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TC Council Packet 05-25-2010TOWN OF AVON,, COLORADO VON AVON REGULAR MEETING FOR TUESDAY, MAY 25, 2010 S -0 1 P S A 6 MEETING BEGINS AT 5:30 PM AVON TOWN HALL, ONE LAKE STREET PRESIDING OFFICIALS MAYOR RON WOLFE MAYOR PRO TEM BRIAN SIPES COUNCILORS RICHARD CARROLL, DAVE DANTAS, KRISTI FERRARO AMY PHILLIPS, ALBERT "Buz" REYNOLDS, JR. TOWN STAFF TOWN ATTORNEY: ERIC HEIL TOWN MANAGER: LARRY BROOKS TOWN CLERK: PATTY MCKENNY ALL REGULAR MEETINGS ARE OPEN TO THE PUBLIC EXCEPT EXECUTIVE SESSIONS COMMENTS FROM THE PUBLIC ARE WELCOME DURING CITIZEN AND COMMUNITY INPUT AND PUBLIC HEARINGS PLEASE VIEW AVON'S WEBSITE, HTTP: / /WWW.AVON.ORG, FOR MEETING AGENDAS AND MEETING MATERIALS AGENDAS ARE POSTED AT AVON TOWN HALL AND RECREATION CENTER, ALPINE BANK, AND AVON LIBRARY THE AVON TOWN COUNCIL MEETS ON THE SECOND AND FOURTH TUESDAYS OF EVERY MONTH 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF AGENDA 3. DISCLOSURE OF POTENTIAL CONFLICT OF INTEREST 4. COMMUNITY & CITIZEN INPUT 5. CONSENT AGENDA a. Minutes from May 11, 2010 b. Richmond, Sprouse and Murphy, LLC Fee Agreement (Eric Heil, Town Attorney) Proposal for legal services related to liquor licensing c. Change Order # 001 Change Order to Construction Contract with Thrasher LLC to Account for Additional Costs for Material Changes Harry A. Nottingham Park Fishing Pier (Shane Pegram, Engineer II) Change Order to reconcile increased project cost for change in materials to Harry A. Nottingham Park Fishing Pier d. Acceptance of 2009 Audited Comprehensive Annual Financial Report for Town of Avon (Scott Wright, Assistant Town Manager Finance) Accept final 2009 Financial Statements audited by McMahan and Associates 6. POLICE DEPARTMENT: LAW ENFORCEMENT CHALLENGE AWARD (Bob Ticer, Police Chief) Colorado Association of Chiefs of Police State Award for Avon's police efforts in training, public information, and enforcement to reduce crashes and injuries 7. ORDINANCES a. Public Hearing on Ordinance No. 10 -08, Series of 2010, Second Reading, Ordinance Consenting to Improvements of the Eagle County Energy Smart Local Improvement District Within the Town of Avon (Sally Vecchio, Assistant Town Manager Community Development and Adam Palmer, Environmental Policy Planner for Eagle County) Legislation supporting town participation in the Eagle County Energy Smart Local Improvement District for the purpose of encouraging, accommodating, and financing energy efficiency improvements and renewable energy improvements b. Public Hearing on Ordinance No. 10 -09, Series of 2010, Second Reading, Ordinance Amending Section 9.12.080(A) of the Avon Municipal Code (Eric Heil, Town Attorney) Proposed Legislation Addressing Alcohol in Town Parks 8. TOWN MANAGER REPORT 9. TOWN ATTORNEY REPORT 10. MAYOR REPORT Avon Council Meeting. 10.05.25 Page 4 of 5 TOWN OF AVON, COLORADO A jAVON REGULAR MEETING FOR TUESDAY, MAY 25, 2010 IN C U 4 n Y k p p MEETING BEGINS AT 5:30 PM AVON TOWN HALL, ONE LAKE STREET 11. EXECUTIVE SESSION a. Receiving legal advice pursuant to Colorado Revised Statute §24- 6- 402(4)(b) and for developing a strategy for negotiations and instructing negotiators pursuant to Colorado Revised Statute §24- 6- 402(4)(d) specifically related to pending litigation and settlement discussions regarding Minturn water rights cases, 05CW262, 05CW263, 06CW264 and 07CW225 b. Receiving legal advice pursuant to Colorado Revised Statute §24- 6- 402(4)(b) and for developing a strategy for negotiations and instructing negotiators pursuant to Colorado Revised Statute §24- 6- 402(4)(d) specifically related to pending litigation and settlement discussions regarding Town of Avon v Traer Creek Metropolitan District, 2008 CV 0385 c. Receiving legal advice pursuant to Colorado Revised Statute §24- 6- 402(4)(b) specifically related to pending litigation regarding Traer Creek, LLC, et.al. v Town of Avon 2010 CV 316 12. ADJOURNMENT FUTURE COUNCIL AGENDA DATES & PROPOSED TOPICS: June 8th: Review Booting Legislation, 2011 Budget Calendar, Real Estate Transfer Tax Amendment Avon Council Meeting. 10.05.25 Page 5 of 5 MINUTES OF THE REGULAR MEETING OF THE AVON TOWN COUNCIL HELD MAY 11, 2010 A regular meeting of the Town of Avon, Colorado was held at the Avon Municipal Building, One Lake Street, Avon, Colorado in the Council Chambers. Mayor Ron Wolfe called the meeting to order at 5:45 PM. A roll call was taken and Council members present were Dave Dantas Kristi Ferraro, Amy Phillips, Buz Reynolds and Brian Sipes. Rich Carroll was absent. Also present were Town Attorney Eric Heil, Town Manager Larry Brooks, Asst. Town Manager Mgmt Services Patty McKenny, Assistant Town Manager Community Development Sally Vecchio, Recreation Director Meryl Jacobs, Community Relations Officer Jaime Walker as well as members of the public. DISCLOSURE OF POTENTIAL CONFLICT OF INTEREST There were no changes to the agenda and no conflict of interest topics on the agenda. COMMUNITY/ CITIZEN INPUT Mayor Wolfe provided some parameters to accepting citizen input as follows: Do not read letters but submit them for the record Three minute limit would be imposed Highlight concerns or comments when addressing during this timeframe. Carole Warren spoke about the booting legislation and AAA Booting's recent court date. Ms. Warren was invited to attend the June 8th council meeting at which time the booting legislation would be reviewed. CONSENT AGENDA Mayor Wolfe asked for a motion on the consent agenda. Mayor Pro Tern Sipes moved to approve the consent agenda; Councilor Ferraro seconded the motion and it passed unanimously by those present (Reynolds abstained and Carroll absent): a. Minutes from April 27, 2010 b. Polling Place Agreement (Patty McKenny, Assistant Town Manager) Proposal from Eagle County Clerk's Office for use of Avon Town Hall as polling location in November 2010 d. Sponsorship Contract between the Town of Avon and Westin Riverfront Resort and Spa (Meryl Jacobs, Recreation Director) Agreement for 2010 Salute to U.S.A July 3rd event e. Sponsorship Contract between Town of Avon and Western Enterprise for Salute to the USA (Meryl Jacobs, Recreation Director) Agreement for 2010 Salute to U.S.A. July 3rd event ORDINANCES Sally Vecchio, Assistant Town Manager Community Development presented Ordinance No. 10- 08, Series of 2010, First Reading, Ordinance Consenting to Improvements of the Eagle County Energy Smart Local Improvement District Within the Town of Avon. Adam Palmer, Environmental Policy Planner for Eagle County, presented a brief slide show on the topic and described the program adopted by Eagle County to implement an Energy Smart Local Improvement District for the purpose of encouraging, accommodating, and financing energy efficiency improvements and renewable energy improvements. It was noted that the voters approved the program in the November 09 election. It was noted that the program allows qualified property- owners special financing for energy efficient and /or renewable energy improvements with loan repayments collected through special assessments on the participant's property taxes. The legislation requires municipalities pass an ordinance in order to participate. Council requested that he provide some of the loan forms, etc. Eric Heil, Town Attorney presented Ordinance No. 10 -09, Series of 2010, First Reading, Ordinance Amending Section 9.12.080(A) of the Avon Municipal Code. He explained the proposed legislation which addressed alcohol in Town parks and the need for the town to become compliant with the Colorado Liquor Code, which does not allow the consumption of alcohol in public parks or other public places unless a liquor license has been issued or the exemptions for special event permits apply. After some discussion a motion was made by Councilor Ferraro to approve Ordinance No. 10 -09, Series of 2010, First Reading, Ordinance Amending Section 9.12.080(A) of the Avon Municipal Code; Mayor Pro Tern Sipes seconded the motion and it passed There being no further business to come before the Council, the regular meeting adjourned at 6:30 PM. RESPECTFULLY SUBMITTED: Patty B. McKenny, Town Clerk APPROVED: Rich Carroll Dave Dantas Kristi Ferraro Amy Phillips Albert "Buz" Reynolds Brian Sipes Ron Wolfe Regular Council Meeting Page 2 of 2 10.05.11.doc HEIL LAW & PLANNING, LLC MEMORANDUM TO: Honorable Mayor Wolfe and Town Council members CC: Larry Brooks, Town Manager FROM: Eric Heil, Town Attorney DATE: May 20, 2010 SUBJECT: Fee Agreement for Legal Services Summary: Attached is an engagement letter and fee agreement with Richmond, Sprouse & Murphy, LLC for Seth Murphy to represent the Town Clerk and Police Department in local liquor license authority enforcement matters. I have reviewed the engagement letter and fee agreement and it is acceptable to me as to form. The fee agreement is for an unlimited duration, but may be cancelled by the Town of Avon at any time. Thanks, Eric Heil Law $ Planning, «C Eric Heil, Esq., A.I.C.P. 1499 Blake Street, Unit 1 -G Tel: 303.975.6120 Denver, CO 80202 eheil@avon.org 620 Main St., P.O. Box 280 Frisco, Colorado 80443 Office 970.668 -0176 FAX 970 - 668 -3757 E-MAIL:Iizb@friscola-,vyers.com RICHMOND, SPROUSE & MURPHY, LLC Patty McKenny - Town Clerk Town of Avon P.O. Box 975 Avon, CO 81620 Attorneys at Law May 20, 2010 Mark Richmond Frederick V. Sprouse Seth Murphy RE: Representation of the Town of Avon in the Prosecution of Liquor License Violations Engagement Letter - Fee Agreement Dear Ms. McKenny: This engagement letter contains an outline of the relationship between the Town of Avon and this firm concerning the work you have requested we perform with regard to the above - referenced matters. If, after reviewing this letter, you find the arrangement to be agreeable, I request that you return a signed copy of this letter agreement to us, retaining a copy for yourself. 1. Parties: Our firm will be representing the Town of Avon in this matter. Absent a specific written agreement to the contrary, we will not be representing any other individuals or entities with regard to the above - referenced matter. 2. Scope of Engagement: The services we have agreed to provide is to represent the Town of Avon in the prosecution of liquor license violations. 3. Lawyers and Others Providing Services: The primary attorney responsible for this engagement is Seth Murphy. The primary legal assistant responsible for this engagement is Liz Berry. Communications from you should be directed to one of these individuals. 4. Communications with the Client: Our firm understands the importance of being accessible. It is our firm's policy to have attorneys and staff return telephone calls the same day on which they are received. On occasion, this is simply not possible. By way of example, when an attorney is involved in an extended trial or is ill, it may not be possible to return telephone calls within this time -frame. However, the client may anticipate receiving a return call from someone in this office within twenty -four hours. 5. Methods of Communications - Preserving: Confidences: A fundamental principle in the attorney - client relationship is that the attorney maintain confidentiality of information relating to the representation. It is our firm's policy to communicate, in most instances, via land -line telephone and/or the U.S. Postal Service. You need to understand that there is an inherent risk of unintentional disclosure of client confidences when communicating with you via e-mail, cellular telephone, and/or facsimile. Therefore, our firm will communicate with you only in the manner which you authorize. Please indicate which methods of communication you authorize by checking the appropriate boxes: U Land -line telephone: [� U.S. Postal Service: [� Facsimile: [ ] Federal Express: [� Cellular Telephone: [� E -mail: 6. Client's Obli ations: In an attorney - client relationship, clients have certain fundamental and basic obligations. The most important obligation which you have is truthfulness toward counsel. We will always assume that you are telling us the truth, and will rely on the completeness and accuracy of all information which you impart to us when performing our services. Additionally, you have an obligation to promptly notify us of any change of address or telephone number, as well as any extended travel plans, and an obligation to return our telephone calls in a prompt manner. Further, you have an obligation to pay attorney's fees and costs as set forth below. 7. Fee Arrangement: Your charges for legal services will be calculated at hourly rates, in increments of tenths of an hour, with one -tenth (6 minutes) being the minimum charged for any task. Attorneys' time will be based at the rate of $175.00 per hour, paralegals' time will be billed at $120.00 per hour, and law clerks' time will be billed at $35.00 to $75.00 per hour. All fees must be reasonable. 8. Retainer: Client Agrees to deposit and replenish a retainer sufficient to cover fees and costs of proposed or ongoing services. A retainer payment does not constitute an estimated fee, flat fee or capped fee unless separately agreed in writing. Such payments will be placed in a non- interest- bearing client trust account from which fees and costs will be drawn as they accrue. Credits will be returned or, upon consent, will be held and applied to further services. No retainer has been requested at the time this document is executed. 9. Disbursement Arran eg_ment: Costs and expenses will be charged in addition to hourly rates. Customarily such costs and expenses include extraordinary photocopying, certified postage, express mail delivery, travel, filing fees, and other out -of- pocket expenses. Standard photocopying, postage and long - distance telephone calls are not billed to the client. 10. Billing Procedures: Bills are mailed out by the 10th day of each month and your statement will reflect the details of services performed and expenses incurred. Payment is due upon receipt of your billing statement, unless otherwise agreed to in writing. Delinquent balances (in excess of 30 days) will incur interest at the rate of 18% per annum. 11. Dispute Resolution: In the event that a dispute arises between you and our office concerning payment of fees, and/or the scope or quality of our representation, you agree to attempt in good faith to resolve any such dispute promptly by negotiations. Any party may give the other party written notice of any dispute not resolved in the normal course of business. Within five (5) days after receipt of the notice, you and our office shall meet at a mutually acceptable time and place, and thereafter as often as necessary, to exchange relevant information and to attempt to resolve the dispute. If the matter has not been resolved within twenty (20) days of the notice of dispute, or if we fail to meet within five (5) days, we both agree to endeavor to settle the dispute by mediation with a neutral third party mediator. If the dispute has not been resolved by mediation within twenty (20) days, any dispute, claim, or controversy arising out of or relating to our representation of you shall be settled by arbitration in accordance with the Uniform Arbitration Act. Judgment upon the award rendered by said arbitration shall be paid by the loser, and the prevailing party shall recover their reasonable attorney's fees and costs. 