2021 THIS IS A DRAFT VISION OF THE STATUS OF SPECIAL EVENTS IN AVON IN 10 YEARS (2031) [NOTE: This document provides a narrative description of the scope and scale of Special Events in 10 years if existing special event concepts are nurtured and grown over the next 10 years. This document is intended to assist with visioning and planning the demands and impacts of Special Events in 10 years and beyond. THIS IS ONLY A DRAFT and intended to generate discussion and consideration of the scope and scale of Special Events in 10 years.] Avon Special Events 10 Year Vision: By 2031 an additional 500 hotel rooms and 300 condominiums available for short term rental have been constructed, increasing the Town’s bed base from have been constructed, increasing the Town’s bed base from 1,200 to 2,000. Alcohol sales are a significant revenue source for each event and are not projected in this draft. Improvements to Nottingham Park and the Pavilion will have been completed by end of 2022 season to have public restrooms that can accommodate [2,000-2,500] person events. Storage for alcohol, tents, mobile bars, etc., at field level along with the public restrooms have been constructed. The Old Town Hall site has been redeveloped with public restrooms, storage, and replacement of the retaining wall so that the entire main field and Pavilion Stage has cohesive design and appears as an “event venue”. The Metcalf Cabin will be either removed and that side redeveloped or the Metcalf Cabin will be remodeled to create a 2nd green room with shower that can be used for summer camp, community meeting space, or additional support space for private events on Terrace. There is little, if any , change to the parking lot or Parks garage area because both facilities are needed to serve the park. Signature Events: A Signature Event is defined as reoccurring event with strong association with Avon and typically with attendance of more than 3,000. The Avon community, Avon staff, and main field grass can accommodate a large signature event once every 2 to 3 weeks during the summer. Mid-June: Best of the West – Thursday evening opener at Pavilion, all day Friday, Saturday and Sunday, multiple stages in Town (Pavilion, Possibility Plaza, and Participating Private Restaurants/Bars), evening performances at multiple bars and restaurants (at least 4 separate locations), focused on original Colorado talent. This event includes song writing workshops and musician workshops in addition to performances . The talent mix will offer opportunities for up and coming Colorado bands along with cameo guest appearances by national talent with Colorado connections (Motet, String Cheese, Lettuce – it’s a long list). Attendance will be 5,000 to 8,000 per day. The atmosphere will offer a multi-day festival environment along with strong opportunity for musician camaraderie. Avon “owns” this week-end in the Vail Valley and is the primary attraction for Eagle County Residents as well as visitors to Avon, Beaver Creek and Vail. This Festival is free and without charge. The budget is $250,000 with a least $175,000 allocated to support talent. ATTACHMENT D Page 2 of 4 Return on Investment is high by filling Avon accommodations and providing a strong retail week-end for restaurants and other retail establishments early in the summer. “Best of the West” is a unique festival that has more of a musician focus than a typical concert festival and an inherently strong Colorado focus. Theme elements of “Taste of Colorado” are incorporated throughout with numerous opportunities for Colorado vendors. “Best of the West” is trademarked so that the name/title cannot be used by any other music festival. July 3: Salute to the USA – 25,000 in attendance. Budget is $275,000 (up from $200,000 to account for inflation). Salute to the USA is Avon’s premier Signature Event. Mid-June through August: Avon LIVE! – Avon LIVE! is a 12 day free concert series that “owns” Wednesday nights in Eagle County. The talent line-up features 5 national travelling acts ($5-$10k talent budget); 5 mid-tier national acts ($15-$25K talent budget) and 2 well known national acts ($40-$60k talent budget). Concerts are free. Budget is $300,000 ($237,000 talent, $5,000 per show for support - $60,000). Mid/Late July Early August: TBD – There is room on the Calendar and with regard to ability to maintain the Main Field in good shape to add one or two signature events from Mid-July to Mid-Late August. Avon’s success with the Heart and Soul Festival has generated competitive interest from Private Producers to create one or two signature events in this timeframe. Private producers have established and executed successful signature event(s) during this timeframe window. Town’s budget is $150,000 to 300,000 annually to support one or two signature events during this timeframe. Return on Investment is modest because accommodations would be filled for these week-ends without the event. Attendance is projected to be 5,000+ per day. These signature events are destination events that attract visitors who stay in Avon, Beaver Creek and Vail. [NOTE: Circus may conflict with this time frame or exceed capacity of field to accommodate both CIRCUS and a signature event in this period.] Sunday of Labor Day Week-end: End of Summer Party: Nottingham Lake is a multi-day “best beach party in the Rocky’s” event involving multiple bands playing on the Terrace as well as a headliner on the Avon Pavilion Main Stage. Water activities, cardboard regatta, multiple children’s activities, vendors on the main field and artist displays, all create a day long, family-friendly, beach- based carnival event that is the go to summer finale celebration for Eagle County residents and visitors. Attendance is 10,000 to 15,000. Budget is $100,000. Mid- September: Heart and Soul Festival: Avon’s namesake multiday festival begins on Friday evening and runs through Sunday evening. Music performance are on the Pavilion Stage and evening performances are coordinated with a minimum of four separate bar venues in Avon. Attendance is 7,000 to 10,000. Well known national acts that are Colorado fan based appropriate are booked. In addition to Eagle County residents, the festival targets ATTACHMENT D Page 3 of 4 festival goers of all ages as well as front range college students who are ready for a week- end mountain road-trip 4-5 weeks into their fall semester. This is a ticketed event that is sold-out in advance. Daily tickets are $100 or more and multi-day festival tickets are $200 or more. Budget is $1,300,000 with $900,000 to $1,000,000 available for talent. This festival operates in the black between ticket sales and alcohol sales. Return on Investment is very strong by filling Avon’s accommodations for a long week-end in mid-September as well as creating another “super-retail” week-end for Avon restaurants and businesses. Heart and Soul Festival has national recognition and is a destination event for visitors. Early October: Man of the Cliff: Man of the Cliff is a multi-day event that draws 5,000+ attendance per day. [More Description Needed] Other Events: There are numerous other reoccurring events that are well-established and provide a variety of activities and attractions for the Avon community and Avon visitors. [More Description Needed] Fridays: Lakeside Films: Family friendly films are shown in Nottingham Park on Friday evenings in July and August. Local bands are set-up on a portable riser stage in front of the screen. Attendance is 700-1,000. This is a free event and a BYOB event. A selection of food vendors is available. Sundays: Sunset LIVE!: This event regularly occurs on Sunday evenings from Mid-June through Labor Day week-end. The event has expanded to Thursday and Saturday evenings when not conflict with Terrace Shows. Talent is a mixture of local and regional performers. Avon conducts alcohol sales which helps to support the event. The premise area is Terrace and the adjacent lawn area. There are typically 25-40 Sunset LIVE! performances during the summer. Cost is $40,000. Terrace Shows: A series of 6 to 10 ticketed shows are held on the Terrace during the summer, primarily on Thursday or Saturday evenings. Seated capacity is 250-300. The Terrace is ideally suited for intimate performances of jazz shows and talented singer/performers. The Terrace Shows have a strong relationship with Vail Jazz and Vilar as an alternate venue option. Ticket pricing is $35-$60 and talent budget is $9,000 to $12,000. Terrace Shows are held on Thursday or Saturday nights to fit opportunities to book talent and properly market these shows. Art Shows: 2-3 Art Shows occur over the course of the summer. Each Art Show includes 40-100 booths. Winter: [Winter events need to be added. This event season is new, needs some brain work as well as input from our accommodations industry.] ATTACHMENT D Page 4 of 4 November: Thanksgiving: [Avon has secured a re-occurring concert event on Friday or Saturday of Thanksgiving week-end that has strong Return on Investment to promote occupancy during the early season opening of Beaver Creek. Attendance is 2,000 to 3,000 people.] Pre-Holiday Holiday Tree (aka Christmas Tree) Lighting Event. Avon Community Shopping Night. [More description and definition are needed]. New Year’s Eve Avon has a fireworks display event that is coordinated with Beaver Creek. Cost is $10,000. Holidays & January Sat. Ice Skating on Nottingham Lake is reinforced with live music on the Terrace on Saturday evenings. Winter Event: Avon has several winter events, such as ice sculpture displays on the Main Street Mall . [More description and definition are needed]. Spring Break: Avon has secured a multi-day Signature Event during the spring break period in March. This event draws 3,000 to 5,000 per day. End of Season: Apres Avon in April: A mid-tier national act performs at Possibility Plaza during the Apres Ski timeframe from 4 to 6pm on the last 2 or 3 Saturdays of the Beaver Creek ski season. Attendance is 2,000. Budget is $75,000 ($25,000 per performance). Return on Investment is strong and event draws destination visitors to Avon for these week-ends which otherwise have reduced occupancy rates. This only includes music events and performances on the stage and does not include a variety of recreational events that also occupy the calendar from June through September. This does not include events or activities beyond Nottingham Park. Thank you, Eric ATTACHMENT D 970-300-4373 pwisor@garfieldhecht.com TO: Honorable Mayor Smith Hymes and Council members FROM: Paul Wisor, Town Attorney RE: Ordinance 21-05 – Concerning the Management of Plastic Products DATE: July 6, 2021 SUMMARY: Proposed Ordinance 21-05 seeks to codify certain efforts to manage the consumption of plastics with the Town of Avon. First, Ordinance 21-05 amends Section 8.38.020 of the Avon Municipal Code (the “Code) to alter the definition of “Reusable Bag” to ensure reusable bags utilized in Avon are truly reused. Second, Ordinance 21-05 prohibits the use of expanded polystyrene food containers by retail food establishments. This ban on expanded polystyrene takes effect January 1, 2024. Ordinance 21-05 is presented to Council in light of the passage of HB-21-1162, which is discussed further below. BACKGROUND: In order to fully understand the purpose for Ordinance 21-05, it is necessary to review existing state law, previous ordinances considered by Council as well as legislation recently passed by the Colorado General Assembly. Local Preemption - §25-17-104, C.R.S. Since 1989, Colorado law provided “no unit of local government shall require or prohibit the use or sale of specific types of plastic materials or products or restrict or mandate containers, packaging, or labeling for any consumer products.” This prohibition has prevented most municipalities from regulating plastics within their respective jurisdictions. Plastic Bags Notwithstanding the prohibition found in §25-17-104, C.R.S., in October of 2017, the Town Council adopted Ordinance 17-08, which promoted the use of reusable bags by prohibiting disposable plastic bags and requiring a charge for the use of disposable paper bags at grocers and other retailers. Town Council adopted Ordinance 17-08 in order to address the environmental and health problems associated with such use, and would relieve Town taxpayers of the costs incurred by the Town in conjunction therewith. Ordinance 17-08 permits and encourages the use of reusable bags as an alternative to disposable plastic bags. Pursuant to Ordinance 17-08, Section 8.38.020 of the Avon Municipal Code defines “Reusable Bag” as follows: 1. Is designed and manufactured to withstand repeated uses over a period of time. 2 2. Is made from a material that can be cleaned and disinfected regularly; 3. Is at least two and one-fourth (2.25) mils thick if made from plastic; and 4. Has the capability of carrying a minimum of eighteen (18) pounds. Recently, the Town learned a local retailer is proposing to use a plastic bag that purportedly meets the criteria above. While the plastic bag in question meets the letter of the law, it does not meet the spirit or intended purpose of 17-08 as the plastic bag would likely not be considered reusable by most consumers and will likely be discarded after a single use. Therefore, Town Council provided direction to amend the Avon Municipal Code so plastic bags will not qualify as a “Reusable Bag.” Expanded Polystyrene. Since 2017, taking action to reduce the use of polystyrene-based disposable food service ware by food vendors in Avon has been a priority of Council. Reduction of polystyrene is also an identified goal with the Page 2 of 3 Climate Action Plan for the Eagle County Community. In 2017 Council held two work sessions on the topic and conducted outreach to the Avon business community. Council renewed its efforts in 2019 by holding another working session and conducting additional outreach to the business community. Ultimately, Council adopted Ordinance 19-11, which would have banned the use of expanded polystyrene by food vendors serving prepared food. Ordinance 19-11 was condition on the passage of SB 20-252, which would have removed the prohibition on local government regulation of plastics found in §25-17-104, C.R.S. The General Assembly ultimately failed to pass SB 20-252, and Ordinance 19-11 did not take effect. HB 21-1162 In light of the failure of SB 20-252, HB 21-1162 was introduced during the 2021 legislative session. Though it took many different forms during the legislative process, the General Assembly approved HB 21-1162, which achieved three main goals: 1) it removes the prohibition on local government regulation of plastics beginning July 1, 2024; 2) phases in a plastic bag fee in 2023 and bans plastic bags in 2024; and 3) bans the use of expanded polystyrene food containers in 2024 with an indefinite grace period for polystyrene products in the possession of retail food establishments as of January 1, 2024. ORDINANCE 21-05: Ordinance 21-05 amends the Town’s definition of “Reusable Bag” as part of its effort to limit plastic bags in Avon. Specifically, Ordinance 21-05 adopts the definition of Reusable Bag found in HB 21-1162 which provides: • Is designed, manufactured, for at least one hundred twenty-five uses • Can carry at least twenty-two pounds over a distance of one hundred seventy-five feet; • Has stitched handles; and • Is made of cloth, fiber or other fabric or a recycled material such as polyethylene terephthalate. It is believed this revised definition will guard against the use of bags that may technically have fit the previous definition of “Reusable Bag” but which bags would likely have been treated as regular plastic bags and discarded after one use. Second, Ordinance 21-05 adopts the provisions found in HB 21-1162 which prohibits retail food establishments from using expanded polystyrene to serve ready to eat food. “Ready-to-eat” food means food that is cooked or otherwise prepared in advance for immediate consumption. This provision will take effect January 1, 2024. Beginning July 1, 2024, the Town may impose more stringent restrictions than set forth in HB 21-1162. FINANCIAL CONSIDERATIONS: There is no financial impact to the Town. RECOMMENDATION: Staff recommends adoption of Ordinance 21-05. PROPOSED MOTION: Ordinance 21-05: “I move to approve on Second Reading Ordinance 21-05, amending certain portions of Section 8.38.020 of the Code, enacting Chapter 8.50 – Prohibition On Use of Expanded Polystyrene Food Containers.” Paul Wisor ATTACHMENTS: Ordinance 21-05 Ord 21-05 Management of Plastic Products [July 13, 2021] Page 1 of 7 ORDINANCE NO. 21-05 CONCERNING THE MANAGEMENT OF PLASTIC PRODUCTS WHEREAS, pursuant to §31-15-103 and §31-15-104, C.R.S. 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, in October of 2017, the Town Council adopted Ordinance 17-08, which promoted the use of reusable bags by prohibiting disposable plastic bags and requiring a charge for the use of disposable paper bags at grocers and other retailers which would help address the environmental and health problems associated with such use, would relieve Town taxpayers of the costs incurred by the Town in conjunction therewith, and would be in the best interest of the public health, safety and welfare of the citizens of the Town; and WHEREAS, in promoting the use of reusable bags, Ordinance 17-08 specifically defines the term “reusable bag” as a bag that: 1. Is designed and manufactured to withstand repeated uses over a period of time. 2 2. Is made from a material that can be cleaned and disinfected regularly; 3. Is at least two and one-fourth (2.25) mils thick if made from plastic; and 4. Has the capability of carrying a minimum of eighteen (18) pounds. WHEREAS, an Avon retailer has proposed introducing a new type of reusable plastic bag to be provided to patrons at no cost to carry purchased items; and WHEREAS, the proposed new reusable plastic bags are made of 2.25 mil thick plastic, purportedly can be reused up to 125 times, carry 18 pounds, and can be cleaned and disinfected regularly in compliance with Ordinance 17-08; and WHEREAS, Town Council and Town staff have examined the proposed resusable plastic bags, and have determined such bags are unlikely to be reused and are likely to be treated as traditional plastic bags, including being disposed of in a manner that creates they precise environmental and health impacts Ordinance 17-08 seeks to avoid; and WHEREAS, the Town Council finds that amending the definition of “reusable bag” to more clearly clarify such bags shall not be disposed of like traditional plastic bags will achieve the overall goals of Ordinance 17-08 and will promote the health, safety and general welfare of the Avon community; and WHEREAS, polystyrene foam is a petroleum-based, lightweight plastic material commonly used as food service ware by retail food vendors operating in the Town of Avon; and Ord 21-05 Management of Plastic Products [July 13, 2021] Page 2 of 7 WHEREAS, polystyrene foam, which means and includes blown polystyrene and expanded and extruded foams (sometimes incorrectly called StyrofoamTM, a Dow Chemical Company trademarked form of polystyrene foam insulation) that are thermoplastic petrochemical materials utilizing a styrene monomer and processed by any number of techniques, including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, foam molding, and extrusion-blow molding (extruded foam polystyrene), has also become a problematic environmental pollutant given its non-biodegradability and nearly non-reusable nature; and WHEREAS, there is no economically feasible means of recycling polystyrene foam locally; and WHEREAS, polystyrene foam is a common pollutant that fragments into small, non- biodegradable pieces that are difficult to clean up and are ingested by aquatic life and other wildlife; and WHEREAS, effective ways to reduce the negative environmental impacts of disposable food service ware include reusing or recycling food service ware and using compostable materials made from renewable resources such as paper, cardboard, corn starch, potato starch, and/or sugarcane; and WHEREAS, the Town desires to restrict the use by food vendors of polystyrene foam disposable food service ware; and WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Town Council desires to comply with the requirement of Section 6.5(d) of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence 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, has determined to take final action on this Ordinance prior to concluding the public hearing on second reading. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Amendment to Section 8.38.020 – Definition of Reusable Bag. Section 8.38.020 is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: Reusable bag: a bag that: 1. Is designed, manufactured, for at least one hundred twenty-five uses to withstand repeated uses over a period of time. Ord 21-05 Management of Plastic Products [July 13, 2021] Page 3 of 7 2. Is made from a material that can be cleaned and disinfected regularly Can carry at least twenty-two pounds over a distance of one hundred seventy-five feet; 3. Is at least two and one-fourth (2.25) mils thick if made from plastic Has stitched handles; and 4. Has the capability of carrying a minimum of eighteen (18) pounds Is made of cloth, fiber or other fabric or a recycled material such as polyethylene terephthalate. Section 3. Addition of Chapter 8.40 to Title 8 of the Avon Municipal Code. Chapter 8.50, “Prohibition on Use of Expanded Polystyrene Food Containers” is added to Title 8, “Health and Safety,” of the Avon Municipal Code to read as set forth in Exhibit A: Addition of Chapter 8.50 to Title 8 of the Avon Municipal Code, attached hereto. 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 days after the date of final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 7. No Existing Violation Affected. Nothing in this Ordinance shall be construed to release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing which may have been incurred or obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall be treated and held as remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and for the purpose of sustaining any judgment, decree or order which can or may be rendered, entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or declaring such penalty or liability or enforcing such right, and shall be treated and held as Ord 21-05 Management of Plastic Products [July 13, 2021] Page 4 of 7 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. 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 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 21-05 Management of Plastic Products [July 13, 2021] Page 5 of 7 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on June 22, 2021 and setting such public hearing for July 13, 2021 at the Council Chambers of the Avon Municipal Building, located at One Hundred Mikaela Way, Avon, Colorado. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ADOPTED ON SECOND AND FINAL READING on July 13, 2021. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Paul Wisor, Town Attorney Ord 21-05 Management of Plastic Products [July 13, 2021] Page 6 of 7 EXHIBIT A: ADDITION OF CHAPTER 8.50 TO TITLE 8 OF THE AVON MUNICIPAL CODE CHAPTER 8.50 PROHIBITION ON USE OF EXPANDED POLYSTYRENE FOOD CONTAINERS Section 8.50.010 Definitions. Section 8.50.020 Prohibited use of expanded polystyrene food containers. Section 8.50.030 Exemptions. Section 8.50.040 Violation and Penalties. 8.50.010 DEFINITIONS. For the purposes of this chapter, the following terms have the following meanings: (a) “Container” means a receptacle upon which or inside which food may be placed for consumption, whether or not the receptacle can be fully closed. Container includes hinged food containers, plates, bowls, cups, and trays. (b) “Expanded Polystyrene” means and includes blown polystyrene commonly known as called StyrofoamTM, and any other expanded or extruded foam consisting of thermoplastic petrochemical materials utilizing a styrene monomer and processed by techniques that may include: 1) For expandable bead polystyrene, fusion of polymer spheres; 2) Injection Molding; 3) Foam molding; and 4) For extruded foam polystyrene, extrusion blow molding. (c) “Food” means any raw, cooked, or processed edible substance, ice, beverage, or indgrediebt used or intended for use or for sale, in whole or in part, for human consumption. Food does not include a drug, as that term is defined in §25-5-402(9), C.R.S., as amended. (d) “Ready-to-eat” means food that is cooked or otherwise prepared in advance for immediate consumption. (f) "Retail food establishment” has the same meaning as set forth in §25-4-1602(14), C.R.S., as amended, except retail food establishment does not include farmers markets and roadside markets as described in §25-4-1602(14)(j), C.R.S., as amended. (g) “School” has the same meaning as set forth in §23-3.9-101(6), C.R.S., as amended. 8.50.020 Prohibited use of expanded polystyrene food containers. (a) Except as provided in subsection (b), effective January 1, 2024, a retail food establishment shall not distribute an expanded polystyrene product for use as a container for ready-to-eat food in the Town. (b) If a retail food establishment purchased expanded polystyrene products before January 1, 2024, the retail food establishment may distribute any remaining inventory of the expanded polystyrene products then purchased for use as containers for ready-to-eat food in the Town until the inventory is depleted. Ord 21-05 Management of Plastic Products [July 13, 2021] Page 7 of 7 8.50.030 EXEMPTIONS. The following distribution of polystyrene product shall be exempt from this Section 8.50: (a) Distribution of a polystyrene product that is regulated as a drug, medical device or dietary supplement by the Food and Drug Administration n the United States Department of Health and Human Services under the “Federal Food, Drug and Cosmetic Act 21 U.S.C. Sec 321 est seq., as amended; and (b) Distribution of a polystyrene product by a school. 8.50.040 VIOLATIONS AND PENALTIES. Any person violating any of the provisions of this Chapter shall be deemed to have committed a civil infraction for each and every day or portion thereof during which any infraction is committed, continued or permitted and shall be subject to the penalties contained in Chapter 1.09 of this Code. Page 1 of 3 Staff Review Recommendation TO: Honorable Mayor Smith Hymes and Council members THRU: Matt Pielsticker, AICP, Planning Director FROM: David McWilliams, AICP, Town Planner RE: PUBLIC HEARING on Ordinance 21-09 Approving Code Text Amendments to Chapter 7 of the Avon Municipal Code DATE: June 30, 2021 STAFF REPORT OVERVIEW: This staff report contains one application for consideration by the Town Council: Code Text Amendment (“CTA”) for various sections of Avon Development Code (“ADC”). SUMMARY: Town Council directed staff to initiate various CTAs and staff included other sections in need of modification. Best practice includes a yearly review of the ADC to determine if updates or edits are necessary. Attached to this report is draft Ordinance 21-09 with CTA language included, with strike-out indicating language to be deleted and underline indicating language to be adopted. LIST OF PROPOSED CHANGES: The following bullets, with associated ADC sections, are discussed in this report. Additional sections are included in the Ordinance due to removal of cross-references. • Development Plan and Design Review - 7.16.080 and 7.16.090 • Public Facility District wording - 7.20.080(e) • Industrial – Commercial Employment Zone District Wording - Table 7.20 – 13 • Employee housing mitigation clarification - 7.20.100 • Parking and loading language - Table 7.28-2 • Fence Standards – 7.28.080(b) • Exterior Lighting - 7.28.090 • Sign Code - digital signs and window signs- 7.34 PROCESS: The Planning and Zoning Commission (“PZC”) reviews CTA applications and provides a recommendation to Council after conducting a public hearing. Council acts upon CTA applications through Ordinance, after conducting first and second readings and a public hearing. PZC ACTION: After a work session and a public hearing, staff updated the language of certain sections due to feedback. The PZC voted unanimously (6-0) to recommend Town Council approve the CTA. Since that time, staff included additional sections containing cross-references for modification. Planning & Zoning Public Hearing Recommendation to Council Town Council First and Second Reading - Ordinance Page 2 of 3 RECOMMENDATION: I recommend that Town Council approve second reading of Ordinance 21-09. RECOMMENDED MOTION: “I move to approve Second Reading of Ordinance 21-09, approving Code Text Amendments to Chapter 7 of the Avon Municipal Code.” Design Review into Development Plan- 7.16.080 and 7.16.090: This change incorporates all relevant design review procedures within one section. The design review procedure is slated to be removed because it is never a process independent from development plan. Formatting is also now consistent with other chapters, with listed purpose statements. Combining the sections makes the ADC more approachable. Staff kept the majority of the Development Plan section intact and added applicable language from the Design Plan purposes and review criteria. This way, all the relevant information from the two sections is captured in one. Public Facility District wording 7.20.080(e): This proposed modification clarifies that public employee housing is intended within the district. “Government employee housing and Community Housing” was added to Table 7.24-1, Allowed Uses in 2019 and this modification reinforces that point. This change further clarifies the intent of the Town to develop housing on PF zoned land (Swift Gulch site). Light Industrial – Commercial Wording – Table 7.20 - 13: Accessory Dwelling Units (“ADU”) are a specific type of development, which is tied to a primary residence. Including the phrase “ADU” in this section is contrary to its universally understood definition. Also, staff removed the word “Employment” from the Table name, as it only appears in this table. Parking and loading language - Table 7.28-2: Current language is unclear for parking requirements of multi-family development (i.e. 2 bedroom requirements) and needs to be continually clarified by staff to potential applicants. Based upon discussion with the PZC, staff proposes additional “Dwelling, Multi-Family (Short-Term Rental Overlay) with Parking Management Plan” and “Accommodation” categories to differentiate and address common development types. Multi-family construction is now proposed to be broken down by bedroom count, removing the 2,500 sq. ft. threshold as directed by the PZC. Exterior Lighting - 7.28.090: This amendment ties the lighting code from Chapter 15.30 (building) to Chapter 7 (development). This will make enforcement easier during the application process and during any code compliance cases, but policy remains the same. Fence Design Standards – 7.28.080(b): The PZC recommendation to Council included the following redline to the Wildridge fencing material section: (i) Fence material shall be wood and no more than four (4) feet in height. Architectural mesh is allowed if it allows for small game to move through. CODE TEXT ANALYSIS RECOMMENDED MOTION Page 3 of 3 Pursuant to the direction received at first reading, staff has removed the architectural (screen) mesh recommendations from PZC. This will result in the continued practice of bringing Alternative Equivalent Compliance (AEC) applications to PZC if architectural mesh or chicken wire are proposed to be included in fence applications that include . I am suggesting inclusion of the other recommended changes to the Wildridge Fencing Section, which include changes to the maximum fenced area and setbacks from property lines. See Section 16 of the Ordinance for the remaining changes to the fencing standards. Sign code update- illuminated signs and window signs- 7.34: Town Council directed staff to limit digital signs (for example, menu boards) on private property. Currently, “digital display” signs are permitted as freestanding or wall-mounted signs on arterial streets. The change allows only the Town of Avon to install them, for government use. Also, a small change in window signs is proposed to clarify allowances for illuminated signs. According to the ADC Sec. 7.16.040(c), Review Criteria, the Town Council shall use the following review criteria as the basis for recommendations and decisions on applications to amend the text of the Development Code: 1. The text amendment promotes the health, safety and general welfare of the Avon community; 2. The text amendment promotes or implements the goals and policies of the Avon Comprehensive Plan; 3. The text amendment promotes or implements the purposes stated in the Development Code; or 4. The text amendment is necessary or desirable to respond to changed conditions, new planning concepts or other social or economic conditions. Staff Response: The Application addresses Town needs for administrative ease and maintains the current aesthetic of the Town better than the current ADC. It promotes the health, safety and welfare of the community and implements goals and policies of the Comprehensive Plan and Avon Community Housing Plan. Comprehensive Plan goals and policies relating to the CTA are below: Goal A.1: Promote a compact community form. Policy F.1.8: Promote Town Center development that minimize automobile travel. Goal G.3: Discourage air, water, light, and noise pollution. Policy G.3.2: Enforce the use of “Dark Sky” compliant fixtures. The CTA implements the ADC purposes, including (l): “Promote architectural design which is compatible, functional, practical and complimentary checking to Avon's sub-alpine environment”. Attachment: Ordinance 21-09 REVIEW CRITERIA: CODE TEXT AMENDMENT Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 1 of 17 ORDINANCE NO. 21-09 APPROVING CODE TEXT AMENDMENTS TO CHAPTER 7 OF THE AVON MUNICIPAL CODE 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, Town Council initiated a code text amendment application for changes to sections of Chapter 7 including: Violations - §7.04.160; Development Review Procedures and Review Authority - Table 7.16-1; General procedures and requirements - §7.16.020(c)(2); Design Review and Development Plan - §7.16.080 and §7.16.090; Review Procedures - §7.16.150; Dimensions for the Town Center District - Table 7.20-9; Public Facilities (PF)- §7.20.080(e); Light Industrial and Commercial Employment District - Table §7.20-13; Employee housing mitigation - §7.20.100; Restaurant - §7.24.060(g)(1); Off-Street Parking - Table §7.28-2; Electric Vehicle Parking - §7.28.020(g)(iv); Alternate Screening - 7.28.060(d)(4); Fence Design Standards - §7.28.080(b); Exterior Lighting - §7.28.090(c)(6); Definitions - §7.34.010(b); Permitted Signs Generally - §7.34.010(d); Lighting - §7.34.010(e)(5); Master Sign Programs - §7.34.010(h)(2); Prohibited signs - §7.34.010(i); and WHEREAS, the code text amendments are in conformance with Avon Comprehensive Plan Goals A.1 and 3.4, and Policies F.1.8 and G.3.2; and WHEREAS, the code text amendments will help implement the Avon Community Housing Plan; and WHEREAS, the Town Council finds that the code text amendments 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 requirement of Section 6.5(d) of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence 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, has determined to take final action on this Ordinance prior to concluding the public hearing on second reading. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 2 of 17 Section 2. Amendment to Chapter 7.04.160 - Violations. Chapter 7.04.160 is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: (c) Transfer or Sale of Interest Prior to Final Subdivision Approval. It is unlawful for any person to transfer or sell or agree to sell any lot, tract, parcel, site, separate interest (including a leasehold interest), condominium interest, timeshare estate or any other division within a subdivision within the Town until such subdivision has been approved in writing by the Town Council and a plat thereof recorded in the office of the Eagle County Clerk and Recorder. A written agreement to sell a condominium unit prior to final subdivision approval shall not constitute a violation of this Section if: the written agreement is expressly conditioned upon approval of the Town Council of the final subdivision plat and all related documents, the preliminary plan has been approved by the Town Council, the building or property to be subdivided has received design review development plan approval (if applicable), the written agreement provides that the prospective buyer or purchaser is entitled to terminate the written agreement and is entitled to receive the full amount of any monies deposited and the form of the written agreement has received approval by the Town Attorney prior to using the form of such written agreement with a prospective purchaser or buyer. Section 3. Amendment to Table 7.16-1 - Development Review Procedures and Review Authority. Table 7.16-1 is hereby amended to read as follows with strike-out indicating language to be deleted: Procedure Notice Requirements* Director PZC TC Comprehensive Plan Amendment (§7.16.030) R H-R H-D Code Text Amendment (§7.16.040) R H-R H-D Rezoning (§7.16.050) M R H-R H-D Planned Unit Development (§7.16.060) Administrative PUD D A Minor PUD Amendment M R H-R H-D Lot Split PUD Amendment for Wildridge PUD M R H-R H-D Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 3 of 17 Major PUD Amendment M R H-R H-D Preliminary PUD M R H-R H-D Final PUD M R H H-D Subdivision (§7.16.070) Administrative Subdivision D A Minor Subdivision D A Preliminary Plan M R H-R H-D Final Plan M R H-D Development Plan (§7.16.080) Minor D or R H-D A Major R H-D A Major in Town Core R H-R H-D Design Review (§7.16.090) D or R H-R or H-D H-D or A Special Review Use (§7.16.100) M R H-D A Variance (§7.16.110) M R H-D A Alternative Equivalent Compliance (§7.16.120) R R-D or R A or R-D Right-of-way Vacation (§7.16.130) M R H-D Vested Property Right (§7.16.040) M R H-R H-D Location, Character and Extent (§7.16.150) R H-D A Sign Plan (§7.16.160) Minor D or R H-D A Major R H-D A Appeal (§7.16.160) H-D Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 4 of 17 Annexation (§7.36) M R H-R H-D 1041 Permit (§7.40) R H-R H-D Historic and/or Cultural Preservation Designated (§7.50) H-D Section 4. Amendment to Chapter 7.16.020(c)(2) – General procedures and requirements. Chapter 7.16.020(c)(2) is hereby amended to read as follows with strike-out indicating language to be deleted: Referral to Other Agencies. Development applications may be referred to other agencies for review and comment. The Director shall attempt to identify appropriate referral agencies and shall consider the comments from referral agencies as part of the staff review and report. The Planning and Zoning Commission and Town Council may determine that referral of a development application to an agency for review and comment is appropriate where such referral agencies may provide comments relevant to evaluating the development application for compliance with the review criteria. Referral of development applications to other agencies shall provide a minimum time frame for review and comment of fourteen (14) days for development plans, design review, variances, amendments to text of the Development Code and minor subdivisions; and twenty-one (21) days for preliminary subdivision, planned unit development, planned unit development amendments, rezoning and 1041 permits; however, the time frame for review and comment may be extended if the development application presents technical issues which require additional review, if additional information is provided by the applicant or the application is modified. Referral agencies may include, but are not limited to: Section 5. Amendment to Chapter 7.16.080 - Development plan. Chapter 7.16.080 is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: The purpose of the development plan review process is to ensure compliance with the development and design standards and provisions of this Development Code. It is designed to encourage quality development reflective of the goals, policies and objectives of the Comprehensive Plan. (a) Purpose. The general purpose of the development plan review process is to ensure compliance with the development and design standards of the Development Code prior to the issuance of a building permit or concurrent with other required permits and to encourage quality development reflective of the goals and objectives of the Avon Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 5 of 17 Comprehensive Plan. Specific purposes of development plan review include, but are not limited to the following: (1) To prevent excessive or unsightly grading of property that could cause disruption of natural watercourses or scar natural landforms; (2) To ensure that the location and configuration of structures, including signs and signage, are visually harmonious with their sites and with surrounding sites and structures and that there shall be conformance to the Comprehensive Plan of the Town; (3) To ensure that the architectural design of structures and their materials and colors are visually harmonious with the Town's overall appearance, with natural and existing landforms and with officially approved development plans, if any, for the areas in which the structures are proposed to be located; and (4) To ensure that plans for the landscaping of property and open spaces conform with adopted rules and regulations and to provide visually pleasing settings for structures on the same site and on adjoining and nearby sites. (ab) Applicability. A development plan shall be required for all new development and any modification to an existing development or development plan. (bc) Development Plan Categories. Categories of development plans are established and defined as follows for the purpose of determining the appropriate development plan review procedure: (1) Major Development Plan. Major development plans include all new building construction over six hundred (600) square feet; (2) Minor Development Plan. Minor development plans include the following: (i) All new building construction six hundred (600) square feet or less; (ii) Modifications to Dumpster locations; (iii) Screen wall modifications; (iv) Landscape modifications, including but not limited to removal of existing vegetation and addition of new vegetation; (v) Deck modifications, including but not limited to additions, new construction and materials or color modifications; (vi) Mechanical equipment modifications; (vii) Modifications to the exterior of an existing building, including but not limited to windows, doors, minor architectural details, colors and materials; (viii) Modifications to approved development plans which result in a ten-percent or less increase to lot coverage; ten-percent or less increase to building height; ten- percent or less increase to the amount of square footage of a land use or structure and does not result in a change in the types of uses in the project; (ix) Modifications to approved development plans which do not change the character of the approved design; and Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 6 of 17 (x) Other similar changes to a structure or property that do not significantly impact the site layout or design of a building. (cd) Review Procedures. The general review procedures described in Section 7.16.020, General procedures and requirements, shall apply to development plan applications. All development plan applications shall also comply with the procedures listed in Section 7.16.090, Design review. Specific additions and modifications to the general review procedures are identified below. (de) Notice and Hearing. PZC shall review and render a decision or recommendation on the development plan application after conducting a public hearing. Town Council shall conduct a public hearing when reviewing a Development Plan applicable in the Town Core. Notice of the public hearing shall be published and posted in accordance with Subsection 7.16.020(d)(1) and mailed notice is not required. The decision of PZC may be appealed to the Town Council pursuant to Section 7.16.160, Appeal. The Director shall not conduct a public hearing for administrative review and decision on development plan applications. (ef) Review Authority. The review authority for a development plan application shall be determined by the subdivision category. (1) Major Development Plan. The Director shall review and provide a recommendation to the PZC on all major development plan applications. The PZC shall render the final decision on a major development plan, unless the application is located within the Town Core. The decision of the PZC may be appealed to the Town Council pursuant to Section 7.16.160, Appeal. If an application is located within the Town Core, the Director shall review and provide a recommendation to the PZC. The PZC shall review and provide a recommendation to the Town Council. The Town Council shall render the final decision on a major development plan within the Town Core. (2) Minor Development Plan. The Director shall review and render decisions on all minor development plan and minor sign plan applications. The decision of the Director may be appealed to the Town Council pursuant to Section 7.16.170, Appeal. The Director may refer to the PZC any plan application that the Director determines warrants review by the PZC. (fg) Review Criteria. The following review criteria shall be considered as the basis for a decision on development plan applications: (1) Evidence of substantial compliance with the purpose of the Development Code as specified in Section 7.04.030, Purposes; (2) Evidence of substantial compliance with Section 7.16.090, Design review; (3) Consistency with the Avon Comprehensive Plan The design conforms with the Avon Comprehensive Plan and other applicable, adopted plan documents; (4) Consistency with any previously approved and not revoked subdivision plat, planned development or any other precedent plan or land use approval for the property as applicable; (5) Compliance with all applicable development and design standards set forth in this Code, including but not limited to the provisions in Chapter 7.20, Zone Districts and Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 7 of 17 Official Zoning Map, Chapter 7.24, Use Regulations and Chapter 7.28, Development Standards; and (6) That the development can be adequately served by city services, including but not limited to roads, water, wastewater, fire protection and emergency medical services.; and (7) The development design relates conforms with the character of the surrounding community; or, where redevelopment is anticipated, relates the development to the character of Avon as a whole. (gh) Expiration. A development plan approval expires pursuant to Subsection 7.16.020(h). (hi) Revocation. Approved site plan documents shall be binding upon the applicants and their successors and assigns. No permit shall be issued for any building or structure or use that is not in accord with the approved documents or any approved modifications thereto. The construction, location, use or operation of all land and structures within the site shall conform to all conditions and limitations set forth in the documents. No structure, use or other element of approved design review documents shall be eliminated, altered or provided in another manner unless an amended site plan is approved. Any deviation from the approved development plan as approved shall be grounds for revocation of the development plan approval. Section 6. Amendment to Chapter 7.16.090 - Design review. Chapter 7.16.090 is hereby deleted in its entirety. Section 7. Amendment to Chapter 7.16.150(b) – Review procedures. Chapter 7.16.150(b) is hereby amended to read as follows with strike-out indicating language to be deleted: Applications for location, character and extent shall follow the general review procedures set forth in Section 7.16.020, General Procedures and Requirements. Applications for location, character and extent may be initiated by the owner or the governmental body having jurisdiction over the public facility. Applications for location, character and extent may be combined with other application procedures and submittal requirements, including but not limited to development plan, design review and subdivision. The failure of the PZC and Council to act within sixty (60) days from and after the date of official submission of a complete application to the Town shall be deemed approval of such application. Section 8. Amendment to Table 7.20-9 Dimensions for the Town Center District. Table 7.20-9 is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: Table 7.20-9 Dimensions for the Town Center District Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 8 of 17 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) n/a n/a 50 [5] 20 0 [1, 4] 7.5 [2] 10 [3] 80 [1] Infill development shall match the smallest setback of existing, adjacent structures. [2] TC abutting a residential district shall match the side yard setback standards of that district. [3] When abutting a public street, alley or public right-of-way. The rear setback for TC abutting a residential district shall be 20 feet, regardless of the location of any street, alley or ROW. [4] Nonresidential development that incorporates public space such as a plaza or courtyard into the building design may increase the front setback by up to 20 feet to accommodate that area up to 40% of the front building line. [5] May be increased to 80% if employee housing mitigation is provided in accordance with Section 7.20.100. Section 9. Amendment to Chapter 7.20.080(e) - Public Facilities (PF). Chapter 7.20.080(e) is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: Public Facilities (PF). The PF district is intended to provide sites for public uses such as community centers, police and fire stations, and governmental facilities, government employee housing, and Community Housing. The uses permitted in this district are identified by location in the Avon Comprehensive Plan. Unless otherwise set forth in the Avon Comprehensive Plan, the following dimensional requirements shall apply for the Public Facility (PF) zone district: Section 10. Amendment to Table 7.20-13 Dimensions for the Light Industrial and Commercial Employment District. Table 7.20-13 is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: Table 7.20-13 Dimensions for the Light Industrial and Commercial Employment District Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 9 of 17 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 Mixed Use or IC 21,780 sq. ft. 100 50 20 25 7.5 10 48 See footnote [1] Community Housing 21,780 sq. ft. 100 50 20 25 7.5 10 48 10 du/acre [2] [1] Accessory dDwelling units which are accessory to the commercial use are permitted as a special review use pursuant to Section 7.16.100. The maximum density residential in a mixed use project shall be no more than four (4) ADU per acre; provided, however, on lots located on less than one (1) acre in size, the Maximum Residential shall be four (4) ADU per lot. [2] Additional Water Rights Dedication. The dedication of additional water rights may be required as a condition to approval of development which exceeds the meter size assigned to the property. The Town may accept cash-in-lieu of dedication in accordance with a water rights dedication impact fee schedule adopted by ordinance if the Town has adequate availability of surplus water rights as determined by the Town Council in its sole discretion. Section 11. Amendment to 7.20.100 - Employee housing mitigation. Chapter 7.20.100 is hereby amended to read as follows with underline indicating language to be adopted: (b)Applicability. This Section shall apply to new multi-family residential (3 or more units), commercial, accommodation units, industrial and other non-residential development within the Town. This Section applies to all entities, including private and non-profit entities. All Employee housing mitigation dwelling units required in Table 7.20-14 below are applied to the maximum residential density of the development. Section 12. Amendment to Chapter 7.24.060(g)(1) - Restaurant. Chapter 7.24.060(g)(1) is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: An eating and drinking establishment allowed under this Code may provide outdoor seating areas for customers following design review development plan approval and issuance of a liquor license. The approval of outdoor seating shall be reviewed against the following criteria: Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 10 of 17 Section 13. Amendment to Table 7.28-2 - Off-Street Parking. Table 7.28-2 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 Parking Requirement Residential Uses Residential and Accommodation Uses Dwelling, Single-Family, Duplex 2 per unit; 3 per unit for units over 2,500 sq. ft. Dwelling, Multi-Family Studio/ Lock off/ Accommodation unit 1 per unit 1 bedroom – 1.5 per unit /DU over 2,500 sq. ft. All others- 2 per unit Dwelling, Multi-Family (Short-Term Rental Overlay) with Parking Management Plan 1 per unit, plus Guest Parking Guest Parking for Multi-Family 3-5 units - 2 spaces 5-10 units - 3 spaces 11-15 units - 4 spaces 16-20 units - 5 spaces 21-25 units - 6 spaces Over 25 units - 7 spaces plus 1 space for each 5 units in excess of 25 up to a maximum of 10 additional spaces. Group Living Group Homes 1 per bed plus 1 per 100 sq. ft. of GFA Retirement home, nursing home or assisted living facility 1 per 4 beds and 1 per employee with consideration to the number of shifts worked. Use Category Use Type Parking Requirement Public and Institutional Uses Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 11 of 17 Community Services Art gallery or museum 4 per 1,000 sq. ft. GFA Community centers 4 per 1,000 sq. ft. GFA Government services, offices and facilities 4 per 1,000 sq. ft. GFA Library 4 per 1,000 sq. ft. GFA Religious assembly 4 per 1,000 sq. ft. GFA Day Care Child care center 2 per 1,000 sq. ft. GFA Preschool, nursery school 2 per 1,000 sq. ft. GFA Educational Facilities College or university (non-exempt) 4 per 1,000 sq. ft. GFA School, K-12 (public and private) 4 per 1,000 sq. ft. GFA School, vocational-technical and trade 4 per 1,000 sq. ft. GFA Health Care Facilities Medical center/ hospital 4 per 1,000 sq. ft. GFA Medical and dental clinics and offices 4 per 1,000 sq. ft. GFA Urgent care facility 4 per 1,000 sq. ft. GFA Parks and Open Space Golf course 4 per green Commercial Uses General Commercial Uses unless otherwise stated 4 per 1,000 sq. ft. GFA Food and Beverage Services Restaurants, bars and taverns 1 per 60 sq. ft. of indoor seating area. Office Administrative and professional offices 3 per 1,000 sq. ft. GFA Recreation and Entertainment, Outdoor commercial recreation/ Determined by the Director Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 12 of 17 Outdoor entertainment Recreation and Entertainment, Indoor Indoor commercial recreation/ entertainment Determined by the Director Accommodation Lodging, Hotel 1 per unit Wholesale Business Wholesale business 1 per 800 sq. ft. GFA Industrial Service General Industrial Uses unless otherwise stated 1 per 800 sq. ft. GFA Section 14. Amendment to 7.28.020(g)(iv) Electric Vehicle Parking. Chapter 7.28.020(g)(iv) is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: Electric Vehicle Parking. As required by Section 15.28, Electrical Vehicle Charging Standards, Avon Buildings and Construction, the quantity and location of EV parking spaces must be demonstrated at design review development plan. Section 15. Amendment to 7.28.060(d)(4) Alternate Screening. Chapter 7.28.060(d)(4) is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: Alternate Screening. Mechanical equipment that is not screened in full compliance with the screening standards of this Section shall be reviewed in accordance with Section 7.16.09080, Design Review Development plan. Alternate screening methods may include, but shall not be limited to, increased setbacks, increased landscaping, grouping the equipment on specific portions of a site, architectural features and painting. Section 16. Amendment to 7.28.080(b) Fence Design Standards. Chapter 7.28.080(b) is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: (1) Within the Wildridge Subdivision and RLD Zone Districts. All fences require approval from the Town. Although discouraged in Wildridge and Wildwood, in all instances fences should complement the property and landscape rather than contain the property. Fences that delineate property boundaries are not permitted. Fences will be considered for approval by staff only when demonstrated by the applicant that the design is consistent with the following criteria: Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 13 of 17 (i) Fence material shall be wood and no more than four (4) feet in height; (ii) Fences shall be constructed using a split rail design with no more than two (2) horizontal rails; (iii) Fences shall not delineate be located closer than 7.5 feet from the property lines; (iv) Fences shall not enclose an area of two thousand (2,000) one thousand two hundred (1,200) square feet or more; (v) Fences shall ensure that wildlife migration is not negatively affected with the proposed fence design; (vi) If a fence is part of a multi-family project, approval shall be received from the association and the fence design shall be integrated with the overall landscape design of the property; and (vii) If a fence is located on a duplex property, written approval shall be received from the adjoining property owner and the fence design must be integrated with the overall landscape design. (viii) If a fence is intended to enclose an area containing more than fifty percent (50%) edible food crops, the design must be consistent with the following criteria: (A) Have a maximum height of six (6) feet; (B) Have a maximum area of two hundred (200) square feet; (C) Be at least fifty percent (50%) open; (D) Fences with wire mesh are encouraged over solid wood; and (E) Fences enclosed on the top and greenhouses are considered accessory structures. Section 17. Amendment to 7.28.090(c)(6) Exterior Lighting. Chapter 7.28.090(c)(6) is hereby amended to read as follows with underline indicating language to be adopted: Exterior Lighting: (1) The location and design of exterior lighting shall comply with Section 15.30, Outdoor Lighting Standards, Avon Buildings and Construction. Section 18. Amendment to 7.34.010(b) - Definitions. Chapter 7.34.010(b) is hereby amended to read as follows with underline indicating language to be adopted: Foot-candle means a unit of incident light (on a surface) stated in lumens per square foot and measurable with an illuminance meter, a.k.a. footcandle or light meter. One (1) footcandle is equal to one (1) lumen per square foot. Town of Avon sign means a sign erected, installed, or maintained by the Town of Avon for any public purpose, or a sign located on a building owned by the Town. Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 14 of 17 Section 19. Amendment to 7.34.010(d) – Permitted Signs Generally. Chapter 7.34.010(d) is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: (7) Town of Avon Government signs (exempt, including any digital displays). (13) Window Signs (exempt, as long as square footage and type requirements are met). Section 20. Amendment to 7.34.010(e)(5) – Lighting. Chapter 7.34.010(e)(5) is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: Lighting shall be of no greater wattage than is necessary to make the sign visible at night, and should not reflect unnecessarily onto adjacent properties. Lighting sources, except neon tubing, should not be directly visible to passing pedestrians or vehicles, and should be concealed in such a manner that direct light does not shine in a disturbing manner. Internally Lit signs shall not be illuminated when the business is closed. (8) Digital Displays, Electronic Message Centers, and electronic changeable copy signs. Auto-oriented electronic messages, images, and/or changeable copy signs are permitted along arterial streets only for gasoline pricing, parking garage stall counter displays, drive-thru menu boards, drive-thru lane informational signage, provided that they meet the following criteria: i. Such signs shall be equipped with automatic dimmers, which shall be programmed to not exceed three tenths (.3) footcandles over ambient light levels. ii. Signs shall not cause distractions to drivers with moving images or similar effects. iii. Individual letters are limited to 17 inches in height. iv. Digital signs are included in sign area calculations. v. Drive-thru signs shall be oriented to face the interior of the lot and include adequate screening to not impact the view of neighboring properties or the adjacent street. Section 21. Amendment to 7.34.010(h)(2) – Master Sign Programs. Chapter 7.34.010(h)(2) is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: Master Sign Programs are encouraged for all properties and are required as a part of the design review development plan process for all proposed projects. Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 15 of 17 Section 22. Amendment to 7.34.010(i) – Prohibited signs. Chapter 7.34.010(i) is hereby amended to read as follows with strike-out indicating language to be deleted and underline indicating language to be adopted: (9) Signs erected on public rights-of-way, except government Town of Avon signs. Section 23. 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 24. Effective Date. This Ordinance shall take effect thirty days after the date of final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 25. 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 26. 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 27. 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 Ord 21-09 Chapter 7 Amendments July 13, 2021 Page 16 of 17 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 28. 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 21-09 Chapter 7 Amendments July 13, 2021 Page 17 of 17 INTRODUCED AND ADOPTED ON FIRST READING AND REFERRED TO PUBLIC HEARING on June 22, 2021 and setting such public hearing for July 13, 2021 at the Council Chambers of the Avon Municipal Building, located at One Hundred Mikaela Way, Avon, Colorado. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ADOPTED ON SECOND AND FINAL READING on July 13, 2021. BY: ATTEST: ____________________________ ____________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk APPROVED AS TO FORM: ____________________________ Paul Wisor, Town Attorney 970-748-4013 idejong@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Ineke de Jong, General Government Manager RE: Resolution 21-16: Supporting America the Beautiful Initiative DATE: July 2, 2021 SUMMARY: Resolution 21-16 declares the Town of Avon’s support of the America the Beautiful Initiative. BACKGROUND: The Mountain Pact is encouraging city/town councils and county commissions to join other communities in the Mountain Pact Network and consider passing a resolution that expresses support for the America the Beautiful Initiative. These are efforts to protect 30 percent of U.S. lands and waters by 2030. Here are the communities in The Mountain Pact network who have passed this resolution (or a version of it) so far: •Town of Frisco, Colorado •Pitkin County, Colorado (and follow up opinion pieces from Pitkin County Chair + Aspen Council Member) •Town of Carbondale, Colorado •Clark County, Nevada More background information on the America the Beautiful Initiative was provided by Anna Peterson with the Mountain Pact Network and has been enclosed as attachment A. PROPOSED MOTION: “I move to approve Resolution 21-16 thereby declaring the Town of Avon’s support of the America the Beautiful Initiative.” Thank you, Ineke ATTACHMENTS: Attachment A: America the Beautiful Initiative Background Attachment B: Resolution 21-16. America The Beautiful Initiative Efforts To Protect 30 Percent of U.S. Lands and Waters by 2030 WHAT IS THIS EFFORT? On January 27, 2021, President Biden signed three executive orders that will help tackle climate change by pausing new oil and gas leasing on public lands and conserving 30 percent of U.S. lands and waters by 2030 (30x30). These orders are designed to help boost the economy as we recover from the impacts of COVID-19 and move us towards a more sustainable future. In mid-January, after the Mountain Pact released a report on how the Biden Administration and Congress can support climate-resilient western mountain communities and reverse the damage caused by the former administration, over 140 Western local elected officials signed a letter asking the new Biden administration to take many of these steps. On May 6, 2021, the Biden administration released a report, Conserving and Restoring America the Beautiful, that recommends “a ten-year locally-led campaign to restore the lands and waters upon which we all depend, and that bind us together as Americans.” The America the Beautiful is a bold, science-based initiative that includes the 30x30 goal, the first-ever national conservation goal to address the twin threats of climate change and the rapid loss of biodiversity and safeguard America’s lands, water, and wildlife. It supports the conservation efforts of people across the country, including rural and coastal communities, Tribal Nations, private landowners, and many others on the frontlines of conserving, stewarding, restoring, using, and enjoying nature. The report recommends that conservation efforts adhere to the following eight key principles: 1.Pursue a collaborative and inclusive approach to conservation. 2.Conserve America’s lands and waters for the benefit of all people. 3.Support locally led and locally designed conservation efforts. 4.Honor Tribal sovereignty and support the priorities of tribal nations. 5.Pursue conservation and restoration approaches that create jobs and support healthy communities. 6.Honor private property rights and support the voluntary stewardship efforts of private landowners and fishers. 7.Use science as a guide. 8.Build on existing tools and strategies with an emphasis on flexibility and adaptive approaches. Over the coming months, the Department of Interior will determine how to best measure the country’s progress toward the 30x30 goal and properly account for the many innovative and effective ways that communities are conserving their lands and waters for current and future generations. ATTACHMENT A WHY IS THIS SO IMPORTANT? ●Scientists warn we must conserve and restore at least 30 percent of lands and waters by 2030 if we hope to preserve biodiversity and ecosystems as well as mitigate the impacts of climate change. ●The United States is facing a conservation and climate crisis as nature declines and greenhouse gas emissions continue to increase. ●Science shows us that worldwide biodiversity is deteriorating at a faster rate than at any time in human history. ●From 2001 to 2017, more than 24 million acres of land were lost to human development in the lower 48 United States, which equals the loss of one football field-sized patch of land every 30 seconds. ●77 percent of voters in the Rocky Mountain West support setting a national goal of conserving 30 percent of land and waters in the United States by 2030 and 61 percent of voters are concerned about the future of land, water, air, and wildlife. PUBLIC HEALTH BENEFITS ●Scientists say that the loss of biodiversity, the increasing number of extreme weather events, and human encroachment upon wildlife habitat may increase the risk of the transmission of infectious diseases such as COVID- 19 and SARS. ●Our natural places help to provide food security, clean air to breathe, and clean water to drink, while offering us a wide range of health benefits; and every person, regardless of race, background, or economic status, should have access to close-to-home opportunities to get outside in nature. ECONOMIC BENEFITS ●Wilderness, wildlife refuges, national conservation lands, monuments, and other protected areas drive our local economies and provide access for hunting, fishing, hiking, biking, camping, and other outdoor recreation pursuits. ●Conserved private lands, including working forests, farms and ranches, protect open spaces, preserve threatened wildlife, and help maintain our community's way of life. ●100 economists and scientists have found that the global economy would benefit from the creation of far more protected areas on land and at sea than we have today. ●Protected public lands are the backbone of our states’ outdoor recreation industries, which generate $788 billion in consumer spending nationally and support 5.2 million jobs. MESSAGING What the America the Beautiful Initiative is: The America the Beautiful Initiative is a broad conservation goal. It’s a framework or umbrella for all of the local, state, and national land and water conservation efforts underway across the country. It will respect private property rights and support the voluntary conservation efforts of the private sector including private landowners, water users, and working waterfronts. What the America the Beautiful Initiative will not do: ●It will not force states to hand over land to the federal government. ●It does not confer any authority to the federal government to take land. ●It is not a massive federal land grab. ●It does not violate the U.S. Constitution. HOW CAN WE ACHIEVE THIS GOAL? The support of, and coordination with federal, state, and local land management agencies is critical to achieving the America the Beautiful Initiative. Likewise, the use of conservation easements and restoration programs will be instrumental in helping to protect private lands. You can help shape these efforts. Please see here and here for more details on what these conservation efforts could look like and here for information about what the City of Boise is doing. State, County, and Local-Level Protection Strategies ●Create more local parks and open spaces. ●Create more state wildlife areas, state parks. ●Secure more conservation easement. ●Use more conservation leases for state trust lands. ●Create more preservation designations - e.g a wildlife corridor designation similar to the Outstanding Natural Resource Waters designation. ●Require state land managers to comment on federal land management plans to protect biodiversity and increase carbon sequestration. ●Focus on diversity, equity, and inclusion in land protection efforts. ●Take lands off the table for development. ●Fund more local conservation efforts. ●Rewilding areas. Federal-Level Protection Strategies ●State land managers, working with their congressional delegation, can identify lands and waters in need of federal protection. ●Review long-term public land management documents like forest plans and other agency plans that guide management of public lands to find opportunities for how and where land protections could be strengthened. Create New Federal Executive and Legislative Protections ●National parks ●National monuments ●Wilderness areas ●Wilderness Study Areas in Resource Management Plans ●National Wildlife Refuges Expand Federal Working Lands Programs to Increase Carbon Sequestration and Soil Health Protect Private lands: ●Expand state and federal restoration programs. ●Create more conservation easements on private lands. ●Offer additional technical assistance for private landowners to protect habitat. ●Maintain working ranches rather than selling them for subdivisions. Tribal Lands and Sovereign Nations Department of Defense Lands HOW YOU CAN TAKE ACTION 1.Watch the Mountain Pact April webinar about 30x30: The Mountain Pact hosted a webinar with the U.S. Director of the Campaign For Nature about President Biden’s 30x30 conservation goal of protecting 30% of land and water by 2030 and how we can work to implement this goal in our communities. If you missed the webinar and would like to watch the recording, please reach out to Anna at Anna@TheMountainPact.org. 2.Ask your Town/City/County governing body to adopt a resolution in support of the America the Beautiful Initiative: Have your community sign onto a resolution or a revised version of it that expresses support for the America the Beautiful Initiative. You can find more background here (this document link). a.Make sure to adjust the resolution as needed to reflect your community’s needs. b.If you adopt a resolution, please let Anna know at Anna@TheMountainPact.org. c.Send the resolution to local media, your Congressional offices, and the Biden Administration at Scott de la Vega, Acting Secretary Department of the Interior 1849 C Street, N.W. Washington DC 20240 3.Complete a survey about the America the Beautiful Initiative: You can fill out this survey so your voice is reflected in the 30x30 ongoing planning effort. 4. Consider authoring an opinion editorial to show your support for the America the Beautiful Initiative. Res 21-16 Supporting the America the Beautiful Initiative Page 1 of 2 RESOLUTION 21-16 SUPPORTING THE AMERICA THE BEAUTIFUL INITIATIVE WHEREAS, the United States is facing an urgent conservation and climate crisis as nature declines and greenhouse gas emissions continue to increase; and WHEREAS, from 2001 to 2017, more than 24 million acres of land were lost to human development in the lower 48 United States, which equals the loss of one football field-sized patch of land every 30 seconds; and WHEREAS, low-income communities and communities of color are disproportionately impacted by the dual climate and nature crises and continue to experience inequitable access to nature and its many benefits including clean air and water; and WHEREAS, worldwide biodiversity is deteriorating at a faster rate than at any time in human history, which is increasing the number of extreme weather events; and WHEREAS, human encroachment upon wildlife habitat may increase the risk of the transmission of infectious diseases such as COVID-19 and SARS; and WHEREAS, scientists warn we must conserve and restore at least 30 percent of lands and waters by 2030 if we hope to preserve biodiversity and ecosystems as well as mitigate the impacts of climate change; and WHEREAS, the goals of the America the Beautiful initiative are to address climate change; slow the rapid loss of biodiversity, intact waters, and natural places by conserving and restoring at least 30 percent of U.S. lands, waters, and oceans by the year 2030; and ensure an equal distribution of nature in communities across the country; and WHEREAS, the America the Beautiful initiative includes eight key principles to address these issues: 1. Pursue a collaborative and inclusive approach to conservation; 2. Conserve America’s lands and waters for the benefit of all people; 3. Support locally led and locally designed conservation efforts; 4. Honor Tribal sovereignty and support the priorities of Tribal Nations; 5. Pursue conservation and restoration approaches that create jobs and support healthy communities; 6. Honor private property rights and support the voluntary stewardship efforts of private landowners and fishers; 7. Use science as a guide; 8. Build on existing tools and strategies with an emphasis on flexibility and adaptive approaches; and WHEREAS, science has shown that conserving nature can provide over one-third of the cost- effective climate mitigation needed through 2030 to hold warming at below 2°C; and ATTACHMENT B Res 21-16 Supporting the America the Beautiful Initiative Page 2 of 2 WHEREAS, our natural places help to provide food security, clean air to breathe, and clean water to drink while offering us a wide range of health benefits; and WHEREAS, conserved and restored private lands, including working forests, farms, and ranches protect open spaces, preserve threatened wildlife, and help maintain our way of life; and WHEREAS, wilderness, wildlife refuges, national conservation lands, national monuments, and other protected areas drive our local economies and conserved places provide access for hunting, fishing, hiking, biking, camping, and other outdoor recreation pursuits; and WHEREAS, over 100 economists and scientists have found that the global economy would benefit from the creation of far more protected areas on land and at sea than we have today and economic research shows that employment and personal income grew significantly faster in rural counties with conserved, restored, and protected public lands than rural counties with fewer protected and conserved areas; and WHEREAS, protected public lands are the backbone of our state’s outdoor recreation industry, which generates $788 billion in consumer spending and supports 5.2 million jobs nationally; and WHEREAS, 77 percent of voters in the Rocky Mountain West support setting a national goal of conserving 30 percent of land and waters in the United States by 2030 and 61 percent of voters are concerned about the future of land, water, air, and wildlife. NOW THEREFORE, be it resolved by the Avon Town Council, that we stand in support of the science-based, locally-led, collaborative, and inclusive America the Beautiful initiative to conserve and restore at least 30 percent of lands, waters, and oceans by 2030; and BE IT FURTHER RESOLVED, that we call on the U.S. government, Congress, and state and local leaders to significantly increase the tools and resources available to achieve locally-driven conservation projects, and to facilitate collaboration and good-faith conversations among all people living in the United States as we work together to address inequitable access to the outdoors as well as our biodiversity and climate crises. ADOPTED this 13th day of July 2021. AVON TOWN COUNCIL By: ______________________________ Attest: ________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk  Page 1 TOWN COUNCIL REPORT To: Honorable Mayor Sarah Smith Hymes and Avon Town Council From: Scott Wright, Asst. Town Manager / Finance Director Date: July 7, 2021 Re: 2020 Annual Financial Report and Communication with Governing Body Introduction and Action Before Council On Tuesday evening, I will present financial highlights from the 2020 Annual Financial Report. Afterwards, Paul Backes with McMahon & Associates, the Town’s independent auditing firm, will present their audit findings to the Avon Town Council. Proposed Motion After presentation of the audit report from the auditors, the appropriate action would be for Town Council to accept the report. The recommended motion would be “Move to accept the 2020 Annual Financial Report.” Additional Information In addition to presenting their audit findings, it is common for the auditors to make recommendations regarding internal controls and policies and procedures to help the Town operate as efficiently as possible with the highest degree of transparency and integrity. The auditors had no recommendations from the 2020 audit. Scott Attachments: A. Communication with Governing Body McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.co Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 M & A To the Honorable Mayor and Town Council Town of Avon, Colorado We have audited the financial statements of Town of Avon, Colorado for the year ended December 31, 2020. Professional standards require that we provide you with the following information related to our audit. Qualitative Aspects of Accounting Policies Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by Town of Avon, Colorado are described in the Notes to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Estimated useful lives for depreciation on fixed assets: Management’s estimate of depreciation is based on industry practice and experience. Allowance for doubtful accounts: The Town has a number of receivables from developers and others. Some of the amounts owed to the Town may be uncollectable. The Town has recorded an allowance for doubtful accounts to reflect any anticipated default on receivables. Estimated claims reserve: Management’s estimate of the claims reserve liability is based on actual claims activity relative to stop loss refunds and premiums charged to departments. We evaluated the key factors and assumptions used to develop estimates above and found that they are reasonable in relation to the financial statements taken as a whole. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. There were no misstatements detected as a result of audit procedures which were material, either individually or in the aggregate, to the financial statements taken as a whole. ATTACHMENT A To the Honorable Mayor and Town Council Town of Avon, Colorado Page 2 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. W e are pleased to report that no such disagreements arose during the course of our audit Management Representations As is required in an audit engagement we have requested certain representations from management that are included in the management representation letter. Governmental Accounting Standards Board Statement 87: Financial reporting standards for the Town are promulgated by the Governmental Accounting Standards Board (“GASB”). GASB has issued Statement 87 (“GASB 87”), which will require recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. GASB 87 is required to be implemented for periods beginning after June 15, 2021. This letter is intended solely for the information and use of the Town Council, management, and others within the organization and is not intended to be, and should not be, used by anyone other than those specified parties. Sincerely, McMahan and Associates, L.L.C. July 6, 2021 ATTACHMENT A Comprehensive Annual Financial Report for the year ended December 31, 2020 Town of Avon 100 Mikaela Way ▪ Avon, CO ▪ 81620 ▪ www.avon.org Town of Avon, Colorado Comprehensive Annual Financial Report for the year ended December 31, 2020 Prepared by: Department of Finance Scott C. Wright, CPA, CPFO Asst. Town Manager / Director of Finance TOWN OF AVON, COLORADO LIST OF ELECTED AND APPOINTED OFFICIALS December 31, 2020 TOWN COUNCIL Sarah Smith Hymes, Mayor Amy Phillips, Mayor Pro Tem Russell Andrade Lindsay Hardy Scott Prince Chico Thuon Tamra N. Underwood MANAGEMENT Eric Heil, Town Manager Scott Wright, Assistant Town Manager/Finance Director John Curutchet, Recreation Director Greg Daly, Police Chief Justin Hildreth, Town Engineer Rego Omerigic, Fleet Director Gary Padilla, Public Works Director Matt Pielsticker, Planning Director Lance Richards, Human Resources Director Eva Wilson, Mobility Director i TOWN OF AVON, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2020 TABLE OF CONTENTS INTRODUCTION Letter of Transmittal Certificate of Achievement for Excellence in Financial Reporting Town of Avon Organization Chart FINANCIAL SECTION Independent Auditor’s Report Management’s Discussion and Analysis Basic Financial Statements Government-wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Balance Sheet – Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds Statement of Net Position – Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds Statement of Cash Flows – Proprietary Funds Notes to the Financial Statements Required Supplemental Information Schedule of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) – Budget and Actual – General Fund Schedule of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) – Budget and Actual – Avon Urban Renewal Authority Fund Notes to Required Supplemental Information Page v-ix x xi 1-3 4-17 19 20-21 22-23 24-25 26 27 28-29 30-54 55 56 57 TOWN OF AVON, COLORADO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2019 TABLE OF CONTENTS - CONTINUED ii Other Supplemental Information Nonmajor Governmental Funds Combining Balance Sheet – Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds Schedules of Revenues, Expenditures and Changes in Fund Balances (Budgetary Basis) - Budget and Actual: Water Fund Community Enhancement Fund Community Housing Fund Exterior Energy Offset Fund Disposable Paper Bag Fee Fund Debt Service Fund Capital Projects Fund Mobility Fund Fleet Maintenance Fund Equipment Replacement Fund Miscellaneous Schedules: Debt Schedule Detailed Schedule of General Fund Expenditures (Budgetary Basis) – Budget and Actual Detailed Schedule of General Fund Revenues (Budgetary Basis) – Budget and Actual Schedule of Capital Project Fund Project Expenditures (Budgetary Basis) – Budget and Actual Local Highway Finance Report STATISTICAL SECTION Net Position by Component Changes in Net Position Changes in Fund Balances, Governmental Funds Fund Balances, Governmental Funds Tax Revenues by Source, Governmental Funds Assessed Value and Actual Value of Taxable Property Direct and Overlapping Property Tax Rates Principal Taxpayers Property Tax Levies and Collections Ratios of Outstanding Debt by Type Page 59 60-61 62-63 64 65 66 67 68 69 70 72-73 74-75 78-79 81 82-83 84-86 88-89 90-91 94-95 96-99 100-101 102 103 104 105 106 107 108 iii STATISTICAL SECTION (continued) Direct and Overlapping Governmental Activities Debt Ratio of General Bonded Debt Outstanding and Legal Debt Margin Demographic and Economic Statistics Principal Employers Commercial and Residential Construction Full-time Equivalent Employees by Function / Program Operating Indicators by Function / Program SINGLE AUDIT SECTION Notes to Schedule of Federal Awards Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance Schedule of Prior Year Findings and Questioned Costs Schedule of Expenditures of Federal Awards Page 109 110-111 112 113 114 115 116-117 119 120-121 122-123 124 125 iv THIS PAGE INTENTIONALLY LEFT BLANK v Post Office Box 975 100 Mikaela Way Avon, CO 81620 July 13, 2021 To the Honorable Mayor, Members of the Town Council and Citizens of the Town of Avon: Town Charter and State statutes require that the Town of Avon (Town) issue a complete set of financial statements presented in conformance with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed independent certified public accountants. Pursuant to these requirements, we hereby issue the comprehensive annual financial report of the Town of Avon for the fiscal year ended December 31, 2020. This report consists of management’s representations concerning the finances of the Town of Avon. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the Town of Avon has established a comprehensive internal control framework that is designed both to protect the Town’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the Town of Avon’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh the benefits, the Town of Avon’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The Town of Avon’s financial statements have been audited by McMahan and Associates, L.L.C., a firm of certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town of Avon for the fiscal year ended December 31, 2020, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town of Avon’s financial statements for the fiscal year ended December 31, 2020 are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town of Avon’s MD&A can be found immediately following the report of the independent auditors. Letter of Transmittal Town of Avon, Colorado July 13, 2021 vi Profile of the Town The Town of Avon was incorporated in 1978 and is located in Eagle County, eight miles west of the Town of Vail and seventeen miles east of the Town of Eagle. The Town sits north of U.S. Highway 6, directly adjacent to the Beaver Creek Resort and is bisected by Interstate Highway 70 from east to west. The primary transportation route to and from Avon is I-70. Aviation services and transportation are available at the Eagle County Airport, 24 miles west of the Town. The Town provides bus transportation services within the Town and offers, in funding partnership with the Beaver Creek Resort Company, a high-speed gondola that provides direct access to Beaver Creek Resort. Avon is also served by the Eagle County Regional Transit Authority which provides bus service throughout Eagle County. Eagle County encompasses approximately 1,694 square miles and spans from the summit of Vail Pass to Glenwood Canyon. Approximately 80% of Eagle County’s land is public – comprised of National Forests, wilderness areas, Bureau of Land Management properties, and state and local public lands. The Town of Avon currently encompasses approximately 8¼ square miles. The 2020 Census reported a population of 6,474. This figure represents the permanent resident population. Total population increases significantly during the winter tourist ski season. The Town operates under the council/manager form of government. Policy-making and legislative authority are vested in the Town Council, which consists of a mayor and a six-member council. The Town Council is responsible, among other things, for passing ordinances, adopting the budget, and appointing a Town Manager, Town Attorney, Town Prosecutor and Municipal Judge. The Town Manager is responsible for carrying out the policies and ordinances of the Council, overseeing the day-to-day operations of the Town, and for appointing the heads of the Town’s departments. The Council is elected on a non-partisan basis. Council members are elected to four-year staggered terms with three council members elected in November 2020, and the remaining four to be elected in November 2022. The mayor and mayor pro-tem are elected from amongst the elected council members by a majority vote. The mayor presides at meetings of council and shall not vote until all other Council members present who are eligible to vote have had reasonable opportunity to vote. The affirmative concurring vote of four (4) Council members is required for the adoption of an ordinance, resolution, order for appropriation, approval of a contract or approval of an intergovernmental agreement. The Town is a home-rule community empowered to levy a property tax on the assessed value of real property located within the Town. The Town collects a 4% sales tax on all retail sales, and a 4% accommodations tax on the lease or rental of hotel rooms, condominium units and other accommodations within the Town. Beginning January 1, 2019 with voter approval the Town began levying a $3 per pack excise tax on the sale of cigarettes and a 40% tax on other nicotine and tobacco products. The Town also collects a 2% real estate transfer tax on all sales of real property located within the Town. The Town has the power by state statute to extend its corporate limits by annexation, which is done periodically when deemed appropriate by the Town Council. Letter of Transmittal Town of Avon, Colorado July 13, 2021 vii The Town provides a full range of municipal services including general administrative services; community planning and zoning and building permitting and inspection services; municipal law enforcement; public works including management and maintenance of Town parks and landscaping, Nottingham Lake, bridges, streets and roads, trails, buildings, facilities and infrastructure; operation and management of the Avon Recreation Center and other youth, adult and senior recreation programs; and, special events and cultural activities. The annual budget serves as the foundation for the Town of Avon’s financial planning and control. No later than October 15th, the Town Manager submits to the Mayor and Town Council a proposed budget for the calendar year commencing the following January 1st. The budget is prepared by fund, department, program, and project and includes information on the prior year, current estimates and requested appropriations and estimated revenues for the upcoming year. The Town Council holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Town Council must adopt the budget by resolution prior to December 15th. Once adopted, the Town Council may at any time, by resolution, amend the budget. In addition, the Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department. A department is defined by the Town as a distinct, principal, or specialized division (e.g. the department of public works). Expenditures may not legally exceed budgeted appropriations at the fund level. Budget to actual comparison are provided in this report for all funds and are presented at a lower-than-required level of control to facilitate detailed financial analysis. Budgetary comparisons for the Town’s General Fund and its major special revenue fund, the Avon Urban Renewal Authority, are presented as required supplemental information in this report. Budget to actual comparisons for all other Town funds are included as other supplemental information in this report. Factors Affecting Financial Condition The information presented in the financial statements is best understood when considered from a broader perspective rather than just the specific environment in which the Town operates. Local Economy. Year-round tourism and winter recreation-related businesses account for a significant portion of the employment and earned income of area residents. Skier and snowboarder visits at Vail and Beaver Creek Resort account for almost 20% of the total such visits in Colorado. Both resorts are perennially ranked among the top ten ski resorts in the country. In addition to skiing and associated winter-time activities, the area promotes a number of summer activities. The Town of Avon sponsors numerous special events throughout the year to area residents and visitors including Avon's Salute to the USA - a 4th of July fireworks display typically Letter of Transmittal Town of Avon, Colorado July 13, 2021 viii held on July 3rd, and Avon LIVE!, a free Wednesday evening live music series; multiple sporting events such as the XTERRA triathlon; and family-friendly activities like the Avon Easter Egg Hunt. The Avon Recreation Center is a spacious 40,000 sq. ft. multi-use facility featuring a large aquatics area with a 5-lane lap pool, lazy river, kid’s pool, 140 foot water slide, Aquaclimb climbing wall and diving well; a 2,560 sq. ft. advanced weight training room; a fitness room with treadmills, elliptical motion trainers, upright and recumbent bikes; and, separate Yoga/Tai Chi and multi-purpose training studios. Nottingham Park and Nottingham Lake serve as the Town’s central headquarters for summer activities including standup paddleboard, pedal boat, and kayak rentals; fishing, beach volleyball, Fitness Court, and Destination Jump, Splash, Learn. Avon’s Whitewater Park, with three distinct water features, is open all summer for rafters and kayakers to enjoy. The West Avon Preserve offers more than 11 miles of mountain bike trails accessible from the Town's paved bike paths with a variety of terrain for all ability levels. Offering several championship golf courses, Eagle County has earned a rating by Golf Digest Magazine as one of the top 40 golf communities in which to live. Other summer activities include hiking, horseback riding, bicycling, kayaking, and rafting, as well as other recreational sports. Property Values. Property tax, which is based on assessed property values and a mill rate, represents approximately fifteen percent of the Town’s total tax revenues. Assessed values are dependent upon real property growth and market values of property, along with assessment ratios established by the State legislature. In Avon, real property assessed values decreased slightly by 0.31 percent in 2020. Current Initiatives Council places a high priority on maintaining the existing level of municipal services in 2021 for the purpose of community stability and support of the local economy. All levels of service and staffing to support those levels of service remain the same as 2020. Transit: Avon budgeted for substantial increases in transit services in order to provide a comparable level of skier bus service considering the severe limitations on capacity established by Colorado Public Health and Environment and Colorado Department of Transportation. Public transit mandates by the State of Colorado limit capacity to 50% of existing seats, which reduces full-seated and standing-room capacity of each bus by 75%. Avon purchased two additional busses and plans to roughly quadruple the number of busses operating during peak morning and afternoon periods to connect to the Beaver Creek Ski Resort. The Skier Bus transit operation is an essential link in the winter economy for the lodging, restaurant, and retail businesses in Avon. Changes for 2021 include the addition of a full-time Transit Supervisor position, additional bus drivers and additional hours of bus operations. Building Department: Despite the Pandemic, or due to the Pandemic, Avon is experiencing significant large-scale construction and real estate activity. Avon is seeking to improve our Building Inspection services with an increase from a part-time Building Permit Technician to a full-time certified Building Permit Technician position. Letter of Transmittal Town of Avon, Colorado July 13, 2021 ix Public Works: A master gardener position is added for 2021 in order to provide more dedicated and focused attention to the Town’s streetscape plantings and park plantings. Avon has expanded and upgraded its streetscapes over the last couple years, including the Beaver Creek Boulevard improvements finished last year. In addition, Avon is constructing and installing significant improvements throughout Nottingham Park over the next two years which will include expanded areas of enhanced landscaping. Capital Improvement Projects The Town updates its capital improvements long-range plan annually. Anticipated major projects include the Old Town Hall asbestos mitigation and demolition, replacement of the EPDM (ethylene propylene diene terpolymer) roof at the Fleet Maintenance facility, floor replacement and deck railing for the Avon Pavilion, Avon Recreation Center locker replacements, Avon Road/I70 Overpass safety and pedestrian improvements, and Buck Creek and Mikaela Way street repairs. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of Avon for its comprehensive annual financial report (CAFR) for the fiscal year ended December 31, 2019. This was the twenty-eighth consecutive year that the Town has received this prestigious award. In order to be awarded a Certificate of Achievement, the Town published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report could not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. Each member of the department has my sincere appreciation for the contributions made in the preparation of this report. Due credit should also be given to the Mayor, Town Council, and Town Manager for their interest, support and leadership in planning and conducting the operations of the Town in a responsible and progressive manner. Respectfully Submitted, Scott C. Wright, CPA, CPFO Asst. Town Manager / Finance Director Scott Wright Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Town of Avon Colorado For its Comprehensive Annual Financial Report For the Fiscal Year Ended December 31, 2019 Executive Director/CEO x Organizational Chart Avon Citizens Mayor and Council Cultural Arts & Special Events Committee Finance Committee Health & Recreation Committee Liquor Licensing Authority Planning & Zoning Commission Urban Renewal Authority Municipal Judge Municipal ProsecutorTown Manager Community Development Town Attorney Communications & Marketing Municipal Court Cultural Arts & Special Events Town Clerk Human Resources Programs Risk Management Programs Administration Mobility Programs Transit Operations Wash Bay Operations Administration Investigations Patrol Parks Roads & Bridges Administration Custodial Services Recreation Programs Building Inspections Planning Engineering Building & Facilities Finance Information Technology Fleet Maintenance Operations Engineering Finance RecreationFleet Maintenance General Government Human Resources Mobility Police Public Works McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 1 M & A INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Town Council Town of Avon Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund,and the aggregate remaining fund information of Town of Avon, Colorado, Colorado (the “Town”), as of and for the year ended December 31, 2020, and the related noted to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. W e conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Town’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall financial statement presentation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Town Council Town of Avon, Colorado 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Town of Avon, Colorado, Colorado as of December 31, 2020, and the respective changes in financial position and, where applicable,cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis on pages 4 –17 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of managem ent about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary comparison information on pages 64-74 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. The budgetary comparison information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including com paring and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively com prise the Town’s financial statements taken as a whole. The introductory section, combining fund financial statements,individual fund budgetary information,the Debt Schedule,the Local Highway Finance Report, and the statistical section listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the Town’s financial statements. The combining fund financial statements, the individual fund budgetary information, the Debt Schedule, detailed budgetary schedules and the Local Highway Finance Report are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements.Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Town Council Town of Avon, Colorado 3 Other Matters –Continued Additionally, the Schedule of Expenditures of Federal Awards included in the Single Audit section is presented for the purpose of additional analysis, as required by Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), and are not a required part of the Town’s financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statement or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards is fairly stated in all material respects in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 6, 2021 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance. McMahan and Associates, L.L.C. Avon, Colorado July 6, 2021 Management’s Discussion and Analysis As management of the Town of Avon, we offer readers of the Town of Avon’s financial statements this narrative overview and analysis of the financial activities of the Town of Avon for the fiscal year ended December 31, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. Financial Highlights • The assets of the Town exceeded its liabilities and deferred inflows at the close of its fiscal year ended December 31, 2020 by $101,688,341 (net position). Of this amount, $30,271,626 is unrestricted and may be used to meet the Town’s ongoing obligations to citizens and creditors in accordance with the Town’s fund designation and fiscal policies as more fully described below. • The Town’s total net position increased by $4,630,800. • As of the close of the fiscal year, the Town’s governmental funds reported combined ending fund balances of $25,620,630, an increase of $5,888,703 from the prior year. Approximately 36.8 percent of this total amount, $9,423,824, is available for spending at the Town’s discretion (unassigned fund balance). • The unassigned fund balance for the General Fund was $9,373,237, or 56.2 percent of total General Fund expenditures and other financing uses. This represents a $1,980,567 increase, or 26.8 percent, from the prior year. • The Town of Avon’s long-term liabilities decreased by a net $2,273,207 during the current fiscal year. Regular principal payments were made on bonded debt of $1,564,010 and capital leases of $109,364. Two existing bonds were defeased by issuing new bonds at lower interest rates resulting in an economic gain of $816,857 and cash flow savings of $2,110,792. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the Town of Avon’s basic financial statements. The Town’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains required supplementary information and other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the Town of Avon’s finances, in a manner similar to a private sector business. The statement of net position presents information on all of the Town of Avon’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or 4 decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating. The statement of activities presents information showing how the Town’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused compensated absences). Both of the government-wide financial statements distinguish functions of the Town of Avon that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the Town of Avon include general government, community development, public safety, public works and utilities, and recreation and culture. The business-type activities of the Town include mobility and fleet maintenance operations. The government-wide financial statements include not only the Town of Avon itself (known as the primary government), but also the Avon Urban Renewal Authority, a legally separate entity, which was established in August 2007 to undertake urban renewal plans and projects with the Town. All members of the governing body are Town Council members. For financial reporting purposes, AURA is blended into the Town’s financial statements and is reported as a major fund in the basic financial statements. The government-wide financial statements can be found on pages 19-21 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town of Avon, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflow and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Town’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 5 The Town of Avon maintains nine individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Avon Urban Renewal Authority Fund, Debt Service Fund and Capital Projects Fund, all of which are considered to be major funds. Data from the other five nonmajor governmental funds (Water Fund, Community Enhancement Fund, Affordable Housing Fund, Exterior Energy Offset Fund, and Disposable Paper Bag Fee Fund) are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The basic governmental fund financial statements can be found on pages 22-25 of this report. Proprietary funds. The Town of Avon maintains two different types of proprietary funds. Enterprise funds are used to report the same function presented as business-type activities in the government-wide financial statements. The Town of Avon uses enterprise funds to account for its mobility operations and its fleet maintenance operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Town’s various functions. The Town of Avon uses an internal service fund to account for the rental of vehicles and equipment to Town departments for the accumulation of funds for future replacement. Because this service predominately benefits governmental rather than business-type functions, it has been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the mobility fund and the fleet maintenance fund operations. Separate information is also provided for the Town’s internal service fund. The basic proprietary fund financial statements can be found on pages 26-29 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 30-54 of this report. Required Supplemental Information. In addition to the basic financial statements and accompanying notes, this report also presents certain other required supplemental information. The Town of Avon adopts an annual appropriated budget for its General Fund and major special revenue fund. Budgetary comparison statements have been provided for the General Fund and the Avon Urban Renewal Authority Fund to demonstrate compliance with these budgets and can be found on pages 55-56 of this report. Other Supplemental Information. The combining statements referred to earlier in connection with nonmajor governmental funds are presented under other supplemental information immediately following the required supplemental information. Individual fund statements and schedules and other miscellaneous schedules can also be found in this section on pages 59-91 of this report. 6 Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the Town of Avon, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $101,688,341 as of December 31, 2020. The largest portion of the Town’s net position (67.9%) reflects its investment in capital assets (e.g. land, buildings, machinery and equipment, and infrastructure), net of any related debt used to acquire those assets that is still outstanding. The Town uses these assets to provide services to citizens, consequently, these assets are not available for future spending. Although the Town’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the Town’s net position (2.3%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position (29.8%) may be used to meet the Town’s ongoing obligations to citizens and creditors. Condensed Net Position Governmental Activities Business-type Activities Total Government 2020 2019 2020 2019 2020 2019 Current and Other Assets Restricted Assets Capital Assets, net Total Assets $ 36,655,572 657,821 74,591,931 111,905,324 $ 29,079,321 1,806,196 78,061,580 108,947,097 $ 1,214,841 - 24,185,602 13,531,559 $ 815,268 - 12,828,371 13,643,639 $ 37,870,413 657,821 98,777,533 125,418,883 $ 29,894,589 1,806,196 90,889,951 122,590,736 Deferred Outflow of Resources Other Liabilities Noncurrent Liabilities Total Liabilities Deferred Inflows of Resources 143,640 2,999,234 16,530,777 19,530,011 2,045,276 - 2,349,315 18,436,163 20,785,478 2,045,905 17,663 148,012 2,126,570 2,274,582 41,976 _- 161,327 2,494,392 2,655,719 46,093 143,640 3,147,246 18,657,347 21,804,593 2,087,252 - 2,510,642 20,930,555 23,441,197 2,091,998 Net Position: Net Investment in Capital Assets Restricted Unrestricted Total Net Position 58,743,303 2,373,593 29,356,781 $ 90,473,677 60,035,630 3,317,607 22,762,477 $ 86,115,714 10,299,819 - 914,845 $ 11,214,664 10,401,752 - 540,075 $ 10,941,827 69,043,122 2,373,593 30,271,626 $101,688,341 70,437,382 3,317,607 23,302,552 $ 97,057,541 Analysis of the Town’s Operations Overall, the Town’s net position increased by $4,630,800 for 2020. Governmental activities increased net position by $4,357,963, while business-type activities increased net position by $272,837. The largest contributors to the overall increase was the sale of the Town’s interest in the Buffalo Ridge Housing project of $1.5 million, a significant excess of real estate transfer taxes compared to estimates of almost $3 million, and positive capital project expenditure variances of $1.9 million. 