TC Minutes 06-12-2012MINUTES OF THE REGULAR MEETING OF THE AVON TOWN COUNCIL
HELD JUNE 12, 2012
A regular meeting of the Town of Avon, Colorado was held at the Avon Town Hall, One Lake Street,
Avon, Colorado in the Council Chambers.
Mayor Carroll called the meeting to order at 5:35 PM. A roll call was taken and Council members
present were Dave Dantas, Chris Evans, Todd Goulding, Amy Phillips and Buz Reynolds. (Ferraro
Absent). Also present were Town Attorney Eric Heil, Interim Town Manager Patty McKenny, Town
Advisor Larry Brooks, Finance Director Scott Wright, Director PW &T Jenny Strehler, Deputy Town
Clerk /HR Asst. Catherine Mythen, Community Relations Officer Jaime Walker, as well as other staff
members and the public.
APPROVAL OF THE AGENDA.
Mayor Carroll noted a couple minor agenda changes as follows:
➢ Item a) Email regarding Snowball Music Festival was moved after item b) Eagle River Fire Protection
Districts updates.
➢ Presentation on Paperless packets from the work session was added to the regular meeting under
council and staff updates.
COMMUNITY AND CITIZEN INPUT
a. Email only regarding Snowball Music Festival from Tricia Gimbel Epstein
b. Eagle River Fire Protection District Updates (Karl Bauer, Fire Chief) Review recent incidents
c. Karl Bauer, Fire Chief gave a brief presentation on the recent fires here in Avon. Mayor Carroll
commended the group for doing such a great job in handling the fires.
d. Mike Cassioppo commented on the great job that the Eagle River Fire District and Avon did
regarding the fires. He did have concerns that the Fire stations were having monthly closures in the
districts.
e. Charles Frey from Ticino restaurant commented that he would like to have access to his deck
restored.
f. Tamera Underwood an Avon resident mentioned that she was interested in Item # 13 "Discussion an
review of consolidated, amended and restated Annexation and Development Agreement with Traer
Creek Metropolitan District and Traer Creek LLC Representatives" and queried when the financial
projections concerning the revenues and expenditures over the next 75 years for Traer Creek and
Traer Creek Metro District would be available for public review.
Mayor Carroll asked if there were any comments from the public about the Snowball Music Festival, and
no comment were made.
COUNCIL AND STAFF UPDATES
a. Snowball Music Festival Review and Direction for 2013 (Rich Carroll, Mayor, Meryl Jacobs,
Recreation Director) Discussion about hosting event in 2013
Meryl Jacobs presented the snowball festival update. She mentioned that the lodging community would
like to know if the Snowball festival is coming back for 2013. She also mentioned that Snowball was
looking at other venues to hold the festival but had not secured, anything yet. Scott Stoughton was
available to answer any questions and thanked the town for the opportunity to hold the festival in the
Town of Avon. He mentioned that he would like to have the event again in 2013 but also noted that
there were other communities interested in hosting the venue. Mayor Carroll thanked the promoter
and staff on the great job they did during the festival. After some discussion it was agreed that the
further community input would be sought, and a final decision about the Snowball Music Festival would
be decided at the next council meeting on June 26th. The following council members did not want to
host the event again: Carroll, Dantas & Reynolds; the following council members supported further
input from the public: Phillips, Goulding & Evans.
b. Transit Meeting Update with Eagle County Officials (Todd Goulding, Amy Phillips, Councilors)
Councilor Goulding gave an update on the Transit meeting with Eagle County. He noted that the
meeting was very productive and was moving forward with the agreement. Eric Heil, Town Attorney
noted that he was moving forward on creating the lease agreement.
c. Town Manager Search Update (Rich Carroll, Mayor, Dave Dantas, Councilor)
Mayor Carroll gave an update on the town manager search. He noted that the applications would be
reviewed at the June 26th Council Meeting. He also noted that the onsite interviews would be scheduled
for July 16th
d. Paperless Council Packets Review This Item was moved from the Work Session
Cindy Kershaw, IT Administrator, presented the item on paperless packets. She gave an analysis of the
cost to generate the printed packets as compared to the cost of buying the equipment. A brief review of
the cost to complete the paper packets and the options that were available to upgrade to become
paperless. She noted the next steps would be to do some testing on existing packets to identify work
flows that will need to be modified to allow for efficient generation of the packet electronically.
Following the testing efforts staff would present an update to Council in September as part of the
General Government & Finance Presentation.
