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TC Minutes 08-11-1998• i MINUTES OF THE REGULAR MEETING OF THE TOWN COUNCIL HELD AUGUST 11, 1998 - 5:30 P.M. A regular meeting of the Town of Avon, Colorado was held in the Municipal Building, 400 Benchmark Road, Avon, Colorado, in the Council Chambers. The meeting was called to order by Mayor Jack Fawcett at 8:16 PM. A roll call was taken with Councilors Jim Benson, Richard Carnes, Bob McIlveen, Buz Reynolds, Sr., Buz Reynolds, Jr., and Mayor Protem Judy Yoder Present. Also present were Town Manager Bill Efting, Town Attorney John Dunn, Assistant Town Manager Larry Brooks, Town Clerk Kris Nash, Special Events Coordinator Dana Mauer, Public Relations Specialist Kristin Kenney-Williams, Recreation Director Meryl Jacobs, Community Development Director Mike Matzko, Fire Chief Charles Moore, Finance Officer Scott Wright, Police Chief Gary Thomas, Police Sergeant Greg Williams, Town Engineer Norm Wood, Town Planner George Harrison as well as members of the press and public. Citizen Input: Bob Summerfest Update: Special Events Coordinator Dana Mauer gave an update on the Bob Summerfest. Citizen Input: Appeal of Real Estate Transfer Tax Exemption Denial Mr. Jeff Hassell approached the Council. Mr. Hassell purchased a unit at Sunridge in November. His realtor told him that if he purchased in Avon and planned to live there for a year he would qualify for a tax break; he was told nothing further. Mr. Hassell closed on the unit with Stewart Title. Stewart Title withheld the appropriate amount as if he had the exemption. Mr. Hassell thought that was final. Approximately 3-4 months after the fact, he received a letter from Julie Kessenich stating he had not filled out the exemption request. Mr. Hassell went to the Town and filled out the forms and then thought that was final. Two months later, he received another letter stating that the exemption was denied because it was filed after the fact. Mr. Hassell is here tonight to hopefully get his denial overturned because he was not told he had to file beforehand. Mr. Hassell presented two letters to the Council, one from his realtor and one from the attorney for Stewart Title (see attached). Councilor Reynolds, Jr. stated that Stewart Title has full knowledge of the Transfer Tax procedures. Mayor Protem Yoder asked if both his realtor and Stewart Title have refused to pay. Mr. Hassell stated that no one has talked about paying. Councilor Benson confirmed that Mr. Hassell has not paid the $1,600 Real Estate Transfer Tax. Mr. Hassell stated that is correct, he has only paid the part that was required as if he had received the exemption. Mayor Fawcett asked Town Attorney Dunn if the statute was amended in terms of defining the time for requesting exemption. Town Attorney Dunn stated the ordinance reads the application must be filed with the Town Manager prior to payment of the tax. Finance Director Scott Wright approached the Council. He stated the amendment to the ordinance was made in order that the title companies could go through the closing process and escrow funds if the exemption was still in process but not yet approved so the purchaser could close. The ordinance does not provide that we can approve the exemption after the tax has been paid. Our own recourse was for Mr. Hassell to come to Council for an appeal. • • Councilor Carnes asked who has the money. Finance Director Wright stated the Town collected the appropriate amount over and above the exemption. We did not collect any monies that we would not have normally collected because we would have normally granted the exemption. The application for the exemption would have been approved other than the reason that it came after closing. Town Attorney Dunn stated the ordinance requires that the exemption be obtained before the tax is paid. The reason for that language is from time to time the closings are in escrow and the Title Company holds the money until the application for exemption can be filed. Then the exemption can be granted even after the deed is recorded and the reduced amount paid. As stated in the letter from Stewart Title's attorney, it was the understanding of Stewart Title that the Buyer would apply to the Town of Avon. As Attorney Dunn interprets the letter, it says that Stewart Title assumed the Buyer would apply for the partial exemption from the transfer tax. That did not happen and Stewart Title withheld less than the full amount of the tax, they remitted the lesser amount and it was accepted by the Town and deposited. The transaction is over and there is a balance owing on the transfer tax. Councilor Carnes asked wasn't the ordinance amended so that this would not happen. A letter was sent to the title companies stating that they had to tell the Buyer. The burden is on the title companies. Town Attorney Dunn stated unfortunately, Mr. Hassell has a lien against his property for the $1,600 by the Town of Avon. Mayor Fawcett asked Town Attorney Dunn what his interpretation of the situation is. Town Attorney Dunn stated that no exemption was applied for, the tax was paid and received by the Town but there is a balance of $1,600 owing. His advice to the Council is to deny the appeal and to file the lien. It is the only way to enforce the ordinance. Councilor Carnes asked based on Counsel's advice, how can the Council assist Mr. Hassell collecting from Stewart Title. Town Attorney Dunn stated that Council's job is to enforce the ordinance. There is no legal recourse Council has to assist him. Councilor Reynolds, Sr. motioned to deny the appeal. Mayor Protem Yoder seconded the motion. The motion carried with Councilors Reynolds, Jr. and Benson against the motion. Ordinances: Second Reading of Ordinance No. 98-11, Series of 1998, AN ORDINANCE AMENDING CHAPTER 10.04 OF THE MUNICIPAL CODE OF THE TOWN OF AVON RELATING TO TRAFFIC VIOLATIONS COMMITTED IN SCHOOL ZONES AND PROVIDING PENALTIES FOR THE VIOLATION HEREOF Mayor Fawcett stated this is a public hearing and asked for any comments. Mayor Fawcett asked for action. Mayor Protem Yoder motioned to approve Ordinance No. 98-11 on second reading. Councilor Benson seconded the motion. Mayor Fawcett asked for further comment. Councilor Carnes asked if the request to add passing school buses with a signal on was included. Town Attorney Dunn stated it was added. Mayor Fawcett asked for a roll call. The motion carried unanimously. 2 0 0 Ordinances: First Reading of Ordinance No. 98-12, Series of 1998, AN ORDINANCE ADDING CHAPTER 3.30 OF THE MUNICIPAL CODE OF THE TOWN OF AVON RELATING TO THE ADMINISTRATION AND DISPOSAL OF UNCLAIMED PROPERTY WHICH IS IN THE POSSESSION OF OR UNDER THE CONTROL OF THE TOWN Finance Officer Wright addressed the Council. The ordinance is intended to legislate through the Town the administration and disposal of unclaimed property which includes unclaimed/outstanding checks older than one year where the Town may void the amount of those checks and return the amount to the general fund (checks that never clear the bank). Currently, the Town participates in the Great Colorado Payback where we have to keep track of the outstanding checks and then remit those after a certain amount of time to the State of Colorado so they get the money. Administratively it is a big burden on the Town as well as financially. Last year we paid the state nearly $3,000. Because we are a home rule municipality we are able to legislate that process ourselves. Town Attorney Dunn stated the ordinance is similar to those adopted by other home rule municipalities in the state. Councilor Benson motioned to approve Ordinance No. 98-12 on first reading. Councilor Reynolds, Sr. seconded the motion. Mayor Fawcett asked for a roll call. The motion carried unanimously. Ordinances: First Reading of Ordinance No. 98-13, Series of 1998, AN ORDINANCE AMENDING CHAPTER 10 OF THE MUNCIPAL CODE OF THE TOWN OF AVON TO PROVIDE FOR THE REGULATION OF COMMERCIAL VEHICLES WITHIN THE TOWN OF AVON; AND PROVIDING PENALTIES FOR THE VIOLATION HEREOF Town Attorney Dunn announced, as Council is aware, the Town and the applicants have not resolved the issue of the timing for construction of the I-70 interchange. Due to that fact and the current state of negotiations, it