7 Change in Net Position Governmental Activities Business-type Activities Total Government 2020 2019 2020 2019 2020 2019 REVENUES Program Revenues: Charges for Services Operating Grants and Contributions Capital Grants and Contributions General Revenues: Taxes: Property Taxes Real Estate Transfer Tax Sales and Accommodation Taxes Other Taxes Unrestricted Investment Earnings Unrestricted Grants & Contributions Miscellaneous Total Revenues $ 1,601,708 826,152 37,206 3,727,486 5,998,950 11,303,195 996,839 288,927 918,375 2,392,866 28,091,704 $ 3,053,575 89,873 815 3,226,470 5,001,145 11,438,117 990,898 549,998 968,549 847,185 26,166,625 $ 1,813,132 646,470 - 41,633 - - - - - - 2,501,235 $ 1,644,868 245,980 - 41,630 - - - - - - 1,932,478 $ 3,414,840 1,472,622 37,206 3,769,119 5,998,950 11,303,195 996,839 288,927 918,375 2,392,866 30,592,939 $ 4,698,443 335,853 815 3,268,100 5,001,145 11,438,117 990,898 549,998 968,549 847,185 28,099,103 EXPENSES Program Activities: Governmental Activities: General Government Community Development Public Safety Public Works and Utilities Recreation Interest on Long-term Debt Business-type Activities: Mobility Fleet Maintenance Total Expenses 6,274,190 513,004 4,466,597 8,245,335 1,814,889 538,010 - - 21,852,025 5,968,157 557,539 4,310,801 8,134,954 2,160,389 617,694 - - 21,749,534 - - - - - - 2,325,260 1,784,854 4,110,114 - - - - - - 2,502,195 1,780,524 4,282,719 6,274,190 513,004 4,466,597 8,245,335 1,814,889 538,010 2,325,260 1,784,854 25,962,139 5,968,157 557,539 4,310,801 8,134,954 2,160,389 617,694 2,502,195 1,780,524 26,032,253 Excess (Deficiency) Before Contributions and Transfers Capital Contributions Transfers Increase (Decrease) in Net Position Net Position, Beginning of Year Net Position, Ending 6,239,679 - (1,881,716) 4,357,963 86,115,714 $ 90,473,677 4,417,091 (61,539) (1,700,000) 2,655,552 83,460,162 $ 86,115,714 (1,608,879) - 1,881,716 (272,837) 10,941,827 $11,214,664 (2,350,241) 61,539 1,700,000 (588,702) 11,530,529 $10,941,827 4,630,800 - - 4,630,800 97,057,541 $101,688,341 2,066,850 - - 2,066,850 94,990,691 $ 97,057,541 Expenses and Program Revenues – Governmental Activities $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 General Government Comm Dev Public Safety Public Works and Utilities Recreation Interest on Long- term Debt Expenses Program Revenues 8 Revenues by Source – Governmental Activities Business-type activities. Net position of business-type activities increased by $272,837 in 2020. The key element of this increase was unanticipated CARES Act grant funds received by the Mobility Enterprise Fund. Expenses and Program Revenues – Business-type Activities Property Taxes 12.81% RETT Taxes 20.62% Sales and Accommodation Taxes 42.28% Other Taxes 3.43% Charges for Services 5.51% Investment Earnings 0.99% Miscellaneous 8.23% Grants 2.97% Intergovernmental 3.16% $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 Mobility Fleet Maintenance Expenses Program Revenues 9 Revenues by Source – Business-type Activities Financial Analysis of the Town’s Funds The following schedule presents a summary of governmental fund revenues for the year ended December 31, 2020 and the amount and percentage of increases and decreases in relation to the prior year. Revenues 2020 Amount Percent of Total 2019 Amount Amount of Increase (Decrease) Percent Increase (Decrease) Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Investment Earnings Other Revenues $22,026,470 388,494 1,781,733 1,173,521 39,693 288,927 2,367,398 78.48% 1.38% 6.35% 4.18% 0.14% 1.03% 8.44% $20,656,630 752,345 1,156,632 2,181,861 51,535 549,998 838,635 $ 1,369,840 (363,851) 625,101 (1,008,340) (11,842) (261,071) 1,528,763 6.63% (48.36%) 54.04% (46.21%) (22.98%) (47.47%) 182.29% Total $28,066,236 100.00% $26,187,636 $ 1,878,600 Tax revenues increased by $1,369,840 from the prior year. Property tax collections increased by $244,275 due to 9.35% increase in assessed values from $208,910,930 in 2019 to $228,439,560 in 2020. The general operating mill rate for the Town remained the same at 8.956 mills. Property tax increment revenues from the Avon Urban Renewal Authority increased by $181,615 from the prior year due to an increase in the value of the tax increment of $2,725,760. Sales taxes increased by $67,593 or .74% from the previous year while accommodations taxes Charges for Services 41.37% Operating Grants 14.75%Property Taxes 0.95% Contributions and Transfers In 42.93% 10 were lower by $269,055 or 18.10%. Retail sales fees (classified as a tax) from a .75% public improvement fee collected within the Village at Avon PUD increased by $66,540. The Town also collects a 2% tax from all transfers of real property within the Town. These revenues are dedicated solely for capital improvement projects. Real estate transfer tax collections increased by $997,805 or 19.95% in 2020 This is after a 38% increase in 2019. The five-year average for real estate transfer taxes is now over $4.5 million per year. 2020 was the second year for the levy and collection of cigarette and tobacco taxes. Cigarette taxes, which are based on a $3 excise tax per pack sold, were up 32.59% from the prior year, or $61,690. Tobacco taxes, which are levied at a tax rate of 40%, increased by $68,891 or 47.2%. License and permit revenues decreased by $363,851 from the previous year. Construction permit values decreased $51,337,248 in total from the prior year with commercial permits valued at $14,430,422 and residential construction valued at $10,341,682. Building permit fees, business licenses and contractors licenses all decreased from the prior year. Intergovernmental revenues increased in 2020 by $625,101. This increase was due to CARES Act grant funds received in the amount of $713,837 for reimbursement of COVID-19 related pandemic expenditures. Charges for services decreased $1,008,340 due to various shutdowns and general decreases in activity due to the COVID-19 pandemic, the largest of which was the shutdown of the Avon Recreation Center and the implementation of protocols that drastically impacted the volume of Recreation Center customers. Total recreation-related decreases were $640,883. Other decreases included $217,461 in water tap fees, $54,454 in special event-related fees and charges, and $78,937 in plan check and design review fees. Investment earnings increased in 2020 by $261,071 due to a reduction in interest rates by the federal reserve in response to the COVID-19 pandemic which also had the effect of shortening the length of maturities in investments in U.S Government Treasury and Agency securities and increasing the amount of funds invested in Colotrust, the local government investment pool the Town utilizes for its short-term investments and reserves. Other revenues increased by $1,528,763 due to the sale of the Town’s interest in Buffalo Ridge II LLLP in the amount of $1.5 million. The following schedule presents a summary of governmental fund expenditures for the year ended December 31, 2020 and the amount and percentage of increases and decreases in relation to the prior year. 11 Expenditures 2020 Amount Percent of Total 2019 Amount Amount of Increase (Decrease) Percent Increase (Decrease) Current: General Government Community Development Public Safety Public Works and Utilities Parks and Recreation Capital Improvements Debt Service: Principal Interest Bond Issuance Costs Fiscal Charges $ 5,522,841 500,739 4,050,935 4,067,683 1,311,887 2,111,194 1,414,010 429,221 113,525 7,084 28.28% 2.56% 20.74% 20.83% 6.72% 10.81% 7.24% 2.20% 0.58% 0.04% $ 4,982,737 521,129 3,984,465 4,397,725 1,703,007 3,532,547 1,335,902 624,162 - 10,060 $ 540,104 (20,390) 66,470 (330,042) (391,120) (1,421,353) 78,108 (194,941) 113,525 (2,976) 10.84% (3.91%) 1.67% (7.50%) (22.97%) (40.24%) 5.85% (31.23%) N/A (29.58%) Total $19,529,119 100.00% $21,091,734 $ (1,562,615) Overall, total governmental fund expenditures decreased by a net amount of $1,562,615 in 2020. In response to the COVID-19 pandemic, a number of operating budget reductions were instituted including personnel layoffs and eliminations of positions, a freeze on salary increases, deferral of equipment replacement charges, elimination of special events and other reductions in operating costs. Additional costs in response to COVID-19 that were reimbursed by the CARES Act totaled $713,837 which offset many of the other reductions stated above. In addition, capital improvement projects declined by $1,421,353 due largely to impacts create3d by the pandemic. Capital improvement projects completed during the 2020 year included installation of two electric vehicle charging stations, completion of security upgrades to New Town Hall, installation of park benches in Nottingham Park, and street resurfacing and asphalt overlays on Eaglebend Dr. and Yoder Ave. At the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $25,620,630, an increase of $5,888,703 from the prior year. Of this total, $2,373,593 is restricted due to external limitations on its use such as legal restrictions, or intention of grantors, donors, or trustees. A total of $13,823,213 has been committed or assigned meaning there are limitations resulting from its intended use, such as construction of capital assets, community housing, and for other purposes. The remaining $9,423,824 is unassigned and can be used for any lawful purpose. General Fund. The General Fund is the chief operating fund of the Town. At the end of the current fiscal year, unassigned fund balance of the General Fund is $9,373,237, while total fund balance is $10,202,887. As a measure of the General Fund’s liquidity, it is useful to compare the unassigned fund balance and total fund balance to total fund expenditures and other financing sources. Unassigned fund balance represents 56.2% of total fund expenditures and other financing uses, while total fund balance represents 61.1% of that same amount. The fund balance of the General Fund increased by $2,004,352, or 24%, in 2020. This increase is due largely to the reduction in operating expenditure as discussed above. 12 The fund balance of the General Fund represents 57.3% of 2021 General Fund appropriations or the equivalent of almost 7 months of operations. The Town has felt it necessary to retain this level of fund balance because of its heavy reliance on sales tax revenues. The Town’s position as a resort community also places a heavy reliance upon several other factors including weather, the national economy, and tourism in general. The Town’s fund balance provides the resources necessary to be more adaptable to the short-term financial environment and limits the need for capital financing. Avon Urban Renewal Fund. At the end of the current fiscal year, the Avon Urban Renewal Fund had an ending fund balance of $22,942. This amount is unassigned. The fund transferred $700,000 to the Capital Projects Fund to be used for Tract G projects in the future. Fund balance decreased by $576,047 in 2020 due to the use of existing bond reserves in refunding the Series 2013 Tax Increment Revenues Bonds. Debt Service Fund. The Debt Service Fund has a fund balance at the end of the fiscal year of $27,645, all of which is restricted for the payment of debt service. This amount is unassigned. Fund balance decreased by $506,208 in 2020 due to the use of existing bond reserves in refunding the Series 2010 Certificates of Deposit. Capital Projects Fund. The Capital Project Fund has an ending fund balance at the end of the fiscal year of $12,101,243, an increase of $3,378,892 from the prior year. This substantial increase is due to larger than anticipated real estate transfer taxes collected during the year. Restricted fund balances represent escrowed monies for future asphalt repairs pursuant to a lawsuit settlement in the amount of $657,821. The remaining amount of $11,443,422 is committed entirely to capital improvement projects. Non-major Funds. The aggregate non-major funds have a combined fund balance of $3,265,913. The net increase in fund balance during the current fiscal year in the aggregate non- major funds was $1,587,714. The Community Housing Fund had a large positive net change in fund balance of $1,333,263 that was the result of the sale of the Town’s interest in Buffalo Ridge II LLLP. General Fund Budgetary Highlights The 2020 budget was guided by the 2020 Town of Avon Strategic Plan, which was updated during the 2020 budget process. The Strategic Plan was developed to help guide decision- making for ensuring that investments and programs reflect Council priorities in achieving the vision and adopted plans of the Town of Avon. The 2020 budget has been developed to address priorities identified in the Strategic Plan with major emphasis on the following: • Improve and enhance Avon's community engagement practices in order to increase community participation, including (1) improving the Town's community survey, (2) enhancements to the avon.org website, (3) implementing a Spanish proficiency initiative, (4) creating a new owner information letter, (5) creating a Finance Committee and a Health and Recreation Committee. • Continue to implement the goals and objectives of the 2018 Avon Community Housing Plan. 13 • Plan, design, and construct various improvement to Nottingham Park as identified in the Capital Improvement Program, including public restrooms at Old Town Hall site, expanded North access, beach area restrooms, landscape enhancements, and field improvements. • Continue to implement the priorities from the 2016 Town of Avon Climate Action Plan which will help Avon achieve the goal of reducing greenhouse gas emissions by 25% by the year 2025. • Invest in multi-modal improvements prioritizing walkability and bicycle use, transit- oriented development, parking, and wayfinding. A number of budget changes are typically made throughout the year and at the Town’s adoption of its final revised budget in December. For the most part these changes are very minor and the increases and decreases are offsetting. The year 2020 was different in that several significant budget revisions were made in May 2021 in response to the COVID-19 pandemic. The difference between the original budget and the final amended budget resulted in a decrease of $1,098,111 in appropriations and a decrease of $694,104 in estimated revenues from the original budget. In the General Fund, actual revenues exceeded estimates by a total of $912,964. Sales tax revenues ended the year with an increase of 0.11% over the prior year. Departmental expenditures ended the year under the final revised budget by a net total of $842,201. Capital Assets and Debt Administration Capital assets. The Town of Avon’s investment in capital assets for its governmental and business-type activities as of December, 31, 2020, amounts to $86,890,649 (net of accumulated depreciation). This investment in capital assets includes land, land improvements, public art, water rights, construction in progress, buildings and building improvements, utility systems, machinery and equipment, and infrastructure (see table below). The total decrease in the Town’s investment in capital assets for the current fiscal year was 4.4% (a 4.4% decrease for governmental activities and a 4.1% decrease for business-type activities). Major capital assets events during the current fiscal year included the following: • Governmental-type asset additions totaled $2,649,782 in 2020. Business-type additions totaled $22,000. • Three projects began the year under Construction-in-Progress: (1) Fiber – Pavilion to New Town Hall; (2) Pavilion Retractable Door; and (3) Benchmark Dr. On-Street Parking. During the year ended December 31, 2020, two of these projects (Items 1 and 2) were completed and capitalized at a total cost of $883,662. • Other capital improvement projects completed during the 2020 year included two electric vehicle charging stations ($56,425), and installation of park benches in Nottingham Park ($26,000). • In Business-type activities, two used busses were purchased in the Mobility Fund at a cost of $22,000 to be used to satisfy social distancing protocols for transit operations. 14 • In the Equipment Replacement Fund a total of $496,561 in equipment was capitalized including $46,562 in new athletic and fitness equipment, one new police patrol vehicle and one administrative vehicle ($95,879), computer and audio/visual equipment ($81,509) and various other machinery and equipment totaling $124,587. Town of Avon’s Capital Assets (net of depreciation) Governmental Activities Business-type Activities Total 2020 2019 2020 2019 2020 2019 Land Public Art Water Rights Construction in Progress Depreciable Land Improv. Buildings Utilities Mach. & Equip. Infrastructure $ 11,449,801 1,361,400 1,792,959 618,412 - 16,959,583 2,650,844 2,854,785 36,904,147 $ 11,640,671 1,361,400 1,792,959 336,340 - 17,573,287 2,877,759 3,166,119 39,313,045 $ 411,834 - - - - 11,096,905 - 789,979 - $ 411,834 - - - - 11,130,927 - 1,285,610 - $11,861,635 1,361,400 1,792,959 618,412 - 28,056,488 2,650,844 3,644,764 36,904,147 $12,052,505 1,361,400 1,792,959 336,340 - 28,704,214 2,877,759 4,451,729 39,313,045 Total $74,591,931 $78,061,580 $12,298,718 $12,828,371 $86,890,649 $90,889,951 Additional information on the Town of Avon’s capital assets can be found in Note 4 on pages 40-41 of this report. Long-term debt. At the end of the current fiscal year, the Town of Avon had total long-term debt outstanding in the amount of $17,329,223. Certificates of Participation which evidence assignments of proportionate interests in the right to receive payments pursuant to annually renewable lease agreements total $11,361,000. The remainder of the Town’s debt, $5,968,223 represents bonds secured solely by specified revenue sources (i.e. revenue bonds). Town of Avon’s Outstanding Debt Governmental Activities Business-type Activities Total 2020 2019 2020 2019 2020 2019 Revenue Bonds Certificates of Participation $ 5,968,223 9,535,000 $ 7,053,286 10,395,000 $ - 1,826,000 $ - 2,170,000 $ 5,968,223 11,361,000 $ 7,053,286 12,565,000 Total $15,503,223 $17,448,286 $ 1,826,000 $ 2,170,000 $17,329,223 $19,618,286 The Town of Avon’s long-term debt decreased by a net amount of $2,289,063 during the current fiscal year. Regular principal payments were made on bonded debt of $1,564,010. Two existing bonds were defeased by issuing new bonds at lower interest rates resulting in an economic gain of $816,857 and cash flow savings of $2,110,792. No other new debt was issued in 2020. The Avon Town Charter limits the amount of general obligation debt the Town may issue to 25% of assessed valuation of all taxable property within the Town, or $15 million, whichever is greater. The current legal debt margin for the Town is $57,092,328. The Town has no outstanding general obligation bonds outstanding as of December 31, 2020. In addition, the Town’s total debt per capita is $2,743. Additional information on the Town’s long-term debt can be found in Note 5 on pages 41-47 of this report. 15 Economic Factors and Next Year’s Budget and Rates 2021 Budget Highlights CORONAVIRUS PANDEMIC: The Pandemic is the most significant influencer of the 2021 budget such that projections of revenues were speculative and directly dependent upon public health orders and visitor confidence to travel to Avon. Significant increases in expenditures were planned for Town operations to comply with public health orders and to provide a safe work environment, and budgeted expenditures exceed projected revenues in order to maintain a consistent level of municipal services in 2021. LEVEL OF SERVICE: Council places a high priority on maintaining the existing level of municipal services in 2021 for the purpose of community stability and support of the local economy. All levels of service and staffing to support those levels of service remain the same as 2020. Transit: Avon budgeted for substantial increases in transit services in order to provide a comparable level of skier bus service considering the severe limitations on capacity established by Colorado Public Health and Environment and Colorado Department of Transportation. Public transit mandates by the State of Colorado limit capacity to 50% of existing seats, which reduces full-seated and standing-room capacity of each bus by 75%. Avon purchased two additional busses and plans to roughly quadruple the number of busses operating during peak morning and afternoon periods to connect to the Beaver Creek Ski Resort. The Skier Bus transit operation is an essential link in the winter economy for the lodging, restaurant and retail businesses in Avon. Changes for 2021 include the addition of a full-time Transit Supervisor position, additional bus drivers and additional hours of bus operations. Building Department: Despite the Pandemic, or due to the Pandemic, Avon is experiencing significant large-scale construction and real estate activity. Avon is seeking to improve our Building Inspection services with an increase from a part-time Building Permit Technician to a full-time certified Building Permit Technician position. Public Works: A master gardener position is added for 2021 in order to provide more dedicated and focused attention to the Town’s streetscape plantings and park plantings. Avon has expanded and upgraded its streetscapes over the last couple years, including the Beaver Creek Boulevard improvements finished last year. In addition, Avon is constructing and installing significant improvements throughout Nottingham Park over the next two years which will include expanded areas of enhanced landscaping. GENERAL FUND: Due to a decrease in projected revenues and maintenance of existing levels of service, General Fund expenditures ($17,814,663) are budgeted to exceed projected revenues ($16,857,754) by $956,909. Estimated beginning of year fund balances are $8,447,722 and end of year fund balances are projected at $7,490,813. The Town can manage deficit spending in 2021 as a result of maintaining healthy fund balances. The Town’s budgetary policies require setting aside fund balance reserves of 27% of expenditures for operations and 3% for TABOR emergencies. 16 The Town’s net assessed valuation decreased slightly by 0.31% in 2021, to a total gross value of 228,369,310 down from $228,439,560 the previous year. The Town’s mill rate for general operating purposes will remain at 8.956 mills. The Town does not have a debt service mill levy. Sales tax revenues for 2021 are projected to decrease by 2% or $119,942 over the final revised 2020 estimates, which were revised down by $270,295, or 3% from the original adopted 2020 budget. Despite these projections, the Town has begun to realize additional sales tax revenues resulting from changes in regulations at the Colorado Dept. of Revenue that state that sales tax must be collected and remitted on the jurisdiction's tax rate at the point of delivery for the taxable good when taxable goods are delivered to a Colorado address outside the retailer's jurisdiction. Also being realized are additional sales taxes from out-of-state merchants who voluntarily license with and remit sales tax based on economic nexus with the Town, as defined by the recent Supreme Court case, Wayfair vs. South Dakota. The Town’s total 2021 appropriations for all funds equals $36,528,310. Total estimated revenues for 2021 are $30,714,619 and estimated total ending fund balances are $16,726,763. Requests for Information This financial report is designed to provide a general overview of the Town of Avon’s finances for all those with an interest in the Town’s fiscal management. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, Town of Avon, Colorado, PO Box 975, Avon, CO 81620. Scott Wright, CPA, CPFO Asst. Town Manager / Finance Director 17 THIS PAGE INTENTIONALLY LEFT BLANK 18 TOWN OF AVON, COLORADO STATEMENT OF NET POSITION DECEMBER 31, 2020 Governmental Business-type Activities Activities Total ASSETS Cash and Cash Equivalents 20,818,493$ 469,527$ 21,288,020$ Investments 6,806,133 - 6,806,133 Receivables 8,930,946 202,687 9,133,633 Internal Balances 100,000 (100,000) - Prepaid Expenses - 154,850 154,850 Inventory - 487,777 487,777 Restricted Assets - Cash and Cash Equivalents 657,821 - 657,821 Capital Assets, net of accumulated depreciation: Nondepreciable 15,222,572 411,834 15,634,406 Depreciable 59,369,359 11,886,884 71,256,243 Total Assets 111,905,324 13,513,559 125,418,883 DEFERRED OUTFLOW OF RESOURCES Deferred Charge on Refunding of Debt 143,640 17,663 161,303 LIABILITIES Accounts Payable 791,185 89,254 880,439 Accrued Liabilities 276,915 56,886 333,801 Retainages Payable 4,200 - 4,200 Accrued Interest Payable 32,796 1,872 34,668 Deposits and Reserves 1,894,138 - 1,894,138 Noncurrent Liabilities: Due Within One Year 1,940,345 316,602 2,256,947 Due In More Than One Year 14,590,432 1,809,968 16,400,400 Total Liabilities 19,530,011 2,274,582 21,804,593 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue: Property Taxes 2,045,276 41,976 2,087,252 NET POSITION Net Investment in Capital Assets 58,743,303 10,299,819 69,043,122 Restricted For: Emergencies 829,650 - 829,650 Capital Improvements 657,821 - 657,821 Purposes of Grantors 886,122 - 886,122 Unrestricted 29,356,781 914,845 30,271,626 Total Net Position 90,473,677$ 11,214,664$ 101,688,341$ The accompanying notes are an integral part of the financial statements. 19 TOWN OF AVON, COLORADO STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2020 Operating Capital Charges for Grants and Grants and Functions/Programs Expenses Services Contributions Contributions Governmental Activities: General Government 6,274,190$ 197,989$ 720,552$ -$ Community Development 513,004 421,822 - - Public Safety 4,466,597 41,786 101,100 2,206 Public Works and Utilities 8,245,335 195,682 - 35,000 Recreation 1,814,889 744,429 4,500 - Interest and Fiscal Charges on Long-term Debt 538,010 - - - Total Governmental Activities 21,852,025 1,601,708 826,152 37,206 Business-type Activities: Mobility 2,325,260 372,687 646,470 - Fleet Maintenance 1,784,854 1,440,445 - - Total Business-type Activities 4,110,114 1,813,132 646,470 - Total Primary Government 25,962,139$ 3,414,840$ 1,472,622$ 37,206$ General Revenues: Property Taxes Real Estate Transfer Taxes Sales and Accommodation Taxes Other Taxes Unrestricted Investment Earnings Grants and Contributions Not Restricted to Specific Programs Miscellaneous Contributions and Transfers Total General Revenues and Transfers Increase (Decrease) in Net Position Net Position - Beginning of Year Net Position - End of Year The accompanying notes are an integral part of the financial statements. Program Revenues 20 Governmental Business-type Activities Activities Total (5,355,649)$ -$ (5,355,649)$ (91,182) - (91,182) (4,321,505) - (4,321,505) (8,014,653) - (8,014,653) (1,065,960) - (1,065,960) (538,010) - (538,010) (19,386,959) - (19,386,959) - (1,306,103) (1,306,103) - (344,409) (344,409) - (1,650,512) (1,650,512) (19,386,959) (1,650,512) (21,037,471) 3,727,486 41,633 3,769,119 5,998,950 - 5,998,950 11,303,195 - 11,303,195 996,839 - 996,839 288,927 - 288,927 918,375 - 918,375 2,392,866 - 2,392,866 (1,881,716) 1,881,716 - 23,744,922 1,923,349 25,668,271 4,357,963 272,837 4,630,800 86,115,714 10,941,827 97,057,541 90,473,677$ 11,214,664$ 101,688,341$ Net (Expense) Revenue and Changes in Net Position 21 TOWN OF AVON, COLORADO BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31, 2020 Avon Urban Debt Capital General Renewal Service Projects Fund Fund Fund Fund ASSETS Cash and Cash Equivalents 6,432,035$ 23,562$ 29,145$ 8,017,900$ Investments 3,543,666 - - 3,262,467 Receivables: - Interest 18,516 - - 23,903 - Taxes 4,245,779 - - 471,909 - Accounts 29,684 - - - - Intergovernmental 434,004 - - 35,000 - Employees 8,765 - - - Due from Other Funds 100,000 - - - Notes Receivable - - - - Restricted Assets - Cash and Cash Equivalents - - - 657,821 Total Assets 14,812,449$ 23,562$ 29,145$ 12,469,000$ LIABILITIES Accounts Payable 404,670$ 620$ 1,500$ 363,557$ Accrued Liabilities 267,478 - - - Retainages Payable - - - 4,200 Deposits and Reserves 1,892,138 - - - Total Liabilities 2,564,286 620 1,500 367,757 DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Notes Receivable - - - - Unavailable Revenue - Property Taxes 2,045,276 - - - Total Deferred Inflows of Resources 2,045,276 - - - FUND BALANCES Restricted For: Emergencies 829,650 - - - Water Projects - - - - Community Enhancement - - - - Capital Improvements - - - 657,821 Committed For: Capital Improvements - - - 11,443,422 Exterior Energy Offset Programs - - - - Waste Reduction Programs - - - - Assigned For: Community Housing - - - - Unassigned 9,373,237 22,942 27,645 - Total Fund Balances 10,202,887 22,942 27,645 12,101,243 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 14,812,449$ 23,562$ 29,145$ 12,469,000$ The accompanying notes are an integral part of the financial statements. 22 RECONCILIATION OF TOTAL GOVERNMENTAL FUND BALANCE TO NET POSITION OF GOVERNMENTAL ACTIVITIES DECEMBER 31, 2020 Other Governmental Funds Total 3,141,024$ 17,643,666$ Total Governmental Fund Balances 25,620,630$ - 6,806,133 Amounts reported for governmental activities in the - 42,419 Statement of Net Position are different because: - 4,717,688 85,074 114,758 Capital assets used in governmental activities are not financial 53,217 522,221 resources and therefore are not reported as an asset in the - 8,765 governmental funds. - 100,000 - Capital assets 137,059,821 2,786 2,786 - Accumulated depreciation (66,578,145) - 657,821 70,481,676 3,282,101$ 30,616,257$ Some liabilities, including bonds, notes and leases payable, and compensated absences are not due and payable in the current period and therefore are not reported as liabilities in the governmental funds. 1,965$ 772,312$ - Tax Increment Revenue Bonds payable (5,968,223) 9,437 276,915 - Certificates of Participation payable (9,535,000) - 4,200 - Unamortized bond premium (252,797) 2,000 1,894,138 - Compensated absences payable (538,509) (16,294,529) 13,402 2,947,565 Notes receivable are not available to pay for current period expenditures and are deferred in the governmental funds.2,786 2,786 2,786 - 2,045,276 Long-term receivables which are not available to pay for current period expenditures and are not reported in the governmental funds.3,522,309 2,786 2,048,062 Deferred outflows of resources are not available to pay for current period expenditures and therefore are deferred in the funds. - Deferred Charge on Refunding of Debt 143,640 - 829,650 638,649 638,649 Accrued interest payable is recognized for governmental activities 247,473 247,473 but is not due and payable in the current period and therefore is not - 657,821 reported as a liability in the governmental funds.(32,796) - 11,443,422 The internal service fund is used by management to charge the rental 112,804 112,804 cost of certain vehicles and equipment to individual funds. The assets 101,130 101,130 and liabilities of the internal service fund is included in governmental activities in the statement of net position.7,029,961 2,165,857 2,165,857 - 9,423,824 Net Position of Governmental Activities 90,473,677$ 3,265,913 25,620,630 3,282,101$ 30,616,257$ 23 TOWN OF AVON, COLORADO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 Avon Urban Debt Capital General Renewal Service Projects Fund Fund Fund Fund Revenues Taxes 14,459,430$ 1,568,090$ -$ 5,998,950$ Licenses and Permits 328,734 - - - Intergovernmental 1,746,733 - - 35,000 Charges for Services 933,625 - - - Fines and Forfeitures 39,693 - - - Investment Earnings 189,169 3,503 3,624 92,480 Other Revenues 745,113 - - 770 Total Revenues 18,442,497 1,571,593 3,624 6,127,200 Expenditures Current: General Government 4,968,825 60,018 - - Community Development 488,739 - - Public Safety 4,050,935 - - - Public Works and Utilities 3,990,073 - - - Recreation 1,311,887 - - - Capital Improvements - - - 2,111,194 Debt Service: Principal - 636,063 703,000 74,947 Interest - 122,619 299,550 7,052 Bond Issuance Costs - 66,760 46,765 - Fiscal Charges - 700 6,384 - Total Expenditures 14,810,459 886,160 1,055,699 2,193,193 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,632,038 685,433 (1,052,075) 3,934,007 Other Financing Sources (Uses) Refunding Bond Proceeds - 4,111,000 1,973,000 - Payments to Refunded Bond Escrow Agent - (4,672,480) (2,178,218) - Transfers In 247,314 - 1,007,801 700,000 Transfers Out (1,875,000) (700,000) (256,716) (1,255,115) Total Other Financing Sources (Uses)(1,627,686) (1,261,480) 545,867 (555,115) Net Change in Fund Balances 2,004,352 (576,047) (506,208) 3,378,892 Fund Balances, Beginning of Year 8,198,535 598,989 533,853 8,722,351 Fund Balances, End of year 10,202,887$ 22,942$ 27,645$ 12,101,243$ The accompanying notes are an integral part of the financial statements. 24 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2020 Other Net change in fund balances - Total Governmental Funds 5,888,703$ Governmental Funds Total Amounts reported for governmental activities in the Statement of Activities are different because: -$ 22,026,470$ 59,760 388,494 Governmental funds report capital outlays as expenditures. However, - 1,781,733 for governmental activities, those capital outlays other than 239,896 1,173,521 noncapitalizable items are shown in the Statement of Activities and the - 39,693 cost of those assets is allocated over their estimated useful lives and 151 288,927 reported as depreciation expense: 1,621,515 2,367,398 - Capital outlay 1,226,713 - Depreciation (4,194,569) 1,921,322 28,066,236 (2,967,856) Expenses reported in the Statement of Activities that do not require the use of current financial resources are not reported as expenditures 493,998 5,522,841 in governmental funds. 12,000 500,739 - Change in compensated absences payable (128,296) - 4,050,935 - Change in accrued interest payable on outstanding bonds 15,207 77,610 4,067,683 - Amortization of bond premium 13,671 - 1,311,887 - Amortization of deferred charge on refunding (17,058) - 2,111,194 (116,476) - 1,414,010 Payment received on affordable housing notes receivable are reported - 429,221 as revenue in the governmental funds, but the repayment reduces - 113,525 notes receivable in the Statement of Net Position (3,589) - 7,084 The issuance of long-term debt provides current financial resources to 583,608 19,529,119 governmental funds, while the repayment of principal of long-term debt consumes the current financial resouces of governmental funds. Neither transaction has any effect on net position. Also, governmental funds 1,337,714 8,537,117 report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activites. - 6,084,000 Debt Issued or Incurred: - (6,850,698) - Issuance of Debt (6,084,000) 250,000 2,205,115 - Deferred charge on refunding 160,698 - (4,086,831) Principal Repayments: - Current debt 1,339,063 250,000 (2,648,414) - Refunded debt 6,690,000 2,105,761 1,587,714 5,888,703 The internal service fund is used by management to charge the rental 1,678,199 19,731,927 cost of certain vehicles and equipment to individual funds. The decrease in net position of the internal service fund is included in3,265,913$ 25,620,630$ governmental activities.(548,580) Change in Net Positon of Governmental Activities 4,357,963$ 25 TOWN OF AVON, COLORADO STATEMENT OF NET POSITION PROPRIETARY FUNDS DECEMBER 31, 2020 Governmental Fleet Activities - Mobility Maintenance Internal Fund Fund Totals Service Fund ASSETS Current Assets: Cash and Cash Equivalents 460,400$ 9,127$ 469,527$ 3,174,827$ Receivables: - Taxes 41,976 - 41,976 - - Accounts 17,685 17,685 - Intergovernmental - 143,026 143,026 - Deferred Expense 154,850 - 154,850 - Due From Other Funds 200,000 - 200,000 - Inventory - 487,777 487,777 - Total Current Assets 874,911 639,930 1,514,841 3,174,827 Noncurrent Assets: Capital Assets: - Land 281,450 130,384 411,834 - - Buildings 11,239,736 5,639,287 16,879,023 3,154,195 - Machinery and Equipment 3,018,810 302,608 3,321,418 7,153,077 - Accumulated Depreciation (4,860,906) (3,452,651) (8,313,557) (6,197,017) Total Noncurrent Assets 9,679,090 2,619,628 12,298,718 4,110,255 Total Assets 10,554,001 3,259,558 13,813,559 7,285,082 DEFERRED OUTFLOW OF RESOURCES Deferred Charge on Refunding of Debt - 17,663 17,663 - Total Deferred Outflow of Resources - 17,663 17,663 - LIABILITIES Current Liabilities: Accounts Payable 17,585 71,669 89,254 18,873 Accrued Liabilities 37,275 19,611 56,886 - Accrued Interest Payable - 1,872 1,872 - Compensated Absences Payable 52,551 57,457 110,008 - Due to Other Funds - 300,000 300,000 - Certificates of Participation - Current - 171,000 171,000 - Capital Leases Payable - Current 35,594 - 35,594 76,647 Total Current Liabilities 143,005 621,609 764,614 95,520 Noncurrent Liabilities: Certificates of Participation - 1,655,000 1,655,000 - Capital Leases Payable 154,968 - 154,968 159,601 Total Noncurrent Liabilities 154,968 1,655,000 1,809,968 159,601 Total Liabilities 297,973 2,276,609 2,574,582 255,121 DEFERRED INFLOWS OF RESOURCES Property Tax Revenue 41,976 - 41,976 - Total Deferred Inflows of Resources 41,976 - 41,976 - NET POSITION Net Investment in Capital Assets 9,488,528 811,291 10,299,819 3,874,007 Unrestricted 725,524 189,321 914,845 3,155,954 Total Net Position 10,214,052$ 1,000,612$ 11,214,664$ 7,029,961$ The accompanying notes are an integral part of the financial statements. Business-Type Activities - Enterprise Funds 26 TOWN OF AVON, COLORADO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 Governmental Fleet Activities - Mobility Maintenance Internal Fund Fund Totals Service Fund Operating Revenues: Charges for Services 263,715$ 1,440,345$ 1,704,060$ -$ Other Operating Revenues 108,972 100 109,072 29,057 Total Operating Revenues 372,687 1,440,445 1,813,132 29,057 Operating Expenses: Cost of Operations 1,906,797 1,547,440 3,454,237 291 Depreciation and Amortization 411,125 140,528 551,653 802,678 Total Operating Expenses 2,317,922 1,687,968 4,005,890 802,969 Operating Income (Loss)(1,945,235) (247,523) (2,192,758) (773,912) Nonoperating Revenues (Expenses): Taxes 41,633 - 41,633 - Operating Grants 646,470 - 646,470 - Gain (Loss) on Disposal of Capital Assets - - - 25,798 Bond Issuance Costs - (47,585) (47,585) - Interest Expense (7,338) (49,301) (56,639) - Total Nonoperating Revenues (Expenses)680,765 (96,886) 583,879 25,798 Income (Loss) Before Contributions and Transfers (1,264,470) (344,409) (1,608,879) (748,114) Capital Contributions and Transfers Contributed Capital In (Out)- - - 199,534 Transfers In (Out)1,150,000 731,716 1,881,716 - Total Capital Contributions and Transfers 1,150,000 731,716 1,881,716 199,534 Change in Net Position (114,470) 387,307 272,837 (548,580) Net Position, Beginning of Year 10,328,522 613,305 10,941,827 7,578,541 Net Position, End of Year 10,214,052$ 1,000,612$ 11,214,664$ 7,029,961$ The accompanying notes are an integral part of the financial statements. Business-Type Activities - Enterprise Funds 27 TOWN OF AVON, COLORADO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 Governmental Fleet Activities - Mobility Maintenance Internal Fund Fund Totals Service Fund Cash Flows From Operating Activities Cash Received from Customers and Users 262,063$ 639,649$ 901,712$ -$ Cash Received from Interfund Services Provided - 758,362 758,362 - Cash Payments to Suppliers (498,705) (590,399) (1,089,104) (24,535) Cash Payments to Employees (987,755) (910,008) (1,897,763) - Cash Payments for Interfund Services Used (352,875) (4,524) (357,399) - Other Operating Revenues 108,972 33,192 142,164 29,057 Net Cash Provided by (Used in) Operating Activities (1,468,300) (73,728) (1,542,028) 4,522 Cash Flows From Noncapital Financing Activities Taxes Received 41,633 - 41,633 - Grants Received 646,470 - 646,470 - Net Borrowings (To) From Other Funds 152,500 (152,500) - - Transfers In from Other Funds 1,150,000 731,716 1,881,716 - Net Cash Provided by Noncapital Financing Activities 1,990,603 579,216 2,569,819 - Cash Flows From Capital Financing Activities Acquisition and Construction of Capital Assets (22,000) - (22,000) (223,952) Proceeds from Sales of Capital Assets - - - 73,451 Proceeds from Refunding Bonds - 2,010,000 2,010,000 - Payments to Refunded Bond Escrow Agent - (2,219,131) (2,219,131) - Payments for Bond Issuance Costs - (47,585) (47,585) - Interest Paid on Long-term Debt (7,338) (55,899) (63,237) - Principal Paid on Long-term Debt (34,417) (184,000) (218,417) - Net Cash Used in Capital Financing Activities (63,755) (496,615) (560,370) (150,501) Net Increase (Decrease) in Cash and Cash Equivalents 458,548 8,873 467,421 (145,979) Cash and Cash Equivalents, Beginning of Year 1,852 254 2,106 3,320,806 Cash and Cash Equivalents, End of Year 460,400$ 9,127$ 469,527$ 3,174,827$ The accompanying notes are an integral part of the financial statements. Business-Type Activities - Enterprise Funds 28 Governmental Fleet Activities - Transit Maintenance Internal Fund Fund Totals Service Fund RECONCILIATION OF OPERATING LOSS TO NET CASH USED IN OPERATING ACTIVITIES Operating Loss (1,945,235)$ (247,523)$ (2,192,758)$ (773,912)$ Adjustments to Reconcile Operating Loss to Net Cash Provided by (Used in) Operating Activities Depreciation and Amortization 411,125 140,528 551,653 802,678 Change in Assets and Liabilities: Increase in Accounts Receivable (17,685) - (17,685) - (Increase) Decrease in Intergov. Receivable 16,033 (9,242) 6,791 - Increase in Deferred Expense 37,863 - 37,863 - Decrease in Inventory - 41,258 41,258 - Increase (Decrease) in Accounts Payable 1,141 (22,297) (21,156) (24,244) Increase in Accrued Liabilities 12,643 1,624 14,267 - Increase in Compensated Absences Payable 15,815 21,924 37,739 - Total Adjustments 476,935 173,795 650,730 778,434 Net Cash Provided by (Used in) Operating Activities (1,468,300)$ (73,728)$ (1,542,028)$ 4,522$ NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Noncash Transactions Affecting Financial Position Contributions of Capital Assets from Governmental Activities -$ -$ -$ 124,587$ Capital Assets Disposed - - - (47,653) Principal on Capital Leases Paid from Governmental Activities - - - 74,947 Amortization of Deferred Charge on Refunding of Debt - 1,779 1,779 - Amortization of Premium and Gain on Refunding of Debt - (1,953) (1,953) - -$ (174)$ (174)$ 151,881$ Business-Type Activities - Enterprise Funds 29 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 The financial statements of the Town of Avon have been prepared in conformity with generally accepted accounting principles (“GAAP”) as applied to governmental entities. The Governmental Accounting Standards Board (“GASB”) is the accepted standard-setting board for establishing governmental accounting and financial reporting principles. The following notes are an integral part of the Town’s Comprehensive Annual Financial Report. Note 1. Summary of Significant Accounting Policies A. Financial Reporting Entity Primary Government. The Town of Avon, Colorado, was incorporated as a Town on April 24, 1978. On June 13, 1978, the citizenry voted to become a Home Rule City, as authorized by Article 20 of the Colorado State Constitution. The Town operates under a Council- Manager form of government and provides the following services as authorized by its charter: public safety, highways and streets, culture-recreation, public improvements, community development, planning and zoning, transportation, and general administrative services. As required by generally accepted accounting principles, these financial statements present the Town of Avon (the primary government) and its component unit for which the Town is considered financially accountable. Financial accountability exists if the Town appoints a voting majority of an organization’s governing board and is able to impose its will on the organization, or if the organization provided benefits to, or imposes financial burdens upon the Town. Blended component units, although legally separate entities, are, in substance, part of the Town’s operations, so data from these units are combined with data of the Town. The Town’s blended component units are – Avon Urban Renewal Authority – The Avon Urban Renewal Authority (AURA) was created pursuant to Urban Renewal Law of the State of Colorado on June 26, 2007 by Town Resolution No. 07-20 for the purpose of undertaking certain urban renewal activities within the Town. The boundaries of the AURA are coterminous with the boundaries of the Town. The bylaws of the AURA provide that the members of the Avon Town Council shall constitute the Commissioners of the AURA and the Town Manager serves as the Executive Director and Secretary. While the AURA is a separate legal entity, for financial reporting purposes it is blended with the Town’s financial statements and is reported in a special revenue fund as a blended component unit. The Town has a “moral obligation” for the repayment of urban renewal authority bonds. The Town accounts for the collection of tax increment property tax revenues and maintains all accounting records. A separate budget is adopted by the AURA Commissioners. Avon General Improvement District No. 1 – The Town of Avon General Improvement District No. 1 was organized on August 28, 2007, by adoption of Ordinance No. 07-07. The services to be provided within and for the District include transportation and recreation 30 services and include the property known as Lots 1 and 2 of the final plat of the Chateau St. Claire subdivision, now commonly known as the Ascent. The members of the Avon Town Council constitute the Board of the District. The District levies a property tax to be used for transportation operations. Because the governing body of the District is substantively the same as the Town and there is a financial benefit between the District and the Town, for financial reporting purposes the District is blended into the Town’s financial statements and is reported in the Mobility enterprise fund as a blended component unit. Separate budgets and financial statements of the District are not adopted or issued. B. Government-wide and Fund Financial Statements Government-wide Financial Statements. The government-wide financial statements (i.e. the Statement of Net Position and the Statement of Activities) report information on all non- fiduciary activities of the Town (the primary government) and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which primarily rely on fees and charges for support. Generally, interfund activity has been eliminated from the government-wide financial statements except for interfund services provided and used. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or business segment are offset by program revenues and helps identify the extent to which each is self-financing or draws from the general revenues of the Town. Direct expenses are those that are clearly identifiable with a specific function or business segment. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and, 2) grants and contributions that are restricted to meeting the operational or capital requirements of a function or business segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund Financial Statements. Fund financial statements report detailed information about the Town with the focus on major funds rather than on reporting funds by type. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Nonmajor funds are aggregated and presented in a single column. The internal service fund is presented in a single column on the face of the proprietary fund statements. C. Measurement Focus, Basis of Accounting and Financial Statement Presentation Measurement Focus and Basis of Accounting. The government-wide financial statements have been prepared using the economic resources measurement focus and the accrual basis of accounting. This is the same approach used in the preparation of the proprietary fund financial statements. Revenues are recognized when earned and expenses are recognized when the liability is incurred regardless of the timing of related cash flows. Depreciation is 31 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 computed and recorded as an operating expense. Expenditures for property, plant and equipment are shown as increases in assets and redemption of bonds and notes are recorded as a reduction in liabilities. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenue is recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period (60 days). The major sources of revenue which are susceptible to accrual are property taxes, accommodations and sales taxes, and certain intergovernmental revenues. Expenditures generally are recorded when the liability is incurred, as under full accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Financial Statement Presentation – Fund Accounting. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts which are segregated for the purpose of accounting for specific activities. The Town uses funds to report results of operations and financial position, and demonstrate compliance with legal, contractual and regulatory requirements. The Town’s funds are classified into two broad fund categories and six generic fund types for financial reporting purposes: Governmental funds include the general, special revenue, debt service, and capital projects funds. Proprietary funds include enterprise funds and an internal service fund. The Town’s major governmental funds are: • General Fund – This is the Town’s primary operating fund. It is used to account for all activities of the Town not required to be accounted for in some other fund. • Avon Urban Renewal Fund – This fund is used to account for the receipt of tax increment revenues and the activities of redevelopment that are undertaken by the Avon Urban Renewal Authority, including issuing debt and constructing public improvements. • Debt Service Fund – This fund is used to account for the accumulation of resources and payment of principal and interest on the Town’s general obligation and sales tax revenue bonds. • Capital Projects Fund – This fund is used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of all the Town’s enterprise and internal service funds are 32 charges to customers for sales and services. Operating expenses for enterprise and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. The Town’s major proprietary funds are: • Mobility Fund – This fund is used to account for the activities involved in operating the Town’s transportation system. • Fleet Maintenance Fund – This fund is used to account for the accumulation and allocation of costs associated with the maintenance of vehicles and rolling stock for the Town and certain other third-party governmental entities. The Town’s only internal service fund is the Equipment Replacement Fund. This fund is used to account for the rental of certain vehicles and equipment to other departments for the accumulation of funds for future replacement. D. Budget Information Budgets are adopted on a basis consistent with generally accepted accounting principles for all funds, except for proprietary funds which are budgeted on the modified accrual basis of accounting. According to the Town’s Charter, all appropriations except for capital projects or special revenue funds lapse at fiscal year-end. However, as a matter of practice, the Town adopts annual budgets for all funds. During the year, changes may be made to budgets by adoption of supplemental amendments by resolution of the Town Council. E. Assets, Liabilities, and Deferred Outflow/Inflows of Resources Cash, Cash Equivalents, and Investments. The Town concentrates the cash resources of its various funds to facilitate the management of cash. The balance in this concentration account is available to meet the Town’s current operating requirements. Cash resources more than current requirements is invested in various interest-bearing securities and disclosed as part of the Town’s investments. Cash and cash equivalents include amounts in demand deposits as well as short-term investments with a maturity date within 3 months of the date acquired by the Town. Town Charter and Colorado State statutes authorize the Town to invest its excess funds in direct U.S. Government treasury and agency securities, bonds and other obligations of states and political subdivisions, corporate bonds, and local government investment pools. Investments are stated at fair value. The change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. Investment income is recognized when earned. 33 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 Inventories. Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of any governmental fund inventories are recorded as expenditures when consumed rather than when purchased. Restricted Assets. Restricted assets in the amount of $657,821 are reported in the Capital Projects Fund. This consists of $657,821 held in an escrow account with FirstBank for accumulating funds for asphalt overlay in the Village at Avon pursuant to the Town’s lawsuit settlement agreement with Traer Creek Metropolitan District and the developer. When both restricted and unrestricted resources are available for use, it is the Town’s policy to use unrestricted resources first, then restricted, as they are needed. Capital Assets. Capital assets, which include property, plant, equipment, and infrastructure assets are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. It is the Town’s policy to capitalize expenditures with a cost greater than $5,000 and an estimated useful life of more than one year. All purchased capital assets are stated at cost or estimated historical cost if actual historical records are not available. Donated capital assets and donated works of art and similar items are recorded at acquisition value at the date of contribution. Major outlays for capital improvement projects are capitalized as projects are completed. The Town’s infrastructure consists of streets and roads, bridges, storm drainage, water rights and storage, heat recovery system, irrigation ditches, bike paths, and public parking. The costs of normal maintenance and repair that do not add to the value of the asset or extend the estimated useful life are not capitalized but charged to operations as incurred. Depreciation of property, plant and equipment is computed using the straight-line method over the following estimated useful lives: Buildings 10-50 years Utilities 10-50 years Machinery and Equipment 3-15 years Infrastructure 10-100 years Deferred Outflow/Inflows of Resources. Deferred outflow of resources represents the consumption of net position that applies to a future period that will not be recognized as an outflow of the resources (expenditure) until the future period. At the end of the current fiscal year, the Town had a deferred outflow of resources for unamortized deferred refunding losses. In the government-wide and proprietary funds statement of net position deferred charge on refunding of debt is the result of the difference between the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the life of the refunding bonds. Deferred inflows of resources represents an acquisition of net position that applies to a future reporting period that will not be recognized as an inflow of resources (revenue) until 34 that time. The Town has one item that qualifies for reporting in this category: unavailable revenue. Unavailable revenue is reported in the government-wide and proprietary fund statement of net position and in the governmental funds balance sheet. The Town reports unavailable revenue from two sources: property taxes and notes receivable. Unavailable revenue - notes receivable arises only under a modified accrual basis of accounting and as such is only reported in the governmental funds balance sheet. Unavailable revenue – property taxes is reported in the government-wide and proprietary funds statement of net position and in the governmental funds balance sheet. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. Deferred outflows of resources are presented below the total assets on the government-wide, proprietary, and governmental fund statements. Deferred inflows of resources are presented below the total liabilities on the government-wide, proprietary, and governmental fund statements. Long-term Obligations. In the government-wide and proprietary fund statement of net position long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which approximates the interest method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds are reported as debt service expenditures. F. Property Taxes Property taxes are levied by the Town Council. The levy is based on the assessed valuation of property located within the Town as determined by the County Assessor generally as of January 1 of each year. The levy is normally set by December 15 by certification to the County Commissioners. The County Treasurer collects the property taxes during the ensuing calendar year and remits the taxes collected to the Town on a monthly basis. Property taxes are payable in full by April 30, or if in two equal installments, by February 28 and June 15. Delinquent taxpayers are notified in August and generally sales of the tax liens on delinquent properties are held in November or December. Property taxes, net of estimated uncollectible taxes, are recorded as receivable in the year levied and offset to deferred inflows of resources as unavailable revenue since they typically do not meet the availability criterion. 35 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 G. Compensated Absences It is the Town’s policy to permit employees to accumulate earned but unused personal time off (a combination of vacation and holidays) and sick pay benefits. There is no liability for unpaid accumulated sick leave since the Town’s policy is to not pay for accumulated sick leave when employees separate from service. The liability for compensated absences is recorded as a non-current liability in the government-wide financial statements. The current portion of this debt is estimated based on historical trends. In the fund financial statements, governmental funds report a compensated liability payable only if it has matured, for example, as a result of employee resignations and retirements, while the proprietary funds report the liability as it is incurred. Within the governmental funds, the General Fund typically is used to liquidate any liabilities for compensated absences. H. Fund Equity The following fund balance classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used: • Nonspendable fund balance – amounts that are not in a spendable form (such as inventory or prepaid charges) or are required to be maintained intact; • Restricted fund balance – amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation; • Committed fund balance – amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority. In Avon’s case this is an ordinance adopted by the Town Council. To be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest-level action to remove or change the constraint; • Assigned fund balance – amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or an official or body to which the governing body delegates the authority; • Unassigned fund balance – amounts that are available for any purpose; positive amounts are reported only in the general fund. The Town establishes (and modifies or rescinds) fund balance commitments by passage of an ordinance. A fund balance commitment is further indicated in the budget document as a designation or commitment of the fund. Assigned fund balance is established by the Town Council through adoption or amendment of the budget as intended for a specific purpose (such as the purchase of capital assets, construction, debt service, or other purposes). When fund balance resources are available for a specific purpose in more than one classification, it is the Town’s policy to use the most restrictive funds first in the following order: restricted, committed, assigned, and unassigned as they are needed. The Town 36 considers all unassigned fund balances to be “reserves” for future operations or capital replacement as defined within Article X, Section 20 of the Constitution of the State of Colorado (see Note 10). I. Statements of Cash Flows For purposes of the statement of cash flows, the Town considers all highly liquid investments with a maturity when purchased of three months or less and all local government investment pools to be cash equivalents. J. Debt Costs Unamortized premiums of $252,797 are reflected in noncurrent liabilities. Premiums are amortized over the remaining lives of the related debt issues using the effective interest method. Note 2. Legal Compliance – Budgets No later than October 15th, the Town Manager submits to the Mayor and Town Council a proposed budget for the calendar year commencing the following January 1st. The budget is prepared by fund, department, program and project and includes information on the prior year, current estimates and requested appropriations and estimated revenues for the upcoming year. The Town Council holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Town Council must adopt the budget by resolution prior to December 15th. Once adopted, the Town Council may at any time, by resolution, amend the budget. In addition, the Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department. A department is defined by the Town as a distinct, principal, or specialized division (e.g. the Department of Public Works). Expenditures may not legally exceed budgeted appropriations at the fund level. Budgetary comparisons in the accompanying combined financial statements and in the individual fund statements are presented at a lower-than-required level of control to facilitate detailed financial analysis. The Avon Urban Renewal Fund and Mobility Fund expenditures exceeded budgeted appropriations during 2020. This may be a violation of Colorado budget law. 37 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 Note 3. Cash and Investments Cash and investments as of December 31, 2020 are classified in the accompanying financial statements as follows: Cash and Cash Equivalents Investments Restricted Assets - Cash and Cash Equivalents $ 21,288,020 6,806,133 657,821 Total $ 28,751,974 Cash and investments as of December 31, 2020 consist of the following: Cash on Hand Demand Deposits Other Deposits with Financial Institutions Local Government Investment Pools Investments $ 4,925 2,527,186 657,870 18,755,860 6,806,133 Total $ 28,751,974 Investments Authorized by the Town of Avon Investment Policy The table below identifies the investment types that are authorized for the Town by the Town’s investment policy. The table also identifies certain provision of the Town’s investment policy that address interest rate risk, credit risk, and concentration of credit risk. Authorized Investment Type Maximum Maturity Maximum Percentage Of Portfolio Maximum Investment In One Issuer U.S. Government Treasury Securities U.S. Government Agency Securities Repurchase Agreements Commercial Paper General Obligation Debt Revenue Obligation Debt Local Government Investment Pools 5 years 5 years 180 days 270 days 5 years 5 years N/A None None None 20% None None None None None None 5% None None None Fair Value of Investments The Town measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three- tiered fair value hierarchy, as follows: • Level 1: Quoted prices for identical investments in active markets; • Level 2: Observable inputs other than quoted market prices; and, • Level 3: Unobservable inputs. 38 At December 31, 2020, the Town had the following recurring fair value measurements: Fair Value Measurements Using Investments Measured at Fair Value Total Level 1 Level 2 Level 3 U.S. Government Treasury Securities Federal Instrumentality Securities $ 2,253,543 4,552,590 $ 2,253,543 4,552,590 $ - - $ - - Total $ 6,806,133 $ 6,806,133 $ - $ - Investments Measured at Net Asset Value Total Colotrust $18,755,860 Debt and equity securities classified in Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: • U.S. Government treasury securities, U.S. Government agency securities, and commercial paper: quoted prices for identical securities in markets that are not active; • Corporate and municipal bonds: quoted prices for similar securities in active markets; • Repurchase agreements, negotiable certificates of deposit, and collateralized debt obligations: matrix pricing based on the securities’ relationship to benchmark quoted prices. At December 31, 2020 unrealized gains were $71,438 which reflects changes in the fair market value of investments. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The investment policy of the Town states that, to the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. Unless matched to a specific cash flow requirement, the Town will not invest in securities maturing more than five years from the date of purchase. In addition, the Town shall maintain at least 15% of its total investment portfolio in investments maturing in 120 days or less. At least 10% of the portfolio shall be invested in overnight investments or securities that can be sold to raise cash on one day’s notice. 39 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 Information about the sensitivity of the fair values of the Town’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the Town’s investments by maturity: Weighted Average Maturity (in Years) U.S. Government Treasury Notes U.S. Government Agency Securities: Federal Home Loan Bank Federal Home Loan Mortgage Corp. Federal National Mortgage Assn. Federal Farm Credit Bank Colotrust $ 2,253,543 1,530,645 1,012,647 1,006,632 1,002,666 18,755,860 0.71 0.94 1.74 0.28 0.11 NA Total $ 25,561,993 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating, as required by the Town’s investment policy, for investments of the Town as of December 31, 2020. Ratings Standard & Poor’s Investment AAAm AA+ AA+ AA+ AA+ AA+ AA+ Colotrust US Treasury Government National Mortgage Assoc. Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Mortgage Corporation Federal National Mortgage Corporation Concentration of Credit Risk Except for commercial paper investments, the investment policy of the Town contains no limitations on the amount that can be invested in any one issuer. Commercial paper issuers are limited to no more than 5% of the Town’s portfolio. The Town had no investments in commercial paper at December 31, 2020. 40 Investments in any one issuer (other than U.S. Treasury obligations, mutual funds, and local government investment pools) that represent 5% or more of total Town investments are as follows: Issuer Investment Type Reported Amount % of Total Investments Federal Home Loan Bank Federal National Mortgage Assn. Federal Farm Credit Bank Federal Home Loan Mortgage Corp. Federal Instrumentality Securities Federal Instrumentality Securities Federal Instrumentality Securities Federal Instrumentality Securities $ 1,530,645 1,006,632 1,002,666 1,012,647 5.99% 3.94% 3.92% 3.96% Custodial Credit Risk Deposits. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the Town would not be able to recover its deposits or would not be able to recover collateral securities that are in the possession of an outside party. The Town’s deposits are entirely covered by federal depository insurance (“FDIC”) or by collateral held under Colorado’s Public Deposit Protection Act (“PDPA”). The FDIC insures the first $250,000 of the Town’s deposits at each financial institution. Deposit balances over $250,000 are collateralized as required by PDPA. The Colorado Public Deposit Protection Act (PDPA) requires that cash be deposited in eligible public depositories and that deposits in excess of federal insurance levels must be collateralized. The eligible collateral is determined by the PDPA. PDPA allows the institution to create a single collateral pool for all public funds with the Town being a named participant in the single institution collateral pool. The minimum pledging requirement is 102% of the uninsured deposits. The Colorado State Banking Board verifies the market value at least monthly. Bank assets (usually securities) are required by PDPA to be delivered to a third- party institution for safekeeping and pledged to the Colorado Division of Banking. Based on the above, the Colorado State Auditor has concluded that there is no custodial risk for public deposits collateralized under PDPA. The carrying amount of the Town’s demand deposits was $2,533,186 at year end. Investments. Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, the Town would not be able to recover the value of its investment or collateral securities that are in the possession of another party. The Town’s investment policy provides that all investment securities, except certificates of deposit, local government investment pools, and money market funds purchased by the Town shall be settled on a delivery versus payment basis and will be delivered by either book entry or physical delivery and will be held in third-party safekeeping by the Town’s approved custodian bank, its correspondent bank or the Depository Trust Company. An approved Safekeeping Agreement must be executed with each custodian bank prior to utilizing that bank’s safekeeping services. 41 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 Local Government Investment Pools Local government investment pools are trusts established for local government entities in Colorado to pool surplus funds. The State Securities Commissioner administers and enforces all State statutes governing the trusts. The trusts value their shares based on a stable net value of $1.00 per share. A designated custodial bank serves as custodian pursuant to a custodian agreement. The custodian acts as safekeeping agent for the trusts’ investment portfolios and provides services as the depository in connection with direct investments and withdrawals. The custodian's internal records segregate investments owned by the trusts. As of December 31, 2020, the Town of Avon held investments in the Colorado Local Government Liquid Asset Trust (Colotrust Plus portfolio). The Plus portfolios may invest in U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury securities as well as in certain obligations of U.S. government agencies, highest rated commercial paper and repurchase agreements collateralized by certain obligations of U.S. government agencies. At December 31, 2020, the Town’s investments in Colotrust Plus were 73% of the Town’s investment portfolio. Note 4. Capital Assets Capital asset activity for the year ended December 31, 2020 was as follows: Governmental Activities: Beginning Balance Increases Decreases Ending Balance Capital Assets, Not Being Depreciated: Land and Land Improvements Public Art Water Rights Construction in Progress Total Capital Assets, Not Being Depreciated $ 11,640,671 1,361,400 1,792,959 336,340 15,131,370 $ - - - 1,165,734 1,165,734 $ (190,870) - - (883,662) (1,074,532) $ 11,449,801 1,361,400 1,792,959 618,412 15,222,572 Capital Assets, Being Depreciated: Depreciable Land Improvements Buildings Utilities Machinery and Equipment Infrastructure Total Capital Assets, Being Depreciated - 27,321,631 4,771,174 7,284,436 91,779,793 131,157,034 190,870 327,109 - 348,537 617,532 1,484,048 - (16,665) - (479,896) - (496,561) 190,870 27,632,075 4,771,174 7,153,077 92,397,325 132,144,521 Less Accumulated Depreciation: Depreciable Land Improvements Buildings Utilities Machinery and Equipment Infrastructure Total Accumulated Depreciation - (9,748,344) (1,893,415) (4,118,317) (52,466,748) (68,226,824) (190,870) (938,313) (226,915) (614,719) (3,026,430) (4,997,247) - 14,165 - 434,744 - 448,909 (190,870) (10,672,492) (2,120,330) (4,298,292) (55,493,178) (72,775,162) Total Capital Assets, Being Depreciated, Net 62,930,210 (3,513,199) (47,652) 59,369,359 Governmental Activities Capital Assets, Net $ 78,061,580 $ (2,347,465) $(1,122,184) $ 74,591,931 42 Business-type Activities: Beginning Balance Increases Decreases Ending Balance Capital Assets, Not Being Depreciated: Land Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated: Buildings Machinery and Equipment Total Capital Assets, Being Depreciated $ 411,834 411,834 16,879,023 3,299,418 20,178,441 $ - - - 22,000 22,000 $ - - - - - $ 411,834 411,834 16,879,023 3,321,418 20,200,441 Less Accumulated Depreciation: Buildings and Facilities Machinery and Equipment Total Accumulated Depreciation (5,360,299) (2,401,605) (7,761,904) (421,819) (129,834) (551,653) - - - (5,782,118) (2,531,439) (8,313,557) Total Capital Assets, Being Depreciated, Net 12,416,537 (526,653) - 11,886,886 Business-type Activities Capital Assets, Net $ 12,828,371 $ (526,653) $ - $ 12,298,718 Depreciation expense was charged to functions/programs of the Town as follows: Governmental Activities: General Government Community Development Public Safety Public Works and Utilities, including general infrastructure assets Recreation and Culture $ 465,249 3,946 389,432 3,727,356 411,264 Total Depreciation Expense – Governmental Activities $ 4,997,247 Business-type Activities: Transportation Fleet Maintenance $411,125 140,528 Total Depreciation Expense – Business-type Activities $ 551,653 Note 5. Long-term Debt Revenue Bonds and Loans – Avon Urban Renewal Authority. In 2013, the Avon Urban Renewal Authority issued Series 2013 Tax Increment Revenue Bonds to refinance outstanding obligations of the Authority and to finance certain capital improvements. In 2017, the Avon Urban Renewal Authority issued Series 2017 Tax Increment Revenue Bonds to finance tenant improvements related to the future occupancy of a new Town Hall. In 2020, the Avon Urban Renewal Authority issued its Series 2020 Tax Increment Revenue Refunding Loan in the amount of $4,111,000 with an interest rate of 2.11%. This loan along 43 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 with the release of the Series 2013 debt service reserve of $628,240 was used to refund the outstanding Series 2013 Tax Increment Revenue Bonds in the aggregate principal amount of $4,560,000. The refunding resulted in an economic gain of $176,403 with a cash flow savings of $883,089. The 2017 Bonds and the 2020 Loan constitute a pledge of, and an irrevocable first lien (but not an exclusive first lien), on all pledged revenues. Pledged revenues include the portion of the ad valorem proprietary taxes produced by the levies at the rates fixed each year by the governing bodies of the various taxing jurisdictions within the Urban Renewal Project Area. The levies are assessed upon that portion of the valuation for assessment of all taxable property in excess of a defined property tax base amount. The pledged revenues are reduced by a) any County collection fee (b) tax increment revenues required to be remitted by the Authority to the Confluence Metropolitan District pursuant to the Avon Station/Confluence IGA; and (c) ad valorem property taxes produced by a mill levy of any special district formed after May 28, 2009. Revenue bonds and loans outstanding at December 31, 2020, are as follows: Purpose Interest Rates Amount General Government – Avon Urban Renewal Authority 2.11% - 2.90% $ 5,968,223 Annual debt service requirements to maturity for revenue bonds outstanding at December 31, 2020, are as follows: Year Ending Avon Urban Renewal Authority December 31 Principal Interest 2021 2022 2023 2024 2025 2026-2030 2031 $ 605,278 619,647 634,175 648,867 664,728 2,552,806 242,722 $ 143,841 129,525 114,861 99,843 84,466 188,797 5,361 Total $ 5,968,223 $ 766,694 Certificates of Participation. On November 16, 2010, the Town issued $6,680,000 of Series 2010 Certificates of Participation with interest rates of 2% to 5%. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of November 1, 2010, between UMB Bank, solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. These Certificates were used to refund the outstanding 1998 Certificates of Participation in the aggregate principal amount of $3,990,000. The refunding resulted in an economic gain of $43,298 with a cash flow savings of $904,642. The remaining funds from the 2010 Certificates were used as matching funds for the construction of the Avon Regional Transit Facility, which was completed and placed into service in October 2013. 44 On January 14, 2015, the Town issued $3,800,000 of Series 2014B Certificates of Participation with an interest rate of 3.03% to finance the cost of street improvements. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of January 14, 2015, between UMB Bank, N.A., solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. On May 3, 2016, the Town held a special election concerning the financing for a joint public safety facility in partnership with the Eagle River Fire Protection District. The election was successful and on August 2, 2016, the Town issued $6,300,000 of Series 2016 Certificates of Participation with interest rates of 2% to 4%. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of August 2, 2016, between UMB Bank, N.A., solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. On September 2, 2020, the Town issued $3,983,000 of Series 2020 Certificates of Participation with an interest rate of 1.23%. These Certificates, along with the release of the Series 2010 debt service reserve of $508,700 were used to refund the outstanding 2010 Certificates of Participation in the aggregate principal amount of $4,300,000. The refunding resulted in an economic gain of $640,454 with a cash flow savings of $1,227,703. The Certificates evidence a proportionate interest in the base rentals and other revenues under an annually renewable lease purchase agreement dated as of September 2, 2020, between UMB Bank, solely in its capacity as trustee under the Indenture, as lessor, and the Town of Avon, as lessee. Certificates of Participation outstanding at December 31, 2020, are as follows: Purpose Interest Rates Amount General Government – Refunding and Capital 1.23% - 4.0% $11,361,000 Annual debt service requirements to maturity for Certificates of Participation outstanding at December 31, 2020, are as follows: Year Ending December 31 Governmental Activities Business Activities Principal Interest Principal Interest 2021 2022 2023 2024 2025 2026-2030 2031-2035 $ 706,000 715,000 734,000 748,000 770,000 3,827,000 2,035,000 $ 253,884 238,558 222,992 203,973 184,605 620,954 182,194 $ 171,000 175,000 179,000 177,000 180,000 944,000 - $ 22,460 20,357 18,204 16,002 13,825 35,104 - Total $ 9,535,000 $ 1,907,160 $ 1,826,000 $ 125,952 45 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 Capital Lease Obligations. The following leases are renewable on an annual basis, at the option of the Town, for consecutive one-year periods. Upon final payment, title to the leased assets will pass to the Town. • Lease obligation for equipment with a total cost of $168,986 and a book value net of accumulated depreciation at December 31, 2020 of $76,466. Due in ten semi-annual installments of $13,139 through July 2021. Amortization is based on an interest rate of 2.10%. The Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2020 is $25,871. • Lease obligation for equipment with a total cost of $355,818 and a book value net of accumulated depreciation at December 31, 2020 of $284,329. Due in seven annual installments of $55,720 through November 2024. Amortization is based on an interest rate of 2.35%. The Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2020 is $210,377. • Lease obligation for equipment with a total cost of $258,258 and a book value net of accumulated depreciation at December 31, 2020 of $234,640. Due in fourteen semi- annual installments of $20,877 through August 2025. Amortization is based on an interest rate of 3.39%. The Town may terminate the lease by paying the applicable purchase option on any scheduled payment. Balance at December 31, 2020 is $190,561. Annual debt service requirements to maturity for Capital Lease Obligations outstanding at December 31, 2020, are as follows: Year Ending December 31 Governmental Activities Business Activities Principal Interest Principal Interest 2021 2022 2023 2024 2025 $ 76,647 51,969 53,191 54,441 - $ 5,352 3,751 2,529 1,279 - $ 35,594 36,811 38,069 39,371 40,717 $ 6,161 4,944 3,685 2,384 1,038 Total $ 236,248 $ 12,911 $ 190,562 $ 18,212 46 Changes in Long-term Liabilities. Long-term liability activity for the year ended December 31, 2020, was as follows: Beginning Balance Additions Deletions Ending Balance Due Within One Year Governmental Activities: Bonds Payable: Revenue Bonds Certificates of Participation Bond Premium Total Bonds Payable Capitalized Leases Payable Compensated Absences $ 7,053,286 10,395,000 17,448,286 266,468 17,714,754 311,195 410,213 $ 4,111,000 1,973,000 6,084,000 - 6,084,000 - 708,932 $ 5,196,063 2,833,000 8,029,063 13,671 8,042,734 74,947 580,636 $ 5,968,223 9,535,000 15,503,223 252,797 15,756,020 236,248 538,509 $ 605,278 706,000 1,311,278 13,911 1,325,189 76,647 538,509 Governmental Activity Long- term Liabilities $18,436,162 $ 6,792,932 $ 8,698,317 $16,530,777 $ 1,940,345 Business-type Activities: Certificates of Participation Bond Premium Total Bonds Payable Capitalized Leases Payable Compensated Absences $ 2,170,000 27,144 2,197,144 224,979 72,269 $ 2,010,000 - 2,010,000 - 132,519 $ 2,354,000 27,144 2,381,144 34,417 94,780 $ 1,826,000 - 1,826,000 190,562 110,008 $ 171,000 - 171,000 35,594 110,008 Business-type Activity Long- term Liabilities $ 2,494,392 $ 2,142,519 $ 2,510,341 $ 2,126,570 $ 316,602 Conduit Debt Obligations. The Town has sponsored the issuance of revenue bonds in prior years to provide financial assistance to private-sector entities for the acquisition and construction of facilities deemed to be in the public interest. Neither the Town, the State of Colorado, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying general purpose financial statements. Conduit debt obligations at December 31, 2020, are described as follows: Eaglebend Dowd Affordable Housing Corporation. The Eaglebend Dowd Affordable Housing Corporation (Dowd) was formed on March 24, 1998, to help provide for affordable housing within Eagle County. Dowd operates a 50-unit apartment project within Eagle County. The Town approved the formation and the issuance of the revenue bonds to finance the project and will obtain full legal title to the land, buildings, and equipment upon payment in full of the bonds. The Town, however, is in no way obligated to pay the debt service on the bonds. 47 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 In 2003, the Town approved the issuance by Dowd of $9,520,000 in Series 2003 Refunding Revenue Bonds to defease the outstanding Series 1998A Revenue Bonds by placing the proceeds of the Series 2003 bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. In August 2013, Dowd issued $8,450,000 in Series 2013 Multifamily Housing Project Refunding Revenue Bonds to refund the Series 2003 Bonds. In November 2014, Dowd issued $8,850,000 of Multifamily Housing Project Refunding Revenue Bonds, Series 2014A to refund and defease the Series 2013 bonds. As of December 31, 2020, there was $7,864,924 outstanding in Series 2014A Multifamily Housing Project Refunding Revenue Bonds, and $1,600,000 outstanding in Series 1998 B&C Subordinate Revenue Bonds. Defeased Debt. Certain other bonds previously issued by the Town have been defeased by the issuance of refunding bonds. As of December 31, 2020, there are no amounts outstanding on any refunded bonds. Note 6. Employee Retirement Plans Full-time Employees. The Town maintains two single-employer, defined contribution pension plans for full-time employees: (1) the Town of Avon Police Officers Money Purchase Pension Plan of which there are 25 participants, and (2) the Town of Avon General Employee Money Purchase Pension Plan of which there are 124 participants as of December 31, 2020. Plan administration and recordkeeping of these plans is provided by The Principal Financial Group. A defined contribution pension plan has terms that specify how contributions to an individual’s account are to be determined rather than the amount of pension benefits the individual is to receive. In a defined contribution plan, the pension benefits a participant will receive depend only on the amount contributed to the participant’s account, earnings on investments of those contributions, and forfeitures of other participant’s benefits that may be allocated to the participant’s account. All full-time employees are required to participate in one of the above retirement plans upon employment with the Town. The type of plan that an employee participates in is dependent on the type of employee (police officer or general government employee). Town ordinance provides that both the employee and the Town will contribute an amount equal to 11% of the employee’s base salary each month. Employees hired prior to September 30, 1990, become vested in accordance with a vesting schedule which is dependent on the type of employee and hire date. All employees hired after September 30, 1990, start partial vesting after two years of service and are fully vested after five years of service. In addition, if an employee reaches normal retirement age, dies, or becomes totally and permanently disabled his account becomes fully vested regardless of length of service. Forfeitures by employees who leave employment before being fully vested are applied, first, to offset administrative expenses of the plans, and second, to reduce 48 matching employer contributions. Forfeitures totaling $64,529 were used in 2020 for administrative expenses. No forfeitures were used to reduce matching employer contributions. Contributions made by employees and the Town for the three years ended December 31, 2020, are as follows: 2020 2019 2018 Employee Contributions $ 784,962 $ 747,006 $ 681,141 Town Contributions $ 784,962 $ 747,006 $ 681,141 Both the Town and the covered employees each made the required 11% contributions to the plans. There are no liabilities for benefits beyond the Town’s matching payments. No changes in the various plan’s provisions occurred in 2020. Part-time, Temporary and Seasonal Employees. On October 14, 1997, the Town adopted a PTS Retirement Plan administered by the ICMA Retirement Corporation and established under Section 457 of the Internal Revenue Code that pertains to deferred compensation plans. Plan administration and recordkeeping of this plans was transferred to The Principal Financial Group in November 2017. The PTS plan is designed specifically for employees who are part-time, temporary, or seasonal, and is defined as a Social Security replacement retirement plan. The PTS plan allows participants to defer federal and state income taxes on savings until retirement. The PTS plan requires a minimum contribution of 7.5% of an employee’s salary per plan year. This 7.5% may be the employee’s contribution, the employer’s contribution, or a combination of both. The Town elected to have 3.75% contributed by the employee and 3.75% matched by the Town. Employees also have the option to contribute additional amounts. Upon separation of service, participants may withdraw the account balance in a lump-sum payment, roll the account balance over into another 457 plan, or continue to allow the account balance earn interest tax free. Taxes are paid when funds are withdrawn from the plan. Contributions made by plan members and the Town for the three years ended December 31, 2020, are as follows: 2020 2019 2018 Employees $35,822 $42,997 $37,081 Town $30,137 $37,312 $37,081 49 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 Both the Town and the covered employees each made the required 3.75% contributions to the plan. There are no liabilities for benefits beyond the Town’s matching payments. As of December 31, 2020, there were 205 participants in this plan. Note 7. 457 Deferred Compensation Plan The Town offers its full-time employees an optional supplemental deferred compensation plan created in accordance with Internal Revenue Code Section 457. Plan administration and recordkeeping is provided by The Principal Financial Group. The 457 plan allows eligible participants the opportunity to accumulate additional retirement savings with certain tax advantages. Deposits into the 457 plan are not subject to state or federal income taxes at the time of deposit, and earnings on these deposits are deferred until withdrawn. As of December 31, 2020, there were 47 participants in the 457 plan. Note 8. Employee Health Care The Town has a self-insurance plan for employee health and dental care. A third-party administrator processes individual employee claims and negotiates excess stop-loss insurance policies. Excess stop-loss insurance policies are purchased to cover individual claims in excess of $35,000 and aggregate total yearly claims in excess of $1,680,144. Settled benefit claims did not exceed the aggregate total yearly claims for 2020. As of December 31, 2020, the Town held reserves for future claims in the amount of $1,123,095. The following represents the changes in the claims reserve for the Town for 2020 and 2019: 2020 2019 Claims Reserve for Future Claims, Beginning of Year Current Year Deposits for Estimated Claims Excess Stop Loss Refunds for Specific (Individual) Claims Claim Payments $ 1,123,095 1,664,624 541,355 (2,089,827) $ 808,857 1,737,333 116,532 (1,539,627) Claims Reserve for Future Claims, End of Year $ 1,239,247 $ 1,123,095 Note 9. Interfund Receivables, Payables and Transfers Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are reported in the fund financial statements as “due to/from other funds”. These interfund receivables and payables are expected to be repaid within the next year. The composition of these interfund balances as of December 31, 2020, is as follows: Receivable Fund Payable Fund Amount General Fund Mobility Fund Fleet Maintenance Fund Fleet Maintenance Fund $ 100,000 200,000 Total $ 300,000 50 Interfund Transfers: Fund Transfers In Transfers Out Major Funds: General Fund Urban Renewal Authority Fund Debt Service Capital Projects Fund Mobility Enterprise Fund Fleet Maintenance Enterprise Fund Other Funds: Community Housing Fund Total $ 247,314 - 1,007,801 700,000 1,150,000 731,716 250,000 $ 4,086,831 $ 1,875,000 700,000 - 256,716 1,255,115 - - $ 4,086,831 During the year, capital assets purchased in 2020 related to governmental funds, with a book values of $124,587 were transferred to the internal service fund. In addition, capital lease principal payments of $74,947 were made on behalf of the internal service fund. No amounts were reported in the governmental funds as the amounts did not involve the transfer of financial resources. However, the internal service fund reported contributed capital in for the capital resources received. Note 10. Commitments and Contingencies Litigation. The Town is a party to various legal proceedings. Town management believes ultimate disposition of those subsequent pending claims and legal proceedings will not likely have a material adverse effect, if any, on the financial condition of the Town. Construction Contract Commitments. As of December 31, 2020, the Town had one construction contract commitment outstanding in the amount of $4,200. Intergovernmental Agreement. The Town has entered into an Intergovernmental Agreement (IGA) with the Eagle River Fire Protection District (Fire District) for the ownership, construction, operation, and maintenance of a joint fire-police station facility. The IGA provides for many covenants and mutual agreements including the amendment and replacement of previous IGAs, conveyance of the real property interest, construction financing, waiver of building permit fees, construction, apportionment of costs, termination of existing leases, use and occupancy, and operation and maintenance of the joint public safety facility. The IGA continues in perpetuity until amended or terminated by either party. Tax, Spending and Debt Limitations. Article X, Section 20 of the Colorado Constitution, commonly known as the Taxpayer’s Bill of Rights (TABOR) contains tax, spending, revenue, and debt limitations which apply to the State of Colorado and all local governments. Spending and revenue limits are determined based on the prior year’s Fiscal Year Spending adjusted for allowable increases based upon inflation and local growth. Fiscal Year Spending is generally defined as expenditures plus reserve increases with certain 51 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 exceptions. Revenue in excess of the Fiscal Year Spending limit must be refunded unless the voters approve retention of such revenue. In November 1997, voters within the Town passed a ballot issue which permanently authorizes the Town, without an election, to act on all spending and revenue raising measures which are limited by TABOR. In addition, voters authorized the Town to keep and spend all revenue collected by the Town regardless of any limitation contained in TABOR. The only exceptions are proposed sales or use tax rate increases and property tax rate increases which must be submitted to the voters, unless otherwise allowed by law. Enterprises, defined as government-owned business authorized to issue revenue bonds and receiving less than 10 percent of annual revenue in grants from all state and local governments combined, are excluded from the provisions of TABOR. TABOR also requires local governments to establish Emergency Reserves. These reserves must be at least 3% of Fiscal Year Spending (excluding bonded debt service). Local governments are not allowed to use the emergency reserves to compensate for economic conditions, revenue shortfalls, or salary or benefit increases. The Town has established an emergency reserve in the General Fund for the year ended December 31, 2020 in the amount of $829,650. Town management believes it is in compliance with the provisions of TABOR. However, TABOR is complex and subject to interpretation. Many of the provisions, including the interpretation of how to calculate Fiscal Year Spending limits will require judicial interpretation. Note 11. Risk Management The Town is exposed to various risks of loss related to torts; thefts of, damage to, and destruction of assets; errors or omissions; injuries to employees; and natural disasters. The Town is a member of the Colorado Intergovernmental Risk Sharing Agency (CIRSA). CIRSA is a joint self-insurance pool created by intergovernmental agreement of 278 municipalities and special districts to provide property, general and automobile liability and public officials coverage to its members. CIRSA is governed by a seven-member Board elected by and from its members. Coverage is provided through pooling of self-insured losses and the purchase of excess insurance coverage. CIRSA has a legal obligation for claims against its members to the extent that funds are available in its annually established loss fund and that amounts are available from insurance providers under excess specific and aggregate insurance contracts. Losses incurred in excess of loss funds and amounts recoverable from excess insurance are direct liabilities of the participating members. CIRSA has indicated that the amount of any excess losses would be billed to members in proportion to their contributions in the year such excess occurs, although it is not legally required to do so. The Town’s annual 52 contribution to CIRSA amounted to $251,730 for 2020. The Town has not been informed of any excess losses that may have been incurred by the pool. The Town continues to carry commercial insurance coverage for other risks of loss including workers compensation. Settled claims have not exceeded this commercial coverage in any of the past three fiscal years. Note 12. Upper Eagle Regional Water Authority The Town is a participant in the Upper Eagle Regional Water Authority. The Authority was formed pursuant to an establishing contract on September 18, 1984, by the following municipal and quasi-municipal corporations (Members) located in Eagle County, Colorado. • Arrowhead Metropolitan District • Beaver Creek Metropolitan District • Berry Creek Metropolitan District • Eagle-Vail Metropolitan District • Edwards Metropolitan District • Town of Avon The Authority also provides water services to the Cordillera and Bachelor Gulch developments through contracts with Members. The Authority was formed to make the best practicable use of the Members’ joint resources in supplying water to the members and to further develop water resources and facilities in Eagle County. The Authority may not be terminated so long as bonds, notes or other obligations are outstanding, unless provision for full payment of such obligations has been made. At December 31, 2020, the Authority had debt with maturities through the year 2039. The Town has a service contract with the Authority whereby the Authority provides and bills residents of the Town with water at a rate which is expected to cover its costs in providing water services and other functions. Such costs specifically include debt service requirements, depreciation, and operations and maintenance, including maintenance of the Town’s water distribution system. As part of the agreement, the Town conveyed its water distributions facilities and leased its water rights, associated easements, and improvements to the Authority at no cost. In consideration, the Authority has agreed to maintain the associated improvements and to administer and protect the Town’s plan for augmentation and water decrees at no cost. During 2020, the Authority collected $159,300 in water surcharges for the Town. Note 13. Tax Abatements The Town has entered into various agreements in order to meet development goals within certain areas of Town. The following areas have continuing development requirements or abatement agreements requiring disclosure. 53 TOWN OF AVON, COLORADO NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020 Development Area Revenues Impacted Governing Document Amount Requirements Village at Avon PUD Sales Tax, Accommodation Tax, Real Estate Transfer Tax Consolidated, Amended and Restated Annexation and Development Agreement $4,645,141 100% tax credit against sales, accommodations and real estate transfer taxes paid within the development area. Riverfront PUD Property Tax Increment Intergovernmental Agreement $ 434,922 100% tax rebate of incremental property taxes received from Avon Station Metropolitan District, excluding Lot B. Note 14. Major Taxpayers For the year ended December 31, 2020 fifty-three percent (53%) of the Town’s sales tax revenues were received from the ten highest-paying companies. 54 TOWN OF AVON, COLORADO REQUIRED SUPPLEMENTAL INFORMATION GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 14,333,265$ 13,776,870 14,459,430$ 682,560$ Licenses and Permits 448,100 303,100 328,734 25,634 Intergovernmental 998,079 1,767,276 1,746,733 (20,543) Charges for Services 1,707,193 916,287 933,625 17,338 Fines and Forfeitures 43,500 42,500 39,693 (2,807) Investment Earnings 250,000 240,000 189,169 (50,831) Other Revenues 443,500 483,500 745,113 261,613 Total Revenues 18,223,637 17,529,533 18,442,497 912,964 Expenditures Current: General Govt., Finance & Administration 5,205,183 5,084,776 4,968,825 115,951 Community Development 519,751 513,296 488,739 24,557 Public Safety 4,320,911 4,148,094 4,050,935 97,159 Public Works 4,824,070 4,317,087 3,990,073 327,014 Recreation 1,880,856 1,589,407 1,311,887 277,520 Total Expenditures 16,750,771 15,652,660 14,810,459 842,201 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,472,866 1,876,873 3,632,038 1,755,165 Other Financing Sources (Uses) Transfers In: Capital Projects Fund 247,314 247,314 247,314 - Transfers Out: Affordable Housing Fund (250,000) (250,000) (250,000) - Capital Projects Fund (700,000) - - - Mobility Enterprise Fund (1,300,000) (1,150,000) (1,150,000) - Fleet Maintenance Enterprise Fund (475,000) (475,000) (475,000) - Total Other Financing Sources (Uses)(2,477,686) (1,627,686) (1,627,686) - Net Change in Fund Balances (1,004,820) 249,187 2,004,352 1,755,165 Fund Balances, Beginning of Year 7,749,178 8,198,535 8,198,535 - Fund Balances, End of year 6,744,358$ 8,447,722$ 10,202,887$ 1,755,165$ Budgeted Amounts 55 TOWN OF AVON, COLORADO REQUIRED SUPPLEMENTAL INFORMATION AVON URBAN RENEWAL AUTHORITY FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes 1,607,703$ 1,607,703$ 1,568,090$ (39,613)$ Investment Earnings 18,847 3,750 3,503 (247) Total Revenues 1,626,550 1,611,453 1,571,593 (39,860) Expenditures Current: General Government 49,231 49,231 60,018 (10,787) Debt Service: Principal 616,063 636,063 636,063 - Interest 232,531 122,619 122,619 - Bond Issuance Costs - 66,760 66,760 - Fiscal Charges 1,000 2,650 700 1,950 Total Expenditures 898,825 877,323 886,160 (8,837) Excess (Deficiency) of Revenues Over (Under) Expenditures 727,725 734,130 685,433 (48,697) Other Financing Sources (Uses) Refunding Bond Proceeds - 4,111,000 4,111,000 - Transfers Out:- Capital Project Fund (700,000) (700,000) (700,000) - Payments to Refunded Bond Escrow Agent - (4,672,480) (4,672,480) - Total Other Financing Sources (Uses)(700,000) (1,261,480) (1,261,480) - Net Change in Fund Balances 27,725 (527,350) (576,047) (48,697) Fund Balances, Beginning of Year 635,172 598,989 598,989 - Fund Balances, End of year 662,897$ 71,639$ 22,942$ (48,697)$ Budgeted Amounts 56 TOWN OF AVON, COLORADO NOTES TO REQUIRED SUPPLEMENTAL INFORMATION DECEMBER 31, 2020 Note 1. Budgetary Information An annual budget is legally adopted on a basis consistent with generally accepted accounting principles for all funds, with the exception of proprietary funds which are budgeted on the modified accrual basis of accounting. Appropriations lapse at fiscal year-end except for capital projects and special revenue funds which may have project-length budgets that carryover from year-to-year. However, as a matter of practice, the Town adopts annual budgets for all funds. The budget is prepared by fund, department, program, object and project. Expenditures may not legally exceed budgeted appropriations at the fund level. The Town Council holds public hearings and may change appropriations except for expenditures required by law for debt service or for estimated cash deficits. No change to the budget may increase the authorized expenditures to any amount greater than the total amount of funds available. The Town Council must adopt the budget by resolution prior to December 15th. Once adopted, the Town Council may at any time, by resolution, amend the budget. In addition, the Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department. A department is defined by the Town as a distinct, principal or specialized division (e.g. the Department of Public Works). 57 THIS PAGE INTENTIONALLY LEFT BLANK 58 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. Water Fund – This fund is used to account for the cost of maintaining certain water-related assets and for the receipt of water surcharges and tap fees within the Town limits. Community Enhancement Fund – This fund is used to account for revenues received from a franchisee and restricted for use for beautification projects, energy conservation projects, equipment and technology upgrades for schools, scholarship funds, acquisition of open space and/or park land and development thereof, sponsorship of special community events, and undergrounding of overhead electric and other utility lines. Community Housing Fund – This fund is used to accumulate and account for resources received and restricted for use in the Town’s affordable housing program. Exterior Energy Offset Fund – This fund is used to account for fees collected at building permit to create financial assistance, rebates, and incentives to promote energy efficient projects within the Town of Avon. Fees are established based on a formula using BTUs required for certain amenities over a 20-year period. Disposable Paper Bag Fee Fund - This fund is used to account for fees received by the Town from retailers who are required to pay ten cents ($0.10) for each disposable paper bag used during a retail purchase. Effective May 1, 2018 it became unlawful for retailers to provide plastic bags to customers at point of sale. The intent is to encourage the use of reusable bags. Fees are restricted for use to programs and education related to waste reduction, and for providing reusable bags to Town residents and guests. 59 TOWN OF AVON, COLORADO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2020 Community Community Exterior Energy Water Enhancement Housing Offset Fund Fund Fund Fund ASSETS Cash and Cash Equivalents 596,752$ 166,081$ 2,167,857$ 112,804$ Receivables: - Accounts - 81,392 - - - Intergovernmental 53,217 - - - Notes Receivable - - 2,786 - Total Assets 649,969$ 247,473$ 2,170,643$ 112,804$ LIABILITIES Accounts Payable 1,883$ -$ -$ -$ Accrued Liabilities 9,437 - - - Deposits and Reserves - - 2,000 - Total Liabilities 11,320 - 2,000 - DEFERRED INFLOWS OF RESOURCES Unavailable Revenue - Notes Receivable - - 2,786 - Total Deferred Inflows of Resources - - 2,786 - FUND BALANCES Restricted For: Water Projects 638,649 - - - Community Enhancement - 247,473 - - Committed For: Exterior Energy Offset Programs - - - 112,804 Waste Reduction Programs - - - - Assigned For: Community Housing Programs - - 2,165,857 - Total Fund Balances 638,649 247,473 2,165,857 112,804 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 649,969$ 247,473$ 2,170,643$ 112,804$ Special Revenue Funds 60 Disposable Total Paper Bag Nonmajor Fee Governmental Fund Funds 97,530$ 3,141,024$ 3,682 85,074 - 53,217 - 2,786 101,212$ 3,282,101$ 82$ 1,965 - 9,437 - 2,000 82 13,402 - 2,786 - 2,786 - 638,649 - 247,473 - 112,804 101,130 101,130 - 2,165,857 101,130 3,265,913 101,212$ 3,282,101$ 61 TOWN OF AVON, COLORADO COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2020 Community Community Exterior Energy Water Enhancement Housing Offset Fund Fund Fund Fund Revenues Licenses and Permits -$ -$ -$ 59,760$ Charges for Services 190,512 - 49,384 - Investment Earnings - - 151 - Other Revenues - 81,392 1,513,057 - Total Revenues 190,512 81,392 1,562,592 59,760 Expenditures Current: General Government - - 479,329 - Community Development - - - 12,000 Public Works and Utilities 77,610 - - - Total Expenditures 77,610 - 479,329 12,000 Excess (Deficiency) of Revenues Over (Under) Expenditures 112,902 81,392 1,083,263 47,760 Other Financing Sources (Uses): Transfers In: General Fund - - 250,000 - Net Change in Fund Balances 112,902 81,392 1,333,263 47,760 Fund Balances, Beginning of Year 525,747 166,081 832,594 65,044 Fund Balances, End of year 638,649$ 247,473$ 2,165,857$ 112,804$ Special Revenue Funds 62 Disposable Total Paper Bag Nonmajor Fee Governmental Fund Funds -$ 59,760$ - 239,896 - 151 27,066 1,621,515 27,066 1,921,322 14,669 493,998 - 12,000 - 77,610 14,669 583,608 12,397 1,337,714 - 250,000 12,397 1,587,714 88,733 1,678,199 101,130$ 3,265,913$ 63 TOWN OF AVON, COLORADO WATER FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Charges for Services: Water Surcharges 160,000$ 160,000$ 159,300$ (700)$ Tap Fees 200,000 40,000 31,212 (8,788) Total Charges for Services 360,000 200,000 190,512 (9,488) Total Revenues 360,000 200,000 190,512 (9,488) Expenditures Current: Public Works and Utilities 126,488 125,540 77,610 47,930 Total Expenditures 126,488 125,540 77,610 47,930 Net Change in Fund Balances 233,512 74,460 112,902 38,442 Fund Balances, Beginning of Year 249,911 525,747 525,747 - Fund Balances, End of year 483,423$ 600,207$ 638,649$ 38,442$ Budgeted Amounts 64 TOWN OF AVON, COLORADO COMMUNITY ENHANCEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Other Revenues 80,000$ 80,000$ 81,392$ 1,392$ Total Revenues 80,000 80,000 81,392 1,392 Expenditures Current: Public Works and Utilities - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues Over (Under) Expenditures 80,000 80,000 81,392 1,392 Other Financing Sources (Uses) Transfers Out: Capital Projects Fund - - - - Net Change in Fund Balances 80,000 80,000 81,392 1,392 Fund Balances, Beginning of Year 163,009 166,081 166,081 - Fund Balances, End of year 243,009$ 246,081$ 247,473$ 1,392$ Budgeted Amounts 65 TOWN OF AVON, COLORADO COMMUNITY HOUSING FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Charges for Services Rental Revenues - Employees 50,738$ 50,738$ 49,384$ (1,354)$ Investment Earnings 411 147 151 4 Other Revenues: Bond Issuance Fee 10,000 10,000 9,768 (232) Loan Principal Repayment 3,329 3,329 3,589 260 Miscellaneous Nonclassified - 1,499,965 1,499,700 (265) Total Revenues 64,478 1,564,179 1,562,592 (1,587) Expenditures Current: General Government 10,000 660,000 479,329 180,671 Total Expenditures 10,000 660,000 479,329 180,671 Excess (Deficiency) of Revenues Over (Under) Expenditures 54,478 904,179 1,083,263 179,084 Other Financing Sources (Uses): Transfers In: General Fund 250,000 250,000 250,000 - Net Change in Fund Balances 304,478 1,154,179 1,333,263 179,084 Fund Balances, Beginning of Year 695,291 832,594 832,594 - Fund Balances, End of year 999,769$ 1,986,773$ 2,165,857$ 179,084$ Budgeted Amounts 66 TOWN OF AVON, COLORADO EXTERIOR ENERGY OFFSET FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Licenses and Permits: Exterior Energy Offset Fee 5,000$ 59,760$ 59,760$ -$ Total Revenues 5,000 59,760 59,760 - Expenditures Current: Community Development - 12,000 12,000 - Total Expenditures - 12,000 12,000 - Net Change in Fund Balances 5,000 47,760 47,760 - Fund Balances, Beginning of Year 76,552 65,044 65,044 - Fund Balances, End of year 81,552$ 112,804$ 112,804$ -$ Budgeted Amounts 67 TOWN OF AVON, COLORADO DISPOSABLE PAPER BAG FEE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Other Revenues: Disposable Paper Bag Fee 45,000$ 18,054$ 27,066$ 9,012$ Total Revenues 45,000 18,054 27,066 9,012 Expenditures Current: General Government 30,000 30,000 14,669 15,331 Total Expenditures 30,000 30,000 14,669 15,331 Net Change in Fund Balances 15,000 (11,946) 12,397 24,343 Fund Balances, Beginning of Year 86,227 88,733 88,733 - Fund Balances, End of year 101,227$ 76,787$ 101,130$ 24,343$ Budgeted Amounts 68 TOWN OF AVON, COLORADO DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Investment Earnings 12,725$ 3,575$ 3,624$ 49$ Total Revenues 12,725 3,575 3,624 49 Expenditures Debt Service: Principal 675,000 688,000 703,000 (15,000) Interest 342,513 314,770 299,550 15,220 Bond Issuance Costs - 46,765 46,765 - Fiscal Charges 5,250 9,941 6,384 3,557 Total Expenditures 1,022,763 1,059,476 1,055,699 3,777 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,010,038) (1,055,901) (1,052,075) 3,826 Other Financing Sources (Uses) Refunding Bond Proceeds - 1,973,000 1,973,000 - Payments to Refunded Bond Escrow Agent - (2,434,933) (2,178,218) 256,715 Transfers In: Capital Projects Fund 1,010,038 1,007,801 1,007,801 - Transfers Out: Fleet Maintenance Fund - - (256,716) (256,716) Total Other Financing Sources (Uses)1,010,038 545,868 545,867 (1) Net Change in Fund Balances - (510,033) (506,208) 3,825 Fund Balances, Beginning of Year 534,816 533,853 533,853 - Fund Balances, End of year 534,816$ 23,820$ 27,645$ 3,825$ Budgeted Amounts 69 TOWN OF AVON, COLORADO CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues Taxes: Real Estate Transfer Tax 2,671,000$ 3,000,000$ 5,998,950$ 2,998,950$ Intergovernmental 113,000 55,000 35,000 (20,000) Investment Earnings 75,000 90,000 92,480 2,480 Other Revenues - - 770 770 Total Revenues 2,859,000 3,145,000 6,127,200 2,982,200 Expenditures Capital Projects: Facilities 2,110,000 1,428,356 490,210 938,146 Land and Land Improvements 200,000 109,512 79,006 30,506 Roads and Streets 1,430,000 1,543,999 1,109,419 434,580 Utility Projects 233,000 575,697 289,803 285,894 Communications and Technology 572,163 350,290 142,756 207,534 Debt Service: Capital Leases 81,999 81,999 81,999 - Total Expenditures 4,627,162 4,089,853 2,193,193 1,896,660 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,768,162) (944,853) 3,934,007 4,878,860 Other Financing Sources (Uses) Transfers In: General Fund 700,000 - - - Avon Urban Renewal Fund 700,000 700,000 700,000 - Transfers Out: General Fund (247,314) (247,314) (247,314) - Debt Service Fund (1,010,038) (1,007,801) (1,007,801) - Total Other Financing Sources (Uses)142,648 (555,115) (555,115) - Net Change in Fund Balances (1,625,514) (1,499,968) 3,378,892 4,878,860 Fund Balances, Beginning of Year 4,890,137 8,722,351 8,722,351 - Fund Balances, End of Year 3,264,623$ 7,222,383$ 12,101,243$ 4,878,860$ Budgeted Amounts 70 ENTERPRISE FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the Town Council is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered through user charges: or where the Town Council has decided that periodic determination of net income is appropriate for accountability purposes. Mobility Fund – This fund is used to account for the activities involved in operating the Town’s transportation system. Fleet Maintenance Fund – This fund is used to account for the accumulation and allocation of costs associated with the maintenance of vehicles and rolling stock for the Town and certain other third-party governmental entities. 