TC Res. No. 2004-09 AUTHORIZING THE TOWN OF AVON TO PAYTOWN OF AVON, COLORADO
RESOLUTION NO. 04-09
SERIES 2004
A RESOLUTION AUTHORIZING THE TOWN OF AVON TO PAY
THE PURCHASE OPTION PRICE IN ORDER TO PURCHASE
SHERWOOD MEADOWS CONDOMINIUM UNITS.
WHEREAS, the Town of Avon (the "Town") has been duly organized and is validly
existing as a home rule town under the Constitution of the State of Colorado and the home rule charter
of the Town (the "Charter"); and
WHEREAS, in order to acquire, construct, renovate and equip 11 condominium units in
the Sherwood Meadows Condominiums (the "2000 Project") for the purpose of providing affordable
housing, the Town entered into a Lease Purchase and Sublease Agreement, dated as of July 1, 1998 (the
"1998 Lease"), and a First Amendment to Lease Purchase and Sublease Agreement, dated as of August
1, 2000 (the "2000 Lease Amendment" and, collectively with the 1998 Lease, the "Lease") with the
Town of Avon Finance Authority (the "Lessor"), whereby the Lessor leased the 2000 Project to the
Town (the "2000 Lease"); and
WHEREAS, the Lessor issued Certificates of Participation, Series 2000 (the "2000
Certificates") evidencing assignments in proportionate interests in the right to receive payments pursuant
to the Lease; and
WHEREAS, the 2000 Certificates were issued pursuant to a Mortgage and Indenture of
Trust, dated as of July 1, 1998 (the "1998 Indenture"), and a First Supplement to Mortgage and
Indenture of Trust, dated as of August 1, 2000 (the "2000 Indenture Supplement' 'and, collectively with
the 1998 Indenture, the "Indenture"), between She Lessor and American National Bank, formerly The
Bank of Cherry Creek, N.A. (the "Trustee"); and
WHEREAS, pursuant to Section 2.03(a) of the 2000 Indenture Supplement, the 2000
Certificates may be called in whole on any interest payment date in the event of, and to the extent
moneys are actually received by the Trustee from, the exercise by the Town of its option to purchase the
2000 Project as provided in the Lease, upon payment of 100% of the principal amount thereof, plus
accrued interest to the redemption date (the "Purchase Option Price") from Town moneys currently on
hand; and
WHEREAS, pursuant to Section 6.01 of the 1998 Indenture and Section 1.05 of the 2000
Indenture Supplement, upon payment of the Purchase Option Price, the right, title and interest of the
Trustee in and to the 2000 Project and all covenants, agreements and other obligations of the Lessor and
the Town to the Trustee and the registered owners of the 2000 Certificates shall thereupon cease,
terminate and become void and be discharged and satisfied; and
WHEREAS, upon the request of the Town, the Trustee and the Lessor shall transfer and
convey to the Town all property in connection with the 2000 Project assigned, pledged and mortgaged to
the Trustee by the Lessor then held by the Lessor or by the Trustee pursuant to the Indenture; and
WHEREAS, pursuant to Section 4.5 of the 2000 Lease Amendment and Section 12.1 of
the 1998 Lease, the Town has been granted the option to terminate the 2000 Lease and to purchase the
2000 Project upon payment by the Town of the Purchase Option Price and discharge of the 2000
Indenture Supplement; and
WHEREAS, in order to exercise such option, the Town shall give written notice to the
Trustee of its intention to purchase the 2000 Project, specifying a closing date for such purchase which
shall be no less than 15 days after the giving of such written notice; and
WHEREAS, the Town Council of the Town (the "Town Council") has determined and
hereby determines it is in the best interest of the Town and its inhabitants that the Town exercise its
option to purchase the 2000 Project and terminate the 2000 Lease; and
WHEREAS, the Town currently has on hand funds sufficient to pay the Purchase Option
Price.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF AVON, COLORADO, THAT:
Section 1. The payment of the Purchase Option Price to the Trustee is authorized and
approved. The Council declares that the 2000 Project is being acquired for sale to individual purchasers
and not for use for public purposes except for one unit which will be retained for Town purposes.