12. Right of Withdrawal: Should you fail to pay attorney's fees and costs on a timely basis, our office may be entitled to withdraw from its representation of you. Also, any untruthfulness on your part, in your dealings with our office and the other parties related to the case, will precipitate our withdrawal from your case. Our office may also withdraw from representation if you insist upon pursuing a claim or defense which is not warranted under existing law or cannot be supported in good faith, or for any other reason allowed by the Rules of Professional Conduct. 13. File Retention/Destruction: It is our firm's practice to scan your files to PDF computer files and destroy all paper files within one year after your matter has been completed, resolved and/or closed. The physical paper files will be returned to you only if we receive a written request from you within said one -year period. Please indicate your preference below regarding what you would like done with your files, once your matter has been completed. If you do not indicate your preference, then it will be assumed that you do not wish to have your paper files returned. [_] Return entire paper file when it is closed [_] Scan file to PDF and provide a copy of computer disk [_] Do not return file 14. Term and Termination. This Agreement shall be effective upon approval by the Town and Law Firm and shall terminate upon written notice by either party. Termination by either party may occur at any time without cause or reason. The Law Firm shall use best efforts to provide a minimum of thirty (30) days notice of termination of representation of the Town. If the Town discharges the Law Firm, the Town shall pay all fees and costs incurred to the date of termination, and the Law Firm shall promptly deliver all files and documents of the Town to the Town. 15. License and Malpractice Insurance. The Law Firm agrees to maintain at all times its license to practice law in the State of Colorado. Law Firm shall promptly inform Town if there is any change in the good standing status of the license to practice law in the State of Colorado. Law Firm shall maintain professional malpractice insurance in the minimum amount of one million dollars ($1,000,000.00) per occurrence in a form and with such terms as are acceptable to the Town. Do not hesitate to ask questions about this or any other matter at any time. Thank you for contacting our office for representation and assistance. Yours THIS IS A LEGALLY BINDING CON 1MCT WHICH YOU SHOULD READ CAREFULLY BEFORE YOU SIGN IT AND RETAIN A COPY FOR YOUR RECORDS. ASK ANY QUESTIONS WHICH YOU MAY HAVE PRIOR TO SIGNING THIS CONTRACT. YOUR SIGNATURE BELOW ACKNOWLEDGES THAT YOU UNDERSTAND ALL OF THE TERMS AND PROVISIONS CONTAINED ABOVE. FACSIMILE AND ELECTRONIC SIGNATURES SHALL BE CONSIDERED BINDING. The undersigned acknowledge that they have read the foregoing fee agreement, consisting of four (4) pages, and understand and agree to all of its terms, provisions and conditions. Patty McKenny - Town Clerk Date Town of Avon, State of Colorado Memo To: Honorable Mayor and Town Council Initials Thru: Larry Brooks, Town Manager Legal Review: Eric Heil, Town Attorney ?t+x( Approved by: Sally Vecchio, Assistant Town Mgr /Director of Comm. Dev. From: Justin Hildreth, P.E., Town Engineer 0—it Shane Pegram, P.E., Engineer II Date: May 18, 2010 Re: Change Order 001 — Change Order to Construction Contract with Thrasher LLC to Account for Additional Costs for Material Changes Summary: Thrasher LLC is nearing completion of the Harry A. Nottingham Park Fishing Pier. Change Order 001 (Exhibit A) is proposed to account for material changes that have increased construction costs, but will reduce the pier's maintenance requirements. Previous Council Action: The Fishing is Fun grant contract was approved by the State of Colorado on February 18, 2010. The construction contract for the Harry A. Nottingham Park Fishing Pier was awarded to Thrasher LLC at the April 13, 2010 Town Council meeting. Discussion: The Fishing Pier contract with Thrasher LLC includes construction of the fishing pier and an asphalt access path to the pier. The fishing pier is located in the northeast corner of Nottingham Lake. The following revisions were requested: • Item 1 is a revision to the construction of the piers. Concrete pilasters were poured in Sonotubes around the helical piers. • Item 2 replaces the original Redwood decking with Trex Decking to decrease maintenance requirements, increase warranty, and eliminate the use of a Redwood due to environmental concerns. • Item 3 replaces the original Redwood decking with PureWood to decrease maintenance requirements, increase warranty, and eliminate the use of a Redwood due to environmental concerns. • Item 4 adds a concrete approach ramp in place of asphalt to eliminate cracking that would occur where the asphalt passes over the concrete foundation wall. • The completion date will be extended from May 21, 2010 to May 28, 2010. May 18, 2010 Change Order 001 — Change Order to Construction Contract with Thrasher LLC Financial Implications: In 2008 and 2009 the Colorado Division of Wildlife (DOW) approved the Town of Avon's (TOA) application for grant funding through the DOW's "Fishing is Fun" program. The total TOA project budget is $180,000. The DOW grant will reimburse the town up to $101,700, but reimbursements will not exceed 64% of total project costs. Thrasher's original awarded contract amount of $89,507 is below the anticipated budget. The project is still within budget following the Change Order amount of $17,515.89. The Change Order qualifies for 64% reimbursement from the DOW. Table 1 is a breakdown of the previously proposed budget and the actual budget. Table 1 Budget Item Original Budget Revised Budget Pier Design $ 10,000 $10,000 Pier Construction $ 90,000 $90,000 Change Order 0011 — $17,516 Soil Investigation $ 3,000 $3,000 Contingency /Other Improvements $ 77,000 $59,484 Total 1 $180,0001 $180,000 Recommendation: Approve Change Order 001 for $17,515.89 to the Harry A. Nottingham Park Fishing Pier contract with Thrasher LLC Proposed Motion: I move to approve Change Order 001 for $17,515.89 to the Harry A. Nottingham Park Fishing Pier contract with Thrasher LLC Town Manager Comments: NOTES: Exhibit A — Change Order 001 • Page 2 EXHIBIT A CHANGE ORDER Order No.: 001 Date: Mgy 18 2010 Agreement Date: _April 14, 2010 NAME OF PROJECT: Harry A. Nottingham Park Fishing Pier Project OWNER: Town of Avon, Colorado CONTRACTOR: Thrasher LLC The following changes are hereby made to the CONTRACT DOCUMENTS: Item Item Description Change Order 001 1. Concrete Pilasters $ 4,798.00 2. Replace Redwood w/ Trex Decking $ 8 602.02 3. Replace Redwood w/ PureWood Rails $ 2,794.99 4. Concrete Approach Ram $ 1,302.88 Total 1 $ 17 515.89 Justification: Change Order 001, item 1, is a revision to the construction of the piers. Concrete pilasters were poured in Sonotubes around the helical piers to improve construction. Change Order 001, items 2 and 3, lists additional materials costs for changes in decking and railing materails. The materials, Trex Decking and PureWood rails, were selected in place of Redwood to decrease maintenance requirements and eliminate the use of Redwood. Change Order 001, item 4, is the addition of a concrete approach ramp in place of asphalt to eliminate cracking that would occur where the asphalt passed over the concrete foundation wall. Change to CONTRACT PRICE: $17,515.89 Original CONTRACT PRICE: $89,507.00 Current CONTRACT PRICE adjusted by previous CHANGE ORDER: N/A The CONTRACT PRICE due to this CHANGE ORDER will be increased by: $17,515.89 The new CONTRACT PRICE including this CHANGE ORDER will be $107,022.89 Change to CONTRACT TIME: Completion date moved from May 21, 2010 to May 28, 2010 16191W APPROVALS REQUIRED: Approved by Engineer: Accepted by Contractor: Accepted and Approved by Owner: CO -2 Memo To: Honorable Mayor and Town Council Thru: Larry Brooks, Town Manager From: Scott Wright, Asst. Town Manager - Finance Date: May 21, 2010 Re: Acceptance of 2009 Comprehensive Annual Financial Report Summary: A representative from McMahan and Associates, CPAs, the Town's independent certified public accountants will be here Tuesday to present the Town's comprehensive annual financial report to Council. Discussion: Section 12.11 of the Town's Charter requires an independent audit of the Town's accounts by certified public accountants at least annually. Acceptance of the 2009 comprehensive annual financial report (CAFR) by the Council fulfills this requirement. In addition to meeting the Town's Charter requirements, the Town also uses the CAFR to document that it has met the compliance requirements of the Single Audit Act and U.S. Office of Management and Budget regarding awards of major federal grants, that it has met the standards applicable to financial audits as issued by the Comptroller General of the United States and that information provided in the CAFR meets the continuing disclosure requirements of the Town's various debt issuances. The Town provides its CAFR to various users of financial reports including: investors in Town bonds, creditors such as banks and underwriters, oversight bodies such as the Colorado State Auditor, and other governmental entities. Finally, the Town participates in the Government Finance Officer's Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting and has received this certificate for last seventeen years in a row. The Town is one of only approximately 110 local governments in Colorado to receive this award. Recommendation: I recommend that the Council accept the Town's 2009 comprehensive annual financial report. Town Manager Comments: Memo To: Honorable Mayor and Town Council Thru: Larry Brooks, Town Manager From: Robert Ticer, Chief & Matt Jamison, Police Service Officer Date: May 20, 2010 Re: Law Enforcement Challenge Summary: On April 16, 2010, the Avon Police Department entered the 2009 Law Enforcement Challenge. This challenge is designed to strengthen and support traffic enforcement leading to improved safety within the Town of Avon. Background: This is a National Law Enforcement Traffic Safety Competition. The application is graded by a state board from the Colorado Association of Chiefs of Police for State honors. It is then forwarded to a national level body made up from members of the International Association of Chiefs of Police. The challenge focuses on three specific traffic safety priorities; • Occupant Protection • Impaired Driving • Speeding Agencies are graded based on agency size and whether they meet speck criteria in the application process. The ultimate goal of the challenge is to "Save lives and reduce injury'. Discussion: Avon PD entered the competition this year in order to recognize the excellent work done by our police officers, educating and protecting our community regarding traffic safety. The application encompasses the work done in many traffic safety areas to include occupant protection- seat belts/ car seats, impaired driving and speed enforcement. Our continued participation in this LE Challenge will assist APD in achieving our department mission of "Making a difference" and mold our goals and strategies for further education and enforcement in traffic safety. Financial Implications: None Recommendation: N/A Recommended Motion: N/A Town Manager Comments: Memo To: Honorable Mayor and Town Council and the Initials Thru: Larry Brooks, Town Manager From: Sally Vecchio, Asst Town Mgr /Community Development Date: May 20, 2010 Re: Participation in the Eagle County Energy Smart Local Improvement District Second Reading of Ordinance 10-08: Consenting to Improvements of the Eagle County Energy Smart Local Improvement District within the Town of Avon. Summary: The Avon Town Council has reviewed the Eagle County Energy Smart Loan Program (the "Program ") and has determined that the Town's participation in the Special Improvement District is in the public interest. In order to allow eligible properties to particulate in the Program the Council must establish general consent for the program by ordinance. This is the second reading of Ordinance 10 -08: Consenting to Improvements of the Eagle County Energy Smart Local Improvement District within the Town of Avon. Background: The Energy Smart Loan Program was approved by the voters of Eagle County in November, 2009. The Program allows Eagle County to offer qualified property- owners in the Limited Improvement District special financing for energy efficient and /or renewable energy improvements. Loan repayments are collected through special assessments on a participant's property taxes. Although the Limited Improvement District has been established in unincorporated Eagle County, towns within Eagle County wishing to participate in the Program must opt -in by passing an ordinance agreeing to include the jurisdiction with the District. Currently the Program is only available for residential properties; and only for existing homes and not new construction. The attached Energy Smart Plan handout from the County provides specific Program details on eligible properties, eligible improvements, enrollment terms, and loan repayment terms. Discussion: Ordinance 10 -08 establishes a general consent for the program, but provides that consent for specific projects shall be provided by resolution so that the Town can monitor the program. Also, this approach avoids providing an open -ended consent to improvement projects which are not yet defined. Town review of specific projects is anticipated to be very limited and approval of specific projects is anticipated to be included on the consent agenda. Ordinance 10 -08 also includes a provision which allows the Town to withdraw the general consent for the program by ordinance. With respect to the recent decision by Fannie Mae not to allow PACE (aka smart loans) on any mortgage loan they purchase or currently hold; both County and State representatives are working to resolve the issue. In the meantime, the County is accepting loan applications but not writing loans or issuing notices to proceed. Town Manager Comments: TOWN OF AVON, COLORADO ORDINANCE NO. 10 -08 SERIES OF 2010 AN ORDINANCE CONSENTING TO IMPROVEMENTS OF THE EAGLE COUNTY ENERGY SMART LOCAL IMPROVEMENT DISTRICT WITHIN THE TOWN AVON WHEREAS, pursuant to part 6 of article 20 of title 30, Colorado Revised Statutes ( "Act "), Eagle County has authorized the Eagle County Energy Smart Local Improvement District ( "EE /RE District "), a local improvement district for the purpose of encouraging, accommodating, and financing energy efficiency improvements and renewable energy improvements; and WHEREAS, Eagle County desires to encourage, accommodate and provide financing for energy efficiency and renewable energy by and through the EE /RE District improvements, ( "EE /RE ") pursuant to the Act for the purpose of