71 TOWN OF AVON, COLORADO MOBILITY FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Taxes 41,597$ 43,307$ 41,633$ (1,674)$ Intergovernmental 1,846,000 408,279 646,470 238,191 Charges for Services 247,730 247,730 263,715 15,985 Other Revenue 121,880 121,880 108,972 (12,908) Total Revenues 2,257,207 821,196 1,060,790 239,594 Expenditures: Administration 277,931 272,647 271,484 1,163 Operations 3,144,688 1,194,516 1,199,682 (5,166) Wash Bay 179,309 181,383 174,406 6,977 Mobility Programs 379,838 311,321 324,980 (13,659) Total Expenditures 3,981,766 1,959,867 1,970,552 (10,685) Excess (Deficiency) of Revenues Over (Under) Expenditures (1,724,559) (1,138,671) (909,762) 228,909 Other Financing Sources (Uses): Transfers In: General Fund 1,300,000 1,150,000 1,150,000 - Net Change in Fund Balances (424,559) 11,329 240,238 228,909 Fund Balances, Beginning of Year 618,905 485,286 485,286 - Fund Balances, End of Year 194,346$ 496,615$ 725,524$ 228,909$ Fund Balances at December 31, 2020, is computed as follows: Current Assets 874,911$ Less: Current Liabilities and Deferred Inflows of Resources (184,981) Add: Current Portion of Capital Leases Payable 35,594 Fund Balances - December 31, 2020 725,524$ Budgeted Amounts 72 RECONCILIATION OF NET CHANGE IN FUND BALANCES (BUDGETARY BASIS) TO CHANGE IN NET POSITION (GAAP BASIS) Net Change in Fund Balances (Budgetary Basis)240,238$ Adjustments to Reconcile Budgetary Basis to GAAP Basis Principal Paid on Capital Leases 34,417 Capitization of Capital Assets 22,000 Depreciation (411,125) Total Adjustments (354,708) Change in Net Position (GAAP Basis)(114,470)$ 73 TOWN OF AVON, COLORADO FLEET MAINTENANCE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Charges for Services: Third-party Fleet Maintenance Charges 820,767$ 820,767$ 648,891$ (171,876)$ Departmental Fleet Maintenance Services 608,728 608,728 758,362 149,634 Fuel Mark-up 18,000 12,644 33,092 20,448 Other Revenues - - 100 100 Total Revenues 1,447,495 1,442,139 1,440,445 (1,694) Expenditures: Fleet Maintenance 1,905,281 1,834,610 1,828,500 6,110 Total Expenditures 1,905,281 1,834,610 1,828,500 6,110 Excess (Deficiency) of Revenues Over (Under) Expenditures (457,786) (392,471) (388,055) 4,416 Other Financing Sources (Uses): Refunding Bond Proceeds - 2,010,000 2,010,000 - Payments to Refunded Bond Escrow Agent - (2,219,130) (2,219,131) (1) Transfers In: General Fund 475,000 475,000 475,000 - Capital Projects Fund - 256,716 256,716 - Total Other Financing Sources (Uses)475,000 522,586 522,585 (1) Net Change in Fund Balances 17,214 130,115 134,530 4,415 Fund Balances, Beginning of Year 23,663 54,791 54,791 - Fund Balances, End of Year 40,877$ 184,906$ 189,321$ 4,415$ Fund Balances at December 31, 2020, is computed as follows: Current Assets 639,930$ Less: Current Liabilities (621,609) Add: Current Portion of Certificates of Participation 171,000 Fund Balances - December 31, 2020 189,321$ Budgeted Amounts 74 RECONCILIATION OF NET CHANGE IN FUND BALANCES (BUDGETARY BASIS) TO CHANGE IN NET POSITION (GAAP BASIS) Net Change in Fund Balances (Budgetary Basis)134,530$ Adjustments to Reconcile Budgetary Basis to GAAP Basis Principal Paid on Certificates of Participation 184,000 Amortization of Premium and Gain on Refunding of Debt 1,953 Amortization of Loss on Refunding of Debt (1,779) Refunding Bond Proceeds (2,010,000) Payments to Refunded Bond Escrow Agent 2,219,131 Depreciation (140,528) Total Adjustments 252,777 Change in Net Position (GAAP Basis)387,307$ 75 THIS PAGE INTENTIONALLY LEFT BLANK 76 INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the Town and to other government units, on a cost reimbursement basis. Equipment Replacement Fund – This fund is used to account for the rental of certain vehicles and equipment to other departments for the accumulation of funds for future replacement. 77 TOWN OF AVON, COLORADO EQUIPMENT REPLACEMENT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (BUDGETARY BASIS) FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Original Final Amounts (Negative) Revenues: Charges for Services: Equipment Replacement Charges 683,687$ -$ -$ -$ Other Revenues 27,750 28,615 29,057 442 Total Revenues 711,437 28,615 29,057 442 Expenditures: Capital Outlay: Fleet and Heavy Equipment 697,960 93,846 95,880 (2,034) Recreation Center Equipment & Improvements 131,100 131,100 46,854 84,246 Computer and Office Equipment 71,233 85,641 81,509 4,132 Machinery and Equipment 43,898 - - - Total Expenditures 944,191 310,587 224,243 86,344 Excess (Deficiency) of Revenues Over (Under) Expenditures (232,754) (281,972) (195,186) 86,786 Other Financing Sources (Uses): Sales of Capital Assets 35,000 35,000 73,451 38,451 Net Change in Fund Balances (197,754) (246,972) (121,735) 125,237 Fund Balances, Beginning of Year 3,214,496 3,277,689 3,277,689 - Fund Balances, End of Year 3,016,742$ 3,030,717$ 3,155,954$ 125,237$ Fund Balances at December 31, 2020, is computed as follows: Current Assets 3,174,827$ Less: Current Liabilities (95,520) Add: Current Portion of Capital Leases Payable 76,647 Fund Balances - December 31, 2020 3,155,954$ Budgeted Amounts 78 RECONCILIATION OF NET CHANGE IN FUND BALANCES (BUDGETARY BASIS) TO CHANGE IN NET POSITION (GAAP BASIS) Net Change in Fund Balances (Budgetary Basis)(121,735)$ Basis to GAAP Basis Capitalization of Capital Assets 223,952 Book Value of Capital Assets Disposed (47,653) Transfers In of Non-financial Resources 199,534 Depreciation (802,678) Total Adjustments (426,845) Change in Net Position (GAAP Basis)(548,580)$ 79 MISCELLANEOUS SCHEDULES 80 TOWN OF AVON, COLORADO DEBT SCHEDULE DECEMBER 31, 2020 Date Interest Maturity Amount Amount Purpose Issued Rate Date Issued Outstanding Principal Interest Revenue Bonds: Series 2017, Avon URA Tax Increment Revenue Bonds 1/5/17 2.90%12/1/31 3,000,000$ 2,317,223$ 181,278$ 66,805$ Series 2020, Avon URA Tax Increment Revenue Loan 5/1/20 2.11%12/1/28 4,111,000 3,651,000 424,000 77,036 Total Revenue Bonds 7,111,000 5,968,223 605,278 143,841 Certificates of Participation: Series 2014B, Certificates of Participation 1/14/15 3.03%12/1/29 3,800,000 2,475,000 245,000 74,992 Series 2016, Certificates of Participation 8/2/16 2.00%-4.00%12/1/35 6,300,000 5,270,000 290,000 156,875 Series 2020, Refunding Certificates of Participation 9/2/20 1.23%12/1/30 3,983,000 3,616,000 342,000 44,477 Total Certificates of Participation 14,083,000 11,361,000 877,000 276,344 Capital Lease Obligations Master Lease-Purchase, US Bancorp 7/25/14 2.10%7/15/21 170,246 25,871 25,871 408 Master Lease-Purchase, Clayton Holdings 10/5/17 2.35%11/27/24 355,818 210,377 50,776 4,944 Master Lease-Purchase, Clayton Holdings 8/24/18 3.39%8/24/25 258,258 190,562 35,594 6,161 Total Capital Lease Obligations 784,322 426,810 112,241 11,513 Total Long-term Debt 21,978,322$ 17,756,033$ 1,594,519$ 431,698$ Payments Due Schedule of Indebtedness In 2021 81 TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND EXPENDITURES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) General Government: Mayor and Town Council 270,662$ 267,768$ 255,633$ 12,135$ Town Attorney 155,000 205,000 249,105 (44,105) Town Clerk 134,843 139,737 126,689 13,048 Municipal Court 148,478 128,141 123,876 4,265 Town Manager 579,654 412,154 380,489 31,665 Community Relations 268,766 266,211 243,282 22,929 Economic Development 140,250 143,250 121,958 21,292 Special Events 798,042 392,195 305,185 87,010 Community Grants 92,000 97,000 92,800 4,200 COVID19 - 517,621 562,817 (45,196) Subtotal General Government 2,587,695 2,569,077 2,461,834 107,243 Human Resources: Human Resources 566,168 570,734 532,366 38,368 Finance and Information Technology: Finance 993,978 986,754 982,068 4,686 Information Systems 441,785 448,608 456,471 (7,863) Nondepartmental 615,557 509,603 536,086 (26,483) Subtotal Finance and Administration 2,051,320 1,944,965 1,974,625 (29,660) Total General Government, Finance and Administraion 5,205,183 5,084,776 4,968,825 115,951 Community Development: Boards and Commissions 19,649 19,650 10,291 9,359 Planning 314,587 307,254 300,334 6,920 Building Inspection 185,515 186,392 178,114 8,278 Total Community Development 519,751 513,296 488,739 24,557 Public Safety: Police Administration 889,491 823,448 799,612 23,836 Patrol 3,100,349 3,016,868 2,941,404 75,464 Investigations 331,071 307,778 309,919 (2,141) Total Public Safety 4,320,911 4,148,094 4,050,935 97,159 Budgeted Amounts 82 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Public Works and Engineering Engineering: Engineering 273,385$ 264,624$ 266,431$ (1,807)$ Buildings and Facilities 1,277,853 1,204,533 1,086,624 117,909 Public Works: Roads and Bridges 2,633,092 2,388,955 2,293,780 95,175 Parks and Grounds 639,740 458,975 343,238 115,737 Total Public Works 4,824,070 4,317,087 3,990,073 327,014 Recreation: Administration 269,711 260,856 251,322 9,534 Adult Programs 50,032 41,118 24,628 16,490 Aquatics 662,235 555,055 474,748 80,307 Fitness 138,324 69,903 38,359 31,544 Guest Services 361,889 310,827 277,099 33,728 Youth Programs 213,422 191,045 125,591 65,454 Community Swim Program 185,243 160,603 120,140 40,463 Total Recreation 1,880,856 1,589,407 1,311,887 277,520 TOTAL EXPENDITURES 16,750,771$ 15,652,660$ 14,810,459$ 842,201$ Budgeted Amounts 83 TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND REVENUES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Taxes: General Property Tax 2,048,895$ 2,041,743$ 2,041,834$ 91$ General Property Tax - Delinquent Collections 500 500 - (500) General Property Tax - Interest and Penalties 1,500 1,500 3,128 1,628 Specific Ownership Tax 115,000 115,000 114,434 (566) Sales Tax 8,867,221 8,596,926 9,103,683 506,757 Utility Tax 115,000 115,000 102,442 (12,558) Accommodations Tax 1,484,349 1,121,201 1,217,787 96,586 Penalties and Interest 35,000 35,000 43,531 8,531 Sales Tax Audit Assessments 10,000 65,000 67,230 2,230 VAA Retail Sales Fee 820,800 855,000 870,964 15,964 Cigarette Excise Tax 225,000 210,000 250,995 40,995 Tobacco Tax 160,000 185,000 214,907 29,907 Franchise Fees 450,000 435,000 428,495 (6,505) Total Taxes 14,333,265 13,776,870 14,459,430 682,560 Licenses and Permits: Liquor Licenses 12,500 12,500 5,663 (6,837) Business Licenses 100,000 70,000 95,900 25,900 Contractor's Licenses 25,000 20,000 14,315 (5,685) Tobacco / Cigarette Retailers License 1,500 1,500 1,750 250 Booting/Towing Licenses 500 500 600 100 Building Permits 300,000 190,000 204,986 14,986 Road Cut Permits 8,000 8,000 5,170 (2,830) Mobile Vendor Cart Permits 600 600 350 (250) Total Licenses and Permits 448,100 303,100 328,734 25,634 Intergovernmental: Federal: Click It or Ticket 3,000 5,500 5,500 - Bullet Proof Vest Grant 2,000 2,000 2,206 206 CARES Act - 713,837 713,837 - LEAF Grant - - 1,916 1,916 State: High Visibility Grants 20,000 20,000 24,882 4,882 POST I70 Training Grants 21,000 35,676 36,734 1,058 DOLA Grants 47,000 48,500 4,215 (44,285) Avon Best and Brightest - 13,213 23,591 10,378 Other State Grants - - 6,173 6,173 Local Government/Other Agency El Pomar Grant - 2,500 2,500 - Other Local Grants 5,000 5,000 6,804 1,804 Budgeted Amounts 84 Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Intergovernmental: State/County Shared Revenue: Conservation Trust 73,500$ 73,500$ 67,312$ (6,188)$ Motor Vehicle Registration 24,800 24,800 24,472 (328) Highway User's Tax 187,929 178,000 168,012 (9,988) County Sales Tax 477,090 500,000 507,823 7,823 Road & Bridge Fund 135,760 144,000 150,268 6,268 State Severance Tax 1,000 750 488 (262) Total Intergovernmental 998,079 1,767,276 1,746,733 (20,543) Charges for Services: General Government: Photocopying Charges 100 100 - (100) License Hearing Fees 100 100 - (100) Other Fees and Charges 2,000 2,000 2,418 418 Credit Card and Paper Filing Fees 2,500 2,500 2,281 (219) Special Events: Concession Sales 82,800 6,000 - (6,000) Sponsorships 37,500 - - - Event Fees 15,000 2,800 550 (2,250) Special Event Admission Fees 6,000 - - - Community Development: Plan Check Fees 75,000 75,000 121,855 46,855 Subdivision Review Fees - - - - Design Review Fees 22,000 15,000 19,282 4,282 Animal Control Fees 150 150 - (150) Impact Fee Administrative Fees 1,500 1,500 1,624 124 Public Safety: Police Reports 600 1,000 1,286 286 Off-duty Police Employment 25,000 25,000 25,172 172 Fingerprinting Fees 200 500 740 240 VIN Inspection Fees 750 1,800 2,440 640 False Alarm Fees 75 75 5 (70) National Night Out 2,500 1,500 1,500 - DUI Reimbursement 30,000 10,000 10,043 43 Avon Recreation Center: Admission Fees 1,017,330 457,449 432,963 (24,486) Program Fees 20,000 13,975 15,170 1,195 Facility Rentals 7,000 3,696 2,717 (979) Merchandise Sales 8,500 2,797 2,804 7 Other Recreation Center Services 10,000 4,733 3,970 (763) Fitness Program Revenues 35,000 10,385 11,712 1,327 Swim Team Revenue 52,488 36,742 38,629 1,887 Private Lessons 37,500 13,753 13,174 (579) Budgeted Amounts 85 TOWN OF AVON, COLORADO DETAILED SCHEDULE OF GENERAL FUND REVENUES (BUDGETARY BASIS) - BUDGET AND ACTUAL FOR THE YEAR ENDED DECEMBER 31, 2020 (CONTINUED) Variance with Final Budget - Actual Positive Description Original Final Amounts (Negative) Charges for Services: General Recreation: Adult Program Revenues 20,000$ 7,907$ 6,554$ (1,353)$ Cabin Equipment Rentals 25,000 60,000 59,151 (849) Athletic Field Rentals 2,000 504 490 (14) Youth Program Revenues 165,000 159,321 156,540 (2,781) Pavillion Rentals 3,600 - 555 555 Total Charges for Services 1,707,193 916,287 933,625 17,338 Fines and Forfeitures: Court Fines - Traffic 20,000 23,000 24,660 1,660 Court Fines - Criminal 13,100 7,000 6,201 (799) Court Fines - Parking 3,000 6,700 4,185 (2,515) Court Costs 4,000 2,600 2,586 (14) Jury Fees 100 100 - (100) Bond Forfeitures 100 100 - (100) Police Training Surcharge 3,200 3,000 2,690 (310) Police Forfeitures - - (629) (629) Total Fines and Forfeitures 43,500 42,500 39,693 (2,807) Investment Earnings 250,000 240,000 189,169 (50,831) Miscellaneous Revenues: Recreational Amenity Fees 285,000 300,000 310,984 10,984 Lease of Town-owned Property 58,500 58,500 31,525 (26,975) Miscellaneous Nonclassified Revenues 100,000 125,000 402,604 277,604 Total Miscellaneous Revenues 443,500 483,500 745,113 261,613 TOTAL REVENUES 18,223,637$ 17,529,533$ 18,442,497$ 912,964$ Budgeted Amounts 86 THIS PAGE INTENTIONALLY LEFT BLANK 87 TOWN OF AVON, COLORADO SCHEDULE OF CAPITAL PROJECT FUND PROJECT EXPENDITURES (BUDGETARY BASIS) - BUDGET AND ACTUAL FROM INCEPTION AND FOR THE YEAR ENDED DECEMBER 31, 2020 Variance with Total Budget - Prior Current Project Positive Project Description Years Year Total Budget (Negative) CAPITAL IMPROVEMENT PROJECTS Facilities: General Government Facilities: Town Hall Control System -$ 10,924$ 10,924$ 10,715$ (209)$ New Town Hall Tenant Finish 4,864,853 22,914 4,887,767 4,774,516 (113,251) Old Town Hall Utility Upgrades - 144,169 144,169 450,000 305,831 Old Town Hall Asbestos Mitigation/Demolition - 1,200 1,200 525,000 523,800 Fiber - Pavilion to NTH 46,192 6,247 52,439 70,000 17,561 Level 2 EV Charging Station - NTH - 5,322 5,322 5,000 (322) New Town Hall Security Upgrades - 105,423 105,423 125,000 19,577 New Town Hall 2nd & 3rd Floor Updates - 3,335 3,335 110,000 106,665 Cultural and Recreational Facilities: Pavilion Retractable Door 252,195 40,574 292,769 290,700 (2,069) Pavilion Deck Railing and Floor Repair - 95,434 95,434 425,600 330,166 Recreation Center Weight Room Expansion 456,983 3,565 460,548 500,000 39,452 Other Facilities Level 3 DC Fast Charging Station - 51,103 51,103 75,000 23,897 Land and Land Improvements: Eagle River Whitewater Park Repair 215,758 20,200 235,958 221,390 (14,568) Wildfire Mitigation - 22,859 22,859 40,000 17,141 West Nottingham Park Improvements - 9,307 9,307 280,000 270,693 Nottingham Park Benches - 26,640 26,640 26,640 Actual Amounts 88 Variance with Total Budget - Prior Current Project Positive Project Description Years Year Total Budget (Negative) CAPITAL IMPROVEMENT PROJECTS Roads and Streets: Streetscape Improvements: Mall Activation Elements -$ 15,088$ 15,088$ 30,000$ 14,912$ Avon Rd. / I70 Overpass Aesthetics Imp.8,465 44,668 53,133 1,048,245 995,112 Benchmark Rd. On-street Parking Imp.37,952 552,940 590,892 600,000 9,108 Street Maintenance and Repair: Annual Guardrail Repair -$ 38,668$ 38,668$ 40,000$ 1,332$ Eaglebend Dr. Resurfacing 1,040 189,189 190,229 300,000 109,771 Yoder Ave. Asphalt Overlay 3,930 202,611 206,541 550,000 343,459 Buck Creek Repairs - 11,651 11,651 800,000 788,349 Street Improvements: East and West B/C Blvd. Street Rebuild 3,988,243 2,140 3,990,383 4,025,943 35,560 Recreational Trails Program: West Avon Preserve Trail Improvements - 52,464 52,464 57,000 4,536 Water Projects: East Stormwater Quality Vault - 253,972 253,972 315,000 61,028 Nottingham Rd. Debris Flow Study and Imp.164,303 35,831 200,134 425,000 224,866 Communications and Technology Finance / Community Development ERP Systems - 142,756 142,756 225,290 82,534 Total Capital Improvement Projects 10,039,914$ 2,111,194$ 12,151,108$ 16,346,039$ 4,194,931$ Actual Amounts 89 City or County: YEAR ENDING :December 2020 This Information From The Records Of (example - City of _ or County of _)Prepared By: Amy GreerPhone:970-748-4044 A. Local B. Local C. Receipts from D. Receipts from Motor-Fuel Motor-Vehicle State Highway-Federal HighwayTaxesTaxesUser Taxes Administration 1. Total receipts available2. Minus amount used for collection expenses 3. Minus amount used for nonhighway purposes4. Minus amount used for mass transit5. Remainder used for highway purposes AMOUNT AMOUNTA. Receipts from local sources:A. Local highway disbursements: 1. Local highway-user taxes 1. Capital outlay (from page 2)0 a. Motor Fuel (from Item I.A.5.) 2. Maintenance:1,981,265 b. Motor Vehicle (from Item I.B.5.) 3. Road and street services: c. Total (a.+b.) a. Traffic control operations 51,893 2. General fund appropriations 2,770,360 b. Snow and ice removal 792,312 3. Other local imposts (from page 2)114,434 c. Other 4. Miscellaneous local receipts (from page 2)486,787 d. Total (a. through c.)844,204 5. Transfers from toll facilities 4. General administration & miscellaneous 6. Proceeds of sale of bonds and notes: 5. Highway law enforcement and safety 449,435 a. Bonds - Original Issues 6. Total (1 through 5)3,274,904 b. Bonds - Refunding Issues B. Debt service on local obligations: c. Notes 1. Bonds: d. Total (a. + b. + c.)0 a. Interest 82,151 7. Total (1 through 6)3,371,580 b. Redemption 611,497B. Private Contributions c. Total (a. + b.)693,648C. Receipts from State government 2. Notes: (from page 2)192,483 a. InterestD. Receipts from Federal Government b. Redemption (from page 2)0 c. Total (a. + b.)0E. Total receipts (A.7 + B + C + D)3,564,063 3. Total (1.c + 2.c)693,648 C. Payments to State for highwaysD. Payments to toll facilitiesE. Total disbursements (A.6 + B.3 + C + D)3,968,553 Opening Debt Amount Issued Redemptions Closing DebtA. Bonds (Total)7,243,778 607,344 6,636,434 1. Bonds (Refunding Portion)B. Notes (Total)0 A. Beginning Balance B. Total Receipts C. Total Disbursements D. Ending Balance E. Reconciliation 3,564,063 3,968,553 (404,490)Notes and Comments: FORM FHWA-536 (Rev. 1-05) PREVIOUS EDITIONS OBSOLETE (Next Page) AND STREET PURPOSES LOCAL HIGHWAY FINANCE REPORT I. DISPOSITION OF HIGHWAY-USER REVENUES AVAILABLE FOR LOCAL GOVERNMENT EXPENDITURE ITEM III. DISBURSEMENTS FOR ROAD V. LOCAL ROAD AND STREET FUND BALANCE ITEM II. RECEIPTS FOR ROAD AND STREET PURPOSES IV. LOCAL HIGHWAY DEBT STATUS(Show all entries at par) ITEM 90 STATE: ColoradoYEAR ENDING (mm/yy):December 2020 AMOUNT AMOUNTA.3. Other local imposts:A.4. Miscellaneous local receipts: a. Property Taxes and Assessments a. Interest on investments b. Other local imposts: b. Traffic Fines & Penalities 1. Sales Taxes c. Parking Garage Fees 2. Infrastructure & Impact Fees d. Parking Meter Fees 3. Liens e. Sale of Surplus Property 4. Licenses f. Charges for Services 5. Specific Ownership &/or Other 114,434 g. Other Misc. Receipts 6. Total (1. through 5.)114,434 h. Other RETT 486,787 c. Total (a. + b.)114,434 i. Total (a. through h.)486,787 (Carry forward to page 1) (Carry forward to page 1) AMOUNT AMOUNTC. Receipts from State Government D. Receipts from Federal Government 1. Highway-user taxes 168,012 1. FHWA (from Item I.D.5.) 2. State general funds 2. Other Federal agencies: 3. Other State funds: a. Forest Service a. State bond proceeds b. FEMA b. Project Match c. HUD c. Motor Vehicle Registrations 24,472 d. Federal Transit Admin d. Other (Specify) - DOLA Grant e. U.S. Corps of Engineers e. Other (Specify) f. Other Federal f. Total (a. through e.)24,472 g. Total (a. through f.)0 4. Total (1. + 2. + 3.f)192,483 3. Total (1. + 2.g) (Carry forward to page 1) ON NATIONAL OFF NATIONALHIGHWAYHIGHWAY TOTAL SYSTEM SYSTEM(a)(b)(c)A.1. Capital outlay: a. Right-Of-Way Costs 0 b. Engineering Costs 0 c. Construction: (1). New Facilities 0 (2). Capacity Improvements 0 (3). System Preservation 0 (4). System Enhancement & Operation 0 (5). Total Construction (1) + (2) + (3) + (4)0 0 0 d. Total Capital Outlay (Lines 1.a. + 1.b. + 1.c.5)0 0 0 (Carry forward to page 1) Notes and Comments: FORM FHWA-536 (Rev.1-05) PREVIOUS EDITIONS OBSOLETE III. DISBURSEMENTS FOR ROAD AND STREET PURPOSES - DETAIL II. RECEIPTS FOR ROAD AND STREET PURPOSES - DETAIL LOCAL HIGHWAY FINANCE REPORT ITEM ITEM ITEM ITEM 91 THIS PAGE INTENTIONALLY LEFT BLANK 92 STATISTICAL SECTION This section of the Town of Avon’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the Town’s overall financial health. Financial Trends (Pages 94-102) – These schedules contain trend information to help readers understand how the Town’s financial performance and well-being have changed over time. Revenue Capacity (Pages 103-107) – These schedules contain information to help readers understand and assess the factors affecting the Town’s ability to generate its own-source revenues, specifically property taxes. Debt Capacity (Pages 108-111) – These schedules present information to help readers understand and assess the Town’s debt burden and ability to issue additional debt. Demographic and Economic Information (Pages 112-114) – These schedules offer demographic and economic information to help readers understand the environment in which the Town’s financial activities take place and to provide information that facilitates comparisons of financial statement information over time and among other local governments. Operating Information (Pages 115-117) – These schedules contain service and infrastructure information to help readers understand how the information in the Town’s financial report relates to the services the Town provides and the activities it performs. 93 TOWN OF AVON, COLORADO NET POSITION BY COMPONENT LAST TEN FISCAL YEARS 2011 2012 2013 2014 Governmental Activities Net Investment in Capital Assets 34,738,700$ 36,904,217$ 34,774,531$ 64,112,399$ Restricted For: Emergencies 447,963 428,947 476,619 598,376 Debt Service 1,047,077 1,015,589 1,139,575 1,136,228 Capital Improvements 2,972,175 2,530,266 4,635,904 3,386,451 Urban Renewal 242,620 216,002 367,082 305,379 Purposes of Grantors 2,725,334 2,238,966 2,007,140 929,226 Unrestricted 14,345,936 13,544,676 10,217,136 10,466,381 Total Governmental Activities Net Position 56,519,805$ 56,878,663$ 53,617,987$ 80,934,440$ Business-type Activities Net Investment in Capital Assets 1,815,425$ 1,761,245$ 12,583,125$ 12,097,298$ Unrestricted 1,256,004 943,960 783,529 843,503 Total Business-type Activities Net Position 3,071,429$ 2,705,205$ 13,366,654$ 12,940,801$ Primary Government Net Investment in Capital Assets 36,554,125$ 38,665,462$ 47,357,656$ 76,209,697$ Restricted 7,435,169 6,429,770 8,626,320 6,355,660 Unrestricted 15,601,940 14,488,636 11,000,665 11,309,884 Total Primary Government Net Position 59,591,234$ 59,583,868$ 66,984,641$ 93,875,241$ Source: Town of Avon Finance Department Fiscal Year 94 2015 2016 2017 2018 2019 2020 60,000,945$ 58,088,785$ 56,693,531$ 60,092,867$ 60,035,630$ 58,743,303$ 552,335 664,805 688,786 693,001 805,865 829,650 1,157,629 1,169,163 1,175,301 1,163,056 1,162,093 - 6,198,817 5,921,087 3,373,917 702,390 657,821 657,821 404,048 555,167 717,740 - - - 1,106,628 142,100 192,173 267,911 691,828 886,122 11,283,921 16,341,288 20,329,098 20,540,937 22,762,477 29,356,781 80,704,323$ 82,882,395$ 83,170,546$ 83,460,162$ 86,115,714$ 90,473,677$ 11,633,282$ 11,430,538$ 11,424,412$ 10,877,907$ 10,401,752$ 10,299,819$ 859,368 908,749 710,428 652,622 540,075 914,845 12,492,650$ 12,339,287$ 12,134,840$ 11,530,529$ 10,941,827$ 11,214,664$ 71,634,227$ 69,519,323$ 68,117,943$ 70,970,774$ 70,437,382$ 69,043,122$ 9,419,457 8,452,322 6,147,917 2,826,358 3,317,607 2,373,593 12,143,289 17,250,037 21,039,526 21,193,559 23,302,552 30,271,626 93,196,973$ 95,221,682$ 95,305,386$ 94,990,691$ 97,057,541$ 101,688,341$ Fiscal Year 95 TOWN OF AVON, COLORADO CHANGES IN NET POSITION LAST TEN FISCAL YEARS 2011 2012 2013 2014 Expenses Governmental Activities: General Government 3,539,636$ 3,400,499$ 2,836,303$ 3,186,870$ Community Development 519,631 421,554 365,960 463,821 Public Safety 2,569,100 2,554,404 2,551,559 2,792,174 Public Works and Utilities 5,821,879 5,479,239 4,814,364 7,179,132 Recreation and Culture 2,276,473 2,737,458 3,851,812 2,061,033 Interest and Fiscal Charges on Long-term Debt 575,100 516,160 600,367 504,343 Total Governmental Activity Expenses 15,301,819 15,109,314 15,020,365 16,187,373 Business-type Activities: Transportation 1,123,640 1,083,097 1,193,289 1,686,778 Fleet Maintenance 1,618,698 1,382,954 1,608,295 1,609,134 Total Business-type Activity Expenses 2,742,338 2,466,051 2,801,584 3,295,912 Total Primary Government Expenses 18,044,157$ 17,575,365$ 17,821,949$ 19,483,285$ Program Revenues Governmental Activities: Charges for Services: General Government 259,609$ 183,969$ 135,448$ 163,429$ Community Development 230,570 225,778 485,406 279,179 Public Safety 248,442 52,649 54,205 66,662 Public Works and Utilities 524,047 278,662 256,749 564,090 Recreation and Culture 1,208,130 1,116,947 1,064,314 1,092,276 Operating Grants and Contributions 59,329 39,607 39,217 52,151 Capital Grants and Contributions 247,368 1,715,337 7,823,132 1,027,911 Total Governmental Activity Program Revenues 2,777,495 3,612,949 9,858,471 3,245,698 Business-type Activities: Charges for Services 1,520,018 1,135,929 1,450,388 1,645,083 Operating Grants and Contributions - - - - Capital Grants and Contributions - 305,351 90,494 - Total Business-type Activity Program Revenues 1,520,018 1,441,280 1,540,882 1,645,083 Total Primary Government Program Revenues 4,297,513$ 5,054,229$ 11,399,353$ 4,890,781$ Net (Expense) Revenue Governmental Activities (12,524,324)$ (11,496,365)$ (5,161,894)$ (12,941,675)$ Business-type Activities (1,222,320) (1,024,771) (1,260,702) (1,650,829) Total Primary Government Net Expense (13,746,644)$ (12,521,136)$ (6,422,596)$ (14,592,504)$ Fiscal Year 96 2015 2016 2017 2018 2019 2020 3,042,126$ 3,291,190$ 3,500,101$ 3,661,274$ 5,968,157$ 6,274,190$ 1,341,706 1,202,097 1,617,329 1,454,581 557,539 513,004 3,039,333 3,214,680 3,703,871 3,983,349 4,310,801 4,466,597 8,458,218 9,656,808 9,026,700 9,448,309 8,134,954 8,245,335 1,430,648 1,584,531 1,684,492 1,978,431 2,160,389 1,814,889 639,267 754,238 796,462 720,441 617,694 538,010 17,951,298 19,703,544 20,328,955 21,246,385 21,749,534 21,852,025 1,979,505 1,963,223 2,253,558 2,272,401 2,502,195 2,325,260 1,506,138 1,623,046 1,655,774 1,720,433 1,780,524 1,784,854 3,485,643 3,586,269 3,909,332 3,992,834 4,282,719 4,110,114 21,436,941$ 23,289,813$ 24,238,287$ 25,239,219$ 26,032,253$ 25,962,139$ 219,364$ 239,199$ 294,431$ 272,153$ 280,165$ 197,989$ 380,130 369,867 396,731 395,239 843,810 421,822 69,629 99,862 64,275 93,646 60,017 41,786 764,549 698,195 287,151 233,982 484,271 195,682 1,238,395 1,334,056 1,519,254 1,458,802 1,385,312 744,429 11,713 104,217 84,761 75,430 89,873 826,152 61,779 1,816,456 31,237 491,600 815 37,206 2,745,559 4,661,852 2,677,840 3,020,852 3,144,263 2,465,066 1,670,213 1,557,439 1,482,770 1,564,465 1,644,868 1,813,132 - - - 75,000 245,980 646,470 - 100,000 328,000 - - - 1,670,213 1,657,439 1,810,770 1,639,465 1,890,848 2,459,602 4,415,772$ 6,319,291$ 4,488,610$ 4,660,317$ 5,035,111$ 4,924,668$ (15,205,739)$ (15,041,692)$ (17,651,115)$ (18,225,533)$ (18,605,271)$ (19,386,959)$ (1,815,430) (1,928,830) (2,098,562) (2,353,369) (2,391,871) (1,650,512) (17,021,169)$ (16,970,522)$ (19,749,677)$ (20,578,902)$ (20,997,142)$ (21,037,471)$ Fiscal Year 97 TOWN OF AVON, COLORADO CHANGES IN NET POSITION (CONTINUED) LAST TEN FISCAL YEARS 2011 2012 2013 2014 General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property Taxes 3,672,307$ 3,027,319$ 3,039,132$ 2,873,055$ Real Estate Transfer Taxes 1,616,982 1,707,648 1,574,502 3,764,526 Sales and Accommodation Taxes 6,190,839 6,340,557 7,249,935 8,089,010 Other Taxes 1,323,246 499,114 625,756 1,197,603 Unrestricted Investment Earnings 87,099 37,827 21,296 45,844 Loss on Disposal of Capital Assets - (30,857) - - Grants and Contributions Not Restricted to Specific Programs 857,474 839,112 864,231 883,884 Miscellaneous 372,222 344,503 408,142 500,925 Capital Contributions - - (10,955,776) 24,063,281 Transfers (950,000) (910,000) (926,000) (1,160,000) Total Governmental Activities 13,170,169 11,855,223 1,901,218 40,258,128 Business-type Activities: Property Taxes 40,371 40,032 40,375 40,079 Capital Contributions - - 10,955,776 24,897 Loss on Disposal of Capital Assets - (291,485) - - Transfers 950,000 910,000 926,000 1,160,000 Total Business-type Activities 990,371 658,547 11,922,151 1,224,976 Total Primary Government 14,160,540$ 12,513,770$ 13,823,369$ 41,483,104$ Change in Net Position Governmental Activities 645,845$ 358,858$ (3,260,676)$ 27,316,453$ Business-type Activities (231,949) (366,224) 10,661,449 (425,853) Total Primary Government 413,896$ (7,366)$ 7,400,773$ 26,890,600$ Source: Town of Avon Finance Department Fiscal Year 98 2015 2016 2017 2018 2019 2020 2,904,509$ 3,315,020$ 2,876,177$ 3,260,557$ 3,226,470$ 3,727,486$ 2,369,314 3,497,602 4,411,530 3,621,125 5,001,145 5,998,950 8,754,673 9,540,260 9,437,658 10,595,905 11,438,117 11,303,195 1,208,352 1,389,896 1,385,171 641,144 990,898 996,839 53,161 139,665 178,997 398,998 549,998 288,927 - - - - - - 482,769 513,912 913,784 932,146 968,549 918,375 529,843 558,618 589,767 772,766 847,185 2,392,866 - (150,215) (103,403) - (61,539) - (1,326,999) (1,584,994) (1,750,415) (1,707,492) (1,700,000) (1,881,716) 14,975,622 17,219,764 17,939,266 18,515,149 21,260,823 23,744,922 40,280 40,258 40,297 41,566 41,630 41,633 - 150,215 103,403 - 61,539 - - - - - - - 1,326,999 1,584,994 1,750,415 1,707,492 1,700,000 1,881,716 1,367,279 1,775,467 1,894,115 1,749,058 1,803,169 1,923,349 16,342,901$ 18,995,231$ 19,833,381$ 20,264,207$ 23,063,992$ 25,668,271$ (230,117)$ 2,178,072$ 288,151$ 289,616$ 2,655,552$ 4,357,963$ (448,151) (153,363) (204,447) (604,311) (588,702) 272,837 (678,268)$ 2,024,709$ 83,704$ (314,695)$ 2,066,850$ 4,630,800$ Fiscal Year 99 TOWN OF AVON, COLORADO CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2011 2012 2013 2014 Revenues Taxes 12,083,403$ 11,574,638$ 12,489,325$ 15,924,194$ Licenses and Permits 219,265 207,670 336,548 210,636 Intergovernmental 1,164,171 2,594,056 8,324,980 1,963,946 Charges for Services 1,593,303 1,473,552 1,556,262 1,757,625 Fines and Forfeitures 197,103 151,533 104,736 131,513 Investment Earnings 87,099 37,827 21,296 45,827 Other Revenues 368,568 380,647 531,738 503,354 Total Revenues 15,712,912 16,419,923 23,364,885 20,537,095 Expenditures Current: General Government and Housing 3,411,329 3,088,911 2,762,979 3,084,616 Community Development 519,268 421,133 369,158 456,063 Public Safety 2,516,612 2,551,488 2,539,475 2,726,711 Public Works and Utilities 3,429,238 3,192,763 1,911,225 3,799,489 Recreation and Culture 2,054,477 2,148,410 3,328,177 1,654,078 Capital Improvements 1,023,914 4,087,083 11,837,101 7,927,709 Debt Service: Principal 1,195,000 1,240,000 7,300,000 1,491,042 Interest 526,288 470,455 423,487 453,883 Bond Issuance Costs - - 133,330 - Fiscal Charges 56,614 43,622 39,145 51,007 Total Expenditures 14,732,740 17,243,865 30,644,077 21,644,598 Excess (Defieiency) of Revenues Over (Under) Expenditures 980,172 (823,942) (7,279,192) (1,107,503) Other Financing Sources (Uses) Transfers In 1,090,335 1,591,071 2,081,160 4,888,511 Transfers Out (2,040,335) (2,501,071) (3,007,160) (6,048,511) Debt Issuance Proceeds - - 6,851,367 - Payments to Escrow Agent - - - - Sales of Capital Assets - - 1,151 - Total Other Financing Sources (Uses)(950,000) (910,000) 5,926,518 (1,160,000) Net Change in Fund Balances 30,172$ (1,733,942)$ (1,352,674)$ (2,267,503)$ Debt Service as a Percentage of Noncapital Expenditures 12.39%12.60%39.77%12.95% Source: Town of Avon Finance Department Fiscal Year 100 2015 2016 2017 2018 2019 2020 15,236,848$ 17,742,776$ 18,148,536$ 18,118,731$ 20,656,630$ 22,026,470$ 335,741 259,997 374,311 398,860 752,345 388,494 989,546 2,868,277 1,029,782 1,499,176 1,156,632 1,781,733 1,682,724 1,772,510 2,005,812 1,927,701 2,181,861 1,173,521 129,356 91,014 94,311 52,220 51,535 39,693 53,158 139,665 178,997 398,998 549,998 288,927 532,353 651,603 664,037 748,101 838,635 2,367,398 18,959,726 23,525,842 22,495,786 23,143,787 26,187,636 28,066,236 2,916,095 3,119,007 3,379,282 3,636,761 4,982,737 5,522,841 1,348,166 1,201,086 1,505,073 1,342,798 521,129 500,739 3,007,164 3,122,942 3,416,991 3,690,530 3,984,465 4,050,935 4,080,272 5,067,825 4,318,222 4,310,596 4,397,725 4,067,683 1,147,149 1,293,277 1,436,483 1,585,571 1,703,007 1,311,887 3,284,852 8,864,565 6,721,147 8,449,771 3,532,547 2,111,194 1,264,966 1,382,506 1,239,743 1,371,210 1,335,902 1,414,010 503,269 473,674 746,385 666,120 624,162 429,221 80,569 147,270 41,162 - - 113,525 41,289 54,071 81,625 63,337 10,060 7,084 17,673,791 24,726,223 22,886,113 25,116,694 21,091,734 19,529,119 1,285,935 (1,200,381) (390,327) (1,972,907) 5,095,902 8,537,117 4,361,441 2,819,319 5,508,421 3,266,471 1,623,043 2,205,115 (5,138,440) (4,404,313) (7,258,836) (5,016,471) (3,323,043) (4,086,831) 3,800,000 6,300,000 3,080,204 258,258 - 6,084,000 - - - - - (6,850,698) - - - - - - 3,023,001 4,715,006 1,329,789 (1,491,742) (1,700,000) (2,648,414) 4,308,936$ 3,514,625$ 939,462$ (3,464,649)$ 3,395,902$ 5,888,703$ 11.37%10.95%10.85%10.65%10.61%10.07% Fiscal Year 101 TOWN OF AVON, COLORADO FUND BALANCES, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS 2011 2012 2013 2014 2015 General Fund Nonspendable -$ -$ 7,442$ -$ 13,061$ Restricted 447,963 428,947 476,619 598,376 552,335 Assigned 413,251 413,251 413,251 325,000 47,878 Unassigned 3,329,981 3,134,327 4,369,187 3,540,922 5,046,651 Total General Fund 4,191,195 3,976,525 5,266,499 4,464,298 5,659,925 All Other Governmental Funds Nonspendable - - - 270 - Restricted 6,987,206 6,045,396 2,803,943 2,370,833 2,668,305 Committed 4,100,746 3,656,294 3,624,653 3,386,451 6,198,817 Assigned 810,418 680,408 1,307,854 513,594 517,335 Unassigned - - - - - Total All Other Governmental Funds 11,898,370$ 10,382,098$ 7,736,450$ 6,271,148$ 9,384,457$ 2016 2017 2018 2019 2020 General Fund Nonspendable 86,136$ -$ -$ -$ -$ Restricted 664,805 688,786 693,001 805,865 829,650 Assigned - - - - - Unassigned 5,312,950 5,125,805 5,611,041 7,392,670 9,373,237 Total General Fund 6,063,891 5,814,591 6,304,042 8,198,535 10,202,887 All Other Governmental Funds Nonspendable - - Restricted 7,787,517 5,459,131 2,133,357 2,511,742 1,543,943 Committed 4,493,621 7,941,466 7,336,358 8,218,307 11,657,356 Assigned 516,183 585,486 716,549 832,594 2,165,857 Unassigned - - (154,281) (29,251) 50,587 Total All Other Governmental Funds 12,797,321$ 13,986,083$ 10,031,983$ 11,533,392$ 15,417,743$ Source: Town of Avon Finance Department Fiscal Year Fiscal Year 102 TOWN OF AVON, COLORADO TAX REVENUES BY SOURCE, GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS Avon Urban Penalties, Interest Delinquent Specific Year General Renewal Authority & Abatements Taxes Ownership 2011 2,683,995$ 1,005,682$ (42,784)$ 25,414$ 93,596$ 2012 2,209,790 743,212 1,805 (19,593) 92,105 2013 2,158,148 777,838 5,421 875 96,850 2014 2,039,463 784,986 (64,246) 6 112,848 2015 2,027,434 756,471 7,124 172 113,308 2016 2,284,282 1,026,248 4,491 - 119,483 2017 1,733,823 1,136,777 5,555 22 99,498 2018 1,829,624 1,428,646 1,106 181 105,234 2019 1,839,155 1,386,475 12 828 113,657 2020 2,041,834 1,568,090 3,128 - 114,434 Real Estate Sales Utility Accommodations Village at Avon Year Transfer Tax Tax Tax Tax Retail Sales Fee 2011 1,616,982$ 5,461,559$ 125,155$ 746,026$ -$ 2012 1,707,648 5,607,160 127,060 733,397 - 2013 1,574,502 6,374,134 110,474 888,867 118,622 2014 3,764,526 7,093,469 109,441 995,540 683,833 2015 2,369,314 7,622,097 106,786 1,132,576 697,924 2016 3,497,602 8,250,381 102,643 1,289,879 735,280 2017 4,448,666 8,104,582 102,279 1,333,939 763,915 2018 3,621,125 8,475,940 105,881 1,334,306 785,659 2019 5,001,145 9,146,851 107,293 1,486,842 804,424 2020 5,998,950 9,214,444 102,442 1,217,787 870,964 Cigarette Tobacco Franchise Year Excise Tax Tax Fees Total 2011 -$ -$ 367,778$ 12,083,403$ 2012 - - 372,054 11,574,638 2013 - - 383,594 12,489,325 2014 - - 404,328 15,924,194 2015 - - 403,642 15,236,848 2016 - - 432,488 17,742,777 2017 - - 419,479 18,148,536 2018 - - 430,029 18,117,731 2019 189,305 146,016 434,627 20,656,630 2020 250,995 214,907 428,495 22,026,470 Source: Town of Avon Finance Department Property Tax 103 TOWN OF AVON, COLORADO ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Total Gross Levy Collection Vacant Residential Commercial Other Assessed Year Year Land Property Property Property Value 2010 2011 23,241,510$ 138,877,350$ 97,287,710$ 3,127,070$ 262,533,640$ 2011 2012 17,238,450 101,871,140 73,141,140 3,361,120 195,611,850 2012 2013 15,456,680 102,328,980 71,704,020 3,441,730 192,931,410 2013 2014 16,403,340 90,703,150 67,157,140 4,576,530 178,840,160 2014 2015 15,183,630 92,056,060 66,419,690 4,280,110 177,939,490 2015 2016 14,261,780 121,724,600 70,940,420 3,929,820 211,061,910 2016 2017 13,201,140 123,870,280 69,822,570 4,310,460 211,204,450 2017 2018 12,927,680 129,786,330 79,660,040 4,387,310 226,761,360 2018 2019 11,625,280 131,277,920 83,581,320 3,901,750 230,386,270 2019 2020 12,669,770 146,905,210 89,774,540 3,291,140 252,640,660 Less TIF Total Net Direct Actual Value as a Levy Collection District Assessed Tax Taxable Percentage of Year Year Increment (1)Value Rate Value Actual Value 2010 2011 17,481,590$ 245,052,050$ 11.220 2,127,634,050$ 12.34% 2011 2012 12,538,960 183,072,890 12.072 1,566,445,080 12.49% 2012 2013 12,511,160 180,420,250 11.983 1,564,516,920 12.33% 2013 2014 12,105,380 166,734,780 12.258 1,406,594,920 12.71% 2014 2015 11,501,900 166,437,590 12.207 1,417,405,720 12.55% 2015 2016 16,476,380 194,585,530 11.765 1,806,178,690 11.69% 2016 2017 17,221,870 193,982,580 8.956 1,825,187,770 11.57% 2017 2018 21,857,430 204,903,930 8.956 2,104,646,220 10.77% 2018 2019 21,475,340 208,910,930 8.956 2,121,154,740 10.86% 2019 2020 24,201,100 228,439,560 8.956 2,389,931,130 10.57% Source: Eagle County Assessor's Office, Abstract of Assessments (1) The Avon Urban Renewal Authority was established in August, 2007. Notes: Property tax rates are stated in mills per $1,000 of assessed valuation. Other property includes state assessed, agricultural, and abatements and corrections. 104 TOWN OF AVON, COLORADO DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS Taxing Entity 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Town of Avon General Operating 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 8.956 General Obligation Debt Service 2.264 3.116 3.027 3.302 3.251 2.809 0.000 0.000 0.000 0.000 Total Direct 11.220 12.072 11.983 12.258 12.207 11.765 8.956 8.956 8.956 8.956 Eagle County 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 8.499 Colleges and School Districts Colorado Mountain College 3.997 3.997 3.997 3.997 3.997 3.997 3.997 3.997 4.013 4.013 Eagle County School District RE-50J 19.474 21.601 21.362 20.826 21.517 20.331 25.209 24.912 24.240 24.069 Metropolitan Districts Avon Station Metropolitan District 45.000 58.000 58.000 58.000 58.000 58.000 63.000 65.585 65.572 65.780 Confluence Metropolitan District 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 Mountain Vista Metropolitan District 25.000 25.000 25.000 25.000 25.000 25.000 25.000 26.155 26.354 9.250 The Village Metropolitan District 40.000 50.000 50.000 50.000 50.000 50.000 50.000 50.000 50.000 15.000 Other Special Districts Avon General Improvement District No. 1 9.396 15.288 15.288 17.557 17.557 14.077 14.005 14.005 14.005 15.186 Eagle River Fire Protection District 5.550 5.650 7.553 9.238 9.392 8.205 9.740 9.828 9.766 10.023 Eagle Valley Library District 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.750 2.763 2.763 Eagle River Water and Sanitation District 0.796 0.932 0.931 0.946 0.954 1.375 1.385 1.302 0.766 0.766 Colorado River Water Conservancy District 0.188 0.228 0.242 0.254 0.253 0.243 0.253 0.254 0.235 0.502 Eagle County Health Services District 1.768 1.764 2.023 2.006 2.019 2.008 2.755 2.753 2.781 2.755 Source: Eagle County Assessor's Office, Abstract of Assessment Notes: Property tax rates are stated in mills per $1,000 of assessed valuation. The Town's general operating mill rate may be increased only by a majority approval of the Town's residents during a general election. Rates for debt service are set based on each year's debt service requirements. Collection Year 105 TOWN OF AVON, COLORADO PRINCIPAL PROPERTY TAX PAYERS CURRENT YEAR AND NINE YEARS AGO Percentage Percentage of Total of Total Taxable Town of Avon Taxable Town of Avon Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value CSB Properties Holdings LLC 10,554,390$ 1 4.18%-$ NA 0.00% Traer Creek-WMT LLC 6,172,680 2 2.44%7,508,370 1 2.86% Riverfront Village Hotel, LLC 4,793,178 3 1.90%5,942,280 2 2.26% Avon MOB LLC 4,930,820 4 1.95%- NA 0.00% Traer Creek-HD LLC 4,348,210 5 1.72%5,081,380 5 1.94% Prime Group Mountain Center LLC 4,257,480 6 1.69%- NA 0.00% Avon Wynfield LLC 4,222,470 7 1.67%2,957,460 8 1.13% Beaver Creek Vacation Ownership Plan 3,907,150 8 1.55%- NA 0.00% Points of Colorado 3,245,000 9 1.28%3,685,290 7 1.40% Mountain Vista Condominium Assoc Inc.2,816,510 10 1.11%2,505,980 11 0.95% Dillon Real Estate Co, Inc 2,790,230 11 1.10%2,174,780 13 0.83% Prime Group Avon LLC 2,281,780 12 0.90%- NA 0.00% Christie Lodge Assoc Ltd 2,262,400 13 0.90%2,063,870 14 0.79% Riverfront Mtn Villas Condominium 2,048,400 14 0.81%- NA 0.00% CH Retail Fund II/Bvr Crk Nttngham Sta 1,983,740 15 0.79%- NA 0.00% Avon Partners II, LLC - NA 0.00%5,398,100 3 2.06% Traer Creek-L2 LLC - NA 0.00%2,900,000 9 1.10% Chapel Square Ventures LP - NA 0.00%5,296,510 4 2.02% CCS Vail Loan LLC - NA 0.00%4,295,870 6 1.64% ARI Mountain Center LLC - NA 0.00%2,870,840 10 1.09% Traer Creek-RP LLC - NA 0.00%1,902,600 15 0.72% Riverview Park Assoc., Inc - NA 0.00%2,204,950 12 0.84% Total Assessed Value of the Fifteen Largest Taxpayers 60,614,438 23.99%56,788,280 21.63% Total Gross Assessed Value of Other Taxpayers 192,026,222 76.01%205,745,360 78.37% Total Gross Assessed Value of All Taxpayers 252,640,660$ 100.00%262,533,640$ 100.00% Source: Eagle County Assessor's Office 2020 2011 106 TOWN OF AVON, COLORADO PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Ratio of (2)Total Tax (1)Current Percent of Delinquent Total Collections Levy Collection Total Tax Current Taxes Tax Tax To Total Year Year Tax Levy Collections Collected Collections Collections Tax Levy 2010 2011 2,789,855 2,704,440 96.94%4,970 2,709,409 97.12% 2011 2012 2,250,055 2,209,593 98.20%(19,296) 2,190,298 97.34% 2012 2013 2,202,287 2,160,634 98.11%875 2,161,509 98.15% 2013 2014 2,083,835 2,042,508 98.02%6 2,042,514 98.02% 2014 2015 2,071,895 2,029,571 97.96%172 2,029,743 97.97% 2015 2016 2,329,489 2,286,146 98.14%- 2,286,146 98.14% 2016 2017 1,777,498 1,736,538 97.70%22 1,736,560 97.70% 2017 2018 1,876,652 1,829,624 97.49%181 1,829,805 97.50% 2018 2019 1,912,703 1,839,155 96.15%828 1,839,983 96.20% 2019 2020 2,087,501 2,083,430 99.80%- 2,083,430 99.80% Source: Town of Avon Finance Department Notes: (1) Taxes are due and payable on January 1 based on the prior year's assessed valuation. (2) Information on outstanding delinquent taxes is not available. 107 TOWN OF AVON, COLORADO RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS General Special Certificates Fiscal Obligation Assessment Revenue of Capital Year Bonds Bonds Bonds Participation Loans Leases 2011 2,411,440$ -$ 1,275,000$ 3,195,000$ 6,565,000$ 420,063$ 2012 1,960,045 - 870,000 3,075,000 6,295,000 476,227 2013 1,498,650 - 7,270,000 2,950,000 - 516,378 2014 1,017,255 - 6,520,000 2,825,000 - 547,990 2015 520,860 - 6,200,000 6,280,000 - 438,024 2016 - - 5,790,000 12,235,000 - 325,518 2017 - - 8,225,362 11,675,000 - 566,231 2018 - - 7,649,283 11,324,659 - 401,100 2019 - - 7,053,286 10,661,468 - 311,195 2020 - - 2,317,223 9,535,000 3,651,000 236,248 Certificates Total Percentage Fiscal of Capital Primary of Personal Per Year Participation Leases Government Income Capita 2011 3,302,110$ 377,753$ 17,546,366$ 0.73%2,477$ 2012 3,174,614 326,774 16,177,660 0.64%2,531 2013 3,047,119 303,251 15,585,398 0.53%2,440 2014 2,914,623 244,259 14,069,127 0.43%2,195 2015 2,777,127 185,937 16,401,948 0.46%2,534 2016 2,605,000 125,825 21,081,343 0.56%3,241 2017 2,465,000 63,864 22,995,457 0.57%3,603 2018 2,349,640 258,258 21,982,940 0.49%3,373 2019 2,197,144 224,979 20,448,072 0.44%3,213 2020 1,826,000 190,561 17,756,032 NA 2,743 Source: Town of Avon Finance Department Governmental Activities Business-Type Activities 108 TOWN OF AVON, COLORADO DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT DECEMBER 31, 2020 Estimated Estimated Share of Debt Percentage Overlapping Government Unit Outstanding Applicable a Debt Debt Repaid With Property Taxes Confluence Metropolitan District 21,875,000$ 100.00%21,875,000$ Eagle County School District RE-50J 257,475,315 7.70%19,833,112 Eagle River Fire Protection District 23,605,554 22.75%5,371,368 The Village Metropolitan District 45,000,000 100.00%45,000,000 Other Debt Eagle County 18,880,000 7.17%1,353,680 Subtotal - Overlapping debt 93,433,159 Town of Avon Direct Debt 18,025,949 Total Direct and Overlapping Debt 111,459,108$ Source: Various Governmental Entities, Eagle County Finance Department Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of Avon. This process recognizes that, when considering the Town's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt of each overlapping government. a The basic approach to estimating the applicable percentage of overlapping debt was to divide the assessed value of the portion overlapping the Town to the total assessed value of the overlapping entity. 109 TOWN OF AVON, COLORADO RATIO OF GENERAL BONDED DEBT OUTSTANDING AND LEGAL DEBT MARGIN LAST TEN FISCAL YEARS 2011 2012 2013 2014 General Bonded Debt Outstanding General Obligation Bonds 2,380,000$ 2,380,000$ 1,480,000$ 1,005,000$ Actual Taxable Property Value 2,127,634,050 1,566,445,080 1,564,516,920 1,406,594,920 Net Assessed Value 245,052,050 183,072,890 180,420,250 166,734,780 Percentage of General Bonded Debt Outstanding to Actual Taxable Property Value 0.11%0.15%0.09%0.07% Town of Avon Population 7,085 6,393 6,388 6,410 Per Capita 336$ 372$ 232$ 157$ Legal Debt Limit 61,263,013$ 45,768,223$ 45,105,062$ 41,683,695$ Total Debt Applicable to Limit (2,380,000) (2,380,000) (1,480,000) (1,005,000) Legal Debt Margin 58,883,013$ 43,388,223$ 43,625,062$ 40,678,695$ Total Debt Applicable to the Limit as a Percentage of Legal Debt Limit 3.88%5.20%3.28%2.41% Source: Eagle County Assessor's Office, State of Colorado Division of Local Governments Fiscal Year 110 2015 2016 2017 2018 2019 2020 515,000$ -$ -$ -$ -$ -$ 1,417,405,720 1,806,178,690 1,825,187,770 2,104,646,220 2,121,154,740 2,444,013,540 166,437,590 194,585,530 193,982,580 204,903,930 208,910,930 228,369,310 0.04%0.00%0.00%0.00%0.00%0.00% 6,472 6,505 6,383 3,518 6,365 6,474 80$ -$ -$ -$ -$ -$ 41,609,398$ 48,646,382$ 48,495,645$ 51,225,982$ 52,227,732$ 57,092,328$ (515,000) - - - - - 41,094,398$ 48,646,382$ 48,495,645$ 51,225,982$ 52,227,732$ 57,092,328$ 1.24%0.00%0.00%0.00%0.00%0.00% Fiscal Year 111 TOWN OF AVON, COLORADO DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN FISCAL YEARS Eagle Eagle County Eagle County Eagle County Denver / Eagle Town of Eagle Personal Per Capita County RE-50J Boulder County Avon County Income Personal Median School Consumer Unemployment Year Population Population (In $1,000's)Income Age Enrollment Price Index Rate 2011 7,085 54,212 2,415,413$ 48,618$ 36.30 6,344 220.3 8.70% 2012 6,393 51,874 2,528,424 48,485 35.20 6,244 224.6 8.20% 2013 6,388 53,811 2,920,455 48,750 36.00 6,549 230.8 5.20% 2014 6,410 52,460 3,245,123 50,416 36.20 6,713 237.2 4.75% 2015 6,472 53,605 3,583,264 57,927 36.50 6,546 240.0 2.10% 2016 6,505 53,989 3,741,395 61,522 36.70 6,901 246.6 2.81% 2017 6,383 52,576 4,060,543 64,581 35.60 6,959 254.9 2.22% 2018 6,518 51,364 4,524,124 70,384 39.00 6,882 261.9 2.59% 2019 6,365 55,127 4,672,862 82,342 36.50 6,902 267.4 2.25% 2020 6,474 55,483 NA 84,765 37.81 6,931 272.2 5.10% N/A - Information not available. Information was compiled by the Demographic Section of the Colorado Division of Local Government, Bureau of Labor Statistics and U.S. Census Bureau. School Enrollment was obtained by Eagle County School District Administration Office based on June Enrollment. Per Capita Personal Income obtained from Bureau of Economic Analysis, Regional Economic Accounts. 