Section 2. The Town Finance Director is hereby authorized and directed to deliver to
the Trustee written notice of the Town's intention to purchase the 2000 Project and to request the
Trustee and Lessor to transfer and convey to the Town all property in connection with the 2000 Project
assigned, pledged and mortgaged to the Trustee by the Lessor currently held by the Lessor or by the
Trustee.
Section 3. All bylaws, orders and resolutions, or parts thereof, inconsistent herewith
are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed as
reviving any bylaw, order or resolution or part thereof.
Section 4. This Resolution shall be in full force and effect immediately upon its
passage and approval.
PASSED, ADOPTED AND APPROVED this 11 ate, 2004.
Albert D. Reynolds,
Attest:
Patty McVenny, r~rn Clerk
Resolution No. 04-09
Page 2of2
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Memo
Town of Avon
To: Honorable Mayor and Town Council
T1w: Lary Brooks, Town Manager
From Scott Wright, Finance Director
Date: April 8, 2004
Re: Sherwood Meadows Purchase Option Resolution No. 04-09, Budget Amendment Resolution
No. 04-10
Surmmann
As staff has previously discussed with Council, attached is 'Resolution No. 04-09 from bond
council authorizing the, Town of Avon to exercise and pay the purchase option in order to
• acquire the Sherwood Meadows condominium units.
Also attached is: Resolution No. 0410, amending the Town of Avon Finance Authority and
Sherwood Meadows Enterprise Fund budgets to reflect the pay-off of the COPs and the sale
of ten condominium units. The net effect of these budget amendments is a reduction in the
Town's subsidy to She Meadows from $165,000 to $130,000, remembering that the.
Town is retaining one unit.
As of today, 9 of the 10 units for sale are under contract for closing on April 30th.
Recommendation:
Staff recommends that Council adopt the resolutions discussed above as presented.
Town Manager Comments:
Attachments:
A - Resolution 0409
B - Resolution 0410
C - Summary of Proposed Amendments by Fund
Page 1
r~
Finance Authority Debt Service Fund #34
Amendment #1
Fund Summa
Original or
Current
Prev. Amend.
Proposed
Difference
Account
Actual
Actual
Budget
Budget
Increase
Number
Description
2002
2003
2004
2004
(Decrease)
REVENUES
Investment Earnings:
57101
Investment Earnings
$ 13,271
$ 7,871
$ 10,000
$ 5,600
$ (4,400)
Other Revenues:
58201
Lease of Property - Sherwood Meadows Fun
192,429
193,371
194,193
1,981,736
1,787,543
58201
Lease of Property - Fleet Maintenance Fund
408,106
420,178
413,994
413,994
-
Total Other Revenues
600,535
613,549
608,187
2,395,730 1,787,543
Other Sources:
59201 Transfers-In from General Fund
136,036
140,059
137,999
137,999 -
Total Other Sources
136,036
140,059
137,999
137,999 -
TOTAL REVENUES
749,842
761,479
756,186
2,539,329 1,783,143
EXPENDITURES
• Debt Service:
921 Series 2000, Certificates of Participation:
65101 Principal 75,000 75,000 80,000 2,125,000 2,045,000
65102 Interest 120,508 117,020 113,458 56,729 (56,729)
65103 Fiscal Agent Fees 900 2,400 3,400 5,000 1,600
920 Series 1998, Certificates of Participation:
65101 Principal 250,000 270,000 275,000 275,000 -
65102 Interest 303,562 292,938 281,328 281,328 -
65103 Fiscal Agent Fees 900 3,250 3,000 3,000 -
TOTAL EXPENDITURES
NET SOURCE (USE) OF FUNDS
FUND BALANCES, Beginning of Year
FUND BALANCES, End of Year
•
750,870 760,608 756,186 2,746,057 1,989,871
(1,028) 871
(206,728) (206,728)
784,668 783,640 783,640 783,640 -
$ 783,640 $ 784,511 $'783,640 $ 576,912 $ (206,728)
Page 1
Sherwood Meadows Enterprise Fund #53
Amendment #1
Fund Summa
REVENUES
Charges for Services
Total Operating Revenues
Other Sources
Sales of Fixed Assets
Operating Transfers In
Total Other Sources
TOTAL REVENUES
EXPENDITURES
General Government:
Employee Housing
Total Operating Expenditures
TOTAL EXPENDITURES
NET SOURCE (USE) OF FUNDS
FUND BALANCES, Beginning of Year
FUND BALANCES, End of Year
Original or
Current
Prev. Amend.
