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TC Packet 08-24-2021_______________________________________________________________________________ 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, August 24, 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 AVON TOWN COUNCIL PUBLIC MEETING BEGINS AT 5:00 PM 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 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. Work Session: 5-year CIP (Town Engineer Justin Hildreth) (60 Minutes) 5:05 5.2. Public Hearing: Resolution 21-19, amending the 2021 Town of Avon Budget (Assistant Town Manager and Finance Director Scott Wright) (45 minutes) 6:05 5.3. Resolution 21-20: Short-Term Rental Tax Ballot Question (Town Attorney Paul Wisor and Town Manager Eric Heil) (30 Minutes) 6:50 5.4. Work Session: Regional Transportation Authority Formation Committee (Town Manager Eric Heil) (30 Minutes) 7:20 5.5. Notice of Award - Mikaela Way & Town Hall Asphalt Overlay (Town Engineer Justin Hildreth) (5 Minutes) 7:50 5.6. Notice of Award - Phase 2 of Harry A. Nottingham Park Lighting Project (Town Engineer Justin Hildreth) (5 Minutes) 7:55 6. MINUTES 6.1. Approval of August 10, 2021 Regular Council Meeting Minutes (Town Clerk Brenda Torres) (5 Minutes) 8:00 7. WRITTEN REPORTS 7.1. Monthly Financials (Senior Accountant Joel McCracken) 7.2. Eagle County Regional Transportation Authority August 11, 2021 Meeting Minutes (Mayor Pro Tem Amy Phillips) 7.3. Benefit Comparison (Manager of HR & Risk Management, Karyne Spadi) 7.4. August 17th Planning and Zoning Commission Meeting Abstract (Planner David McWilliams) ** Indicates topic will be discussed at future agenda’s 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES (15 MINUTES) 8:05 9. ADJOURN 8:20 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. _______________________________________________________________________________ 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. FUTURE AGENDAS SEPTEMBER 14 o Presentation: Community Survey Results o Work Session: Review of Summer Operations of Harry A. Nottingham Park and Location of SUP Co. o Recycling Update (Walking Mountains - Nina Waysdorf) o Written Report: Village at Avon Status Update SEPTEMBER 24 o All Day Council Budget Retreat SEPTEMBER 28 o Regular Council meeting SEPTEMBER 30 o Council Retreat to Discuss Conduct and Behavior Expectations OCTOBER 12 o Regular Council meeting including joint work session with CASE 970.748.4045 jhildreth@avon.org 970.748.4055 swright@avon.org TO: Honorable Mayor Smith Hymes and Council FROM: Town Engineer Justin Hildreth and Finance Director Scott Wright RE: Capital Improvements Projects DATE: August 20, 2021 SUMMARY: This is the first of two work sessions to review the long-range Capital Improvements Projects Plan (“CIP Plan”). The second work session will occur during the September 24 Council budget retreat. This report describes the available revenues, CIP Plan policies, proposed projects and options for Council. The focus of the memo and presentation will be on items either not discussed previously or are significantly different then previous budgets. REQUESTED COUNCIL DIRECTION: This is the initial work session on updating the Town’s five-year CIP Plan. There are many new projects, including several projects that require planning and design before there is a more accurate estimate of project costs. Any Council questions or requests for more detailed information are welcome. Staff presentation will focus on changes to the 2021 CIP list. Staff will be prepared to discuss any project on the proposed 2022 5-year CIP Plan list. Ultimately, Council direction is desired to prioritize projects in the CIP Plan as part of the complete 2022 Budget. AVAILABLE REVENUE: Council has the following identified revenue sources that can be used for capital improvement projects in 2022: Real Estate Transfer Tax ($3.3M base level less debt service and engineering) $1,753,065 Real Estate Transfer Tax interest earnings $25,000 Asphalt Overlay Account (Village at Avon Roads) $250,000 Water Fund $62,500 Community Enhancement Funds $120,000 Avon Urban Renewal Authority $750,000 TOTAL Projected Revenues $2,960,565 Projected Fund Balance (12/13/2021, Not Including a $1,000,000 reserve policy) $6,719,258 TOTAL AVAILABLE FUNDS for 2021 $9,679,823 Proposed CIP Expenditures in 2021 $5,5,78,938 CIP Policies and Restrictions on Various Fund Sources: The following policies have been used for the CIP fund: • Town strives to maintain a minimum $1,000,000 fund balance in the CIP fund for emergencies and unforeseen capital improvement expenditures. Page 2 of 6 • The projected RETT revenue base of $3.3 million is conservative. The projected revenue was increased from $2.5 million used in previous budgets. Revenues which exceed the annual budget projection carry-over in the fund balance to the next budget year. • The Avon Urban Renewal Area currently has $750,000 available for capital improvements within the West Avon Investment Plan area (west of Avon Road, north of Eagle River, east of Avon Elementary School, and north to the Medical office building on north side of I-70. The West Avon Urban Renewal Plan broadly authorizes expenditure of URA funds on Town properties and Town public infrastructure in this area. Capital Projects: The cost of capital improvement projects is most effectively reduced with thorough planning and design prior to bidding for construction. Due to the construction season cycles and the high demand for construction work, an effective process to manage costs requires planning and design in the first year for a new project, and then bidding and construction the following year. SPECIFIC CAPITAL IMPROVEMENT PROJECTS: Resurface Pickleball and Tennis Courts: This project was budgeted for $100,000 in 2021 as a resurfacing project. This project has evolved as we learn more about constructing a facility that best satisfies the long-term needs of a fast-growing community of pickleball and tennis 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 consulted with several specialized installers At this time, it appears that making a long-term investment in building a post tensioned concrete pad, which will last 30+ years without significant cracking would provide the best value and safest courts. To construct over the existing tennis courts and pickleball courts will require a budget of $682,500. Staff will consult with the Health and Recreation Committee and community partners to determine the final pickleball/tennis court layout. Many communities use a painted, textured hard surface which cost approximately $10,000 per pickleball court and several communities have transitioned to a cushioned surface which cost approximately $14,000 per pickleball court. The hard surfaces can last 10 years while the soft ones last about half as long. Page 3 of 6 Photo: Eagle-Vail Pickleball Courts Harry A. Nottingham Park North Restrooms: Public restrooms are proposed near the north parking lot, also known as Lot 16. The restroom location is recommended because of the proximity of water and sewer mains. Locations closer to the beach will significantly increase the cost since the utilities will have to be extended from the parking lot. $50,000 is proposed for design in 2021 and $450,000 for construction occurring in 2022. This is a preliminary conceptual estimate and will be refined during the scoping and design process. Photo: General Location of North Restrooms Page 4 of 6 Harry. A. Nottingham Park East Restrooms: Council has provided direction that additional public restrooms for Nottingham Park are desired to support events of 1,500 to 2,000 persons. The location of the new public restrooms would be on the former Town Hall site. This project also includes improvements to the existing patio on the east side of the old Town Hall and replacement and upgrade of the retaining/seating wall along the recreation path. The project will be designed in 2021 for 2022/2023 construction. The total project budget is $2,850,000 Figure: Harry A. Nottingham Park East Restrooms Site Location Powerline Undergrounding: The power line on the south side of Nottingham Park is planned to be buried as part of the redevelopment of the old Town Hall site. The project will be funded from the Holy Cross Community Enhancement Fund and will occur in conjunction with the public restroom project in 2022. Page 5 of 6 Bus Shelters: Shelters are proposed for six bus stops that do not currently have shelters. The shelters will match the design of the Comfort Inn and City Market bus stops. A shelter at Metcalf Road that was destroyed last winter is also included. Budget is $260,000. Figure: Bus Shelter Proposed for 6 Stops Without Shelters 351 West Benchmark Road Building (Former Fire Station): Staff recommends that the 351 West Benchmark Road building be demolished. An asbestos and hazardous waste assessment is currently in progress. The building was formerly the Avon Water Treatment Plant in the 1980’s and as a result there is a large, 20-FT deep concrete vault below the building that also must be removed. Preliminary budget estimates to demolish the building is $750,000. The budget will be refined upon receipt of the asbestos and hazardous waste survey. An additional $90,000 is budgeted to plan for future uses of the site. Photo: 351 West Benchmark Road Building Page 6 of 6 Street Improvements: The 2022 street improvement program includes paving West Beaver Creek Blvd from US6 to the railroad and replacement of sidewalks adjacent to Avon Elementary School. Fawcett Road is recommended for paving and bus stop reconstruction. The total budget for these 2 projects is $853,000. Stonebridge and US 6 Roundabout. The Town recently received a $2,000,000 grant from the Colorado Department of Transportation for the construction of a roundabout at Stonebridge Drive and US 6. Eagle County has agreed to contribute $200,000 to the project. The project will enhance pedestrian and vehicle safety at the intersection. The total project budget is $2,500,000 and construction is planned to be completed by 2023. Figure: Stonebridge Drive and US6 Roundabout Location Avon Road Roundabouts: The five roundabouts on Avon Road were constructed in 1998 and the concrete paver aprons have been damaged by trucks over the years. The irrigation systems are past their useful life and the landscaping is due for an update. In 2022, the landscaping repairs and aprons will be designed, and an implementation program developed. The current budget is $150,000/year for the next 5- years and will be refined once the design is complete. GIS Implementation: A geographic information system (GIS) is a useful tool that combines mapping with asset management. In 2021, the street lights and irrigation system were incorporated into the Town’s new GIS program. Staff is recommending that the Town’s drainage infrastructure including ditches, culverts, storm sewer and ponds be incorporated into the system along with transit infrastructure. The 2022 project budget is $75,000. REQUESTED DIRECTION: Council direction is requested on this list of Capital Improvements Projects and whether there are other items that should be included on the list. Thank you, Justin and Scott ATTACHMENT A: 5-Year Capital Improvements Project Inventory ATTACHMENT B: Project Descriptions CAPITAL PROJECTS FUND 5-YEAR PLAN SUMMARY Current Proposed Revised Supplemental Proposed Audited Budget Amendment #2 Budget 2020 2021 2021 2022 2023 2024 2025 2026 REVENUES Real Estate Transfer Tax: Base Level 5,976,990$ 3,300,000$ 3,300,000$ 3,300,000$ 3,300,000$ 3,300,000$ 3,300,000$ 3,300,000$ Penalties and Interest 21,960 - - - - - - - Interest Earnings 92,480 50,000 50,000 25,000 35,000 70,000 105,000 150,000 Intergovernmental: Federal/State: DOLA - Broadband Grant - 25,000 25,000 - - - - - 2020 Charge Ahead Grant (Level 3 DC Fast EV Charging Statio 35,000 - - - - - - - 2021 Charge Ahead Grant (Level 3 DC Fast EV Charging Statio - 44,000 44,000 - - - - - CDOT US Hwy 6 & Stonebridge Rd. Roundabout Grant - -- - 2,200,000 - - - Other Revenues: Nonclassified 770 - - - - - - - Total Operating Revenues 6,127,200 3,419,000 3,419,000 3,325,000 5,535,000 3,370,000 3,405,000 3,450,000 Other Sources: Transfer in from General Fund - Assigned to Village at Avon Asphalt Overlays - - - 250,000 250,000 250,000 250,000 250,000 Transfer in from the AURA - Tract G Projects 700,000 700,000 700,000 750,000 750,000 750,000 750,000 750,000 Transfer in from Community Enhancement Fund - West Avon Preserve Trail Improvements - 28,500 28,500 - - - - - - Powerline Undergrounding - 120,000 - 120,000 - - - - Transfer in from Water Fund - Nottingham-Puder Ditch Piping - - - 62,500 625,000 - - - Transfer in from Equipment Replacement Fund Pool Replastering - - 141,000 - - - - - Total Other Sources 700,000 848,500 869,500 1,182,500 1,625,000 1,000,000 1,000,000 1,000,000 Total Revenues and Sources of Funds 6,827,200$ 4,267,500$ 4,288,500$ 4,507,500$ 7,160,000$ 4,370,000$ 4,405,000$ 4,450,000$ Projected 1 ATTACHMENT A CAPITAL PROJECTS FUND 5-YEAR PLAN SUMMARY Current Proposed Revised Supplemental Proposed Audited Budget Amendment #2 Budget 2020 2021 2021 2022 2023 2024 2025 2026 Projected EXPENDITURES Capital Improvements: Facilities 490,210 2,559,863 2,566,495 2,430,000 3,119,705 - 155,000 - Land and Land Improvements 79,006 868,705 897,905 1,262,500 165,000 115,000 40,000 80,000 Roads and Streets 1,109,419 2,558,373 2,666,164 1,553,000 3,899,000 2,578,000 2,950,000 2,833,000 Water Fund Projects 289,803 285,894 285,894 137,500 625,000 - - - Communications and Technology 142,756 594,534 644,534 113,939 - - - - Debt Service: Capital Leases - 2014 US Bank, Plow Truck 26,279 26,279 26,279 26,279 - - - - - 2017 Commerce Bank, Plow Truck, Electrician Lift Truck 55,720 55,720 55,720 55,720 55,720 55,720 - - Total Expenditures 2,193,193 6,949,368 7,142,991 5,578,938 7,864,425 2,748,720 3,145,000 2,913,000 Other Uses: Operating Transfers Out - General Fund: - Engineering Department Salary and Operations 247,314 341,648 341,648 390,520 402,236 414,303 426,732 439,534 Operating Transfers Out - Debt Service Fund: - 2010 COPs (ARTF)239,363 - - - - - - - - 2014B COPS (Street Improvements)318,613 322,493 322,493 320,069 322,494 319,616 320,587 317,254 - 2016 COPS (Public Safety Bldg.)449,825 449,375 449,375 448,575 447,675 443,675 449,525 418,425 - 2020 Refunding COPs - 195,517 195,517 192,414 194,323 196,183 190,993 192,840 Operating Transfers Out - Mobility Fund: - Diesel Buses (2) - 200,000 200,000 - - - - - - Electric Buses (2) - 400,000 400,000 - - - - - Operating Transfers Out - Fleet Maintenance Fund: - 2020 COPs (Fleet Maintenance Bldg.)- 193,460 193,460 195,357 197,204 193,002 193,825 195,612 Operating Transfers Out - Equipment Replacement Fund: - Street Sweeper and Loader - 425,000 425,000 - - - - - Total Other Uses 1,255,115 2,527,493 2,527,493 1,546,935 1,563,932 1,566,779 1,581,662 1,563,665 Total Expenditures and Uses of Funds 3,448,308 9,476,861 9,670,484 7,125,873 9,428,357 4,315,499 4,726,662 4,476,665 Net Source (Use) of Funds 3,378,892 (5,209,361) (5,381,984) (2,618,373) (2,268,357) 54,501 (321,662) (26,665) Fund Balance, Beginning of Year 8,722,351 12,098,283 12,101,243 6,719,259 4,100,886 1,832,529 1,887,031 1,565,369 Fund Balance, End of Year 12,101,243$ 6,888,922$ 6,719,259$ 4,100,886$ 1,832,529$ 1,887,031$ 1,565,369$ 1,538,704$ 2 ATTACHMENT A CAPITAL PROJECTS FUND 5-YEAR PLAN SUMMARY Current Proposed Revised Supplemental Proposed Audited Budget Amendment #2 Budget 2020 2021 2021 2022 2023 2024 2025 2026 Projected Fund Balances Restricted For: Asphalt Overlay 455,210$ 455,210$ 455,210$ 455,210$ 455,210$ 455,210$ -$ -$ Assigned For: Asphalt Overlay - - - 250,000 500,000 750,000 55,210 - Tract G/URA Projects 484,108 949,108 1,099,108 1,034,108 (390,892) (640,892) (390,892) 359,108 Unassigned:. Unreserved 11,161,925 5,484,604 5,164,941 2,361,568 1,268,211 1,322,713 1,901,051 1,179,596 Total Fund Balances 12,101,243$ 6,888,922$ 6,719,259$ 4,100,886$ 1,832,529$ 1,887,031$ 1,565,369$ 1,538,704$ 3 ATTACHMENT A CAPITAL PROJECTS FUND 5-YEAR PLAN INVENTORY DETAIL Current Proposed Estimated Total Revised Supplemental Project Cost Proposed Project Audited Budget Amendment #2 To-Date Budget Project #Capital Improvement Projects Budget 2020 2021 2021 2021 2022 2023 2024 2025 2026 Facilities: General Government Facilities: 11009 Town Hall Control System 10,715$ 10,924$ -$ -$ 10,924$ -$ -$ -$ -$ -$ 11012 Tenant Finish Construction - NTH 4,774,516 22,914 - - 4,887,767 - - - - - 11020 Fiber - Pavilion to NTH 70,000 6,247 17,561 17,561 70,000 - - - - - 11021 Level 2 EV Charging Station - NTH 5,000 5,322 - - 5,322 - - - - - 11022 New Town Hall Security Upgrades 125,000 105,423 - - 105,423 - - - - - 11023 New Town Hall 2nd and 3rd Floor Updates 130,000 3,335 96,665 126,665 130,000 - - - - - Old Town Hall Site: 11019 Utility Upgrade 450,000 144,169 305,831 305,831 450,000 - - - - - 11024 Asbestos Mitigation/Demolition 643,359 1,200 523,800 642,159 643,359 - - - - - 11025 H.A. Nottingham Park - East Improvements 2,850,000 - 85,000 85,000 85,000 765,000 2,000,000 - - - 21055 Powerline Undergrounding 120,000 - 120,000 - - 120,000 - - - - Public Safety Facilities: 12006 PSF Parking Lot Canopy Design 20,000 - 20,000 20,000 20,000 - - - - - 12007 Wildridge Emergency Warning Siren 26,000 - 26,000 26,000 26,000 - - - - - Public Works Facilities Equipment / Cinder Storage - Swift Gulch or Lot 5 550,000 - - - - 50,000 500,000 - - - Fleet and Transportation Facilities: 14010 Fleet Maintenance EPDM Roof Replacement 320,000 - 300,000 20,000 20,000 - 300,000 - - - 14019 Bus Shelter - Piedmont Apartments 30,000 - 30,000 30,000 30,000 - - - - - Fleet Maintenance - HVAC / AC 25,000 - - - - 25,000 - - - - Bus Shelters (6)240,000 - - - - 240,000 - - - - Bus Shelter - Metcalf Road 20,000 - - - - 20,000 - - - - ARFT - Overhead Door Replacement 209,705 - - - - - 209,705 - - - ARTF - BAS / HVAC PM 155,000 - - - - - - - 155,000 - ARTF - Access Control 70,000 - - - - 70,000 - - - - ARTF - Roof Improvements / Snow 50,000 - - - - 50,000 - - - - Cultural and Recreational Facilities: 15018 Pavilion - Retractable Door 322,928 40,574 - - 292,769 - - - - - 15019 Pavilion - Deck Railing and Floor Replacement 425,600 95,434 330,166 330,166 425,600 - - - - - 15020 Recreation Center Weight Room Expansion 500,000 3,565 - - 460,548 - - - - - 15021 Recreation Center Locker Replacement 200,000 - 200,000 200,000 200,000 - - - - - 15023 Recreation Center HVAC Upgrade 250,000 - 250,000 250,000 250,000 - - - - - 15024 Recreation Center ADA Parking 10,000 - 10,000 10,000 10,000 - - - - - Projected 4 ATTACHMENT A CAPITAL PROJECTS FUND 5-YEAR PLAN INVENTORY DETAIL Current Proposed Estimated Total Revised Supplemental Project Cost Proposed Project Audited Budget Amendment #2 To-Date Budget Project #Capital Improvement Projects Budget 2020 2021 2021 2021 2022 2023 2024 2025 2026 Projected 15025 Metcalf Family Cabin Feasibility Analysis 20,000 - 20,000 20,000 20,000 - - - - - 15026 Recreation Center Yoga Studio Bathroom Conversion 25,000 - 25,000 25,000 25,000 - - - - - Recreation Center Pool Replastering 198,273 - - 198,273 198,273 - - - - - Recreation Center Jacuzzi Leak Repair and Pool Deck 60,000 - - 60,000 60,000 - - - - - Pavilion Ramp 100,000 - - - - 100,000 - - - - 351 Benchmark / Avon Rec Center Expansion Planning 90,000 - - - - 90,000 - - - - Other Facilities: 13013 Swift Gulch Housing Design 120,000 - 120,000 120,000 120,000 - - - - - 19005 2120 Saddle Ridge Loop (Fire Station) Improve.61,000 - 24,840 24,840 61,000 - - - - - 2120 Saddleridge - Windows 40,000 - - - - 40,000 - - - - 19006 Level 3 DC Fast EV Charging Station - Tract A 75,000 51,103 - - 51,103 - - - - - 19007 Level 2 and DC Fast EV Charging Stations - Tract A 55,000 - 55,000 55,000 55,000 - - - - - EV Charging Stations - Swift Gulch 220,000 - - - - 110,000 110,000 - - - 351 Benchmark Demolition 750,000 - - - - 750,000 - - - - Land and Land Improvements: H.A. Nottingham Park Improvements: 21053 Pickleball Court Reconstruction 325,000 - 100,000 - - 325,000 - - - - 21056 West Nottingham Park Improvements/Soccer Field 318,000 9,307 270,693 308,693 318,000 - - - - - 21058 Restrooms - Nottingham Lake Beach 500,000 - 50,000 50,000 50,000 450,000 - - - - 21059 Nottingham Park Benches 26,640 26,640 - - 26,640 - - - - - 21060 Nottingham Park Light Upgrade- Phase 2 281,200 - 190,000 281,200 281,200 - - - - - 21061 Nottingham Lake Beach Expansion 100,000 - 100,000 100,000 100,000 - - - - - Lot 16 Parking Lot Asphalt Overlay 40,000 - - - - 40,000 - - - - Nottingham Park - Irrigation Replacement Design and Plan 50,000 - - - - 50,000 - - - - Nottingham Park - Tennis Courts 357,500 - - - - 357,500 - - - - Nottingham Park - Relocate Fitness Court 100,000 - - - - - 100,000 - - - Other Park and Land Improvements: 21022 Eagle River Whitewater Park Repair 245,758 20,200 - - 235,958 - - - - - 21027 O'Neil Spur Park Improvements Design 20,000 - 18,012 18,012 20,000 - - - - - 21054 Wildland Fire Mitigation 40,000 22,859 40,000 40,000 NA 40,000 40,000 40,000 40,000 40,000 21057 O'Neil Spur Park Parking Lot Rebuild 100,000 - 100,000 100,000 100,000 - - - - - Eaglebend Park Refresh 40,000 - - - - - - - - 40,000 Saddleridge Park Refresh 100,000 - - - - - 25,000 75,000 - - 5 ATTACHMENT A CAPITAL PROJECTS FUND 5-YEAR PLAN INVENTORY DETAIL Current Proposed Estimated Total Revised Supplemental Project Cost Proposed Project Audited Budget Amendment #2 To-Date Budget Project #Capital Improvement Projects Budget 2020 2021 2021 2021 2022 2023 2024 2025 2026 Projected Roads and Streets: Streetscape Improvements: 31030 Mall Activation Elements 30,000 15,088 14,912 24,912 40,000 - - - - - 31031 Avon Rd./I70 Aesthetic Improvements 1,048,245 44,668 995,112 995,112 1,048,245 - - - - - Metcalf Road - Retaining Wall Stabilization 80,000 - - - - 80,000 - - - - Street Improvements: 32026 Retaining Wall Repairs - Nottingham & Swift Gulch Rd.150,000 - 150,000 150,000 150,000 - - - - - 32028 Yoder Ave. Asphalt Overlay 550,000 202,611 - - 206,541 - - - - - 32029 Benchmark Rd. On-Street Parking 600,000 552,940 - - 590,892 - - - - - 32031 Mikaela Way and Benchmark Rd. Asphalt Overlay 400,000 - 400,000 400,000 400,000 - - - - - 32032 Hurd Lane Intersection Improvements 20,000 - 20,000 20,000 20,000 - - - - - 32033 WB B/C Blvd - US Hwy 6 to Avon Elem.515,000 - - - - 515,000 - - - - 32034 Buck Creek Road Repairs 800,000 11,651 788,349 788,349 800,000 - - - - - 32035 Riverfront and Lake Street Repairs 450,000 - - - - - 450,000 - - - 32036 Upper Buck Creek Repairs 475,000 - - - - - - 475,000 - - 32037 Post Blvd. Repairs 1,400,000 - - - - - - - 1,400,000 - Metcalf Road Culvert Repair 300,000 - - 237,466 237,466 - - - - - US Hwy 6 & Stonebridge Rd. Roundabout 2,500,000 - - - - 300,000 2,200,000 - - - Annual Street Maintenance 33103 Eaglebend Dr. Resurfacing 225,000 189,189 - - 190,229 - - - - - 33219 Annual Guard Rail Repair 40,000 38,668 40,000 40,000 NA 40,000 40,000 40,000 40,000 40,000 Fawcett Road Asphalt overlay 138,000 - - - - 138,000 - - - - Swift Gulch Road - Buffalo Ridge Asphalt Overlay 364,000 - - - - - 364,000 - - - Swift Gulch Road - East Asphalt overlay 400,000 - - - - - - - - 400,000 Avon Road Asphalt Overlay 913,000 - - - - - - 913,000 - - Millie's Lane Asphalt Overly 56,000 - - - - - - - 56,000 - Old Trail Road Asphalt Overlay 408,000 - - - - - - - 408,000 - Avon Elem. School Sidewalk Repair 200,000 - - - - 200,000 - - - - Wildridge Road Asphalt Overlay 2,243,000 - - - - - - - - 2,243,000 Avon Road Roundabout Aprons / Landscaping Refresh 750,000 - - - - 150,000 150,000 150,000 150,000 150,000 Multi-Modal/Alternative Mobility: 34033 East and West B/C Blvd. Street Rebuild 4,025,943 2,140 - - 3,990,383 - - - - - 34039 US Hwy 6 Crosswalks 80,000 - - - - 80,000 - - - - 34040 West B/C Blvd./ Beach On-street Parking Imp.10,325 - 150,000 10,325 10,325 - - - - - 32030 Schematic Design / Final Design - W. Main Street 225,000 - - - - 50,000 175,000 - - - 6 ATTACHMENT A CAPITAL PROJECTS FUND 5-YEAR PLAN INVENTORY DETAIL Current Proposed Estimated Total Revised Supplemental Project Cost Proposed Project Audited Budget Amendment #2 To-Date Budget Project #Capital Improvement Projects Budget 2020 2021 2021 2021 2022 2023 2024 2025 2026 Projected 34041 W. Main Street Mall Improvements 1,500,000 - - - - - - 1,000,000 500,000 - Recreational Trails Program: 34043 West Avon Preserve Trail Improvements 57,000 52,464 - - 52,464 - - - - - 34042 Nottingham Park Path Replacement - 1,000 ft 520,000 - - - - - 520,000 - - - Avon Elem. School to Nottingham Lake Path Replacement 396,000 - - - - - - - 396,000 - Water Fund Projects: 21026 Nottingham Rd. Debris Flow Study and Improvements 425,000 35,831 224,866 224,866 425,000 - - - - - 21028 Avon Road Water Quality Vault Projects 315,000 253,972 61,028 61,028 315,000 - - - - - GIS Implementation - Drainage Infrastructure Layers 75,000 - - - - 75,000 - - - - Nottingham / Puder Ditch Piping 687,500 - - - - 62,500 625,000 - - - Communications and Technology e-Gov.: 81011 Broadband 125,000 - 125,000 125,000 125,000 - - - - - 81012 Fiber - CDOT Hand hold to PSF 80,000 - 80,000 80,000 80,000 - - - - - 81013 RR Bridge LED Messaging Boards 75,000 - 75,000 75,000 75,000 - - - - - 81014 Permanent Variable Message Boards (3)150,000 - 150,000 150,000 150,000 - - - - - 81015 Finance/Comm Dev./HR ERP & HRIS Systems 275,290 142,756 82,534 132,534 275,290 - - - - - 81016 Mini-split NTH Data Center 20,000 - 20,000 20,000 20,000 - - - - - 81017 Firearms Simulator 32,000 - 32,000 32,000 32,000 - - - - - 81018 Hybrid Meeting Technical Improvements 30,000 - 30,000 30,000 30,000 - - - - - Microsoft Teams Phone System Migration 38,939 - - - - 38,939 - - - - Nottingham Park Wi-Fi Access 150,000 - - - - 75,000 - - - - Total Capital Improvement Projects 41,409,436$ 2,111,194$ 6,867,369$ 7,060,992$ 19,108,721$ 5,496,939$ 7,808,705$ 2,693,000$ 3,145,000$ 2,913,000$ 7 ATTACHMENT A CAPITAL PROJECTS FUND 5-YEAR PLAN UNFUNDED / GRANT DEPENDENT / FUTURE / DEFERRED MAINTENANCE PROJECTS Estimated Project #Capital Improvement Projects Cost Notes Avon Road - Crosswalks / Seating Areas Undetermined cost. Post Blvd. - Flashing Beacons Undetermined cost. Parks Garage Access Control Undetermined cost and need. Fleet Maintenance - Wash Bay Lift Need is undertermined. Lot 5 Paving Dependent upon locations for equipment / cinder storage Regional Recreation Trails Could possible be funded by grants from Eagle County Parks Garage Fenced Area Undetermined cost and need. Swift Gulch Employee Housing $120,000 design budget is in current CIP project list. Construction cost would be funded by debt financing, grants, or both. Annex - Painting 20,000 Annex - Roof 50,000 Modular - Roof 84,413 ARTF - Painting 150,000 Nottingham Park - Basketball Courts 406,250 Unfunded Nottingham Park - Irrigation 2,100,000 $50,000 is in CIP project inventory for planning