CONSENT AGENDA
Mayor Carroll asked for a motion on the Consent Agenda. Councilor Evans moved to approve the
Minutes from May 22, 2012, Councilor Phillips seconded the motion and it passed unanimously by those
present. (Ferraro Absent) (Carroll Abstained)
➢ Minutes from May 22, 2012
NEW BUSINESS
a. 2011 Comprehensive Annual Financial Report (Paul Backus, McMahan and Associates) Review final
report of the 2011 Comprehensive Annual Financial Report (CAFR) /Action to accept the report will
be required
Paul Backus, McMahan and Associates, presented the final draft of the 2011 Comprehensive Annual
Financial Report as audited by McMahan and Associates. He noted that this presentation would provide
Council the information and a chance to make any comments on the report. He noted that this financial
report is designed to provide a general overview of the Town of Avon's financial condition. Councilor
Phillips moved to accept the 2011 Comprehensive Annual Financial Report; Councilor Goulding seconded
the motion and it passed unanimously by those present (Ferraro absent).
b. 1 -70 Transportation Operations Facility Project Update and Change Order No. 01 (Jeff Schneider,
Project Engineer) Review change order and final bids
Jeff Schneider provided an update on the 1 -70 Regional Transportation Operations Facility Project
located at 500 Swift Gulch Road. He presented change order 01 to the preconstruction and construction
agreement for FCI Contractors. Change order 01 accomplishes the following:
✓ Accepts the Guaranteed Maximum Price and construction schedule
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✓ Incorporates those items into the agreement
✓ Offers some housekeeping and other contract cleanup to reflect changes in the project that have
occurred since the contract was initially executed,
✓ Provides references to the construction plans and specifications.
Councilor Goulding moved to approve the 1 -70 Transportation Operations Facility Project Update and
Change Order No. 01, Councilor Evans seconded the motion and it passed unanimously by those
present. (Ferraro Absent)
c. Trench, Conduit, and Vault Agreement between the Town of Avon and Holy Cross Energy for
upgrades to the site electrical facilities for the 1 -70 Regional Transportation Operational Facility
"(RTOF ") Project at Swift Gulch (Jeff Schneider, Project Engineer) Work required to move utilities
associated with public works modular building relocation
Jeff Schneider, Project Engineer presented the Trench, Conduit and Vault Agreement between the Town
of Avon and Holy Cross Energy for the 1 -70 regional Transportation Operations Facility project. The
project involves removal and relocation of existing modular office building, demolition, and construction
of new bus storage, wash and maintenance facility as well as associated utilities and infrastructure. Part
of the utility improvements is removal and upgrade of the transformer serving the site. Holy Cross
Energy requires an agreement for the transformer installation. Councilor Dantas moved to approve the
Trench, Conduit, and Vault Agreement between the Town of Avon and Holy Cross Energy for upgrades
to the site electrical facilities for the 1 -70 Regional Transportation Operational Facility "(RTOF ") Project at
Swift Gulch, Councilor Phillips seconded the motion and it passed unanimously by those present.
(Ferraro Absent)
d. Professional Services Agreement for Testing and Inspection Services for the 1 -70 Regional
Transportation Operations Facility (RTOF), Award of Contract to HP Geotech, Inc. (Jeff Schneider,
Project Engineer) Arrangement required to provide testing & inspection services during construction
Jeff Schneider, Project Engineer presented the professional services agreement with Hepworth Pawlak
Geotechnical, Inc for testing ad inspection services related to 1- 70 Regional Transportation Operations
facility project located at Swift Gulch in Avon. Staff conducted a qualifications based solicitation per
federal and state requirements and recommends award of the testing and inspection services to HP
Geotech, Inc. Councilor Evans moved to approve the Professional Services Agreement for Testing and
Inspection Services for the 1 -70 Regional Transportation Operations Facility (RTOF), Award of Contract to
HP Geotech, Inc, Councilor Reynolds seconded the motion and it passed unanimously by those present.
(Ferraro Absent)
ORDINANCES
a. Public Hearing on Ordinance No. 12 -06, Series of 2012, First Reading, Ordinance Approving a Permit
for Areas and Activities of State and Local Interested (1041 Permit) for the Eagle River Water and
Sanitation District for an Expansion of the Avon Wastewater Treatment Plant (Justin Hildreth, Town
Engineer, Jared Barnes, Planner I) Review of 1041 Permit Application related to ERWSD expansion of
Avon Wastewater Treatment Plant
Jared Barnes, Planner 1, presented the Ordinance No. 12 -06 referenced above. He gave a brief summary
on the proposal to expand the wastewater Treatment Plant; which application requires a 1041 review
because the permit is for a major extension of existing domestic water treatment systems. Staff has
approached the different entities ERWSC and NWCOG who had' no objections to the request. Staff did
discuss the CEPC process with other Wastewater Treatment Plants that have used or are currently using
Ferric Chloride as requested by council. Both the Englewood Wastewater Treatment Plant and Metro
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Wastewater Reclamation District and Southgate Sanitation District have used this process. Neither
district had any negative feedback form their use of the process.
