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TC Res. No. 2010-16 no motion0 0 ryl 6-h � n I' and Memo To: Honorable Mayor and Town Council Thru: Larry Brooks, Town Manager From: Eric Heil, Town Attorney Scott Wright, Assistant Town Manager /Finance Sally Veccio, Assistant Town Manager /Community Development Jennifer Strehler, Director of Public Works and Transportation Justin Hildreth, Town Engineer , Jaime Walker, Community Relations Officer Date: June 22, 2010 Re: Resolution 10 -16. Referral of Connect Avon Now Project to a Public Vote Connect Avon Now (CAN) is a package of local improvements to mass transit, pedestrian and bicycle trails, and parking which would allow Avon to build toward the community's vision for great connectivity and an economically vibrant downtown. Work on the CAN project was initiated in March 2009. The goal was to find a new revenue source to stabilize the Avon Transit's budget and allow for consistency of bus service and route expansion to areas of need. It quickly became apparent to the Council that pedestrian and bicycle connections were also needed to link transit stops and neighborhoods. Then, as a result of discussions related to land use and urban renewal considerations, Town Council requested inclusion of a public parking facility in Connect Avon Now project because it is seen as an important public improvement and catalyst to promoting the type of compact, mixed use development that is essential to creating the vibrant, community core envisioned in Avon Comprehensive Plan. Community members confirmed during focus group discussions held in March 2010 that the proposed improvements to transit, trails, and parking support each other in creating better connectivity and mobility within the town. To date, the project has included financial and legal analysis from Stan Bernstein and Associates and Piper Jaffrey, LLC. It is important to understand that the improvements included in the Connect Avon Now Project do not have an alternative source of funding and are unlikely to occur unless additional funding sources are approved by the public. During this meeting, the Town Council will decide 9hether to refer the project to a public vote for the November 2010 election. The goal 0"f this memo is to provide sufficient information so that the Town Council can make an informed decision. Page 1 Previous Council Actions: Approximately 20 meetings with the public and /or the Avon Town Council have been held on tl� Connect Avon Now Project specifically. See attached for chronology of previous Council Action Background A variety of transportation improvements were identified during preparation of the Avon Comprehensive Plan (2006), The East Town Center District Plan (2006), The West Town Center Investment Plan(2007), The Community Survey (2008), and the Avon Comprehensive Transportation Plan(2009). These plans support the need to make Avon a more walkable, urban - village community where commercial areas, affordable housing, and recreational amenities are easily accessible without a car. The town has spent over $900,000 in outsourced consulting costs for these studies - all of which are based on a transit - oriented land plan with centralized parking in the town core. Feedback provided by the community during preparation of these foundational plans was consistent with purpose and scope of this Connect Avon Now Project. The Avon Comprehensive Transportation Plan provided the engineering and cost - estimate basis of the specific project components included in the Connect Avon Now Project. That engineering document was developed from the broad vision and goal statements adopted with Comprehensive Plan. Where the Transportation Plan included recommendations for improvements needed through 2035 and costing over $100 million, the Town Council decided to scope the Connect Avon Now Project to focus on those improvements that are most critically needed within the next 10 -15 years and can realistically be funded through new, voter - approved revenue sources. Discussion • This memo discusses the following: 1. a brief overview of the project 2. a description of the project scope 3. the financial plan to pay for these improvements, 4. an explanation of the public outreach 5. a summary of the community feedback received thus far 6. a description, in layman's terms, of the proposed ballot language 7. information about the Fair Campaign Practices Act 1. Project Overview The Connect Avon Now Project is the implementation step of many earlier plans, studies, and analysis. It is a pro- active effort by the community to create a more vibrant commercial core which is transit - oriented with better and safer pedestrian and bicycle connections, and easily accessible public parking. It is intended to accommodate additional development in the Town core while reducing automobile dependency and traffic impacts as well as promoting a competitive environment for visitor based economic development. Funding the Connect Avon Now Project requires a commitment to this vision and a willingness to invest in our local infrastructure. Today's investment will result in: • increased frequency of fare -free bus service, • extension of bus routes to Beaver Creek and to shops at the Village at Avon, • construction of 15+ miles of new pedestrian bridges and bike trails, • construction