and design. Irrigation system is unfunded at this time. 8 ATTACHMENT A 2022 5-YEAR CAPITAL IMPROVEMENTS PROJECT PLAN NARRATIVE DESCRIPTIONS FACILITIES NOTTINGHAM PARK East Nottingham Park Improvements Description: Construction of public restrooms to serve events on the Main Field and Avon Pavilion are proposed for the former town hall site. The project will be planned in 2021, designed in 2022 and construction completed in 2023. The construction budget for 2022 is based on schematic plans and will be further refined once a design is approved by Council. Budget: 2021: $ 85,000 Planning 2022: $ 765,000 Design & Construction 2023 $2,000,000 Construction Powerline Undergrounding Description: Existing above ground lines on the south side of the old Town Hall site and along the south side of Nottingham Park will be buried as part of redevelopment of the old Town Hall site area. Budget: 2022: $120,000 PUBLIC WORKS FACILITIES Equipment/Cinder Covered Storage Description: Snowplows are currently stored in the bus storage area of the Mobility Building. The projected growth of Town and ECO Transit operations will expand into the storage bays where snowplows are currently stored. This project consists of non-heated covered storage for snowplows and the cinder pile where the center pile and modular building are currently located. Budget: 2022 $50,000 2023 $500,000 Fleet Maintenance Building Roof Description: The fleet roof is over 20-years old. Staff has been monitoring its condition and the roof will need to be replaced in 2023. Budget: 2023 $300,000 Fleet Maintenance Building HVAC Description: The air conditioning system in the fleet maintenance building is no longer functioning and needs to be replaced. Budget: 2022 $25,000 Bus Shelters Description: Bus shelters are proposed for six stops that currently do not have shelters. The shelter on Metcalf Road was demolished and also needs to be replaced. Budget: 2022 $260,000 ATTACHMENT B Avon Regional Transit Facility (Mobility Center) Overhead Door Replacement Description: The garage bay doors were installed in 2010 and are at the end of their life span. The increased frequency of door operation requires corresponding maintenance. This project will replace the motors, springs and rails for all 11 garage doors. Budget: 2023 $209,705 Avon Regional Transit Facility (Mobility Center) HVAC Building Automation Center Description: The building’s HVAC automation system is 10-years old and due for replacement. The new system will be tied into the same system that operates the Public Safety Facility, Town Hall and Recreation Center. It is expected several of the HVAC units will require replacement as part of the project. Budget: 2025 $155,000 Avon Regional Transit Facility (Mobility Center) Access Control System Description: The building’s access control system is 10-years old and due for replacement. The upgraded system will be tied into the Town Hall system. Budget: 2022 $70,000 Avon Regional Transit Facility (Mobility Center) Roof Improvements/Snow Mitigation Description: Snow and ice accumulate on the north side of the building, blocking the emergency exits and mechanical room. The project will include roof improvements to help mitigate the accumulation of snow and ice and improve winter access. Budget: 2022 $50,000 Harry A. Nottingham Park Pavilion Basement Ramp Description: Special events storage is located in the stage basement. The access is down a flight of stairs and is difficult to navigate when loading heavy supplies include tables, chairs and electrical equipment. The heavy supplies are currently stored in the former fire station that is scheduled to demolished. This project will remove the stairs and extend a ramp that small vehicles can drive down to unload heavy equipment. Budget: 2022 $100,000 351 West Benchmark and Recreation Center Expansion Planning Description: The former fire station located at 351 West Benchmark Road is scheduled to be demolished in 2022. There are currently conflicting and outdated visions for the site including a Town Hall and community center. The project will initiate a planning exercise for the site and parking lot. The planning exercise will identify potential uses and estimate costs. Budget: 2022 $90,000 ATTACHMENT B Saddleridge Apartments – Window Replacement Description: The Saddleridge apartment building, formerly the Wildridge Fire Station, is 40-years old and has original wood windows. The wood has weathered making it difficult to open and close many of the windows. The windows will be replaced with modern, energy efficient versions. Budget: 2022 $40,000 EV Charging Stations Description: The Town is planning to purchase several electric vehicles for the motor pool fleet. This project will install EV stations at the Public Works Facility and Recreation Center. Budget: 2022 $110,000 2023 $110,000 Former Fire Station, 351 West Benchmark Road Description: The former fire station is in poor condition and is proposed for demolition. The project includes asbestos remediation, underground tank removal, building removal and site restoration. The budget will be refined once the asbestos and hazardous materials survey is complete. Budget: 2022 $750,000 (demo) ATTACHMENT B LAND AND LAND IMPROVEMENTS Replace Pickleball and Tennis Courts Description: The pickleball and tennis courts located on the west side of Nottingham Park where built in 1992 and are in disrepair. The cracks have been filled 3 times in the last ten years, are coming back and impair the responsiveness of the pickleball courts. This new surface will be more durable, responsive and enjoyable for users. Budget: 2020 $715,325 Harry A. Nottingham Park North Restrooms Description: Restrooms are proposed in the vicinity of the beach and volleyball courts. The project is not been designed at this time so current budget is a place holder. Budget: 2022 $500,000 Harry A. Nottingham Park North Parking Lot Description: The north parking lot is in poor condition, especially the sidewalk. The sidewalk will be replaced wheelchair ramps upgraded to current standards and parking lot paved. Budget: 2022 $40,000 Harry A. Nottingham Park Irrigation System Assessment Description: The park irrigation system was originally installed 40-years ago and has been modified over the years to accommodate new projects. The system does not function properly, and components are not standardized. This project includes hiring a consultant to assess the system and recommend upgrades that will enhance system performance and improve water conservation. Budget: 2022 $50,000 Harry. A. Nottingham Park Fitness Court Description: The fitness court is currently located north of the main field and adjacent to the playground. It has become a playground feature for the local children and there is concern that children could be injured while playing on the court. Staff recommends it be relocated to the west side of Benchmark Lake, near the lower athletic field. Budget: 2023 $100,000 Wildland Fire Mitigation Description: Public Works facilitates a yearly wildfire fuel source removal program. Budget $ 40,000/year Eaglebend Park Remodel Description: The Eaglebend Park is over 30-years old and due for a remodel. The project will upgrade the features to meet modern playground standards and improve landscaping. Budget: 2026 $40,000 Saddleridge Park, also known as Wildridge Pocket Park Description: The park on Saddleridge Road is in poor condition and due for a remodel. The playground equipment is out of date and landscaping overgrown or dead. Budget: 2023 $ 25,000 (Design) 2024 $ 75,000 (Construction) ATTACHMENT B 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 original construction. The cliff consists of loose sandstone that is steadily eroding and causing the lot immediately above to gradually erode toward the existing structure’s foundation. This project will install a retaining wall and drainage improvements to prevent further erosion of the steep slope. Budget: 2022 $100,000 Annual Guardrail Maintenance Improvements Description: The majority of the guardrail in Avon was installed when the roads were constructed in the late 1970’s and early 1980’s. Someguard rail is in poor condition, does not meet current standards and requires replacement. This project will fund yearly replacement. Budget: 2021 $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 as well as curb and gutter repair, storm drainage improvements, ADA curb ramp updates and guardrail replacement or adjustment. The program generally consists of a 15 to 20-year rebuild rotation for the roads. Paving locations are determined annually based on the Asphalt Paving Association rating system. Budget: 2022 W. Beaver Creek Blvd Hwy. 6 to AES $ 515,000 2022 W. Beaver Creek Blvd – Sidewalks $ 200,000 2022 Fawcett Road (near Wal-Mart) $ 138,000 2023 Riverfront Lane and Lake Street $ 450,000 2024 Upper Buck Creek Road $ 475,000 2024 Avon Road $ 913,000 2025 Post Blvd $ 1,400,000 2025 Milies Lane $ 56,000 2025 Old Trail $ 408,000 2026 Swift Gulch Road at Buffalo Ridge $ 400,000 2026 Wildridge Road $ 2,243,000 US6 Roundabout at Stonebridge Drive Description: The Town of Avon is partnering with Eagle County and Colorado Department of Transportation for construction of a roundabout on US6 and Stonebridge Drive to enhance pedestrian safety. Budget: 2022 $300,000 (Town Match) 2023 $2,000,000 (CDOT Grant) 2023 $200,000 (Eagle County Match) ATTACHMENT B Main Street Mall Extension Description: Extend the Main Street Mall from Lettuce Shed Lane to Lake Street Budget: 2022 $ 50,000 (Schematic) 2023 $ 175,000 (Final Design) 2024 $ 1,000,000 (Construction) 2025 $ 500,000 (Construction) Harry A. Nottingham Park Path Replacement Description: Replace the park path from the dam to the tennis courts. Budget: 2023 $ 520,000 Harry A. Nottngham Park Path – Extension from AES to Beach Description: Install a new path from the Avon Elementary School parking lot to the main path near the beach. Budget: 2025 $ 396,000 Avon Road Roundabout Aprons and Landscaping Description: The brick aprons and landscaping in the roundabouts are 25-years old and due to be replaced. The brick aprons are not traffic rated and will be replaced with aprons that are designed for vehicle and truck traffic that accidentally drive over the curb. The landscape and irrigation system adjacent to the aprons will be renovated in conjunction with the work. The project will be designed in 2022 and construction planned in the following years. Budget: 2022 $150,000 2023-2026 $150,000 (to be finalized after design) 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: 2021 $ 80,000 ATTACHMENT B DRAINAGE AND WATER QUALITY Nottingham Road Debris Flow Study and Implementation Description: Currently after large rainstorms, runoff transports large amounts of mud and debris onto Nottingham Road, overwhelming ditches and drainage infrastructure and impacting the road. This project started with a study analyzing the drainages and proposed remediation alternatives. In 2019 the first project was implemented near 480 Nottingham Road to reduce the amount of sediment deposited on Nottingham Road. The next phase of the project will be above 230 Nottingham Road. Further projects will be to mitigate flooding at Sonnen Halde Condominiums, Beaver Bench Condominiums and Swift Gulch and Avon Roads. Budget: 2021 -2022 $450,000 Geographic Information Systems Implementation Description: In 2021, the Town began implementing a Geographic Information System (GIS) to track and maintain infrastructure. The first components were the irrigation system and streetlights. The 2022 program will include drainage infrastructure, transit and planning. Budget: 2022 75,000 Nottingham Puder Ditch Irrigation System Description: The Nottingham Puder Ditch diverts water from the Eagle River near the Eagle-Vail I70 interchange and terminates at Buck Creek near the Public Safety Facility. The ditch provides irrigation water to Post Blvd, East Beaver Creek Blvd, the Public Safety Facility, as well as Nottingham Lake if needed. It will eventually provide water to park facilities in the Village (at Avon) development. The ditch is partially piped through developed portions of the Village (at Avon). The non-piped section from the head gate to the Village (at Avon) leaks approximately 2 cubic feet per second when operating, or 357 acre-feet per year, approximately the size of Benchmark Lake in Harry A. Nottingham Park. The project will be designed in 2022 and constructed in 2023. Budget: 2022 $62,500 2023 $625,000 ATTACHMENT B COMMUNICATIONS AND TECHNOLOGY Microsoft Teams Phone System Description: This project will upgrade the Town’s phone system from Skype to Microsoft Teams. Budget: 2022 $38,939 Nottingham Park Wi-Fi Access Description: This project will provide Wi-Fi service to the playground restrooms and future north and east restrooms. Budget: 2022 $75,000 ATTACHMENT B 970-748-4055 swright@avon.org TO: FROM: RE: DATE: Honorable Mayor Smith Hymes and Council members Scott Wright, Asst. Town Manager / Finance Director 2021 Supplemental Budget Amendment, Resolution 21-19 August 5, 2021 INTRODUCTION AND ACTION BEFORE COUNCIL: This report and Resolution No. 21-19 amend the General Fund, Capital Projects Fund, Mobility Fund, and Fleet Maintenance Fund for revisions and updates since the last supplemental amendment that was adopted on April 27, 2021. The amendment proposes an update to projected revenues as well as itemization and description of increases in expenses as described below. PROPOSED MOTION: "I move to approve Resolution No. 21-19, A Resolution Amending the 2021 Town of Avon Budget." Below is a summary of the proposed budget revisions and the estimated impacts to fund balances. GENERAL FUND: The revised ending fund balance of the General Fund for 2021 shows a balance of $10,911,027 which is $1,849,843 higher than the last supplemental budget amendment and $3,420,214 higher than the original budget. Of this amount, the 27% reserve is $5,033,055, $829,650 is in the 3% TABOR emergency reserve and the remaining amount of $5,048,322 is undesignated and unreserved and can be used for any legal purpose. The original 2021 budgeted deficit of $956,909 is now a surplus of $708,140. The following are proposed revisions to expenditure appropriations in the General Fund: 60 Hour Personal Time Off (“PTO”) Buyback: The cost for implementing the PTO buyback is $108,434. The Town previously offered the ability of employees to “sell” up to 40 hours of accrued PTO at the end of the year, typically in early December. The rules for participating in this PTO buyback requiring having used at least 40 hours of PTO during the year and must have at least 40 hours of PTO remaining in the PTO bank as of the end of the year. This program was suspended in 2020 as one of the several budget expense cuts implemented in the 2020 budget. PTO accrual increased significantly in 2020 due to travel restrictions. Town Manager Eric Heil revised the Employee Policies to allow a greater carry-over of PTO accrued balances in 2021, and then scaled back in year 2022 and subsequent years. The Town Manager provided direction to offer up to 60 hours of PTO buy-back in 2021 as one method to reduce additional PTO hours which were accrued in 2020 and reduce substantial PTO carry-over balances. The Town budgets for employees electing to use 50% of the total potential PTO buyback based on past usage. 2021 Salary Increase: The cost for implementing a salary increase to be effective on August 29, 2021 is $29,241. Salary increases are proposed for all Avon employees earning less than $68,000. This increase is targeted to assist those employees who are struggling the most with the increases to cost of living, including increases to housing costs, and to provide some relief to the salary freeze implemented in March, 2020. A salary increase of $1,500 is presented for most employees. The Town Manager worked closely with the Human Resources Department to increase salaries for employees with salaries below the current minimum starting salary as well as provide increases for Transit Driver to respond to recent salary range increases and hourly rate increases approved by ECO Transit and the Eagle County School District. 970-748-4055 swright@avon.org EPS Financial Analysis Update: The cost for updating and expanding the 2018 Fiscal Impact Analysis prepared by EPS is $39,950. The proposed update also includes a significant expansion of information to provide a more complete analysis and comparison of Avon’s financial status with our many peer communities, including a comparison of municipal revenues and budgets, sales tax and lodging tax, property tax, analysis of cost of owning property in various jurisdictions within Eagle County, an analysis of Avon’s visitor economy and associated revenues, an analysis and update of the Village (at Avon) financial status, and trends and outlook. The complete proposal is included as an Attachment to this report. The intent is to conduct an update of Avon’s Fiscal Analysis each three years. The next update is expected to be considerably less expensive because the work should be limited to updating numbers for 2024. PEG Grant: The cost for the requested PEG grant is $8,135.00. Council approved the proposed PEG Grant (public, education, governmental) requested by Hive Five Media at the Council meeting on August 10, 2021. Special Events: Special Events expenditures are reduced by $68,092 primarily due to the cancellation of the Salute to the USA fireworks show. Sunridge Fire Damage Contribution: The cost for the contribution to assist Sunridge residents impacted by the fire last spring is $5,500. The Town collaborated and supported Salvation Army to assist residents impacted by a deck fire with the cost of temporary housing. The Town’s contribution was matched by Vail Valley Foundation. Guest Firewall: The cost to install a Guest Firewall is $11,370. The Town Attorney received correspondence notifying the Town that the Town’s guest WIFI was used to allow illegal down-load of movies and threatening legal action. Installation of the guest firewall is a common practice to minimize inappropriate and illegal use of the Town of Avon’s public WIFI. Police: The cost for amendments to the Police Department budget includes $16,660 for a 2nd Community Response Officer. In addition there is an increase of $27,300 for training, professional development and public safety equipment. This is offset by $27,300 in I70 POST grants and reimbursements. Project Engineer: A Project Engineer was added for a cost of $67,246 in 2021. The additional Project Engineer position is paid for with a transfer from the Capital Improvements Fund and will assist with the workload of capital improvements and other engineering review matters. The following are proposed revisions to estimated revenues in the General Fund: Sales Tax Revenues: $1,120,216 in additional sales tax revenues based on YTD revenues through June. Collections are currently over the previously revised budget by $880,390, and are $1,161,457 over the original budget. Collections are up over 2020 by 28.27%. We believe this is due to online marketplace retailers and online travel companies now required to collect and remit taxes. Accommodation Tax Revenues: $291,332 in additional accommodations taxes based on YTD revenues through June. Collections are currently over the previously revised budget by $247,669 and over the original budget by $354,871. Collections are up over 2020 by 52.72% and over 2019 by 13.15%. This is due to OTCs now required to collect and remit accommodation taxes. 970-748-4055 swright@avon.org Grants: I70 POST Grants and reimbursements in the amount of $27,300 in as mentioned above under Police revisions. CAPITAL PROJECTS FUND: The revised ending fund balance of the Capital Projects Fund shows a total of $6,693,259. Of this amount, $450,230 is reserved for asphalt overlay projects in the Village at Avon, $1,099,108 is reserved for Tract G/URA projects. The remaining amount of $5,138,941 can be used for capital improvements as defined by the municipal code and up to 10% of real estate transfer tax revenues can be transferred to the Community Housing Fund. Major capital project revisions to the Capital Project Fund are as follows: New Town Hall 2nd and 3rd Floor Updates: A total of $30,000 has been added to this project to cover the additional cost of furniture, both at New Town Hall and at the ARTF for the Engineering Department's move. Asbestos Mitigation / Demolition of Old Town Hall: This project was originally budgeted at $525,000. Actual final bids have come in higher by $118,359. This project is scheduled to be completed by fall. Fleet Maintenance EPDM Roof Replacement: This project has been delayed until 2023 due to the good condition of the roof. $20,000 has been added to the 2021 budget for maintenance and minor repairs. Recreation Center Pool Replastering: This project has been added for 2021 in the amount of $198,273 while the aquatics area is shutdown in October. The recreation center pools have a coat of plaster that needs to be replaced every 10-years and was last completed in 2009. A total of $141,000 is being transferred in from the Equipment Replacement Fund to partially offset the cost of this project. Recreation Center Jacuzzi Leak Repair: 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. This project has also been added for 2021 in the amount of $60,000 and will also take place while the aquatics area is closed in October. Level 2 and DC Fast EV Charging Stations: Additional funds for this project in the amount of $26,000 are required after the manufacturers of the EV charges increased their warranty and maintenance fees. Installation costs also increased due to the relocation of the power source. Grant funds cover $44,000 of the $81,000 revised project cost. Pickleball Court Reconstruction: A project to resurface the pickleball courts in the amount of $100,000 had been originally included in the 2021 budget. The scope of the project has been changed to a reconstruction project and moved to 2022 for a total cost of $325,000. The reconstruction will coincide with reconstruction of the tennis courts. Metcalf Culvert Repair. Due to the collapse of a 30-Ft long section of a 7-FT diameter culvert underneath Metcalf Road in the vicinity of the northern Metcalf Lofts driveway, a new project has been added in the amount of $237,466. West B/C Blvd. / Beach On-street Parking Improvements. This project has been discontinued and the budget reduced by the unexpended funds in the amount of $139,675. HR HRIS System: An HRIS, or human resource information system, is software designed to help meet core HR needs and improve productivity. HRIS helps businesses use technology to enhance processes and keep pace with evolving workplace trends, including such areas as recruitment and onboarding, benefits administration, personnel 970-748-4055 swright@avon.org administration, and compliance. The HR Department has been conducting demonstrations of HRIS systems and has estimated an amount of $50,000 for licensing, implementation, data conversion, and training in this revised budget. MOBILITY FUND: The revised fund ending fund balance of the Mobility Fund shows a total of $1,368,937 with a 2021 surplus of $652,415. Revisions to the Mobility Fund include the following items: Regional Transit Planning: This expense is $26,667 to participate with Eagle County and the Town of Vail to proceed with regional transit planning in 2021. More information is provided on this effort in the Council as part of the schedule work session on Regional Transportation Authority and the establishment of a Regional Transportation Authority Formation Committee. ARTF Facility Repairs: A total of $47,310 has been added to the Mobility Fund for repairs to the fuel island electric system after it was struck by lightning, for the replacement of a garage door that fell when the cabling and springs failed, and the clean-out of the sand/oil pits that were unanticipated in the 2021 budget. FLEET MAINTENANCE FUND: The revised ending fund balance of the Fleet Maintenance Fund shows a total of $220,299 with a 2021 surplus of $30,978. Revisions to the Fleet Maintenance Fund include the following items: Repairs and Maintenance: Additional sublet repairs in the amount of $10,000 has been added. These are repairs on vehicles or heavy equipment that the shop mechanics cannot do such as body work, painting or other specialized repairs. The cost of these repairs are passed-through to customers. In addition, $14,034 has been added for repairs to Fleet shop equipment and lifts. Thank you, Scott ATTACHMENTS: Attachment A. Resolution 21-19 Attachment B. General Fund Supplemental Amendment No. 2 Attachment C. Capital Projects Fund Supplemental Amendment No. 2 Attachment D. Mobility Fund Supplemental Amendment No. 2 Attachment E. Fleet Maintenance Fund Amendment No. 2 Res. No. 21-19 August 24, 2021 Page 1 of 2 RESOLUTION NO. 21-19 A RESOLUTION TO AMEND THE 2021 TOWN OF AVON BUDGET WHEREAS, the Town Council of the Town of Avon has previously adopted the 2021 budget; and WHEREAS, the Town Council has reviewed the revised estimated revenues and expenditures for 2021; and WHEREAS, the Town Council finds it necessary to amend the 2021 budget to more accurately reflect the revenues and expenditures for 2021; and WHEREAS, the Town Council has caused to be published a notice containing the date and time of a public hearing at which the adoption of the proposed budget amendment will be considered and a statement that the proposed budget amendment is available for public inspection at the office of the Town Clerk located in the Avon Town Hall during normal business hours, and that any interested elector of the Town of Avon may file any objection to the proposed budget amendment at any time prior to the final adoption of the proposed budget amendment; and WHEREAS, whatever increases may have been made in the expenditures, like increases were added to the revenues so that the budget remains in balance as required by law. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. That estimated revenues and expenditures for the following funds are revised as follows for 2021: Original or Previously Amended 2021 Budget Current Proposed Amended 2021 Budget General Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 9,578,754 17,909,638 18,427,208 $ 10,202,887 19,349,086 18,640,946 Ending Fund Balance $ 9,061,184 $ 10,911,027 ATTACHMENT A Res. No. 21-19 August 24, 2021 Page 2 of 2 Original or Previously Amended 2021 Budget Current Proposed Amended 2021 Budget Capital Projects Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses Ending Fund Balance $ 12,098,283 4,267,500 9,476,861 $ 6,888,922 $ 12,101,243 4,288,500 9,696,484 $ 6,693,259 Mobility Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 716,522 5,936,478 5,189,887 $ 716,522 5,936,478 5,284,063 Ending Fund Balance Fleet Maintenance Fund Beginning Fund Balance Revenues and Other Sources Expenditures and Other Uses $ 1,463,113 . $ 184,906 1,857,002 1,776,934 $ 1,368,937 $ 189,321 1,857,002 1,826,024 Ending Fund Balance $ 264,974 $ 220,299 Section 2. That the budget, as submitted, amended, and hereinabove summarized by fund, hereby is approved and adopted as the budget of the Town of Avon for the year stated above. Section 3. That the budget hereby approved and adopted shall be signed by the Mayor and made part of the public record of the Town. INTRODUCED, READ, AND ADOPTED by the Town Council of the Town of Avon on the 24th day of August, 2021. By:___________________________ Attest:________________________ Sarah Smith Hymes, Mayor Brenda Torres, Town Clerk ATTACHMENT A Supplemental Supplemental Original Budget Budget Difference Actual Budget Revision #1 Revision #2 Increase 2020 2021 2021 2021 (Decrease) REVENUES Taxes 14,459,430$ 13,525,678$ 14,401,128$ 15,812,676$ 1,411,548$ Licenses and Permits 328,734 300,100 300,100 300,100 - Intergovernmental 1,746,733 1,009,480 1,009,480 1,032,780 23,300 Charges for Services 933,625 1,059,782 1,141,882 1,142,482 600 Fines and Forfeitures 39,693 46,900 46,900 46,900 - Investment Earnings 189,169 150,000 150,000 150,000 - Other Revenue 745,113 488,500 488,500 492,500 4,000 Total Operating Revenues 18,442,497 16,580,440 17,537,990 18,977,438 1,439,448 Other Sources Transfer-In From Community Enhancement Fund - 30,000 30,000 30,000 - Transfer-In From Capital Projects Fund 247,314 247,314 341,648 341,648 - Total Other Sources 247,314 277,314 371,648 371,648 - TOTAL REVENUES 18,689,811$ 16,857,754$ 17,909,638$ 19,349,086$ 1,439,448$ EXPENDITURES General Government 4,968,825$ 4,851,740$ 5,449,823$ 5,430,433$ (19,390)$ Community Development 488,739 544,161 544,161 552,108 7,947 Public Safety 4,050,935 4,188,557 4,191,557 4,275,219 83,662 Public Works 3,990,073 4,788,045 4,788,045 4,911,754 123,709 Recreation 1,311,887 1,742,160 1,753,622 1,771,432 17,810 Total Operating Expenditures 14,810,459 16,114,663 16,727,208 16,940,946 213,738 Contingency - - - - - Other Uses Transfers-Out to Affordable Housing Fund 250,000 - - - - Transfers-Out to Transit 1,150,000 1,300,000 1,300,000 1,300,000 - Transfers-Out to Fleet Maintenance 475,000 400,000 400,000 400,000 - Total Other Uses 1,875,000 1,700,000 1,700,000 1,700,000 - TOTAL EXPENDITURES 16,685,459 17,814,663 18,427,208 18,640,946 213,738 NET SOURCE (USE) OF FUNDS 2,004,352 (956,909) (517,570) 708,140 1,225,710 FUND BALANCES, Beginning of Year 8,198,535 8,447,722 9,578,754 10,202,887 624,133 FUND BALANCES, End of Year 10,202,887$ 7,490,813$ 9,061,184$ 10,911,027$ 1,849,843$ FUND BALANCES: Restricted For: 3% TABOR Emergency Reserve 829,650$ 693,001$ 805,865$ 829,650$ 23,785$ Unassigned: 27% Minimum Reserve Balance 4,437,574 4,809,959 4,975,346 5,033,055 57,709 Undesignated, Unreserved 4,935,663 1,987,853 3,279,973 5,048,322 1,768,349 TOTAL FUND BALANCES 10,202,887$ 7,490,813$ 9,061,184$ 10,911,027$ 1,849,843$ Fund Summary General Fund #10 Supplemental Amendment No. 2 ATTACHMENT B Supplemental Supplemental Original Budget Budget Difference Account Actual Budget Revision #1 Revision #2 Increase Number Description 2020 2021 2021 2021 (Decrease) Taxes: 51101 General Property Tax 2,041,834$ 2,045,905$ 2,045,905$ 2,045,905$ -$ 51102 General Property Tax - Delinquencies - 500 500 500 - 51103 General Property Tax - Interest 3,128 1,500 1,500 1,500 - 51104 General Property Tax - Abatements - - - - - 51201 Specific Ownership Tax 114,434 115,000 115,000 115,000 - 51301 Sales Tax 9,103,683 8,476,984 9,104,790 10,225,006 1,120,216 51302 Utility Tax 102,442 115,000 115,000 115,000 - 51303 Accommodation Tax 1,217,787 1,040,789 1,217,531 1,508,863 291,332 51304 Penalties and Interest 43,531 35,000 35,000 35,000 - 51305 Sales Tax Audit Assessments 67,230 10,000 10,000 10,000 - 51307 VAA Retail Sales Fee 870,964 855,000 855,000 855,000 - 51308 Cigarette Excise Tax 250,995 210,000 250,995 250,995 - 51309 Tobacco Add-on Sales Tax 214,907 185,000 214,907 214,907 - 51402 Franchise Fees 428,495 435,000 435,000 435,000 - 51000 Total Taxes 14,459,430 13,525,678 14,401,128 15,812,676 1,411,548 Licenses and Permits: 52101 Liquor Licenses 5,663 12,500 12,500 12,500 - 52102 Business Licenses 95,900 75,000 75,000 75,000 - 52103 Contractor's Licenses 14,315 12,000 12,000 12,000 - 52104 Tobacco/Cigarette Licenses 1,750 1,500 1,500 1,500 - 52105 Booting/Towing Licenses 600 500 500 500 - 52201 Building Permits 204,986 190,000 190,000 190,000 - 52205 Road Cut Permits 5,170 8,000 8,000 8,000 - 52207 Mobile Vendor Cart Permits 350 600 600 600 - 52000 Total Licenses and Permits 328,734 300,100 300,100 300,100 - Intergovernmental: Federal Grants: 53106 Click It or Ticket 5,500 3,000 3,000 3,000 - 53107 Ballistic Vests 2,206 2,000 2,000 2,000 - 53108 CARES Act 713,837 - - - - 53204 LEAF Grant 1,916 - - - - State Grants 53206 High Visibility Grant 24,882 20,000 20,000 20,000 - 53207 POST I70 Training Grants 36,734 21,000 21,000 44,300 23,300 53208 DOLA Grants 4,215 47,000 47,000 47,000 - 53209 Avon's Best and Brightest 23,591 - - - - 53299 Other State Grants (DOLA)6,173 - - - - Local Government/Other Agency 53405 El Pomar Grant 2,500 - - - - 53900 Other Local Grants 6,804 5,000 5,000 5,000 - Revenue Detail General Fund Supplemental Amendment No. 2 ATTACHMENT B Supplemental Supplemental Original Budget Budget Difference Account Actual Budget Revision #1 Revision #2 Increase Number Description 2020 2021 2021 2021 (Decrease) Revenue Detail General Fund Supplemental Amendment No. 2 State/County Shared Revenue: 53301 Conservation Trust 67,312 73,500 73,500 73,500 - 53302 Motor Vehicle Registration 24,472 24,800 24,800 24,800 - 53303 Highway User's Tax 168,012 168,430 168,430 168,430 - 53305 County Sales Tax 507,823 500,000 500,000 500,000 - 53306 Road & Bridge Fund 150,268 144,000 144,000 144,000 - 53308 State Severance Tax 488 750 750 750 - 53000 Total Intergovernmental 1,746,733 1,009,480 1,009,480 1,032,780 23,300 Charges for Services: General Government: 54102 Photocopying Charges - 100 100 100 - 54103 License Hearing Fees - 100 100 100 - 54104 Other Fees and Charges 2,418 2,000 2,000 2,000 - 54105 CC & Paper Filing Fees 2,281 2,500 2,500 2,500 - Special Events 54672 Concession Sales - - 54,400 54,400 - 54676 Sponsorships - - 10,000 16,000 6,000 54678 Event Fees 550 400 13,600 8,200 (5,400) 54679 Special Event Admission Fees - - 3,000 3,000 - Community Development: 54201 Plan Check Fees 121,855 120,000 120,000 120,000 - 54672 Subdivision Review Fees - - - - - 54203 Design Review Fees 19,282 15,000 15,000 15,000 - 54204 Animal Control Fees - 150 150 150 - 54206 Fire Impact Fee Administration Fees 1,624 1,500 1,500 1,500 - Public Safety: 54301 Police Reports 1,286 1,000 1,000 1,000 - 54302 Off-duty Police Employment 25,172 25,000 25,000 25,000 - 54303 Fingerprinting Fees 740 500 500 500 - 54304 VIN Inspection Fees 2,440 1,800 1,800 1,800 - 54305 False Alarm Fees/Misc Police Dept Fees 5 75 75 75 - 54306 National Night Out 1,500 1,500 1,500 1,500 - 54399 DUI Reimbursement 10,043 15,000 15,000 15,000 - Avon Recreation Center: 54601 Admission Fees 432,963 550,000 550,000 550,000 - 54602 Program Fees 15,170 7,945 7,945 7,945 - 54603 Facility Rentals 2,717 - - - - 54604 Merchandise Sales 2,804 4,596 4,596 4,596 - 54606 Rec Center Services 3,970 5,004 5,004 5,004 - 54607 Fitness Program Revenues 11,712 12,000 12,000 12,000 - 54610 Swim Team Revenue 38,629 50,112 50,112 50,112 - 54611 Private Lessons 13,174 21,000 21,000 21,000 - ATTACHMENT B Supplemental Supplemental Original Budget Budget Difference Account Actual Budget Revision #1 Revision #2 Increase Number Description 2020 2021 2021 2021 (Decrease) Revenue Detail General Fund Supplemental Amendment No. 2 General Recreation: 54651 Adult Program Revenues 6,554 - - - - 54652 Cabin Equipment Rentals 59,151 60,000 60,000 60,000 - 54653 Athletic Field Rentals 490 2,000 2,000 2,000 - 54655 Youth Program Revenues 156,540 160,000 160,000 160,000 - 54680 Pavillion Rentals 555 500 2,000 2,000 - 54000 Total Charges for Services 933,625 1,059,782 1,141,882 1,142,482 600 Fines and Forfeitures: 55101 Court Fines - Traffic 24,660 23,000 23,000 23,000 - 55102 Court Fines - Criminal 6,201 10,000 10,000 10,000 - 55103 Court Fines - Parking 4,185 6,700 6,700 6,700 - 55105 Court Costs 2,586 4,000 4,000 4,000 - 55106 Jury Fees - 100 100 100 - 55107 Bond Forfeitures - 100 100 100 - 55110 Police Training Surcharge 2,690 3,000 3,000 3,000 - 55120 Police Forfeiture Revenue (629) - - - - 55000 Total Fines and Forfeitures 39,693 46,900 46,900 46,900 - 57101 Investment Earnings 189,169 150,000 150,000 150,000 - Miscellaneous Revenues: 58101 Recreational Amenity Fees 310,984 305,000 305,000 305,000 - 58201 Lease of Town-Owned Property 31,525 58,500 58,500 58,500 - 58999 Miscellaneous Nonclassified Revenues 402,604 125,000 125,000 129,000 4,000 58000 Total Miscellaneous Revenues 745,113 488,500 488,500 492,500 4,000 50000 TOTAL REVENUES 18,442,497$ 16,580,440$ 17,537,990$ 18,977,438$ 1,439,448$ ATTACHMENT B Department Expenditure Summaries Supplemental Supplemental Original Budget Budget Difference Dept./Div.Actual Budget Revision #1 Revision #2 Increase Number Description 2020 2021 2021 2021 (Decrease) General Government: 111 Mayor and Town Council 255,633$ 292,101$ 295,825$ 295,825$ -$ 113 Town Attorney 249,105 205,000 255,000 255,000 - 115 Town Clerk 126,689 135,652 135,652 137,754 2,102 121 Municipal Court 123,876 134,547 134,547 135,767 1,220 131 Town Manager 380,489 423,644 517,382 462,167 (55,215) 133 Community Relations 243,282 248,119 276,740 287,104 10,364 134 Economic Development 121,958 158,700 162,774 162,774 - 136 Special Events 305,185 514,898 912,254 844,162 (68,092) 137 Community Grants 92,800 94,150 94,150 99,650 5,500 138 COVID19 562,817 - - - - Subtotal General Government 2,461,834 2,206,811 2,784,324 2,680,203 (104,121) Human Resources: 132 Human Resources 532,366 593,786 593,786 609,680 15,894 Finance and IT: 141 Finance 982,068 994,292 1,002,894 1,053,941 51,047 143 Information Systems 456,471 457,892 457,892 473,381 15,489 149 Nondepartmental 536,086 598,959 610,927 613,228 2,301 Subtotal Finance and IT 1,974,625 2,051,143 2,071,713 2,140,550 68,837 Total General Government and Finance 4,968,825 4,851,740 5,449,823 5,430,433 (19,390) Community Development: 220 Boards and Commissions 10,291 21,177 21,177 21,177 - 212 Planning 300,334 298,600 298,600 303,546 4,946 213 Building Inspection 178,114 224,384 224,384 227,385 3,001 Total Community Development 488,739 544,161 544,161 552,108 7,947 .. Police Department: 311 Administration 799,612 844,494 844,494 851,179 6,685 312 Patrol 2,941,404 3,009,938 3,012,938 3,086,436 73,498 313 Investigations 309,919 334,125 334,125 337,604 3,479 Total Police Department 4,050,935 4,188,557 4,191,557 4,275,219 83,662 Public Works Engineering: 412 Engineering 266,431 270,215 270,215 341,027 70,812 418 Buildings and Facilities 1,086,624 1,282,870 1,282,870 1,296,115 13,245 Roads and Bridges: 413 Roads and Bridges 2,293,780 2,615,781 2,615,781 2,655,433 39,652 415 Parks and Grounds 343,238 619,179 619,179 619,179 - Total Public Works Department 3,990,073 4,788,045 4,788,045 4,911,754 123,709 General Fund Supplemental Amendment No. 2 ATTACHMENT B Department Expenditure Summaries Supplemental Supplemental Original Budget Budget Difference Dept./Div.Actual Budget Revision #1 Revision #2 Increase Number Description 2020 2021 2021 2021 (Decrease) General Fund Supplemental Amendment No. 2 Recreation Department: 514 Administration 251,322 263,139 263,139 265,094 1,955 515 Adult Programs 24,628 35,703 35,703 36,526 823 516 Aquatics 474,748 623,524 626,736 634,669 7,933 518 Fitness 38,359 125,677 125,677 125,677 - 519 Guest Services 277,099 350,061 350,061 354,219 4,158 521 Youth Programs 125,591 187,286 195,536 196,359 823 523 Community Swim Programs 120,140 156,770 156,770 158,888 2,118 Total Recreation 1,311,887 1,742,160 1,753,622 1,771,432 17,810 TOTAL OPERATING EXPENDITURES 14,810,459$ 16,114,663$ 16,727,208$ 16,940,946$ 213,738$ ATTACHMENT B Fund Summary Current Proposed Revised Supplemental Difference Audited Budget Amendment #2 Increase 2020 2021 2021 (Decrease) REVENUES Taxes 5,998,950$ 3,300,000$ 3,300,000$ -$ Intergovernmental 35,000 69,000 69,000 - Investment Earnings 92,480 50,000 50,000 - Other Revenue 770 - - - Total Revenues 6,127,200 3,419,000 3,419,000 - Other Sources: Transfer In from Other Funds 700,000 848,500 869,500 21,000 Total Other Sources 700,000 848,500 869,500 21,000 TOTAL REVENUES AND OTHER SOURCES 6,827,200 4,267,500 4,288,500 21,000 EXPENDITURES Capital Improvements: Facilities 490,210 2,439,863 2,592,495 152,632 Land and Land Improvements 79,006 988,705 897,905 (90,800) Roads and Streets 1,109,419 2,558,373 2,666,164 107,791 Utility Projects 289,803 285,894 285,894 - Communications and Technology 142,756 594,534 644,534 50,000 Debt Service: Capital Leases 81,999 81,999 81,999 - Total Expenditures 2,193,193 6,949,368 7,168,991 219,623 Other Uses Operating Transfer-Out - General Fund 247,314 341,648 341,648 - Operating Transfer-Out - Debt Service Fund 1,007,801 967,385 967,385 - Operating Transfer-Out - Mobility Fund - 600,000 600,000 - 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 2,527,493 2,527,493 - TOTAL EXPENDITURES AND OTHER USES 3,448,308 9,476,861 9,696,484 219,623 NET SOURCE (USE) OF FUNDS 3,378,892 (5,209,361) (5,407,984) (198,623) FUND BALANCE, Beginning of Year 8,722,351 12,098,283 12,101,243 2,960 FUND BALANCE, End of Year 12,101,243$ 6,888,922$ 6,693,259$ (195,663)$ Fund Balances Restricted For: Asphalt Overlay 455,210$ 455,210$ 455,210$ -$ Assigned For: Tract G/URA Projects 484,108 949,108 1,099,108 150,000 Unreserved 11,161,925 5,484,604 5,138,941 (345,663) Total Fund Balances 12,101,243$ 6,888,922$ 6,693,259$ (195,663)$ Capital Projects Fund #41 Supplemental Amendment No. 2 ATTACHMENT C Proposed Revised Supplemental Difference Account Audited Budget Amendment #2 Increase Number Description 2020 2021 2021 (Decrease) Taxes: 51401 Real Estate Transfer Tax 5,976,990$ 3,300,000$ 3,300,000$ -$ 51304 Penalties and Interest 21,960 - - - 51000 Total Taxes 5,998,950 3,300,000 3,300,000 - Intergovernmental: Federal / State: DOLA - Broadband Grant - 25,000 25,000 - Colorado Energy Office - 2020 Charge Ahead Grant 35,000 - - - Colorado Energy Office - 2021 Charge Ahead Grant - 44,000 44,000 - 53000 Total Intergovernmental 35,000 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) Transfer in from Equipment Replacement Fund 59201 Pool Replastering - - 141,000 141,000 59000 Total Other Sources 700,000 848,500 869,500 21,000 50000 TOTAL REVENUES 6,827,200$ 4,267,500$ 4,288,500$ 21,000$ Revenue Detail Capital Projects Fund #41 Supplemental Amendment No. 2 ATTACHMENT C (1)(2)(3)(4)(1+2+4) Proposed Revised 2019 and Revised Supplemental Estimated Difference Account Prior Audited Budget Amendment #2 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 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 96,665 126,665 130,000 100,000 130,000 30,000 Carryover. To Be Completed - 2021 Old Town Hall Site: 11019 Utility Upgrade - 144,169 305,831 305,831 450,000 450,000 450,000 - Carryover. To Be Completed - 2021 11024 Asbestos Mitigation / Demolition - 1,200 523,800 642,159 643,359 525,000 643,359 118,359 Carryover. To Be Completed - 2021 11025 H.A. Nottingham Park East Improvements - - 85,000 85,000 85,000 935,000 2,850,000 1,915,000 Combined Projects 11025, 11026, 11027 Public Safety Facilities: 12006 PSF Parking Lot Canopy Design - - 20,000 20,000 20,000 20,000 20,000 - 12007 Wildridge Emergency Warning Siren - - 26,000 26,000 26,000 26,000 26,000 - Transportation Facilities: 14010 Fleet Maintenance EPDM Roof Replacement - - 300,000 20,000 20,000 300,000 320,000 20,000 Carryover to 2023 14019 Bus Shelter - Piedmont Apartments - - 30,000 30,000 30,000 30,000 30,000 - 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 - 95,434 330,166 330,166 425,600 425,600 425,600 - 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 - - 200,000 200,000 200,000 200,000 200,000 - Carryover. To Be Completed - 2021 15023 Recreation Center HVAC Upgrade - - 250,000 250,000 250,000 250,000 250,000 - 15024 Recreation Center ADA Parking - - 10,000 10,000 10,000 10,000 10,000 - 15025 Metcalf Family Cabin Feasibility Analysis - - 20,000 20,000 20,000 20,000 20,000 - Project Expenditures CIP Projects Inventory Total Project Budget Capital Projects Fund #41 Supplemental Amendment No. 2 ATTACHMENT C (1)(2)(3)(4)(1+2+4) Proposed Revised 2019 and Revised Supplemental Estimated Difference Account Prior Audited Budget Amendment #2 Project-to-Date Increase Number Description Actuals 2020 2021 2021 Expenditures Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS Project Expenditures CIP Projects Inventory Total Project Budget Capital Projects Fund #41 Supplemental Amendment No. 2 15026 Recreation Center Yoga Studio Bathroom Conversion - - 25,000 25,000 25,000 25,000 25,000 - Recreation Center Pool Replastering - - - 198,273 198,273 - 198,273 198,273 New Project 2021 Recreation Center Jacuzzi Leak Repair and Pool Deck - - - 60,000 60,000 - 60,000 60,000 New Project 2021 Other Facilities: 13013 Swift Gulch Housing Design - - 120,000 120,000 120,000 120,000 120,000 - 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 19007 Level 2 and DC Fast EV Charging Stations - Tract A - - 55,000 81,000 81,000 55,000 81,000 26,000 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 18,012 20,000 20,000 20,000 - Carryover. To Be Completed - 2021 21053 Pickleball Court Reconstruction - - 100,000 - - 100,000 325,000 225,000 Project scope revised. Carryover to 2023. 21054 Wildland Fire Mitigation - 22,859 40,000 40,000 NA NA NA - Ongoing 21055 Power Line Undergrounding - - 120,000 - - 120,000 120,000 - Carryover to 2022 21056 West Nottingham Park Improvements/Soccer Field - 9,307 270,693 308,693 318,000 280,000 318,000 38,000 Carryover. To Be Completed - 2021 21057 O'Neil Spur Park Parking Lot Rebuild - - 100,000 100,000 100,000 100,000 100,000 - 21058 Restrooms - Nottingham Lake Beach - - 50,000 50,000 50,000 500,000 500,000 - 21059 Nottingham Park Benches - 26,640 - - 26,640 26,640 26,640 - Completed - 2020 21060 Nottingham Park Light Upgrade- Phase 2 - - 190,000 281,200 281,200 190,000 281,200 91,200 21061 Beach Expansion - - 100,000 100,000 100,000 100,000 100,000 - ATTACHMENT C (1)(2)(3)(4)(1+2+4) Proposed Revised 2019 and Revised Supplemental Estimated Difference Account Prior Audited Budget Amendment #2 Project-to-Date Increase Number Description Actuals 2020 2021 2021 Expenditures Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS Project Expenditures CIP Projects Inventory Total Project Budget Capital Projects Fund #41 Supplemental Amendment No. 2 Roads and Streets: Streetscape Improvements 31030 Mall Activation Elements - 15,088 14,912 24,912 40,000 30,000 40,000 10,000 Carryover. To Be Completed - 2021 31031 Avon Rd./I70 Aesthetics Improvements 8,465 44,668 995,112 995,112 1,048,245 1,048,245 1,048,245 - Carryover. To Be Completed - 2021 Annual Street Maintenance and Repair: 32026 Retaining Wall Repairs - Nottingham & Swift Gulch Rd.- - 150,000 150,000 150,000 150,000 150,000 - 32028 Yoder Ave. Asphalt Overlay 3,930 202,611 - - 206,541 550,000 550,000 - Completed - 2020 32031 Mikaela Way and Benchmark Rd.- - 400,000 400,000 400,000 400,000 400,000 - 32032 Hurd Lane Intersection Improvements - - 20,000 20,000 20,000 20,000 20,000 - 32034 Buck Creek Repairs - 11,651 788,349 788,349 800,000 800,000 800,000 - Carryover. To Be Completed - 2021 33103 Eaglebend Dr. Resurfacing 1,040 189,189 - - 190,229 225,000 225,000 - Completed - 2020 33219 Annual Guard Rail Improvements - 38,668 40,000 40,000 NA NA NA - Ongoing Metcalf Road Culvert Repair - - - 237,466 237,466 - 237,466 237,466 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 - 2020 34040 West B/C Blvd./ Beach On-street Parking Imp.- - 150,000 10,325 10,325 150,000 10,325 (139,675) Project Discontinued Recreational Trails Program: 34043 West Avon Preserve Trail Improvements - 52,464 - - 52,464 57,000 57,000 - Completed - 2020 Utility Projects: 21026 Nottingham Rd. Debris Flow Improvements and Water Qua 164,303 35,831 224,866 224,866 425,000 425,000 425,000 - Carryover. To Be Completed - 2021 21028 Avon Road Water Quality Vault Projects - 253,972 61,028 61,028 315,000 315,000 315,000 - Carryover. To Be Completed - 2021 ATTACHMENT C (1)(2)(3)(4)(1+2+4) Proposed Revised 2019 and Revised Supplemental Estimated Difference Account Prior Audited Budget Amendment #2 Project-to-Date Increase Number Description Actuals 2020 2021 2021 Expenditures Current Proposed (Decrease)Project Status CAPITAL IMPROVEMENT PROJECTS Project Expenditures CIP Projects Inventory Total Project Budget Capital Projects Fund #41 Supplemental Amendment No. 2 Communications and Technology: 81011 Broadband - - 125,000 125,000 125,000 125,000 125,000 - Carryover. To Be Completed - 2021 81012 Fiber - CDOT Hand hold to PSF - - 80,000 80,000 80,000 80,000 80,000 - 81013 RR Bridge LED Messaging Boards - - 75,000 75,000 75,000 75,000 75,000 - 81014 Permanent Variable Message Boards (3)- - 150,000 150,000 150,000 150,000 150,000 - 81015 Finance/Comm Dev./HR ERP & HRIS Systems - 142,756 82,534 132,534 275,290 225,290 275,290 50,000 Added HRIS Module for HR 81016 Mini-split NTH Data Center - - 20,000 20,000 20,000 20,000 20,000 - 81017 Firearms Simulator - - 32,000 32,000 32,000 32,000 32,000 - 81018 Hybrid Meeting Technical Improvements - - 30,000 30,000 30,000 30,000 30,000 - Total Capital Improvement Projects 10,078,062$ 2,111,194$ 6,867,369$ 7,086,992$ 19,134,721$ 20,619,407$ 23,499,030$ 2,879,623$ ATTACHMENT C Supplemental Supplemental Original Budget Budget Difference Actual Budget Revision #1 Revision #2 Increase 2020 2021 2021 2021 (Decrease) REVENUES Taxes 41,634$ 41,597$ 41,597$ 41,597$ -$ Intergovernmental 646,470 2,245,980 3,613,708 3,613,708 - Charges for Services 263,715 273,930 273,930 273,930 - Other Revenues 106,112 107,243 107,243 107,243 - Total Operating Revenues 1,057,931 2,668,750 4,036,478 4,036,478 - Other Sources Sales of Capital Assets 2,379 - - - - Transfers In from General Fund 1,150,000 1,300,000 1,300,000 1,300,000 - Transfers In from Capital Projects Fund - 500,000 600,000 600,000 - Total Other Sources 1,152,379 1,800,000 1,900,000 1,900,000 - TOTAL REVENUES 2,210,310 4,468,750 5,936,478 5,936,478 - EXPENDITURES Administration 272,110 270,058 270,058 309,921 39,863 Transit Operations 1,204,636 3,757,918 4,384,285 4,408,850 24,565 Washbay 175,737 222,169 222,169 225,250 3,081 Mobility Programs 326,591 313,375 313,375 340,042 26,667 TOTAL EXPENDITURES 1,979,074 4,563,520 5,189,887 5,284,063 94,176 NET SOURCE (USE) OF FUNDS 231,236 (94,770) 746,591 652,415 (94,176) FUND BALANCES, Beginning of Year 485,286 496,615 716,522 716,522 - FUND BALANCES, End of Year 716,522$ 401,845$ 1,463,113$ 1,368,937$ (94,176)$ Fund Summary Mobility Enterprise Fund #52 Supplemental Amendment #2 ATTACHMENT D Supplemental Supplemental Original Budget Budget Difference Acct.Actual Budget Revision #1 Revision #2 Increase Number Description 2020 2021 2021 2021 (Decrease) Taxes: Property Taxes 51101 Property Tax/ Gates GID 41,597$ 41,597$ 41,597$ 41,597$ -$ 51103 Current & Delinquent interest 37 - - - - 51000 Total Taxes 41,634 41,597 41,597 41,597 - Intergovernmental: Federal Grants: 53104 FTA Formula Grant for Rural Areas - 5311 245,980 245,980 245,980 245,980 - 53199 FTA Grant for Buses and Bus Facilities - 5339 - 400,000 800,000 800,000 - 53199 FTA Low or No-Emission Vehicle Program 533 - 1,600,000 1,600,000 1,600,000 - 53199 FTA - CRRSAA - 5311 - - 867,728 867,728 - 53199 CARES Act Grant Phase I 228,279 - - - - 53199 CARES Act Grant Phase II 172,211 - - - - 53199 CARES Act Grant Phase III - - 100,000 100,000 - 53000 Total Intergovernmental 646,470 2,245,980 3,613,708 3,613,708 - Charges for Services: Transportation: 54501 Beaver Creek 119,660 127,000 127,000 127,000 - 54507 Wash Bay Services- External 106,242 100,000 100,000 100,000 - 54902 Wash Bay Services- Internal 37,813 46,930 46,930 46,930 - 54000 Total Charges for Services 263,715 273,930 273,930 273,930 - Other Revenues: 58201 Lease of Town-owned Property 82,431 82,790 82,790 82,790 - 58215 Sale of Electricty 10,877 21,453 21,453 21,453 - 58995 Bus Advertising Revenue 8,636 2,000 2,000 2,000 - 58996 Miscellaneous Reimbursement 108 - - - - 58999 Miscellaneous Nonclassifed Revenue 4,060 1,000 1,000 1,000 - 58000 Total Other Revenues 106,112 107,243 107,243 107,243 - Other Sources: 59101 Sales of Capital Assets 2,379 - - - - 59201 Transfers In from General Fund 1,150,000 1,300,000 1,300,000 1,300,000 - 59201 Transfers In from Capital Projects Fund - 500,000 600,000 600,000 - 59000 Total Other Sources 1,152,379 1,800,000 1,900,000 1,900,000 - 50000 TOTAL REVENUES 2,210,310$ 4,468,750$ 5,936,478$ 5,936,478$ -$ Revenue Detail Mobility Enterprise Fund #52 Supplemental Amendment #2 ATTACHMENT D Supplemental Original Budget Difference Actual Budget Revision #2 Increase 2020 2021 2021 (Decrease) REVENUES Charges for Services 1,440,345$ 1,263,542$ 1,263,542$ -$ Other Revenue 100 - - - Total Operating Revenues 1,440,445 1,263,542 1,263,542 - Other Sources Refunding Bond Proceeds 2,010,000 - - - Transfers-In from General Fund 475,000 400,000 400,000 - Transfers-In from Debt Service Fund - - - - Transfers-In from Capital Projects Fund 256,716 193,460 193,460 - Sales of Fixed Assets - - - - Total Other Sources 2,741,716 593,460 593,460 - TOTAL REVENUES 4,182,161 1,857,002 1,857,002 - EXPENDITURES Public Works: Fleet Maintenance 1,828,500 1,776,934 1,826,024 49,090 Total Operating Expenditures 1,828,500 1,776,934 1,826,024 49,090 Other Uses Payment to Refunding Bond Escrow Agent 2,219,131 - - - TOTAL EXPENDITURES 4,047,631 1,776,934 1,826,024 49,090 NET SOURCE (USE) OF FUNDS 134,530 80,068 30,978 (49,090) FUND BALANCES, Beginning of Year 54,791 184,906 189,321 4,415 FUND BALANCES, End of Year 189,321$ 264,974$ 220,299$ (44,675)$ Fund Summary Fleet Maintenance Enterprise Fund Supplemental Amendment #2 ATTACHMENT E 970-300-4373 pwisor@garfieldhecht.com TO: Honorable Mayor Smith Hymes and Council members FROM: Paul Wisor, Town Attorney and Eric Heil, Town Manager RE: Resolution 21-20 Referring a Short-Term Rental Tax Ballot Question to the Avon Electorate DATE: August 19, 2021 SUMMARY: This report presents to Council Resolution No. 21-20 Referring a Short-Term Rental Tax Ballot Question to the Avon voters. This Resolution is presented for Council consideration in follow-up to Council direction to prepare a ballot question for Council consideration at the August 10, 2021 Council meeting. MANAGER’S RECOMMENDATION: I recommend that the Town Council defer consideration of referring a ballot question for short-term rental tax to the Avon electorate to allow more