Mayor Carroll opened the public hearing, no comments were made, and the hearing was closed.
Councilor Evans moved to approve Ordinance No. 12 -06, Series of 2012, Second Reading, Ordinance
Approving a Permit for Areas and Activities of State and Local Interested (1041 Permit) for the Eagle
River Water and Sanitation District for an Expansion of the Avon Wastewater Treatment Plant.
Councilor Phillips seconded the motion and it passed unanimously by those present. (Ferraro Absent)
b. Public Hearing on Ordinance No. 12 -07, Series of 2012, First Reading, Ordinance Approving an
Amendment to the Gandorf PUD to Remove the Requirement for Deed Restricted Housing and
Construction of a Pedestrian Path (Matt Pielsticker, Planner 11, Jared Barnes, Planner 1) Review
proposed PUD amendment request related to two conditions of current PUD 1) pedestrian access
easement, 2) sale of one dwelling unit to full time resident of Avon
Councilor Reynolds recused himself from this topic due to a conflict of interest. Jared Barnes, Planner I,
presented the request from the applicant, Gandorf Tract B, LLC, for removal of the requirement for deed
restricted housing and the path construction required for the Gandorf PUD. He gave a brief history on
the application that was approved by Ordinance in 2009 which included as part of the PUD 1) pedestrian
access easement, 2) sale of one dwelling unit to full time residents of Avon. Mayor Carroll opened the
public hearing. Phil Matsen and Sean Reynolds presented their request and were available for
questions.
The following Avon Residents were in favor of lifting the deed restriction on the unit in Wildridge
✓ Tim Savage
✓ Steve McDonald
✓ Matt Garnsey
✓ David Long
They noted that in the current market it was more difficult to sell properties with a deed restriction
clause. After Council deliberation, Councilor Phillips moved to approve Ordinance No. 12 -07, Series of
2012, Second Reading, Ordinance Approving an Amendment to the Gandorf PUD eliminating 1)
Construction of the bike path easement and not eliminating the Requirement for Deed Restricted
Housing. Councilor Goulding seconded the motion and it passed unanimously by those present.
(Reynolds — abstained due to conflict of interest; Ferraro Absent)
DISCUSSION ABOUT POTENTIAL CONFLICTS OF INTEREST
Eric Heil, Town Attorney introduced the topic on conflicts of interest. He noted that last fall Councilors
Evans and Goulding each disclosed a business relationship with Stone Creek Elementary and the Eagle
County School District. The Towns Code of Ethics sets forth the definitions and procedure determining
whether the council member has a conflict of interest. After some discussion between council members,
Town Attorney Eric Heil asked that council officially vote on the conflict matter for each councilor.
Mayor Carroll asked the governing body if any member thought there was a conflict of interest for
Councilor Goulding as related to his participation in the discussion and decisions to be made on the
Consolidated, Amended and Restated Annexation and Development Agreement and the Village at Avon
PUD Amendment Application, or any other Traer Creek documents. Deputy Town Clerk Catherine
Mythen called the roll and it was agreed with a three to two vote that a conflict did not exist (Evans,
Phillips, Reynolds— nay; Carroll and Dantas —yea; Ferraro absent).
Mayor Carroll asked the governing body if any member thought there was a conflict of interest for
Councilor Evans as related to his participation in the discussion and decisions to be made on the
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• General Comment that much of the language was too broad and encompassing and a general
preference throughout the document to address the tone balancing the rights between the
Town and Traer Creek Metro District. Chris Evans noted that there is an overriding tone that
essentially states that if it is not expressly prohibited it is allowed. All council members agreed
on this.