112 TOWN OF AVON, COLORADO PRINCIPAL EMPLOYERS CURRENT YEAR AND NINE YEARS AGO Employer Employees Rank Employees Rank Westin Riverfront Resort & Spa 330 1 230 3 Wal-Mart 250 2 246 2 City Market 139 3 115 5 Maya, Mexican Kitchen 132 4 NA NA Eagle River Water & Sanitation 115 5 97 6 Home Depot 112 6 357 1 Christie Lodge 105 7 77 9 Town of Avon 99 8 87 8 Colorado Mountain Medical - Avon 71 9 NA NA Sheraton Mountain Vista 47 10 89 7 Montana's Bar & Grill NA NA 45 10 Restaurant Avondale NA NA 150 4 Sources: Various Town of Avon businesses, Department of Labor 2020 2011 113 TOWN OF AVON, COLORADO COMMERCIAL AND RESIDENTIAL CONSTRUCTION LAST TEN FISCAL YEARS Total Total Building Permits Square No. of Construction Year Issued Footage Value Units Value Value 2011 125 2,210 922,600$ 9 8,412,190$ 9,334,790$ 2012 126 54,250 11,400,000 8 2,448,500 13,848,500 2013 159 217,293 27,121,876 12 9,027,760 36,149,636 2014 156 - 1,500,000 10 13,735,900 15,235,900 2015 153 114,614 14,336,000 10 6,970,000 21,306,000 2016 158 90,309 21,525,147 7 8,551,360 30,076,507 2017 167 60,043 29,298,052 6 18,930,069 48,228,121 2018 164 93,579 37,542,440 20 15,120,198 52,662,638 2019 177 23,276 11,851,054 278 64,258,298 76,109,352 2020 169 36,082 14,430,422 12 10,341,682 24,772,104 Source: Town of Avon Community Development Department Commercial Construction Residential Construction 114 TOWN OF AVON, COLORADO FULL-TIME EQUIVALENT EMPLOYEES BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2011 2012 2013 2014 2015 General Government Administration 3.75 2.75 3.75 4.75 4.75 Special Events 1.00 1.00 1.00 1.00 1.00 Human Resources 2.00 2.00 2.00 2.00 3.00 Finance 8.00 8.00 8.00 8.00 8.00 Nondepartmental 3.00 1.00 1.00 1.00 1.00 Community Development 5.00 4.00 3.00 3.00 3.00 Police 20.00 20.00 20.00 20.00 20.00 Public Works: Engineering 3.00 2.00 2.00 2.00 2.00 Buildings and Facilities 2.75 2.75 3.00 3.00 4.00 Roads and Bridges, Parks 16.25 15.25 16.00 14.00 14.00 Mobility 4.35 4.35 4.00 4.00 6.00 Fleet Maintenance 9.25 7.25 8.00 8.00 8.00 Recreation 8.00 9.00 6.00 7.00 9.00 Total 86.35 79.35 77.75 77.75 83.75 2016 2017 2018 2019 2020 General Government Administration 4.60 4.60 5.00 6.00 5.00 Special Events 1.00 2.00 2.00 2.00 1.00 Human Resources 3.00 3.00 3.75 3.75 3.75 Finance 8.00 8.00 9.00 9.00 8.50 Nondepartmental 1.00 1.00 1.00 1.00 1.00 Community Development 3.00 3.00 3.00 3.75 3.00 Police 20.40 20.40 21.50 22.50 22.50 Public Works: Engineering 2.00 2.00 2.00 2.00 2.00 Buildings and Facilities 4.00 5.00 5.00 5.00 5.00 Roads and Bridges, Parks 15.00 16.00 15.00 16.00 15.00 Mobility 6.00 6.00 8.00 8.00 8.00 Fleet Maintenance 8.00 8.00 8.00 8.00 8.00 Recreation 9.00 10.00 10.00 10.00 9.50 Total 85.00 89.00 93.25 97.00 92.25 Source: Town of Avon Budget Full-time Equivalent Employees as of December 31 Full-time Equivalent Employees as of December 31 115 TOWN OF AVON, COLORADO OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS 2011 2012 2013 2014 Town of Avon Facilities and Services: Miles of Streets 23.73 23.73 23.73 23.73 Number of Street Lights 632 632 632 613 Culture and Recreation: Miles of Bike/Pedestrian Paths 8.75 8.75 8.75 8.82 Miles of dirt, singletrack trails 0.00 0.00 0.00 11.00 Parks / Lakes 5/1 5/1 5/1 5/1 Park Acreage 672 672 672 672 Tennis/Volleyball /Basketball Courts/Pickleball Courts 4 / 2 / 3 4 / 2 / 3 4 / 2 / 3 / 2 4 / 2 / 3 / 2 Recreation Centers 1 1 1 1 Softball / Soccer Fields 1 / 2 1 / 2 1 / 2 1 / 2 Playgrounds 4 4 4 4 Performance Art Pavilion 1 Police Protection: Number of Stations 1 1 1 1 Number of Police Personnel and Officers 18 20 20 20 Number of Patrol Units 15 16 16 16 Number of Law Violations: General Ordinance Violations 218 396 207 438 Traffic Violations 1,204 495 285 372 Parking Violations 285 110 165 366 Facilities and Services Not Included in the Reporting Entity: Libraries: Number of Libraries / Volumes 1 / 83,008 1 / 82,193 1 / 79,405 1 / 80,239 Water System: Miles of Water Mains 24.99 24.99 24.99 24.99 Number of Service Connections 3,799 3,814 3,831 3,897 Daily Average Consumption in Gallons 687,099 589,567 675,728 706,833 Maximum Daily Capacity of Plant in Gallons 10MGD 10MGD 10MGD 10MGD Sanitary Sewer System: Miles of Sanitary Sewers 33.44 33.44 33.44 33.44 Number of Treatment Plants 1 1 1 1 Number of Service Connections 3,933 3,953 3,969 4,038 Maximum Daily Capacity of Treatment Plant in Gallons 4.3MGD 4.3MGD 4.3MGD 4.3MGD Education: Number of Elementary Schools / Instructors 1 / 23 1 / 23 1 / 27 1 / 25 Fire Protection: Number of Stations 9 8 5 5 Number of Fire Personnel and Officers 55 55 66 64 Number of Calls Answered 2,198 2,089 2,244 2,357 Number of Inspections Conducted 166 190 154 154 Fiscal Year 116 2015 2016 2017 2018 2019 2020 23.73 23.73 23.73 23.73 23.73 23.73 619 634 646 646 666 699 8.82 9.32 9.32 9.36 9.44 9.51 11.00 11.00 11.00 11.00 11.00 11.00 5/1 5/1 5/2 5/2 5/2 5/2 672 672 672 672 672 672 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 4 / 2 / 3 / 2 1 1 1 1 1 1 1 / 2 1 / 2 1 / 2 1 / 2 1 / 2 1 / 2 4 4 4 4 4 4 1 1 1 1 1 1 1 1 1 1 1 1 21 23 23 23 22 23 15 15 15 15 15 15 384 419 91 118 82 52 314 543 446 142 226 208 282 234 147 59 160 157 1 / 79,226 1 / 77,490 1 / 78,779 1 / 77,137 1 / 75,963 1 / 77,318 24.99 24.99 24.99 24.99 24.99 24.99 3,917 3,917 3,980 3,980 4,019 4,267 706,833 709,478 712,521 718,731 725,684 698,030 10MGD 10MGD 10MGD 10MGD 10MGD 10MGD 33.44 33.44 33.44 33.44 33.44 33.44 1 1 1 1 1 1 4,086 4,086 4,118 4,118 4,157 4,405 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 4.3MGD 1 / 27 1 / 47 1 / 62 1 / 44 1 / 39 1 / 36 5 6 6 5 5 5 67 68 68 70 70 68 636 670 644 554 564 2,518 122 175 179 166 134 127 Fiscal Year 117 THIS PAGE INTENTIONALLY LEFT BLANK 118 TOWN OF AVON, COLORADO NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED DECEMBER 31, 2020 Note 1. General The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Town of Avon under programs of the federal government for the year ended December 31, 2020. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Town of Avon, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of Avon. Note 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereas certain types of expenditures are not allowable or are limited as to reimbursement. Note 3. Sub-recipients The Town of Avon did not provide any federal funds listed in the Schedule of Expenditures of Federal Awards to sub-recipients. Note 4. Indirect Facilities and Administration Costs The Town of Avon did not elect to use the 10% de minimus cost rate allowed in Title 2 U.S. Code of Federal Regulations (CFR) Part 200.414, Indirect (F&A) costs. 119 McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 120 M & A INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AN D ON COMPLIANCE AND OTHER MAT TERS BASED ON AN AUDIT OF FINANCIAL STAT EMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Town Council Town of Avon, Colorado We have audited, in accordance with auditing standards generally accepted in the United States of Am erica and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Town of Avon, Colorado (the “Town”) as of and for the year ended December 31, 2020, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements and have issued our report thereon dated July 6, 2021. Internal Control Over Financial Reporting In planning and performing our audit on the financial statements, we considered the Town’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent,or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Town’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe that a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. INDEPENDENT AUDITOR'S REPORT Town of Avon, Colorado 121 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. McMahan and Associates, L.L.C. Avon, Colorado July 6, 2021 McMahan and Associates, l.l.c. Certified Public Accountants and Consultants Web Site: www.mcmahancpa.com Chapel Square, Bldg C Main Office: (970) 845-8800 245 Chapel Place, Suite 300 Facsimile: (970) 845-8108 P.O. Box 5850, Avon, CO 81620 E-mail: mcmahan@mcmahancpa.com Member: American Institute of Certified Public Accountants Paul J. Backes, CPA, CGMA Avon: (970) 845-8800 Michael N. Jenkins, CA, CPA, CGMA Aspen: (970) 544-3996 Daniel R. Cudahy, CPA, CGMA Frisco: (970) 668-3481 122 M & A INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AN D ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and Town Council Town of Avon, Colorado Report on Compliance for Each Major Program We have audited the Town of Avon, Colorado’s (the “Town”) compliance with the types of compliance requirements described in the U.S. Office of Management and Budget OMB Compliance Supplement that could have a direct and material effect on each of the Town’s major federal programs for the year ended December 31, 2020. The Town’s major federal programs are identified in the Summary of Auditor’s Results section of the accompanying Schedule of Findings and Questioned Costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Town’s major federal programs based on our audit of the types of compliance requirements referred to above, We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (the “Uniform Guidance”). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on the Town’s compliance with those requirements. INDEPENDENT AUDITOR's REPORT Town of Avon, Colorado 123 Opinion on Each Major Federal Program In our opinion, the Town complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2020. Report on Internal Control Over Compliance Management of the Town is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit, we considered the Town’s internal control over compliance with types of requirements that could have a direct and material effect on each major federal program to determine our auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do no express an opinion on the effectiveness of the Town’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent,or detect and correct, noncompliance with a type of compliance requirement of a federal program or on a timely basis. A material weakness in internal control over compliance is a deficienc y, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over com pliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over com pliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report in internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. McMahan and Associates, L.L.C. Avon, Colorado July 6, 2021 Town of Avon, Colorado SCHEDULE OF PRIOR AUDIT FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2020 124 Part I –Summary of Auditor’s Results Financial Statements: Type of auditor’s report issued Unmodified Internal control over financial reporting: Material weakness identified None noted Significant deficiency identified None noted Noncompliance material to financial statements noted None noted Federal Awards: Internal control over major programs: Material weakness identified None noted Significant deficiency identified None noted Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with Title 2 U.S. Code of Federal Regulations Part 200 No Major programs: Coronavirus Relief Fund CFDA #20.019 2020 CARES Act 5311 CFDA #20.509 Dollar threshold used to identify Type A from Type B programs:$750,000 Identified as low-risk auditee No Part II –Findings Related to Financial Statements Findings related to financial statements as required by Government Auditing Standards None noted Auditor-assigned reference number Not applicable Part III –Findings Related to Federal Awards Internal control findings None noted Compliance findings None noted Questioned costs None noted Auditor-assigned reference number Not applicable There were no findings for the fiscal year ended December 31, 2019. TOWN OF AVON, COLORADO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 2020 Federal Grantor / Pass Through Federal Federal Grantor / Program Or Cluster Title CFDA #Expenditures U.S. Department of the Treasury Passed Through Colorado Dept. of Local Affairs: Coronavirus Relief Fund 21.019 713,837$ Total U.S. Department of the Treasury 713,837 U.S. Department of Justice Bulletproof Vest Partnership Program 16.607 1,600$ Total U.S. Department of Justice 1,600 U.S. Department of Transportation Passed Through Colorado Department of Trasnportation: Formula Grants for Rural Areas Program 20.509 245,980 Formula Grants for Rural Areas Program - 2020 CARES Act 5311 Operating Award 21.509 400,490 NHTSA - Click it or Ticket 20.616 5,500 Total U.S. Department of Transportation 651,970 Total Expenditures of Federal Awards 1,367,407$ The accompanying notes are an integral part of this schedule. 125 THIS PAGE INTENTIONALLY LEFT BLANK 126 [970] 748-4055 swright@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Scott Wright, Assistant Town Manager; Paul Wisor, Town Attorney; Eric Heil, Town Manager RE: Use Tax on Construction Materials DATE: July 7, 2021 SUMMARY: This report provides an overview of a potential Use Tax, including draft Ballot Language and recommendations. Council approved the 2021 Department goals early in the year which included a Finance Department Goal to present legal and financial analysis of Use Tax. Finance Department, Goal #12 states, Present Legal and Financial Analysis of Use Tax: Staff will prepare an overview of sales and use tax as commonly used throughout Colorado, potential revenues, potential dedication of such revenues for designated purposes such as capital improvements or community housing, and present that information to the Finance Committee. The 2018 Town of Avon Community Housing Plan established a goal to secure additional local funds for housing and to seek opportunities for new funding sources. The Community Housing Plan states on P. 6 under Funding, A two-step process is envisioned to secure additional local funds for housing. The first step will be to review current revenue streams and determine if additional funds can be directed to housing efforts through the annual budgeting process. This review will begin at the end of 2018. Depending on the outcome of the first step, the second step will be to seek opportunities for new funding sources, which could include approaches such as increased linkage fees, regional collaboration, and/or support for a local ballot initiative. The purpose of this report is to introduce to Council a possible means for funding Community Housing projects through the assessment of a use tax on construction materials. This is submitted as a written report and no formal action by Council is requested at this time. If Council decides that this might be a favorable way to raise funds for this purpose it must be approved by the Town’s electorate in a TABOR election, since implementing a use tax is a change in tax policy and increases revenue. Critical dates pursuant to TABOR include the following: (1) August 10. Last regularly scheduled Town Council meeting to introduce first reading of an ordinance to refer ballot question and self-execute implementation of use tax upon approval. (2) August 24 Last regularly scheduled Town Council meeting in which to adopt a resolution certifying ballot content to the County Clerk and Recorder. (3) September 3. Last day to certify the ballot content to the County Clerk and Recorder. (4) November 2. Election day. BACKGROUND: In 2002 a 4% construction use tax was submitted to the Town of Avon electors by the Avon Town Council. The tax was to be "spent solely for transportation and recreation capital projects and Page 2 of 4 services and infrastructure related thereto." The ballot question failed to pass by a vote of 379 in favor and 573 against (See Attachment A). ANALYSIS: Use taxes are levied on the consumption of tangible personal property within a city or county for which no sales or use tax has been previously paid. A use tax differs from a sales tax in that the purchaser (as opposed to the retailer) is generally held responsible for paying the use tax. Use taxes are considered complimentary to a sales tax and are applied in the jurisdiction where the product or materials are used rather than where purchased. Use taxes are typically assessed at the same rate as the sales tax that would have been owed and generally the taxability of the goods or services is the same. The State of Colorado imposes both a sales tax and a use tax. The use tax is imposed as a complement to Colorado sales tax, and is meant to capture revenue on transactions that are not subject to a sales tax as well as transactions which are more efficient and effective to impose and collect the use tax rather than the sales tax. The use tax is imposed for the privilege of storing, using, or consuming tangible personal property in Colorado. In general, whenever a purchaser acquires tangible personal property without paying sales tax at the time of the sale, they must pay consumer use tax directly to the Department of Revenue. If an item is exempt from sales tax, it is generally exempt from use tax as well. The Colorado use tax rate is 2.9%, the same as the sales tax rate in Colorado, and use tax is calculated in the same manner as sales tax. There are generally three types of use taxes that may be imposed on purchasers: (1) A Consumer Use Tax; (2) A Motor Vehicle Use Tax; (3) A Construction Use Tax levied on building materials. Consumer Use Tax. The first type of use tax - a consumer use tax - is defined as a "companion" tax for purchases made where sales tax is not charged. In Colorado, this companion tax is called a consumer use tax. Typically, a consumer use tax is imposed on transactions that are subject to sales tax, but tax was not charged. Usually, this occurs when items are purchased out-of-state, ordered through the mail, over the Internet, or by phone from another state. It is imposed on the use, storage, or consumption of tangible personal property in the state. The use tax often applies when a company makes a purchase from an out- of-state seller that is not required to collect sales tax in the purchaser’s state. Consumer use taxes are imposed by state and local governments for two reasons — to prevent someone from evading a sales tax by buying goods or taxable services from a non-taxing state and shipping them into the state that imposes the sales tax. In addition, the use tax protects retailers located in the state or municipality because it removes the incentive for consumers to shop outside that locality in order to avoid paying the sales tax. On June 21, 2018, the United States Supreme Court ruled in a 5-4 decision in South Dakota v. Wayfair, Inc., et al, that states can generally require an out-of-state seller to collect and remit sales tax on sales to in-state consumers even if the seller has no physical presence in the consumer's state. Because of this decision, we do not consider future lost sales taxes from out-of-state retail sales to be material enough to consider a consumer use tax ballot question. We do not recommend Council consider a Consumer Use Tax. Motor Vehicle Use Tax. In general, motor vehicle sales are subject to all state and local sales taxes that apply within the jurisdiction where the sale occurred. However, in most jurisdictions, sales are exempt from Page 3 of 4 the local sales tax if the motor vehicle is registered outside of Town. If the vehicle sale is exempt as described above, the purchaser must pay applicable use tax imposed by the municipality or county in which the vehicle is registered. If there is no use tax imposed, then the only tax paid is at the State level. Any applicable use taxes must be paid to the county clerk prior to titling and registration. From a practical standpoint, jurisdictions that do not have a motor vehicle use tax are unlikely to have new and used automobile dealerships because a resident purchasing a vehicle within that jurisdiction would have to pay sales tax vs. purchasing the vehicle outside of the jurisdiction. Use taxes on motor vehicles can raise a substantial amount of tax. A Motor Vehicle Use Tax would be a new tax for Avon residents purchasing a vehicle. We do not recommend Council consider a Consumer Use Tax. Construction Materials Use Tax. The Town of Avon currently imposes a sales tax on building materials. The administrative burden of collection is high and not entirely effective because Avon must collect the sales tax from vendors of construction materials and not the contractors or property owners. Many of the construction materials are purchased outside of the Town. In the case of materials purchased outside of Town and brought into Town by the purchaser (owner, general contractor or sub-contractors), the Town has lost out on the sales tax for those items because it is paid at the location of the retailer. In the case of materials purchased outside of Town and then delivered by the retailer to the job site, sales would not be collected by the retailer and the purchaser should remit the sales tax to the Town. However, due to the “on-your-honor” methodology, the large number of contractors and companies involved, the amount of records involved, and determining who is ultimately responsible for the tax (the owner, general contractor or subs), this methodology is very inefficient. A construction use tax is a form of use tax levied on building materials. The use tax is collected at the time a building permit is issued. The use tax amount is determined by multiplying the use tax rate by the cost of the building materials using a predetermined formula. A common method is to determine that the cost of building materials to be fifty percent (50%) of the total valuation of the construction project. The builder then provides the building permit to the materials supplier to prove that use tax has already been paid, and then is exempt from paying a corresponding municipal sales tax in other locations. A large number of cities and counties in Colorado levy a use tax on building materials including Eagle, Gypsum, Vail, Steamboat Springs and Grand Junction. See the comparison tables in the presentation. The benefits of a use tax on construction materials include the following: (1) fairness in the imposition of the tax; (2) elimination of unfair competition using tax rates as a reason to shop outside of Avon; (3) easing of the administrative burden of collection; (4) nexus of construction to community housing needs; FINANCIAL CONSIDERATIONS: Based on the Town’s 10-year average of the total value of building construction of $32,772,355, a 4% use tax on construction materials would have generated an average of $655,447 per annum in revenue. It should be noted that because the Town (excluding The Village (at Avon)) has only a few remaining vacant parcels for large potential developments remaining, the level of use tax from the past ten years might not be an accurate representation of the potential use tax that might be realized in the future. Redevelopment of East Avon Town Center and other underdeveloped properties in the Town core may provide additional use tax revenues. Page 4 of 4 The timing of the remittance of a use tax versus what was actually collected in sales tax on construction materials makes it very difficult to compare fiscal years. However, an average of the past seven years indicates that the Town has actually collected an average of $399,446 per year with 2020 collections at $537,553 representing almost 6% of total sales tax collections. Village At Avon (Traer Creek Metro District). The Consolidated Amended and Restated Annexation and Development Agreement (“CARADA”) specifically contemplates that the Town may, at some point, impose a use tax. In the event a use tax is imposed, a corresponding “use tax credit” will automatically be applied to any transaction subject to the use tax. The CARADA also contemplates that Traer Creek may impose a building materials fee if the Town imposes a use tax. The CARADA is silent as to whether the building materials fee must be used for the same purposes as the use tax. The CARADA does provide the Town must coordinate with Traer Creek regarding the implementation of any use tax, so the Town will need to further explore the building materials fee with Traer Creek. SAMPLE BALLOT LANGUAGE: Sample ballot language is included with this Report which would dedicate 100% of the revenues of a Use Tax to the Community Housing Fund. The use of these funds is broadly written to encompass all potential investments and expenditures related to Community Housing. OPTIONS: As an option to the sample ballot language contained in Attachment B, Council may consider retaining a portion of the use tax in the General Fund to be used for any legal purpose as a way to offset the amount of sales tax on construction materials that will no longer be collected in that manner. As discussed above, that amount in 2020 equates to approximately 6% of gross sales tax revenues or a total of $537,553. Another option regarding the use tax on construction materials would include not specifically earmarking the funds and leave the appropriation of the funds up to the discretion of the Town Council. RECOMMENDATION: We recommend that Council provide direction regarding the possible adoption, either by resolution or by ordinance, of a construction materials use tax ballot question to be certified to the Eagle County Clerk and Recorder for inclusion in the November 2, 2021 general election. Direction should include addressing the options above. TOWN MANAGER’S RECOMMENDATION: I recommend that Council consider approving the ballot question as presented with 100% of the revenues to be dedicated to Community Housing. In my experience working with ballot questions for new taxes, voters will more likely support a new tax that is dedicated to a pressing community need. Presenting the Use Tax as a new tax to support Community Housing is simple and easy for the general public to understand and I expect would resonate with the community based on the current housing shortage. The Sales Tax on construction materials collected in 2020 amounts to 2.9% of the General Fund operating revenues. Considering the magnitude and scope of housing as well as the need to generate significant sums to leverage with regional partners and state and federal grant funds, Council should be striving for annual revenues to be dedicated or allocated towards Community Housing in the range of $1 million to $2 million. Thank you, Scott, Paul and Eric ATTACHMENTS: Attachment A - Ordinance No. 2002-18 Attachment B - Sample Use Tax Ballot Question TOWN OF AVON ORDINANCE NO. 02-18 SERIES OF 2002 AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows: a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX." b) 43.08.020. Taxable items. A new subpart D. is added to state as follows: D. Upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town." c) 43.08.030. Sales tax levy. i) The title of §3.08.030 is changed to state "Sales and use tax levy." ii) Section 3.08.030C is repealed and reenacted to state as follow: The retailer shall add the sales tax imposed hereto to the sale or charge of the item sold, showing such tax as a separate and distinct item, and, when added, such tax shall constitute a part of such price or charge, shall be a debt from the purchaser to the retailer until paid and shall be recoverable at law in the same manner as other debts." iii) A new subpart E. is added to state as follows: E. (1) A use tax of four percent is imposed upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town. 1 ATTACHMENT A 2)(a) Any person who shall build or improve any dwelling or other structure or improvement to realty within the town, including underground improvements, and who shall purchase the necessary construction materials needed therefor from any source inside or outside of the town, shall remit to the Finance Director prior to the issuance of any building permit for such improvement full payment of the use tax, to be calculated as provided herein. The full amount of the use tax shall be due and payable at the time that the applicable building permit is issued. The estimate of the cost of the construction materials shall be determined by the Town Building Official in the manner set forth below, and the amount of the tax shall be subject to adjustment if the actual cost of the construction materials needed for the improvement is either less than or greater than the estimate. Upon payment of the use tax, the Finance Director shall issue the taxpayer a receipt identifying the property that is the subject of the tax and the building permit number. b) For the purpose of calculating the amount of the use tax as provided for herein, the value of the construction materials in the improvement shall be estimated to be equal to fifty percent of the total value of the improvement as determined by the Building Official for building permit purposes. The use tax obligation shall be an amount equal to four percent of such estimated value of the construction materials. c) If it is determined by the Finance Director through audit or other means that the actual cost of the construction materials for the improvement is greater than the estimate on which the tax was based, and that additional tax is owing, then the Finance Director shall make a demand to the taxpayer for the additional use tax owed together with interest calculated pursuant to § 3.08.353; provided, in no case may the Finance Director make a claim for amounts due more than three years after a certificate of occupancy or final inspection approval has been issued by the town for the improvement. A taxpayer's failure to honor the Finance Director's claim for additional tax due, as set forth in this paragraph, shall constitute a violation of this chapter. 3) All use tax funds collected by the Town in accordance with the provisions of this chapter shall be appropriated and spent solely for transportation and recreation capital projects and services and infrastructure related thereto." d) & 3.08.320. Sales tax - Credit for sales or use taxes previously paid to another municipality. i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit for sales or use taxes previously paid to another municipality." ii) Section 3.08.320 is repealed and reenacted to state as follow: 2 ATTACHMENT A For transactions consummated on or after January 1, 1986, the town's sales tax shall not apply to the sale of tangible property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule municipality equal to or in excess of that provided for in Section 3.08.030. A credit shall be granted against the town's lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule municipality. The amount of the credit shall not exceed the town's sales or use tax imposed pursuant to Section 3.08.030." Section 2. Section 3.08.035 of the Avon Municipal Code is amended as follows: 3.08.035 Tax Credit. Notwithstanding any other provisions of this chapter, there shall be granted to each person owing 1) the sales tax on sales consummated within The Village (at Avon) or 2) the use tax on the purchase price paid or the acquisition costs of construction materials brought within the boundaries of the Town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property within The Village (at Avon) a temporary tax credit against collection of the tax equal to the amount of any retail sales or use fee paid by or on behalf of such person. The amount of the credit shall not exceed the amount of the tax. No such credit shall shall be granted subsequent to termination of the collection of the retail sales fees and use fees terminate pursuant to the Annexation and Development Agreement for The Village (at Avon). Neither the ability of the Town to grant the temporary tax credit nor the termination of the credit shall constitute a tax increase, the imposition of a new tax or a tax policy change." Section 3. Election and Effective Date. Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax increase provided in this ordinance to the qualified electors of the Town for approval at the regular Town election scheduled for November 5, 2002. If approved by a majority of the electors voting thereon, this ordinance shall become effective when the Town Clerk or other designated election official duly files the required certificate of election, or on January 1, 2003, whichever occurs last. Section 4. Ballot Title and Question. The ballot title and question submitted to the electors shall be as follows: ATTACHMENT A SHALL TOWN OF AVON TAXES BE INCREASED $1.6 MILLION ($1,600,000) ANNUALLY IN 2003, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY FOR TRANSPORTATION AND RECREATION CAPITAL PROJECTS AND SERVICES AND INFRASTRUCTURE RELATED THEREO, ALL IN ACCORDANCE WITH ORDINANCE NO. 02-18 ADOPTED BY THE TOWN COUNCIL; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? INTRODUCED, APPROVED ON FIRST READING, AND ORDERED PUBLISHED IN FULL AND POSTED, this 9th day of July, 2002, and a public hearing on this ordinance shall be held at the regular meeting of the Town Council of the Town of Avon, Colorado on the 27th day of August, 2002, at 5:30 p.m. in the Municipal Building of the Town of Avon, Colorado. TOWN OF AVON, COLORADO: ATT To Cl rk yor 4 ATTACHMENT A INTRODUCED, APPROVED ON SECOND READING, AND ORDERED PUBLISHED AND POSTED this 27th day of August, 2002. TOWN OF AVON, COLORADO: Jyor ATT oc- To Cl rk EARS APPROVED AS TO FORM: Town ttorney ATTACHMENT A STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 27TH DAY OF AUGUST 2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002: AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and may be inspected during regular business hours. Following this hearing, the Council may consider final passage of this Ordinance. This notice is given and posted by order of the Town Council of the Town of Avon, Colorado Dated this 23rd day of August 2002. TOWN OF AVON, COLORADO BY: P ! "lc/ Patty Yel envy Town Cie& POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON AUGUST 23, 2002: AVON MUNICIPAL BUILDING, MAIN LOBBY ALPINE BANK, MAIN LOBBY AVON RECREATION CENTER, MAIN LOBBY CITY MARKET, MAIN LOBBY ATTACHMENT A STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 13TH DAY OF AUGUST 2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002: AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and may be inspected during regular business hours. Following this hearing, the Council may consider final passage of this Ordinance. This notice is given and posted by order of the Town Council of the Town of Avon, Colorado Dated this 6`" day of August, 2002. TOWN OF AVON, COLORADO BY: 201 /~c Pa " cKenn Town Clerk POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON AUGUST 6, 2002: AVON MUNICIPAL BUILDING, MAIN LOBBY ALPINE BANK, MAIN LOBBY AVON RECREATION CENTER, MAIN LOBBY CITY MARKET, MAIN LOBBY ATTACHMENT A STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 23RD DAY OF JULY 2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002: Ordinance 02-18, Series of 2002 - An Ordinance Adding a Use Tax on Construction Materials A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and may be inspected during regular business hours. Following this hearing, the Council may consider final passage of this Ordinance. This notice is given and posted by order of the Town Council of the Town of Avon, Colorado Dated this 19th day of July, 2002. TOWN OF AVON, COLORADO BY: c Pay c envy Town erk POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON JULY 19,2002: AVON MUNICIPAL BUILDING, MAIN LOBBY ALPINE BANK, MAIN LOBBY AVON RECREATION CENTER, MAIN LOBBY CITY MARKET, MAIN LOBBY ATTACHMENT A ORDINANCE NO. 02-18 gad SERIES OF 2002 NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON,COLORADO: Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows: a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX." b) 43.08.020. Taxable items. A new subpart D. is added to state as follows: D. Upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town." c) 43.08.030. Sales tax levy. i) The title of §3.08.030 is changed to state "Sales and use tax levy." ii) Section 3.08.030C is repealed and reenacted to state as follow: The retailer shall add the sales tax imposed hereto to the sale or charge of the item sold, showing such tax as a separate and distinct item, and, when added, such tax shall constitute a part of such price or charge, shall be a debt from the purchaser to the retailer until paid, and shall be recoverable at law in the same manner as other debts." iii) A new subpart E. is added to state as follows: E. (1) A tax of four percent is imposed upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town. AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. 2) Any person who shall build or improve any dwelling or other structure or improvement to realty within the town, including underground ATTACHMENT A improvements, and who shall purchase the necessary construction materials needed therefore from any source inside or outside of the town, shall keep all invoices and statements regarding such materials from both the general and subcontractors, along with a summary sheet showing such purchases, and shall, on or before the tenth day of each succeeding month following the start. of construction, file a return with the Finance Director, to which he shall attach such invoices, statements and. summary for the construction materials purchased the previous month, and . shall thereupon pay to the Finance Director the full amount of the use tax due thereon for the preceding month or months. Any failure to preserve such statements and invoices, and to make such return and payment of such use tax, shall be deemed a violation of this chapter. The full amount of any use tax due and not paid for construction materials shall be a lien upon the real property benefited by such improvements, and the Finance Director is authorized to file a notice of such lien with the County Clerk and Recorder. 3)(a) Any person who shall build or improve any dwelling or other structure or improvement to realty within the town, including underground improvements, and who shall purchase the necessary construction materials needed therefore from any source inside or outside of the town, may, at such person's option, remit a deposit to the Finance Director prior to the issuance of any building permit for such improvement, such deposit to insure and indemnify the town for the amount of use tax due. The amount of the deposit shall be based upon an estimate of the use tax to be payable on the construction materials used for the improvement. Such estimate shall be made, and such deposit shall be paid, at the time that the applicable building permit is issued. The estimate of the cost of the construction materials shall be determined by the Town Building Official, and the estimate shall be subject to adjustment if the actual cost of the construction materials needed for the improvement is either. less than or greater than such estimate. If the taxpayer elects the deposit procedure set forth in this subsection (3), then the provisions of subsection (2) hereof shall be waived. Upon payment of the deposit as set forth herein, the Finance Director shall issue the taxpayer a receipt identifying the property that is the subject of the deposit and the building permit number. b) For the purpose of calculating the amount of the deposit as provided for herein, the value of the construction materials in the improvement shall be estimated to be equal to fifty percent of the total value of the improvement as determined by the Building Official for building permit purposes. The deposit shall be in the amount of four percent of such estimated value of the construction materials. c) If it is determined by the Finance Director that the actual cost of the construction materials for the improvement is.greater than the estimate therefore, and that the amount of the use tax deposit is not sufficient to 2 ATTACHMENT A provide for full payment of the use tax, then the Finance Director shall make a demand to the. taxpayer for the additional use tax owed; provided, in no case may the Finance Director make a claim for amounts due over and above the amount of the deposit more than three years after a certificate of occupancy or final inspection approval has been issued by the town for the improvement. A taxpayer's failure to honor the Finance Director's claim for additional tax due, as set forth in this paragraph, shall constitute a violation of this chapter. d) If it is determined by the Finance Director that the deposit is sufficient to provide for full payment of the use tax, then the deposit shall be used to pay the amount of the use tax due. If the Finance Director determines that the amount of the deposit is in excess of the use tax owned, then he shall return any excess amount of the deposit to the person who made the deposit within thirty days of such determination. 4) If a taxpayer purchases construction materials subject to the use tax imposed herein from a vendor possessing a valid Town of Avon retail sales tax license, and if he pays the town's sales tax at the time of purchase of such construction materials, then he shall be entitled to a credit, to the extent of such sales tax paid, to be applied to the amount of use tax owed. 5) Construction materials subjected at the time of purchase to a sales or use tax lawfully imposed on the purchaser by another statutory or home rule municipality in the State of Colorado, if taxed at a rate equal to or greater than the four percent rate provided for herein, are exempted from the Town of Avon's use tax. If the rate of the sales or use tax imposed by such other Colorado statutory or home rule municipality is less than four percent, the difference between the tax due under this chapter and the tan paid by the purchaser shall be due to the Town of Avon, and shall be remitted to the Finance Director. 6) All use tax funds collected by the Town in accordance with the provisions of this chapter shall be appropriated and spent solely for transportation and recreation capital projects and services." d) 4 3.08.320. Sales tax - Credit for sales or use taxes previously paid to another municipality. i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit for sales or use taxes previously paid to another municipality." ii) Section 3.08.320 is repealed and reenacted to state as follow: For transactions consummated on or after January 1, 1986, the town's sales tax shall not apply to the sale of tangible property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the 3 ATTACHMENT A purchaser or user by another statutory or home rule municipality equal to or in excess of that provided for in Section 3.08.030. A credit shall be granted against the town's lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule municipality. The amount of the credit shall not exceed the town's sales or use tax imposed pursuant to Section 3.08.030." Section 2. Election and Effective Date. Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax increase provided in this ordinance to the qualified electors of the Town for approval at the regular Town election scheduled for November 5, 2002. If approved by a majority of the electors voting thereon, this ordinance shall become effective when the Town Clerk or other designated election official duly files the required certificate of election, or on January 1, 2003, whichever occurs last. Section 3. Ballot Title and Question. The ballot title and question submitted to the electors shall be as follows: SHALL TOWN OF AVON TAXES BE INCREASED $1.6 MILLION ($1,600,000) ANNUALLY IN 2003, AND. BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY FOR TRANSPORTATION AND RECREATION CAPITAL PROJECTS AND SERVICES, ALL IN ACCORDANCE WITH ORDINANCE NO. 01-08 ADOPTED BY THE TOWN COUNCIL; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? YES 4 ATTACHMENT A NO Section 4. Repealer. If the electors approve this ordinance, then on the effective date specified above, all ordinances or parts of ordinances in conflict herewith are hereby repealed, but only to the extent of such inconsistency. Section 5. Severability. The provisions of this ordinance. are severable, and invalidity of any part shall not affect the validity or effectiveness of the rest of this ordinance. INTRODUCED, APPROVED ON FIRST READING, AND ORDERED PUBLISHED IN FULL AND POSTED, this day of July, 2002, and a public hearing on this ordinance shallCaie held at t e regular meeting of the Town Council of the Town of Avon, Colorado on the a3 day of , 2002, at 5:30 p.m. in the Municipal Building of the Town of Avon, Colorado,,,- ATT 7,Cp`p Town lerk TOWN OF AVON, COLORADO: Wor 5 ATTACHMENT A INTRODUCED, APPROVED ON S COND READING, AND ORDERED PUBLISHED AND POSTED this-'1 %ay of )t,,L-t , 2002. Q-T~WN OF AVON, COLORADO: Wor ATT T: o C~ To Cle APPROVED AS TO FORM: Town Attorney 6 ATTACHMENT A STATE OF COLORADO ) COUNTY OF EAGLE ) SS TOWN OF AVON ) NOTICE IS HEREBY GIVEN OF A PUBLIC HEARING BEFORE THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO AT 5:30 P.M. ON THE 23R) DAY OF JULY 2002, AT THE TOWN OF AVON MUNICIPAL BUILDING FOR THE PURPOSE OF CONSIDERING THE ADOPTION OF ORDINANCE NO. 02-18, SERIES OF 2002: Ordinance 02-18, Series of 2002 - An Ordinance Adding a Use Tax on Construction Materials A copy of said Ordinance is attached hereto, and is also on file at the office of the Town Clerk, and may be inspected during regular business hours. Following this hearing, the Council may consider final passage of this Ordinance. This notice is given and posted by order of the Town Council of the Town of Avon, Colorado Dated this 19th day o 0 F TOWN OF AVON, COLORADO SEA L LBY: Pa Mc envy LOOA®® To k POSTED AT THE FOLLOWING PUBLIC PLACES WITHIN THE TOWN OF AVON ON JULY 19, 2002: AVON MUNICIPAL BUILDING, MAIN LOBBY ALPINE BANK, MAIN LOBBY AVON RECREATION CENTER, MAIN LOBBY CITY MARKET, MAIN LOBBY ATTACHMENT A Memo To: Honorable Mayor and Town Council Thru: Bill Efting, Town Manager From: Scott Wright, Finance Director Date: August 9, 2002 Re: Use Tax Ordinance Summary: On July 9, Council passed on 1st reading a use tax ordinance that levied a 4% use tax on the use, storage, or consumption of building materials within the Town of Avon. Subsequent to the 1st reading, there have been several reviews of the various administrative and collection provisions of the ordinance that were prompted by the Town's Annexation and Development Agreement with the Village at (Avon) entities. As a result of these reviews, there are changes to the ordinance for 2nd reading as summarized below: Section 3.08.030 E. (2) of the original ordinance regarding collection of the use tax has been changed to reflect that only projects required to have a building permit would be required to pay a use tax. This change eliminates the reporting and tax burden on individuals with small home improvement projects that don't require permits and eliminates any consumer use tax issues from the ordinance. Sections 3.08.030 E. (2)(a), (b), and (c) of the original ordinance regarding payment of the tax at the time a building permit is issued have been changed to reflect that the full payment of the tax is made, rather than a deposit. This change was necessary to remain consistent with the concept that the use tax is levied at the time a building permit is issued. Sections 3.08.030 E. (4) and (5) have been eliminated as duplicative with existing sections of the existing sales tax code and unnecessary due to the changes above. Section 3.08.030 E. (3) has been changed to add language allowing the use tax funds to be used for infrastructure related to transportation and recreation. Section 3.08.035 has been added to grant a credit against the use tax fee collected by the Village at (Avon) for permitted projects occurring within the Village. Page 1 ATTACHMENT A Town Manager Comments: Attachments: Ordinance No. 02-18 - Black Line Version 0 Page 2 ATTACHMENT A ORDINANCE NO. 02-18 SERIES OF 2002 AN ORDINANCE ADDING A USE TAX ON CONSTRUCTION MATERIALS. NOW, THH FORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON,COLORADO: Section 1. Chapter 3.08 of the Avon Municipal Code is amended as follows: a) Title. The title of chapter 3.08 is amended to state "SALES AND USE TAX." b) 43.08.020. Taxable items. A new subpart D. is added to state as follows: D. Upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town." c) 43.08.030. Sales tax lees. i) The title of §3.08.030 is changed to state "Sales and use tax levy." ii) Section 3.08.030C is repealed and reenacted to state as follow: The retailer shall add the sales tax imposed hereto to the sale or charge of the item sold, showing such tax as a separate and distinct item, and, when added, such tax shall constitute a part of such price or charge, shall be a debt from the purchaser to the retailer until paid and shall be recoverable at law in the same manner as other debts." iii) A new subpart E. is added to state as follows: E. (1) A use tax of four percent is imposed upon the purchase price paid for or the acquisition costs of construction materials brought within the boundaries of the town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property in the town. ATTACHMENT A h l l k R inveiees and sta4ements e a di s h at i l ft b th a7s th eep-a l drgrnguemerasemeegeneraan d shall 7 anf trofcr t.itu°t;°-- f with t 1;~h t 11hvrvracrcrGTrOrrrnceTiirmiErrcGviceE6r~e F~C i e nurr umhased 7 the m4h an d shall the e e a th Fi eprupnpyaenanse th A f il t e h A M 1a r t d k i d t kmens.ny a ure e pr eserve Su nen s h ll b an we d d ses, an i l ti e ma e f thi h t Th f ll m t ef a us afs tax due an e eeme a d net aid v e a f en e s t fieapen i l e u a eun h AIR b A li ny n u n e the real r p o ert be er ee n fit d ns me en b hmmer-a s s e -e d the Finnt" pe ance Dife p eter_ is aut-he p y r-ize to file e e ti° y sue. f lien with t 7 he Geunty Cler-k and Reeer-der-. ee 2)(a) Any person who shall build or improve any dwelling or other structure or improvement to realty within the town, including underground improvements, and who shall purchase the necessary construction materials needed therefore from any source inside or outside of the town, may, a4 sueh p , shall remit a depesit to the Finance Director prior to the issuance of any building permit for such improvement full payment of the use tax, to be calculated as provided herein , the tew f - the ° nt of use tax a--° The full amount of the depesit use tax shall be due and navable base' ueea an estimate of the use tam to be ~ paid, be made, and sueh depesit shall be at the time that the applicable building permit is issued. The estimate of the cost of the construction materials shall be determined by the Town Building Official in the manner set forth below, and the °e amount of the tax shall be subject to adjustment if the actual cost of the construction materials needed for the improvement is either less than or greater than seeh the estimate. if the taxpa~,er- eleets depesit pr-eeedufe set feAh in this s-74-4b- Se e t i An (3), then the pmvisiefls 0 subseetien (2) her-eef shall be waived-. Upon payment of the use tax depesit-as t f fth h, the Finance Director shall issue the taxpayer a receipt identifying the property that is the subject of the depesit tax and the building permit number. b) For the purpose of calculating the amount of the depesit use tax as provided for herein, the value of the construction materials in the improvement shall be estimated to be equal to fifty percent of the total value of the improvement as determined by the Building Official for building permit purposes. The depesit use tax obligation shall berme an amount of equal to four percent of such estimated value of the construction materials. 2 ATTACHMENT A t c) If it is determined by the Finance Director through audit or other means that the actual cost of the construction materials for the improvement is greater than the estimate on which the tax was based tie, and that additional tax is owing then nt of the use tax depe,it ; net suf- ei°nt t„ P=ovide f r- full payment of the • ° to*, then the Finance Director shall make a demand to the taxpayer for the additional use tax owed together with interest calculated pursuant to & 3.08.353; provided, in no case may the Finance Director make a claim for amounts due over and above the amount of the deposit more than three years after a certificate of occupancy or final inspection approval has been issued by the town for the improvement. A taxpayer's failure to honor the Finance Director's claim for additional tax due, as set forth in this paragraph, shall constitute a violation of this chapter. d) if it is determined b the Fi Di t A .th t th dyeereeer ns.Ffinient to i tde file ot~'full ao th a epoe 1.1°nit ..1. 11thri:r-ciiczacy use en used -te the-amount ef the-use-ta if th Fide e Di t d tpyexunanee that the n nt ofthe .7e se tnvesit is in xeess ofth r-es er e er es d th 1.h llpaeueeesa itl,ir,_t iAy days ofn..nh deten: inn ien nTftn.,4 1,asu~e titcS t t ttbilthr..i d herein ff-eIsn ri n ve d e e max~cruccrvrrzircc er- n °l s u j ,Tccc-er a c cv m--cccxeuse fAn lidTtilvr eta d-if hhe n th va t t ee o esveresaa ti f h chtthfxense~r pays oi~ne s aax e-me-pttm ase o su eenstmetien materSAn[GI ls, then j.,he shall be entitled te-a er-edit, to-LYYl7 extente su.eh nnl°n tn„ p i.af t o ben pl ied to theamount o f use tnv e e straetien m5) G-bjet alateri t th ti f t tax-lawfWl im osed as .a en-the umhse e p uff asmee1~11V 11./Ml Vll{4V b et °t te eV 7,V VI-JGoasales 1hyp litmuniei in the St ap ifate ,.f'!''eie -ad r y--an s a u 4ttd l eme t t thpy er-eeet ratethefetff- d ro idedfe h r-a e equaaxea i t d f o e g an fthTp ven's use tax if t p v r-ere he ate tl l n, are exemp e r vtn om e own e 7 b h t hYY Geier-ado statutor e r e-sae rhe l es er ase c~a l th y efeaeeT f iy differ-enee betw t me-Pa tere na°,.h t d ess an thi h t d th euf eext-,-t e id b heen urehasealll be " e ai ue e-te the Te s e ap er- an e f A d h ll tar, pa y t e tt d t thp 1;in ° Di, °t,. o an s a ra e o e 3) All use tax funds collected by the Town in accordance with the provisions of this chapter shall be appropriated and spent solely for transportation and recreation capital projects and services and infrastructure related thereto." d) § 3.08.320. Sales tax - Credit for sales or use taxes previously paid to another municipality. i) The title of § 3.08.320 is changed to state "Sales and use tax - Credit for sales or use taxes previously paid to another municipality." 3 ATTACHMENT A ii) Section 3.08.320 is repealed and reenacted to state as follow: For transactions consummated on or after January 1, 1986, the town's sales tax shall not apply to the sale of tangible property at retail or the furnishing of services if the transaction was previously subjected to a sales or use tax lawfully imposed on the purchaser or user by another statutory or home rule municipality equal to or in excess of that provided for in Section 3.08.030. A credit shall be granted against the town's lawfully imposed local sales or use tax previously paid by the purchaser or user to the previous statutory or home rule municipality. The amount of the credit shall not exceed the town's sales or use tax imposed pursuant to Section 3.08.030." Section 2. Section 3.08.035 of the Avon Municipal Code is amended as follows: 3.08.035 Tax Credit. Notwithstanding any other provisions of this chapter, there shall be granted to each person owing 1) the sales tax on sales consummated within The Village (at Avon) or 2) the use tax on the purchase price paid or the acquisition costs of construction materials brought within the boundaries of the Town for the purpose of being used to build, construct, reconstruct, alter, expand, modify or improve any building, dwelling or other structure or improvement to real property within The Village (at Avon) a temporary tax credit against collection of the tax equal to the amount of any retail sales or use fee paid by or on behalf of such person. The amount of the credit shall not exceed the amount of the tax. No such credit shall shall be granted subsequent to termination of the collection of the retail sales fees and use fees terminate pursuant to the Annexation and Development Agreement for. The Village (at Avon). Neither the ability of the Town to grant the temporary tax credit nor the termination of the credit shall constitute a tax increase, the imposition of a new tax or a tax policy change_" . 