analysis, outreach to lodging owners, and formal polling of Avon voters on short term rental tax and other potential tax requestions to support Community Housing because a 2% Short-Term Rental Tax Rate increase would apply to nearly all lodging in the Town of Avon except the Comfort Inn and would raise the effective lodging rate in Avon to 14.4%. BACKGROUND: The Town of Avon does not currently have a dedicated funding source for Community Housing. The Avon Town Council did take action to allow transfer of up to 10% of the Real Estate Transfer Tax each year towards Community Housing. The Town of Avon is experiencing a shortage of community housing units. A consequence of the COVID-19 pandemic is a significant influx of urban remote workers who are able to afford higher real estate prices than local residents and Eagle County employees, which has increased real estate prices dramatically over the last 18 months. The Town Council adopted the 2018 Town of Avon Community Housing Plan which stated 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. Council conducted a work session to review both a Use Tax and Short Term Rental Tax at the August 10, 2021 regular Council meeting and provided direction to Staff to not pursue further a Use Tax, but to prepare a ballot question for Short-Term Rental Tax for Council consideration. The town of Crested Butte has adopted a 5% Short Term Rental Tax and the Town of Telluride adopted a 2.5% Short-Term Rental Tax. As described in the August 5, 2021 Report to Council (attached to this Report), “An additional tax on Short- Term Rentals has the advantage of financially discouraging Short-Term Rentals (i.e. increasing the financial incentive for long-term rentals) and helps to address a criticism that Short-Term Rentals have an unfair advantage because they do not pay commercial property tax rates. The primary advantage of a Short-Term Rental Tax is that it would generate revenues that could be used to increase available Community Housing opportunities.” Avon is unique compared to many other mountain communities because the Town prohibited Short-Term Rentals in the primary residential neighborhood of Wildridge from its inception in late 1970’s. The valley Page 2 of 3 floor core area is comprised of nearly all multi-family and timeshare projects which have been available and marketed to second homeowners as well as residents. Avon’s total Short-Term Rental business licenses has remained relatively steady at approximately 350 total licenses over the last 3 years. Avon does not have any specific data to support an assumption that there is a substantial increase of converting residential units previously used for long-term rental to short-term rental use. FINANCIAL CONSIDERATIONS: Based on 2019 Accommodation Tax numbers and calculating that Short-Term Rentals are approximately 2/3rds of the Town’s Accommodation Tax revenues, each 1% Short- Term Rental Tax is anticipated to generate $227,500. A 2% Short-Term Rental Tax would generate $455,000 and a 4% Short-Term Rental Tax would generate $910,000. COMPARISON TO OTHER SKI RESORT COMMUNITIES: Council requested comparison information of total rate of lodging tax and private fee assessments in our peer ski resort areas. The following table is presented which indicates that Avon is already 1.8% higher than Beaver Creek, 2.6% higher than Vail and higher than the majority of our peer ski resort communities. Town Total Crested Butte 18.400% Telluride 15.150% Snowmass Village 12.800% Avon 12.400% Breckenridge 12.275% Mt. Crested Butte 11.800% Steamboat Springs 11.400% Aspen 11.300% Winter Park 11.200% Dillon 10.875% Frisco 10.725% Beaver Creek 10.710% Silverthorn 10.375% Vail 9.800% Keystone 6.375% Copper 6.375% PROPOSED BALLOT QUESTION: The current state of the community housing market is at crisis level. The workers that the Town of Avon, its residents, and its visitors depend on for necessary services and infrastructure are no longer able to afford housing within the Town in which they work and seek to live. Below is the question set forth in Resolution 21-20: SHORT-TERM RENTAL TAX SHALL THE TOWN OF AVON’S TAXES BE INCREASED BY SIX HUNDRED FIFTY THOUSAND DOLLARS ($650,000) IN THE FIRST YEAR (2022), AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER BY LEVYING AN EXCISE TAX OF 2% ON THE AMOUNT CHARGED TO ANY PERSON LEASING A Page 3 of 3 SHORT-TERM RENTAL UNIT, DEFINED AS LEASING ANY PROPERTY ASSESSED AS RESIDENTIAL BY THE EAGLE COUNTY ASSESSOR FOR A PERIOD LESS THAN THIRTY DAYS, FOR THE PURPOSE OF FUNDING COMMUNITY HOUSING, INCLUDING THE ACQUISITION OF LAND FOR HOUSING, CONSTRUCTION OF HOUSING, EXTENSION OF PUBLIC INFRASTRUCTURE TO SERVE COMMUNITY HOUSING DEVELOPMENT, PURCHASE OF DEED RESTRICTIONS, DOWN PAYMENT ASSISTANCE PROGRAMS, PARTNERSHIPS WITH PUBLIC AND PRIVATE ENTITIES TO DEVELOPMENT COMMUNITY HOUSING, AND RELATED COSTS FOR ADMINSTRATION, DESIGN, LEGAL AND CONSULTING, ALL IN ACCORDANCE WITH ORDINANCE NO. 21-____ ADOPTED BY THE AVON TOWN COUNCIL, AND SHALL THE TOWN BE PERMITTED TO COLLECT, RETAIN, AND EXPEND ALL REVENUES DERIVED FROM SUCH TAX AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? PROPOSED MOTION TO REFER BALLOT QUESTION: “I move to approve Resolution 21-20, referring a Short-Term Vacation Rental Tax question to the voters of the Town of Avon.” PROPOSED MOTION TO DIRECT STAFF (RECOMMENDED): “I move to direct Staff to continue studying a potential Use Tax and Short-Term Rental Tax for a potential future election, including proposing to Council the use of voter polling to determine potential support by Avon voters for such taxes.” Thank you, Paul and Eric ATTACHMENT A: Resolution 21-20 ATTACHMENT B: Report on Use Tax and Short-Term Rental Tax dated August 7, 2021 Res 21-20 Referring to the Voters a STR Excise Tax Question Page 1 of 2 RESOLUTION 21-20 REFERRING A PROPOSED SHORT-TERM RENTAL TAX BALLOT QUESTION TO AN ELECTION OF THE TOWN OF AVON WHEREAS, C.R.S. §31-11-111(2) authorizes the Town of Avon (the “Town”) to submit any question to the vote of the registered voter of the municipality by adoption of a resolution; and WHEREAS, C.R.S. §1-5-203(3)(a) provides the designated election official of each political subdivision must certify the ballot order and content for the 2021 Coordinated Election by September 3, 2021; and WHEREAS , Section 20 of Article X of the Colorado Constitution requires that all ballot questions calling for an increase in municipal taxes or multiple fiscal year debt be placed before the electorate only at a general election, biennial local election, or on the first Tuesday in November in odd- numbered years; and WHEREAS, pursuant to the Avon Home Rule Charter, state and federal law, the Town will participate in a coordinated election on November 2, 2021; and WHEREAS, the coordinated election to be held on November 2, 2021, is one of the election dates at which TABOR ballot issues may be submitted to the registered electors of the Town of Avon; and WHEREAS, the Town Council is of the opinion that it should refer to the voters at the November 2, 2021, coordinated election a ballot issue concerning the Town levying an excise tax for short-term vacation rental properties to finance the acquisition and construction of community housing through the Town of Avon’s Community Housing Fund; and WHEREAS, the Avon Town Council hereby finds, determines and declares that this Resolution will promote the health, safety and general welfare of the Avon community. NOW THEREFORE, BE IT RESOLVED, BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated by reference and adopted as findings and determinations of the Town Council. Section 2. Ballot Question. The Town Council hereby refers the following ballot question to the voters of the Town of Avon: SHORT-TERM RENTAL TAX SHALL THE TOWN OF AVON’S TAXES BE INCREASED BY ONE MILLION DOLLARS ($1,000,000) IN THE FIRST YEAR (2022), AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER BY LEVYING AN EXCISE TAX OF 2% ON THE AMOUNT CHARGED TO ANY PERSON LEASING A SHORT-TERM RENTAL UNIT, DEFINED AS LEASING ANY PROPERTY ASSESSED AS RESIDENTIAL BY THE EAGLE COUNTY ASSESSOR FOR A PERIOD LESS THAN THIRTY DAYS, ATTACHMENT A: Resolution 21-20 Res 21-20 Referring to the Voters a STR Excise Tax Question Page 2 of 2 FOR THE PURPOSE OF FUNDING COMMUNITY HOUSING, INCLUDING THE ACQUISITION OF LAND FOR HOUSING, CONSTRUCTION OF HOUSING, EXTENSION OF PUBLIC INFRASTRUCTURE TO SERVE COMMUNITY HOUSING DEVELOPMENT, PURCHASE OF DEED RESTRICTIONS, DOWN PAYMENT ASSISTANCE PROGRAMS, PARTNERSHIPS WITH PUBLIC AND PRIVATE ENTITIES TO DEVELOPMENT COMMUNITY HOUSING, AND RELATED COSTS FOR ADMINSTRATION, DESIGN, LEGAL AND CONSULTING, ALL IN ACCORDANCE WITH ORDINANCE NO. 21-____ ADOPTED BY THE AVON TOWN COUNCIL, AND SHALL THE TOWN BE PERMITTED TO COLLECT, RETAIN, AND EXPEND ALL REVENUES DERIVED FROM SUCH TAX AS A VOTER APPROVED REVENUE CHANGE AND AN EXCEPTION TO LIMITS WHICH WOULD OTHERWISE APPLY UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? ADOPTED this 24th day of August 2021. AVON TOWN COUNCIL By: __________________________________ Sarah Smith-Hymes, Mayor Attest: ________________________________ Brenda Torres, Town Clerk ATTACHMENT A: Resolution 21-20 970.748.4004 eric@avon.org TO: Honorable Mayor Smith Hymes and Council FROM: Eric Heil, Town Manager RE: Work Session: Use Tax and Sales Tax Ballot Questions DATE: August 5, 2021 SUMMARY: This report presents information and options for a Use Tax ballot question and a Short-Term Rental Tax ballot question for Council discussion and consideration. Both questions are presented as methods to establish a dedicated funding source for Community Housing. Council must take action to refer a ballot question or questions at the next Council meeting on August 24, 2021 if Council desires to refer a question to the November 2, 2021 general election. The Town of Avon is conducting the November 2, 2021 general election as a coordinated election with Eagle County, so the only extra cost for referring ballot questions is the cost of staff time to prepare voter information required by the Tax Payor Bill of Rights and prepare a factual statement with pro and con statements as allowed by the Fair Campaign Practices Act. Use Tax materials that were previously presented to Council and presented to the Finance Committee are attached to this report. REQUESTED DIRECTION: Direction is requested from Council if Staff should prepare a Resolution to refer one or both proposed ballot questions to the November 2, 2021 election and prepare first reading of an Ordinance to amend the Avon Municipal Code and implement one or both ballot questions if passed. USE TAX: Staff prepared materials for a Use Tax for construction materials to replace the current Sales Tax on construction materials. These materials were introduced to Council at the July 13, 2021 regular meeting and presented to the Finance Committee on July 19, 2021. The Colorado statutory scheme for Sales Tax contemplates the Use Tax as a complimentary and companion tax. A Use Tax to compliment a Sales Tax is very common. Vail, Red Cliff, Minturn, Eagle and Gypsum all have a Use Tax to compliment their Sales Tax at the same rate as their Sales Tax (except Gypsum – which as a 4% Sales Tax and 3% Use Tax). Vail adopted its 4% Use Tax in 2007 and the revenues are dedicated to capital improvements. Minturn adopted its 4% Use Tax in 2018 and it is dedicated to capital improvements. Red Cliff adopted its 3% Use Tax in 2020. Administration: Imposition of Sales Tax on construction materials is administratively cumbersome for the Town, contractors and material suppliers because it requires each vendor of construction materials to pay the Sales Tax separately. A Use Tax is very easy to administer because a formula is used that is applied at the time of building permit and is paid as one lump sum payment. The formula takes the estimated value of the building, assumes that ½ of the cost is for materials and ½ is for labor, and applies the Use Tax rate to the portion that is for materials. Example: New home construction estimated to be $1,000,000. Assumption is that 50% of the estimated value is for materials, or $500,000. A 4% Use Tax rate would amount to $20,000. Imposition of Use Tax versus Sales Tax: The Use Tax would be applicable for all construction projects that require a building permit, including remodels and additions that require a building permit. In addition, once the Use Tax is paid to Avon, any construction materials purchased in another municipality (i.e. Eagle, Lakewood, Glenwood Springs) would be exempt from paying up to 4% of a Sales Tax to another municipality. ATTACHMENT B: August 5, 2021 Report Page 2 of 7 Example: Contractor purchases $50,000 of construction materials in the City of Glenwood Springs for a project in Avon. The Contractor shows the 4% Use Tax payment in Avon when purchasing those supplies. The City of Glenwood Springs Sales Tax is 3.7%. The Contractor would be exempt from paying the 3.7% City of Glenwood Springs Sales Tax. The imposition of a sales tax on construction materials applied to any construction materials that are delivered on-site in Avon and construction materials that are purchased by a contractor outside of Avon and installed on-site in Avon. The imposition of a sales tax on construction materials does not apply when a home owner purchases construction materials outside of Avon and takes possession of those materials outside of Avon. For example, a Do-It-Yourself home remodel project owner who purchases building supplies outside of Avon and takes possession of those supplies (i.e. loads the supplies in truck) and drives back to Avon with those building supplies would not be required to pay the Avon sales tax on those building supplies because the retail sale occurred outside of Avon). Example: A DIY owner purchases $20,000 in materials to remodel a kitchen and the building permit valuation is $40,000. Under the 4% sales tax, the DIY owner does not pay any Avon sales tax if the building materials are purchased outside of Avon and the DIY owner picks up the materials outside Avon and transports the materials back to the house. Under a 4% Use Tax, the DIY owner would pay $800 at the time of applying for a building permit. Increase in Revenues: The imposition of a Use Tax on construction materials is expected to generate more revenues than the imposition of Sales Tax on construction materials. The average revenues for Sales Tax on construction materials for the last seven years has been $399,000 per year. The formula for a 4% Use Tax on construction materials would have generated on average $610,000 per year over the last ten years. A Use Tax on construction materials is expected to generate approximately 54% more revenues than a Sales Tax on construction materials. Allocation of Use Tax Revenue: The proposed ballot question would dedication 100% of the Use Tax revenues to the Community Housing Fund. An alternative is to dedicate 50% to the General Fund (or the Capital Improvements Fund) and 50% to the Community Housing Fund. The advantage of splitting the Use Tax revenue would be to not significant reduce current revenues that go to the General Fund and to allow 50% of revenues generated in the Village (at Avon) to be used for defeasance of debt paid by Town of Avon’s tax credit obligation. Splitting a 4% Use Tax 50% to General Fund (or CIP Fund) and 50% to Community Housing is estimated to generate $305,000 per year for the General Fund (or CIP Fund) and $305,000 to the Community Housing fund. We are currently discussing the potential applicability of a Use Tax in the Village (at Avon) with Traer Creek, LLC. The Use Tax revenues generated in the Village (at Avon) would need to be used in the Village (at Avon) during the period of tax credits under the terms of the existing Development Agreement. Implementation of Use Tax: The details of implementation and administration of a Use Tax occurs through adoption of Use Tax regulations in the Avon municipal code. Vail’s Use Tax regulations are attached as an example, which is fairly standard. FINANCE COMMITTEE REVIEW AND COMMENTS: The Finance Committee reviewed the proposed Use Tax on Construction materials had these comments and questions. My responses are provided in italics. ATTACHMENT B: August 5, 2021 Report Page 3 of 7 A. Does the Town think it’s leaving money on the table with the current sales tax? Yes, based on the typical Use Tax calculation formula and reviewing total value of construction, we estimate that the Town is only collecting 65% of the revenues that should be generated from a 4% Sales Tax on construction materials. B. The use tax would be paid on only 50 percent of the total construction cost because it is assumed that is the cost of materials vs. labor for most projects. What happens if some projects pay more or less than 50 percent of the total costs on supplies? A typical Use Tax ordinance, like Vail’s, would include provisions whereby the either the Town or the taxpayer could request an audit of the actual cost of construction materials use and if the results are less than the amount paid, the taxpayer would receive a refund within 30 days, or if more, the taxpayer would be required to pay the increased amount. In practice, audits are rarely performed because the details of the building are all shown at building permit level and it is common for both the Town and contractor to agree on the building valuation at the time of issuing a building permit. C. Besides easier administration, what are the other benefits of this tax? A Use Tax is much easier for contractors and does not require additional administration on their side. A Use Tax is expected to generate 54% more revenue than the Sales Tax on Construction materials because we anticipate the Use Tax will capture the revenue from the tax on the value of all construction materials rather than the Sales Tax on construction materials which is failing to collect nearly a third of the total retail transactions. D. Who is ultimately responsible for paying the tax? The property owner is ultimately liable and if there is a failure to pay the Use Tax, the Town may impose a lien on the property. Practically, the contractor pays the Use Tax at the time of applying for a building permit. E. Can the Town do more audits on the current construction material sales tax? Yes, the Town can perform more audits. Audits do create more work for Town, which is often performed by third party consultants, and create more work for contractors. The experience is unenjoyable all around which is a reason contractors tend to prefer the imposition of a Use Tax over the Sales Tax. F. Would the Town refund money if costs are lower than predicted? Yes, see the answer to B above. G. Are community housing projects exempt from this tax? Yes, we expect that AMC Chapter 3.14 Community Housing Incentives would be amended to exempt Use Tax from qualifying Community Housing projects. H. Tax exemptions up front are easier than refunds after the fact. True I. How much of the estimated construction value in Town last year came from big developers vs. private projects? We have not been able to compile that information. This information could be presented for the August 24, 2021 Council meeting. ATTACHMENT B: August 5, 2021 Report Page 4 of 7 J. Can the tax pay for staff working on community housing projects? Yes. Depending upon legal review of the final wording of the ballot question and the proposed amendments to the Avon Municipal Code to implement a Use Tax, this revenue source could be used to support all “soft” costs, including Town staff time. Currently, a portion of the Capital Improvements Fund and Real Estate Transfer Tax revenues are used to support the Engineering staff which implements and oversees Capital Improvements. K. Would part the revenue from the tax go towards community housing or all of it? Council direction would determine that. RECOMMENDATION: I recommend strong consideration for referring a 4% Use Tax ballot question to the Avon voters. The implementation of a Use Tax to compliment a Sales Tax is very common and has been adopted by all other municipalities in the Eagle River Valley in Eagle County. The benefit and efficiency in administration and collection would be a significant enhancement over the imposition of a Sales Tax on construction materials. A Use Tax that was dedicated 50% or 100% to Community Housing would create a dedicated revenue source that would support Community Housing efforts. The long-term benefits of more efficient administration and improved revenue collection of the Use Tax in the Village (at Avon) is substantial enough to warrant strong consideration for this reason alone. SHORT TERM RENTAL TAX: The Avon Finance Committee discussed a short-term rental tax. A Short- Term Rental Tax would be applicable to consideration received for a short-term rental (less than 30 days) for any property that is not assessed as a commercial property. Commercial Hotels (e.g. Comfort Inn) would not be required to pay a Short Term Rental Tax. Avon has received increased revenues from short-term vacation rentals since the Town has been able to enter into revenue collection agreements with major vacation rentals companies like Air BnB. Town of Crested Butte adopted a 5% “Excise Tax” on Short-Term Rentals in 2017 for affordable housing. Town of Telluride adopted a 2.5% “Excise Tax” on Short-Term Rental dedicated to affordable housing in November 2019. Projected Revenues: Based on 2019 Accommodation Tax numbers and calculating that Short-Term Rentals are approximately 2/3rds of the Town’s Accommodation Tax revenues, each 1% Short-Term Rental Tax is anticipated to generate $227,500. A 2% Short-Term Rental Tax would generate $455,000 and a 4% Short-Term Rental Tax would generate $910,000. Tax versus Regulations/Restrictions of Short-Term Rentals: Short-Term Rentals have gained attention during the current housing climate. Many mountain communities are considering restrictions on Short-Term Rentals. During a recent Colorado Association of Ski Towns meeting a number of mountain communities are currently discussing restrictions on Short-Term Rentals. Avon has restrictions in place for Wildridge for over 40 years. In addition, the Town core and valley floor area was built with many projects that are oriented towards second home owners and short-term rental and have in fact been purchased and used as second homes and short-term rentals. Any new restriction on Short-Term Rental in areas where Short- Term rentals are permitted and licensed will create property rights and non-conforming use legal issues. An additional tax on Short-Term Rentals has the advantage of financially discouraging Short-Term Rentals (i.e. increasing the financial incentive for long-term rentals) and helps to address a criticism that Short-Term ATTACHMENT B: August 5, 2021 Report Page 5 of 7 Rentals have an unfair advantage because they do not pay commercial property tax rates. The primary advantage of a Short-Term Rental Tax is that it would generate revenues that could be used to increase available Community Housing opportunities. FINANCE COMMITTEE REVIEW AND COMMENTS: The Finance Committee provided a series of comments and questions which addressed both a Short-Term Rental Tax and Use Tax. A. With most of Avon already developed, that use tax revenue would slow down in the upcoming years. This is likely true for the non-Village (at Avon) portion of Avon. If adopted this fall, a Use Tax is expected to apply to the Lot 1 development at Riverfront, the former Colorado Worlds Resort development, the Lot B hotel development adjacent to Town Hall, and the Lot 3 development between Town Hall and Sheraton Mountain Vista. A Use Tax may generate $3 to $4 million with the development of these four remaining large-scale properties. After that, large projects would only occur through redevelopment in the Avon Town Core area, which is too speculative to estimate at this time. The benefit of increased revenues in the Village (at Avon) should not be underappreciated. With a majority of the development in the Village (at Avon) yet to occur, the increased revenue from a Use Tax would accelerate the pay-off and satisfaction of the Town’s tax credit obligations under the Village (at Avon) Development Agreement. The Village (at Avon) has entitlements to construct 474,442 sq.ft. of commercial development and 1,916 more residential units. If one assumes construction cost is $400 per square foot and that average size of residential units is 1,500 sq.ft., the Use Tax could potential generate $25 million in revenues at full-build out, which would be an estimated increase of $8 million over the existing Sales Tax on construction materials. B. How are short-term rentals differentiated from hotels? Other communities that have adopted Short-Term Rental Taxes state that properties which are assessed as commercial properties are exempt. C. What is the likelihood that the accommodations tax would pass an election? Crested Butte and Telluride passed a Short-Term Rental Tax. I am not aware of any Short-Term Rental Taxes that have failed. I can offer my opinion with 29 years experience working on tax questions upon the original adoption of TABOR that a Short-Term Rental Tax is likely to pass by a very healthy margin. There is public perception that short-term rentals are a direct and substantial contributor to the current housing crisis and very, very few voters would pay this tax. D. The use tax will likely bring in less revenue than short-term rental tax and will be harder to pass an election. E. Some communities have taxes on second homes that sit empty, although there are challenges. I fully anticipate that any attempts to tax vacant homes will result in nicer housing for lawyers and no actual revenues for the Town to use for Community Housing. F. It seems that Colorado is the only state that doesn’t charge higher property taxes on second homes. My understanding is that there is technically not a higher tax rate on second homes, but that there are restrictions on raising property taxes on your primary home once ATTACHMENT B: August 5, 2021 Report Page 6 of 7 purchased. I also understand that there would need to be a Constitutional amendment in Colorado to implement this type of property tax. G. The short-term rental tax makes more sense than the use tax. H. It is hard to pass new taxes in Avon. True, past tax increase proposals have not been successful. Ultimately, the Avon voters decide. I. Should both taxes go on the ballot or one? If only one, which should go on it first? This is a political assessment by Council. I offer my opinion that both taxes are for an appropriate purpose and that the current community and political climate is supportive of action on community housing. I am not aware of any other competing tax increase question for the Avon jurisdiction this