of parking to promote commercial development in the town core with a cohesive look, feel, and inter - connectedness, • • economic stimulation through creation of an estimated 800+ local jobs. Page 2 The Connect Avon Now Project is funded by an incremental sales tax increase of 0.85% and a 4.500 mill levy property tax. The mill levy would be phased -in in 2011 and 2017 (to replace two • expiring levies) such that most Avon residents will not see a change on their property taxes as compared to today. The mill levy results in a continued average payment of about $7.50 /month in 2011 on property taxes. Approximately 2 /3rds of all sales tax collected in Avon is actually generated by visitors, therefore, approximately $3 in sales tax revenue would be generated for every $1 of sales tax that is paid by local residents. The Project is intended to enhance the attractiveness and vitality of the Town core which will benefit lodges, restaurants, shops, and other commercial businesses. The relative cost to a consumer spending $400 per month on taxable goods in Avon would be to pay an additional $3.40 in sales tax, which is less than the average commuter pays to ride ECO Transit for just one day. Avan'a Swat vbk m cmaeo t woo tOm don=WL CAN tY+nfng tines sdu tam so that vtdt= my thdr ftk dw*. 2. Project Scope ' The three main project components of the Connect Avon Now Project are transit, pedestrian /bicycle trails, and parking. Each component is described here. Transit Scope, budget, and ridership trends are presented below. The Village at Avon and the impact to Avon Transit's service if the Connect Avon Now Project is not approved area also discussed. • Scope - The Connect Avon Now Project will allow for improved bus service and route extension to the Village at Avon stores, Buffalo Ridge Affordable Housing Complex, and Beaver Creek Ski Area. It funds construction of new bus stop pullouts and improvements at existing bus stops (e.g., street lighting, signage, benches) to improve safety and create a more cohesive appearance. These transit improvements would be implemented as soon as possible, with all service extensions in place no later than the start of the 2011 -12 ski season. Additionally, the Connect Avon Now Project would allow for increased frequency of buses to meet increasing demands as the town population grows. Budget - The Connect Avon Now Project will change the way Avon Transit is funded, at least in part. The General Fund would still contribute funds for operations, but would cap this expenditure at $1,000,000 per year or 9% of the general fund revenues. A portion of the new tax - generated revenue will be dedicated to transit, providing a means to deliver a stable service level in future years. This predictability in route location and service frequency would give residents, guests, and developers more confidence to make investment decisions in Avon. It will also assist in making parking - related decisions for development projects. The Connect Avon Now Project proposes to fund transit operations primarily from the sales tax with a smaller contribution from the new property tax revenue (see "Financial Plan "). Avon Transit also incurs capital expenses for equipment replacement, bus stop construction, and other facility needs. Based on projections for capital costs, $2.5M has been included in the Debt Question for the Connect Avon Now Project. 1 Assumes residence with assessed value of $500,000. Page 3 Ridership Trends - Ridership data for Avon Transit was requested by Town Council during the May 25th meeting. Table 1 provides this information. The usual trend, that public transit ridership drops when the service level drops, is observed here. • The impacts of the economic recession combined with the transit service reduction can be seen by comparing the 2008 and 2010 ski season ridership. The number of riders dropped 34% on all routes and 31% on the Gondola Express (lodging guests) during this 2 -year period when service was simultaneously reduced by about 28 %. The "riders per service hour" metric is generally more informative than the absolute numbers of riders. This performance metric looks reasonable. Overall, trends indicate continued proportionate use of Avon Transit by workers and guests alike. Table 1. Avon Transit Riders hi Data Year Ridership Service Hours Riders per service hour 2006 538,116 18,749 28.7 2007 582,906 17,703 32.9 2008 400,692 14,388 27.8 2009 348,040 13,547 25.7 2010 166,535 (thru 4/13/10) 6,342 (thru 4/13/10) 26.3 Table Notes: The level of transit service dropped in 2010 and is projected to be 10,658 hr by end of October. November and December are budgeted in the next calendar year (2011) Considerations Regarding the Vi/ /age at Avon (VAA) - Table 1 shows that Avon Transit • ridership and the number of riders per service hour were the highest in 2006 and 2007 when Avon Transit served Buffalo Ridge and the WalMart commercial area. Over 500 riders per day were, on average, recorded at VAA transit stops during May 2006 - April 2007, demonstrating a clear need for bus service to this area. Polarstar, Buffalo Ridge property managers, and Town Council members alike have requested re- instatement of Avon Transit bus service to serve affordable housing residents at Buffalo Ridge. The Connect Avon Now Project would enable the Town to