4 ATTACHMENT A Section 2 3. Election and Effective Date. Under Article X, Section 20 of the Colorado Constitution, the Council refers the tax increase provided in this ordinance to the qualified electors of the Town for approval at the regular Town election scheduled for November 5, 2002. If approved by a majority of the electors voting thereon, this ordinance shall become effective when the Town Clerk or other designated election official duly files the required certificate of election, or on January 1, 2003, whichever occurs last. Section -3 4. Ballot Title and Question. The ballot title and question submitted to the electors shall be as follows: SHALL TOWN OF AVON TAXES BE INCREASED $1.6 MILLION ($1,600,000) ANNUALLY IN 2003, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE. TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY FOR TRANSPORTATION AND RECREATION CAPITAL PROJECTS AND SERVICES AND INFRASTRUCTURE RELATED THEREO, ALL IN ACCORDANCE WITH ORDINANCE NO. 01 08 02-18 ADOPTED BY THE TOWN COUNCIL; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE .APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? 5 ATTACHMENT A if the-eleeter-s fie-this -ewee, then en the-effies4ive date spesified abeve, all er,dinamees or- aAs of ` r-di anew in ` enfl et herewith are hereby eale a but enAy to the °40..4 The provisions of tMs " -difial}se-ar~aei bleu and invalidity of an pap shall not a ff `.t thee INTRODUCED, APPROVED ON FIRST READING, AND ORDERED PUBLISHED IN FULL AND POSTED, this 9th day of July, 2002, and a public hearing on this ordinance shall be held at the regular meeting of the Town Council of the Town of Avon, Colorado on the 23rd day of July, 2002, at 5:30 p.m. in the Municipal Building of the Town of Avon, Colorado. TOWN OF AVON, COLORADO: Mayor ATTEST: Town Clerk 6 ATTACHMENT A INTRODUCED, APPROVED ON SECOND READING, AND ORDERED PUBLISHED AND POSTED this _ day of , 2002. TOWN OF AVON, COLORADO: Mayor ATTEST: Town Clerk APPROVED AS TO FORM: Town Attorney 7 ATTACHMENT A SAMPLE USE TAX BALLOT QUESTION SHALL TOWN OF AVON TAXES BE INCREASED $____ MILLION ($____________) ANNUALLY IN 2022, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE IMPOSITION OF A FOUR PERCENT (4%) USE TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS, SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY FOR THE PURPOSE OF FUNDING COMMUNITY HOUSING, INCLUDING THE ACQUISITION OF LAND FOR HOUSING, CONSTRUCTION OF HOUSING, EXTENSION OF PUBLIC INFRASTRUCTURE TO SERVE HOUSING DEVELOPMENT, PURCHASE OF DEED RESTRICTIONS, DOWNPAYMENT ASSISTANCE PROGRAMS, AND PARTNERSHIP WITH PUBLIC AND PRIVATE ENTITIES TO DEVELOP COMMUNITY HOUSING, IN ACCORDANCE WITH SUCH TERMS, CONDITIONS AND POLICIES AS MAY BE ADOPTED BY THE AVON TOWN COUNCIL, ALL IN ACCORDANCE WITH ORDINANCE NO. 21-____ ADOPTED BY THE TOWN COUNCIL; AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW. ATTACHMENT B Use Tax Presentation July 13, 2021 Purpose of Report Community Housing Plan Goals Seek Opportunities for New Funding Sources Support for Local Ballot Initiatives 2021 Department Goal Present Legal and Financial Analysis of Use Tax Use Tax Presentation | July 13, 2021 Background PREVIOUS INITIATIVES ●In 2002 a 4% Construction Use Tax Submitted to TOA Voters ●Ballot Language Earmarked the Tax to be “spent solely for transportation and recreation capital projects and services and infrastructure related thereto” ●Question Failed To Pass with 379 In Favor and 573 Against. Use Tax Presentation | July 13, 2021 Analysis Three Types of Use Tax Consumer Use Tax Motor Vehicle Use Tax Construction Materials Use Tax Consumer Use Tax Companion Tax State of Colorado Best Example South Dakota v. Wayfair Supreme Court Decision Makes this Tax Less Effective Locally Not Recommended by Staff for Consideration Use Tax Presentation | July 13, 2021 Analysis Con’t MOTOR VEHICLE USE TAX •Use Tax Would Apply to Vehicles Purchased Out-of-Town But Registered in Avon •No Tax If Vehicle Registered Outside of Town •Tax Must Be Paid Prior to Titling and Registration •Jurisdictions Without a Use Tax Unlikely to Have Automotive Dealerships •Can Raise a Substantial Amount of Revenue •Would Be a New Tax for Avon Residents Purchasing a Vehicle •Not Recommended by Staff for Consideration Use Tax Presentation | July 13, 2021 Motor Vehicle Use Taxes The following table is based on a CML list serv survey that was taken. Motor Motor Vehicles Vehicle Municipal Use Tax Use Tax Imputed Sales Jurisdiction Population Revenue Rate Taxable Sales Per Person Town of Cedaredge 2,300 $ 95,292 2.00%$ 4,764,600 $ 2,071.57 City of Castle Pines 11,000 899,638 2.75%32,714,109 2,974.01 City of Commerce City 61,000 7,087,921 4.50%157,509,356 2,582.12 Town of Estes Park 6,300 317,941 2.00%15,897,050 2,523.34 City of Cherry Hills Village 6,641 1,061,673 3.00%35,389,100 5,328.88 City of Golden 22,015 1,116,029 3.00%37,200,967 1,689.80 City of Aurora 386,502 21,481,130 3.75%572,830,133 1,482.09 City of Manitou Springs 5,346 329,619 3.80%8,674,184 1,622.56 Town of Carbondale 6,900 534,613 3.50%15,274,657 2,213.72 City of Littleton 48,140 2,491,696 3.00%83,056,533 1,725.31 City of Centennial 110,000 5,309,401 2.50%212,376,040 1,930.69 City of Lafayette 29,587 2,171,793 3.50%62,051,229 2,097.25 Average of Respondees 3.11%$ 2,353.44 Use Tax Presentation | July 13, 2021 Motor Vehicle Use Taxes •Projected Revenues Based on the previous table and Avon’s approximate permanent population of 6,500, each 1% motor vehicle use tax could generate approximately $152,945. Use Tax Presentation | July 13, 2021 Construction Use Tax •Use Tax Would Be Collected at Time of Building Permit •Tax Based on Predetermined Formula. Common Method to Use 50% of Construction Value •Builder Exempt from Paying Further Sales Taxes on Materials Related to the Permit •Avon is the Only Jurisdiction in Eagle County Without a Construction Use Tax Use Tax Presentation | July 13, 2021 Sales Tax | Use Tax percentages in Eagle County Use Tax Presentation | July 13, 2021 4% | 0% This map shows “% Sales Tax | % Use Tax” for each Town. Town of Avon is the odd town in Eagle County with no use tax. Eagle 4% | 4% Minturn 4% | 4% Vail 4% | 4% Red Cliff 3% | 3% Gypsum 4% | 3% Sales Tax | Use Tax percentages Use Tax Presentation | July 13, 2021 Town Sales Tax (city) Use Tax Crested Butte 4.00% 4.50%1/4.00%2 Steamboat Springs 4.50% 4.50%12 Rifle 4.25% 4.25%12 Eagle 4.00% 4.00%1 Fraser 4.00% 4.00%12 Grand Lake 4.00% 4.00%12 Grandby 4.00% 4.00%12 Minturn 4.00% 4.00%1 Vail 4.00% 4.00%1 Parachute 3.75% 3.75%1 Glenwood Springs 3.70% 3.70%12 Carbondale 3.50% 3.50%12 Grand Junction 2.75% 3.25%12 Fruita 3.00% 3.00%12 Gypsum 4.00% 3.00%1 Mount Crested Butte 5.00% 3.00%1 Red Cliff 3.00% 3.00%1 Silt 3.00% 3.00%12 Alma 3.00% 2.00%2 De Beque 2.00% 2.00%1 Hayden 4.00% 2.00%1 New Castle 3.50% 2.00%1 Yampa 2.00% 2.00%12 Aspen 2.40% 0.00% Avon 4.00% 0.00% Blue River 2.50% 0.00% 1 Construction Materials 2 Motor Vehicles / Trailers Breckenridge 2.50% 0.00% Buena Vista 2.50% 0.00% Collbran 2.00% 0.00% Como 1.00% 0.00% Dillon 2.50% 0.00% Fairplay 4.00% 0.00% Frisco 2.00% 0.00% Gunnison 1.00% 0.00% Hartsel 1.00% 0.00% Hot Sulphur Springs 4.00% 0.00% Keystone 0.75% 0.00% Kremmling 4.00% 0.00% Marble 2.00% 0.00% Montezuma 2.00% 0.00% Oak Creek 3.00% 0.00% Palisade 2.00% 0.00% Pitkin 3.00% 0.00% Poncha Springs 2.00% 0.00% Salida 3.00% 0.00% Silverthorne 2.00% 0.00% Snowmass Village 3.50% 0.00% Winter Park 5.00% 0.00% Construction Use Tax •Advantages of a Construction Use Tax •Helps Achieve Consistency in Imposition of Tax •Eliminates Unfair Competition Using Tax Rates •Eases Administrative Burden of Collection •Nexus of Construction to Community Housing Needs Use Tax Presentation | July 13, 2021 Construction Use Tax •Use Tax Statistics $32,772,355 –Ten-year Average of Total Building Construction Value Based on Above, 4% Use Tax Would Generate $610,603 Per Annum •Sales Tax Statistics $399,446 -Seven-year Average of Actual Sales Taxes Collected $537,553 Actual 2020 Sales Tax Collections, or 5.8% of Total Use Tax Presentation | July 13, 2021 Traer Creek •Imposition of Use Tax on building materials shall be automatically applied to any sale within The Village (at Avon) through increase in the Credit PIF. •The Credit PIF increase shall be proportionate to the Use Tax. •Purchases made within The Village (at Avon) shall receive a tax credit against the Town’s Use Tax in the amount equal to an any increase in the Credit PIF resulting from an imposition of the Use Tax. •The Town may amend its Municipal Code to reflect the automatic tax credit for use tax, but such an amendment shall not be required to implement the Tax Credit. •Prior to adopting any such use tax, the Town shall coordinate with Traer Creek regarding the implementation the Use Tax/Credit PIF/Tax Credit. •Increase in the Credit PIF shall not be taxable by the Town. Use Tax Presentation | July 13, 2021 Traer Creek –Section 6.4(v) pf CARDA Sample Ballot Question SAMPLE BALLOT QUESTION SHALL TOWN OF AVON TAXES BE INCREASED $____MILLION ($____________)ANNUALLY IN 2022,AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER,BY THE IMPOSITION OF A FOUR PERCENT (4%)USE TAX ON THE PRIVILEGE OF USING OR CONSUMING IN THE TOWN ANY CONSTRUCTION MATERIALS,SUCH USE TAX REVENUES TO BE APPROPRIATED AND SPENT SOLELY FOR THE PURPOSE OF FUNDING COMMUNITY HOUSING, INCLUDING THE ACQUISITION OF LAND FOR HOUSING, CONSTRUCTION OF HOUSING,EXTENSION OF PUBLIC INFRASTRUCTURE TO SERVE HOUSING DEVELOPMENT,PURCHASE OF DEED RESTRICTIONS,DOWNPAYMENT ASSISTANCE PROGRAMS,AND PARTNERSHIP WITH PUBLIC AND PRIVATE ENTITIES TO DEVELOP COMMUNITY HOUSING,IN ACCORDANCE WITH SUCH TERMS,CONDITIONS AND POLICIES AS MAY BE ADOPTED BY THE AVON TOWN COUNCIL,ALL IN ACCORDANCE WITH ORDINANCE NO. 21-____ADOPTED BY THE TOWN COUNCIL;AND SHALL THE REVENUES COLLECTED FROM SUCH TAX AND ANY EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED AND SPENT AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO THE LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X,SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW. Use Tax Presentation | July 13, 2021 Ballot Question Timeline •Requires voter authorization under TABOR. •Fair Campaign Practices Act limits Town’s ability promote ballot question after ballot title is fixed Use Tax Presentation | July 13, 2021 Aug 10 Aug 24 Nov 2Sept 3 Election DayLast day for Town to certify the ballot content Last regularly scheduled Council Meeting to adopt Resolution Last day to introduce Ordinance to refer ballot question and self-execute implementation Thank You Use Tax Presentation | July 13, 2021 Scott Wright Asst Town Manager and Finance Director swright@avon.org AVON REGULAR MEETING MINUTES TUESDAY JUNE 22, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM 1. CALL TO ORDER AND ROLL CALL Video Start Time: 00:00:01 The meeting was hosted in a Hybrid format, in person at Avon Town Hall and using Zoom.us. Mayor Smith Hymes called the Liquor Authority meeting to order at 5:00 p.m. and the Council regular meeting to order at 5:07 p.m. A roll call was taken, and Council members present in person were Lindsay Hardy, Scott Prince, Amy Phillips, Chico Thuon, and RJ Andrade. Councilor Tamra Underwood joined virtually via Zoom. Also present were Planning Director Matt Pielsticker, Chief of Police Greg Daily, Town Manager Eric Heil, Town Attorney Paul Wisor, General Government Manager Ineke de Jong, and Town Clerk Brenda Torres. EXECUTIVE SESSION FOR THE PURPOSE OF DISCUSSING SPECIALIZED DETAILS OF SECURITY ARRANGEMENTS RELATED TO TOWN HALL PURSUANT TO SECTION 24-6-402(3)(A)(IV), C.R.S. A roll call was taken for Executive Session, and Council members present in person were Mayor Smith Hymes, Lindsay Hardy, and RJ Andrade. Councilor Tamra Underwood joined virtually via Zoom, and Councilors Scott Prince, Chico Thuon, and Amy Phillips were absent. The time was 4:01 p.m. Councilor Prince joined the Executive Session at 4:03 p.m. Councilor Andrade moved to move to the Executive Session for the Purpose of discussing specialized details of security arrangements related to Town Hall pursuant to Section 24-6-402(3)(a)(IV), C.R.S. Councilor Hardy seconded the motion and the motion passed with a vote of 4 to 0. Councilor Underwood could not hear the roll call motion and did not vote. Councilor Thuon joined the Executive Session at 4:04 p.m. Mayor Pro Tem Phillips joined the Executive Session at 4:12 p.m. The Executive Session started at 4:04 p.m. The Executive Session ended at 4:50 p.m. 2. APPROVAL OF AGENDA Video Start Time: 00:07:15 Councilor Prince moved to approve the agenda as presented. Councilor Hardy seconded the motion and the motion passed unanimously. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Video Start Time: 00:08:22 No conflicts of interest were disclosed. 4. PUBLIC COMMENT Video Start Time: 00:08:35 Mayor Smith Hymes explained to the public that comments in person will be taken first, then those via Zoom. AVON REGULAR MEETING MINUTES TUESDAY JUNE 22, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Kathleen Walsh, Eagle Bend Drive resident, commented. She asked about the Avon Dark Sky Building initiative and particularly the Traer Creek Development and the outside lighting on that building and if it can be looked at as it is a lot of light. She mentioned it is bright over in that area and the building lights are on 24/7 in an unoccupied building. Krista Keiser, Eagle-Vail resident, commented. She said she sent an appreciation email to Council about removing the Pride Flags and that she got a polite response, but her friend did not. She quoted appropriate appointed official behaviors in Avon Code and the email her friend had sent. Andrew Keiser, Eagle-Vail resident, followed up Krista Keiser’s comment by reading out loud the email response from Mayor Pro Tem Phillips sent on Sunday to Heather Bergquist regarding the Pride Flags. Madison Partridge, part of the organizing committee of Pride in the Park, thanked Council in name of the LGBQ Community, and expressed her sincere gratitude for allowing the Pride Flag to be flown earlier this week. She expressed how it saves lives through feeling accepted and she hopes that Council's inboxes have been filled with love and gratitude emails from the attendees. She cannot stress enough how this has made impact on youth, families and individuals in the community and she hopes that flying the flag continues next year to promote inclusion. Jordan Lyles, Avon resident, was also very thankful to Council for saving lives through their support, specially to Mayor Pro Tem Phillips and Councilor Hardy. He said kids might not see support from their parents, but they saw it from this Council. Mayor Smith Hymes expressed that Council received an overwhelming number of emails from the community in response to this issue and said Council will craft a response to be sent out by email tomorrow to everyone that sent a comment. No virtual comments were made. 5. BUSINESS ITEMS 5.1. AVON POLICE DEPARTMENT ANNUAL PRESENTATION (POLICE CHIEF GREG DALY) Video Start Time: 00:21:20 Chief of Police Greg Daly presented the highlights of the annual Police Department update, including the department’s overview, statistics, community outreach, and accreditations. He thanked Council for approving their proposed 2020 budget, making it possible for them to keep up with technology gadgets and trainings. Council asked a few questions and thanked Chief Daly for the great information included in the update report and for protecting the community. 5.2. SUPPORT LETTER FOR SHRED ACT (TOWN MANAGER ERIC HEIL) Video Start Time: 00:54:19 Town Manager Eric Heil introduced the topic and mentioned that this letter is in support of the SHRED Act to keep ski area permit fees local, support winter recreation and address broad recreation needs . AVON REGULAR MEETING MINUTES TUESDAY JUNE 22, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Mayor Smith Hymes asked for public comments and no public comments were made. Councilor Thuon moved to approve the Letter of Support for the SHRED Act . Councilor Hardy seconded th e motion and the motion passed unanimously. 5.3. PRESENTATION : RECREATION UPDATE (INTERIM RECREATION DIRECTOR MICHAEL LABAGH) Video Start Time: 00:56:43 Interim Recreation Director Michael Labagh presented a Rec Center Update and took Council through the highlights of the PPT presentation as included in the Council packet , including operations, programs, C OVID-19 regulations, park improvements and personnel analysis . He expressed that all reservations have been phased out, although it is still possible to reserve lap lanes, and that a big percent age of staff that was laid off due to the pandemic has been rehired in the past couple of months . He and Town Manager Eric Heil answered questions about the process to potentially raise minimum wages for lifeguards. Councilor Thuon asked to check the safe ty of a rope next to the zipline at the playground. Council thanked Michael Labagh for stepping in as Interim Recreation Director. 5.4. CONSIDERATION OF MEMORANDUM OF UNDERSTANDING: CLIMATE ACTION COLLABORATIVE GOVERNING BOARD (TOWN MANAGER ERIC HEIL) Video Start Time: 01:22:58 Town Manager Eric Heil explained that this is a MOU to create a governing body for the Climate Action Collaborative Board and there are two proposed motions, the first one to approve the MOU and the second one to designate Mayor Smith Hymes as the primary and himself as alternate representative for the Town. Mayor Smith Hymes asked for public comments and no public comments were made. Councilor Hardy moved to approve the Memorandum of Understanding by the Local Government Members of the Climate Action Collaborative for the Eagle County Community. Councilor Prince seconded the motion and the motion passed unanimously. Mayor Pro Tem Phillips moved to designate Mayor Sarah Smith Hymes as the primary representative and Town Manager Eric Heil as the designated alternate for the Town of Avon on the CAC Governing Board. Councilor Hardy seconded the motion and the motion passed unanimously. 5.5. P UBLIC HEARING: SECOND READING OF ORDINANCE 21-08 MODEL TRAFFIC CODE (TOWN PROSECUTOR ELIZABETH PIERCE -DURANCE ) Video Start Time: 01:29:35 Town Prosecutor Elizabeth Pierce -Durance presented the ordinance for second reading and confirmed there were no changes from the first reading. Mayor Smith Hymes asked for public comments and no public comments were made. AVON REGULAR MEETING MINUTES TUESDAY JUNE 22, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Councilor Hardy moved to approve on Second Reading Ordinance 21 -08 Adopting the 2020 Model Traffic Code by reference for use within the Town of Avon. Mayor Pro Tem Phillips seconded th e motion and the motion passed unanimously. 5.6. FIRST READING ORDINANCE 21-05 CONCERNING THE MANAGEMENT OF PLASTIC PRODUCTS (TOWN ATTORNEY P AUL WISOR ) Video Start Time: 01:32:27 Town Attorney Paul Wisor introduced the ordinance and explained this ordinance seeks to further enhance efforts to manage plastic products in Town including plastic bags. He said this ban on expanded polystyrene takes effect January 1, 2024, and that beginning July 1, 2024, the Town may impose more stringent restrictions than set forth in HB 21 -1162. Mayor Smith Hymes called out General Government Intern Emily Myler for her excellent work on the plastic bag report. Mayor Smith Hymes asked for public comments and no public comments were made. Mayor Pro Tem Phillips moved to approve on First Reading Ordinance 21 -05 Amending certain portions of Section 8.38.020 of the Code, enacting Chapter 8.50 – Prohibition On Use of Expanded Polystyrene Food Containers, and setting a public hearing for second reading on July 13, 2021. Councilor Hardy seconded th e motion and the motion passed with a vote of 6 to 1. Councilor Andrade voted no. 5.7. FIRST READING OF ORDINANCE 21-09 APPROVING CODE TEXT AMENDMENTS TO CHAPTER 7 OF THE AVON MUNICIPAL CODE (PLANNING DIRECTOR MATT PIELSTICKER) Video Start Time: 01:47:42 Planning Director Matt Pielsticker presented and thanked Town Planner David McWilliams for putting the Avon Development Code amendments together. Councilor Prince asked questions regarding fencing and said he does not support this, as each case should be reviewed case by case instead of a blanket approval. Councilor Hardy asked to add fencing language changes to the code now that the code language is being discussed. Council also emphasized the lighting language. Mayor Smith Hymes asked for public comments and no public comments were made. Councilor Thuon moved to approve on First Reading Ordinance 21-09 Approving Code Text Amendments to Chapter 7 of the Avon Municipal Code and setting a public hearing for second reading on July 13, 2021, with the direction to staff to add the discussed changes to the fencing language. Councilor Prince seconded the motion and the motion passed with a vote of 5 to 2. Councilor Underwood and Mayor Pro Tem Phillips voted no. 5.8. PRESENTATION: DIGITAL MESSAGING SIGNS (TOWN ENGINEER JUSTIN HILDRETH) Video Start Time: 02:18:44 Town Engineer Justin Hildreth highlighted the proposed locations. Council discussed the disconnect when PZC only looks at design and does not take cost into account or safety per lo cation. Councilor Thuon said he is more into the safety issue and suggested to put it on the straight road instead of the corner where cars shift next to the bike line. AVON REGULAR MEETING MINUTES TUESDAY JUNE 22, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Councilor Prince mentioned that vehicle accidents on Wildwood Road may hit/damage the sign. The Majority of Council was in favor of a cheaper option, and it was suggested that Avon Elementary School would be a great location. Council asked staff to stake out the different areas. 5.9. PUBLIC HEARING: OUTDOOR USE OF AMPLIFIED SOUND PERMIT APPLICATION (CASE MANAGER DANITA DEMPSEY) Video Start Time: 02:45:52 Town Manager Eric Heil presented the sound permit application. Town Attorney Paul Wisor confirmed that the Town has not received any complaints in the past. Mayor Smith Hymes asked for public comments and no public comments were made. Councilor Prince moved to approve the Outdoor Use of Amplified Sound Application for the XTERRA Mountain Championships at Harry A. Nottingham Lake boat ramp. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously. 5.10. RESOLUTION 21-15 AMENDING AND RE-ADOPTING THE SIMPLIFIED RULES OF ORDER FOR AVON TOWN COUNCIL MEETINGS TO REFLECT REMOTE ATTENDANCE POLICY (TOWN ATTORNEY PAUL WISOR AND TOWN MANAGER ERIC HEIL) Video Start Time: 02:49:00 Town Attorney Paul Wisor presented this topic and explained that this resolution outlines the rules and clarifies under what circumstances a Council member can attend remotely. He explained that the revised draft being presented includes suggestions from Councilor Underwood and some other changes, including that all requests to attend remotely should be in writing, when a Council member participates remotely a roll call should be taken for every vote, and that the presiding officer should designate someone to be the contact person in case of technical difficulties. Mayor Smith Hymes asked for public comments and no public comments were made. Councilor Thuon moved to approve Resolution 21-15 Adopting an Amended and Restated Simplified Rules of Order for Avon Town Council Meetings to Reflect a Remote Attendance Policy, including Town Attorney Paul Wisor's proposed changes. Mayor Pro Tem Phillips seconded the motion and the motion passed unanimously. 5.11. ELECTRIC BUS PURCHASE AGREEMENT (MOBILITY DIRECTOR EVA WILSON) Video Start Time: 02:53:30 Mobility Director Eva Wilson joined the meeting to answer Council questions. She clarified that this is a direct swap and that the grant goal is to remove the old diesel buses off the road permanently. She mentioned the expected time to receive these buses is February 2022. Mayor Pro Tem Phillips moved to accept the FTA grant funds for the purchase of two electric vehicles. Councilor Hardy seconded the motion and the motion passed unanimously. Mayor Pro Tem Philips then moved to accept the Proterra Purchase Agreement. Councilor Hardy seconded that motion and the motion passed unanimously. AVON REGULAR MEETING MINUTES TUESDAY JUNE 22, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM 5.12. DIESEL BUS PURCHASE AGREEMENT (MOBILITY DIRECTOR EVA WILSON) Video Start Time: 03:01:12 Mobility Director Eva Wilson joined the meeting and presented this agreement to Council. She clarified that these are clean diesel buses and very different than the old ones that are need to be destroyed. She mentioned the expected time to receive these buses is August 2021. Mayor Pro Tem Phillips moved to accept the State of Colorado Grant Agreement for the purchase of two new diesel buses. Councilor Hardy seconded the motion and the motion passed unanimously. Mayor Pro Tem Phillips then moved to approve the CMPC Purchase Agreement with Gillig. Councilor Thuon seconded the motion and the motion passed unanimously. 5.13. ACCEPTANCE OF GRANT AWARD – CORONAVIRUS RESPONSE AND RELIEF SUPPLEMENTAL APPROPRIATION ACT GRANT (MOBILITY DIRECTOR EVA WILSON) Video Start Time: 03:03:47 Eva Wilson presented the grant award for the Town of Avon for $967,728 dedicated to Transit Operations. Mayor Pro Tem Phillips moved to approve the State of Colorado Subaward Agreement for CRRSAA in the value of $967,728. Councilor Hardy seconded the motion and the motion passed unanimously. 5.14. CONSIDERATION OF MEMORANDUM OF UNDERSTANDING: THE COLORADO EV RENTAL CAR PROGRAM (MOBILITY DIRECTOR EVA WILSON) Video Start Time: 03:05:11 Eva Wilson introduced the MOU. She said this is a state program which encourage EV rentals with the purpose of giving public the opportunity to drive an EV and potentially buy one and to have more EV in the Mountain region. She mentioned how the Avon Recreation Center will offer two one-day passes as an incentive and that this program will start at the Eagle County Regional Airport this fall. Councilor Thuon moved to enter into a Memorandum of Understanding for the Colorado EV Car Program. Councilor Prince seconded the motion and the motion passed unanimously. 5.15. RIVERFRONT LANE REVOCABLE LICENSE AGREEMENT (PLANNING DIRECTOR MATT PIELSTICKER) Video Start Time: 03:08:27 Planning Director Matt Pielsticker presented the license agreement. He mentioned that this agreement is for parking, loading, landscaping improvements, and skier shuttle pull off area. Jim Telling joined virtually to answer Council questions. Mayor Smith Hymes asked for public comments and no public comments were made. Councilor Hardy said she had to recuse for this item but forgot to disclose that earlier. Councilor Prince moved to recuse Councilor Hardy. Mayor Pro Tem Phillips seconded the motion and the motion passed with a vote of 6 to 0. Councilor Hardy then left the room. AVON REGULAR MEETING MINUTES TUESDAY JUNE 22, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Councilor Thuon moved to approve Revocable License Agreement with Riverfront Village Hotel, LLC for Riverfront Lane Right-of-Way improvements. Mayor Pro Tem Phillips seconded the motion and the motion passed with a vote of 6 to 0. Councilor Hardy was recused. Councilor Hardy returned to the room at 8:14 p.m. after voting. 6. MINUTES 6.1. APPROVAL OF JUNE 8, 2021 REGULAR COUNCIL MEETING MINUTES (TOWN CLERK BRENDA TORRES) Video Start Time: 03:13:37 Mayor Pro Tem Phillips moved to approve the minutes from June 8th regular meeting as presented. Councilor Prince seconded the motion and the motion passed unanimously. 7. WRITTEN REPORTS 7.1. Monthly Financials (Senior Accountant Joel McCracken) 7.2. June 15th Planning and Zoning Commission Meeting Abstract (Planner David McWilliams) 7.3. Upper Eagle Regional Water Authority May 27, 2021 Meeting Summary (Mayor Smith Hymes) 7.4. Avon Police Department Disposition on Forfeited Properties for 2020 (Police Chief Greg Daly) 7.5. Public Wi-Fi Firewall (IT Manager Robert McKenner) 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES Video Start Time: 03:14:25 Councilor Thuon had several comments: 1. He thanked Chief Daly and the firemen out there for keeping everyone safe 2. He reminded everyone to sign up for the Eagle County Alerts app 3. He encouraged everyone to get vaccinated 4. He said that in terms of the flag talk, he asked to please have tolerance and kindness 5. He asked Town Manager Eric Heil about Walmart having a restriction to sell alcohol until 10:00 p.m. per a Town ordinance, as he was informed at the store, and asked Town Attorney Paul Wisor to please give them a call to clarify it is per state regulations, not local 6. He raised awareness for E-bikes in the park as some go too fast and scare pedestrians. He suggested to set speed limit or pedal only policies through an ordinance 7. He asked for an update on researching a potential marijuana tax. Town Manager Eric Heil confirmed this is on the 2021 workplan and there will be an update to Council in July 8. He asked if the culvert on Metcalf Road has been repaired 9. He asked for an update on the old Town Hall demo 10. He also asked for a siren generator update 11. Regarding the schedule of the underpass construction, he suggested to have an independent third- party management to oversee line item by line item understanding in the contract and to oversee cost and the timing 12. He closed his comments asking everybody to be kind. AVON REGULAR MEETING MINUTES TUESDAY JUNE 22, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Mayor Pro Tem Phillips expressed that she is upholding the State law and the LBGTQ+ community is part of that and protected under that law, and that if your words are bigoted and discriminatory, no matter how sweet, you are violating the State law. She said that, as a Town Councilor and as a Real Estate Agent, it is her responsibility to uphold the Colorado laws. Councilor Hardy had several comments: 1. She asked for an update on the Pride in the Park event and said it was a beautiful event to celebrate inclusivity. She expressed how it was very moving and that the community is amazing. She said she admires the many incredible emails that Council received and how this is making things better for the youth in the valley 2. She mentioned that she walked the park with Town Manager Eric Heil and staff last week and said the prairie dog situation is outrageous and is causing stress on the HOA's nearby 3. She said in one location in the park near the baseball field the safety needs to be improved to make access easier 4. Lastly, she said after hearing tonight that the Recreation Center’s parking lot is already full currently with only 250 visitors per day (pre-pandemic it was at 500/600 day), Council may need to revisit on-street parking to accommodate all visitors. Councilor Andrade asked the Town to err of side of caution and not have the fireworks on July 3rd. Mayor Pro Tem Phillips suggested to use the fireworks on an event that would stimulate business in the winter, but not on Christmas week. Mayor Smith Hymes had several comments: 1. She wanted to talk about the flag controversy and said that a few years ago Council discussed a detailed Code of Conduct which Council ultimately did not adopt. She said that Council has to be very careful of speaking on behalf of the entire Council versus expressing their personal opinion. She said that because Council does not have a Code of Conduct, they do not know what other Councilors are doing/emailing and until Council agrees on protocols, all Councilors should be clear if responding whether their words express personal or Council opinion 2. She said the inaugural Art Around Avon Walk on June 11th was lovely and it was a beautiful day. She mentioned the artists said that their pieces move around to different communities and one artist suggested that Council purchases one piece every year. Council suggested switching the heart and the sawblade pieces 3. She reminded everyone about AvonLIVE! tomorrow 4. She announced that the MIRA Bus will be present at Salute to the USA event with COVID-19 vaccines 5. She said that SunsetLIVE! last Sunday was so great and so well attended 6. She asked about replacing the plaques for the bronze statues around town as they look very old 7. She then polled Councilors on availability for a second budget retreat on September 24th which is a full day in addition to the half day that is scheduled on October 29th. AVON REGULAR MEETING MINUTES TUESDAY JUNE 22, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM 9. ADJOURN There being no further business before Council, Mayor Smith Hymes moved to adjourn the regular meeting. The time was 8:59 p.m. These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk' s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: Brenda Torres, Town Clerk APPROVED: Sarah Smith Hymes ___________________________________ Amy Phillips Chico Thuon Scott Prince Tamra Underwood Lindsay Hardy RJ Andrade AVON SPECIAL MEETING MINUTES THURSDAY JUNE 24, 2021 SETUP AS A VIRTUAL MEETING VIA ZOOM 1. CALL TO ORDER AND ROLL CALL The meeting was hosted in a virtual format, using Zoom.us. Mayor Pro Tem Amy Phillips called the special meeting to order at 5:02 p.m. A roll call was taken, and Council members present by video/audio were RJ Andrade, Chico Thuon, Lindsay Hardy and Scott Prince. Councilor Underwood and Mayor Smith Hymes were absent. Also present were Town Manager Eric Heil, Town Attorney Paul Wisor, Town Clerk Brenda Torres and General Government Manager Ineke de Jong. 2. APPROVAL OF AGENDA There were no requested changes. Councilor Hardy moved to approve tonight’s agenda, Councilor Andrade seconded that motion and the motion passed 5 to 0. 3. DISCLOSURE OF ANY CONFLICTS OF INTERESTS RELATED TO AGENDA ITEMS Town Attorney Paul Wisor disclosed that Mayor Smith Hymes and Councilor Underwood are absent this evening as the recall directly affects them and creates the appearance of impropriety and they will therefore not be participating. 4. PUBLIC COMMENT – COMMENTS ARE WELCOME ON ITEMS NOT LISTED ON THE FOLLOWING AGENDA Mayor Pro Tem Phillips opened it up for public comments. No public comments were made. 5. EXECUTIVE SESSION Mayor Pro Tem Phillips asked for a motion to move into Executive Session for the purpose of receiving legal advice pursuant to Section 24-6-402(4)(b), C.R.S. in connection with the recall of Mayor Smith Hymes and Councilor Underwood. Councilor Andrade moved that motion, Councilor Prince seconded that motion and that passed 4 to 0. Councilor Thuon’s audio/video were frozen so he was unable to vote. The regular meeting adjourned at 5:07 p.m. 5.1 EXECUTIVE SESSION FOR THE PURPOSE OF RECEIVING LEGAL ADVICE PURSUANT TO SECTION 24-6-402(4)(B), C.R.S. IN CONNECTION WITH THE RECALL OF MAYOR SMITH HYMES AND COUNCILOR UNDERWOOD. Mayor Pro Tem Phillips convened in Executive Session for the purpose of receiving legal advice pursuant to Section 24-6-402(4)(b), C.R.S. in connection with the recall of Mayor Smith Hymes and Councilor Underwood. The time was 5:13 p.m. Present were Lindsay Hardy, Chico Thuon, Scott Prince, RJ Andrade and Amy Phillips. Also present were Town Manager Eric Heil, Town Attorney Paul Wisor, Legal Counsel Andrea Bryan and General Government Manager Ineke de Jong. The Executive Session started at 5:13 p.m. and the recording was turned off. Legal Counsel Chris Bryan joined at 5:23 p.m. Legal Counsel Chris Bryan left at 6:11 p.m. Legal Counsel Andrea Bryan left at 6:23 p.m. The Executive Session ended at 6:25 p.m. and the recording was re-started. AVON SPECIAL MEETING MINUTES THURSDAY JUNE 24, 2021 SETUP AS A VIRTUAL MEETING VIA ZOOM 6. RECONVENE IN OPEN SESSION TO TAKE ACTION Council then came out of the Executive Session and re-started the recording to take action in open session and have it on record. Town Manager Eric Heil explained that Council may come out of Executive Session to take action in open session if it’s related to the topic of the Executive Session. The Town will post the recording for the public through our normal channels (HighFiveMedia). The open session started at 6:25 p.m. Councilor Prince moved to follow Judge Granger’s ruling and order the Town to proceed with the recall election per the judge’s ruling. Councilor Andrade seconded that motion and the motion failed 2 to 3. Councilors Thuon, Hardy & Mayor Pro Tem Phillips voted no. Mayor Pro Tem Phillips moved to direct the Town legal team to proceed with filing an Appeal of the judge’s ruling and requesting a stay of the recall election. Councilor Hardy seconded that motion and it passed 3 to 2. Councilor Prince voted no and wanted the record to state that it is not the Town’s role to send this to an Appeal as we have other important Town issues we should be dealing with. Councilor Thuon wanted the record to reflect that he voted yes as he thinks its important that we set a precedent not to be bullied by everybody that wants a recall. 7. ADJOURN There being no further business before Council, Mayor Pro Tem Phillips moved to adjourn the special meeting. The time was 6:29 p.m. These minutes are only a summary of the proceedings of the meeting. They are not intended to be comprehensive or to include each statement, person speaking or to portray with complete accuracy. The most accurate records of the meeting are the audio of the meeting, which is housed in the Town Clerk' s office, and the video of the meeting, which is available at www.highfivemedia.org. RESPECTFULLY SUBMITTED: Ineke de Jong, General Government Manager APPROVED: Amy Phillips ___________________________________ Chico Thuon Scott Prince Lindsay Hardy RJ Andrade 970-748-4004 eheil@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Eric Heil, Town Manager RE: Quarterly Update on 2021 Department Goals DATE: July 8, 2021 SUMMARY: During the two January Council meetings, we presented an overview of the many goals and plans of the Town of Avon Departments. This list of Department Goals presents an ambitious and full list of intended activities in addition to the regular function of each Department. An update on progress and/or completion will be presented quarterly. Council will have the opportunity to review progress and ask questions, make comments and provide further direction if desired, including additional, removal or re- prioritization of goals. SECOND QUARTER UPDATE: GENERAL GOVERNMENT 1. Establish a “State of Town” Document or Video: Avon will create a “State of the Town” presentation that will review highlights from 2020 and provide an overview and outlook for significant projects in 2021. State of the Town video presentation is scheduled to be presented to Council at the April 27, 2021 Council meeting. Staff prepared a comprehensive presentation for the spring Avon Business community outreach which was presented at the Westin on May 26, 2021. [Here is a link to the presentation] Completed. 2. Holy Cross Electric Franchise Agreement Renewal: The Holy Cross Electric Franchise Agreement is required to be renewed. This is a twenty-year agreement that expires on February 28, 2021 and needs to be renewed. A report and draft ordinance for first reading will be presented in January to Council. Completed. 3. Implement Bang the Table Community Engagement Platform: Council approved the “Bang the Table” Community Engagement Platform in fall of 2020. Staff is preparing a variety of Town projects to post on this new platform. The goal is post approximately nine separate projects by the beginning of February and then review performance, functionality and usage with Council in April. First phase is completed with 5 projects published. Community Survey and Harry A. Nottingham Park East Design Project is planned to be published by mid-April. Presentation to Council was provided on March 23, 2021, along with review of performance and usage. Follow-up on review of performance and usage is planned to occur during the 3rd quarter. No update. 4. Update Procurement Code: The existing Procurement Code was adopted in 2010. Staff has a working draft of a revised and updated Procurement Code to present to Council at the end of February. Adoption of the revised Procurement Code would occur by Resolution. Updates the Procurement Code are planned to be presented to Council at the May 11, 2021 Council Page 2 of 20 meeting. This project has been deferred and is planned to be presented to Council at the August 10th Council meeting. 5. Update Avon Brand Guidelines: Avon adopted Brand Guidelines in 2016 which establishes colors, fonts and standards for use of the Town logo. Since its adoption, Avon has not used some color formats, has integrated other colors, has returned to the “Heart of the Valley” tag line and has established the Heartbeat Newsletter. The update to the Avon Brand Guidelines document will incorporate current practices for marketing, communications and documents and will bring the document in-house so that it can be updated more easily. Brand guidelines were updated in February and a written report was presented to Council. There were some questions raised during presentation to Council. Council direction is requested on whether to bring the Avon Brand Guidelines back for further review and discussion. 6. Update Contract Archive Procedures: All contracts are public documents and are required to be archived by the Town Clerk. Avon has not established written or uniform procedures for transmitting contracts to the Town Clerk’s office. Staff is currently creating a transmittal letter and uniform process for all Departments to transmit executed contracts to the Town Clerk’s office. We are also exploring placing all Town contracts in a designated folder under public records that can be accessible on the Town’s website. General Government has updated is procedures for contract archiving and is in the process of implementing with all departments. A written report from Town Clerk Brenda Torres was sent to Council for the May 11, 2021 Council meeting. Completed. 7. Promote Recycling for Multi-Family and Accommodations Buildings in the Town Core: The West Town Center area has the highest concentration of multi-family and accommodations buildings. Staff will develop a contact list, determine existing practices, organize open house meetings with the building managers, and identify opportunities to promote recycling for these properties. Staff is in the process of contacting existing multi-family buildings and is scheduled to present a report to Council on May 11, 2021. This project is deferred to late summer. General Government staff resources were re-allocated to support Special Events when we were not able to fill both full- time seasonal Event Coordinator positions. 8. Collect Residential Sales Data: Currently, approximately 50% of residences in Avon are occupied by full-time residents as their primary residence. The Avon Community Housing Plan states the goal to preserve this ratio of at least 50% primary residence occupancy of residential properties. In order to monitor and track compliance with this goal, residential sales data should be collected each year to determine the loss or gain in primary residence occupancy as well as to track real estate prices in relationship to affordable and accessible housing. Staff is scheduled to determine the process to collect residential sales data and present to Council at the April 27, 2021 Council meeting. This project is deferred to the 3rd quarter. 9. Adopt Recall Procedures by Ordinance: Avon Home Rule Charter states that Avon may adopt Recall Procedures by ordinance. Avon has not adopted Recall Procedures. Other municipalities have adopted Recall Procedures which typically include forms and instructions which are more accessible to the public. This goal is on hold until the Eagle County District Court rules on the pending recall declaratory judgment action. The Eagle County District Court ruled on the declaratory judgment action on June 23. The Appeal of this judgment may take several months, so this project is deferred until further notice. Page 3 of 20 10. Establish a Climate Action Investment Matrix: Avon appropriates and invests funds every year to implement greenhouse gas reduction and advance climate action goals. Establishment of an investment matrix is a carry-over project from 2020. The intent is to summarize various climate action projects, the financial investment for each project, the reduction of greenhouse gas and then provide a comparison of return on investment for various projects. Staff is scheduling time in April to gather data from each Department on greenhouse gas emissions and how to present this information in an investment matrix. We have scheduled to present information to Council at the May 11, 2021 Council meeting. This project is deferred to fall due to several Department Director and re-prioritizing to support continuity of daily operations. 11. Research Net Zero Communities: Avon endorses the Net Zero Mountain Town 2030 goals of reducing community greenhouse gas emissions to a “net zero” level. This goal involves researching and presenting the actions, economy and lifestyle of communities that have achieved net zero greenhouse gas emissions. Staff is compiling research and information on net zero communities and provide a presentation to Council in work session during the 4th quarter 2021. This project is deferred to fall due to re-allocation of resources to support Special Events during the summer. 12. Comcast Franchise Renewal: The current Comcast Franchise Agreement expires at the end of 2022. A cable franchise agreement renewal process typically requires a year. The goal is to review the process and then commence by the end of 2021 and conduct the majority of the renewal process in 2022. This goal is planned to start in the 4th quarter of 2021. No update. 13. Trademark Logos and Names: Identify various logos, marks, event names and tag lines used for Avon’s brand and file appropriate action to trademark and protect this branding and marketing intellectual property. This goal is planned to start in the 2nd quarter of 2021. A written report is scheduled to be provided to Council in the 3rd quarter of 2021. No update. 14. Art in Avon: Art in Avon will solicit artists to create outdoor art works that can be displayed in various locations in Avon for a year and then would be replaced each year with new artwork. Artists receive a modest commission to assist with material costs and the artwork is displayed for potential sale. It would be featured each year and would be promoted with self-guided walking tours. This goal is substantially underway. A written report was provided to Council on February 23, 2021. A follow-up work session is scheduled for June 22, 2021. Sculptures were selected and installed. Avon’s inaugural Art Walk was held on Friday, June 11, 2021. Completed. 15. Recreation Center Mural: The Avon Recreation Center has three large blank cinder block walls on the south side of the building facing the Avon Main Street Mall. This area was identified for installation of mural art in a manner similar to Lettuce Shed Lane. This goal is substantially underway. A diverse review committee has been established to review over 25 mural submissions. This project is on track to be implemented in early summer. An artist was selected, and the Recreation Center Mural was installed in June 2021. Completed. 16. Conduct 2021 Community Survey: A biennial survey would be conducted in the late spring to solicit input on Town services and pending policy questions. The community survey will be sent to residents, property owners and business owners in Avon. Staff is in the process of working with the CASE Committee and Health and Recreation Committee on various survey questions. The Page 4 of 20 2021 Community Survey was reviewed at two Council work sessions and is currently live through July 30th. 17. Conduct Long Range Avon Vision Process to Replace Former Strategic Plan: A vision document will be created that describes how the Avon community desires to see Avon in 10 to 20 years along with strategic policies to achieve this vision. This goal will start in the 3rd Quarter after the results of the Community Survey have been compiled. No update. 18. Establish Winter Marketing Plan for 2021-2022 Ski Season: A winter marketing plan will be created which reflects the values of the Avon community and seeks to attract visitors during the winter which are compatible with Avon’s community values. This goal will start in the 3rd Quarter in preparation for the 2021-2022 Winter Season. No update. 19. Update discoveravon.org website: The Discover Avon Website will be updated to establish a more attractive and user-friendly destination marketing website ready to serve the Town’s future marketing plan. Updates to Discover Avon Website are nearly finished and this marketing website will be presented to Council at a work session in the 2nd Quarter. Discover Avon went live in Q2 and was presented to Council at the May 25, 2021 meting. Completed. 20. Research Home Office Licenses: A business license is required for residents working from their home office in Avon. Staff will research best practices in peer communities. A written report will be presented to Council on the April 13, 2021 Council packet and a work session for review and direction will be scheduled in the 2nd Quarter. This report was submitted to Council on April 13, 2021. Council did not provide direction to take any further action. Completed. SECOND QUARTER UPDATE: FINANCE 1. Implement Tyler Incode ERP System: The Finance Department proceeded with the Tyler Technologies software upgrades to replace Sungard and PowerPlan in the fall of 2020. All of the Town’s accounts will be transferred over and entered into the Tyler Technologies software platform and Staff will be trained on using this new platform for all budgeting and financial matters. An overview of the new platform and functionality will be presented to Council in early 2021. Finance staff has been involved with the implementation of the new ERP (Enterprise Resource Planning) system since the first quarter of 2020 when the planning process with Tyler began. The implementation has been done entirely remotely which I believe was a first for Tyler. Page 5 of 20 Planning. The planning phase consisted of sharing information with Tyler in order for them to begin the task of setting up our new systems with the Town’s chart of accounts, vendors, banking information, personnel files, payroll data, budget, general ledger balances, fixed asset records, forms and much more. Amy Greer, Robert McKenner, and I held biweekly project planning meetings with our Tyler project manager through the end of the year. Implementation. Beginning November 1, we began configuration meetings with our implementation consultant. These meetings ran 4 days per week for 4-6 hours per day for several weeks through the end of December. These meetings involved various staff based on the module being implemented and included administrative setup and security, user setup, establishment of internal processes, review of converted data, reporting, etc. This also included two parallel payroll runs at the end of December and beginning of January. A parallel run involves preparing and running the Town’s entire payroll on the old SunGard system as well as on the new Tyler Incode ERP system in order to make sure all payroll totals, taxes, benefits, and deductions match each other. Go Live. The Town went live with the general ledger in Incode on January 4, the first workday of the new year. Since then we have gone live with all modules with the exception of Accounts Receivable. This includes cashiering, purchasing, accounts payable, personnel management, payroll administration, fixed assets, project accounting, and bank reconciliations. The position budgeting module and the budget portion of general ledger have been implemented but not really used yet. The Go Live process ran 1–5 days for each module averaging 4–6 hours per day over several weeks with staff working through remote screensharing with our Tyler Go Live consultant. Shortly after each module went live for Finance, the Finance staff then trained departments to utilize various components including creating requisitions, approving requisitions, viewing and managing purchase orders, and invoice entry. As Finance continues to use and better learn the Incode system and the myriad of reports available, we will assist end users in setting up and customizing their dashboards. We will train on and begin using the position budgeting module and budget as we get closer to budget season this summer. The 2020 year-end audit is a hybrid of two systems and may be a little challenging as only general ledger balances from SunGard (not detailed transactions) were migrated into Tyler. Reporting and system integration is significantly improved and should enhance end user’s experience and efficiency in gathering management data. With the exception of position budgeting and budget input, the implementation of the initial ERP system is complete. On July 14, finance staff and staff from other departments will demo three additional software modules: Executime Timekeeping, HR Onboarding, and Content Management. 2. Implement ClearGov Budget Platform: Council approved the Clear Gov Budget website platform to improve the public’s ability to review and understand the Town’s budget. A presentation to Council will be scheduled in early 2021. A demonstration of the platform is scheduled for the April 27 Town Council meeting. For the 2022 budget year we plan to add information regarding capital projects, maps, project descriptions, budgets, and more detail. This platform is very dynamic and the Town can upload additional information to the Transparency platform at any time. Completed. 3. Create a Public Real Estate Transfer Tax Analysis Document: Questions concerning the Town’s real estate transfer tax arise periodically. A comprehensive analysis of the Town’s real estate transfer tax will be prepared and presented to Council in early 2021. A follow-up with the Town Manager is needed to decide next steps, if any. Completed. Page 6 of 20 4. Broadband Planning Project: Town has contracted with HR Green to conduct a Broadband planning analysis, which will include conducting a market assessment, determining community preferences, and analyzing the broadband activities of our peer mountain resort communities. Phase 1 – Public Outreach Task 1 – Community Needs Assessment March - April Task 2 – Market Assessment March – April Task 3 – Assessment of Private Broadband Resources April – May Task 4 – Peer Community Summary March - April Task 5 – Inventory & Assess Assets/GIS Tool March – May Task 6 – Establish Community Broadband Vision May Task 7 – Identify Smart City Synergies April - May Phase 2 – Planning Task 1 – Conceptual Network and Infrastructure Requirements May-June Task 2 – Develop Financial Feasibility Model June – July Task 3 – Complete Broadband Master Plan & Executive Summary July - August Meeting – Final Report & Presentation August 2021 A kick-off meeting with HR Green was held in late February. Tasks for the projects and completions dates were agreed on (See task list below). A residential/business broadband survey has been published on the Engage website. The survey closes April 30. Participation in the survey so far has been very limited. An advertising plan to increase survey participation as been implemented. Next, HR Green will be scheduling individual and group meetings with key anchor institution. All tasks in phase 1 are complete except Task 6. Task 6 requires Council’s input to establish a vision. This is a two-step process. The first step would be to have a working session with Town Council and HR Green. The meeting would focus on gaining direction from council through question and answers. The second step would be providing a written report and a Council presentation. 