November. Both taxes together present a comprehensive approach to create a real housing program in Avon and these taxes do not tax the vast majority of voters and do not tax those who are most impacted by the current lack of affordable housing. J. It’s probably best to keep it simple on the ballot. The accommodations tax is the easiest to understand. K. Workforce housing is reaching a crisis point. People are seeing this and will vote for programs that fix the problem. L. Pair the tax ballot question with other community housing ballot questions to get people in a mindset to vote yes. M. The accommodations tax is the least controversial and voters are in a mood to support it. N. The use tax is more time sensitive. If it’s passed later the Town will lose revenue from big projects coming up soon, so it would be beneficial to put it on the ballot first. The accommodations tax has higher likelihood of passing but is less pressing right now. O. The public will want to know what specific projects the revenues will fund. Right now the language is too vague. Explaining pending Community Housing projects and programs is very important during an election process. It is not practical to identify specific projects or programs in the wording of the ballot question. P. Even though the use tax is replacing the construction material sales tax, people will view it as a new tax and disapprove. Q. If the use tax fails in 2021, can it go on the ballot again in 2022? Yes. Typically, when a tax or debt question does not pass, but is close, there is a follow-up process to determine if the tax or debt can be revised to respond to community concerns, and if so, then resubmitted to the voters again the following year. R. Is there time to identify exactly what projects the tax will fund? We can identify pending projects and potential proposed uses for the tax by November. We can also gather information on other mountain resort communities that have housing programs, how the funds are used, and what the community can expect over the next 10 to 20 years. ATTACHMENT B: August 5, 2021 Report Page 7 of 7 S. Approving a ballot initiative like this is in the public’s self interest as the housing shortage will eventually impact the economy and the face of the Town itself. RECOMMENDATION: I recommend strong consideration for a 2% Short Term Rental Tax with the revenues dedicated towards Community Housing because this would establish a dedicated funding source and would address in part some of the concerns over Short Term Rental Housing. Overall, I believe the timing is as good as possible for tax questions to support Community Housing. If both proposed ballot questions were referred to the Avon voters and both passed (i.e. a 4% Use Tax with 50% dedicated to Community Housing and a 2% Short-Term Rental Tax dedicated to Community Housing), Avon would have a dedicated revenue stream of approximately $765,000 for Community Housing each year. Thank you, Eric ATTACHMENT B: August 5, 2021 Report 970.748.4004 eric@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Eric Heil, Town Manager RE: Regional Transportation Authority DATE: August 19, 2021 SUMMARY: This memorandum provides an overview and background with regard to efforts to pursue a potential regional transit authority (“RTA”) to serve the Eagle River Valley. The attached Memorandum of Understanding Establishing a Regional Transit Authority Formation Committee (“MOU”) is the culmination of efforts over the last year at the Mayors and Managers meetings and the efforts of an Ad Hoc Regional Transit Optimization Committee that was formed out of a Mayors and Managers Meeting. An update and overview of the efforts of the Ad Hoc Regional Transit Optimization Committee was presented at the Avon Town Hall on July 20, 2021. There are many questions posed by the formation of an RTA. The attached MOU is intended to embark on the next level of structured regional collaboration and focus to understand the details of a potential RTA and implement a comprehensive outreach program to inform stakeholders and receive stakeholder input. REQUESTED ACTION: Approval of the Memorandum of Understanding Establishing a Regional Transit Authority Formation Committee. MOU OVERVIEW: The MOU proposes the formation of an RTA Formation Committee, an RTA Technical Committee and an RTA Community Stakeholders Committee. Eagle County, the Town of Vail and the Town of Avon are contemplated to fund Phase I of planning costs so that this effort is able to proceed by retaining a community outreach facilitator by October. The cost for Phase I of RTA planning is $30,000 to be split equally three ways among Vail, Eagle County and Avon (i.e. $10,000 each). Phase II contemplates funding contributions by all municipalities that would participate in this RTA planning effort in 2022. This effort is anticipated and desired to lead up to an election in November of 2022 to approve an RTA and may potentially include a tax funding question to support enhancements to regional transit services. The contemplated RTA would also include dedicated funding to support the Eagle Air Alliance and subsidies to secure new direct flights to Eagle County Regional Airport. Phase II of RTA planning is $170,000 which is proposed to be divided amongst the parties based on proportionality of respective operating budgets. Avon’s funding contribution share of Phase II would be $17,000 to $20,000. RTA FORMATION COMMITTEE: The RTA Formation Committee is composed of one representative of Eagle County and each municipality in Eagle County (not including Basalt). Monthly meetings will be scheduled for the RTA Formation Committee to review information, identify details and questions to address, provide input on the community stakeholder process, and ultimately provide direction on an RTA to be referred to voters. The MOU sets forth a list of minimum requirements in Paragraph 3 which tracks state statute. The group is seeking to schedule the first RTA Formation Committee meeting in September in order to provide background information on the formation of an RTA as well as other information that has been gathered over the last year. I have asked Mayor Sarah Smith Hymes to dedicate time to participate on this RTA Formation Committee. RTA TECHNICAL COMMITTEE: The RTA Technical Committee is a continuation of the Ad Hoc Regional Transit Optimization Committee that met over the last year with the addition of David Reid who would represent the Eagle County Regional Airport. The role of the RTA Technical Committee is to research information on estimated costs and logistics associated with various transit enhancement ideas. Page 2 of 2 RTA COMMUNITY STAKEHOLDERS COMMITTEE: This committee is envisioned to be open and inclusive to all the existing groups in the Eagle River Valley, and beyond such as Lake County and Leadville. The purpose is to facilitate community involvement. BEAVER CREEK-AVON-VAIL CONNECTOR: We explored the potential for a pilot project to run more frequent and free transit between Beaver Creek Village, Avon Station and Vail Village. The concept was to run during the entirety of the Beaver Creek ski season with a ½ hour schedule from 6:30am to 10:30am, then hourly to 2:30pm, then ½ hour to 6:00pm, then hourly to 10pm. The contemplated cost estimate was roughly $600,000 to be split between Avon/Beaver Creek/Vail and Eagle County on a 20/20/20/40 cost share basis. Although the four parties were agreeable in concept and we were able to identify the costs and logistics to run this route, Beaver Creek was not ready to make a funding commitment for this winter and there were significant challenges and apprehension about hiring another six transit drivers and securing two more low floor buses to operate this route. The exercise was worthwhile to collectively discuss and understand the cost and logistics to operate this type of route. In particular, it was instructive to understand the lead time and requirements necessary to acquire busses, properly outfit busses with communication equipment, and hire transit drivers, as well as prepare and executive a cost sharing agreement. As a consequence, I directed Staff to take no further action towards remodeling 351 Benchmark for transit driver housing. RECOMMENDATIONS: Staff for Town of Vail and Eagle County have indicated that they are proceeding to introduce the MOU to their respective governing bodies for approval in the next two weeks. I have the following recommendations concerning regional transit. 1. I recommend that Council approve the Memorandum of Understanding to Establish Regional Transit Authority Formation Committee 2. I recommend that Council support continued conversation with Beaver Creek, Vail and ECO Transit to pursue a winter connection route for the 2022/2023 Beaver Creek Ski Season with the appreciation and understanding that the conversation must continue now in order to achieve consensus and sort through all the logistics necessary for this transit connection. 3. Research, analyze and advocate for year-round free transit between Beaver Creek, Avon and Vail as one component of any Regional Transit Authority formation. PROPOSED MOTION: “I move to approve the Memorandum of Understanding to Establish Regional Transit Authority Formation Committee.” Thank you, Eric ATTACHMENT A: Memorandum of Understanding to Establish Regional Transit Authority Formation Committee ATTACHMENT B: RTA Overview Information from Colorado Legislative Service ATTACHMENT C: Regional Transit Authority planning effort presentation on July 20, 2021 RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 1 of 13 MEMORANDUM OF UNDERSTANDING ESTABLISHING A REGIONAL TRANSIT AUTHORITY FORMATION COMMITTEE STATEMENT OF PURPOSE – This Memorandum of Understanding (“MOU”) formalizes the agreement reached by the Eagle County government and municipalities within the contemplated boundaries of a Regional Transit Authority (“RTA”) in Eagle County on the commitment of staff and financial resources to a Regional Transit Authority Formation Committee (“RTA Formation Committee”) for the purpose of researching and proposing the structure of an RTA to serve the greater Eagle River Valley community pursuant to CRS §43-4-601 Regional Transportation Authority Law. WHEREAS, in January 2020 a joint meeting of the Beaver Creek and Vail Economic Advisory Councils was convened to discuss regional transportation challenges at which members of the private business community expressed strong support to improve and enhance regional transit; and WHEREAS, an ad-hoc group of Town Managers, Transit Directors, and business community leaders was convened soon afterwards to discuss, analyze, and identify challenges and opportunities related to greater coordination and integration of the regional public transportation system; and WHEREAS, separate conversations with the EGE Air Alliance have highlighted the importance of air transportation as part of the broader regional transportation system; and WHEREAS, each of these groups have identified the creation of a Regional Transit Authority (“RTA”) as a desirable way to plan, finance, implement and operate a regional public transportation system that better meets the needs of residents, visitors, and businesses in Eagle County; and WHEREAS, the local government entities now desire to proceed with preparation of a proposed RTA and comprehensive community engagement process with the intention to refer ballot questions for the formation of a RTA and a funding question to the November 1, 2022 general election. NOW, THEREFORE, the parties to this MOU agree as follows: 1. NO LEGAL OBLIGATIONS. This MOU is only a statement of intentions to facilitate coordination among parties and shall not be construed to create, and shall not in fact create, any financial obligations or liabilities for any party to this MOU. 2. ELIGIBLE PARTIES TO THIS MOU. The local government entities which are required to take action as part of the formation of a Regional Transit Authority and/or which currently fund and provide public transit service are eligible parties to this MOU, including but not limited to Eagle County government, and municipalities in Eagle County, or Title 32 special districts with transportation powers, which are located within the boundaries of a proposed Regional Transit Authority area. 3. RTA FORMATION COMMITTEE. The RTA Formation Committee shall consist of one representative of each party to this MOU. Each party may designate a primary representative and alternates in its ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 2 of 13 discretion which shall be limited to elected officials and full-time staff persons. The RTA Formation Committee shall also have the following organization duties: (a) Select a chair and vice chair; (b) Establish a meeting schedule and timeline for completion of activities; (c) Provide parameters for staff support for the RTA Formation Committee provided by participating entities; (d) Establish a schedule for communications and meetings with municipal staff and elected officials to inform them on status and upcoming developments; (e) Review the Scope of Work for third party facilitators and consultants to assist with community engagement and the RTA formation process; (f) Determine the details of a proposed RTA, including but not limited to: (1) Determine the name and purpose of the RTA, including an explanation of all regional transportation systems to be provided and preliminary expectations regarding types and service levels; (2) Determine geographic boundaries, districting, and rules for modification of a regional public transportation authority; (3) Determine the form of governance and board representation on the RTA; (4) Recommend an initial organizational structure and staffing for the RTA; (5) Recommend the structure of the relationship with existing transit systems, including recommendations related to the transfer of assets, liabilities, or personnel; (6) Analyze potential dedicated funding sources and structures for public transportation and make recommendations regarding type and level; (7) Recommend the structure of the relationship with the EGE Air Alliance, including recommendations related to structure, governance, and fiscal authorities; and (8) Develop a proposed IGA, meeting the requirements of C.R.S. § 43-4-601, for signature by interested and eligible entities. (g) Determine the details and wording on any ballot measures to be referred to the voters for the formation of an RTA; and (h) Provide legal, financial, marketing and political support for a potential future ballot measure. ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 3 of 13 4. RTA TECHNICAL COMMITTEE. The Ad Hoc Technical Committee will continue for the purpose of sharing information, analyzing costs, and submitting feedback associated with various proposals for regional transit enhancement generated by the RTA Formation Committee. In addition, they will assist in identifying operational issues related to proposed structures that may require additional consideration by the RTA Formation Committee. The RTA Formation Committee may change, amend, supplement, fill vacancies or remove any person on the RTA Technical Committee without notice or cause. The RTA Technical Committee may invite or add other persons or representation from other entities that may provide relevant technical advice and information. The RTA Technical Committee shall consist of the following members unless and until changed by the RTA Formation Committee: (a) Tanya Allen, ECO Transit Director; (b) Jen Brown, Managing Director Beaver Creek Resort Company; (c) Paul Gorbold, Beaver Creek Transit Manager; (d) Scott Robson, Vail Town Manager; (e) Greg Hall, Vail Public Works and Transportation Director; (f) Brandy Reitter, Eagle Town Manager (g) Chris Romer, Vail Valley Partnership and Eagle Air Alliance; (h) Brian Nolan, representative of Beaver Creek and Vail Economic Advisory Councils; (i) Eva Wilson, Avon Mobility Director; (j) Eric Heil, Avon Town Manager; and, (k) David Reid, Director of Aviation, Eagle County Regional Airport. 5. RTA COMMUNITY STAKEHOLDERS COMMITTEE. The RTA Community Stakeholders Committee shall consist of all interested local governments that are not parties to this MOU, interested non-profit or community organizations, and interested private business entities that desire to participate on the RTA Community Stakeholder Committee. The purpose of the RTA Community Stakeholder Committee is to facilitate the community engagement process, including the sharing and dissemination of information related to the RTA, facilitate broader understanding of the RTA formation process and the technical and financial aspects of proposed RTA operations, and facilitate providing broad community input to the RTA Formation Committee. The scheduling, organization and conduct of RTA Community Stakeholder Committee meetings shall be facilitated by a third party consultant as contemplated in this MOU. 6. CONTEMPLATED ROLES OF AN RTA. The specific roles of an RTA would be researched and determined during the study and community engagement process. The following list describes the potential roles of an RTA that are being contemplated at the time of executing this MOU. Parties to the ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 4 of 13 MOU acknowledge and agree that the roles of a RTA as may be ultimately referred to election are expected to be revised and refined through the community engagement process. (a) Assume some or all operations, assets and functions of ECO Transit; (b) Assume some or all operations, assets and functions of the Eagle Air Alliance; (c) Continue planning and development for the enhancement and operation of regional transportation system in the Eagle River Valley, to include operation and/or financial support for multimodal surface and air transportation; (d) Study, design, financially support and implement, with partnerships as appropriate, first and last mile improvements to enhance transit ridership, including but not limited to the development of park and ride facilities, bus stops, and pedestrian crossings; (e) Study, design, financially support and implement, with partnerships as appropriate, improvements to the regional transit system to support, advance and achieve climate action goals, including but not limited to conversion of bus fleet to zero or reduced greenhouse gas emission rolling stock, zero or reduced greenhouse gas emission transit facilities, and increase of transit ridership that reduces passenger vehicle miles travelled; (f) Coordinate with the Colorado Department of Transportation (“CDOT”) and federal governing agencies to enhance regional transit, including but not limited to improvements to connections to the RTA area via Bustang and other statewide bus programs and increased air service to the Eagle County Regional airport; (g) Represent the Eagle County RTA area with regard to state and federal legislation affecting available funding to support regional transit operations and with regard to legislation affecting operations; and (h) Study, design, financially support and implement, other regional transportation and mobility programs and operations, such as regional e-bike sharing programs. 7. RETAINING THIRD PARTY FACILITATORS AND CONSULTANTS. A central purpose of this MOU is to reach an understanding on the retaining of third party facilitators and consultants to assist with the administrative, legal, and technical details in the formation of an RTA, assist with the community engagement process, and assist with determining consensus and community support for any ballot issues which may be referred to the voters. The Scope of Work for any third party facilitators and/or consultants shall be reviewed and approved by the RTA Formation Committee. Third party facilitators and consultants will be retained by Eagle County pursuant to such contract terms as may be approved by Eagle County in its discretion and Eagle County shall be responsible for the administration of such contracts. 8. FUNDING CONTRIBUTION. Funding contributions for third party facilitators and/or consultants should be based on the proportionate share of population within the jurisdiction of each respective local government party to this MOU (meaning the Eagle County population less the population within ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 5 of 13 municipal jurisdictions that are parties to this MOU). Parties to this MOU may agree to any other arrangement for funding contributions. An initial funding contribution is necessary to retain thirty party facilitators and consultants to commence Phase 1 work in 2021. An additional funding contribution is necessary for the Phase 2 work which is expected to begin in the 2022 budget year. (a) Phase 1 Funding Contribution: $30,000 is the contemplated budget to commence the work of the RTA Formation Committee in 2021, which is comprised of a budget for facilitation of committee meetings, initial community outreach, facilitating and coordinating research and consideration of transit enhancement ideas and associated funding, initial research on funding options, compiling comparison information of other regional transit authorities and preparing RTA presentation materials. Eagle County, the Town of Vail and the Town of Avon have offered to share this expense equally ($10,000 each). (b) Phase 2 Funding Contribution: $170,000 is the contemplated budget to continue the work in 2022, which is comprised of a $140,000 to continue community engagement work, assist with revision to an RTA proposal including financial modelling of different options and scenarios, revise and update RTA presentation materials, and assist with the determination of any referred ballot measures and associated factual statements and information presentations related to the formation of an RTA; and a $30,000 budget for legal advice and assistance related to RTA formation and associated funding questions. (c) Additional Funding Contributions: The parties to the MOU may consider funding additional activities such as political polling by mutual agreement at a later date. 9. ADMINISTRATIVE SUPPORT. The Eagle County Regional Transportation Authority (“ECRTA”), as a department of Eagle County Government and the current regional transportation provider, has been engaged in the planning, design, and development of a regional transit system for Eagle County. ECRTA will provide administrative, technical and planning assistance to the RTA Formation Committee until the establishment of a statutory RTA, with assistance from other entities as may be mutually agreed. ECRTA’s responsibilities will include but not be limited to the following: (a) Assist the RTA Formation Committee in engaging professional and consulting services to manage the work of the RTA Formation Committee; (b) Act as the fiscal agent of funds received from the signatory municipalities of this MOU; (c) Disperse appropriate payments of funds for services rendered specifically to the RTA Formation Committee, including those of contracted consultants; (d) Serve as the applicant for any appropriate grant funding opportunities for which the RTA Formation Committee may be eligible for its work; (e) Act as the contracting party for any agreements to be entered into on behalf of the RTA Financial Committee. ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 6 of 13 10. TERM. The term of this MOU shall end on November 1, 2022 unless the parties to this MOU extend the term of this MOU by written agreement. 