provide bus service to the VAA properties, thereby serving the VAA residents, connecting the VAA residents with the WalMart, Home Depot and VAA stores, and connecting the VAA residents with the Town core. If the Connect Avon Now Project is Not Approved - If the Connect Avon Now Project does not pass and the town caps the subsidy from the General Fund to Avon Transit at $1,000,000 per year as expected, some cuts in transit service will be needed as compared to current levels. Avon Transit had been receiving about $1,400,000 from the General Fund. Cuts occurred in 2009 and 2010 which reduced service hours and funding for fleet replacement, resulting in a $1,225,000 subsidy in 2009 and expected similar value for 2010. If the Connect Avon Now Project is not approved, a $1,000,000 subsidy in 2011 would provide for only about 7,500 bus in- service hours, in addition to the required expenses for gondola operations, bus maintenance, bus replacement, and bus stop maintenance. Due to federal and license requirements, year -round (i.e., not seasonal) service must be provided by public transit. To fit these constraints, one reasonable bus service scenario would be to provide 1 bus in the town core during the hours of • approximately 6:30am- 7:30pm using the figure -eight black route (30- minute interval) Page 4 daily, plus a weekend lodging shuttle connecting to Avon Station during ski season. However, no funding would be available for evening service or weekday peak season • needs, nor would funding be available to contribute to a Beaver Creek Shuttle, to extend routes, or to replace fleet. The potential negative impacts to Town core businesses from a reduced level of service is not known. This reduced level of service would not meet existing demands or fund bus replacement for future use. Pedestrian, Bicycle Improvements Scope and funding are presented below. If the Connect Avon Now Project is not implemented, the pedestrian and bicycle improvements listed here would be delayed indefinitely until we can determine a funding source for these projects. Scope - Many desired pedestrian, bicycle and trail improvements were identified in the "Comprehensive Transportation Plan ". Town Council reviewed the list of recommended projects and prioritized the list in Table 2; this is the basis for the anticipated pedestrian and bicycle trail expenditures in the Connect Avon Now Project. Table 2. Sample Pedestrian and Bicycle Project Components Project CAN Allowance Neighborhood Singletree/Nottingham Trailhead (new) $ 148,500 Nottingham Trail Connector (Nottingham to Buck Cr.) $ 50,000 Nottingham West Beaver Creek Blvd Pedestrian Improvements $ 50,000 West Avon Metcalf Bike lane/Trail (new) $ 500,000 Wildwood /Wildridge /Mountain Star • Chapel Place Pedestrian Improvements $ 50,000 East Avon Ped RR Ped Crossing @ Eagle Bend Dr.* $ 185,000 East Avon /Eaglebend /Stone Bridge Lower Buck Cr. Trail (new) $ 100,000 Nottingham Upper Buck Cr. Trail (improvements) $ 55,000 Nottingham /Mountain Star Beaver Cr. Overlook Trail (improvements) $ 251,000 Wildridge Metcalf Recreational Trail and Trailhead (new) $ 245,000 Wildwood /Wildridge /Mountain Star Saddle Ridge Trail (new, restore) $ 38,000 Wildridge Misc. Recreational Trail Restorations $ 33,000 All Paved path from W. Beaver Cr Blvd to Lake St. $ 350,000 West Avon HWY 6 Pedestrian underpass @ Beaver Creek* $ 1,000,000 All Hwy 6 sidewalks* $ 500,000 All 1 -70 Ped underpass @ Metcalf* $ 1,500,000 West Avon /Nottingham 1 -70 Ped Overpass @ Buffalo Ridge* $ 2,000,000 Village at Avon Total $ 7,055,500 Average annual funding generated to trails $ 313,000 approximate amount per year Years to complete all w/o debt funding 23 years Percentage of project costs completed within 5 years 22% Possible number of projects completed within 5 years 8 -12 projects to be done *Indicates that this is a portion of the total cast; funding from other stakeholders is anticipated due to mutual benefit. See Table 3. Budget - Planning level costs estimates prepared by licensed civil engineers have been used as the basis for a budget for pedestrian and bicycle trail improvements. New sidewalks, bridges, trails, paths and crosswalks could be funded on either a 'spay- as -you- go" basis or via debt authorization. Several of the larger pedestrian, bicycle, and trail • projects will require grant funding, developer contributions, or contributions from other stakeholders (e.g., Eagle County, state). An estimate of the range of costs for these Page 5 larger projects and the funding which would be available from the Connect Avon Now Project is shown in Table 3. A minimum of $7.5M in debt service for design and construction of pedestrian and bicycle trail project components has been included in the Debt Question. Debt service allows these components to be planned, designed, and constructed in the most cost - effective manner. Authorization for debt service for these components also increases the town's opportunity to obtain grants for a portion of the costs. Table 3. Share of Total Project Cost Included in Financial Estimate for the Projected Larger Pedestrian and Bicycle Projects Larger Pedestrian Projects Low Range High Range CAN Allowance Ped RR Ped Crossing @ Eagle Bend Dr. $ 500,000 $ 2,000,000 $ 185,000 HWY 6 Pedestrian underpass @ Beaver Creek $ 1,000,000 $ 2,000,000 $ 1,000,000 