is his understanding that the Council wishes to table first reading of the ordinances dealing with annexation. Ordinance 98-13 does not directly deal with annexation but it is triggered by it. He has been asked that Council include the ordinance in tabling so it can be discussed further. Attorney Dunn indicated to Mr. Post that it would be acceptable. Town Attorney Dunn asks that Ordinance 98-13, 98-14, 98-15, 98-16, and 98-17 be tabled. Mayor Protem Yoder motioned to table first reading of Ordinances 98-13, 98-14, 98-15, 98-16, and 98-17 until the August 25, 1998 meeting. Councilor Benson seconded the motion. Mayor Fawcett asked for a roll call. The motioned carried unanimously. Resolutions: Resolution No. 98-47, Series of 1998, A RESOLUTION TO AMEND THE 1998 TOWN OF AVON BUDGET Finance Director Wright stated the Resolution is to amend the 1998 Capital Projects Fund budget for the down payment on the purchase of an 800 MHz radio system for the Town of Avon police and fire departments in the amount of $54,830. The amount represents a 3 20% down payment as required by the vendor. In addition, there will be a final payment of $219,320.50 that will be appropriated in the 1999 budget for the remaining 80% of the contract. Councilor Reynolds, Sr. motioned to approve Resolution No. 9847, Series of 1998. The motion was seconded by Councilor McIlveen. The motion carried unanimously. Resolutions: Resolution No. 98-48, Series of 1998, A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF AVON SETTING FORTH FINDINGS OF FACT AND CONCLUSIONS REGARDING ANNEXATION OF THE VILLAGE AT AVON Town Attorney Dunn asked Council to take up both Resolution No. 98-48 and Resolution No. 98-49 which are identical but there are two Resolutions by virtue of the fact that the annekation under consideration in reality is two annexations. The property must be divided into two parcels to comply with contiguity requirements. There was discussion of tabling these resolutions as well as continuing public hearings on these resolutions. A public hearing will be held because notice has been published and posted. The statute provides that the hearing on proposed annexation may not be continued unless the hearing has already lasted for one hour. In view of that, we are suggesting that the Council take action now on the resolutions. As indicated earlier, the purpose of the hearing is simply to determine the eligibility of the property for annexation to the Town, and not to consider the annexation agreement or the zoning of the property. Those will be considered in connection with the ordinances that have now been tabled. Town Attorney Dunn suggested presentation be made to the Council which supports eligibility of the property to annexation. The matter should then be open for public comment as to whether or not the property is eligible for annexation. Council can then consider the two resolutions. Town Engineer Norm Wood addressed the Council. Mr. Wood confirmed he has reviewed the maps relating to the two resolutions. The first annexation map does conform with the 1/6 contiguous boundary of the town of Avon. Subsequently, the second map then conforms with the 1/6 contiguous boundary. ' Town Attorney Dunn stated the next fact, which must be established is the existence of a community interest between the area proposed to be annexed; and the annexing municipality. Mr. Peter Jamar, representing the applicant, addressed the Council. Mr. Jamar stated they believe the issues relative to the annexation eligibility do exist and that there is a community of interest. The area is expected to be urbanized in the near future and the land is capable of being integrated into the town. The best evidence of that is the land calls for development within the. Town of Avon's comprehensive master plan. Town Attorney-Dunn next testifiedtthat none of the limitations on annexation are applicable hereand m'ore' specifically, no land held in identical ownership shall be divided into separate parts or parcels without the written consent of the landowners thereof. _ No land comprising of 20 acres or more, which together with the buildings and improvements situated thereon; has a valuation for assessment in excess of $200,000 for ad valorem tax purposes for the year next preceding the annexation is included in the annexation without the written.consent of the landowners of that property. No petition for annexation pursuant to election is pending nor is any; application pending to annex part or all 'of the territory involved 'to another municipality. This annexation will not result in an attachment of any area from any school district. This annexation will not have the effect of extending the municipal boundary more than three miles in any direction at any point. Also, Town Attorney Dunn advises the, Council that no annexation election is required, the petition is signed by the owners of 100% of the area proposed to be annexed and there are no conditions to the annexation in addition to those contemplated by the proponent at the time the annexation petition was filed. Those facts being true, the matter is now before Council for consideration of Resolutions 98-48 and 4 • • 98-49. Based upon the testimony, Town Attorney Dunn would advise the Council that the area proposed to be annexed does comply and there has been adequate proof of the compliance presented to the Council; therefore, Council may adopt the resolutions. Attorney Dunn suggests based on the evidence submitted in support of both resolutions, first adopt Resolution No. 98-48 then consider Resolution No. 98-49. Mayor Fawcett asked for further comments. Mr. Lynn Morgan, General Manger of Eagle County Ambulance District approached the Council and passed out a proposal from the District. Mr. Morgan stated there is currently two emergency medical response stations in the valley, one in Vail and the other in Edwards. Long range planning shows with the annexation and development in Avon they will require a third station to provide the services people are accustomed to now. Mr. Morgan is proposing that space be allocated in the vicinity of the proposed I-70 on ramp at the eastern end of the annexation property for a proposed third station. Mayor Fawcett asked if he has discussed his proposal with the property owner. Mr. Morgan has not. He has talked with the Planning & Zoning Commission and now has come to the Council for guidance as where to take this next. Mayor Fawcett asked how much land he is looking for. Mr. Morgan estimates 1 % to 2 acres. Town Manager Efting clarified that Mr. Morgan is looking for land and asked if they had the money to build the building. Mr. Morgan stated yes, then added they would like to propose a financial partnership with the developer or the town. Councilor Benson asked how the district is funded. Mr. Morgan stated with a mill levy and billing for patient transport. Their mill levy is 1.0 for their service area. Mayor Fawcett urged Mr. Morgan to talk to the landowner. Mayor Protem Yoder motioned to approve Resolution No. 98-48, Series of 1998. Councilor Reynolds, Sr. seconded the motion. The motion carried unanimously. Resolutions: Resolution No. 98-49, Series of 1998, A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF AVON SETTING FORTH FINDINGS OF FACT AND CONCLUSIONS REGARDING ANNEXATION OF THE VILLAGE AT AVON Mayor Fawcett stated comments made for Resolution No. 98-48 relate to Resolution No. 98-49 as well, but asked for any fin-ther comments. Councilor Reynolds, Sr. motioned to approve Resolution No. 98-49, Series of 1998. Councilor Benson seconded the motion. The motion carried unanimously. Resolutions: Resolution No. 98-50, Series of 1998, A RESOLUTION OF THE TOWN OF AVON RELATING TO THE APPROVAL OF THE SERVICE PLAN FOR TRAER CREEK METROPOLITAN DISTRICT Resolution No. 98-51, Series of 1998, A RESOLUTION OF THE TOWN OF AVON RELATING TO THE APPROVAL OF THE SERVICE PLAN FOR THE VILLAGE METROPOLITAN DISTRICT Mayor Fawcett asked for any action. Town Attorney Dunn requested that Council continue Resolution No. 98-50 and 98-51 and the public hearings on the Resolutions to the regular council meeting at 5:30 PM on August 25, 1998. 