11. TABOR. This MOU shall not create any multi-year fiscal obligation of any party to this MOU and any funding contribution or other financial commitment shall be subject to annual budget and appropriation of each party. [SIGNATURE PAGES FOLLOW] ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 7 of 13 EAGLE COUNTY BY: ____________________________________________________ Date:___________________ ATTEST:________________________________________________ ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 8 of 13 TOWN OF AVON BY: ____________________________________________________ Date:___________________ Sarah Smith Hymes, Mayor ATTEST:________________________________________________ Brenda Torres, Town Clerk ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 9 of 13 TOWN OF EAGLE BY: ____________________________________________________ Date:___________________ ATTEST:________________________________________________ ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 10 of 13 TOWN OF GYPSUM BY: ____________________________________________________ Date:___________________ ATTEST:________________________________________________ ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 11 of 13 TOWN OF MINTURN BY: ____________________________________________________ Date:___________________ ATTEST:________________________________________________ ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 12 of 13 TOWN OF RED CLIFF BY: ____________________________________________________ Date:___________________ ATTEST:________________________________________________ ATTACHMENT A: MOU RTA Formation Committee Memorandum of Understanding – DRAFT August 19, 2021 Page 13 of 13 TOWN OF VAIL BY: ____________________________________________________ Date:___________________ ATTEST:________________________________________________ ATTACHMENT A: MOU Colorado Legislative Council Staff Room 029 State Capitol, Denver, CO 80203-1784 (303) 866-3521 •FAX: 866-3855 •TDD: 866-3472 leg.colorado.gov/lcs E-mail: lcs.ga@state.co.us M E M O R A N D U M September 14, 2017 TO:Interested Persons FROM:Ryan Long, Fiscal Analyst, 303-866-2066 SUBJECT:Regional Transportation Authorities Regional Transportation Authorities Under Colorado law, municipalities, counties, and special districts can join together in a “combination” to create a regional transportation authority (RTA) to address transportation needs within a specific geographic region. The state of Colorado, acting through the Transportation Commission and with approval from the Governor, may also join a contract creating an RTA. Establishment of an RTA.To establish an RTA, the combination of governments seeking to create it must submit a copy of their contract to the Colorado Department of Transportation (CDOT) for review and comment, as well as to any affected public highway authority, county or municipality that borders the proposed RTA. A copy of the contract must also be sent to the Regional Transportation District (RTD), which creates and maintains a transit system primarily in the Denver metropolitan area, if it borders the proposed RTA. These contracts include information on the name and purpose of the authority, the establishment and operations of the board of directors, the boundaries of the authority, and the term of the contract. No municipality, county, or special district may enter into a contract establishing an RTA without holding at least two public hearings. In order to take effect, a contract must be approved by the registered voters within the boundaries of the district. RTA authority.RTAs have the authority, through a board, to finance, construct, operate, or maintain regional transportation systems within or outside their boundaries. RTAs must be governed by a board of directors with at least five elected officials from the members of the combination of governments, and must include at least one elected official from each member. An RTA board may adopt bylaws, make and pass orders and resolutions necessary for the governance of the authority, maintain offices and hire employees, and amend the contract that created the authority. Summary This memorandum provides information concerning regional transportation authorities (RTAs). Specifically, it provides an overview of state laws pertaining to RTAs, RTAs currently established, powers of and financing mechanisms available to RTAs, and sales and use taxes levied in each of the five currently operational RTAs. ATTACHMENT B: RTA Overview - 2 - An RTA is prohibited from constructing a transportation system outside of its boundaries or within the boundaries of a municipality or county without the consent of that entity’s governing body. If the RTA’s proposed transportation system affects, alters, or negatively impacts the road systems controlled by CDOT, RTD, or any bordering entities, the impacted entity may enter into an intergovernmental agreement with the RTA to address the identified services before a proposal is submitted to registered electors. If no agreement is established, the transportation project affecting the other entity must be taken off of the list of projects specified in the contract. RTA boards may also create local improvement districts (LIDs) within their boundaries to facilitate the financing, construction, operation, or maintenance of regional transportation system improvements. The LID is a localized geographic area in which improvements are constructed, and revenue for these projects is primarily raised through a special assessment process. To establish an LID, the RTA board must receive a petition from the owners of the property that will bear the majority of the cost assessment on the proposed improvements, as well as a petition from registered electors in the proposed district. RTA financing.State law authorizes RTAs to establish, collect, and increase or decrease tolls, rates, and charges to finance a transportation system. RTAs may also levy sales taxes, impose an annual motor vehicle registration fee, levy a visitor benefit tax, impose a uniform mill levy, establish regional transportation activity enterprises, and issue bonds, as shown in Table 1. RTA taxation questions and multi-year debt questions must be submitted to the registered electors residing within the authority's boundaries for approval. Unless specified in an intergovernmental agreement, any funds made available for an RTA's transportation system may not be used to supplant existing or budgeted CDOT funding for any portion of the state highway system within the territory of any RTA or any transportation planning region. Table 1 Financing Mechanisms for Regional Transportation Authorities Financing Mechanism Provisions Statutory Citation Sales or Use Tax RTAs may levy a sales or use tax, or both, of not more than 1 percent upon every transaction with respect to which a sales or use tax is levied by the state. If a member of the RTA is located within more than one authority, the total sales and/or use tax may not exceed 1 percent. The RTA may levy a sales or use tax at differing rates in designated parts of the authority. However, if the authority includes territory within the RTD's boundaries, the rate of the tax must be levied in such a way that the rate of tax within the territory of any single member of the combination is uniform. Section 43-4-605 (1)(j)(I), C.R.S. Annual Motor Vehicle Registration Fee RTAs may impose an annual motor vehicle registration fee of not more than $10 for each motor vehicle registered within any or all portions of the RTA boundaries. If a motor vehicle is registered in a county that is a member of more than one RTA, the total motor vehicle registration fees for that vehicle may not exceed $10. Section 43-4-605 (1)(i), C.R.S. ATTACHMENT B: RTA Overview - 3 - Financing Mechanism Provisions Statutory Citation Visitor Benefit Tax RTAs may levy a visitor benefit tax on those purchasing overnight rooms or accommodations within the RTA's boundaries. The visitor benefit tax may not exceed 2 percent of the price of the overnight room or accommodation. Further, at least 75 percent of the revenue derived from the tax must be used by the RTA to finance, construct, operate, and maintain the RTA's regional transportation system and to provide incentives to overnight visitors to use public transportation. No more than one-third of the RTA’s total revenues may be derived from this tax. Section 43-4-605 (1)(i.5), C.R.S. Mill Levy*RTAs may impose a uniform mill levy of up to five mills on all taxable property within the territory of the authority. Imposing such a levy does not affect the power of an authority to establish LIDs and impose special assessments. Section 43-4-605 (1)(j.5)(I), C.R.S. Regional Transportation Activity Enterprises RTAs may establish one or more enterprises. The enterprise must be owned by the entire authority, and may not be combined with another enterprise owned by a separate RTA. Enterprises may issue or reissue revenue bonds, and contract with other governmental or private entities for loans and grants related to the enterprise's functions. Section 43-4-606, C.R.S. Bonds Pursuant to a resolution of its board, an RTA may issue bonds for any of its corporate purposes. Section 43-4-609, C.R.S. Source: Legislative Council Staff. *This provision is currently set to repeal January 1, 2029. The only RTA that has imposed a mill levy is the San Miguel Authority for Regional Transportation. Current RTAs.The following five RTAs are currently operating in Colorado: •Gunnison Valley Transportation Authority; •Pikes Peak Rural Transportation Authority; •Roaring Fork Transportation Authority; •San Miguel Authority for Regional Transportation; and •South Platte Valley Regional Transportation Authority. The Baptist Road Rural Transportation Authority, which was created to provide a funding mechanism for improvements to Baptist Road in a portion of Monument, Colorado, was dissolved in December 2016 after raising sufficient funding to pay off bonds. Table 2 summarizes the current and former RTAs in Colorado, including membership and respective sales, use, and property tax rates. The scope and types of projects in RTAs can vary widely. For example, the Roaring Fork Transportation Authority operates the largest RTA public transit system, and utilizes 106 buses with 153 bus stops and 14 park-and-ride lots. RTAs also engage in large capital projects, such as the $4 million Chestnut Street Bridge Replacement undertaken in 2016 by the Pikes Peak Rural Transportation Authority. ATTACHMENT B: RTA Overview - 4 - Table 2 Regional Transportation Authority Sales, Use and Property Tax Rates Authority Member Municipalities and Counties Sales Tax Rate Use Tax Rate Property Tax Gunnison Valley Rural Transportation Authority Gunnison County, excluding the municipalities of Marble, Ohio, Pitkin, and Somerset 1.0%None None Pikes Peak Rural Transportation Authority El Paso County, excluding the municipalities of Calhan, Fountain, Monument, and Palmer Lake 1.0%1.0%None Roaring Fork Transportation Authority Cities of Basalt and New Castle 0.8%0.8%None Cities of Carbondale and Glenwood Springs 1.0%1.0%None Cities of Aspen and Snowmass Village, and unincorporated Pitkin County 0.4%0.4%None Areas of unincorporated Eagle County in the El Jebel area and outside the city limits of Carbondale 0.6%0.6%None San Miguel Authority for Regional Transportation City of Telluride and eastern San Miguel County (excluding towns of Ophir and Sawpit) 0.25%None 0.75 mills South Platte Valley Regional Transportation Authority City of Sterling 0.1%0.1%None Former Regional Transportation Authorities Authority Member Municipalities and Counties Sales Tax Rate Use Tax Rate Property Tax Baptist Road Rural Transportation Authority* A portion of the city of Monument 1.0%1.0%None Source: Colorado Department of Revenue. *The Baptist Road Rural Transportation Authority stopped collecting sales and use tax on July 1, 2016, and was dissolved in December 2016. S:\LCS\MEMOS\2017\Regional Transportation Authorities_8302017.docx ATTACHMENT B: RTA Overview Regional Transit Optimization Project July 20, 2021 Regional Transit Optimization Project July 20, 2021 AD HOC TECHNICAL COMMITTEE: Tanya Allen –ECO Transit Director Greg Hall –Vail Public Works Scott Robson –Vail Town Manager Brandy Reitter –Eagle Town Manager Brian Nolan –Business Owner Chris Romer –Vail Valley Partnership Paul Gorbold –Vail Resorts Jen Brown –Beaver Creek Resort Company Eva Wilson –Avon Mobility Director Eric Heil –Avon Town Manager Regional Transit Optimization Project July 20, 2021 PURPOSE of this meeting •Review efforts and ideas to date of the Ad Hoc Regional Transit Optimization Committee with ECO Transit board and other stakeholders •Begin the dialogue with stakeholders and the greater community •Proceed with community process to research and define a Regional Transit enhancement program and formation of a Regional Transit Authority Regional Transit Optimization Project July 20, 2021 Review Process to Date: •January, 2020: Meeting of Vail and Beaver Creek Economic Advisory Councils to discuss improvements to transit •August 21, 2020 –Outline for Regional Transit Optimization Project effort presented to Mayors and Managers •Mayors and Managers supported formation of Ad Hoc Technical Committee to review concept and initial details •Meetings Ad Hoc Committee held a series of meetings in fall of 2020 and winter 2021 •June 11, 2021 –Mayors and Managers meeting: Consensus to focus on proposal for formation of a Regional Transit Authority Regional Transit Optimization Project July 20, 2021 Planning Goals 1.Enhance Transit Service and Increase Ridership 2.Explore Administrative and Operational Efficiencies 3.Research a Regional Transit Authority Specific Transit Enhancements to Explore 1.Improvements to frequency and pricing for ECO routes 2.Free and frequent transit between Vail and Beaver Creek ski resorts 3.Establish Eagle –Gypsum route 4.Climate Action Goals: electric busses, increased ridership Regional Transit Optimization Project July 20, 2021 Ad Hoc Technical Committee Findings 1.Strong need to hire professional to assist with community outreach and coordination 2.Limited need to hire a technical consultant to analyze transit operations and options 3.Need for an employee survey to supplement recent CAC Transit Opinion Survey 4.Define a process to research options and costs, conduct comprehensive and effective community engagement, formulate proposal, and refer to an election 5.Inclusion of Eagle Air Alliance into a comprehensive regional transit enhancement plan is desired Regional Transit Optimization Project July 20, 2021 County Wide Employee Survey: •Climate Action Collaborative conducted a transit opinion survey in 2020 •Need and benefit has been identified to conduct a similar opinion survey that targets employees through their employers [i.e. ‘Complete this survey!’] •Target date: Fall, 2021 •Use Intercept Insight as local opinion survey company that conducted CAC transit survey •Estimated Cost: $20,000 to $30,000 •$10,000 Grant Funding received from DOLA Regional Transit Optimization Project July 20, 2021 Proposed Pilot Transit Projects 1.Eagle-Gypsum Connector (fare free) 2.Vail-Beaver Creek ski season connector (fare free) Details, estimated costs and structure of partnerships are currently being determined. Regional Transit Optimization Project July 20, 2021 Eagle Air Alliance 1.Dedicated and reliable funding source to replace existing annual funding raising 2.Increase of funding to support expanded air service to Eagle County Regional Airport 3.Economic benefit with incoming visitors; community benefit for increased connections to hub airports Regional Transit Optimization Project July 20, 2021 Next Steps Memorandum of Understanding •Define goals and process •Hire community facilitator(s) and consultant(s) to assist with community engagement process •Address cost sharing •Conduct employee survey on transit needs and preferences •Potential November 1, 2022 Election Date for formation of Regional Transit Authority and tax funding question Regional Transit Optimization Project July 20, 2021 Next Steps Memorandum of Understanding •Parties to the MOU are expected to include the entities currently providing transit and other interested stakeholders •Community engagement process will likely be led by a committee comprised of elected officials with the Ad Hoc transit group continuing to provide technical information and recommendations •Schedule of meetings and presentations to be determined, expected to be an iterative process that incorporates community input and then solicits further community input on revised proposal Regional Transit Optimization Project July 20, 2021 Next Steps Regional Transit Authority •Determination of boundary area (expected to not include Basalt) •Definition of Services (inclusion of Eagle Air Alliance in addition to regional transit services) •Determination of process for adoption (required election by each existing municipality that would be within the proposed boundary area, timing of elections) •Determination of cost of enhancements and additional funding that is supported by the community Regional Transit Optimization Project July 20, 2021 Regional Transit Optimization Project July 20, 2021 Regional Transit Optimization Project July 20, 2021 Contacts: Tanya Allen, tanya.allen@eaglecounty.us Eric Heil, eheil@avon.org 970-748-4045 jhildreth@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Justin Hildreth, Town Engineer RE: Notice of Award – Mikaela Way & Town Hall Asphalt Overlay DATE: August 17, 2021 SUMMARY: Authorize Staff to issue Notice of Award for construction of the Mikaela Way & Town Hall Asphalt Overlay Project as approved in the Town of Avon 2021 Capital Projects Fund. DISCUSSION: The Mikaela Way & Town Hall Asphalt Overlay Project generally consists of asphalt milling, concrete curb and sidewalk replacement in select areas, replacement of concrete curb ramps to achieve ADA compliance, asphalt repair, asphalt overlay and pavement marking along the length of the road and in the Town Hall parking lot. Staff advertised the Mikaela Way & Town Hall Asphalt Overlay Project for (3) weeks in local newspapers, and on Bidnet.com. The Bid Opening was held on August 5, 2021 and two bids were received: GM Asphalt Repair LLC with a bid of $257,240 and 360 Paving LLC at $297,021, Each of the submitting contractors are based in Gypsum, CO. Bids were vetted and Staff recommends the construction contract be awarded to 360 Paving LLC for the following reasons: • GM Asphalt Repair LLC does not have a demonstrated history of constructing projects of similar size and scope within a public right of way • GM Asphalt Repair LLC does not have a demonstrated history of performance as a General Contractor managing other disciplines and subcontractors • The bid submitted by GM Asphalt Repair LLC included discrepancies • The Town has completed successful projects with 360 Paving LLC in the past, most recently the Eaglebend Drive Asphalt Overlay Project in 2020. • 360 Paving LLC has been in business since 2015 however many current employees have worked with other asphalt paving contractors in the Eagle River Valley since 1990. Construction Schedule: The proposed work is tentatively scheduled to begin in early September and will take approximately 4-weeks to complete. Contractually, the work must be completed by October 24, 2021 as the Town is again hosting an Eagle County election beginning on October 25, 2021. Liquidated damages will be assessed at $800 / Day after October 24, 2021 a nd have been approved by the Town Attorney. FINANCIAL CONSIDERATIONS: The construction Contract for the Project will be funded from the 2021 Street Improvements Projects as approved in the Town of Avon 2021 Capital Projects Fund. The Project cost estimate is shown in Table 1 below and includes 10 % contingency. Page 2 of 2 Table 1: Mikaela Way & Town Hall Asphalt Overlay Project Cost Estimate Available Funds Budget $350,000 Construction Cost $297,021 Geotechnical Testing Services $7,000 Contingency (10 %) $29,702 Total $333,723 RECOMMENDATION: Staff requests Council authorization to award the Mikaela Way & Town Hall Asphalt Overlay Project Contract to 360 Paving LLC in the amount of $297,021. PROPOSED MOTION: Motion to authorize issuance of Notice of Award for the Mikaela Way & Town Hall Asphalt Overlay Project contract to 360 Paving LLC, in the amount of $297,021 as approved in the Town of Avon 2021 Capital Projects Fund. Thank you, Justin 970-748-4045 jhildreth@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Justin Hildreth, Town Engineer RE: Notice of Award – Harry A. Nottingham Park Phase 2 Lighting Project DATE: August 19, 2021 SUMMARY: Authorize Staff to issue Notice of Award for construction of the Harry A. Nottingham Park Phase 2 Lighting Project as approved in the Town of Avon 2021 Capital Projects Fund. DISCUSSION: The Harry A. Nottingham Park Phase 2 Lighting Project generally consists of installation of 30 bollard light fixtures, panel upgrades, trenching, wire and conduit. In addition, spare conduit will be installed for future fiber to serve the park Wi-Fi system. The bollard lights will be installed on the park path on the dam and west to the tennis courts. The project does not include lights around the Former Town Hall site which will be included as part of the East Park Restroom Project. Staff advertised the Harry A. Nottingham Park Phase 2 Lighting Project for (3) weeks in local newspapers, and on Bidnet.com. The Bid Opening was held on July 16, 2021 and two bids were received: Tri Phase Electric with a bid of $242,221 and RA Nelson at $354,806. Tri Phase Electric is based in Gypsum, CO and RA Nelson is based in Eagle-Vail, CO. Bids were vetted and Staff recommends the construction contract be awarded to Tri Phase Electric for the following reasons: • Tri Phase Electric has a 40-year history of successfully completing projects in the Vail Valley • Tri Phase Electric’s employees reside in the Vail Valley • The Town has completed successful projects with Tri Phase Electric in the past, most recently the new Town Hall project. Construction Schedule: The bollard light fixtures will be ordered if Council authorizes issuance the Notice of Award and the bollard light fixtures have 6-week lead time. The installation work is tentatively scheduled to begin in early October and will take approximately 4-weeks to complete. Contractually, the work must be completed by December 31, 2021. Liquidated damages will be assessed at $500 / Day after December 31, 2021 and have been approved by the Town Attorney. The existing lights will not be removed until the new bollard light fixtures are installed and operating. Page 2 of 3 FIGURE 1: PHASE 2 LIGHTING PROJECT - PATHS IN RED WILL HAVE NEW BOLLARD LIGHTS FINANCIAL CONSIDERATIONS: The construction Contract for the Project will be funded from the 2021 Street Improvements Projects as approved in the Town of Avon 2021 Capital Projects Fund. The Project cost estimate is shown in Table 1 below and includes 16 % contingency. The bids came in over the project budget of $190,000 because of the high construction inflation environment, the addition of spare conduit for future park fiber, and special event power near the fitness court to the project scope. Resolution 21-19, Capital Projects Fund Budget Supplemental Amendment, includes increasing the project budget to $282,000. Staff recommends increasing the budget to $282,000 to include a project contingency and additional fiber optic conduit that is currently being identified. Table 1: Harry A. Nottingham Park Phase 2 Lighting Project Original Project Budget $190,000 Construction Cost $242,221 Contingency (16 %) $38,989 Total Recommended Project Budget $281,200 RECOMMENDATION: Staff requests Council authorization to award the Harry A. Nottingham Park Phase 2 Lighting Project to Tri Phase Electric in the amount of $242,221. PROPOSED MOTION: Motion to authorize issuance of Notice of Award for the Harry A. Nottingham Park Phase 2 Lighting Project contract to Tri Phase Electric, in the amount of $242,211 as approved in the Town of Avon 2021 Capital Projects Fund. Page 3 of 3 Thank you, Justin AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 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 Part One The meeting was hosted in a Hybrid format, in person at Avon Town Hall and using Zoom.us. Mayor Pro Tem Phillips called the Council regular meeting to order at 5:00 p.m. A roll call was taken, and Council members present in person were Scott Prince, Tamra Underwood, Chico Thuon, and RJ Andrade. Mayor Smith Hymes joined virtually via Zoom and Councilor Hardy was absent. Also present were Recreation Center Interim Director Michael Labagh, Chief of Police Greg Daly, Town Attorney Paul Wisor, Town Manager Eric Heil, and Town Clerk Brenda Torres. 2. APPROVAL OF AGENDA Video Start Time: 00:00:40 Part One There were no changes made to the agenda. Mayor Smith Hymes joined via Zoom and thanked Mayor Pro Tem Phillips for running the meeting tonight. Councilor Underwood moved to approve the agenda as presented. Councilor Andrade seconded the motion and the motion passed unanimously. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS Video Start Time: 00:01:35 Part One Councilor Underwood said, that although she believes she did not have a conflict of interest on the July 13th meeting, majority of Council voted to recuse her on the work session item regarding the recall election. Therefore, she will not be joining in on item 5.3 recall election update and item 5.4 Resolution 21-18 regarding recall election IGA and dates for the recall election. Mayor Smith Hymes said that she is in the same position as Councilor Underwood, however, she requested Council to allow her to participate on item 5.3 if Council members find this appropriate. She recused from item 5.4. After Council discussion, four motions were made. Councilor Prince moved to recuse Councilor Underwood on a conflict of interest on item 5.3. Councilor Thuon seconded the motion and the motion passed with a vote of 3 to 1. Mayor Pro Tem Phillips voted no. Councilor Underwood and Mayor Smith Hymes were recused. Councilor Hardy was absent. Councilor Prince moved to recuse Mayor Smith Hymes on a conflict of interest on item 5.3. Councilor Andrade seconded the motion and the motion passed with a vote of 3 to 1. Mayor Pro Tem Phillips voted no. Councilor Underwood and Mayor Smith Hymes were recused. Councilor Hardy was absent. Councilor Prince moved to recuse Councilor Underwood on a conflict of interest on item 5.4. Councilor Thuon seconded the motion and the motion passed with a vote of 4 to 0. Councilor Underwood and Mayor Smith Hymes were recused. Councilor Hardy was absent. AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Councilor Prince moved to recuse Mayor Smith Hymes on a conflict of interest on item 5.4. Councilor Andrade seconded the motion and the motion passed with a vote of 4 to 0. Mayor Pro Tem Phillips voted no. Councilor Underwood and Mayor Smith Hymes were recused. Councilor Hardy was absent. 4. PUBLIC COMMENT Video Start Time: 00:09:30 Part One Mayor Pro Tem Phillips explained to the public that comments in person will be taken first, then those via Zoom. Comments made in-person: Paul Jenick, member of the Recall Committee, asked what he has done wrong. He mentioned that on December 2nd an Officer from the Eagle County Courts knocked on his door in an unfriendly way, saying the Avon Council is suing him for over $100K, when they were simply asking for a recall. Tamera Sturgill, a member of the Recall Committee, said she found out that she got sued from the newspaper. No one from the Town notified her. She said “rules cannot be changed in the middle of the game” and that her legal fees are 10 times higher than the amount mentioned in the newspaper. Todd Roehr, a member of the Recall Committee, commented on Town Attorney Paul Wisor statements. He said documents regarding the recall process will be posted in his business Mein Haus Bed & Breakfast website: www.meinhaususa.com/avonrecall for the public to review. Comments made via Zoom: Jack Gardner, a Wildridge resident, commented on Ordinance 21-07 Off-Highway Vehicles. He wants to emphasize to Council that many do not obey the speed limit and that it has had to be reported to the Police Department many times before. He requested to have more Police presence in the area. Peter Warren commented on the off-highway vehicles usage in Wildridge. He said he supports Mr. Gardner’s comments previously provided regarding the speed limit not being obeyed. He suggested 1, to eliminate the speed limits; 2, to hire more officers for more patrolling; and 3, to reverse the Off- Highway Vehicles ordinance. Ruth Stanley commented on the mud slide that happened recently at West Beaver Creek Boulevard. She said it happened right in front of her house, and that every time it rains, they still get mud in their parking lot and requested Public Works Department to please take a look at that situation. She also requested to have speed signs back on West Beaver Creek Boulevard and to have more food vendors at the Avon Live! events. 5. BUSINESS ITEMS 5.1. PUBLIC HEARING: SECOND READING OF ORDINANCE 21-09 APPROVING CODE TEXT AMENDMENTS TO CHAPTER 7 OF THE AVON MUNICIPAL CODE (TOWN PLANNER DAVID MCWILLIAMS) Video Start Time: 00:36:37 Part One Town Planner David McWilliams presented and mentioned that changes requested from Council on the fence standards have been incorporated in this presentation. AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Councilor Underwood said she continues to have a hard time passing an ordinance that violates an agreement among neighbors as she thinks it is not a good practice from the Town. Mayor Smith Hymes asked for the status of the two items she requested to be corrected in the pre- Council meeting; Town Planner David McWilliams confirmed that they have been clarified. She then asked Town Attorney Paul Wisor to briefly summarize and clarify the issue on the Wildridge covenants and the Town’s obligation and what Council can do long-term in this respect. He explained that the Town is not in obligation to enforce third parties’ agreements, however, the Town can explore the possibility to adopt an ordinance that notifies future owners that covenants are no longer enforced. Mayor Pro Tem Phillips called for public in-person comments and Tom Ruemmler commented on how the Homeowners Association Board ’s work regarding conflict of interests, and he said he hopes this Board helps endorse the legislation and he hopes it will get passed next year . Mayor Pro Tem Phillips clarified that there is no HOA in Wildridge, only covenants. No virtual comments were made. Councilor Underwood moved to approve Second Reading of Ordinance 21 -09 Approving Code Text Amendments to Chapter 7 of the Avon Municipal Code , amending language on Section 16, amending Chapter 7.28.080(b) Fence Design Standards, Subsection 1 to the second sentence to read “Although discouraged in Wildridge and Wildwood,”. Councilor Thuon seconded the motion and it passed with a vote of 6 to 0. Councilor Hardy was absent. 