Proposed Difference
Actual Actual Budget
Budget Increase
2002 2003 2004
2004 (Decrease)
$ 121,306 $ 92,357 $ 108,864 $ 15,555 $ (93,309)
121,306 92,357 108,864 15,555 (93,309)
- - - 1,863,000 1,863,000
182,500 150,000 165,000 130,000 (35,000)
182,500 150,000 165,000 1,993,000 1,828,000
303,806 242,357 273,864 2,008,555 1,734,691
269,120 265,715 272,675 2,012,573 1,739,898
269,120 265,715 272,675 2,012,573 1,739,898 49
269,120 265,715 272,675 2,012,573 1,739,898
34,686 (23,358) 1,189 (4,018) (5,207)
(5,526) 29,160 5,486 5,802 316
$ 29,160 $ 5,802 $ 6,675 $ 1,784 $ (4,891)
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Page 1
Sherwood Meadows Enterprise Fund #53
Amendment #1
Fund Summa
Original or
Current
Prev. Amend.
Proposed
Difference
Actual Actual Budget
Budget
Increase
Description 2002 2003 2004
2004
(Decrease)
Charges for Services:
Employee Housing:
Rental Revenues - Employees
Employee Housing Maintenance
Rental Revenues - Nonemployee
Late Fees and Other Charges
•
Total Charges for Services
Other Sources:
Sales of Fixed Assets
Operating Transfer In
Total Other Sources
TOTAL REVENUES
•
$ 78,752 $ 81,272 $ 108,864 $ 15,555 $ (93,309)
9,422 588 - - -
33,032 10,497 - - -
100 - - - -
121,306 92,357 108,864 15,555 (93,309)
- - - 1,863,000 1,863,000
182,500 150,000 165,000 - (165,000)
182,500 150,000 165,000 1,863,000 1,698,000
$ 303,806 $ 242,357 $ 273,864 $1,878,555 $1,604,691
Page 2
Town of Avon
Line Item Detail
Amendment #1
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Function: General Government/Housing #100
Department: N/A
Program: Sherwood Meadows #191
Original or
Current
Prev. Amend.
Proposed Difference
Account
Actual
Actual
Budget
Budget Increase
Number
Account Description
2002
2003
2004
2004 (Decrease)
Personnel Services:
61101
Regular Full-time Salaries
$ 2,482
$ _
$ _
$ _ $ _
61121
PTS Wages
-
278
61304
Employee Assistance Program
1
_
61401
FICA/Medicare
36
4
61402
Group Health and Life Insurance
331
-
61505
Long-term Disability Insurance
12
2
61507
Dental Insurance
31
3
61509
Worker's Compensation
104
8
61510
Unemployment Insurance
8
_
61000 Total Personnel 3,005 295
Commodities:
62899 Other Miscellaneous Operating Supplies _ _
62000 Total Commodities
Purchased and Contracted Services:
63501 R&M - Buildings and Facilities 20,330 14,920 14,040 10,000 (4,040)
63999 Other Purchased and Contracted Services 2,822 1,787 5,500 304 (5,196)
63000 Total Purchased and Contracted Services 23,152 16,707 19,540 10,304 (9,236)
Other Operating Costs:
64102
Dues, Licenses and Memberships
31,716
33,696
35,628
11,232
(24,396)
64203
Electric
13,243
14,705
16,000
7,000
(9,000)
64207
Cable Television
3,631
5,930
6,513
2,000
(4,513)
64901
Advertising and Legal Notices
550
742
500
-
(500)
64905
Insurance Premiums
1,394
269
301
301
-
64000
Total Other Operating Costs
50,534
55,342
58,942
20,533
(38,409)
Debt Service:
65201
Capital Lease Payments
192,429
193,371
194,193
1,981,736
1,787,543
65000
Total Debt Service
192,429
193,371
194,193
1,981,736
1,787,543
Capital Outlay:
66404
Furniture and Fixtures
_
66000
Total Capital Outlay
_
_
_
60000
Total Expenditures
$ 269,120 $
265,715 $
272,675
$ 2,012,573
$ 1,739,898
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