5 9 • Mayor Protem Yoder motioned to continue Resolution No. 98-50 and Resolution No. 98- 51 and the public hearings to the August 25, 1998 meeting. Councilor Benson seconded the motion,- The motion carried unanimously. Town Attorney Dunn stated with that action made, those present tonight for the public hearing should be advised to return at that date and time. Consent Agenda: a.) Approval of the July 28, 1998, Council Meeting Minutes b.) Coordinated Election Intergovernmental Agreement with Eagle County c.) Contract with Far Out Productions F/S/O WAR d.) Contract with Bob O'Lympics e.) Contract with Vail.Valley Magazine f) Contract with Casavant Consulting Group for Rec Department Staff Training g.) Contract with Holy Cross Electric for Gas Transportation Service h.) Change Order No. 6 - Avon Road Roundabouts Streetscape i.) Change-Order No. 7 - Avon Road Roundabouts Streetscape Roundabout No. 3 - Overhead Lighting j.) Contract with Motorola for 800 MHz Radios k.) Financial Matters Mayor Protem Yoder motioned to approve the Consent Agenda with the following provisions: Item C - delete paragraph 34 pertaining to workers compensation and, paragraph 41 replace State of California with State of Colorado regarding governing of the agreement. Remove Item I. Councilor Reynolds, Jr. seconded the motion. The motion carried unanimously. There being no fiuther business to come before the Council, Mayor Fawcett called for a motion to adjourn. Councilor Benson motioned to.adjourn. The motion was seconded by Mayor Protem Yoder. The motion, carried unanimously: The meeting was adjourned at 9:25_PM. RESPECTFULLY SUBMITTED Kris Nash Town Clerk 6 • FREDERICK S. OTTO WENDELL B. PORTERFIELD, JR. WILLIAM J. POST MARY JOAN BERENATO • OTTO, P01aE1?FZM & POST ra c ATTOR,YEYS AT L w POST OFFICE BOX 3149 PAIL, COLOPUDO 81O 31#9 August 11, 1998 To whom it may concern: EMERALD ACRES BLDG. III (970) 949.5380 - FAX LINE (970) 84" 135 We represent Stewart Title of Eagle County, Inc. ("Stewart Title") which on November 21, 1997, closed the transaction in which Jeff E: Hassell purchased Unit 303, Building Q, Sundridge at Avon Phase II ("the Unit") from Genova Bouvet and others. The contract between Buyer and Seller provided that the transfer tax of 2% would be paid "equally by Buyer and Seller for amount due for purchase price excess of $80,000.00." Because the purchase price of the Unit was $115,000.00, Stewart Title collected $350.00 from the Buyer and $350.00 from the Seller. The balance of $1,600.00 which would be due absent a partial exemption from the transfer taxwas not collected. It was the understanding of Stewart Title that the Buyer would apply to the Town of Avon for any partial exemption from the transfer tax. Stewart Title did not advise the Buyer to apply for the exemption but Stewart Title does not believe that giving such advice is one of its obligations. Stewart Title did not apply for exemption on behalf of the Buyer because it has never submitted such a the application on behalf of any Buyer. It is entirely possible that Mr. Hassell did not know that he was to apply for the partial exemption before the closing. If any additional information regardin this closing'is needed, please contact me. 9 Ver truly our Wendell B. Porterfield, Jr. cc: Sandy Capell i Prudential Gore Range Properties, Inc. Sales - Rentals • Property Management 511 LionsHead Mall Vail, CC 81657 Bus. (9701476-2482 Tail-Free (600) 283-2480 Fax (970) 476-6499 Friday, August 07, 1998 To Whom If May Concern Jeff Hassell contacted me in October of 1997 to find a property to purchase. Jeff was looking for a property he could fix up and put some sweat equity into. Sunridge Condominiums in Avon were in Jeff's price range. We were able to find a unit in Sunridge Phase II, Q-303 that fit Jeff's budget and needed some work. The contract was written so as to take advantage of the Town of Avon's waiver of transfer tax on the first $80,000 of purchase price. Jeff and the Seller split the balance of the transfer tax. Somehow between the time of contract and closing, the paperwork for the waiver was overlooked. Typically, the Title Company requires a copy of the waiver at closing. The Title Company never asked for a copy of the waiver and we closed on the property on November 21, 1997. It was shortly after that Jeff received notice of noncompliance. Jeff went right to work and filed the necessary papers, but was turned down. Jeff is a hard-working person the likes of which we need more of in the valley. It has been Jeff s intention all along to comply with the transfer tax waiver and to live in the property he purchased. It would be a hardship on Jeff to come up with an additional $1600 at this time. I would ask that the Town of Avon be a little bit lenient in situations like this so that we might keep more people like Jeff around the valley longer. Thank you. Sincerely, THE PRUDENTIAL GE PROPERTIES, INC. Associate FXroker, CRS Q F.. C.".. I 0-.d. W Opsraud. AfL • 0 MINUTES OF THE REGULAR MEETING OF THE TOWN COUNCIL HELD AUGUST 25, 1998 - 5:30 PM A regular meeting of the Town of Avon, Colorado was held in the Municipal Building, 400 Benchmark Road, Avon, Colorado in the Council Chambers. The meeting was called to order by Mayor Jack Fawcett at 5:30 PM. A roll call was taken with Councilors Jim Benson, Richard Carnes, Bob McIlveen, Buz Reynolds, Sr., Buz Reynolds, Jr.,. and Mayor_ Protein Judy Yoder present. Also present were Town Manager Bill Efting, Town Attorney John Dunn, Assistant Town Manager Larry Brooks, Town Clerk Kris Nash, Public Works Superintendent Bob Reed, Police Chief Gary Thomas, Police Sergeant Greg Williams, Public Relations Specialist Kristin Kenney- Williams, Town Engineer Norm Wood, Fire Chief Charles Moore, Community Development Director Mike Matzko, Planner George Harrison, Finance Director Scott Wright, Planner Karen Griffith as well as members of the press and public. Citizen'Input: Mayor Fawcett presented a plaque of recognition to Police Chief Thomas who will retire from the police department on Monday, August 31, 1998. Mayor Fawcett read the plaque and thanked Chief Thomas for all:he has done for the department and his years-of service. Police Chief Thomas thanked everyone. He stated the last 14 years have been the best experience in his life and the, support he has been given has made the department a great success. He thinks the Town has the best staff, department heads, management as well as Council past and present that he has ever had the pleasure of working with. Citizen Input: Stop Signs and Speed Bumps in Wildridge. Ms. Sue Fontanese approached the Council. Ms. Fontanese is concerned for the safety of the children in the Wildridge area, particularly on Long Spur Road where she lives. There are 14 children on her block. Ms. Fontanese stated there are cars on her street going much faster than 25 miles an hour and she wants to know if they could get a speed bump or-something to help slow down the traffic. Mayor Fawcett asked if Ms. Fontanese has spoken with the public works department or Assistant Town Manager Larry Brooks. She thought she had about 2 years ago. Mayor Fawcett stated the. Council has addressed this issue a number of times. He requested the staff to look into this and discuss it with Ms. Fontanese. There are some problems with speed bumps and the snow plows ripping them up. Mayor Fawcett stated he understands her concerns and fears. Town Manager Efting stated that a Council person has requested we look at this as the budget sessions begin and look at solutions such as a traffic table. He stated they want to have neighborhood meetings in Wildridge to address this problem. Councilor Reynolds, Jr. stated another option, which was done in Singletree, is a cut in the road which is really obnoxious to the car if you drive over it fast. He stated it should be looked at. Assistant Town Manager Brooks stated they would go to the area and study it to see what would be the best solution and where any traffic tables would be best placed. • • Mayor Fawcett stated if it could be done, we will do it. Ms. Fontanese thanked the Council. Mr. Charlie Sherman, resident on Wildridge Road, stated he would like to see the same treatment on his road. Citizen Input: Appeal to Planning and Zoning Commission Decision - Lot 46, Block 3 Wildridge