5. Research Sales Tax on Vehicle Purchases and Leases: Staff will research the total sales tax paid for vehicle purchases in the Town of Avon in order to present information on the potential financial incentive for sales tax waivers for electric vehicle purchases. No update. 6. Refresh Financial and Budgetary Policies: The Town’s budget includes Financial and Budgetary Policies which are re-adopted each year. Staff will review and present proposed revisions to the Financial and Budgetary Policies to the Finance Committee for inclusion in the draft budget for 2022. This will begin in August during the 2022 budget process. 7. Update Financial Comparison of Peer Communities: Town conducted comprehensive comparisons of the Town’s tax structure with neighboring communities in Eagle County. Staff will update those comparisons and expand to include our primary comparator communities of Breckenridge, Frisco, Silverthorne, Snowmass, Steamboat Springs, Telluride and Vail. & 8. Research Portion of Avon’s Revenues from Visitor Economy: Staff will conduct an analysis to determine the share of the Town’s revenues that are derived from the visitor economy. For goals 7 & 8 Page 7 of 20 Staff has held a meeting with EPS, the firm that did the original Fiscal Analysis and Peer Community Comparison of Revenues, Budgets and Services and Assessment of Real Estate Transfer Tax Impacts. EPS has submitted a proposal which is currently under review by the Town Manager. 9. Establish Long-Range Planning Projection per Budget Policies: The Budget Policies state that long-range planning projections should be established. Staff will prepare long-range planning projections for presentation and review by the Finance Committee. This will begin in late July during the 2022 budget process. 10. Establish Improved Public Involvement Process and Budget Schedule: Staff will establish and execute an improved budget schedule for public involvement for the 2022 budget process. The first step of drafting a list of vision and strategy ideas is set to begin in early July. 11. Establish Improved Assessment of Revenues and Costs for Identified Activities: Staff will utilize the Tyler Technology platform to identify activity areas, such as Recreation Center, Transit, Fleet operations, and Special Events, and present revenues and expenses with those activity areas to promote understanding of cost and financial goals to balance revenues and expenses in specific activity areas where possible. This will begin in August during the 2022 budget process. 12. Present Legal and Financial Analysis of Use Tax: Staff will prepare an overview of sales and use tax as commonly used throughout Colorado, potential revenues, potential dedication of such revenues for designated purposes such as capital improvements or community housing, and present that information to the Finance Committee. Staff will be presenting a report and PowerPoint presentation regarding construction materials use tax at the July 13 Town Council meeting. The purpose of this presentation is to encourage Council to move forward with a ballot question in November to approve a construction materials use tax. 13. Research Marijuana Tax: Staff will research this opportunity and prepare a report and present that information to the Town Council. No update. 14. Research & Implement Blended Virtual/In-Person Format: Council indicated they would like to offer virtual participation as an option once/after Council goes back to meeting in-person in Council Chambers. Staff will research and implement the technology to host such a “blended” meeting. On April 1 and 2 JK Perry and Robert McKenner tested a hybrid solution. On April 5 JK and Robert are presenting the recommended solution to the Town Manager, Mayor and Mayor Pro Temp. If the solution is acceptable a budget will need to be developed to modify the audio/visual system in Council chambers. Completed. OTHER PROJECTS NOT INCLUDED IN TOWN COUNCIL GOALS Online Travel Company (OTC) setup: Pursuant to the Town’s recent sales tax and accommodation tax ordinances Finance staff has been communicating and setting up licenses for marketplace retailers to collect and remit taxes to the Town. Ongoing. Purchasing Card Systems: As of 4/1/2021 we have completed the migration to a new purchasing card system with UMB Bank and are no longer using First Bank debit cards. The new purchasing cards allow users to upload receipts and coding electronically and allow finance to upload and post transactions Page 8 of 20 electronically to our general ledger. This is a much more efficient process for Finance, and will eliminate the need for most petty cash checks. Completed. Annual Audit: The final draft of the audit report will be presented to Town Council for acceptance on July 13. SECOND QUARTER UPDATE: HUMAN RESOURCES 1. Comparison of Benefits in Peer Communities: Staff will conduct a comprehensive review of employee benefits offered in our peer communities, including our primary comparator communities. This research was completed in 1Q21. In addition, we completed a separate review of how our comparators (and other communities of interest) have treated merit increases and range adjustments in 2020 and for 2021. An updated report for Council is being prepared, and will be delivered in mid-August. 2. Implementation of Customer Service Training Program: Staff will establish and implement a customer service training program that provides uniform training and sets uniform expectations for how Town Staff interacts with the general public. The first draft of this has been reviewed with the Town Manager, and will be rolled out in early Fall. 3. Implementation of Performance Evaluation Training Program: Staff will establish a training program for Directors and Supervisors to conduct performance evaluations with the updated performance evaluation criteria. This initiative has moved into the Summer as we adjusted the Town to a focal point structure for Performance Reviews and Merit Increases. 4. Implementation of Annual or Semi-Annual Pulse Survey: Staff will establish and implement a ‘pulse survey’ to be sent to all Town employees to gather input on working conditions, concerns, and recommendations for improved practices. A Pulse survey for fulltime employees was completed in in 1Q21. The results were reviewed with the Town Manager, and a communication to employees is being developed. Results may drive some additional initiatives for the year. 5. Update American with Disabilities Act Coordinator: The Town adopted by resolution designations and processes for an American with Disabilities Act Coordinator in 1993. Staff will update this document in 2021. An initial review of what other towns are doing has been completed. The next step is to draft a new resolution to comply with ADA and ADAAA, appoint a Coordinator, and implement. 6. Assess Human Resources Information Systems (HRIS): Staff will assess the utility, functionality, costs and benefits for a Human Resources Information System in 2021 and propose options and Page 9 of 20 recommendations for adoption in 2022. An RFI document was developed, and HR has completed demo’s with a number of providers. Tyler Incode had been reviewed in 2019, and had insufficient functionality, but has enhanced their system over the last two years. Finance, IT and HR will be reviewing a deeper demo into Tyler Incode in mid-July. Our current goal is to complete the review process quickly, and get a system installed prior to the end of the calendar year. This project is ongoing. SECOND QUARTER UPDATE: COMMUNITY DEVELOPMENT 1. Implement Bang the Table for Planning Projects: Approximately half of the Bang the Table projects will be planning and development projects overseen or administered by the Community Development Department. Staff will actively participate in developing content for the Bang the Table platform. Content has been created for USFS 779, with a high volume of comments related to the OHV Ordinance. East Harry A. Nottingham Park improvements are live and currently being ‘pushed’ for input as this project gains traction. An emergency response plan for Wildridge-Wildwood-Mtn Star is being developed for the 3rd Quarter. The plan will be vetted with PZC and recommendations brought back to Town Council for consideration. Complete. 2. Update Avon Community Housing Plan: Staff will update the Avon Community Housing Plan to reflect decisions and direction since its adoption. After a public hearing with the Planning and Zoning Commission the plan will move to Town Council for consideration by Ordinance in the third quarter. Modifications to the plan include: removal of Wildwood townhome project, emphasis on regional collaboration with larger projects, and exploring a use tax on construction materials as a way to provide sustainable funding for all housing efforts. 3. Implement SmartGov Permit and Planning Software: Staff will implement the SmartGov Permit and Planning Software to improve Department efficiency. The new Community Development software went live in mid-April and continues to be configured to maximize efficiency in the review processes for the Department. All building permits and planning applications are now administered through the software. Complete. 4. June Creek Road Emergency Egress: Staff will lead Town’s efforts to coordinate with the Berry Creek Metropolitan District, Eagle River Fire Protection District, Eagle County Emergency Management and other stake holders to pursue establishment of an emergency vehicle access on June Creek road. Marcin Engineering is currently completing survey work of the corridor connecting Wildridge and June Creek Point Road to Singletree. Once the survey is complete, plans will be produced this summer for presentation and review by Singletree Property Owners Association (SPOA) and other neighboring properties. If it is determined that work Page 10 of 20 must take place on private property in the vicinity, then temporary easements may be required. Last fall members of the Avon Police Department, Eagle River Fire Protection, SPOA, and managers met on site to walk this emergency egress corridor. The group agreed that the corridor looks like a feasible vehicular egress route and emergency access (i.e. wildfire vehicles) that can be safety used if minor widening and grading is completed. It became apparent that the area between the USFS June Creek road and the Singletree Road trailhead was the narrowest portion that warrants further study. Two gates are necessary: one at each end of this bottom portion of the route. 5. USFS Road 779: Staff will lead Town’s efforts to solicit community input regarding recreational use of USFS Road 779, coordinate with the US Forest Service, determine Council direction where appropriate, and implement such direction. In addition to all of the feedback during the OHV Ordinance, Engage Avon is still accepting comments. Staff has coordinated with the USFS for a new Memo of Understanding to ensure that USFS 779 will remain open under current use and seasonal regulations. Town Council was addressed by the White River National Forest District Ranger as well as community members and representatives from a local non- profit trail group. 6. Swift Gulch Employee Housing Planning: Staff will lead efforts to conduct initial schematic designs, cost estimating and financial options for the development of Town owned employee housing at the Swift Gulch site. RFP process to obtain architectural services is scheduled to go out in July, with initial site planning and programming analysis in August-September. 7. Title 7 Development Code updates: Staff will present updates to the Development Code including updates to the Sign Code to address revisions on electronic signs and political signs. These code amendments received favorable recommendation by PZC, and are scheduled for 2nd and final reading on July 13, 2021. 8. East Harry A. Nottingham Park Planning Project: Staff will lead a community-based design effort to consider improvements to Nottingham Park, including construction of restrooms and related facilities to support events on the main field and the Avon pavilion. Conceptual design alternatives were produced, following input from the Leadership Team members who directly interact with Nottingham Park. In addition to CASE and PZC involvement, public engagement has commenced at AvonLIVE! concerts. The 3rd Quarter is slated for schematic design completion, with formal design review approval by Town Council after another PZC review. 9. Implement Historic Monument Project: Staff will oversee installation of historic photo monuments around Avon and assist with the creation of a walking tour document. Danita Dempsey has led the coordination of the Historic Monument Project. Community Development has continued to assist with organizing and finalizing the project, including obtaining quality imagery for these signs and working with sign fabricators. The sign design company is currently laying out the artwork for the monuments. Final proofs will need to be approved by the project team, which includes Councilors Underwood and Smith Hymes, prior to fabrication and installation. Due to sign company’s backlog of work getting ready for events season, this may be late summer for fabrication and installation. Page 11 of 20 10. Early Education Capacity Research: Staff will research child care needs for the Avon Community and capacity of local early education providers. This work is scheduled for the 3rd Quarter. Regional meetings have been launched by Eagle County to explore this issue valley wide. Staff will be participating in the regional meetings and reporting back to Council appropriately. 11. Customer Service Survey: Staff will establish a customer service survey that can be provided to development applicants each year to gauge the Town’s customer service and solicit input on recommendations for improvement. A survey was provided in January to all planning application applicants. Overall, positive remarks were received all around. This survey tool will be expanded in scope to include building permit applicants, with increased frequency (i.e. quarterly) to garner a better response rate and capture all “customers” of our Department. Complete. Other Identified Projects: 1. Emergency Notification Planning: Following Council direction at a recent meeting, Community Development will lead a comprehensive review of emergency notification tactics for the Mountain Star, Wildwood and Wildridge communities. Analysis of the northern hillside communities will be coordinated with Police, Engineering, and the communities within the area. Findings from study will include notification systems in addition to sirens, and be presented to PZC for review and comment to Town Council. 2. Dark Sky Ordinance: Council expressed interest at the June 22, 2021 meeting to explore updates to the Dark Sky Ordinance to address interior lighting. This was prompted in part by comments received related to the new Piedmont Apartment Project Interior lighting regulations would be a significant undertaking. Revisiting the Town’s 2004 Exterior Lighting Ordinance’s effectiveness can be achieved in 2021. The Village at Avon’s Design Guidelines contain a substantive, comprehensive set of lightings standards that could be used as a guideline in updating the 2004 Ordinance if it is found to be more effective than the current Ordinance. 3. Marijuana Zoning: After Amendment 64 was approved by Colorado voters in 2013 the Town Council adopted a moratorium while considering a local Ordinance to permit the cultivation, processing and retail sales of Marijuana. After a thorough analysis and presentation to Council in 2014 (here.) retail and other commercial uses were prohibited indefinitely. Direction is being sought on this work item, which is expected to consume multiple departments’ attention. The 1,000’ buffer analysis from Public Park Parcels with the current Zoning/PUD prohibition (notably, Village at Avon), is included here to demonstrate the small number of parcels potentially availing themselves to the discussion. The map demonstrates that in order to permit marijuana from a zoning standpoint, the following actions would be necessary: 1) Amend the Village at Avon PUD. The map demonstrates that if the PUD were amended, the area north of Interstate 70, referred to as “Planning Area J”, could meet federal distancing requirements and be a potential area for sales; or Page 12 of 20 2)Amend Municipal Code for Shopping Center and Neighborhood Zone Districts. An Ordinance approving the designation of retail marijuana in the Shopping Center (SC) and Neighborhood Commercial (NC) districts could result in retail sales taking place on the parcels surrounding the main Avon Road Interstate 70 exit, Avon Plaza, 51 Beaver Creek Place, and the City Market property; and/or 3) Amend the Chapel Square PUD. An Ordinance could permit sales in the entire Chapel Square complex. Chapel Square PUD and the Village PUD are the only PUD zoned properties that are commercial in nature and outside the 1000’ buffer requirement. Page 13 of 20 SECOND QUARTER UPDATE: ENGINEERING 1. Implement Capital Improvements Projects Plan for 2021: Provide written status reports on capital improvements projects to Council at first Council meetings in April, June, August, October and December. The Second update is included in the July 13, 2021, Council Packet. 2. Create Public Infrastructure Schedule: Staff will establish a comprehensive schedule of the Town’s public infrastructure, with replacement costs for the next 20 years, including roads, buildings and public facilities. A comprehensive schedule is complete and will be presented to Council at the April 13, 2021 meeting. This information will be re-introduced as part of the 2022 Capital Improvements Plan budget process this fall. The complete scheduled for assets will be included in our annual budgets going forward. 3. Research Best Practices by Peer Communities on Site Security Obligations: Staff will research the best practices for site security obligations for construction projects and present a written report to Council with recommendations. Conditions to ensure completion were added to the Riverfront Grading Permit and Letter of Credit. Additional conditions ensuring completion will be added to future grading permits. This information will be presented in the 4th quarter. 4. Prepare Grading Regulations for Utility Maintenance Work: Staff will review existing grading regulations for utility maintenance work and provide recommendations for revisions. A written report will be prepared for Council in the 3rd quarter. 5. Add Additional Layers of GIS: Staff will continue to develop and add additional layers of GIS to build the Town’s GIS system. The first layers are currently being uploaded to the Town’s GIS system. The irrigation and street light layers will be completed by the 3rd quarter. Staff is preparing a budget that will be presented as part of the 2022 Capital Projects Fund budget proposal. [No change from 1st quarter report] 6. Village (at Avon) Water Bank: Staff will finalize the Village (at Avon) Water Bank schedule and procedures in cooperation with the Village (at Avon) Development Agreement. Staff met with the Traer Creek Development Team in December and are researching other communities’ procedures. They are considering a process where a new development provides an irrigation plan with projected water use and then Traer Creek will evaluate the actual use 3 to 5 years after construction and finalize the allocation. 7. Mayor’s Water Challenge: Staff will research what is involved to participate in this national challenge for potential implementation in 2022. In order to compete, the Town and Mayor sign up for the Challenge and agree to distribute Public Relations documents promoting the challenging. The Challenge runs from April 1 to April 30 every year. I recommend we sign up Page 14 of 20 in January 2022 for the April 2022 challenge. We can outreach to the District and neighboring communities and partner together for the 2022 challenge. [No further action is required this year] 8. Review Water Allocation: Staff will review the Avon water rights allocation to determine if projected water demands for future redevelopment are aligned with water rights and existing water service agreements. This is on-going and is part of each development plan submittal. The Town is currently developing at a lower density then projected in the UERWA Lease Agreement. Staff plans to begin review of overall projected water allocations with UERWA in the 2nd Quarter and complete review as well as reconcile any differences before the end of the 4th Quarter. 9. Energy Conservation Measures. Staff is continually evaluating energy conservation measures at all of our facilities. An energy audit of the Recreation Center was completed in April 2021 and the results are under consideration. The HVAC upgrade project will evaluate energy conservation measures and a transition to electrical system from natural gas. SECOND QUARTER UPDATE: PUBLIC WORKS 1. Prepare Level of Service for All Park, Landscape and Streetscape Maintenance: Staff will prepare a document that describes the level of service for park, landscaping and streetscape maintenance that meets the expectations of the Avon community. A draft has been submitted for internal review. A Level of Service document with a description of resources and costs will be presented to Council as part of the Public Works Department Presentation at the September 24, 2021 Council Budget Retreat. 2. Create a Schedule of Park, Trails and Streetscape Capital Assets and Maintenance Plan: Staff will create a schedule of Parks, Trails and Streetscape infrastructure that is similar to and will compliment the Public Infrastructure Schedule to be created by the Engineering Department. A draft has been submitted for internal review. A Public Works Asset Inventory document with cost estimates for repair and replacement and priority recommendations will be presented to Council as part of the Capital Improvements Fund presentation at the August 24th Council meeting. 3. Implement Timely and Effective Richardson Ground Squirrel Control Program: Staff will implement the control programs for the Richardson Ground Squirrel in spring 2021, before the population grows. Bait boxes will be set in place mid-April, May or soon as the ground squirrels start coming out for the summer. There is a window for best practice to eliminate these squirrels. Orkin was contracted in March and bait boxes were installed in April. They have Page 15 of 20 been on site once a week checking to see what they are doing is working. I am waiting for a detailed memo from them telling us what they have been doing and what they are going to do moving forward. 4. Implement Pilot Bio-Char Program: Staff will research and implement a pilot bio-char program to use wildfire mitigation materials and organic yard wastes to create bio-char that can be used as a soil amendment. Currently staff is researching topics with a high emphasis on safety measures. Findings will be shared with the Town Manager and implemented this fall. We are currently looking for flower beds where this can be used within the Town of Avon, especially flower beds that are going to be freshly planted. 5. Install Outdoor Music Equipment: Staff will install outdoor music equipment near the Avon Recreation Center and by the Avon playground in spring, 2021. Staff has installed all the outdoor music equipment pieces. Completed. SECOND QUARTER UPDATE: RECREATION 1. Facilitate Health and Recreation Committee input on Recreation Questions Community Survey: Staff will prepare questions for the Community Survey related to Health and Recreation and will submit the questions for review and input by the Health and Recreation Committee. All questions were reviewed and finalized for the distribution of the community survey. 2. Implement Covid-19 Public Health Orders as Amended: Staff will continue to implement COVID- 19 Public Health Orders as appropriate. The recreation center has transitioned out of all COVID- 19 policies and procedures as of Sunday, June 20. Reservations are no longer required in any area of the facility, but two lap swimming lanes are available for reservation Monday-Friday, between 11:30 AM and 4:00 PM. 3. Develop Landscaping Plan to Enhance Outside Appearance of the Recreation Center: Staff will develop a landscape plan to improve the outdoor appearance of the Avon Recreation Center. Project moved to early third quarter to allow Public Works to finish the busy summer season schedule. 4. Update White Water Park Signage: Staff will review and assess current signage. Signage will be updated and increased in the area. Proofs of new signage have been drafted and will work with staff to finalize and implement by the end of July. Page 16 of 20 5. Organize Cardboard Boat Regatta: Staff will collaborate with Special Events Department to provide this race during the Summer’s End event over Labor Day weekend. Staff is currently planning the event with the Special Events team. 6. Replaster Slide and Leisure Pools, Repair Jacuzzi Leak: Staff will oversee and implement re- plaster the middle leisure pools with Diamond Brite finish and will complete jacuzzi leak repairs. Staff is finalizing scope of work to and replaster the hot tub, leisure pools and lap pool, repair hot tub leak and repair several sections of the pool deck concrete and trench drains. 7. Execute Nottingham Lake winter Ice Program: Staff will execute the opening of Lake Nottingham for public ice skating in 2021. Completed. Offered skating seven days per week January 1, through February 28, 2021. Staff will finalize 2021-2022 season dates transitioning into the Fall. 8. Expand Adult Programs: Staff will develop plans to increase adult programs for the Fall/Winter (September-December) program cycle. Staff is currently finalizing program offerings for the Fall/Winter 2021 program cycle. Programs will include: adult drop-in sports, adult sports leagues and senior programming through Eagle County Healthy Aging. 9. Enhance Open Water Swim Championships with CASE: Staff will seek to enhance the Open Water Swim Championships, will seek to graduate six senior swimmers to collegiate level swimming, and will apply for USA Swimming Foundation grant to increase subsidized swim programs. Staff will organize a collaborative meeting in July to continue discussions with the Special Events Team. The meet is in under review for approval and sanction through USA Swimming and United States Masters Swimming (USMS). 10. Provide Recreational Input for Nottingham Park Improvements: Staff will solicit input from the Health and Recreation Committee and Community Development Department on Nottingham Park Improvements. August 2021 agenda will include written report and staff presentation for a discussion on park improvements. 11. Improve Trash and Recycling Aesthetics and Function: Staff will coordinate with capital improvements and public works to address trash receptacles outside Recreation Center to improve the outdoor appearance of the Recreation Center on the southeast side of the building. Recreation center trash, recycling and compost receptacles have been removed from the exterior of the building. Staff and J&J Company Services are removing refuse from the building daily to the Public Works garage receptacles. 12. Yoga Studio Bathroom to Kitchen Conversion: Staff will propose and oversee a kitchen remodel in the yoga studio to enhance community functionality, including senior programs. Project is scheduled for completion in October 2021. Design and scope of work is being finalized with community partners and Engineering Department. 13. Develop Recreation Department Patron Survey: Staff will collaborate with Community Development and the Health and Recreation committee to form a patron survey to gauge the Recreational needs, interests, and desires of the community. Project has been introduced to Community Development and will be discussed at the August 2021 Health and Recreation committee meeting. Page 17 of 20 SECOND QUARTER UPDATE: POLICE 1. Firearms Training Simulator: Staff will implement the Firearms Training Simulator at the Avon Police Department in partnership with Eagle County Sheriff’s Department and will seek to offer simulator training to other police departments in Eagle County. Firearms training simulator has been fully installed. Planning to have a soft opening with Sheriff Van Beek. Sgt. Dammen has reached out to ECSO to train instructors but delay on their end. Otherwise, simulator ready to go for internal training. Offered show and tell Avon Town Council members at their convenience to come and interact on the simulator. Completed. 2. Implement Requirements of HB 217: Staff will implement procedures and acquisition of equipment as required by House Bill 217, which mandated additional minimum standards for police departments in Colorado. Staff has implemented procedures and acquisition of equipment as required by House Bill 217, which mandated additional minimum standards for police departments in Colorado. Completed. 3. Analysis of Individually Assigned Take-home Vehicles: Staff will prepare a comprehensive analysis of the cost and benefits of individually assigned take-home vehicles. Staff prepared a comprehensive analysis of the cost and benefits of individually assigned take-home vehicles. Report was presented to Town Council. Completed. 4. Incorporate Designated Comparator Communities into Annual Report: Staff will incorporate our primary comparator communities into the annual Police Department Report. Staff prepared a report incorporating our primary comparator communities into the annual Police Department Report. Report was presented to Town Council with Annual report on June 22. Completed. 5. Review of ATV Use and Laws for Wildridge Roads: Staff will prepare a review of existing laws for Wildridge Road and a review of ATV laws and practices in our peer communities. Staff prepared a review of existing laws for Wildridge Road and a review of ATV laws and practices in our peer communities. Ordinance was passed and will begin enactment/ enforcement on June 24. Completed. 6. Adopt Updated Model Traffic Code: Staff will present adoption of the latest version of the Model Traffic Code. Staff presented an adoption of the latest version of the Model Traffic Code. Passed at second reading on June 22. Completed. Page 18 of 20 SECOND QUARTER UPDATE: MOBILITY 1. Support Regional Transit Optimization Plan Efforts: Staff will continue to support efforts to research enhance regional transportation in 2021. Town Manager Eric Heil has been leading the focus group (Eagle County, Beaver Creek, Town of Vail, Town of Eagle, Business Leaders) Efforts: a. Update Employer/Employee Survey. b. Joint effort to operate a 2021-2022 Skier Shuttle between Vail/EagleVail/Avon/Beaver Creek Village. c. Pursue a CDOT Planning Grant in support of a Regional Transit Authority option. 2. Update and Prepare Avon Parking Management Plan: Staff will update Avon’s Parking Management Plan and will present plans for implementation of paid parking for such time as when Council deems paid parking is appropriate. Staff is compiling information on existing public parking, signage and enforcement and is researching paid-parking options. A Council work session to present information is scheduled for Aug 10, 2021. 3. Research E-Bike and other Regional Bike Share Programs: Staff will research potential E-Bike programs and participation with regional bike share programs. The joint CDOT Can Do Colorado eBike Bikeshare Pilot Program Grant request with the Town of Vail was not successful. Outreach to local bikeshare is completed. Partnership options for 2022, including proposed budget line items, will be presented at the Council budget retreat on September 24, 2021. 4. Implement Electric Buses into the Avon Transit Fleet: Staff will oversee the acquisition and establishment of two new electric busses into Avon’s Transit Fleet, including required electrical upgrades and determining appropriate routes and scheduling for use of electric busses. The bus build is complete. Current scheduled delivery date is February 2022. The Charging System at the Avon Regional Transportation Facility (ARTF) will be upgraded this summer. Training and route testing will take approximately two months after delivery. 5. Federal Transit Authority Triannual Review: Staff will prepare and oversee the triannual review of the Avon Regional Transit Facility. The 2020 National Transit Database (NTD) Report was submitted to Federal Transit Administration (FTA). The Title VI plan (Civil Rights Act of 1964) has been updated, submitted, and approved by CDOT. CDOT Site inspection is to be determined. 6. US 6 Pedestrian Crossing Solution: Staff will continue to pursue pedestrian crossing improvements for US Highway 6 between Avon Road and Stonebridge. The Council Work Session Page 19 of 20 on April 27, 2021, with Legislators, CDOT, Eagle County, and EagleVail decided to pursue the CDOT Revitalizing Main Street grant to construct a roundabout at Stonebridge Bridge Dr and slow the prevailing speed on US6 to permit pedestrian crossings at transit stops. Staff submitted a grant application for the round-about at Stone Bridge and US Highway 6 intersection and three pedestrian crossings for US Highway 6. The “Revitalizing Main Street” grant award announcement is scheduled for July 2021. Next steps will be determined once we receive news of the grant award. 7. Create Transit Plan for the Village (at Avon): Staff will create a transit plan for the Village (at Avon) that is comparable to the transit service provide in the West Town Center and East Town Center areas. Staff is preparing the Transit Plan for the Village (at Avon). The presentation to the Council will be scheduled for the 3rd Quarter, 2021. 8. Tennessee Pass Railroad Project: Staff will participate in an Eagle County based regional group to research the Federal and State approval process for re-activating the Union Pacific Railroad rail line through Eagle County, to solicit input from the Avon community, and to determine appropriate issues, policies and positions for the Avon community. The Surface Transportation Board (STB) denied Colorado Midland and Pacific Rail Company’s (CMPC) request to operate train service through the expedited Class Exemption process due to the complexity of their proposal and the required environmental impact review. Staff will continue to look for opportunities to use the UPRR ROW for the benefit of Avon citizens. SECOND QUARTER UPDATE: FLEET 1. Develop Plan to Balance Expenses with Revenues by End of 2022: Staff will continue efforts to balance operational revenues with expenses in the Fleet Department and will establish a plan to achieve break-even financial status by the end of 2022 (i.e. for the 2023 budget). Staff is reviewing expenses and revenues along with implications for potential reorganization or merging with another Department to achieve operation cost savings. Fleet Staff is also exploring opportunities to enhance Avon’s third-party customer base. Fleet Staff has contacted all existing customers to assure our customers of our commitment to quality service. Fleet has experienced an increase in Beaver Creek maintenance requests and is currently in discussions to provide fleet maintenance services for two other public entities in our immediate area. 2. Update Vehicle/Equipment Replacement Fund: Staff will work with the Finance Department to update the vehicle and equipment replacement fund to reflect current conditions. Staff expects to update the vehicle and equipment replacement fund in the 2nd Quarter prior to the start of the annual budget process. This work has been started and expected to be completed in July. Page 20 of 20 The updates will improve the format and presentation of information so that it includes all vehicles owned by Avon and provides additional description on each vehicle and piece of equipment. Fleet is working with all Department to identify hold-over vehicles which are not needed and can be disposed and which vehicles need to be recognized as part of the fleet and included in the budget for replacement purposes. 3. Track and Update Vehicle Emissions: Staff will continue to track and update vehicle emissions from Avon’s vehicle fleet. Staff is reviewing and updating vehicle emissions information as well as reviewing vehicle purchasing guidelines that incorporate review of emissions. Information is scheduled to be presented to Council by the end of the 2nd Quarter. Fleet staff has developed a tracking spreadsheet and is compiling information for past years. Information for past years is not complete and not accurate due to past practice of not entering accurate vehicle mileage when fueling. Fleet has implemented procedures at the Avon fuel pump to require all vehicle users to enter mileage when fueling so that we will have an accurate data base going forward of fuel used per mileage. 970-748-4118 gpadilla@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Gary Padilla, Public Works Director RE: Musical Instruments DATE: July 8, 2021 SUMMARY The Town has been interested in installing some outdoor musical equipment since 2015. With limited events due to Public Health orders, both Council and CASE Committee directed staff to install the musical instruments. This is a written report and no Council directions is needed. BACKGROUND: A written report to council on May 13, 2020 by Charise Bishop explaining which companies they were being purchased from and locations of installations. The Public Works staff has installed 3 of the 4 musical instruments thus far and the fourth instrument is being installed today. FREENOTES FLOWERS: Freenotes flowers have been installed near the West entrance of the Avon Recreation Center. See attached photo THUNDER DRUMS: Nature’s Instruments specialize in wooden outdoor instruments, they use sustainably source wood and they use some metal pieces. This musical instrument consists of three Thunder drums which are being installed today and being installed south of the playground at Harry A. Nottingham Park (no photo at this time). SOARING AMADINDA: Soaring Amadinda has been installed East of the Harry A. Nottingham Park public restroom in the kiddie playground. See attached photo. ARIA XYLOPHONE: Aria Xylophone has been installed on the south side of the between the recreation center and library near the hot tub window. See attached phot 970-748-4446 mlabagh@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Michael Labagh, Interim Recreation Director Eva Wilson, Mobility Director Greg Daly, Chief of Police RE: Recreation Center Parking Status Update DATE: July 2, 2021 SUMMARY: Staff have received a significant increase in complaints regarding parking at the recreation center and surrounding areas. BACKGROUND: Recreation center staff and patrons have observed increased parking in the recreation center lot by non-patrons. We believe that this overflow park parking is influenced by the safety closure of parking on West Beaver Creek Boulevard as well as from the Old Town Hall demolition project extension. There are 361 available parking spaces in the surrounding area: • Lake Street: 38 Parking Spaces – All-day • Recreation Center: 80 parking Spaces – 3 hours • Old Town Hall/Old Police: 85 spaces – All-day (currently impacted by demolition) • W Benchmark Rd: 35 parking spaces – 3 hours • New Town Hall: 37 parking spaces – 2 hours • Avon Elementary School: 74 parking spaces – All-day • Lot 16/W Beaver Creek Blvd: 12 parking spaces (2 handicap accessible) - 2 hours 8 parking spaces – 10 minutes - Drop-off only ANALYSIS: Enforcement: The Police Department strives to educate the community through their enforcement practices. Currently, officers will add a parking violation warning to vehicles for all first offenders and document their license plate with dispatch. For a second offense parking violation, a ticket is issued for that vehicle. A second Community Response Officer started working for the town on June 27. This employee will be fully trained and able to work independently beginning the week of July 18. Their schedule will be overlapping with the Community Response Officer Supervisor to allow for increased oversight throughout the entire Harry A. Nottingham Park corridor. Mobility Planning: Creating a Parking Management Plan is part of the Mobility Department’s 2021 goals and Council should expect an update this Fall. Community Education: Signage regarding parking limitations is posted in each surrounding area. Staff is drafting updated signage for the entrances to Harry A. Nottingham Park to include more parking information. Sandwich board signs have been added to the recreation center parking lots reiterating the 3- hour time limit. Staff will work with the Communications and Marketing Manager to ensure all avenues are taken to educate the community and its visitors. Page 2 of 2 RECOMMENDATION: Maintain existing enforcement policies, increase signage to improve community education, increase communications regarding events and parking impacts and continue to address all parking concerns on a rolling basis. TOWN MANAGER’S COMMENTS: Town has developed a substantial amount of public parking for the West Town Center Core and Harry A. Nottingham Park and Civic Center area which does exceed the parking required by our civic facilities in accordance with the Town’s Development Code. The impacts and restrictions of the old Town Hall demolition project can be expected to continue through the construction phase through the entirety of next summer. We do not have effective enforcement with seasonal Community Response Officers. Effective solutions for parking management will involve implementing paid parking (after the first two hours that are free) with parking kiosks. Council may also want to revisit this fall proceeding with parking improvements on the north side of West Beaver Creek Boulevard next spring as Council contemplated in prior years. I do not foresee the construction of parking structures as a viable solution because they are very expensive to build, maintain and operate and it is not likely that a parking structure would generate revenues that could support this cost. Thank you, Michael, Eva, and Greg AVON PLANNING AND ZONING COMMISSION MEETING ABSTRACT TUESDAY, JUNE 29, 2020 1. CALL TO ORDER AND ROLL CALL Chairperson Jared Barnes called the meeting to order at 5:09 p.m. A roll call was taken, and Planning Commission members present were Steve Nusbaum, Donna Lang, Trevor MacAllister, and Sara Lanious. Anthony Sekinger and Marty Golembiewski attended remotely. Also present were Town Planner David McWilliams, Planning Director Matt Pielsticker, and Town Manager Eric Heil. 2. APPROVAL OF AGENDA Action: Commissioner Lang motioned to approve the agenda. Commissioner Barnes seconded the motion and it carried unanimously 7-0. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Action: No conflicts were disclosed. 4. BUSINESS ITEMS 4.1 AVON COMMUNITY HOUSING PLAN - WORK SESSION – REVIEW AVON COMMUNITY HOUSING PLAN AMENDMENTS IN ADVANCE OF JULY 20 PUBLIC HEARING (PLANNING DIRECTOR MATT PIELSTICKER). LINK Action: Commissioners commented on various housing programs and language modifications to be presented during a public hearing. 5. CONSENT AGENDA 5.1 APPROVAL OF MINUTES FROM JUNE 15, 2021 PZC MEETING 5.2 4540 NOTTINGHAM ROAD – NEW DUPLEX – MJR21005 5.3 5743 WILDRIDGE ROAD – REMODEL – MJR21006 6. STAFF UPDATES 7. ADJOURN 8. ADJOURN The meeting was adjourned at 6:33 pm. These meeting notes 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. RESPECTFULLY SUBMITTED: David McWilliams, Town Planner MEMORANDUM TO: Board of Directors FROM: Beth Doliboa, District Administrator DATE: July 7, 2021 RE: Summary of Authority’s June 24, 2021, Board Meeting The following is a summary of items discussed at the June 24, 2021, Authority Board Meeting: Board members present and acting were Chair George Gregory, Vice-Chair Sarah Smith Hymes, Secretary Kim Bell Williams, Treasurer Geoff Dreyer, Pam Elsner, and Mick Woodworth. Introductions Election of Authority representative for EPRC New employees were introduced, including Sarah Crawford, the new Communications Relations Specialist, and Sally Ward the new GIS Intern. The board unanimously reappointed George Gregory to serve as the Authority’s representative on the Eagle Park Reservoir Company Board of Directors. Drought Update Len Wright updated on current drought conditions. Storage in Black Lakes is 6” from full, and Eagle Park Reservoir is 105-acre feet from full. Diane Johnson and David Norris discussed direct customer outreach, including letters sent to customers using water in Tiers 4 and 5 and the process for driving change in water use behavior. General Manager Information Items Linn Brooks discussed the previous day’s in-person staff BBQ for District employees. District staff appreciates the support from directors through the pandemic. Linn suggested moving the Eagle Park Reservoir Company meetings to avoid having the meetings on the same day as the Authority and District meetings. Lead and Copper Rule Update Kailey Rosema presented on the Lead and Copper Rule compliance program and the Optimal Corrosion Control Treatment Evaluation done summer of 2020. Construction Materials Update Jeff Schneider provided a memo on construction cost and market update. Construction material costs have risen considerably since the pandemic began. Authority Water Rights Report Glenn Porzak provided a draft report on the Authority’s water rights. 970.748.4004 eric@avon.org TO: Honorable Mayor Smith Hymes and Council FROM: Eric Heil, Town Manager RE: Town Manager Update DATE: July 12, 2021 SUMMARY: The Report provides an update to Council on pending activities. I will not be able to attend the July 13, 2021 Council meeting due to a conflict with family activities. Recall Appeal: Council has a discussion scheduled at the July 13, 2021 regular Council meeting regarding the Eagle County District Court Rule on the Recall Petition. The Town filed a Notice of Appeal and a Motion to Stay Execution of Judgment on June 28, 2021, which moved the District Court to “Stay” its order to conduct the Recall Election. The Avon Recall Committee filed a Response to Motion to Stay Execution of Judgement on July 6, 2021 which opposes any “Stay” of the District Court order to conduct the Recall Election. The Town filed a Reply to Response on July 9, 2021. Procedurally, at this point, the District Court Order to conduct the Recall Election is in effect pending resolution of the Motion to Stay. I have directed Town Clerk Brenda Torres to review the Recall Election procedures and proceed with preparing for a Recall Election. Municipal recall election procedures state that if a regular election is to be held within one hundred eighty days from date of submission of a recall petition by the Town Clerk to the Town Council then the recall election must be held on the regular election date, which is November 2, 2021 this fall. All motions have been filed by the Town and the Recall Committee with regard to the Motion to Stay the District Court Order to proceed to a recall election. Due to the current point in this process, I suggest and recommend to Council that no action is needed to reconsider the Council decision to file an appeal at this time. The Town is required to proceed to a recall election right now. If the District Court rules against the Town’s Motion to Stay then the Town will have to proceed to the recall election or decide if it wants to file a Motion to Stay with the Colorado Appellate Court. If the District rules in the Town’s favor to stay the recall election to allow the appeal to be considered, then that is an indication that District Court believes there is merit in the Town’s position and argument. For these reasons I don’t see any benefit to reconsidering the Council’s decision to file an appeal or benefit to pre-emptively withdrawing the appeal before the District Court rules on the Town’s Motion to Stay. I further recommend (and will direct) that the Town Clerk provide an outline of the recall election process for the next Council meeting on August 10, 2021. Harry A. Nottingham Park Planning: Town is in the process of completing or planning significant improvements throughout Harry A. Nottingham Park, include the West Nottingham Park landscape improvements, North Nottingham Park restrooms, and East Nottingham Park redevelopment of the Old Town Hall site. Council expressed interest in revisiting the location of the SUP Co operation. I recommend that this is a good time to conduct a comprehensive review of Nottingham Park and develop a “punch list” of other improvements and repairs that would complete the park improvement plans. Staff is developing a running list of recognized areas for repair or potential areas for additional improvements. Staff is scheduling a 2 hour site walk with the Avon Planning and Zoning Commission for Tuesday, August 3, 2021 to walk the entirety of Nottingham Park. We will post the list of other ideas on Engage Avon. Council members are welcome to provide any and all comments on Engage Avon, or via Email to me and Matt Pielsticker as well as schedule an individual walk around Nottingham Park. Page 2 of 3 Regional Transit Planning : A group meeting is scheduled for Tuesday, July 20, 2021 at 8:30 a.m. at the Avon Town Hall Council Chambers to present ideas for the formation of a Regional Transit Authority. The ECO Transit board, Eagle Air Alliance Board, and the Ad Hoc Regional Transit Optimization Committee. The formation of a Regional Transit Authority is intended to enable improved transit service throughout the Eagle River valley area. Specific ideas include the operation of a more frequent and free transit route between Beaver Creek, Avon and Vail; the commencement of a downtown commuter loop between Eagle and Gypsum; and the assumption of Eagle Air Alliance activities with a permanent funding source. Representatives of Avon, Beaver Creek, ECO and Vail transits met last week to discuss a pilot bus route this winter to provide frequent and fare free connections between Beaver Creek, Avon and Vail. We are collectively working on details and costs. One challenge that was recognized was the ability to hire additional bus drivers to run this route, which may be an increase of 4-5 full-time drivers. I believe Avon is in a position to facilitate a solution with the use of the Old Fire Station for transit driver housing. Please see the next update. Old Fire Station Reuse: There is an immediate need for housing across all economic ranges and throughout all employment sectors. As a solution to facilitate and support regional transit, I recommend that Avon proceed with work to use the Old Fire Station for dormitory style housing for transit drivers. In order to meet building code requirements for residential use, a second floor stairway for a second emergency egress must be installed and additional fire suppression on the first floor must be installed. The estimated cost is $100,000 for these improvements. I propose that Avon plan to use the Old Fire Station for the next three years principally, if not exclusively, for transit drivers for Avon, ECO, and Beaver Creek or Vail and that Avon’s leasing is directly with those entities and not with individuals. More information will be presented to Council at the August 10, 2021 regular Council meeting. Swift Gulch Housing: Staff is proceeding with a Request for Qualifications for architectural and design firms to conduct initial site planning for a Swift Gulch Housing project. I am also in discussions with potential public partners who may be able to contribute additional funding to construct a larger project more quickly. As proposed, housing development on this site would be Town owned for public employees (Town of Avon and other local governments). Tract Y Community Housing Development: Staff met with the owners of Tract Y and representatives of Eagle County and the Town of Vail to discuss the potential to construct 52-54 dead restricted duplexes and townhomes. This development is contemplated to be all 3 bedroom or larger units with garages that would provide ownership opportunities for family sized housing. The project would require significant public subsidy (probably greater than $5 million) and would be eligible for the tax and fee waivers for Community Housing development as set forth in the Town’s municipal code. Staff is working with private and public partners to develop more details. An update or specific proposal may come to Council as early as late August or September. Special Events: Council members have provided comments as observations or suggestions on Special Events. I welcome any and all comments related to Special Events. We will do a de-brief and season review with CASE and Council in the fall. I work with Danita in between events; however, during events my practice is defer and delegate 100% of Special Events to Danita and her team. Meaning that I believe it is more disruptive, confusing and counter productive for me to provide directives or orders during events. That said, I am available to Danita and her team to assist in any way I can if matters arise that require immediate attention. Page 3 of 3 I revisited the alcohol beverage prices with Danita as well as received some Council comments that the alcohol beverages prices were too high. Danita provided information that Avon’s beverage pricing was comparable with Ford Amphitheater. I provided direction to reduce prices effective for the next AvonLIVE! to $4 for Coors, $5 for craft/import beers, $6 for hard seltzers, $8 for wine and spiked lemonade, and $1 for canned water products. I believe this pricing will be more accommodating for a wider range of the Avon community and will better reflect AvonLIVE! and SunsetLIVE! as community oriented events rather than resort-visitor oriented events. Union Pacific Railroad: I am participating in meetings to discuss potential GOCO funding to support trail use on the Union Pacific Railroad right-of-way. More information will follow after a meeting this week. Construction Contracts: Paul, Justin and I plan to revisit and refresh our construction contracts late this summer and then bring an overview of Avon’s form construction contracts to Council this fall. The construction contracts were last updated approximately a decade ago. Thank you, Eric