Hwy 6 sidewalks $ 1,000,000 $ 1,200,000 $ 500,000 1 -70 Ped underpass @ Metcalf $ 1,800,000 $ 2,500,000 $ 1,500,000 1 -70 Ped Overpass @ Buffalo Ridge $ 2,000,000 $ 3,000,000 $ 2,000,000 Total $ 6,300,000 $ 10,700,000 $ 5,185,000 Parking Scope and funding of not passing the are presented below relevant to the parking component. Implications Connect Avon Now project are also discussed. Scope - Public parking is needed on both east and west sides of Avon Road in the town core in order to accommodate the planned density. The Connect Avon Now Project could help fund a town -wide parking study and if approved by voters, construct approximately 500 stalls of structured parking. The long range plans for "West Town Center Plan" envision a vibrant, mixed -use commercial district that services as the social, cultural, political and recreational gathering place in overall town center. In order to realize the vision for this area, the Plan recommends a redevelopment program for the District consisting 125,000 sq ft of new commercial and retail square footage and 500 to 750 new residential units. The Plan also identifies a number of public improvements needed to catalyze the redevelopment program, including a 269 space public parking garage to be located next to the Recreation Center. To date, the Town has completed more than $11 million in public improvements and design work identified in the "West Town Center Plan ". The "East Town Center District Plan" was drafted in 2008 for the purpose of Page 6 L_� directing public and private redevelopment projects in the district. The Plan recommends that municipal involvement focus on actions that will produce the • most public benefit, including a public plaza above 240 underground parking spaces, road improvements and streetscape work. The Plan anticipates that the revenue to pay for a public garage would be shared between the Town and developers through a parking payment -in -lieu fee. Budget - The Tax Question includes sufficient revenue to defease debt to allocate up to $20M to a parking structure or combination of parking structures. Depending on design (e.g. above or below ground) and location (e.g., land costs), this is approximately sufficient to fund a 500 stall garage. The Town's strategy is to create a parking overlay district and match developer pay -in -lieu contributions with public contributions, and use public financing such as general authorization bonds to take advantage of low interest financing. This creates a mechanism to motivate private development while also producing a desired downtown land layout where residents can easily find convenient • and affordable parking. Note that the Debt Question does not include authorization for construction of a parking "There is a general understanding from a market perspective that the initial public improvements must be made by the Town to instill confidence in the vision for West Town Center District and to demonstrate a commitment to the revitalization of the district. Redevelopment of each of the infill parcels is unlikely to occur in the manner envisioned for the district absent this upfront commitment from the Town. Conversely, these parcels are likely to accelerate their own redevelopment schedule once the public improvements are in place and the redevelopment potential for the area is clearly evidenced. The public improvements most important to catalyze the redevelopment of the area include the transit center, the main street pedestrian improvements and the parking component of the parking structure." West Town Center District Plan, 2007. (A.3 Planning Considerations, pg 4). garage. Bond consultants recommend that the Town wait on making this request of voters after the result of the parking planning study are complete (see Financial Plan). If the Connect Avon Now Project is Not Approved - The density of private development in the Town core is likely to be restricted by the minimum off- street parking requirement. The probable effect is that the Town core will not achieve the desired minimum critical mass of density envisioned to create a vibrant Town core. 3. Financial Plan Town Council has considered several options to fund this project. The selected option is an incremental sales tax increase of 0.85% and a 4.500 mill levy which is to be phased -in over time. The new mill levies replace the expiring ones such that most Avon residents will not see a change on their property taxes as compared to today. The relationship of revenue generated to project component expenditures is shown graphically on the next page. Page 7 r� Sales Tax A portion of funding from sales tax was selected for inclusion in the Connect Avon Now Project because it recognizes the transportation demand created by visitors, guests, lodges, restaurants, and other local businesses. Also, many of the key benefits of the Connect Avon Now Project are aimed at and will be received by local lodges, restaurants, and other the business community. Town Council felt it would be inappropriate to fund all of the project costs from just a sales tax increase, however, because of the resulting total sales tax. Thus, an incremental sales tax increase of 0.85% was included in the Tax Question. This increment will increase the total sales tax rate from 8.40% to 9.25 %. This higher rate is considered reasonable