Subdivision (Michael Schneider) Mr. Michael Schneider was not present. Mr. Michael Gallagher stated he is familiar with the site and revegitation and could answer any questions. Mayor Fawcett stated it was determined that the appeal was not timely filed, and consequently, Mr. Schneider may have paid a fee that will be refunded to him. Mr. Gallagher stated he is working on an irrigation system and has nothing to gain from this. He explained that the excavator pushed dirt past the limit of disturbance and the Town is asking that the dirt be pulled back up. He stated that if the dirt were pulled up it would probably be tougher to revegitate because everything that has been buried under the dirt is pretty much shot. It would be easier to do a revegitation over the dirt with native shrubs and grass and run extra irrigation out to establish those plants. Mayor Fawcett would like to see the issue resolved as soon as possible. Mr. Gallagher stated that Mr. Schneider wanted to get the work done as soon as possible but there is a stop work order on the project now. Mayor Fawcett thanked Mr. Gallagher for his input. Mr. Lyn Morgan approached the Council and stated that Mr. Schneider has done a project next to his residence in Wildridge that has scarred the land. He feels the necessary work is not being done by the contractor in regards to the projects he is doing in Wildridge. Mayor Fawcett stated Community Development Director Matzko and Town Attorney Dunn are working to establish fines for such situations. Citizen Input: Mr. Lyn Morgan of Eagle County Ambulance District addressed the Council about a memo he presented to the Council (see attached) on the provision of emergency medical services in The Village at Avon. He stated that the metro district service plan states that they shall have the power to provide for fire protection services including ambulance; however, the budget proposal states nothing that applies to the provision of those services. The ambulance district feels there should be some allotment in the special district proposals that would address funding toward the services. Councilor Reynolds, Jr. asked if their board would have any problems combining a building with other services. Mr. Morgan stated they do feel a combined campus should be considered, but should have separate buildings for their staff and vehicles. Perhaps they could share classroom space and administrative space. 2 0 Citizen Input: • Mr. Chris Neuswanger addressed the Council on The Village at Avon. He has attended many meetings, talked to many people and read most of the PUD and feels he has a good feeling for the impacts of the development. The problems have not gone away from what the County was dealing with and the people are very dissatisfied with the current status of the development. He stated the size and density of the project must be reduced. It cannot be approved based on the proposed size and density. Also, he stated the closed door sessions held with the developer have been very upsetting to the people of Avon and asked that any information from those meetings be released. He asked that the PUD have more time to be worked out before passing any ordinances regardless of the November election deadline. Also, he asked that no more closed door sessions be held. Town Attorney Dunn commented that the proposed annexation agreement attached to the ordinance before the Council tonight is a matter of public record and reflects what the Council in several executive sessions discussed. It has not been entered into by the parties but is just tentative and up for public review in connection with final hearing of the ordinances. Ordinances: Second Reading of Ordinance No. 98-12, Series of 1998, AN ORDINANCE ADDING CHAPTER 3.30 OF THE MUNICIPAL CODE OF THE TOWN OF AVON RELATING TO THE ADMINISTRATION AND DISPOSAL OF UNCLAIMED PROPERTY WHICH IS IN THE POSSESSION OF OR UNDER THE CONTROL OF THE TOWN PUBLIC HEARING Finance Director Scott Wright approached the Council. He stated the Ordinance sets procedures for the administration and disposal of unclaimed property in possession or under control of the Town. Mayor Fawcett asked Council for any questions. There being none, Mayor Fawcett asked for action. Councilor Benson motioned to approve Ordinance No. 98-12, Series of 1998 on second reading. Mayor Protem Yoder seconded the motion. There being no further comments, Mayor Fawcett asked for a roll call. The motion carried unanimously. Ordinances: First Reading of Ordinance No. 98-13, Series of 1998, AN ORDINANCE AMENDING CHAPTER 10 OF THE MUNICIPAL CODE OF THE TOWN OF AVON TO RPOVIDE FOR THE REGULATION OF COMMERCIAL VEHICLES WITHIN THE TOWN OF AVON, AND PROVIDING PENALTIES FOR THE VIOLATION HEREOF Mayor Fawcett asked for any comments from Council. There being none, Mayor Fawcett asked for action. Councilor Reynolds, Sr. motioned to approve Ordinance No. 98-13, Series of 1998 on first reading. Councilor Benson seconded the motion. There being no further comments, Mayor Fawcett asked for a roll call. The motion carried unanimously. 3 Resolutions: E Resolution No. 98-54, Series of 1998, A RESOLUTION APPROIVNG THE PETITION FOR ANNEXATION OF PROPERTY GENERALLY KNOWN AS "THE CONFLUENCE" PUBLIC HEARING Town Attorney Dunn stated he would make a record with respect to the qualification of the property for annexation. Councilor McIlveen stated that for this Resolution and the adjacent Ordinance we would step down from the votes. Town Engineer Wood stated he has reviewed the annexation map for the Confluence property and it does conform to state statutes with regard to the 1 /6 contiguity requirement. It does have more than 1/6 contiguity with the current town boundaries. Town Attorney Dunn stated with respect to the other requirements of the Statutes, it is his opinion that the requirement of community interest exists between the Town and the area proposed to be annexed. The Confluence property is included in the Town's master plan and for that reason it does appear to be in the urban area of the town and does share a community of interest. Attorney Dunn stated he has reviewed the annexation petition and associated materials and none of the limitations to annexation apply. No parcel of real estate is being divided into separate parts or parcels without the written consent of the landowners. Likewise, no parcel of land in identical ownership having a valuation for assessment in excess of $200,000 is being included without the consent of the property owners. No proceedings for annexation are pending with respect to the annexation of this property to any other municipality. This annexation will not result in the detachment of area from any school district. This annexation will not cause the extension of the boundary of the town more than 3 miles in any direction. The annexation petition is signed by 100% of the owners of the proposed annexed property. At this time there is no condition to the annexation. Accordingly, no election is required and the matter may proceed directly to the annexation ordinance as will occur if the Council adopts the Resolution finding eligibility for annexation. Town Attorney Dunn commented that this annexation is described as a short form annexation. Attached to Resolution 98-54 is Exhibit B which is a proposed annexation agreement. The agreement provides that upon annexation of the property there will be a period of time up to November 1, 1998 during which the parties will negotiate the zoning and development of the Confluence parcel. If those negotiations are not successful, then the annexation will be set aside and the property will be de-annexed. At this time the annexation can take place subject to the negotiation as is provided for in the annexation agreement. There has been some further discussion of the precise terms of the annexation agreement. We are requesting the Resolution be adopted subject to technical corrections in the language of the annexation agreement, which have been agreed to between Counsel for the Town and Counsel for the proponent of the annexation. Mr. Michael Sheldon representing Vail Associates, the landowner, approached the Council. He stated they had no presentation but were here to answer any questions of the Council. He stated Mr. Mark Donaldson is finalizing the potential PUD zoning documents, which will be filed this week. We are ready to work with Town staff on the specific issues that have been agreed upon with respect to the development agreement. Mayor Protem Yoder motioned to approve Resolution 98-54, Series of 1998 subject to technical corrections by Counsel for the Town and Counsel for the annexation. Councilor Reynolds, Sr. seconded the motion. There was no further comment. The motion carried unanimously. 