accomplishing the improvements, including paying all costs necessary and incidental thereto; and WHEREAS, the Town Council of the Town of Avon, Colorado, ( "Town ") finds that consent to inclusion of properties within the Town of Avon in the EE /RE District will promote the goals in the Avon Comprehensive Plan related to energy conservation and sustainability; and WHEREAS, Colorado Revised Statute §30- 20- 603(1)(a) authorizes municipalities to grant consent by ordinance for improvements by a county authorized local improvement district within the boundaries of such municipality; and WHEREAS, approval of this Ordinance on first reading is intended only to confirm that the Town Council desires to comply the requirements of the Avon Home Rule Charter by setting a public hearing in order to provide the public an opportunity to present testimony and evidence regarding the application and that approval of this Ordinance on first reading does not constitute a representation that the Town Council, or any member of the Town Council, supports, approves, rejects, or denies this ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Consent Granted. Subject to the provisions for future consent set forth below in Section 3, the Town Council of the Town of Avon hereby consents, as provided in §30-20 - 603(1)(a), Colorado Revised Statutes, as amended, to energy efficiency and renewable energy systems and improvements being installed upon any private property within the Town of Avon, through Eagle County's Energy Smart Local Improvement District, pursuant to the Act, in order Ord No 10 -08 Eagle County EE/RE Improvement District Consent May 5, 2010 Page 1 of 3 that owners of properties located anywhere within the Town may voluntarily agree to participate in the District's program. Section 3. Future Consent. Future consent shall be required for each specific project for EE/RE Improvements within the Town of Avon which may be approved by Town Council by resolution. The Director of Community Development is authorized to determine the required information to be submitted to the Town for consent of a specific project. The Town Council may withhold consent for a specific project where the Town Council finds a project proposes excessive debt obligation or tax burden or may diminish the ability of a property to discharge existing financial obligations to other public entities including but not limited to the Town of Avon. Section 4. Repeal of Consent. The Town Council may repeal the consent of the Town for additional EE /RE Improvements by ordinance. Any such repeal shall not affect the validity of consent granted by the Town for specific projects. Section 5. Actions Authorized. The officers of the Town of Avon may shall take such other steps or actions necessary or reasonably required to carry out the terms and intent of this Ordinance and Consent. Section 6. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term "provision" means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term "application" means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 7. Effective Date. This Ordinance shall take effect seven days after public notice following final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 8. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 9. Publication by Posting. The Town Clerk is ordered to publish this Ordinance by posting notice of adoption of this Ordinance on final reading by title in at least three public places within the Town and posting at the office of the Town Clerk, which notice shall contain a Ord No 10 -08 Eagle County EE/RE Improvement District Consent May 5, 2010 Page 2 of 3 statement that a copy of the ordinance in full is available for public inspection in the office of the Town Clerk during normal business hours. INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED POSTED AND REFERRED TO PUBLIC HEARING and setting such public hearing for May 25, 2010 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado, on May 11, 2010. Ronald C. Wolfe, Mayor Published by posting in at least three public places in Town and posting at the office of the Town Clerk at least seven days prior to final action by the Town Council. ATTEST: Patty McKenny, Town Clerk APPROVED AS TO FORM: Eric Heil, Town Attorney INTRODUCED, FINALLY APPROVED, AND PASSED ON SECOND READING, AND ORDERED PUBLISHED BY POSTING on May 25, 2010. Ronald C. Wolfe, Mayor Published by posting by title in at least three public places in Town and posting by title at the office of the Town Clerk. ATTEST: Patty McKenny, Town Clerk Ord No 10 -08 Eagle County EE/RE Improvement District Consent May 5, 2010 Page 3 of 3 HEIL LAW & PLANNING, LLC MEMORANDUM TO: Honorable Mayor Wolfe and Town Council members CC: Larry Brooks, Town Manager FROM: Eric Heil, Town Attorney DATE: May 19, 2010 SUBJECT: Ordinance No. 10 -09 Repealing Allowance of 3.2 Beer in Nottingham Park Summary: The Colorado Liquor Code does not allow the consumption of alcohol in public parks or other public places unless a liquor license has been issued or the exemptions for special event permits apply. Ordinance No. 10 -09 amends section 9.12.080(a) of the Avon Municipal Code to comply with the Colorado Liquor Code. The primary purpose for amending the Municipal Code is because the Colorado Liquor Code places an affirmative duty on police officers to enforce the Colorado Liquor Code. Avon, as a home rule community, cannot supersede the Colorado Liquor Code. The inconsistency between the Municipal Code and Colorado Liquor Code creates potential conflicts for Avon police officers as well as conflicts for enforcement of the Municipal Code in municipal court. As proposed, the revisions would allow the consumption of alcohol in public parks only under the following circumstances: 1. A Picnic Event Permit is issued by the Town. 2. The alcohol is provided without charge (i.e. served for free). 3. The alcohol is consumed by members and guests of organizations qualified to obtain a special event liquor license (governmental and non - profit organizations). 4. The consumption of beer and wine is allowed but not spirits. Special Event Permit liquor licenses would not be affected by this ordinance. The relevant state statutes reprinted for your convenience as follows: 12 -47 -901. Unlawful Acts - Exceptions (1) Except as provided in section 18 -13 -122, C.R.S., it is unlawful for any person: (h) (I) To consume malt, vinous, or spirituous liquor in any public place except on any licensed premises permitted under this article to sell such liquor by the drink for consumption thereon; to consume any alcohol beverage upon any premises licensed to sell liquor for consumption on the licensed premises, the Heil Law & Planning, «C Eric Heil, Esq.. A.I.C.P. 1499 Blake Street, Unit 1 -G Tel: 303.975.6120 Denver, CO 80202 eheil @avon.org Avon Town Council RE: Ord. 10 -09 May 19, 2010 Page 2 of 2 sale of which is not authorized by the state licensing authority; to consume alcohol beverages at any time on such premises other than such alcohol beverage as is purchased from such establishment; or to consume alcohol beverages in any public room on such premises during such hours as the sale of such beverage is prohibited under this article. 12 -47 -904. Duties of inspectors and police officers (2) It is the duty of all sheriffs and police officers to enforce the provisions of this article and articles 46 and 48 of this title and the rules and regulations made pursuant to said articles and to arrest and complain against any person violating any of the provisions of this article or rules and regulations pertaining thereto. It is the duty of the district attorney of the respective judicial districts of this state to prosecute all violations of said articles in the manner and form as is now provided by law for the prosecution of crimes and misdemeanors, and it is a violation of said articles for any such person, knowingly, to fail to perform any duties pursuant to this section. 12 -48 -102. Qualifications of organizations for permit - qualifications of municipalities or municipalities owning arts facilities - qualifications of candidates (1) A special event permit issued under this article may be issued to an organization, whether or not presently licensed under articles 46 and 47 of this title, which has been incorporated under the laws of this state for purposes of a social, fraternal, patriotic, political, or athletic nature, and not for pecuniary gain, or which is a regularly chartered branch, lodge, or chapter of a national organization or society organized for such purposes and being nonprofit in nature, or which is a regularly established religious or philanthropic institution, and to any political candidate who has filed the necessary reports and statements with the secretary of state pursuant to article 45 of title 1, C.R.S. (2) A special event permit may be issued to any municipality owning arts facilities at which productions or performances of an artistic or cultural nature are presented for use at such facilities, subject to the provisions of this article. 12 -48 -108. Exemptions An organization otherwise qualifying under section 12 -48 -102 shall be exempt from the provisions of this article and shall be deemed to be dispensing gratuitously and not to be selling fermented malt beverages or malt, spirituous, or vinous liquors when it serves, by the drink, fermented malt beverages or malt, spirituous, or vinous liquors to its members and their guests at a private function held by such organization on unlicensed premises so long as any admission or other charge, if any, required to be paid or given by any such member as a condition to entry or participation in the event is uniform as to all without regard to whether or not a member or such member's guest consumes or does not consume such beverages or liquors. Requested Action: Approval of first reading of Ordinance No. 10 -09 AN ORDINANCE AMENDING SECTION 9.12.080(a) OF THE AVON MUNICIPAL CODE TOWN OF AVON, COLORADO ORDINANCE NO. 10 -09 SERIES OF 2010 AN ORDINANCE AMENDING SECTION 9.12.080(a) OF THE AVON MUNICIPAL CODE WHEREAS, pursuant to C.R.S. §31 -15 -103 and §31 -15 -104, and pursuant to the home rule powers of the Town of Avon ( "Town "), the Town Council has the power to make and publish ordinances necessary and proper to provide for the safety, preserve the health, promote the prosperity, and improve the morals, order, comfort, and convenience of its inhabitants; and WHEREAS, Articles 47 and 48, Title 12, of the Colorado Revised Statutes, the consumption of alcohol on streets, alleys, public parks, public places, and public buildings is not lawful except pursuant to limited circumstances and C.R.S. §12-47-904 establishes an affirmative duty of police officers to enforce the liquor code; and WHEREAS, the Town Council finds that enacting regulations concerning the proper use of parks and special event areas and providing penalties for violation of those regulations will enhance the community's ability to enjoy the Town's recreational opportunities and therefore the Town Council finds that passage of this Ordinance will promote and preserve the health, safety, and welfare of the Avon community. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO the following: Section 1. Recitals Incorporated. The above and foregoing recitals are incorporated herein by reference and adopted as findings and determinations of the Town Council. Section 2. Amendment. Section 9.12.080(a) of the Avon Municipal Code is hereby amended by repealing Section 9.12.080(a) in its entirety and re- enacting Section 9.12.080(a) to read as follows: "(a) It is unlawful for any person to consume any malt, vinous or spirituous liquors or fermented malt beverages upon any street, alley, sidewalk, park, public property, public building or public parking lot in the Town or in any vehicle upon such places unless (1) a special events permit has been issued pursuant to Article 48, Title 12, Colorado Revised Statutes or (2) such person is a member or guest of a qualifying organization which has obtained a picnic event permit from the Town and which event meets the qualifications for exemption from special event permits pursuant to C.R.S. §12 -48 -108, except that the consumption of spirituous liquors shall not be permitted by any person at an event which meets the qualifications for exemption from special event permits pursuant to C.R.S. §12- 48- 108." Ord 10 -09 Repealing 3.2 in Parks 5 -5 -10 Page 1 of 3 Section 3. Codification Amendments. The codifer of the Town's Municipal Code, Colorado Code Publishing, is hereby authorized to make such numerical and formatting changes as may be necessary to incorporate the provisions of this Ordinance within the Avon Municipal Code. The Town Clerk is authorized to correct, or approve the correction by the codifer, of any typographical error in the enacted regulations, provided that such correction shall not substantively change any provision of the regulations adopted in this Ordinance. Such corrections may include spelling, reference, citation, enumeration, and grammatical errors. Section 4. Severability. If any provision of this Ordinance, or the application of such provision to any person or circumstance, is for any reason held to be invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are declared to be severable. The Town Council hereby declares that it would have passed this Ordinance and each provision thereof, even though any one of the provisions might be declared unconstitutional or invalid. As used in this Section, the term "provision" means and includes any part, division, subdivision, section, subsection, sentence, clause or phrase; the term "application" means and includes an application of an ordinance or any part thereof, whether considered or construed alone or together with another ordinance or ordinances, or part thereof, of the Town. Section 5. Effective Date. This Ordinance shall take effect seven days after public notice following final passage in accordance with Section 6.4 of the Avon Home Rule Charter. Section 6. Safety Clause. The Town Council hereby finds, determines and declares that this Ordinance is promulgated under the general police power of the Town of Avon, that it is promulgated for the health, safety and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The Town Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. Section 7. No Existing Violation Affected. Nothing in this Ordinance shall be construed to release, extinguish, alter, modify, or change in whole or in part any penalty, liability or right or affect any audit, suit, or proceeding pending in any court, or any rights acquired, or liability incurred, or any cause or causes of action acquired or existing which may have been incurred or obtained under any ordinance or provision hereby repealed or amended by this Ordinance. Any such ordinance or provision thereof so amended, repealed, or superseded by this Ordinance shall be treated and held as remaining in force for the purpose of sustaining any and all proper actions, suits, proceedings and prosecutions, for the enforcement