5.2. PUBLIC HEARING: SECOND READING ORDINANCE 21-05 CONCERNING THE MANAGEMENT OF PLASTIC PRODUCTS (TOWN ATTORNEY PAUL WISOR) Video Start Time: 01:03:10 Part One Town Attorney Paul Wisor presented. He explained that this ordinance amends Section 8.38.020 of the Avon Municipal Code to alter the definition of “Reusable Bag” to ensure reusable bags utilized in Avon are truly reused. Secondly, that Ordinance 21-05 prohibits the use of expanded polystyrene food containers and that this ban on expanded polystyrene takes effect on January 1, 2024. Councilor Underwood said she feels it is a little premature to adopt this ordinance with respect to Section 3 Expanded Polystyrene Food Containers . Mayor Smith Hymes said she supports this ordinance as there is nothing the Town can do for now , until 2024, but encouraged everyone involved to be vigilant to make it stricter when the time comes. Mayor Pro Tem Phillips called for public in -person comments and Tom Ruemmler commented . He said we do not have e nough knowledge yet on plastics and it is too early as there are no experts on the field to explain pros and cons. Councilor Prince move d to approve on Second Reading Ordinance 21 -05 Amending Certain P ortions of Section 8.38.020 of the Code, Enacting Chapter 8.50 – Prohibition on Use of Expanded Polystyrene Food Containers. Mayor Smith Hymes seconded the motion and the motion passed with a vote of 5 to 1. Councilor Andrade voted no . Councilor Hardy was absent. AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM 5.3. WORK SESSION: RECALL ELECTION UPDATE (TOWN CLERK BRENDA TORRES) Video Start Time: 01:14:57 Part One Mayor Smith Hymes turned her video and audio off, and Councilor Underwood left the room at 6:15 p.m. Town Clerk Brenda Torres presented an update on the recall election and explained election deadlines , anticipating that Council will approve November 2 nd as the recall election date tonight. She said that the candidate nomination petition packets will be ready to be picked up at the Avon Town Hall on August 11 th at 8:00 a.m., and they are due by August 27 th at 5:00 p.m. She explained that if signatures are not sufficient, the candidates will have until September 3 rd to cure and resubmit their petition. Town Attorney Paul Wisor clarified tha t the seat to replace the mayor is as a Council member who gets to elect a new Mayor and explained the ballot content. Mayor Pro Tem Phillips called for public in -person comments and Tom Ruemmler commented . He said the Clerk should ha ve provided a blank petition form, but the Town said it was not our obligation and that the petition has been delayed by 8 months because he believes the Town is violating the Law and delayed it by suing community members. He mentioned that he is not going to re -run for Council as he does not want to work with people with these kinds of ethics and morals. 5.4. RESOLUTION 21-18 APPROVING AN I NTERGOVERNMENTAL AGREEMENT TO PARTICIPATE IN THE NOVEMBER 2, 2021 COORDINATED ELECTION WITH THE EAGLE COUNTY CLERK AND RECORDER ; ORDERING A RECALL ELECTION FOR NOVEMBER 2, 2021; AND SETTING FORTH THE APPLICABLE CANDIDATE DEADLINES FOR THE RECALL ELECTION (TOWN CLERK BRENDA TORRES) Video Start Time: 01:30:23 Part One Mayor Smith Hymes and Councilor Underwood were recused from this item. Town Clerk Brenda Torres introduced Resolution 21-18 and explained that the IGA to participate in the Eagle County coordinated election to be held on November 2nd has been reviewed and it is ready to be submitted to the County, if approved tonight. Town Attorney Paul Wisor clarified that there is an exhibit that has the certificates of sufficiency for the recall and those were delivered to Council. Councilor Thuon moved to approve Resolution 21-18 Approving an Intergovernmental Agreement to Participate in the November 2, 2021 Coordinated Election with the Eagle County Clerk and Recorder; Ordering a Recall Election for November 2, 2021; and Setting Forth the Applicable Candidate Deadlines for the Recall Election. Councilor Andrade seconded the motion and the motion passed with a vote of 4 to 0. Mayor Smith Hymes and Councilor Underwood were recused. Councilor Hardy was absent. AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Mayor Smith Hymes and Councilor Underwood rejoined the meeting after the vote roll call at 6:35 p.m. 5.5. RESOLUTION 21-17 PEG GRANT FUND REQUE ST (ASSISTANT TOWN MANAGER AND FINANCE DIRECTOR SCOTT WRIGHT) Video Start Time: 01:34:56 Part One Finance Director Scott Wright explained that this PEG fund will help with public education and governmental access and mentioned that this request is for $8,000. JK Perry, Executive Director of High Five Access Media, joined and explained how and on what programs this money would be spent. Councilor Underwood said she would prefer that the Town pays for this valuable service directly to High Five Access Media, especially with the great work they have been doing with the Hybrid meetings . She also suggested to JK Perry that he should amend his request for the full amount. Councilor Thuon moved to approve Resolution No. 21 -17 Approve a Request for Grant of PEG Funds in the amount of $8,135.40. Councilor Prince seconded the motion and the motion passed with a vote of 6 to 0. Councilor Hardy was absent. Council took a 10 -minute break. 5.6. PRESENTATION : INCENTIVES FOR E-BIKE P URCHASES (MARKETING & COMMUNICATIONS MANAGER ELIZABETH WOOD) Video Start Time: 00:00:01 Part Two Marketing and Communications Manager Liz Wood presented. She mentioned how Holy Cross Energy has a very successful rebate program that offers a $200 rebate for e -bike purchases for people who are offsetting vehicle miles. She said it is their most popular rebate, and that in 2020 and thus far in 2021, HCE issued more than 520 rebates . She mentioned that the Edwards Metro District also offers a $200 e -bike purchase rebate for full -time residents. She said she was inspired by this to present this item to Coun cil tonight to offer an incentive for Avon residents as well. Councilor Andrade suggested that, along with the incentive, to offer a quick 10 –15-minute class or training on safety rules. Mayor Pro Tem Phillips said the e-bikes don’t need to be new, and that she is not sure if limit ing the purchase within Avon would really help . Councilor Thuon mentioned he has been investigating if prices in Town are competitive with other towns or online. Councilor Underwood agreed with the educational video and suggested to partner with merchants, and maybe offer an extra discount to families that qualify for reduced/free lunch at schools. Mayor Smith Hymes said that to make it easy for people to get one, the e -bikes could be used, and they do not need to be purchased in Avon. Councilor Prince suggested to review this as a budget item annually. He said he supports all these suggestions, but Council need s to work on the fine details and bring this to a later meeting. Town Manager Eric Heil will present more information in a future agenda. AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Mayor Pro Tem Phillips called for public comments and no in -person comments were made. Ruth Stanley joined via Zoom and commented. She said she owns an e -bike and she loves it. She asked if the purpose is to reduce carbon footprint and suggested to start the program right away. 5.7. WORK SESSION: USE TAX AND SHORT-TERM RENTAL TAX (ASSISTANT TOWN MANAGER AND FINANCE DIRECTOR SCOTT WRIGHT AND TOWN MANAGER ERIC HEIL) Video Start Time: 00:22:05 Part Two Town Manager Eric Heil took Council through the presentation included in the packet. He mentioned that the Use Tax is for construction materials, and it will replace the current Sales Tax on construction materials. He explained how Use Tax is easy to administer because a formula is used that is applied at the time of building permit and is paid as one lump sum payment. He said that the formula takes the estimated value of the building, assumes that half of the cost is for materials and half is for labor, and applies the Use Tax rate to the portion that is for materials. He explained that the Finance Committee discussed a Short-term Rental Tax, that would be applicable to consideration received for a short-term rental, less than 30 days, for any property that is not assessed as a commercial property. Council consensus was to not move forward with the Use Tax for this election cycle but continue doing more research and to have more extensive discussions to have a more structured and clear proposal to put in a future ballot. Also, Council decided to move forward with the Short-term Rental Tax and requested staff to present a proposal including the ballot language at the August 24 th meeting. 5.8. WORK SESSION: JULY 22, 2021, RAIN EVENT DAMAGE AND FUTURE MITIGATION ACTIONS (TOWN ENGINEER JUSTIN HILDRETH AND PUBLIC WORKS DIRECTOR GARY PADILLA) Video Start Time: 01:00:41 Part Two Town Engineer Justin Hildreth gave a summary of the rain event that happened on July 22 nd that caused the largest runoff and mud flows seen in decades as well as clogged storm drainage infrastructure and damaged several residential properties. He showed photographs of the damage done and talked about future mitigation strategies. Councilor Underwood asked about the timeframe for the future flood and debris mitigat ion projects, which Town Engineer Justin Hildreth said would probably be by next summer as more research and surveys need to be done. She requested to see milestone update s on these projects attached to the reports. Mayor Pro Tem Phillips called for in-person public comments and Anthony Sek inger, Avon resident, commented that his property was one of the one s affected by the mudslide and said that insurance did not cover an y expense, and it has been all out -of-pocket. He showed a short video clip on how the high water was running onto their property and asked Council if they are pursuing any type of public relief funding. AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Jason Lance, Avon resident, commented. He said his and his neighbor’s units are the ones that took most of the mud. He also shared a couple of photographs and mentioned that a similar event that happened around 2 years ago clogged the culvert , and he thinks that if the proper maintenance had been done, this could have prevented most of the damage . He requested Council prioritize maintenance on Nottingham Road. Neil Hensler, Avon resident, commented. He said that another type of debris is road cinders that are not cleaned up and then build-up. He said Public Works partially cleaned up but that the work has not been completed and requested that the Town prioritize maintenance along Wildwood Road. Council discussed possible relief. Town M anager Eric Heil said he is working on that with the Salvation Army. Councilor Underwood requested to open public comment again for people in the room to share their Go Fund Me information live. Jennifer Lance announced that she created a Go Fund Me under the name Jason & Jennifer Lance Mudslide Relief, and that her neighbor created hers under her name, Krysta Gardner. Natalie Rapson was there on behalf of Chris Lai, owner of Krysta Gardner’s unit. She said that he created his own Go Fund Me under his name. 5.9.PRESENTATION: CONSIDERATION TO SUPPORT THE CC4CA POLICY STATEMENT UPDATES (GENERAL GOVERNMENT INTERN EMILY MYLER) Video Start Time: 01:54:31 Part Two Town Manager Eric Heil explained that this is to support the Colorado Communities for Climate Action policy statement. He mentioned how this organization has grown enormously since the Town joined several years ago. Councilor Thuon moved to approve and support the updated CC4CA Policy Statement and directed staff to email CC4CA to indicate Avon’s support of the new Policy Statement. Councilor Underwood seconded the motion and the motion passed with a vote of 6 to 0. Councilor Hardy was ab sent. 5.10. NOTICE OF AWARD – REC CENTER POOL REPAIRS (TOWN ENGINEER JUSTIN HILDRETH) Video Start Time: 01:58:30 Part Two Town Engineer Justin Hildreth presented. He explained that the plaster should be replaced every 10- years and that it has been 12 years since it was last done. He mentioned how staff solicited bids from 4 qualified contractors, and said that the lowest bid was Maximum Comfort Pool & Spa in Eagle-Vail for $180,248. He mentioned that this project will shut down the pool and will take place in October, at the same time as the locker rooms remodel project. Mayor Pro Tem Phillips called for public comments and no public comments were made. AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Councilor Underwood clarified that awarding the lowest bidder is not the most important thing and requested to make it a practice to explain details such as if the bidder is based locally, prior successful relationship with that person or the company, and not just that it is the lowest bidder. Councilor Prince requested to also include information on the housing plan for the workers if they are not local. Councilor Underwood moved to authorize issuance of Notice of Award for the Recreation Center Pool Replastering Project contract to Maximum Comfort Pool and Spa from Eagle-Vail in the amount of $180,248 and to include the project in the next Capital Projects Fund budget amendment. Councilor Thuon seconded the motion and the motion passed with a vote of 6 to 0. Councilor Hardy was absent. 5.11. NOTICE OF AWARD – METCALF ROAD CULVERT (TOWN ENGINEER JUSTIN HILDRETH) Video Start Time: 02:03:17 Part Two Town Engineer Justin Hildreth presented. He explained that this award is for the repair of the Metcalf Road Culvert , and mentioned that he found a company, American West Construction , that does in-situ repair, meaning no excavation on the road is needed. He said this company is based out of the Front Range area, and that the Town has not previously worked with them, but that they are recommended by CDOT. Councilor Thuon asked him to provide a bimonthly update with photos on the I-70 underpass work. Councilor Underwood asked Town Attorney Paul Wisor about the change made to the liquidated damages policy. He explained that it is by a percentage charged per day now. Councilor Prince asked about the schedule and road closures. Town Engineer Justin Hildreth explained that the project will start in early October, and that there might be minor impact on the road when the pipe is delivered . He also confirmed that the lifetime of the pipe should be longer than 20 years. He mentioned that only part of it will be replaced, as the rest of the pipe is in good shape. Councilor Underwood moved to authorize issuance of Notice of Award for the Metcalf Road Culvert Repair Project contract to American West Construction in the amount of $215,860. Councilor Andrade seconded the motion and the motion passed with a vote of 4 to 2. Councilor Thuon and Councilor Prince voted no. Councilor Hardy was absent. 5.12. REMODELING 351 BENCHMARK ROAD (OLD FIRE STATION) FOR TRANSIT DRIVER HOUSING (TOWN MANAGER ERIC HEIL) Video Start Time: 02:15:53 Part Two Town Manager Eric Heil presented an overview of a proposal to remodel the former Avon Fire Station at 351 Benchmark Road. He said it would consist of 14 individual rooms that Avon would only rent to Avon transit drivers directly to ECO Transit, Beaver Creek and Vail . AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Councilor Prince said that the Town should not be in the Landlord position and does not support this idea. He said the asset is there but that it will bring up more expenses. Councilor Andrade advised to be ready for everything this will bring up . Councilor Thuon said this is a very valiant effort from the Town. Mayor Smith Hymes ex pressed that the Town has to think of these 14 individuals that would have a very affordable place to live in and it would be irresponsible from Council, due to the housing crisis , to not approve this housing opportunity. Councilor Underwood said Council has the responsibility of using these assets, but that this is not how she pictured the Town Manager doing it. She suggested housing 13 people and one full -time manager on -site. Mayor Pro Tem said Council consensus is to move forward, and she mentioned that she will be at the ECO Transit meeting tomorrow and will make sure that the Board knows that the Town will make this effort and will move forward only if other parties agree. 6. MINUTES 6.1. APPROVAL OF JULY 13, 2021 REGULAR COUNCIL MEETING MINUTES (TOWN CLERK BRENDA TORRES) Video Start Time: 02:41:11 Part Two Mayor Smith Hymes corrected a typo. Councilor Thuon moved to approve the minutes from the July 13th regular meeting as amended. Mayor Smith Hymes seconded the motion and the motion passed with a vote of 6 to 0. Councilor Hardy was absent. 7. WRITTEN REPORTS 7.1. Monthly Financials (Senior Accountant Joel McCracken) 7.2. Quarterly RETT Report (Accountant Kristin Martinez) 7.3. Mi Casa Avon Update (General Government Manager Ineke de Jong) 7.4. July 20th, 2021 Planning and Zoning Commission Meeting Abstract (Planner David McWilliams) 7.5. Draft July 20th Finance Committee Meeting Minutes (General Government Intern Emily Myler) 7.6. Water District and Authority Unification (Mayor Sarah Smith Hymes and Town Manager Eric Heil) 7.7. Upper Eagle Regional Water Authority July 22, 2021 Meeting Summary (Mayor Smith Hymes) 8. MAYOR AND COUNCIL COMMENTS & MEETING UPDATES Video Start Time: 02:42:23 Part Two Mayor Smith Hymes mentioned the passing of Mr. Michael Cacioppo. She said he played an important role as he was a very active member in the community and provided very valid input in local government. She said that there is a new feasibility study on the Eagle River Fund that has duplication efforts across the country and the world to help set funds to enhance river health. She was part of the first study meeting, and she will update Council when there is more information after the second meeting in September. She closed her comment saying, regarding item 5.12, COVID-19 vaccination should be required. Councilor Thuon also mentioned the passing of Mr. Michael Cacioppo and requested 10 seconds of silence in his memory. He talked about the COVID-19 vaccinations and announced the new spin class business on Traer Creek Plaza, FitnessNT, owned by Christian Alvarez. AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM Councilor Underwood said that just because there is an open microphone every other Tuesday where the public is invited to express their opinions for 3 minutes, that does not mean that the public can call the Town Attorney corrupt and criminal, call her a liar and immoral, and call the Town Clerk a criminal for doing her job. She said that is not acceptable. She said that she works very hard every meeting for all people in the Town, including that people that call her liar, and expressed to the rest of members of Council that having them there without saying a word in defense of their professional staff, or Council, or herself while she gets recalled, is appalling. Councilor Thuon expressed how he felt similar when he felt attacked a couple of weeks ago. He and Councilor Underwood got involved in a back-and-forth discussion. He asked what the language to remove a Council member is. Town Attorney said there will be an item in an upcoming agenda to discuss Council Conduct. Mayor Smith Hymes said that this process that has been going on for a year, has been very difficult, and that they have accepted the decision of being excluded from every work session related to the recall, however, they are forced to sit there and listen to the people that have subjected them to this recall for the last year. She finds that unfair that they can get the microphone and say what they want, and she said they would have loved to have some support from other Council members in public. Mayor Pro Tem Phillips said Council failed to read an email sent to Council from Mayor Smith Hymes and Councilor Underwood and she then read it aloud for the record. She asked Town Attorney Paul Wisor to clarify that the Town did not sue these people for $100K, just filed a protest. He explained that the documents of the complaint that was filed with the Eagle County District Court contains a caption on the first page that says the amount in controversy is less than $100K, which is important for certain procedural reasons. She said she hopes Council will support Mayor Smith Hymes and Councilor Underwood in not being recalled. 9. ADJOURN There being no further business before Council, Mayor Pro Tem Phillips moved to adjourn the regular meeting. The time was 10:01 p.m. AVON REGULAR MEETING MINUTES TUESDAY AUGUST 10, 2021 SETUP AS A HYBRID MEETING; IN-PERSON AT AVON TOWN HALL OR VIRTUALLY THROUGH ZOOM 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: Amy Phillips ___________________________________ Sarah Smith Hymes Chico Thuon Scott Prince Tamra Underwood Lindsay Hardy RJ Andrade 970-748-4019 jmccracken@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Joel McCracken, Senior Accountant RE: Financial Report June and July 2021 Revenues DATE: August 16th, 2021 SUMMARY: The content of this report will reflect the revenues for sales, accommodations, tobacco and cigarette tax for the period of June 2021. Further, revenues for real estate transfer tax and recreation admissions & program fees for the period of July 2021 will be reported upon. Lastly, a summary table of all revenues with a 2020 v 2021 YTD comparison. This is submitted as a written report and no action by Council is being requested. BACKGROUND: The Town’s 2021 budget was adopted in December 2020. The percentage variance, or comparative change is reflected in the analysis portion of this report in respect to each individual section for the periods of June and July revenues in 2021. Tax revenues are not budgeted on a monthly basis. However, for purposes of analysis, monthly budget variances are based on a 5-year average of actual revenues. ANALYSIS: Sales Tax Revenues – June 2021 June 2021: June sales tax revenues totaled $1,012,305. This is an increase of $210,340 or 26.23% compared to June 2020 sales tax revenue of $801,965. JUNE 2020 v JUNE 2021, SALES TAX COMPARISON BY INDUSTRY June 2020 June 2021 Increase/Decrease Home/Garden $143,629.91 $126,816.94 ($16,812.97) Grocery/Specialty/Health $163,559.42 $173,893.65 $10,334.23 Sporting Goods Retail/Rental $46,949.92 $54,906.39 $7,956.47 Miscellaneous Retail $65,965.04 53,081.38 ($12,883.66) Accommodations $54,080.50 $161,730.21 $107,649.71 Restaurants/Bars $96,446.18 $149,648.62 $53,202.44 Other $6,797.08 $13,485.51 $6,688.43 Service Related $46,258.06 $58,166.17 $11,908.11 Liquor Stores $25,972.85 26,630.32 $657.47 E-Commerce Retail $16,250.81 $52,926.20 $36,675.39 Manufacturing/Wholesale $27,645.84 $42,613.73 $14,967.89 Construction Related Services $78,340.97 $55,096.23 ($23,244.74) Digital Media Suppliers/Sellers $13,190.03 $18,885.59 $5,695.56 Page 2 of 8 Commercial/Industrial Equipment $16,878.91 $22,347.07 $5,468.16 Special Events 0 $2,077.13 $2,077.13 TOTAL $801,965.52 $1,012,305.14 $210,339.62 Note: Since the SUTS system was first implemented in the Town of Avon in late 2020, more than 100 businesses have registered to remit sales tax which has resulted in e-commerce retail sales tax revenues to dramatically increase. June 2021 Proposed Budget v Actual Collections: June 2021 sales tax revenues totaled $1,012,305. This is an increase of $239,408 over the proposed June 2021 estimates of $772,897. This is 30.98% over the 2021 proposed budget, which is calculated based on a 5-year average. JUNE 2020 v JUNE 2021 PROPOSED BUDGET v ACTUAL COLLECTIONS - SALES TAX 2021 Budget 2021 Actual Dollar Variance Percentage Variance Sales Tax $772,897.02 $1,012,305.14 $239,408.12 30.98% 650,794.65 757,498.52 725,800.03 801,965.52 1,012,305.14 16.40% -4.18% 10.49% 26.23% $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 2017 2018 2019 2020 2021 2017 -2021 June Sales Tax Revenue Trend Page 3 of 8 Accommodation Tax Revenues – June 2021 June 2021: Accommodation tax revenues totaled $158,588 for the month of May. This is an increase of $107,401 or 209.83% compared to June 2020 accommodation tax revenues, which totaled $51,187. Accommodation tax collections by industry type for June 2021 compared to June 2020 reported an increase for Vacation Rentals, Time Shares and Hotels. JUNE 2020 v JUNE 2021 ACCOMMODATION TAX COMPARISON BY INDUSTRY June 2020 June 2021 Increase/(Decrease) Timeshares $8,466.96 $27,277.89 $18,810.93 Hotels $35,629.71 $65,013.14 $29,383.43 Vacation Rentals $7,090.07 $66,296.85 $59,206.78 TOTAL $51,186.74 $158,587.88 $107,401.14 June 2021 Proposed Budget v Actual Collections: June 2021 accommodation tax revenues totaled $158,588. This is an increase of $86,251 over the proposed June 2021 estimates of $72,337. This is 119.24% over the 2021 proposed budget. 2021 PROPOSED BUDGET v ACTUAL COLLECTIONS - ACCOMMODATIONS TAX 2021 Budget 2021 Actual Dollar Variance Percentage Variance Acc. Tax $72,336.87 $158,587.88 $86,251.01 119.24% Page 4 of 8 Tobacco & Cigarette Tax Revenues – June 2021 June 2021: Tobacco tax revenues totaled $22,965 and cigarette tax revenues totaled $22,932 for June 2021. Compared to June 2020 revenues, this is an increase of $7,044 for tobacco tax revenues, which totaled $15,921 and a decrease of $1,800 for cigarette tax revenues, which totaled $24,732. 83,723 94,804 92,412 51,186 158,588 13.23% -2.52% -44.61% 209.83% $25,000 $45,000 $65,000 $85,000 $105,000 $125,000 $145,000 $165,000 2017 2018 2019 2020 2021 2017-2021 June Accommodation Tax Revenue Trend 10,050 24,732 22,932 146.08% -7.28% - 5,000 10,000 15,000 20,000 25,000 30,000 2019 2020 2021 2019-2021 June Cigarette Excise Tax Revenue Trend Page 5 of 8 May 2021 Proposed Budget v Actual Collections: May 2021 tobacco and cigarette tax revenues totaled $18,775 and $19,734, respectively. This is an increase of $6,540 over the proposed May 2021 budget for tobacco tax, which is $12,235 and a decrease of $9,366 over for the proposed May 2021 budget for cigarette tax estimates, which is $29,100 which is based on a 5-year average. 