4 Ordinances: First Reading of Ordinance No. 98-18, Series of 1998, AN ORDINANCE APPROVING THE ANNEXATION OF CERTAIN TERRITORY IN THE TOWN OF AVON, COLORADO Councilor McIlveen remained stepped down from the bench. Town Attorney Dunn stated this is the Confluence property. It is presented to Council for first reading; however, the proponents of the annexation are requesting that second reading be waived and that the Ordinance be finally adopted at this time. The Town Charter under certain circumstance permits this procedure. It is important because the proponents of the annexation feel that in order to move forward with the creation of special districts within the area of the property being annexed; ifis necessary that the annexation take effect no longer than seven days from this date which would be the effective date of the Ordinance if adopted on final reading at this time. The Resolution adopted previously establishes the basis for the adoption of the Ordinance. Again, it is a short form annexation. If the parties are unable to reach an agreement then the annexation would be set aside so the annexation is tentative at this time. Councilor Reynolds, Jr. asked if they-still had 90 days. Attorney Dunn stated November 1 is the date set in the agreement, which the Council authorized so it is less than 90 days. The reason for November 1 is so that the matter is concluded before the November 3' election at which time the issue of the formation of the special districts will be on the ballot. Mayor Fawcett stated that he does not recall in his 6 years that'they have ever waived a second reading and asked if it is totally necessary. Attorney Dunn stated if the matter is to take place this year then it is necessary. Mr. Sheldon responded there is a statutory process. This year they could go for election in May or November for metropolitan districts which would fund some of the infrastructure on the development. In odd years, 1999, election could only be held one time. If w e don't make the November election to establish the districts, then we loose an entire year until November 1999. We cannot have an election in May of 1999. Mr. Gary White, special district counsel for Vail Associates, advises there is a statutory process in terms of number of days where service plans have to be before the Town and then there is a number of days before which we have to go to the District Court authorizing the setting of the election for November 3, 1998. This process is a conditional annexation, which means that we basically have 60-75 days from now in which to fully discuss with the Town and the public the various issues before the Town with respect to this. Mr. White stated the timing we are dealing with is governed by the need to have the service plan considered by this Council which we won't be able to present to you until September 22. In order for you to hear that service plan, the annexation needs to be effective by that date. If the Council required second reading of the ordinance, the proponent would be pushed beyond September 22. We would not have enough time to file into District Court and meet the timing requirements necessary to meet District Court hearings so in the end we would be pushed beyond the November 3 election date and would be pushed to November 1999. This ordinance needs to be effective prior to September 22. The risk of passing'second reading on September 8 is that the, risk inherent in that process is when we file the petition into District Court, the Court has to set a hearing between 20 and 40 days from the date filed. If the Court schedule is crowded we are pushed to the latter end of the 40 day schedule, even on the September 8 timetable; we are pushed beyond the November 3 date. We are trying to manage the risk associated with not achieving a District Court hearing date. Councilor Reynolds, Jr. asked as the situation sits, we still have 75 days on the other items we are dealing with as far as annexation. There is always an out for both sides. Attorney Dunn stated yes. All the ordinance does is annex the property and there was 5 notice published of the annexation so there was notice published of the Ordinance unlike the usual situation where there is no public notice of first reading. Mr. Sheldon suggested the Council schedule a public hearing sometime in October on the development agreement. Councilor Reynolds, Jr. confirmed that this is just to cover the safety factor of the Court's calendar. Councilor Carnes confirmed that what we decide tonight won't have any claim to zoning or what buildings go where. This does nothing but allow them to get on the ballot and Court calendar. If we don't come to an agreement over the development then the whole thing just goes away. Attorney Dunn stated that is correct. Mayor Fawcett asked for further comments. There being none, Mayor Fawcett asked for any action. Councilor Benson motioned to approve on first and final reading Ordinance No. 98-18, Series of 1998. Mayor Protein Yoder seconded the motion. Mayor Fawcett asked for further comments from Council. Mayor Fawcett asked for a roll call. The motion carried unanimously. Resolutions: Resolution No. 98-50, Series of 1998, A RESOLUTION OF THE TOWN OF AVON RELATING TO THE APPROVAL OF THE SERVICE PLAN FOR TRAER CREEK METROPOLITAN DISTRICT PUBLIC HEARING Mayor Fawcett stated this is a public hearing. Town Attorney Dunn introduced Ms. Darlene Sisneros of McGeady Sisneros, attorney for the proponents for creation of the special districts. Ms. Sisneros introduced Mr. Steve Jeffers of Bigelow and Company, the financial advisor with regard to the service plan for both of the proposed districts. She also introduced Mr. Dan Lynch of Holme, Roberts and Owen, the bond counsel. Councilor Reynolds, Sr. stated he has concerns for presenting the Resolution before the Ordinance. He stated that before we approve the special districts we should approve the annexation. Town Attorney Dunn stated that the approval of the service plans is necessary for the proponents of the annexation to move forward to District Court asking them to set an election for the area to be annexed to form the special districts. This is a conditional annexation meaning the annexation is not final until the zoning is approved (done by ordinance) and the final hearing on that will be September 8u'. Nothing is final until final consideration of the ordinances. Council may approve the service plans but it is only a conditional approval. If Council does not approve the terms of the annexation and the zoning for the property including density and construction of the interchange by September 8 then the approval of the service plans will be invalid and nothing will move forward with the creation of the special districts. Mr. Michael Corral, 10 year resident of Avon, stated it was premature to approve the Resolutions for the metro districts before more important issues are addressed, ordinance approval. 6 0 0 With that said, Mayor Fawcett stated Council would switch back to first reading of the ordinances. Ordinances: First Reading of Ordinance No. 98-14, Series of 1998, AN ORDINANCE CONCERNING THE ANNEXATION TO THE TOWN OF AVON, COLORADO (THE "TOWN"),'OF CERTAIN PROPERTY AS DESCRIBED IN THE VILLAGE AT AVON PETITION`FOR ANNEXATION NO. !