• Completion of Documents - documents referenced in the annexation agreement the escrow and
pledge agreements were a part of these documents and Eric Heil Town Attorney noted that he
has seen a most recent draft of the pledge agreement and close to a final draft that could be
included in the first review of the annexation agreement document
• Bond Documents not a need to have the documents before the ordinance is approved but a
need to know what terms are in the annexation agreement that will go in the bond documents
and to review the bond document s
• School Site School site has been split up into 2 parcels needs to be in a condition to be
accepted by the school
• Transit
• Developer advances and the financial modeling to be reviewed
Eric Heil Town Attorney noted that the Preliminary PUD would be reviewed at the next special council
meeting on June 19th and that there would likely be PZC recommendations to review. Mary Jo
Dougherty, McGeady Sisneros representing Traer Creek Metro District, was present to commend on the
financial modeling. Brandy Caswell, Faegre Baker Daniels, representing BNP Parribas Bank noted that
BNP has signed off on the pledge agreement.
There were comments from the public as follows:
✓ Tamara Underwood, Avon resident, commented on the agreement and the time frame to review
the document
✓ Ron Wolfe, President of Stone Creek Charter School, commented that the School still is interested in
having a school site per the settlement agreement
✓ Brian Nolan, Avon resident and School Board Member, commented on the school site language in
the settlement agreement and noted that the school district was very frustrated that
communication has not existed between the town and the district.
There being no further business to come before the Council, the regular meeting adjourned at 10:10
PM.
RESPECTFULLY SUBMITTE�D:'�Q�"\
Catherine Mythen, Deputy Town Clerk
APPROVED:
Rich Carroll
Dave Dantas
Chris Evans
Kristi Ferraro
Todd Goulding
Amy Phillips
Albert `Buz" Reynolds
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Consolidated, Amended and Restated Annexation and Development Agreement and the Village at Avon
PUD Amendment Application, or any other Traer Creek documents. Deputy Town Clerk Catherine
Mythen called the roll and it was agreed with a four to one vote that a conflict did not exist (Dantas,
Goulding, Phillips, Reynolds — nay; Carroll — yea; Ferraro absent). It is noted that Munsey Ayers, Otten
Johnson Robinson Neff & Ragonetti, attorney representing Traer Creek LLC, and Brandi Caswell, Faegre
Baker Daniels representing BNP, did not think there was a conflict of interest for either councilor.
DISCUSSION AND REVIEW Of CONSOLIDATED, AMENDED AND RESTATED ANNEXATION AND DEVELOPMENT AGREEMENT
WITH TRAER CREEK METROPOLITAN DISTRICT AND TRAER CREEK LLC REPRESENTATIVES
Eric Heil, Town Attorney gave a brief update and noted that the town is following a stipulated schedule
as part of the Settlement Agreement. The meeting is held to review and identify what are issues that
need to be addressed before the public hearing and first reading of the ordinance.
The following issues were discussed:
• Interpretation Vested Property Rights
• Master Developer - Council has general concerns with regarding the role of the Master
Developer which is new in this agreement
• Term of the Agreement Terms of the settlement agreement talked about the town tax
obligation in paying the bonds and other obligations and what would be preferable to town if
there are other obligation they would like these to be listed as bullet point and expressed
defined points and the duration of these points
• Tax Credit Town's obligation for tax credit in magnitude only that is sufficient to pay back
existing debt, supplement bonds and developer advances everything covered to the amount of
96 million total cap of the principal for repayment of capital improvements and not for other
items
• Definition of Capital Projects — The town would like to see a list of capital projects stated and
defined and the town's obligation to provide a tax credit related to these projects or other
projects mutually agreed upon.
• Language that addresses Used Taxes and Fees goes beyond what was in the existing agreement
and appears to be a catch all in the new agreement. In the old agreement it states that if there
be any additional fee or taxes imposed in the existing agreements that was defined the town
would collect the new taxes in the new agreement it expands the ability that anything new
would be remitted to the metro district these are not a part of the settlement term sheet and
council would prefer not to see this in the first reading.
• Urban Renewal Authority- the settlement term sheet contemplated the obligation to include a
board seat for Traer Creek and BMP Parribas for matters effecting the Village at Avon and also
impose an obligation if there is a renewal authority that a max of 10 million could be used to
offset the $96 million capital Improvements Cap. There was a third obligation that any property
tax and income generated be remitted to the Traer Creek Metro District which is similar to the
existing agreement with the Urban Renewal Authority and the Town Center West which was
necessary for bonding. Council's preference would be to reduce those provisions down to the
existing items in the settlement term sheet.
• City Market Sales Tax indemnification - This addresses if city market was to relocate to the
village that type of protection needs to carry over to the new agreement which is being
currently worked on
• Remedy Section reviewed the pros and cons to find remedy's for any defaults and preference of
council would be to have defined specific remedy's for defaults to avoid potential conflicts
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