of such penalty, liability, or right, and for the purpose of sustaining any judgment, decree or order which can or may be rendered, entered, or made in such actions, suits or proceedings, or prosecutions imposing, inflicting, or declaring such penalty or liability or enforcing such right, and shall be treated and held as remaining in force for the purpose of sustaining any and all proceedings, actions, hearings, and appeals pending before any court or administrative tribunal. Ord 10 -09 Repealing 3.2 in Parks 5 -5 -10 Page 2 of 3 Section 8. Publication by Posting. The Town Clerk is ordered to publish this Ordinance by posting notice of adoption of this Ordinance on final reading by title in at least three public places within the Town and posting at the office of the Town Clerk, which notice shall contain a statement that a copy of the ordinance in full is available for public inspection in the office of the Town Clerk during normal business hours. INTRODUCED, APPROVED, PASSED ON FIRST READING, ORDERED POSTED AND REFERRED TO PUBLIC HEARING and setting such public hearing for May 25, 2010 at the Council Chambers of the Avon Municipal Building, located at One Lake Street, Avon, Colorado, on May 11, 2010. Ronald C. Wolfe, Mayor Published by posting in at least three public places in Town and posting at the office of the Town Clerk at least seven days prior to final action by the Town Council. ATTEST: APPROVED AS TO FORM: Patty McKenny, Town Clerk Eric Heil, Town Attorney INTRODUCED, FINALLY APPROVED, AND PASSED ON SECOND READING, AND ORDERED PUBLISHED BY POSTING on May 25, 2010. Ronald C. Wolfe, Mayor Published by posting by title in at least three public places in Town and posting by title at the office of the Town Clerk. ATTEST: Patty McKenny, Town Clerk Ord 10 -09 Repealing 3.2 in Parks 5 -5 -10 Page 3 of 3 TOWN OF AVON, COLORADO AVON AVON WORK SESSION MEETING FOR TUESDAY, MAY 25, 2010 c of o R .a- MEETING BEGINS AT 2:30 PM AVON TOWN HALL, ONE LAKE STREET PRESIDING OFFICIALS MAYOR RON WOLFE MAYOR PRO TEM BRIAN SIPES COUNCILORS RICHARD CARROLL, DAVE DANTAS, KRISTI FERRARO AMY PHILLIPS, ALBERT "Buz" REYNOLDS, JR. TOWN STAFF TOWN ATTORNEY: ERIC HEIL TOWN MANAGER: LARRY BROOKS TOWN CLERK: PATTY MCKENNY ALL WORK SESSION MEETINGS ARE OPEN TO THE PUBLIC EXCEPT EXECUTIVE SESSIONS COMMENTS FROM THE PUBLIC ARE WELCOME; PLEASE TELL THE MAYOR YOU WOULD LIKE TO SPEAK UNDER No. 2 BELOW ESTIMATED TIMES ARE SHOWN FOR INFORMATIONAL PURPOSES ONLY, SUBJECT TO CHANGE WITHOUT NOTICE PLEASE VIEW AVON'S WEBSITE, HTTP: / /WWW.AVON.ORG, FOR MEETING AGENDAS AND MEETING MATERIALS AGENDAS ARE POSTED AT AVON TOWN HALL AND RECREATION CENTER, ALPINE BANK, AND AVON LIBRARY THE AVON TOWN COUNCIL MEETS ON THE SECOND AND FOURTH TUESDAYS OF EVERY MONTH 2:30 PM 1. INQUIRY OF THE PUBLIC FOR COMMENT AND APPROVAL OF AGENDA 2:30 PM — 3:00 PM 2. REVIEW TOWN OF AVON 2009 AUDITED COMPREHENSIVE ANNUAL FINANCIAL REPORT (Scott, Wright, Assistant Town Manager Finance, Paul Backus, McMahan and Associates) Review 2009 audited financial statements with auditors McMahan and Associates 3:00 PM — 3:45 PM 3. REVIEW NOVEMBER STATEWIDE BALLOT INITIATIVES: PROPOSITION 101, AMENDMENTS 60 & 61 (Scott, Wright, Assistant Town Manager Finance, Dee Wisor, Sherman & Howard) Review Proposition 101 (would reduce vehicle, income tax and telecommunications revenues, Amendment 60 (would limit property taxes) and Amendment 61 (would limit state and local government debt) 3:45 PM —4:15 PM 4. UPDATE ON "CONNECT AVON NOW" PROPOSAL (Scott, Wright, Assistant Town Manager, Jaime Walker, Community Relations Officer, Dee Wiser, Sherman & Howard) Review proposed ballot language for tax increase and debt authorization that supports Connect Avon Now project and resolution authorizing a TABOR election on November 2, 2010 4:15 PM — 4:30 PM 5. COUNCIL COMMITTEE AND STAFF UPDATES a. Review 2011 Budget Calendar and Finalize Budget Retreat Date (Scott Wright, Assistant Town Manager Finance) Finalize budget retreat date proposed in October b. Financial Matters (Scott Wright, Assistant Town Manager Finance) Memo Only 4:30 PM — 5:00 PM 6. STONE CREEK CHARTER SCHOOL UPDATE (Mike Rindone, Stone Creek Charter School Board President) Review school's operations, enrollment and land search updates 5:00 PM 7. ADJOURNMENT Avon Council Meeting. 10.05.25 Page 1 of 5 Memo To: Honorable Mayor and Town Council Thru: Larry Brooks, Town Manager From: Scott Wright, Asst. Town Manager - Finance Date: May 21, 2010 Re: Acceptance of 2009 Comprehensive Annual Financial Report Summary: A representative from McMahan and Associates, CPAs, the Town's independent certified public accountants will be here Tuesday to present the Town's comprehensive annual financial report to Council. Discussion: Section 12.11 of the Town's Charter requires an independent audit of the Town's accounts by certified public accountants at least annually. Acceptance of the 2009 comprehensive annual financial report (CAFR) by the Council fulfills this requirement. In addition to meeting the Town's Charter requirements, the Town also uses the CAFR to document that it has met the compliance requirements of the Single Audit Act and U.S. Office of Management and Budget regarding awards of major federal grants, that it has met the standards applicable to financial audits as issued by the Comptroller General of the United States and that information provided in the CAFR meets the continuing disclosure requirements of the Town's various debt issuances. The Town provides its CAFR to various users of financial reports including: investors in Town bonds, creditors such as banks and underwriters, oversight bodies such as the Colorado State Auditor, and other governmental entities. Finally, the Town participates in the Government Finance Officer's Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting and has received this certificate for last seventeen years in a row. The Town is one of only approximately 110 local governments in Colorado to receive this award. Recommendation: I recommend that the Council accept the Town's 2009 comprehensive annual financial report. Town Manager Comments: Memo To: Honorable Mayor and Town Council Thru: Larry Brooks, Town Manager Legal: Eric Heil, Town Attorney From: Scott Wright, Asst. Town Manager — Finance Date: May 19, 2010 Re: State -wide Ballot Initiatives Summary: Initials On Tuesday, Dee Wisor from Sherman and Howard will give a presentation on state -wide ballot initiatives, specifically Amendments 60 and 61 and Proposition 101. If passed, these initiatives will significantly limit property taxes, State and local government debt, and would reduce vehicle, income tax and telecommunication revenues. I have attached to this memo Sherman and Howard's client advisories regarding each of these initiatives so you may become more familiar with their details. Town Manager Comments: Attachments: Exhibit A. Client Advisory — Amendment 60 Exhibit B. Client Advisory — Amendment 61 Exhibit C. Client Advisory — Proposition 101 Page 1 Amendment 60 - Would Limit Property Taxes Home > Publications > Client Advisories > View Amendment 60 - Would Limit Property Taxes Amendment 60 would amend Article X, Section 20 of the Colorado Constitution ( "TABOR ") to add a new section to establish additional limits on property taxes. This section will be in addition to all other provisions of TABOR. Some of the provisions of this proposal appear intended to override court decisions interpreting TABOR (as it pertains to property taxes) and to roll back certain prior property tax voter approvals under TABOR. Beginning in 2011, the following new rules are in effect: • Electors may vote on property taxes where they own property. This allows persons who own property in a jurisdiction, but don't live there, to vote on property tax measures. However, it is not clear what is meant by "electors ". Does this mean only Colorado residents, or does it include out -of -state residents or even persons who live in another country? Might it include corporations and partnerships in addition to natural persons? The proponents' website says "Under this reform, Colorado adults qualified to vote (now registered or not) who own any real property here (cabin, condo, lot, office) recorded in their name and who are liable for property taxes can file and receive election notice comments, sign a petition, and vote on any property tax issues. " • All local governments must allow petitions from citizens to propose property tax reductions. This is probably true under current law for most municipalities, but creates new rights for citizens of school districts, counties and special districts. • All property tax elections must be in November. This provision further reduces the flexibility of elections and requires that they be voted only in November. • Property tax increases must be voted separately from related debt questions. This overrules TABOR case law which has allowed debt and related tax increases to pay the debt to be voted in a single question. This could result in situation where voters approve debt, but do not approve the property taxes to pay the debt. • Property tax bills may list only property taxes and late charges. Under current law, it is possible for delinquent fees and charges or for special assessments to be collected on the property tax bill. • Enterprises and authorities must pay property taxes. Since this will result in an increase in revenue to the taxing entities, the tax rates must be lowered to avoid windfall revenues. Since enterprises, such as water utilities, are business -like activities, this will apparently require an increase in the rates charged by the utilities. Oddly, this means users will pay higher utility rates (which are not deductible for federal income tax purposes) and lower property taxes (which are deductible). • Enterprises and unelected boards may not levy mandatory fees or taxes on properties. This appears to be addressed in part at enterprises such as stormwater or drainage enterprises which impose mandatory fees, and could also encompass entities such as business improvement districts and downtown development authorities which have appointed boards but have the power to levy property taxes. • Any future property tax increase may only be for 10 years. The intent of this provision appears to be to require voters to revisit every tax increase every 10 years. It is unclear whether this 10 -year period begins on the date of the property tax election or on the date the tax is first imposed. • Extension of an expiring tax is a tax increase. This overrules a court case interpreting TABOR. It also means that in the future such tax extensions will have to comply with rABOR's more restrictive election rules applicable to tax increases. • Prior revenue change (i.e., debrucing) elections allowing property tax revenues to be retained are of no force and effect. Future debrucings expire in four years. Page 1 of 2 http: / /www. shermanhoward. comINewsAndEventsIViewl4C4DFOCC -5056- 9125- 632FAFBDEB525E431 5/20/2010 Amendment 60 - Would Limit Property Taxes Page 2 of 2 With the expiration of the debrucings, governments may have to recalculate permitted revenue increases pursuant to TABOR's formula from the date TABOR became effective. This calculation could be particularly difficult where a local government has received voter approval for broad debrucing questions, since this provision only invalidates property tax debrucings. • By 2020 school districts must phase out one -half of their 2011 tax rates (excluding debt service levies). The State must backfill the lost revenues. This appears to be an attempt to shift even more of the cost of public education from local taxpayers to the state government The state is not given any more resources to make this backfill (and, in fact, Proposition 101 would drastically reduce state revenues). • Nothing in this proposal is to limit to the payment of bonds issued before 2011. The proposal also contains the following provisions aimed at overturning judicial interpretations of TABOR related to property tax increase, extension and abatement rates after 1992: • Property taxes exceeding state laws and tax policies, or limits violated, changed, or weakened without state voter approval are terminated. Those laws, policies, and limits, including debt limits, are restored. This provision seems to be intended to overturn the Supreme Court's decision upholding the legislature's mill levy freeze for school districts. It would also reinstate statutory debt limits that were removed or weakened by the legislature since 1992, such as those pertaining to school districts and general improvement districts. Taxes that exceed the one annual fixed, final, numerical dollar amount first listed in their tax increase ballot title, as stated in (3)(c) of TABOR, are invalid. This provision requires that a tax increase be stated as a specific dollar amount that cannot be exceeded without further voter approval. So, for example, a ballot question that authorized a tax increase of $100,000 in the first year and then whatever amounts are raised annually by a specified tax rate in subsequent years would, under this provision, only authorize a maximum collection of $100,000. This provision will require each local government which received voter approval for a tax increase since 1992 to carefully review its ballot question and determine what portion, if any, of the tax increase is still valid if Amendment 60 is adopted. • Those property tax rates imposed after 1992, without voter approval of a ballot item as stated in (3)(c) of TABOR, are terminated. This provision seems to be intended to overturn a court decision that an expiring tax could be extended without using TABOR's mandatory ballot formulation for tax increases. Under this proposal, the State must annually audit and enforce the provisions of this proposal. Any person may file suit to enforce the strictest compliance with all property tax requirements of TABOR. Successful plaintiffs shall always be awarded costs and attorney fees; districts shall receive neither. This voter - approved revenue change supersedes conflicting laws, opinions, and constitutional provisions, and shall always be strictly interpreted to favor taxpayers. If you have any questions regarding this article or its possible impact on your activities and operations, please contact your Sherman & Howard attorney or one of the attorneys in our Public Finance Group. Sherman & Howard has prepared this advisory to provide general information on recent legal developments that may be of interest. This advisory does not provide legal advice for any specific situation. This does not create an attorney- client relationship between any reader and the Firm. If you want legal advice on a specific situation, you must speak with one of our lawyers and reach an express agreement for legal representation. © 2010 Sherman & Howard L.L.C. February 5, 2010 http:// www. shermanhoward. comINewsAndEventsIViewl4C4DFOCC -5056- 9125- 632FAFBDEB 525E431 5/20/2010 Amendment 61 - Would Limit State and Local Government Debt MAII Home > Publications > Client