-'(THE "PETITION FOR ANNEXATION) Mayor Fawcett asked for comments from Council. There being none, Mayor Fawcett asked if Council would like to take any action. Mayor Protein Yoder stated she would like to hear what the'public has to say before a motion is made. Ms. Beth Riley, resident of Avon and Avon business owner, approached the Council. She is for the annexation, but her concerns are that the current PUD is too dense. The 750,000 sq. ft. of commercial space is not necessary, the excess traffic created by all the residential units. Council should insist the interchange go in first. There should be more discussion involving the citizens and maybe a public vote. She is also concerned about giving them $160 million in tax benefits over 25 years. If we are giving them that, do we give it to every developer? Ms. Chris Ekrem, resident of Avon, approached the, Council. She has read a Town of Avon Annexation and PUD Staff Report of August, 18, 1998 and is concerned that the developer has not done the things that the'staff has asked for in the report. The developer provided a site tour for the P&Z Commission, but the, citizens were not invited. She is concerned that the town of Avon citizens have' no right, to vote in the special district elections. She does not see anything in the Ordinance referring to escrow guarantees on the project; we don't want another Peregrine project:. They should not have their own design review board. They have not confirmed their sites and setbacks, how many units per acre, etc. She does not think the migration corridors have been taken into concern enough. Ms. Cheryl Grimaldi, resident of Singletree with family homeowners in Avon and Eagle- Vail, stated she has seen the developers work on'the East Coast and it is beautiful. She feels they are doing a good job to see-that everyone's needs are met. Mr. Michael Corral approached the Council. He stated he is in favor of the annexation of the property, but not in favor of the annexation agreement or the PUD. Mr. Larry Kilstrup, resident of Eagle-Vail and business owner in Avon, approached the Council. He is for the annexation into Avon. He is against the agreement, the PUD, and the financing. When looking at such a big project you have to look at the long term considerations such as transportation influence and impacts. Where are the construction workers going to be housed? The language in the agreement is written to tear the communities apart, it should unite them. We are giving them too much of the taxes. Mr. Lynn Weas, managing agent of the Christie Lodge, feels we are giving up too much and don't know what we are getting. Another widening of East Beaver Creek Blvd. is crazy; there is no more room to widen this street. Consider the density of the project, there is too much with not enough,control. There must be an interchange in phase one of the project. The finances must be beneficial to the town. He stated he is here for the interest of the town and it is a mistake to rush the annexation through. Mr. Charlie Sherman, resident of Avon since 1978, approached the Council. He is in favor of the annexation, as the land will be developed eventually. He feels the town will 7 • • benefit from the project. He thinks the Council will act in the best interest of the town. If we plan to keep Avon as the center of commerce in this valley, he thinks a project of this quality will elevate the entire town. Mr. Buff Arnold, resident of Cordillera and architect in Avon, approached the Council as a representative of the District 2 Eagle County Trails Committee and Back Country Trails Subcommittee. He wants to make sure the issue of trails and trail access is addressed in the PUD and development agreement. The developer has provided one access point to the national forest. There are some problems with the access that he thinks can be worked out. He is asking for Council's support to the Eagle County Trails System and incorporating that as part of the development agreement. If we don't do it now as part of the agreement then we don't have any leverage to acquire access at any point in the future. It was not address adequately in Mountain Star and it is a problem in Wildridge. They would like to be more involved in the process. Mr. Rich Brown, resident of Eagle-Vail, approached the Council. He feels the Council needs to say no to the project:- It would be the worst thing that could happen to this town and area. Mr. Mark' Weinreich, resident and business owner in Avon, approached the Council. His concerns are that housing for regular folks must be priority number one. Employees are not easy to get. 500 units,of "affordable" units are not enough. We also need to define affordable. He thinks the project is moving too rapidly. `He stated he is for the annexation but we need to slowdown and think this through. Mr. Michael Cacioppo, resident of Homestead with business interests in Avon, approached the Council. This annexation not only effects Avon residents but also all of its neighbors. It is a critical issue that effects the entire County. If the developer cannot take into concern the needs of the people of the entire valley, then they need to go back to the drawing board. The reduction in commercial space is a joke; it will not rent. Council needs to say no. The dispute is what is good for everyone here. It's not fair to infringe on the Christie Lodge anymore to widen the road. This needs to be an annexation and not a gift to the developer. I am pro development. Cut it down to 1200 units. Please reconsider and please cut the fast track. Mayor Fawcett suggested the people read the annexation and development agreement available at the Town. It may answer some of the concerns. He believes the Council has not come to a decision what they will or will not do. That is why the public hearings are so important. We will do the best we can for the people of Avon. Mayor Fawcett asked for a motion. Mayor Protem Yoder stated she would like more meetings and get more input from the people of Avon. She asked those at the meeting if they could get the people to come. Councilor Reynolds, Jr. asked Mr. Rich Brown, of Eagle-Vail, what the opinion of the homeowners was. Mr. Brown stated it was unanimously against the project. Mayor Fawcett asked a representative of the applicant to discuss the time constraints of this project. Ms. Darlene Sisneros stated we are constrained by the TABOR amendment and the time frame when we can have elections. We are trying to meet a November 3 deadline for an election for the service plans. There are issues related to going to the Court and the jurisdictional issues with approvals. With regard to the service plans, we propose the Resolutions be approved conditioned upon the annexation occurring. We would anticipate the annexation occurring close to the time of election. Mayor Fawcett asked if tabled until September 8 for first reading would that make it impossible if everything were approved? 8 Ms.- Sisneros stated the, Resolutions need approval tonight in order to meet the election deadlines. Provided the annexation is -final prior:to the November election then we would be in a position to move forward as'well. Mayor Protem Yoder confirmed we can go ahead with the annexation at any time and you can start your project at anytime but you just have to do it with your own money. Ms. Sisneros stated from the client's perspective the district financing is a very important element to the annexation process, so to separate them is not really consistent with the whole approach that has been taken in the negotiations with the annexation and development agreement. The district is a very important parry to those agreements and many of the obligations are made with the anticipation that they would have bond proceeds to meet the obligations. I don't believe they are comfortable separating those two elements. Councilor Reynolds, Jr. confirmed with Counsel that if the Resolutions are passed, it does not give us any obligation at all. Town Attorney Dunn stated that is correct and it is all based upon final approval of the terms'of the annexation agreement. Councilor Reynolds, Jr. stated we can table the Ordinances and allow them to get on the docket with the court but it doesn't mean anything unless the Ordinances are approved. Councilor Carnes asked why we have until November 3 to approve the service plan for the Confluence and the service plant for this project we have until September 8 to approve. Why can't this go until November 3 also? Ms. Sisneros stated there are two different approaches being taken by two different attorneys. The Confluence has to have property annexed in order to have jurisdiction for you to review the service