because it is consistent with other incorporated ski towns and regional shopping districts such as Glenwood.Z A family spending $400 /month in Avon would pay an additional $3.40 in sales tax. As a point of comparison, the cost of� riding ECO Transit for just 1 day is $6.00. Mill Levy A mill levy of 2.250 in 2011 plus another 2.250 mills in 2017 is included in the Tax Question. This phasing plan was selected to minimize the burden to property owners. The dates for phasing in the new levy correspond to expiration dates for two existing mill levies. These two expiring mill levies are: (1) 2.535 mills for the water system which expires on 12/31/2010 and (2) 2.252 mills (currently) for the Avon Road roundabouts which expires 12/31/2016. Collectively, these expiring levies are slightly higher than the replacement levy included in the Project(4.500). Most properties in Avon would not experience a mill levy or property tax increase; however, properties which were not within the Avon Metropolitan Aspen 9.00% 2.1% Awn Current 8.40% 0% With Connect Awn Now 9.25% 0% Beaver Creek - 9.75% 0% . Crested Butte 8.50% 4% Frisco 7.775% 0% Glenwood Springs 0% Meadows Shopping District 10.10% 0% Other areas 8.60% 0% Silverthome 7.775% 0% Snowmass Village 10.40% 00/0 Steamboat Springs 8.40% 4.5% Telluride 8.40% 0% Vail 8.40% 4% *Also applied to motor vehicles. District would be subject to a 2.5 mill levy 2 It is inconsistent to compare Avon's or Vail's sales tax rate to that in unincorporated Eagle County • because municipal services are considerably lower. Page 8 increase. Note that some neighborhoods did not participate in the older levies; they will • see an increase in 2.250 mills property tax assessment as a result during both 2011 and 2017. The net result is small - the proposed Project levy equates to about $7.50 /month on a property valued at $500,000 in 2011 and about $15 /month for the same property by 2017. Geographically, the majority (81 %) of the new revenue for this project will primarily come from the land areas comprised of the town core area and VAA. This is same area which will enjoy new parking facilities and the concentration of bus service as a result of the Connect Avon Now Project. Pedestrian and bicycle trails are located throughout Avon, including Eaglebend, West Beaver Creek Blvd, and into outlying neighborhoods such as Wildridge and Mountain Star. (See Table 2) 4. Public Outreach and Involvement I htta:/ /www.avon.org /index.aspx ?NID =713 A high degree of public involvement occurred during the early planning work in 2006 -2009 which formed the foundation of this project (see "Background" above). Such outreach included meetings, workshops, surveys, and open houses to discuss land use, motorized and non - motorized transportation, transit, and parking. Feedback was provided by the community at that time which was consistent with the intent and scope of the Connect Avon Now Project. As a cohesive project package, the Connect Avon Now Project was initially proposed in March 2009. Since last spring, feedback from the public and town council has shaped and refined the project size and scope. Fifteen public Town Council meetings, five focus groups, and one open •house were held - all open to the public. A short (2 -page) information sheet was prepared and distributed at these meetings. A web page on the project was created and a list of Frequently Asked Questions and factual answers was provided. A DVD of the focus group presentation was made available to the public on this web site. The Vail Daily and the Mountaineer have together printed about 6 articles on this project. Town staff conducted an interview on TV Channel 8 to describe the project and answer questions from reporter Tricia Swensen. Town staff have responded to calls and a -mails from the public on this project. All of this public outreach was conducted in order to inform the community, stimulate involvement from local residents and businesses, and glean their input on the project as it has evolved. S. Community Feedback Feedback from the community received thus far suggests that there is majority support for the Connect Avon Now Project. Focus group and open house attendees were surveyed and 80% stated that they felt the project was "scoped well" and 75% stating that the "funding package was appropriate ". On a graduated scale intended to measure opinion, 70% stated that they would either "definitely support" or "probably support" the tax and debt ballot questions associated with this project. Leaders at Avon businesses including Vail Resorts, East -West Partners, the Westin Riverfront, Lakeside Terrace, the Sheraton Mountain Vista, and R.A. Nelson, have openly stated their support. Public agencies including Polarstar Properties and Avon Elementary have also stated support. • Page 9 A minority has stated opposition to the Connect Avon Now Project. Two durable goods merchants within the Avon Business Association (e.g., Ruggs Benedict, Venture Sports) have offered public comment at Town Council meetings. They voiced concern regarding their business's competitive position, in comparison with similar businesses located in nearby unincorporated areas, if Avon's sales tax is increased for this project from 8.40 to 9•.25 %, At least one such merchant has expressed support for the overall project concept and the