Advisories > View Amendment 61 - Would Limit State and Local Government Debt This proposal amends Article X, Section 20 of the Colorado Constitution ('TABOR ") to add a new section to prohibit State debt and limit local government debt. It also amends certain sections of Article XI. The amendments to TABOR will be in addition to all other provisions of TABOR. The proposal applies after 2010 and provides that all conflicting laws, rulings and practices would be repealed, overturned and superseded. The proposal applies to "any loan, whether or not it lasts more than one year; may default; is subject to annual appropriation or discretion; is called a certificate of participation, lease- purchase, lease -back, emergency, contingency, property lien, special fund, dedicated revenue bond, or any other name; or offers any other excuse, exception, or form." This definition appears broad enough to include all government borrowings, including conduit borrowings on behalf of private entities such as private activity bonds. The State is prohibited from borrowing, directly or indirectly, money or other items of value for any reason or for any period of time. This applies to any loan, whether it lasts more than a year or not, regardless of its form. Specifically, this addresses lease purchase agreements and certificates of participation and other obligations subject to annual appropriation which have been exempt from voting requirements under existing law. This prohibition applies to the State and its enterprises, authorities and other state political entities. Apparently, this means that the Colorado Housing and Finance Authority, Colorado Educational and Cultural Facilities Authority, the institutions of higher education, State Transportation Commission and all other State level entities will be absolutely prohibited from borrowing money for any purpose. There is not even an option for voter approval. Under current law, the State or its related entities have been able to borrow without a vote through lease purchase agreements, notes payable within the fiscal year, or enterprise revenue bonds. These will all be prohibited. Local governments and their enterprises, authorities and other local political entities may borrow money, but only after a November vote. All local government borrowings are subject to voter approval under this proposal. Under current law, a number of entities, borrowing activities and borrowings are exempted from voter approval, such as: enterprises, refundings at a lower rate, urban renewal authorities, and notes payable within the fiscal year. Also, some entities have been able to have elections at times other than November under TABOR, such as certain municipalities and all Title 32 special districts. All elections on borrowings would now be in November. For entities other than enterprises, there will be a debt limit of 10 percent of the assessed taxable value of the real property in the jurisdiction. Note that this excludes personal property. Also, for some entities, this would be a real decline from existing law. For example, school districts have a debt limit which is generally 20 percent of assessed value. Any new borrowing apparently has to be in the form of bonded debt, be subject to prepayment without penalty (and at any time) and mature within 10 years. It is not clear whether contracts that represent a multiple - fiscal -year financial obligation, but not a borrowing, are covered under either the State prohibition or the local government election requirement. For example, are any of the following a borrowing covered by the proposal: employment contracts, construction contracts, operating leases, agreements between governments to share revenues, or economic development agreements between a government and a private entity? The proposal states that "No borrowing may continue past its original term." The proposal also provides that "all current borrowings shall be paid." Perhaps this means that there can be no extension of a borrowing through a refunding, or perhaps it means that if a borrowing is not paid at maturity, it is deemed paid. Some are suggesting that the phrase all current borrowings shall be paid" means that outstanding borrowings must be paid off in 2011. However, it does not say when the borrowing must be paid, so perhaps it means the borrowing must be paid when due in accordance with its original terms. The proponents' website explains this provision as: "Subparagraph (iii) prevents borrowing from going beyond its payoff date; that would be a new borrowing after 2010. Any borrowing before 2011 must be paid, whether legal or not." So it appears that the intent is that this is in the nature of a savings clause - that nothing in the proposal impairs existing borrowings. Except for enterprise borrowings, when a borrowing is repaid, tax rates must decline in an amount equal to its planned average repayment, even if the debt is not repaid from taxes. So if a City issued tax increment revenue bonds for its downtown development authority, City tax rates would Page 1 of 2 http: / /www. shennanhoward .com/NewsAndEventsNiewl4C54C296 -5056- 9125- 63E8A637E26446A51 5/20/2010 Amendment 61 - Would Limit State and Local Government Debt apparently have to go down when the debt is paid. This may effectively turn the local government election requirement into a debt prohibition for borrowings not paid from taxes. The proposal also makes some changes to Article XI of the Constitution, none of which seem significant given the TABOR provisions, except that the proposal adds to Section 6 a requirement that the ballot title specify the use of the funds, which shall not be changed. If you have any questions regarding this article or its possible impact on your activities and operations, please contact your Sherman & Howard attorney or one of the attorneys in our Public Finance Group. Sherman & Howard has prepared this advisory to provide general information on recent legal developments that may be of interest. This advisory does not provide legal advice for any specific situation. This does not create an attorney- client relationship between any reader and the Firm. if you want legal advice on a specific situation, you must speak with one of our lawyers and reach an express agreement for legal representation. © 2010 Sherman & Howard L.L.C. February 5, 2010 Page 2 of 2 http: / /www. shennanhoward .comINewsAndEventsIV iewl4C54C296 -5 05 6- 9125- 63E8A63 7E26446A51 5/20/2010 Proposition 101 - Would Reduce Vehicle, Income Tax <br >and Telecommunication Revenues Page 1 of 1 Home > Publications > Client Advisories > View Proposition 101 -Would Reduce Vehicle, Income Tax and Telecommunication Revenues Proposition 101 is a statutory change that reduces the State income tax, various motor vehicle fees and taxes and fees on telecommunication services. When fully implemented, the provisions of this proposal would reduce State income tax revenues, State and local revenues from a range of sales taxes and vehicle fees, and State revenues from telecommunications charges and fees. While official estimates are not available, it is possible that annual revenue losses will be substantial. Vehicle Fees and Taxes. Starting January 1, 2011, the following rules would apply: Specific ownership taxes must decrease in four equal yearly steps to $2 for new vehicles and $1 for old vehicles. All registration, license, and title charges combined shall total $10 yearly per vehicle. There will be no State or local taxes on vehicle rentals or leases. There will be no State or local taxes on the first $10,000 of value of vehicle sales prices (this is phased in over four yearly equal steps). All other State and local charges on vehicles and vehicle uses must cease (except for the charges listed above and tax, fine, toll, parking, seizure, inspection, and new -plate charges). Any new charges would be deemed to be taxes, which would apparently invoke the voting requirements of the Constitution. Income Taxes. The 2011 income tax rate shall be 4.5 percent (a reduction from the current rate of 4.63 percent). Later rates shall decrease 0.1 percent yearly, in each of the first ten years that yearly income tax revenue net growth exceeds 6 percent, until the rate reaches 3.5 percent. Telecommunication. Starting January 1, 2011, no charge by, or aiding programs of, the State or local governments shall apply to telephone, pager, cable, television, radio, internet, computer, satellite, or other telecommunication service customer accounts. Any new charges would be deemed tax increases, which would apparently invoke the voting requirements of the Constitution. Emergency 911 fees are permitted to continue at 2009 rates. The proposal provides that "this voter - approved revenue change shall be strictly enforced to reduce government revenue." The phrase "voter- approved revenue change" seems to refer to Article X, Section 20 of the Constitution ('TABOR "). It may be that the drafters intend to reduce the TABOR permitted revenue limits by this proposal and this may apply to governments that have had revenue change (i.e., debrucing) elections. The proposal is self- executing, severable, and a matter of statewide concern that overrides conflicting statutes and local laws. Prevailing plaintiffs (but not defendants) must have their legal fees and court costs repaid. The State must audit yearly compliance "to reduce unfair, complex charges on common basic needs." If you have any questions regarding this article or its possible impact on your activities and operations, please contact your Sherman & Howard attorney or one of the attorneys in our Public Finance Group. Sherman & Howard has prepared this advisory to provide general information on recent legal developments that may be of interest. This advisory does not provide legal advice for any specific situation. This does not create an attorney- client relationship between any reader and the Firm. If you want legal advice on a specific situation, you must speak with one of our lawyers and reach an express agreement for legal representation. © 2010 Sherman & Howard L.L.C. February 5, 2010 http: / /www. shermanhoward. comINewsAndEvents/Viewl4C47AFC9 -5056- 9125- 63ED7C6F544C6C401 5/20/2010 Memo To: Honorable Mayor and Town Council Thru: Larry Brooks, Town Manager Initials Legal: Eric Heil, Town Attorney From: Scott Wright, Asst. Town Manager — Finance Jaime Walker, Community Relations Officer Date: May 18, 2010 Re: Connect Avon Now Ballot Question Review Summary: The Connect Avon Now (CAN) project is a package of prioritized improvements to mass transit, trails, and parking which currently do not have a source of funding. Voter approval will be needed in November 2010 to create dedicated revenue sources and to authorize the Town to issue debt, both required steps for implementation of this project. The primary objective and focus of Tuesday's worksession is for a final conclusion to be reached regarding the forwarding of ballot questions to the voters in November. This action would consist of adopting a resolution at a subsequent Council meeting, which would authorize a TABOR election on November 2, 2010, and which would fix the ballot titles and questions, and sets forth other details regarding the ballot questions. The two proposed ballot questions, in the form of a resolution authorizing the election, is attached to this memo as Exhibit A. Dee Wisor from Sherman and Howard, the Town's Bond Counsel, and Jonathan Heroux from Piper Jaffrey will be present to answer questions and provide additional insight into our recommendations. If the resolution discussed above is adopted at a subsequent Council meeting, the restrictions pursuant to the Colorado Fair Campaign Practices Act (FCPA) would begin at that time. The FCPA generally prohibits a government from expending any public moneys from any source to urge electors to vote for or against any local ballot issues, among other things. Therefore a "handoff'to an election or issues committee to take over the promotion of the election would be necessary at that time. Page 1 Previous Council Action: Following the schedule established at the January 26th meeting, factual information regarding Connect Avon Now was assembled and was used for public outreach. Public outreach for Connect Avon Now included focus groups, published communiques, a webpage on the Town's website, and a public open house all in an effort to help inform the citizenry of the project. The Open House held on April 29"' included nine community members. A slide presentation with the proposed scope of Connect Avon Now, including a list of specific project components, costs, and funding sources and a prepared list of frequently asked questions was shared with the attendees. Discussion was elicited on the scope, components, costs and general opinions of the project. The discussion focused primarily on the need for future parking and where the parking structure(s) would be located. A summary of the discussion comments can be found in Exhibit B. Discussion: Town staff worked with bond council to prepare the attached ballot language supporting the Connect Avon Now project. Per TABOR, taxing questions and bond issue questions are required to be voted on separately. The first ballot question is regarding a tax increase; the second ballot question is regarding debt authorization. Question 1, ConnectAvon Now: Tax Increase The tax increase ballot question, if presented to the Avon voters and approved, provides the resources necessary to accomplish the objectives of Connect Avon Now based on a number of visionary exercises performed by the Town Council including the Town of Avon Comprehensive Plan, the Transportation Comprehensive Plan, the 2009 Community Survey, the 2009 Parks Survey, and a number of discussions and presentations regarding shared visions for multi -modal mobility improvements, transit -based development, parking and trails. Outside of the various TABOR ballot title and required language, tax increase question is a two -part question. The first part asks the voters to increase the Town's sales tax rate by $.85, increasing the rate from 4.0% to 4.85 %. The second part, broken down into 2 sections, asks the voters to approve an extension of property taxes that will expire — the first section addresses the 2011 expiration of the current Avon Metro District mill levy, the second section addresses the 2017 expiration of the Town's only remaining outstanding general obligation bonds (and related mill levy). The required language for this levy is a tax increase. Question 2, ConnectAvon Now: Debt Increase The debt increase ballot question, if passed, would authorize the Town to issue up to $10 million in bonds over the next several years for the various purposes as stated in the ballot language. The authorization of only $10 million focuses on only those improvements that • Page 2 could not otherwise be financed through lease - purchase type financing. Or, in other words, is not contemplated to include the construction of a parking garage. If the tax increase ballot question is successful, it is contemplated that the parking garage