plans. Our position is that, pursuant to the annexation statutes, you have the ability to negotiate many items including the organization of special districts. However, at the time you go to the court you have to have the property annexed. We are trying to accomplish getting to the election date. If the Resolutions are approved today it allows us to have our election. However,-we would not obtain an order organizing our district until the Council approves the annexation. Mr. Bill Post, counsel for the proponents, stated we have to be annexed by a time certain. When we are annexed we also have to have our zoning. September 22 is the last date for approval to allow us to get to the election. We must have our annexation final so your conditional approval of the service plans will be effective. Ms. Sisneros stated her opinion is that we must have approval of the service plans tonight so we don't gamble with the Courts. We were tabled at the last meeting so we are already delayed. If we miss the November election, we are delayed one year. TABOR allows only November elections in odd numbered years. Mr. Larry Kilstrup felt the Council must have firm assurances from the developer in writing that indemnify the town against all the bond holders that could be effected by this because of the inadequacies of approval sequence. Technically you don't have the jurisdiction to do the approval until after the annexation is complete. Town Attorney Dunn stated he is satisfied with approving the Resolutions tonight. When the annexation occurs, the Resolutions could be readopted: Mayor Fawcett stated he would go back to approval of the Resolutions. Mayor Protein Yoder stated she would like to hear more public input before making any motions. A decision was made to have a "town hall" meeting for public input on September, 2°d at 6:00 PM. Flyers will be posted. Town Manger Efting stated there would be a P&Z site tour this Saturday or Sunday open to the public. 9 Town Attorney Dunn made staff comments on Resolution 98-50 and Resolution 98-51. The service plans have been reviewed extensively by Stan Bernstein, Town financial advisor, and Dick Shier, special district attorney, Dee Wisor, the Town's bond counsel and have made changes to the plans in the best interest of the town. Town Attorney Dunn-asked Mr. Bernstein to address the findings contained in the Resolutions with regard to the proposed special districts being capable of providing economical and sufficientservices to the area within the boundaries of the district, and that the area to be included in the proposed district has or will have the financial ability to discharge the proposed indebtedness on a reasonable basis. Mr. Bernstein.stated based upon the development and build out projections provided by the developer in the service plan, it appears that the district will be able to discharge its indebtedness (revenue bond and general obligation bond). For the record, he added that in the event, the development projections are not met there is always a chance with these districts that the indebtedness might not be discharged. The initial indebtedness is about $75 million of revenue bonds, which would be credit enhanced by the developer. That indebtedness certainly would be discharged no matter what happened to the development. In the event that the district does issue general obligation bonds there is always the chance the mill levy could exceed 10 mills for the district. Once general obligation bonds are issued that is a possibility. The way the service plan has been prepared and developed by the developer, the only incremental cost to people living within the boundaries of the district would be an additional 10 mill levy. 10 mills are approximately 7%-8% higher than the other people within the town of Avon would be paying in property taxes. That is not a significant charge to pay, for the services. In the metro district financing plans there is.a schedule of maintenance charges and fees which were prepared by the developer. They appear to be reasonable in terms of operating the services and maintaining the facilities within the district. Councilor Reynolds, Jr. asked Mr. Bernstein if he felt the plan is substantial enough to cover the'town. Mr. Bernstein stated the town of Avon as it currently exists is not at risk by approving these districts. There is a risk that property owners within the district could pay higher taxes, and that the bond holders might not get paid. I feel we have covered the Town and it is not at risk. Ms. Sisneros emphasized there is', a50 mill levy cap that can be imposed on the property owners in the district. Councilor Reynolds, Sr. askedaf they can't cover their, general obligations, would the town be liable? Mr. Bernstein stated it did not seem to him that they would be liable but they should confirm that with counsel. Town Attorney Dunn stated the Town does not have any contingent liability with respect to obligations of the district. Mr. Bernstein stated that if the district cannot pay the Town for its operating expenditures the Town could simply cease providing services to that area. Town Attorney Dunn stated that is covered -in the preliminary draft of the annexation agreement. It states the districts will reimburse the Town for-municipal services provided. That obligation is guaranteed by the developer and also by the public improvement company, which will be created under the covenants for the subdivision. Mr. Larry Kilstrup asked (regarding the service plans) if the sales taxes are exempted as a revenue source for the bonds or not? Mr. Bernstein clarified if he is questioning if the sales taxes are being pledged to the bonds? He stated absolutely, the district is relying on all the sales tax, the transfer tax, call accommodation taxes, and 10 mills to retire the bonds. Mr. Steve Jeffers of Bigelow and Company, stated the development and revenues are defined within the agreement to incorporate sales tax revenues as well as the real estate transfer tax revenues. They are pledged to the bonds and are an integral part to paying back the-bonds. They are first pledged to paying the bonds, if there are revenues 10 0 • remaining after paying the bonds; they can pledge them to other purposes. Town Attorney Dunn confirmed to Council that the first call on the revenues will be to the bond holders, the second call will be to the Town to pay for municipal services, and the third call would be to pay for other expenses of the public improvement company to include the maintenance of parks and landscaping, etc. Mr. Kilstrup stated the day that up zoning occurs this developer receives approximately $150 million in increased valuation in his property. Councilor Reynolds, Jr. asked who sets the limit on the amount the developer can borrow. Attorney Dunn stated it is set by the service plans. Mayor Fawcett asked what the amount was that the developer was going to personally guarantee. Mr. Bernstein stated $75 million. The payment plan in the service plan is reasonable based upon the assumed rate of commercial and residential build out. Mr. Post stated the developer must personally guarantee the first $75 million with letter of credit. The next $75 million comes fr om the developers pocket. If our development projections don't happen and we can't pay those bonds back they get paid by the developer's letter of credit and he never gets his second $75 million back. The developer technically puts up all the money to start.with. He emphasized that the existing citizens and existing Town will not be paying any of this back. It is only coming out of the pocket of the people in this development. There is no financial burden on the existing town or it's residence by this financial plan. Mr. Cacioppo asked what does the town get out of this. What if the developer goes bankrupt? Mr. Lynn Weas stated he finds it amazing that we are inside of 30 days of total approval and we are still explaining the very basics of how this works. Mayor Fawcett stated we are looking at a date in November or maybe even later. We are approving a formality. It does not mean approval of the project at all. If we don't approve the Resolutions tonight, it is a dead-deal because they won't be able to get on the ballot. But, if we do approve it, it in no way means it is a final approval. Mayor Fawcett asked for any action on Resolution No. 98-50 and Resolution No. 98-51. Resolutions: Resolution No. 98-50, Series of 1998, A RESOLUTION OF THE TOWN OF AVON RELATING TO THE APPROVAL OF THE SERVICE PLAN FOR TRAER CREEK METROPOLITAN DISTRICT PUBLIC HEARING Councilor Benson'motioned to approve Resolution No. 98-50,, Series of 1998. Councilor Reynolds, Jr. seconded the motion. The motion carried with Councilors Carnes and Reynolds, Sr. against approval. Resolutions: Resolution No.