property, tax component of the Connect Avon Now Project'. The Community Survey conducted in 2008 showed "On behalf of Sheraton Mountain Vista, Lakeside Terrace'Resort'and the Westin Riverfront Mountain Villas I would like to encourage the Council'to push-for a public vote regarding the Connect Avon Now project. I represent and speak on behalf 300+ employees, 6 HOA (couple of thousand owners), and the developer Starwood Vacation Ownership. We feel that this will be beneficial for our community and future growth." - Sheriff Masry, General Manager Sheraton Mountain Vista, Lakeside Terrace Resort, & The -Westin Riverfront Mountain Villas, in an e-mail to Jaime Walker, Avon Community Relations Officer, June 8, 2010, • over 70% support by Avon voters for a sales tax increase "...to fund transit and trails" without being provided with any further details or project definition. Although this survey is two year's old and economic conditions have changed for many residents, it still provides one indication of public opinion. 6. Proposed Ballot Language Proposed ballot language is attached. The two proposed questions are summarized below. 1. Create dedicated revenue sources (aka "Tax Question ") 2. Authorize the Town to issue debt (aka "Debt Question ") Tax Question - The sales tax increment and the mill levy are combined into one questio referred to as The Tax Question. These two taxes can be combined in one questi* because they are for the same single purpose: to fund the Connect Avon Now Project, a transportation project. The Tax Question is explained in more detail under "Financial Plan" above. Debt Question - The Debt Question includes up to $10M for debt authorization. Such authorization is valid for 10 years from the date of voter approval. Revenue generated from passage of the Tax Question would be used to defease debt for the Connect Avon Now Project capital improvements. Passage of the Debt Question would allow the town to use low interest public financing such as general obligation bonds or Build America Bonds. $10M is expected to be sufficient to build transit and trail capital components, and cover the cost for planning and design of the first parking structure. However, because costs for parking can vary considerably (based on number of sites and design), bond counsel recommends that Avon wait to ask voters for authorization to funding construction of parking infrastructure once design -level cost estimates are available (e.g., by 2014). For this reason, the Debt Question limit of $10M does not include funding for construction of a parking garage. The Town will most cost - effectively be able to deliver results in a shorter period of time if both questions are approved by voters in November 2010. This scenario would provide sufficient new revenue to deliver the benefits and services described for the Connect Avon Now Project in a timely and with the lowest financing and implementation costs. If the Tax Question passes but the Debt Question fails, then components in the Connect Avoo Now Project will have to be implemented as fund balance is accumulated. It will be very Page 10 difficult to construct the larger improvements (e.g., grade- separated pedestrian /bike • crossings, parking garages) without use of debt. Inflation will have greater influence. Avon will not compete well for state and federal transportation grants without debt authority or a large fund balance. Current federal incentives like Build America Bonds and economic job - stimulus packages will likely dry up before Avon has accumulated sufficient local match. Consequently, it will take much more time and more local money to deliver the same resulting transportation connectivity than if both questions pass. In this situation, the Town would likely return to the voters in subsequent years to re -ask for debt authorization. If the Debt Question passes but the Tax Question fails, then the project has essentially been rejected by the voters. Although debt authorization is available, no lender or bonding company would be able to issue debt because there would be no assigned revenue to defease it. An analogy to this situation is trying to get a home mortgage when you don't have a job. In this situation, the Town would likely return to the voters in November 2011 to re -ask the Tax Question. 7. Fair Campaign Practices Act A review of the Fair Campaign Practices Act is provided here to assist Council with their efforts to discuss this project with their constituents. Colorado's Fair Campaign Practices Act ( "Act ") is set forth in in Title 1, Article 45 of the Colorado Revised Statutes. The Act restricts the Town from expending Town funds to urge voters to vote for or against a ballot issue once the Town Council takes action to refer the ballot issue to an election (i.e. upon adoption of the proposed Resolution). • Expenditures includes the use of Town equipment as well as Town staff time. CRS §1-45 - 117(b)(I) states, "Nothing in this subsection (1) shall be construed as prohibiting an agency, department, board, division, bureau, commission, or council of the state, or any political subdivision thereof from expending public moneys or making contributions to dispense a factual summary, which shall include arguments both for and against the proposal, on any issue of official concern before the electorate