would either be constructed using Certificates of Participation that do not require voter approval to issue, or that a debt authorization ballot question for only the parking garage would be submitted to the Avon voters sometime in the future. The reasoning behind this recommendation is that staff is not comfortable with a bond authorization question that includes a parking garage without more due diligence regarding the design, construction costs, and timing of the construction. The table below illustrates the proposed improvements that would be constructed with the use of these bond proceeds. Please note that only approximately one -half of the authorization would be issued until such time that the Town had funding partners for those other particular projects. New Trails and Pedestrian Improvements Cost - Singletree/Nottingham Trailhead $ 148,500 - Nottingham to Buck Cr. Trail Connector 50,000 - W. Beaver Creek Blvd. Pedestrian Improvements 50,000 - Metcalf Rd. Bike Lane 500,000 - Chapel Place Pedestrian Improvements 50,000 - Lower Buck Cr. Trail 100,000 - Upper Buck Cr. Trail Improvements 55,000 - Beaver Creek Overlook Trail Improvements 251,000 - Metcalf Recreational Trail and Trailhead 245,000 - Saddle Ridge Trail 38,000 - Misc. Recreational Trail Restorations 33,000 - Paved Trail from W. Beaver Cr. Blvd. to Lake St. 350,000 Sub -total New Trails and Pedestrian Improvements 1,850,000 Partnership Projects (Avon's Share of Cost) - Pedestrian RR Crossing @ Eagle Bend Dr. 185,000 - HWY 6 Pedestrian Underpass @ Beaver Creek 1,000,000 - Hwy 6 Sidewalks 500,000 - I -70 Pedestrian Underpass @ Metcalf Rd. 1,500,000 - 1 -70 Pedestrian Overpass @ Buffalo Ridge 2,000,000 Sub -total Partnership Projects 5,185,000 Bus Stops and Pull -outs 2,500,000 Cost Reimbursement, Bond Issuance Costs, Bond Reserves 500,000 Total Bond Authorization 10 • Page 3 Other considerations for the proposed debt increase question included the following: - A debt increase question that included the total parking structure cost of approximately $30 to $40 million might scare voters. - Bonds should only be issued for those projects that can be completed within in three years. - Bonds authorizations are only good for approximately ten years. - Implications of proposed Constitutional Amendments 60 and 61 and Proposition 101. - Adequate bond authorization assists the Town in receiving grant funds and inclusion on ready -to -go project lists. Once the ballot question(s) is certified by the Town Council and referred to the County Clerk the responsibility for the public awareness campaign for Connect Avon Now will transition to a newly formed campaign committee. This committee will be comprised of private stakeholders who, in addition to furthering public awareness, will also be responsible for fundraising and media relations. Recommendation: Staff recommends bring forward a resolution on June 22, 2010, authorizing a TABOR election on November 2, 2010, fixing the ballot title and questions, and setting forth other details. Town Manager Comments: Attachments: Exhibit A. Proposed Ballot Questions Exhibit B. Open House Discussion Comments Exhibit C. Connect Avon Now Background and Timeline • Page 4 EXHIBIT A DRAFT — FOR DISCUSSION ONLY TOWN OF AVON, COLORADO RESOLUTION NO. A RESOLUTION OF THE TOWN OF AVON AUTHORIZING A TABOR ELECTION ON NOVEMBER 2, 2010, FIXING THE BALLOT TITLE AND QUESTION, AND SETTING FORTH OTHER DETAILS RELATING THERETO. WHEREAS, the Town of Avon (the `Towd), is a duly organized and existing home rule municipality of the State of Colorado, created and operating pursuant to Article XX of the Constitution of the State of Colorado and the home rule charter of the Town; and WHEREAS, the members of the Town Council of Town of Avon (the "Council) have been duly elected and qualified; and WHEREAS, Article X, Section 20 of the Colorado Constitution (TABOR) requires voter approval for any new tax, the creation of any debt and for spending certain moneys above limits established by TABOR; and WHEREAS, TABOR requires the Town to submit ballot issues (as defined in TABOR) to the Town's electors on limited election days before action can be taken on such ballot issues; and WHEREAS, November 2, 2010, is the date of the regular election in the Town and one of the election dates at which ballot issues may be submitted to the eligible electors of the Town pursuant to TABOR; and WHEREAS, §31- 11- 111(2) authorizes the Town to submit any question to the vote of the registered voters of the municipality by adoption of a resolution; and WHEREAS, the Council hereby determines that it is necessary to submit to the electors of the Town, at the regular election to be held on November 2, 2010, the questions of (i) increasing the Town sales tax and Town property tax and (2) incurring debt to finance certain multi -modal mobility improvements (the`Project); and WHEREAS, Section 3.1 of the Avon Home Rule Charter (`Chartef) states that special and general municipal elections shall be governed by the Colorado Municipal Election Code of 1965 as now existing or hereafter amended or modified, except as otherwise provided in the Charter or as Council may prescribe by ordinance; and WHEREAS, pursuant to §31 -10- 102.7, C.R.S., of the Colorado Municipal Election Code of 1965 and Section 1.12.010 of the Avon Municipal Code, the Town has determined to utilize the requirements of the Uniform Election Code of 1992, Articles 1 to 13 of Title 1, C.R.S. (the `Uniform Election Co&), and to coordinate a regular municipal election with Eagle County; WHEREAS, it is necessary to set forth certain procedures concerning the conduct of the election. DRAFT — FOR DISCUSSION ONLY NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, AS FOLLOWS: Section 1. All action heretofore taken (not inconsistent with the provisions of this resolution) by the Town and the officers thereof, directed towards the election and the objects and purposes herein stated is hereby ratified, approved and confirmed. Section 2. Unless otherwise defined herein, all terms used herein shall have the meanings defined in the Uniform Election Code. Section 3. The regular municipal election of the Town to be held on November 2, 2010, shall be held and conducted as a coordinated election to be conducted by the County Clerk and Recorder in accordance with the Uniform Election Code. Section 4. Pursuant to the applicable provisions of the laws of the State of Colorado and the Town Charter, the Town Council hereby submits to the registered electors of the Town, at such regular Town election to be held on November 2, 2010 (the "election ") the ballot issues specified in Section 5 below. Section 5. The following ballot issues, certified in substantially the forms set forth below, are hereby referred to the registered electors of the Town and shall appear on the ballot of the Town of Avon at the election: QUESTION _ CONNECT AVON NOW PROJECT: TAX INCREASE SHALL TOWN OF AVON TAXES BE INCREASED $2,944,000 ANNUALLY BEGINNING IN 2011 AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY IN EACH SUBSEQUENT YEAR FROM THE FOLLOWING TAXES FOR THE PURPOSE OF FINANCING, CONSTRUCTING, ACQUIRING, OPERATING AND MAINTAINING OF MULTI -MODAL MOBILITY IMPROVEMENTS INCLUDING RECREATIONAL TRAILS FOR NON - MOTORIZED USE, PEDESTRIAN SIDEWALKS, BICYCLE PATHS, BRIDGES, CONNECTIONS AND PLAZAS, MASS TRANSPORTATION FACILITIES, MASS TRANSIT VEHICLES, MASS TRANSIT EQUIPMENT AND SYSTEMS, AND PARKING FACILITIES: (1) BY AN INCREASE IN THE TOWN SALES TAX RATE OF 0.85% (EIGHTY -FIVE ONE - HUNDREDTHS OF ONE PERCENT, INCREASING THE TOTAL SALES TAX RATE IMPOSED BY THE TOWN OF AVON FROM 4.0% TO 4.85 %), SUCH CHANGE TO BE IN EFFECT AS OF JANUARY 1, 2011; (2) BY AN INCREASE IN THE TOWN'S MILL LEVY OF UP TO 2.250 MILLS WHICH INCREASE MAY NOT TAKE EFFECT UNTIL JANUARY 1, 2011 AFTER THE DECREASE IN THE AVON METROPOLITAN DISTRICT MILL LEVY UPON PAYMENT OF THE AVON METROPOLITAN DISTRICT'S BONDS, PROVIDED THAT SUCH MILL LEVY RATE MAY BE ADJUSTED IN ANY FISCAL YEAR DOWNWARDS OR UPWARDS BY DRAFT Ballot Resolution, 5 -20 -10 ejh Page 2 of 8 DRAFT - FOR DISCUSSION ONLY THE TOWN COUNCIL IN ITS DISCRETION SO LONG AS THE TOTAL MILL LEVY IMPOSED BY THIS SUB - PARAGRAPH (2) DOES NOT EXCEED 2.250 MILLS; (3) BY CONTINUATION OF THE TOWN'S MILL LEVY OF UP TO 2.250 MILLS WHICH IS CURRENTLY USED TO PAY DEBT SERVICE ON THE TOWN'S GENERAL OBLIGATION BONDS WHICH CONTINUATION MAY NOT TAKE EFFECT UNTIL SUCH BONDS ARE PAID, PROVIDED THAT SUCH MILL LEVY RATE MAY BE ADJUSTED IN ANY FISCAL YEAR DOWNWARDS OR UPWARDS BY THE TOWN COUNCIL IN ITS DISCRETION SO LONG AS THE TOTAL MILL LEVY IMPOSED BY THIS SUB - PARAGRAPH (3) DOES NOT EXCEED 2.250 MILLS; (4) IF AMENDMENT 60 TO THE COLORADO CONSTITUTION IS PASSED BY THE VOTERS OF THE STATE ON NOVEMBER 2, 2010, THE MAXIMUM DOLLAR AMOUNT WHICH MAY BE COLLECTED BY THE TOWN PURSUANT TO THE MILL LEVIES DESCRIBED ABOVE IN SUB- PARAGRAPHS (2) AND (3) MAY NOT EXCEED $2,944,000 IN ANY YEAR. AND SHALL THE TOWN BE AUTHORIZED TO COLLECT, RETAIN AND SPEND ALL REVENUES FROM SUCH TAXES AND THE EARNINGS FROM THE INVESTMENT OF SUCH REVENUES AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? QUESTION CONNECT AVON NOW PROJECT: DEBT INCREASE SHALL TOWN OF AVON DEBT BE INCREASED BY UP TO $10,000,000.00 WITH A MAXIMUM REPAYMENT COST OF UP TO $20,410,914.00 AS FOLLOWS: (1) SUCH DEBT MAY BE ISSUED FOR THE PURPOSE OF FINANCING, CONSTRUCTING, ACQUIRING, OPERATING AND MAINTAINING OF MULTI -MODAL MOBILITY IMPROVEMENTS INCLUDING RECREATIONAL TRAILS FOR NON - MOTORIZED USE, PEDESTRIAN SIDEWALKS, BICYCLE PATHS, BRIDGES, CONNECTIONS AND PLAZAS, MASS TRANSPORTATION FACILITIES, MASS TRANSIT VEHICLES, MASS TRANSIT EQUIPMENT AND SYSTEMS, AND ANY COSTS NECESSARY OR INCIDENTAL THERETO, INCLUDING WITHOUT LIMITATION, ANY COSTS WHICH THE TOWN MAY INCUR IN CONNECTION WITH THE DEBT OR IMPROVEMENTS TO BE FINANCED AND THE COST OF ESTABLISHING RESERVES TO SECURE THE PAYMENT OF SUCH DEBT; (2) SUCH DEBT MAY BE EVIDENCED BY THE ISSUANCE OF BONDS, LOAN AGREEMENTS, INTERGOVERNMENTAL AGREEMENTS OR OTHER MULTIPLE FISCAL YEAR FINANCIAL OBLIGATIONS PAYABLE DRAFT Ballot Resolution, 5 -20 -10 ejh Page 3 of 8 DRAFT — FOR DISCUSSION ONLY FROM ANY TOWN REVENUES AS THE TOWN COUNCIL MAY PLEDGE TO THE PAYMENT OF THE DEBT; (3) SUCH DEBT MAY BE SOLD OR ENTERED INTO FROM TIME TO TIME AT A PRICE ABOVE, BELOW OR EQUAL TO THE PRINCIPAL AMOUNT OF SUCH DEBT, ON SUCH TERMS AND CONDITIONS AS THE TOWN MAY DETERMINE, INCLUDING PROVISIONS FOR REDEMPTION OF THE DEBT PRIOR TO MATURITY WITH OR WITHOUT PAYMENT OF PREMIUM; AND SHALL THE TOWN BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE TOWN PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION; AND SHALL THE PROCEEDS OF SUCH DEBT AND ANY INVESTMENT INCOME THEREON BE COLLECTED, RETAINED, AND SPENT AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? Section 6. The Town Clerk is hereby appointed as the designated election official of the Town for purposes of performing acts required or permitted by law in connection with the election. Section 7. If a majority of the votes cast on the question to authorize the bonds and the increase of taxes submitted at the election shall be in favor of issuance of the bonds and the increase of taxes as provided in such question, the Town acting through the Council shall be authorized to proceed with the necessary action to issue the bonds and the increase such sales tax in accordance with such question. Any authority to issue the bonds and increase in tax, if conferred by the results of the election, shall be deemed and considered a continuing authority to issue the bonds and increase taxes so authorized at any one time, or from time to time, and neither the partial exercise of the authority so conferred, nor any lapse of time, shall be considered as exhausting or limiting the full authority so conferred. Section 8. If a majority of the votes cast on the ballot question authorize the issuance of bonds, the Town intends to issue such bonds in the approximate aggregate principal amount of $10,000,000.00 to pay the costs of the Project, including the reimbursement of certain costs incurred by the Town prior to the execution and delivery of such bonds, upon terms acceptable to the Town, as authorized in an ordinance to be hereafter adopted and to take all further action which is necessary or desirable in connection therewith. The Town shall not use reimbursed moneys for purposes prohibited by Treasury Regulation §1.150-2(h). This resolution is intended to be a declaration of "official intent" to reimburse expenditures within the meaning of Treasury Regulation § 1.150 -2. DRAFT Ballot Resolution, 5 -20 -10 ejh Page 4 of 8 DRAFT — FOR DISCUSSION ONLY Section 9. Pursuant to the Uniform Election Code, any election contest arising out of a ballot issue or ballot question election concerning the order of the ballot or the form or content of the ballot title shall be commenced by petition filed with the proper court within five days after the title of the ballot issue or ballot question is set. Section 10. If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall in no manner affect any remaining provisions of this resolution. Section 11. All resolutions or parts of resolutions inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any resolution or part of any resolution heretofore repealed. Section 12. The effective date of this resolution shall be immediately upon adoption. INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Avon, Colorado, on June 22, 2010. TOWN COUNCIL: ATTEST: By: Ronald C. Wolfe, Mayor By: Patty McKenny, Town Clerk [seal] APPROVED AS TO FORM: By: Eric Heil, Town Attorney DRAFT Ballot Resolution, 5 -20 -10 ejh Page 5 of 8 DRAFT — FOR DISCUSSION ONLY STATE OF COLORADO ) COUNTY OF EAGLE ) SS. TOWN OF AVON ) I, Patty McKenny„ the Town Clerk of the Town of Avon, Colorado (the "Town "), do hereby certify: 1. The foregoing pages are a true and correct copy of a resolution (the "Resolution ") passed and adopted by the Town Council of the Town (the "Council ") at a regular meeting of the Council held on [date], 2010. 2. The Resolution was duly introduced, moved and seconded and passed on at the regular meeting of [date], 2010, by an affirmative vote of a majority of the members of the Council as follows: Name "Yes" "No" Absent Abstain Ronald C. Wolfe, Mayor Brian Sipes, Mayor Pro Tem Richard Carroll David Dantas Kristi Ferraro Amy Phillips Buz Reynolds 3. The members of the Council were present at the meeting and voted on the passage of such Resolution as set forth above. 4. The Resolution was approved and authenticated by the signature of the Mayor, sealed with the Town seal, attested by the Town Clerk and recorded in the minutes of the Council. 