-98-51, Series of 1998, A RESOLUTION OF THE TOWN OF AVON RELATING TO THE APPROVAL OF THE SERVICE PLAN FOR THE VILLAGE METROPOLITAN DISTRICT PUBLIC HEARING Ms. Beth Riley asked if-there was going to be a special sales tax district" for that area or is it our sales tax that will go to it. Town Attorney Dunn stated that the sales tax fees are generated within the development. Mr. Kilstrup asked if there are no sales taxes? Town Attorney Dunn stated the public improvement company would charge a fee the same as the sales tax. It is the same thing 11 as Beaver Creek, Keystone, Arrowhead, etc. They cannot charge less than the Town's tax. The Town will waive the sales tax. It will continue in effect until the district is dissolved, which cannot be earlier than 25 years. All services will be paid on an actual cost basis plus 7.5%. The Town will collect the cigarette tax, the road fee from the County, the lottery fees. Town Attorney Dunn stated the sales fees are guaranteed first by the public improvement company and second by the developer. If after that the fees are riot paid, the municipal services can be discontinued. EMD Limited Liability Company, the land owner, is the guarantor. Mr. Steve Jeffers, Bigelow and Company, pointed out there are $150 million of infrastructure improvements to be made within the confines of the two districts. We are going to bond over time about $85 million. The developer will pay the remainder. To get the $85 million of financing,' we will initially do $75 million and they-will have to put up a -letter of credit to back the debt in the form of property, cash or securities. They are clearly at risk in the beginning phases. When we issue $75 million in bonds on day one, we don't have any sales taxes (sales fees), etc. The letter of credit is the backing for the bond purchasers. If our annual debt is $5 million we need to generate $7.5 million worth of fee income before we can release the letter of credit and have the bonds stand on their own. The general obligation bonds, the $10 million over the $75 million, will not be issued until the assessed valuation is there so we know the mill levy can be modest to raise the amount of money necessary. The letter of credit is secured by a major financial institution that is rated at least A+ or Al. The Town has the right after 25 years to dissolve the districts. When dissolved, if the Town wants the sales fee to go away then the sales tax gets imposed in exchange for the sales fee. If they don't want the fee to go away then the public improvement corporation will pay the revenues from the sales fee to the Town in lieu of the sales tax. As long as bonds are outstanding, there will be a lien on the sales fees. Councilor Reynolds, Jr. motioned to approve Resolution No. 98-51, Series of 1998. Councilor Benson seconded the motion. The motion carried with Councilor Carnes and Reynolds, Sr. against approval. Ordinances: First Reading of Ordinance No. 98-14, Series of 1998, AN ORDINANCE CONCERNING THE ANNEXATION TO THE TOWN OF AVON, COLORADO (THE "TOWN"), OF CERTAIN PROPERTY AS DESCRIBED IN THE VILLAGE AT AVON PETITION FOR ANNEXATION NO. 1 (THE "PETITION FOR ANNEXATION") First Reading of Ordinance No. 98-15, Series of 1998, AN ORDINANCE CONCERNING THE ANNEXATION TO THE TOWN OF AVON, COLORADO (THE "TOWN"), OF CERTAIN PROPERTY AS DESCRIBED IN THE VILLAGE AT AVON PETITION FOR ANNEXATION NO. 2 (THE,"PETITION FOR ANNEXATION First Reading of Ordinance.No.-98-16, Series of 1998, AN ORDINANCE APPROVING THE PLANNED UNIT DEVELOPMENT PLAN AND DEVELOPMENT STANDARDS (THE PUD PLAN) FOR THE VILLAGE AT AVON WHICH ESTABLISHES THE ZONING FOR THOSE LANDS ANNEXED TO THE TOWN OF AVON, COLORADO; AS DESCRIBED IN THE ATTACHED'EXHIBIT "A", AND APPROVING A SITE SPECIFIC DEVELOPMENT PLAN ESTABLISHING A VESTED PROPERTY RIGHT PURSUANT TO ARTICLE 68 OF TITLE 24, C.R.S., TOWN OF AVON, EAGLE COUNTY, COLORADO First Reading of Ordinance No. 98-17, Series of 1998, AN ORDINANCE APPROVING THE ANNEXATION AND DEVELOPMENT AGREEMENT (THE "AGREEMENT") 12 BETWEEN THE TOWN OF AVON (THE "TOWN") AND EMD LIMITED LIABILITY COMPANY, A COLORADO LIMITED LIABILITY COMPANY, PVRT NOTT I LLC, A COLORADO LIMITED LIABILITY COMPANY, PVRT NOTT II LLC, A COLORADO 'LIMITED LIABILITY COMPANY AND PVRT NOTT III LLC, A COLORADO LIMITED LIABILITY COMPANY (COLLECTIVELY, THE "OWNER")"CONCERNING ANNEXATION OF THE,LANDS DESCRIBED IN THE VILLAGE AT AVON PETITIONS FOR ANNEXATION NUMBERS 1 AND 2 (COLLECTIVELY, THE "ANNEXATION PETITIONS") AND ORDINANCES NUMBER 98-14 and 98-15 (COLLECTIVELY, THE "ANNEXATION ORDINANCES") AND CONCERNING THE DEVELOPMENT RIGHTS AND RESPONSIBILITIES OF THE TOWN AND THE OWNER WITH RESPECT THERETO; AND AUTHORIZING AND INSTRUCTING THE MAYOR OF THE TOWN OF AVON TO SIGN THE AGREEMENT ON BEHALF OF THE TOWN; AND APPROVING A SITE SPECIFIC DEVELOPMENT PLAN ESTABLISHING A VESTED PROPERTY RIGHT PURSUANT TO ARTICLE 68 OF TITLE 24, C.R.S., AS AMENDED Mayor Protem Yoder motioned to table Ordinances 98-14, 98-15, 98-16, and 98-17 to the September 8, 1998 regular council meeting. Councilor McIlveen seconded the motion. Mayor Fawcett asked for a roll call. The motion carried unanimously. Town Manager Report: Town Manager Efting reminded everyone that the roundabouts will be heavily patrolled tomorrow. Consent Agenda: a.) Approval of the August 11., 1998, Council Meeting Minutes b.) Resolution No. 98-52, Series of 1998, A RESOLUTION APPROVING RELEASE OF SECURITY DEPOSIT FOR WARRANTY WORK FOR THE WATER MAIN EXTENSION INSTALLED AND CONSTRUCTED IN ACCORDANCE WITH COST RECOVERY AGREEMENT FOR BROOKSIDE PARK PUD c.) Resolution No. 98-53, Series of 1998, A RESOLUTION APPROVING THE FOURTH SUPPLEMENTAL PLAT AND CONDOMINIUM MAP, BRIDGEWATER TERRACE CONDOMINIUM, LOTS, BLOCK 3, BENCHMARK AT BEAVER CREEK, TOWN OF AVON, EAGLE COUNTY, COLORADO d.) Financial Matters Mayor Protem Yoder motioned.to approve the Consent Agenda. Councilor Reynolds, Sr. seconded the motion. The motion carried unanimously. There being. no further business to come before the Council, Mayor Fawcett asked for a motion to adjourn. Councilor- Benson motioned to adjourn. Mayor Protem Yoder seconded the motion. The motion carried unanimously. The meeting was adjourned at 9:00 PM. 13 • Y SUBMITTED KrisMash ' Town Clerk 14 EAGLE COUNTY AMBULANCE DISTRICT a August 20, 1998 1055 EDWARDS VILLAGE BLVD. POST OFFICE BOX 990 EDWARDS, COLORADO 81632 OFFICE: 970 926-5270 FAX: 970 926-5235 Mayor Jack Fawcett Town of Avon PO Box 975 Avon, Colorado 81620 Dear Mayor Fawcett and Member of Council: I am writing on behalf of the Board of Directors of the Eagle County Health Services District regarding an emergency services facility in The Village at Avon. While our Manager, Lyn Morgan, has provided you with more detail on the need created by The Village, we summarize our requests as follows: 1. An Emergency Services facility is needed in The Village. We believe it should include fire protection and ambulance operations at an early date; and ultimately law enforcement. 2. The impact of The Village, and the overall provision of fire and EMS services makes, this area ideal for a new facility. 3. The Village, or its Metropolitan District should construct the facility by the year 2002 -due to the immediate impact of the massive construction activity, based on at least the EMS need. 4. The requirement for The Village to construct this facility for at least EMS services by 2002 should be placed in the Annexation Agreement, Facilities Improvement Agreement, and the Metro Districts Service Plans. i Thank you for the opportunity to comment. Sincerely, Board Members Karen McIlwai J hn Milligan editation o/4,,,6 0 h N m 6 ACCREDITED h 1 QV4 Ttv~ K etrie, M