in the jurisdiction. Such summary shall not contain a conclusion or opinion in favor of or against any particular issue." The Town Council may also choose to adopt a Resolution endorsing voter approval of a ballot question and may post such Resolution in the same manner as posting of other resolutions. The Fair Campaign Practices Act does not restrict the Town Council members from expressing their personal opinion nor does the Act restrict Town Council members from the expenditure of personal monies to advocate for or against a ballot measure. Financial Implications: See section above entitled "Financial Plan ". Motion I move to approve Resolution 10 -16, A resolution of the town of Avon authorizing a TABOR election of November 2, 2010, fixing the ballot title and question, and setting forth other details relating thereto for the Connect Avon Now Project. Town Manager Comments Page 11 Attachment A • Chronology of Previous Council Actions 2006- Town Council adopted the Avon Comprehensive Plan. Established the vision, goals, policies, and land use plan which calls for transit - oriented density in the town core. August 2007- Town Council adopted the Avon West Town Center Plan (Design Workshop, 2007). This plan includes provision of a 300 -350 stall parking garage located on or near Main Street. 3uly 2008 - Community survey was conducted which showed strong public support (over 70% of voters surveyed) for funding transit and trails via a sales tax increase. Marchl0, 2009 - The concepts which were later embedded in the Strategic Transit Plan portion of the Transportation Comprehensive Plan were presented to Town Council. This presentation described historic financial performance of the Avon Transit enterprise fund and offered a long- term vision for transit which included the new routes and services. Funding options were also discussed, including sales tax increase, hotel /motel tax increase, property tax increase, and formation of a general improvement district (GID). 3une 23, 2009 - Second presentation on the 2008 Community Survey to Town Council which discussed more details and cross - tabulations regarding the high level of support found for funding expansion of transit and trails via a sales tax increase in that survey. 3uly 14, 2009 - Staff highlighted the specific transit services and a sample list of trail /pedestrian project components that could be funded under a new project initiative. Note that this meeting initially introduced this project as the "Avon Walkable Community Project" but, after some discussion, Council expressed a preference for re- naming the project to Connect Avon Now. Tow* Council directed staff to 1) notify the County Clerk of Avon's intent to have a ballot question in November 2009 and 2) provide more information about options for funding the project. 3uly 28, 2009 - Presentation of Preliminary Financial Modeling for Sales Tax increase to fund transit and trails. Discussion of possible use of hotel /motel tax and /or GID was explored further. August 11, 2009 -Town Council decided to delay plans to place a transit /trails question on the November 2009 ballot in order to allow more time to carefully study the issues. Preference for a November 2010 ballot date was expressed. August 28, 2009 - The 2010 Transit Division Budget was proposed. September 22, 2009 -The Transportation Comprehensive Plan (FHU, 2009) was.adopted by Town Council on this date. This document describes a near -term plan to expand transit bus service to connect the Village at Avon and Beaver Creek Ski Area by modifying routes and frequency to add another 6,000 service hours. The plan includes a list of over $7,000,000 worth of recommended pedestrian, bicycle, and recreational trail capital improvements.. Associated transit capital improvements and fleet replacement needs are also identified in that document. October 20, 2009 - 2010 Budget Retreat, Final Transit Division budget for 2010, focus Transit and Trails funding strategy. Town Council requested addition of public parking into the shared vision for the project. November 10, 2009 - Town Council developed a consensus about the shared vision for Connect Avon Now. This vision included the scope, schedule, and budget implications of transit, trails, and parking project components included in the project. December 8, 2009 - Public finance experts described their experience on similar ballot question They emphasized the important role of Town Council with respect to public outreach. Page Al of 2 3anuary 26, 2010- Staff provided an update on Connect Avon Now, which included a schedule of activities planned for spring 2010. • February 23, 2010- Staff offered a status report on the work being done to assemble factual information for Connect Avon Now. • • March - April, 2010- Five focus group meetings were held with members of the community and town staff to describe and discuss Connect Avon Now. April 13, 2010 - Focus Group feedback presentation to Town Council. In general, most attendees were comfortable with the project scope and financial proposal. April 29, 2010 - A public open house was held on Connect Avon Now. May 25, 2010 - Staff presented draft ballot language on Connect Avon Now. Page A2 of 2 C7 Attachment B Resolution 10 -16 40 :7 Page B -1 TOWN OF AVON, COLORADO • RESOLUTION NO. 10 -16 A RESOLUTION OF THE TOWN