5. There are no bylaws, rules or regulations of the Council which might prohibit the adoption of said Resolution. DRAFT Ballot Resolution, 5 -20 -10 ejh Page 6 of 8 DRAFT — FOR DISCUSSION ONLY 6. Notice of the regular meeting of [date], 2010, in the form attached hereto as Exhibit A was posted at the Avon Town Hall, 400 Benchmark Road, Avon, Colorado, not less than twenty -four hours prior to the meeting in accordance with law. Town Clerk (SEAL) DRAFT Ballot Resolution, 5 -20 -10 ejh Page 7 of 8 DRAFT — FOR DISCUSSION ONLY EXHIBIT I (Attach Notice of Meeting) DRAFT Ballot Resolution, 5 -20 -10 ejh Page 8 of 8 Exhibit B Town of Avon Open House Discussion Comments • I understand the need for skier parking, would the parking structure be for current businesses or skiers? • Where are the parking structures going to be located? • It is scary and dangerous to walk through town especially through the round -a- bouts. I drive even if it is a short trip. • Will it cost to park in the structure? • There are parking difficulties in Vail. If Vail would fix the parking, Avon might not have parking issues. If CAN doesn't go through, Avon should push Vail to address their parking. • Create demand for structure. Walk before you run. Use up the existing surface lots. • Pier 1 lot is never full. • Are people really using our bus system? Are the buses empty? Can we justify existing buses? • People need to go slower on Avon road. • I am pleasantly surprised you have a way to pay for the project that is reasonable. The mill levy is reasonable since it is close to the cost of the latte. • Business is concerned about sales tax. People are watching their pennies. I take a lot of flack from people who are not accustomed to paying tax on food. I'm not convinced that additional foot traffic will compensate. • Glad about the mill levy replacement. • There is a general lack of awareness of finances and taxes. • Do any of these projects dovetail with urban renewal authority or are the funds for the URA separated? Page 5 of 8 Exhibit C Town of Avon Connect Avon Now Background and Timeline Background A variety of improvements to transportation infrastructure have been requested by the community during preparation of the Comprehensive Plan (2006), West Town Center Plan (2007), Community Survey (2008), and Comprehensive Transportation Plan (2009) work. These studies and plans are congruent regarding the need for better multi -modal connectivity which would make Avon a more walkable, urban- village type community where commercial areas, affordable housing, and recreational amenities are easily accessible. The Avon Comprehensive Transportation Plan (2009) provided the basis of the specific project components included in Connect Avon Now. That engineering document was developed from the broad vision and goal statements adopted with Avon's "Comprehensive Plan" (2006). Where the Transportation Plan included recommendations for improvements needed through 2035 and costing over $100 million, the intent of Connect Avon Now is to focus on only those improvements that will be critically needed within the next 10 -15 years and can realistically be funded through new, voter - approved revenue sources. Previous Council Actions: The Town Council has been involved in planning transportation improvements in Avon for many years. Efforts to establish a specific package of transit, trails, and parking improvements, and to develop a funding mechanism for such improvements, have been in the works since about July 2009. 2006— Town Council adopted the Avon Comprehensive Plan. August 2007— Town Council adopted the Avon West Town Center Plan (Design Workshop, 2007). This plan includes provision of a 300 -350 stall parking garage located on or near Main Street. July 2008 — Community survey results were presented to Town Council which showed strong public support for transit and trails. March 10, 2009 — The concepts which were later embedded in the Strategic Transit Plan portion of the Transportation Comprehensive Plan were presented to Town Council. This presentation described historic financial performance of the Avon Transit enterprise fund and offered a long -term vision for transit which included the new routes and services. Funding options were also discussed, including sales tax increase, hotel /motel tax increase, property tax increase, and formation of a general improvement district (GID). June 23, 2009 — Transit survey results were presented to Town Council which showed strong public support for expansion of transit and trails and creation of a new funding mechanism to pay for the added services /facilities. Page 6 of 8 July 14, 2009 — Staff highlighted the specific transit services and a sample list of trail /pedestrian project components that could be funded under a new project initiative. Note that this meeting initially introduced this project as the "Avon Walkable Community Project" but, after some discussion, Council expressed a preference for re- naming the project to Connect Avon Now. Town Council directed staff to 1) notify the County Clerk of Avon's intent to have a ballot question in November 2009 and 2) provide more information about options for funding the project. July 28, 2009 — Presentation of Preliminary Financial Modeling for Sales Tax increase to fund transit and trails. Discussion of possible use of hotel /motel tax and /or GID was explored further. August 11, 2009 —Town Council decided to delay plans to place a transit /trails question on the November 2009 ballot in order to allow more time to carefully study the issues. Preference for a November 2010 ballot date was expressed. August 28, 2009 — The 2010 Transit Division Budget was proposed. September 22, 2009 —The Transportation Comprehensive Plan (FHU, 2009) was adopted by Town Council on this date. This document describes a near -term plan to expand transit bus service to connect the Village at Avon and Beaver Creek Ski Area by modifying routes and frequency to add another 6,000 service hours. The plan includes a list of over $7,000,000 worth of recommended pedestrian, bicycle, and recreational trail capital improvements. Associated transit capital improvements and fleet replacement needs are also identified in that document. October 20, 2009 - 2010 Budget Retreat, Final Transit Division budget for 2010, focus Transit and Trails funding strategy. Town Council requested addition of public parking into the shared vision for the project. November 10, 2009 — Town Council developed a consensus about the shared vision for Connect Avon Now. This vision included the scope, schedule, and budget implications of transit, trails, and parking project components included in the project. December 8, 2009 — Public finance experts described their experience on similar ballot questions. They emphasized the important role of Town Council with respect to public outreach. January 26, 2010— Staff provided an update on Connect Avon Now, which included a schedule of activities planned for spring 2010. February 23, 2010— Staff offered a status report on the work being done to assemble factual information for Connect Avon Now. April 13 -- Town Council received update on community outreach efforts including a Page 7 of 8 review of comments and feedback from the March focus groups. Proposed Timeline: May -- Council members and community leaders discuss transportation challenges with constituents and present Connect Avon Now as the solution. - -Form a campaign committee and hold initial meeting June June 22 - -Town Council adopts the ballot question -- Campaign committee to begin fundraising campaign - -Draft speaking points and initial campaign fact sheet - -Civic and community group outreach -- Ongoing campaign committee meetings July - -Media campaign begins -- Ongoing community outreach -- Ongoing meeting of campaign committee group August -- Volunteer campaign manager brought on -- Ongoing campaign committee group meetings -- Fundraising continues September - -Town Clerk certifies ballot to Eagle County - -TABOR pro /con statement requirements met - -Labor Day visibility events -- Ongoing campaign committee group meetings - -Media campaign continues October -- Direct mail campaign -- Ongoing campaign committee group meetings - -Yard signs in field - -Walks /literature drops in targeted precincts - -Early voter tracking begins - -Media campaign continues -- Fundraising program continues -- Walk -in / early voting begins November -- Election Day Page 8 of 8 Date 6/16/10 07/13/10- 10/12/10 TB D 9/28/10 10/8/10 10/13/10 TOWN OF AVON 2011 BUDGET CALENDAR Attendees and Description Responsible Party Dept. Heads & Staff; Budget kickoff meetings with staff to discuss budget process, issues Brooks; Wright; and objectives. Huitt Six (6) Town Council worksessions w/ various budget - related presentations and discussions leading up to the budget retreat. Discussions may include topics such as: revenues, staffing and personnel, individual department budgets, asset management, financial models Presentation of non - profit funding requests to Council Presentation of Final Draft of CIP Long -range Plan Distribution of 2011 proposed budget to Council and staff Dress rehearsal for budget presentations Budget retreat with Council. Retreat will include departmental presentations, review of long -range CIP, final approval of non - profit 10/18/10 funding, and review of comprehensive financial model. 11/1/10 Notice of Public Hearing published in local newspaper 11/9/10 Public Hearing on 2011 budgets Adoption of 2011 Operating Budget, URA Budget, CIP Budget, and 11/23/10 Long -range plan 11/23/10 or 12/14/10 Certification of mill levy to County Commissioners 5/19/2010, 2:18 PM Page 1 Dept. Heads & Staff; Brooks; Wright; Huitt McKenney Hildreth / Wright / Strehler Huitt Dept. Heads Staff; Council McKenny Council Wright; Huitt; Council Wright; Huitt; Council FINANCIAL MATTERS May 25, 2010 1. YTD Building Revenue Report Actual vs Budget - April 2. Detail - Real Estate Transfer Taxes - April 3. Accomodations Tax Worksheet Actual vs Budget - March 4. Sales Tax Worksheet Actual vs Budget - March H \ ID ID OO U) (N (N N N q ID w O N L- M L- L- L- Ey W H H w \D W w ID m m H Ln U) Ln a W H H (� ry H H H H L n Ln 0 0 o 00 O o o L n LL n Ln U Co Co 0 0 0 0 Co Co Co �- Ln Lq o m Lq i, m m m as NN OHLom o C C Gl' lD l0 Lf1 I, W h d, d, d� �r V N ri d1 V) V) Lq mm 0000 m m m d1 0 0 0 0 z q W H, o 0 0 ww .-1LgW 0 0 0 O Wa h h 00 M H m m C CO 00 H N O o O W M U1 O O O 000 O O O O W o o O O p 0 o O O L H W N U o W N a E cq a Ln O P4 zw oa i O mm m m m � 0E, MM 0000 M M M � � wF Ln pH'.H mm m m m oFC ww tea, 11 11 w E W U L` h L` L` h z ul W d' a m m 0 O W o u) Ln Ln Ln Ln Ln U) Ln E P N z N w Ln D w a M 0 N N E o 0 0 0 0 0 0 0 0 Ln W o 0 0 0 0 0 0 0 0 q O O O o 0 0 0 o O O O O 00 0000 O O C O N L(1 Lq Lq lq o o Ln L(1 N E, t` (` N N Ln N cq N (N Ill W H H H O U q U ul u] F E W i-7 H U E W O O Ep Pwi I W { U - � ai � FE I O S ul I d UE)H W E, U) U)ul'JW U) N H -0 ul f H F W W W W U rio O xH 0 W a3U `G[�1z H N4 E W ©'J 11 �� 700q pH P4 �: W, Q qw'7 H PI UUHww z E O H FC •• H 0044 W W PI w WEo w0O I Zq H 0x1HaLn 0U'JZ04 0 w EF-�EO a0 zo q O�Wj(fp -1 00 H W zQ �O Il 'D W Il w E\•• 04 P4 w a0 WEa I W u) 11 .7 U) 0 P Uq W E z Om U ••U1 zH a' I z F(', i7 W a W(N W 0 ••zx WE O PI \ •• z z >1 o FC 0 O I U O E z PI U) o o H W W I E H E H W ly E' WOOOr� ,Z aW L7W W WO W FCW qW OFC FC FC FC zF 0U aF0 009 of 04 U NF , ENNNE-F Ln E E E cang E in w-I � u)E - iu)Lnu)E, E E E Town of Avon Real Estate Transfer TAx Calendar Year 2010 Purchaser Name Property Amount Received Riverfront PUD Mar -10 $ 155,481.87 $ 728,614.00 $ Land Title Guarantee Falcon Pointe 105 -8 36.00 Land Title Guarantee Falcon Pointe 105.52 22.00 Land Title Guarantee Falcon Pointe 202 -30 22.00 Land Title Guarantee Falcon Pointe 204 -5 50.00 Land Title Guarantee Falcon Pointe 403 -13 60.00 Land Title Guarantee Falcon Pointe 403 -33 20.00 Land Title Guarantee Falcon Pointe 405 -48 60.00 Land Title Guarantee Falcon Pointe 509 -5 45.00 Title Company Rockies Mtn. Vista 14 -10 1,973.00 Title Company Rockies Mtn. Vista 15 -10 796.00 Title Company Rockies Mtn. Vista 16 -10 1,393.00 Title Company Rockies Mtn. Vista 17 -10 199.00 Timeshare Transfer Mtn. Vista 1525 & 1527 -40 10.00 Alfred Puchebner Season @ Avon #509 7,650.00 Edward & Barbara Wolffe Alpenflora # 6 4,080.00 Jon Buchli & Jolene Dart Sunnyside @ Avon # 6 4,300.00 Gailrose Baldwin Avon Crossing 2101 1,860.00 Round 2 LLC 431 -B Metcalf Rd 7,200.00 Karen Ellen Hoiem Gosshawk Condo # 9 3,600.00 Joy & Trenton Hubbard 4142 Little Point 6,000.00 Ticor Title Ins Riverfront 13 -10 12,103.90 Ticor Title Ins Riverfront 14 -10 13,173.00 Ticor Title Ins Riverfront 15 -10 11,073.30 Ticor Title Ins Riverfront 16 -10 11,917.30 Ticor Title Ins Riverfront 17 -10 6,586.80 C.N. Dellinger III & Caroline Dellinger Riverfront 200 14,760.00 BC201 LLC Riverfront 201 14,220.00 Richard & Kay Greenstein Riverfront 204 14,340.00 Sandy Snow LLC Riverfront 301 14,520.00 Bryan Coffey Riverfront 331 4,400.00 Jack & Sylvie Forestell Riverfront 349 15,240.00 Siamark & Golbarg Parstabar Riverfront 414 5,655.00 Two Golden Tigers LLC Riverfront 547 16,500.00 BC Pad Inc Riverfront 549 16,320.00 Total April Revenue 39,376.00 170,809.30 Total YTD Revenue Total 2010 Budget 194,857.87 899,423.30 1,000, 000.00 1,091,798.00 The Gates at Beaver Creek Variance, Favorable (Unfavora $ (805,142.13) $ (192,374.70) $ - N CT m C O L N U E O O o � to C O O o Q N 0 M r W W 2 NY c 1.6 O O 4.4 Off' ��Q O '^ O Z Z p `O Q r � Q O 2 V- 20 O N V Q 0 0 0 0 0 0 0 0 0 0 0 0 co co rl- 0 0 0 0 0 0 0 0 0 Lq CA N 0 0 0 0 0 0 0 0 0 It �t LO OR M 00 (D 00 M M �- CA M (n 00 0) C) K> O N (n W CD CO N M M CO 00 C O N CO N M M M O n (q 0 CA N M O M V' (n 'IT M 00 f O O N CA M (D LO CM zT CD c,I (n CA 00 O v cq O N O M �- 00 W N NT M C 00 CD CD M M 1- M 00 N N O O CO pl� O O O N M Cfl Cfl G N (n -It CO O N O N (n M C t` N N O M M N cc rl U n Cl) r- N co O Cl) M O U r- 00 00 N — M M N N N N 0 K> LO N O M m O M 0 P- Vim' W (n Cl rl c O C Cl! 