2021 PROPOSED BUDGET v ACTUAL COLLECTIONS - TOBACCO AND CIGARETTE TAX REVENUES 2021 Budget 2021 Actual Dollar Variance Percentage Variance Tobacco $16,703.19 $22,965.01 $6,261.82 37.49% Cigarettes $19,374.07 $22,932.00 $3,557.93 18.36% $9,819.75 NOTE: We believe the adoption of similar tobacco and cigarette taxes in neighboring jurisdiction resulted of purchasers to Avon. Real Estate Transfer Tax Revenues – July 2021 July 2021 July 2021 Real estate transfer tax totaled $463,720. Compared to July 2020, which totaled $234,702, this is an increase of $229,018. 11,088 15,921 22,965 43.58% 44.25% - 5,000 10,000 15,000 20,000 25,000 2019 2020 2021 2019-2021 June Tobacco Tax Revenue Trend Page 6 of 8 Recreation Center Revenues – July 2021 Admissions & Program Fees July 2021: Recreation admission revenues for July 2021 totaled $80,017, an increase of $57,627 compared to July 2020, which totaled $22,390. This is $37,891 over the original 2021 budget estimates of $42,126. Recreation program fee revenues for July 2021 totaled $37,705. This is a decrease of $5,156 compared to 2020, which totaled $42,861. This is $551 over the original 2021 budget estimates, which is $37,153 which is calculated based on a 5-year average. $219,209 $272,420 $86,756 $234,702 $463,720 19.53% -214.01% 63.04% 49.39% $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 2017 2018 2019 2020 2021 Real Estate Transfer Tax July Revenue Trends 65,874 72,441 88,528 22,390 80,017 9.07% 18.17% -295.39% 72.02% - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2017 2018 2019 2020 2021 Recreation Admissions June Revenue Trends Page 7 of 8 Tax Revenue Comparison – YTD 2020 v 2021 Actual 2020 v 2021 All revenues are reporting an increase for 2021 compared to 2020. Below is a table which reflects the dollar change and percentage variance. Adopted Budget 2021 v Actual 2021 Revenues for Sales, Accommodation, Tobacco, Real Estate Transfers, and Recreation Admissions reflect a positive variance over the Adopted 2021 budget, while Cigarette Excise Tax and Recreation Program Fees reflect a negative variance. $46,745 $49,968 $43,608 $42,861 $37,704 6.89% -12.73%-1.71% -12.03% $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 2017 2018 2019 2020 2021 Recreation Program Fees June Revenue Trends 2020 v 2021 Year-to-Date Revenue Comparison 2020 YTD 2021 YTD Dollar Variance Percentage Variance Sales Tax $4,109,665.61 $5,271,306.51 $1,161,640.90 28.27% Acc. Tax $607,190.48 $927,272.01 $320,081.53 52.72% Tobacco Tax $80,965.70 $146,299.28 $65,333.58 80.69% Cigarette Tax $115,989.21 $123,546.00 $7,556.79 6.52% RETT $1,378,309.06 $2,891,495.40 $1,513,186.34 109.79% Rec Admissions $221,374.00 $306,240.77 $84,866.77 38.34% Rec Program Fees $157,493.97 $180,895.76 $23,401.79 14.86% Page 8 of 8 FINANCIAL CONSIDERATIONS: This is submitted as a written report and there are no financial considerations for Council. RECOMMENDATION: This is submitted as a written report; therefore, I have no recommendations for Council. Thank you, Joel McCracken 2021 Revenue Comparison – Budget v Actual 2021 YTD Budget 2021 YTD Dollar Variance Percentage Variance Sales Tax $4,390,916.31 $5,271,306.51 $880,390.20 20.05% Acc. Tax $669,602.97 $927,272.01 $257,669.04 38.48% Tobacco Tax $90,803.47 $146,299.28 $65,333.58 61.12% Cigarette Tax $126,084.05 $123,546.00 ($2,538.05) -2.01% RETT $1,033,977.35 $2,891,495.40 $1,857,518.05 179.65% Rec Admissions $284,280.75 $306,240.77 $21,960.02 7.72% Rec Program Fees $186,331.17 $180,895.76 ($5,435.41) -2.92% REGULAR MEETING MINUTES ECRTA BOARD MEETING August 11, 2021 Eagle County Room 500 Broadway Eagle, CO 81631 Virtually via Google meets Authority Members Present Avon Amy Phillips Beaver Creek Jennifer Brown Eagle County Jeanne McQueeney Gypsum Jeremy Rietmann Vail Brian Stockmar Authority Members Absent Eagle Scott Turnipseed Minturn Tom Sullivan Red Cliff Dana Veljacic Guests None Ms. Brown called the meeting to order at 12:05 P.M 1.Roll Call All members were present with the exception of Scott Turnipseed, Tom Sullivan and Dana Veljacic 2.Additions to the Agenda None 3.Approval of June 02, 2021 special meeting minutes Ms. Brown moved to approve the minutes. Motion carried unanimously. 4.Public Comments None 5.Discussion and Action Items COVID 19 Updates Tanya Allen presented the updates for COVID-19. She stated that there was no capacity restriction on the buses. Ms. Allen also discussed that the current face masks restrictions will be enforced through September 13th, but it is likely that they will be renewed through next year. She informed the board that 85% of the ECO Transit’s staff has had at least one dose of the vaccine. Ms. Allen also gave an update on ridership statistics and highlighted that ridership has started to climb back up during the course of the summer but it is still just 60-70% of the normal ridership.Mr. Rietmann asked if there was any insight on knowing if the ridership that we are missing may be people that moved out of the valley. Ms. Allen responded that there was not a way to know that information. Ms. Phillips indicated that the group of J1’s that normally come to the valley every year were not here this year because of COVID.She thought that might be some part of the missing ridership.Ms. Brown mentioned that people may have changed their transportation method during the summer season to e-bikes. ECO Trails Funding updates and budget approval Mr. Sharkey presented and explained the budget to the board. He stated that ECO Trails had officially received $22 million from COPs which will get paid through an annual lease for the next 20 years. He explained these payments will take up most of the ECO Trails budget and will create a big change in how the budget is normally managed. He also explained that they may have to pay some trail impact fees which has a budget around $150,000. He also highlighted the new marketing services line for $150,000 which will be used for a marketing consultant to help with the fundraising to finish the trails project. Mr.Sharkey at the end showed that the biggest expense for next year will be the payment of the $1.05 million which will be transferred to the CIP fund and help pay for the COP lease. He explained that the lease every year will be an average of $1.3 million and that Eagle County will have to cover the remainder of the lease payment. Ms. McQueeney said that there might be an opportunity with GOCO to get a grant for a couple million with their “Centennial Project”.Ms. Phillips moved to recommend the budget as proposed to the BoCC, Mr. Rietmann seconded the motion and it was approved unanimously. Preliminary Budget Winter Planning Ms. Allen explained the budgeting planning process and a projected increase of 3% in tax revenues over 2021. Ms. Allen stated that ECO Transit has over $8 million from the CRRSAA Funding grant and explained that this is reimbursable funding needed to be used towards operations.Ms. Allen explained that ECO Transit expects the fare revenue to be lower than previous years given lower ridership. She stated that the first objective for next year is to return to a normal winter season service with extended hours and increased ridership. She also discussed the need to invest in marketing to help increase ridership, promote the launching of Mobile Fares in 2022, and the possible redesign of the bus wraps. She discussed vehicle replacements and the addition of two electric buses and two diesel buses. For planning and construction projects, she said ECO Transit will be contributing to studying and the process of discussing an RTA. Another project is the electric vehicle charging infrastructure at Lake Creek and the construction of covered bike shelters with e-bike chargers at Freedom Park. Ms. Phillips said that she doesn’t think Lake Creek will be a good spot for an e-bike charger and that Meadow Mountain might be a better option. Pilot Projects ECO Transit has 3 potential projects including the Eagle-Gypsum circulator. Jeff Wetzel and Greg Barrett have been working on putting together preliminary route times and stops. Ms. Allen explained that the major impediment for the additional service is staffing since it will need 7 new drivers. Ms. Allen also discussed moving forward with a plan to expand service throughout the day in Minturn and extend service to Red Cliff. She highlighted some operating issues with getting busses around Red Cliff.The last pilot is the joint operations for Vail-Beaver Creek route and Ms. Allen explained that there will be staffing issues for this project as well. A final decision for that will be made in the next 4 weeks. RTA Discussion recap Ms. Brown explained that in January 2020 there were talks about how different transportation authorities can come together to work as one. An ad hoc group talked about what will make the community successful and agreed that it might be good to create an RTA. Potentially, a ballot question will be needed to make a decision and potentially secure funding. Ms. Allen explained the most important discussion for the board will be to decide what will happen to ECO Transit as an entity. Ms. Brown said the help and support from a specific person or team to make this happen will be needed. Ms. Phillips asked if community outreach will be part of the same job or will be a different person/team. Ms. Brown said it could be part of the same, but was not sure at the moment. Ms. McQueeney said there were a lot of steps that needed to be taken to do this, such as getting CDOT approvals. She said that with this we can achieve all goals. 6.Information and Updates Ms. Allen talked about the mobile fares project and said the contract is very close to being signed and finalized. For the E-buses update, Jeff Wetzel stated that they are getting positive feedback from drivers and riders and positive reviews from the community at large. Mrs. Brown asked where the buses were charged, and Mr. Wetzel explained that right now they are getting charged at Swift Gulch and from there the buses are taken to other locations. Ms. Allen said ECO Transit received 5 new busses and maintenance is getting them ready to be on the road.Ms. Phillips asked if the new buses already have the COVID protection area for drivers and Mr. Wetzel said that they will include that as well before the buses go on the road. Ms. Brown asked about staffing and Mr. Wetzel explained that they have seen increased applicants with the increased wages package Eagle County created. He further explained that it takes 4-5 weeks to train new employees before they are ready for the road. Board member round table Mr. Stockmar said Vail is doing another major roundabout on S. Frontage Rd. He said that construction is progressing well and is ahead of schedule. Mr. Rietman asked for ECO Transit staff to keep him updated with any Capital Improvements they need to add to their budget for the change on routes. Ms. Phillips said the Town of Avon will be planning a winter fireworks extravaganza during MLK weekend or sometime in December to use the fireworks from 4th of July. Ms. Brown said Beaver Creek's next probable big event will be Birds of Prey. The meeting was adjourned at 1:20pm. The next meeting will be held Wednesday, November 10, 2021, in the Eagle County Room at the main Eagle County building. Respectfully Submitted: Dayana Herr Clerk to the ECRTA Advisory Board Date Seal Clerk’s Note: Notice for this meeting was properly posted as required. (970) 748-4093 kspadi@avon.org TO: Honorable Mayor Smith Hymes and Council members FROM: Karyne Spadi, Manager, Human Resources & Risk Management RE: Benefits Comparison Report DATE: August 10, 2021 SUMMARY: This report provides a summary of the Town of Avon’s employee benefits study, which includes a portion of the Total Rewards benefits provided to Town of Avon employees. Data was selected and gathered from eight (8) mountain resort comparators which included Aspen, Breckenridge, Frisco, Silverthorne, Snowmass Village, Steamboat Springs, Telluride, and Vail. This is submitted as a written report and no action by Council is requested. BACKGROUND: Staff completed a Benefits Study using the comparators listed above in response to Council direction to conduct this study. It is the policy of the Town of Avon to provide competitive and attractive compensation and benefits to attract and retain the best available talent to serve the Avon community. This study focused on benefits for medical, Rx, dental, and vision; employee and employer contributions; life and accidental death insurance; long and short-term disability insurance; supplemental insurance; retirement vesting and employer and employee contributions; social security contributions; deferred compensation; employee assistance programs (EAPs); housing; rental advances; wellness benefits; and recreational benefits. For more information, the complete 2021 Mountain Resort Benefits Comparison spreadsheet can be found HERE. The most significant outcomes from the study include employee and employer shared medical costs, health insurance benefits, retirement contributions and vesting, supplemental retirement, and employee housing. Health Insurance: It’s important to remember that our Benefits Plan, and our overall strategy, revolves around total benefits costs, not simply a premium calculation. The Town has a variety of levers available to ensure our employees have access to solid health care at costs which are reasonable to the employee as well as to the Town. Those levers include not just premium share ratios, but also the limits we set for deductibles, co-pays, coverage maximums, and out of pocket limits. For example, a single employee may pay $83.79 per month for their medical/Rx/vision/dental, which would total $1,005.48 per year. Should the need for medical services transpire, the employee must first satisfy a $1,200.00 deductible and may pay a coinsurance of 20% for in-network services and 40% for out-of- network services for all medical expenses until they meet their $3,600.00 (in-network) or $4,800.00 (out-of- network) out of pocket maximum.. At that point, the employee will have paid $4,605.48 for premiums plus in-network expenses or $5,805.48 for premiums plus out-of-network expenses for the year., as well as $3,600.00 out of pocket. So, the employee has incurred over $4,605.48 in cost sharing for in-network services or $5,805.48 in cost sharing for out-of-network for their healthcare over the year, while the Town paid $10,446.60 in premiums for the year. Prescription drug copayments do not apply towards deductible. For a family unit, an employee with a spouse and one or more children, they would pay $249.38 per month in premiums, or $2,992.56 per year, with a $3,600.00 in deductible (3 x $1,200.00) and a maximum of $10,800.00 for in-network services and $14,400.00 for out-of-network services. For a family, their share of costs would be $13,792.56 for premiums and in-network services or a total of $17,392.56 for premiums and out-of-network services for the year, while the Town pays $30,640.56 in premiums for the year. Prescription drug copayments do not apply towards deductible. (970) 748-4093 kspadi@avon.org 2021 MOUNTAIN RESORT MEDICAL, DENTAL, & VISION COMBINED CONTRIBUTIONS FOR ALL AVAILABLE COVERAGES Municipality Employer Contributions Employee Contributions Frisco 91.67% 8.33% Aspen 91.00% 9.00% Avon 90.00% 10.00% Steamboat Springs 87.25% 11.00% Snowmass Village 89.00% 12.75% Vail 85.25% 14.75% Silverthorne 80.00% 20.00% Telluride 79.01% 20.99% Breckenridge 66.58% 33.42% NOTE: The above table reflects the average of medical, dental, and vision insurance across all levels of coverage. Detail information be found HERE. In the chart above, the Town of Vail’s medical insurance premiums also include the cost and premiums for dental coverage. EE Only EE + 1 EE + 2 EE + Family Telluride 100.00%99.93%0.00%90.83% Snowmass Village 100.00%83.00%83.00%83.00% Frisco 95.00%90.00%90.00%90.00% Aspen 95.00%81.00%81.00%83.00% Steamboat Springs 93.50%86.00%0.00%87.50% Avon 92.00%92.00%0.00%92.00% Vail 89.00%85.00%83.00%84.00% Breckenridge 87.00%89.00%89.00%89.00% Silverthorne 80.00%80.00%80.00%80.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% EMPLOYER CONTRIBUTION AS A PERCENTAGE OF TOTAL PREMIUM FOR MEDICAL/RX (970) 748-4093 kspadi@avon.org EE Only EE + 1 EE + 2 EE + Family Telluride 100.00%52.15%0.00%31.16% Snowmass Village 100.00%83.00%83.00%83.00% Aspen 97.00%97.00%97.00%97.00% Frisco 95.00%90.00%90.00%90.00% Steamboat Springs 93.50%86.00%0.00%87.50% Avon 88.00%88.00%0.00%88.00% Breckenridge 54.00%56.00%54.00%56.00% Vail 0.00%0.00%0.00%0.00% Silverthorne 0.00%0.00%0.00%0.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% EMPLOYER CONTRIBUITON AS A PERCENTAGE OF TOTAL PREMIUM FOR DENTAL EE Only EE + 1 EE + 2 EE + Family Snowmass Village 100.00%83.00%83.00%83.00% Frisco 100.00%90.00%90.00%90.00% Steamboat Springs 93.50%86.00%0.00%87.50% Breckenridge 57.00%56.00%56.00%56.00% Telluride 0.00%0.00%0.00%0.00% Aspen 0.00%0.00%0.00%0.00% Avon 0.00%0.00%0.00%0.00% Vail 0.00%0.00%0.00%0.00% Silverthorne 0.00%0.00%0.00%0.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% EMPLOYER CONTRIBUTION AS A PERCENTAGE OF TOTAL PREMIUM FOR VISION (970) 748-4093 kspadi@avon.org The towns of Avon and Telluride and city of Aspen premiums for dental also include vision premiums; therefore, in the chart above, the vision premiums for these municipalities are paid at 100%. EE Only EE + 1 EE + 2 EE + Family Aspen $44.77 $314.60 $342.38 $459.95 Avon $83.79 $174.63 $0.00 $249.38 Breckenridge $139.73 $267.92 $305.46 $404.45 Frisco $60.76 $142.62 $244.86 $309.86 Silverthorne $246.71 $407.04 $494.44 $695.22 Snowmass Village $0.00 $212.02 $349.59 $562.06 Steamboat Springs $74.79 $23.72 $278.46 $353.51 Telluride $36.66 $143.30 $143.30 $227.64 Vail $126.80 $313.60 $373.76 $521.92 $0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 EMPLOYEE PREMIUM COST PER MONTH FOR MEDICAL, DENTAL & VISION COVERAGES (970) 748-4093 kspadi@avon.org Town of Avon Historical Premium ER & EE Contributions Medical/Rx/Dental/Vision - Premium Equivalent & Employer Contribution Premium Equivalents Employer Contribution EE EE + 1 Family Annual % Increase EE EE + 1 Family Annual % Increase 2017 $796.18 $1,546.10 $2,383.18 $739.92 $1,435.20 $2,207.68 2018 $807.78 $1,619.48 $2,450.34 2.74% $747.20 $1,498.02 $2,266.56 2.60% 2019 $837.90 $1,687.51 $2,518.73 2.72% $775.06 $1,560.95 $2,329.83 2.72% 2020 $963.20 $1,988.60 $2,870.72 12.26% $896.58 $1,853.54 $2,670.24 12.75% 2021 $941.15 $1,945.07 $2,760.42 -4.00% $870.55 $1,799.19 $2,553.38 -4.58% Medical/Rx/Dental/Vision - Employer & Employer Portion Employer Portion Employee Portion EE EE + 1 Family Average for All EE EE + 1 Family Average for All 2017 92.93% 92.83% 92.64% 92.80% 7.07% 7.17% 7.36% 7.20% 2018 92.50% 92.50% 92.50% 92.50% 7.50% 7.50% 7.50% 7.50% 2019 92.50% 92.50% 92.50% 92.50% 7.50% 7.50% 7.50% 7.50% 2020 93.08% 93.21% 93.02% 93.10% 6.92% 6.79% 6.98% 6.90% 2021 92.50% 92.50% 92.50% 92.50% 7.50% 7.50% 7.50% 7.50% Over the past few years, the Town has worked, and continues to work, purposefully in crafting and implementing health plan design changes to ensure cost savings for the Town and our employees. Some of those changes have created a more proactive approach towards wellness screenings and healthcare, resulting in proactive strategies for a healthier workforce, fewer catastrophic events, and lower healthcare costs to the Town and our employees. In addition to the aforementioned, Avon has taken several steps towards assessing plan design which reduce overall insurance costs to both the Town and employees. Some of those accomplishments include, but are not limited to, the following: 1. Actively managing the Town’s health insurance plan document, for both the benefit of the Town of Avon and our employees to allow for preventative screenings covered under the wellness benefit in aspiration of promoting an incentive for participants to be more proactive with their healthcare and to create a proactive versus reactive wellness benefit. 2. Working annually with the Town’s insurance broker to submit Requests for Proposals (RFPs) to Stop Loss Carriers and carefully accessing the best overall benefit and cost to the Town. 3. Regularly reviewing and discussing with the Town’s insurance broker detailed management reports regarding usage and pricing changes. 4. The Town secured a two-year fee agreement with our Third Party Administrative (TPA) Administration. 5. The Town offers free annual Biometric Screenings to employees and spouses to provide employees with their overall health awareness and any necessary follow-up healthcare actions needed from their physician. (970) 748-4093 kspadi@avon.org 6. The Town entered into a direct contract with a prescription vendor which provides additional discounts and quarterly refunds based on national usage. 7. In 2017 the Town of Avon began discussions with Vail Health stakeholders regarding direct contracting, and in 2018, Avon entered into a direct contracting agreement with Vail Health and their subsidiaries, which provides the Town higher discounts than the now Preferred Provider Organization (PPO), including lower rates for deductibles, imaging, physical therapy, and copays to name a few. 8. As well, in 2020 the Town negotiated a partnership with the Steadman Clinic and Vail Summit. All direct contracting has resulted in cost savings via discounted rates for the Town and our employees. 9. From the partnership with Vail Health, the Town was able to create a three (3) Tier Health Plan structure, providing additional discounted rates to the Town and reduced deductibles and co- insurance to employees when using Vail Health entities. 10. The Town continues to offer a flexible spending accounts for employees to set aside pretax dollars for foreseeable medical, dental, vision, and prescription expenses, as well as, to use for childcare. 11. In 2021, the Town partnered with Eagle Valley Behavioral Health (EVBH) – Mountain Strong, expanding the Town’s Employee Assistance Program (EAP) from four (4) to nearly 80 counselors, increasing our EAP visits from three (3) to six (6) free counseling sessions annually to employees and their family. Retirement Matching and Vesting: A comparison of retirement benefits offered by the identified communities revealed half of the comparators participating in social security plans, 6.2% pre-taxed benefit, in addition to an employer mandatory contribution plan. Vesting, apart from Silverthorne ’s vesting of 100% on the employee’s first day of employment, the remainder of the comparators vested on a graduated scale between 0 and 5 years, with the majority 100% vested by 5 years of employment. This is the result of Avon’s vesting schedule as well. Housing and Down Payment Assistance Program: Housing continues to be a huge topic and, again, no one entity or action can fully address the housing needs of the community alone. The Town of Avon currently has three (3) units for rent offered at 15% below market rate. Vail has limited rental units with priority given to first responders and seasonal employees. Most notable was the Town of Breckenridge with 50 rental units available to employees. The Town of Frisco has 10 rental units in addition to offering a Down Payment Assistance Program available to employees. Also, the City of Aspen, Town of Silverthorne, Town of Snowmass Village, Town of Telluride offer Down Payment Assistance or housing allowance programs. Steamboat Springs was the only participant without a Down Payment Program or rental unit program. Rental Advance: The comparator communities who offered a Rental Advance Program were between $2,000 and $3,000 to include first, last and security deposit. This benefit is repaid through payroll deductions before the term of the lease. Frisco and Steamboat Springs do not offer a rental advance program. Life and Disability Insurance: Long Term Disability, Life & AD&D Insurance employers pay is a common benefit offered by all towns. Supplemental Life Insurance is also offered as a paid benefit to and by the (970) 748-4093 kspadi@avon.org employee. Short Term Disability was not offered by two employers; however, those who did offer the benefit resulted in a mix of employee and employer paid. A review of the comparator cities shows that Avon neither lags nor leads in the benefits offered to our employees. However, housing, recruitment and retention remain a vast concern for all who participated in the survey. TOWN MANAGER COMMENTS: I find the information in this study to be very valuable. Avon’s complete benefits package is both attractive and competitive with our peer communities. I do not believe there is any compelling reason to expand the existing benefits package. Avon is very competitive in requiring a relatively low Employee contribution for health insurance. Considering the current challenges with hiring I do not believe an increase in the employee contribution towards health insurance would be beneficial. If there were to be any increase, I would recommend increasing the employee contribution from 10% to 14.75% (to match Vail) and phasing that in over several years to start in 2023. Thank you, Karyne 1 AVON PLANNING AND ZONING COMMISSION MEETING ABSTRACT TUESDAY, AUGUST 17, 2021 AVON TOWN HALL - 100 MIKAELA WAY, AVON, CO 1. CALL TO ORDER AND ROLL CALL Chairperson Jared Barnes called the meeting to order at 5:06 p.m. A roll call was taken, and Planning Commission members present were Marty Golembiewski, Anthony Sekinger and Sara Lanious. Also present were Town Planner David McWilliams, Town Manager Eric Heil, Recreation Superintendent Michael Labagh, Town Engineer Justin Hildreth, and Town Attorney Paul Wisor. 2. APPROVAL OF AGENDA Action: The motion and the Agenda were approved unanimously. 3. DISCLOSURE OF ANY CONFLICTS OF INTEREST RELATED TO AGENDA ITEMS There were no conflicts of interest. 4. BUSINESS ITEMS 4.1. SITE TOUR & WORK SESSION – SITE TOUR OF HARRY A. NOTTINGHAM PARK, FOLLOWED BY WORK SESSION TO DISCUSS FUTURE IMPROVEMENTS IN HARRY A. NOTTINGHAM PARK (TOWN MANAGER ERIC HEIL, TOWN ENGINEER JUSTIN HILDRETH, ACTING RECREATION DIRECTOR MICHAEL LABAGH). Action: Eric Heil introduced the item and lead a tour around the park, where commissioners gave feedback on the schematic drawings. 5. CONSENT AGENDA 5.1. MEETING MINUTES FROM JULY 20, 2021 PZC MEETING Action: The Consent Agenda was approved unanimously. 6. ADJOURN The meeting was adjourned at 6:49pm. These meeting 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. RESPECTFULLY SUBMITTED: _____________________________ David McWilliams, Town Planner APPROVED: __________________________________ Chairperson