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M M M co n O � fD O M V O m O W n M � O V w w V I-- � m 1 (O m O I-- O M N M M M M N M Il- Cr7 M O W m M O N V O O O CO O I� N O CO CD m O M M O N m O N M CO A O O V V N V N m m O L � N N M 00 N � CD co m O M V N N O M M M M N V I- O V m CD V O O O ;T 'IT O N N M M co co co Cl) r to 0 r N r m co m CD O V fD Cr7 V O m co O O CO O O N O m O m N O m N N co O O U> r CD CID r m m m a m m fD fD V to N O m cu Z' N iq E C O C m CL t. � > U LL Q m 13 Q (n 0 Z 0 O i t � O N m O 5 O N Z L R pp O ` O N O w N C O (D V m n O °o U x N U) LD A fD O O N O O O N O O O O O O O ' O O O O O O O O O O O O O O O O O O O O O r- W O V M N STONE CREEK CHARTER GO BOLDLY Town of Avon Update May 2010 Overview • Executive Summary • Headmaster 2010 -2011 - John Brendza • April 30, 2010 Balance Sheet • May 3, 2010 Financial Statements Actual Vs. Budget • Old Vendors • 2006 — 2007 Enrollment (K — 6th) = 168 • 2007 — 2008 Enrollment (K — 7th) = 213 • 2008 — 2009 Enrollment (K — 81h) = 191 • 2009 — 2010 Enrollment (K — 81h) = 203 • 2010 — 2011 Est. Enrollment (K — 81h) = 210 • 2011 — 2012 Est. Enrollment (K — 81h) = 220 • 2012 — 2013 Est. Enrollment (K — 81h) = 233 Future Location Options • We have no viable ones at this time. Tabs: 1. Executive Summary 2. April 30, 2010 Balance Sheet 3. May 3, 2010 Financial Statements Actual Vs. Budget Mailing Address Physical Address 1 PO BOX 5670 (970) 748 -4535 0375 Yoder Avenue Avon, CO 81620 (970) 748 -4175 - fax Avon, CO 81620 www.stonecreekschool.org I. EXECUTIVE SUMMARY Stone Creek Charter School ( "SCCS" or "School ") is a public charter school of choice, offering a revolutionary learning experience to the children of Eagle County from kindergarten through middle school (K — 8). The curriculum is based on "Core Knowledge" which is a rigorous and challenging program. SCCS was founded in 2006 by a group of Eagle County parents led by Bill Hammer. SCCS is located at 375 Yoder Ave., Avon, CO 81620. The mailing address is PO Box 5670, Avon, CO 81620. Phone 970.748.4535; www.StoneCreekSchool.org. SCCS initially had a very rough start. The main individual behind getting SCCS off the ground was Bill Hammer ( "Hammer "). Hammer had no prior experience in opening a school or the know how in establishing financial controls. It was discovered early in the first year that Hammer had committed fraud by using School funds for his personal benefit. Hammer pleaded guilty to criminal charges. The damage done to SCCS was over $200,000 owed to various vendors in Eagle County with no funds to pay them. In addition to the payables, the enrollment levels were considerably lower than projected. Hammer had hired staff for the higher enrollment levels that did not materialize when SCCS first opened. The Board of Directors ( "BOD ") at the time also failed to see the financial consequences of over staffing compared to the enrollment numbers (which drives revenue) in the first year of SCCS. It was not until the second year that the BOD came to the realization that staff needed to be cut and classes consolidated by grade. SCCS third year brought not only financial challenges but leadership challenges as well. The first 2 years the School's Principal was a seasoned veteran who had originally come on board for only two years. Unfortunately, she seemed more out the door than fully vested in the success of SCCS. The original BOD had put in a non - experienced heir to take over after the original principal was to leave. This non - experienced leader was way over her head when she took over. The BOD attempted to provide her with the tools and skills required, but it was too much for her and she resigned after her first school year. The financial challenges were addressed significantly by the renegotiations of the Wells Fargo debt payment. Wells Fargo amended the payment by reducing the payment from $24,000 per month to $10,000 per month, with a participation in Free Cash Flow of SCCS. Also in the second and third years of the school a Federal Start Up Grant was critical to the survival of SCCS. SCCS fourth year is by far the best year of the School, thus far. Financially the School has operated in the black the entire year. It also, has retired all of the outstanding payables from the first year vendors except for one, whom the School has an agreement to fully pay this vendor back over the next four years. This re- payment schedule should not be a burden on the school so long as the positive progress continues. Leadership has also been addressed by hiring as the Headmaster John Brendza, who was the past Superintendent of Eagle County School District. Stone Creek School Balance Sheet Accrual Basis As of April 30, 2010 ASSETS Current Assets Checking /Savings 1001 • Operating Account 1151 - Wells Fargo Savings Account Total Checking /Savings Accounts Receivable 1110 • Accounts receivable (990 line 47a) Total Accounts Receivable Other Current Assets 1460 • Deposits (990 line 53) 1461 • Lease Deposit Total 1460 • Deposits (990 line 53) Total Other Current Assets Total Current Assets Fixed Assets 1640 • Furniture, fixtures, & equip (990 line 57a) 1641 • A/D FF &E 1700 • Building 1701 • Nortex Modular 1702 • Construction Costs 1725 • Accum depr - building (990 line 57b) Total 1700 • Building Total Fixed Assets Other Assets 1950 • Fund held in trust by others (990 line 58) 1952 • Fiscal Emergency Reserve (deducted and held at CSI) Total 1950 - Fund held in trust by others (990 line 58) Total Other Assets TOTAL ASSETS LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2010 • Accounts payable (990 line 60) Total Accounts Payable Other Current Liabilities 2011 • Accrued Interest 2100 • Payroll Liabilities 2101 • Employee PERA Total 2100 - Payroll Liabilities 2130 • Accrued payroll taxes (990 line 60) 2131 • Employer PERA Total 2130 - Accrued payroll taxes (990 line 60) 2448 - 201012011 School Year 2448.3 • 10/11 Operation Donations 2448.2 - 10/11 Book/Material Fees 2448.1 • 10/11 Kinder Deposits Total 2448 • 2010/2011 School Year PRELIMINARY DRAFT SUBJECT To CRINGE Apr 30, 10 60,626.65 51,704.05 112,330.70 11,650.00 11, 650.00 10,587.70 10,587.70 10, 587.70 134,568.40 138,631.02 -31,228.56 1,298,594.45 254,912.16 - 136,511.67 1,416, 994.94 1, 524, 397.40 25,526.99 25,526.99 25,526.99 1,684,492.79 76,644.82 76,644.82 3,619.50 2,439.06 2,439.06 4,916.85 4,916.85 1,000.00 46,440.00 8,400.00 55,840.00 Page 1 Stone Creek School Balance Sheet Accrual Basis As of April 30, 2010 2449 • 2011/2012 School Year 2449.1 • 11112 Kinder Deposits Total 2449 . 2011/2012 School Year 2451 • 8th Grade Trip Fundraiser (Hoilday Fair Fundraiser by 6... 2453 • 2nd Grade Fundraiser (Money raised - to be donated) Total Other Current Liabilities Total Current Liabilities Long Term Liabilities 1300 • Wells Fargo (Loan) Total Long Term Liabilities Total Liabilities Equity 3010 - Unrestrict (retained earnings) (990 line 21 & 67) 3100 • Temporarily restrict net asset (header) 3110 • Use restricted net assets (990 line 21 & 68) Total 3100 • Temporarily restrict net asset (header) 3130 • Reserved for TABOR Net Income Total Equity TOTAL LIABILITIES & EQUITY Apr 30, 10 1,500.00 1,500.00 9,484.93 888.04 78,688.38 155,333.20 958,260.53 958,260.53 1,113,593.73 298,400.48 4,103.00 4,103.00 51,689.00 216,706.58 570,899.06 1,684,492.79 Page 2 12:11 PM 05/03/10 Accrual Basis Stone Creek School Profit & Loss Budget vs. Actual July 1, 2009 through May 3, 2010 Ordinary Income /Expense Income 1101 - Miscellaneous (Opening Deposit) 1121D - Art - Original Works 11017 - Aquarium Field Trip 1101U • Aquarium Costs 1101T - Aquarium Field Trip - Other Total 1101T • Aquarium Field Trip t101AA • Golf Tournament Fundraiser 1101BB • Costs 1101AA • Golf Tournament Fundralser - Other Total 1 101A - Golf Tournament Fundraiser 1101C • Holiday Fair 1101D • Costs Total 1101C - Holiday Fair 1101CC • Western Round Up 1101E • Ski Program 1101F • Costs 1101E • Ski Program -Other Total 1101E. Ski Program 1101G - Kentucky Derby 1101H • Costs 1101G • Kentucky Derby - Other Total 1101G - Kentucky Derby 1120C • Kindergarten Field Trip 1120D • Costs 1120C • Kindergarten Field Trip - Other Total 1120C - Kindergarten Field Trip 1101KK • 1st Grade Field Trip 1101 LL • Costs 1101 KK • 1st Grade Field Trip -Other Total 1101 KK • 1st Grade Field Trip 1120A • 3rd Grade Field Trip 1120B • Costs 1120A - 3rd Grade Field Trip - Other Total t120A • 3rd Grade Field Trip 1120 •4th Grade Field Trip 1121 • Costs 1120 •4th Grade Field Trip - Other Total 1120 • 4th Grade Field Trip 1101 K • 5th Grade Field Trip 11011. - Costs 1101K • 5th Grade Field Trip - Other Total 1101K • 5th Grade Field Trip 1120G • 6th Grade Field Trip 1120H - Costs 112OG • 6th Grade Field Trip - Other Total 1120G • 6th Grade Field Trip 1120E • 7th Grade Field Trip 1101 MM - Upper School Field Trip 1101 NN • Costs 1101 MM • Upper School Field Trip - Other Total 11 01M • Upper School Field Trip 1121 E - Student Council Account 1101 EE - Uniform Fundraiser 1121C - Yearbooks 1101 - Miscellaneous (Opening Deposit) -Other Total 1101 • Miscellaneous (Opening Deposit) 1102 - Kindergarten Tuition (Monthly tuition payments) 1104 - State of Colorado (PPR Revenue) 1105 , Per Pupil Revenue 1105A - S /STEQ 3110 11058 • S /STEQ CDE Admin Fee 3110 1105A - S /STEQ 3110 - Other Total 1105A • S /STEQ 3110 1105F • CSI Capital Construction Assist (11% - withholding for CSI Capital Construction Assistance F 1105C • CDE Overpayment/Underpayment Total 1105 • Per Pupil Revenue 1106 • Capital Const - Project #3113 1108 • GiftlTalent - Project #3150 1111 • IDEA Part B - Project #4027 (Special Education: Grants to States IDEA Part B ) 1112 • S /ELPA 3140 1113 - S /ECEA 3130 (State Special Education (ECEA)) Total 1104 • State of Colorado (PPR Revenue) 4 • Contributed support (header) 4011 • Vendor Matching Funds Donations 4070.1 • Operations Donations 08109 4070.2 • Operations Donations 09110 4075.2 • Materials Fees 09/10 4090 • Capital Improvements 4010 • Indiv/business contribution (990 line 1a) 4110 • Donated services (990 line 82 & Pt. IV-A) Total • Contributed support (header) Total Income Gross Profit Jul 1,'09 -May 3, 10 PRELIMINARY DRAFT SUBJECT TO CHANGE Budget 459.19 0.00 0.00 - 147.00 0.00 147.00 0.00 0.00 - 1,814.65 - 7,835.63 8,150.00 22,000.00 6,335.35 14,164.37 0.00 -42.54 0.00 -42.54 0.00 5,440.00 - 7,474.00 . 6,483.00 7,406.00 6,519.00 -68.00 36.00 - 819.19 - 2,373.76 0.00 7,635.48 - 819.19 5,261.72 0.00 -7.25 0.00 7.26 0.00 0.00 . 129.60 - 270.00 273.00 27t.00 143.40 1.00 - 517.80 - 225.00 525.40 197.00 7.60 -28.00 - 270.00 0.00 770.00 25.00 500.00 25.00 0.00 - 200.21 0.00 1,843.00 0.00 1,642.79 - 610.86 0.00 1,121.48 0,00 510.62 0.00 678.00 0.00 - 1,610.00 - 2,555.13 1,645.00 3,357.71 35.00 802.58 265.20 0.00 32.00 125.79 453.72 269.84 -3.00 0.00 8,529.89 27,698.55 85,125.00 75,048.39 . 33,564.49 45,61 t.37 1,144,703.92 1,147,336.20 1,111,139.43 1,192,947.57 - 11,684.64 - 11,402.59 - 340.09 0.00 1,099,114.70 1,181,544.98 14,043.64 1,886.03 813.26 0.00 0.00 13,000.00 2,993.45 0.00 7,800.00 0.00 1,124,765.05 1,t96,431.01 51,495.52 0.00 400.00 0.00 80,676.28 85,317.74 56,403.00 54,8t0.00 863.38 1.750.00 1.803.30 2,836.39 33,136.2 t 0.00 224,778.69 144,714.13 1,443,198.63 1,443,892.08 1,443,198.63 1,443,892.08 Page 1 12:11 PM 05/03/10 Accrual Basis Stone Creek School Profit & Loss Budget vs. Actual July 1, 2009 through May 3, 2010 Expense 0200 • Health & Dental Benefits 0201A • Health/Dontal Benefits 0201 B • Teacher Reimbursements 0201C • PTO Reimbursements 0201 D • COBRA Payments Total 0200 • Heath & Dental Benefits 0299 • Freight/Shipping 0300 • Willies 0301 • Trash Removal 0305 • Water /Sewer 0307 • Electricity 0409 - Telephone Total 0300 • Militias 0302 • Repair and Maintenance Services 0302A • Janitorial 0302B • Repairs and Maintenance 0302C • Computer 0302 • Repair and Maintenance Services - Other Total 0302 • Repair and Maintenance Services 0303 - Lease /Land Building 0304 Construction Services 0308 . Alarm Monitoring 0401 - Printing 0402 - Professional Development 0403 - Special Education Services 0405 - Advertising 0406 • Legal Services 0407 • Consulting Services 0408 • Audit Accounting Services 0410 • Liabilily Insurance 0411 • Bookkeeping/Accounting Services 0500 - Supplies 0508 • Supplies -Art 0501 - Supplies - Classroom 0506 - Supplies - Cleaning 0502 - Supplies - Office 0404 - Postage 0502A • Copier Costs 0602 • Supplies -Office -Other Total 0502 - Supplies - Office 0503 • Supplies - Maintenance 0509 • Supplies -Music 0604 • Supplies - Nursing 0505 - Supplies - Playground Total 0500 • Supplies 0601 • Furniture- Classroom 0602 • Technology Equipment 0602A • Website Costs 06028 -Power School 0602 • Technology Equipment - Other Total 0602 • Technology Equipment 0699 • Rental Expense (Rental space for graduations) 0101 • Dues and Fees 0702 • Lodging/Trawl Expenses 0706 • Bank Charges 0705A • Merchant Fees 0706 • Bank Charges - Other Total 0705 • Bank Charges 0801 • Textbooks 0802 • Specials 0803 • Classroom Equipment 0804 . Assessment Materials 0900 • Misc Exp (Offsets to Operating) 0901 • Building Loan 0902 • Tabor Reserves 0903 - Depreciation Expense 0904 • Bad Debt (Uncollectible Kinder tuition) 7200 • Salaries & related expenses (header) 7220b • Administration Salaries (Operations manager & office manager) 7266 - Rumble Additional Pay (Account created to book J.Rumble payroll deductions for salary overpa 7220a - Principal Salaries 7220 • Salaries & wages - other (990 line 26) 7220.1 • Lunch Program Salary (Lunch program salaries reimbursed by PTO) 7220 • Salaries & wages - other (990 line 26) - Other Total 7220 • Salaries & wages - other (990 line 26) 7221 • Principal Benefits 7230. PERA contributions (990 line 27) 7230.1 - PERA bonus contributions 7230.2 - Lunch Program PERA (Lunch program PERA reimbursed by PTO) 7230 - PERA contributions (990 line 27) -Other Total 7230 • PERA contributions (990 line 27) 7240 • Workers Compensation Insurance (990 line 28) 7250 • Payroll taxes (990 line 29) 7260 • Salaries & Wgs -Wellness banal 7261•Bonus Total 7200 • Salaries & related expenses (header) 7201 - Contract Labor 8000 • Miscellaneous Disbursements Total Expense Net Ordinary Income Other Income/Expense Other Income 6974 - Contractors Interest (w /o interest charged on outstanding debt to vendors to income) Jul 1, •09 - May 3, 10 PRELIMINARY DRAFT SUBJECT TO CHANCE Budget 124,078.38 73,655.97 - 14,878.84 - 8,650.58 - 2,675.82 - 132.90 - 5,212.19 - 1,779.00 425.95 12,183.12 2,564.71 101,311.53 70.00 1,785.48 3,136.25 18,051.84 3,101.90 26. 075.47 7,239,30 4,104.18 7236.14 1,002.68 19,582.28 21200.00 1,008.00 30.00 0.00 5,696.97 10,045.20 6,693.26 1,710.00 1,285.00 13,487.50 13,235.42 45,961.07 - 324.44 4,421.15 2,426.12 15,163.78 241.06 0.00 0.00 510.10 22,437.77 - 268.55 3,403.30 0.00 4,257.23 7,660.53 0.00 1,442.15 1,017.64 3,543.54 465,47 3,183.26 2,104.13 15,200.59 2,948.26 63,093.49 0.00 23,436.24 10,389.58 5,187.50 501.25 0.00 16,078.33 2t,200.00 2,741.94 295,00 1,275.00 96.77 2,703.39 2,200.00 1,000.00 6,008.35 9,500.00 11,066.06 12,620.97 3,000.00 10,115.32 1,514.52 1,564.52 8,088.73 8,077.42 17,730.67 1,000.00 5,000.00 504.84 5,000.00 4,952.88 3,943.55 6,000.00 2,571.46 0.00 43,865.35 0.00 14,896.43 2,080.65 1,500.00 0.00 4,009.01 2,571.46 5,791.25 25,002.33 1,868.34 0.00 466.33 483.87 - 1,879.41 2,296.77 3,022.85 0.00 0.00 100,967.74 0.00 290.32 38,666.70 39,040.89 3,707.19 0.00 50,039.73 0.00 512.00 0.00 87,238.93 0.00 - 7,676.25 - 7,436.25 559,560.54 729,915.71 551,884.29 722,479.46 0.00 483.87 453.15 411.28 - 994.07 - 921.4t 90,180.47 98.045.90 89,639.55 97,535.77 2,449.00 4,400.19 12,874.66 21,470.32 7,200.00 7,600.00 8,800.00 0.00 810,638.16 20,470.04 1,500.00 1,187,94t.70 853,969.61 4,548.39 0.00 1,264,829.35 255,256.93 179,062.73 38,483.71 0.00 Page 2 12:11 PM Stone Creek School PRELIMINARY DRAFT 05/03/10 Profit & Loss Budget vs. Actual SUBJECT T Accrual Basis July 1, 2009 through May 3, 2010 CHANGE 6950 • Interest Income 6953 • Wells Fargo Savings Total 6950 • Interest income 6971 • Workers Comp Dividend 6972 • Holy Cross Equity Allocation 6973 • Xerox contract buyout Total Other Income Other Expense 9500 • Interest Expense 9501 • Wells Fargo 9506 •PERA 9515 • Contractors 9517 • Penalties Total 9500 - Interest Expense 9600 - Loan Fee 9601 • Wells Fargo Total 9600 • Loan Fee Total Other Expense Net Other Income Net Income Jul 1; '09 - May 3, 10 102.49 102.49 0.00 0.00 5,604.00 44,190.20 Budget 0.00 0.00 197.71 43.87 0,00 241.58 71,831.30 77,406.95 79.63 0.00 11,983.69 0.00 13.32 0.00 83,907.94 77,406.95 0.00 3.295.00 0.00 3.295.00 83,907.94 80,701.95 - 39,717.74 - 80.460.37 215,S39.19 98,602.36 Page 3