OF AVON AUTHORIZING A TABOR ELECTION ON NOVEMBER 2, 2010, FIXING THE BALLOT TITLE AND QUESTION, AND SETTING FORTH OTHER DETAILS RELATING THERETO. WHEREAS, the Town of Avon (the "Town "), is a duly organized and existing home rule municipality of the State of Colorado, created and operating pursuant to Article XX of the Constitution of the State of Colorado and the home rule charter of the Town; and WHEREAS, the members of the Town Council of Town of Avon (the "Council ") have been duly elected and qualified; and WHEREAS, Article X, Section 20 of the Colorado Constitution ( "TABOR ") requires voter approval for any new tax, the creation of any debt and for spending certain moneys above limits established by TABOR; and WHEREAS, TABOR requires the Town to submit ballot issues (as defined in TABOR) to the Town's electors on limited election days before action can be taken on such ballot issues; and WHEREAS, November 2, 2010, is the date of the regular election in the Town and one of the election dates at which ballot issues may be submitted to the eligible electors of the Town pursuant to TABOR; and WHEREAS, §31 -11- 111(2) authorizes the Town to submit any question to the vote of the registered voters 0f the municipality by adoption of a resolution; and WHEREAS, the Council hereby determines that it is necessary to submit to the electors of the Town, at the regular election to be held on November 2, 2010, the questions of (i) increasing the Town sales tax and Town property tax and (2) incurring debt to finance certain multi -modal mobility improvements (the "Project "); and WHEREAS, Section 3.1 of the Avon Home Rule Charter ( "Charter ") states that special and general municipal elections shall be governed by the Colorado Municipal Election Code of 1965 as now existing or hereafter amended or modified, except as otherwise provided in the Charter or as Council may prescribe by ordinance; and WHEREAS, pursuant to §31 -10- 102.7, C.R.S., of the Colorado Municipal Election Code of 1965 and Section 1.12.010 of the Avon Municipal Code, the Town has determined to utilize the requirements of the Uniform Election Code of 1992, Articles 1 to 13 of Title 1, C.R.S. (the "Uniform Election Code "), and to coordinate a regular municipal election with Eagle County; WHEREAS, it is necessary to set forth certain procedures concerning the conduct of the election. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF AVON, COLORADO, AS FOLLOWS: Section 1. All action heretofore taken (not inconsistent with the provisions of this resolution) by the Town and the officers .thereof, directed towards the election and the objects and purposes herein stated is hereby Oatified, approved and confirmed. Page B -1 Section 2. Unless otherwise defined herein, all terms used herein shall have the meanings defined in the Uniform Election Code. Section 3. The regular municipal election of the Town to be held on November 2, 2010, shall be held 0 conducted as a coordinated election to be conducted by the County Clerk and Recorder in accordance with the Uniform Election Code. Section 4. Pursuant to the applicable provisions of the laws of the State of Colorado and the Town Charter, the Town Council hereby submits to the registered electors of the Town, at such regular Town election to be held on November 2, 2010 (the "election ") the ballot issues specified in Section 5 below. Section 5. The following ballot issues, certified in substantially the forms set forth below, are hereby referred to the registered electors of the Town and shall appear on the ballot of the Town of Avon at the election: QUESTION 1 - CONNECT AVON NOW PROJECT: TAX INCREASE SHALL TOWN OF AVON TAXES BE INCREASED $3.5 MILLION ANNUALLY BEGINNING IN 2011 AND CONTINUING THROUGH 2016 AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY IN EACH SUBSEQUENT YEAR FROM THE FOLLOWING TAXES FOR THE PURPOSE OF FINANCING, DESIGNING, CONSTRUCTING, ACQUIRING, OPERATING AND MAINTAINING OF MULTI -MODAL MOBILITY IMPROVEMENTS INCLUDING: • RECREATIONAL TRAILS FOR NON - MOTORIZED USE; • PEDESTRIAN SIDEWALKS; • • BICYCLE PATHS, BRIDGES, CONNECTIONS AND PLAZAS; • MASS TRANSPORTATION FACILITIES, VEHICLES, EQUIPMENT AND SYSTEMS; AND, • PUBLIC PARKING FACILITIES: (1) BY AN INCREASE IN THE TOWN SALES TAX RATE OF 0.85% (EIGHTY -FIVE ONE - HUNDREDTHS OF ONE PERCENT, INCREASING THE TOTAL SALES TAX RATE IMPOSED BY THE TOWN OF AVON FROM 4.0% TO 4.85 %), SUCH CHANGE TO BE IN EFFECT AS OF JANUARY 1, 2011; (2) BY AN INCREASE IN THE TOWN'S MILL LEVY OF UP TO 2.250 MILLS WHICH INCREASE MAY NOT TAKE EFFECT UNTIL JANUARY 1, 2011 AFTER THE DECREASE IN THE AVON METROPOLITAN DISTRICT MILL LEVY UPON PAYMENT OF THE AVON METROPOLITAN DISTRICT'S BONDS, PROVIDED THAT SUCH MILL LEVY RATE MAY BE ADJUSTED IN ANY FISCAL YEAR DOWNWARDS OR UPWARDS BY THE TOWN COUNCIL IN ITS DISCRETION SO LONG AS THE TOTAL MILL LEVY IMPOSED BY THIS SUB - PARAGRAPH (2) DOES NOT EXCEED 2.250 MILLS; (3) BY CONTINUATION OF THE TOWN'S MILL LEVY OF UP TO 2.250 MILLS WHICH • IS CURRENTLY USED TO PAY DEBT SERVICE ON THE TOWN'S GENERAL OBLIGATION BONDS WHICH CONTINUATION MAY NOT TAKE EFFECT UNTIL Page B -2 SUCH BONDS ARE PAID, PROVIDED THAT SUCH MILL LEVY RATE MAY BE ADJUSTED IN ANY FISCAL YEAR DOWNWARDS OR UPWARDS BY THE TOWN • COUNCIL IN ITS DISCRETION SO LONG AS THE TOTAL MILL LEVY IMPOSED BY THIS SUB - PARAGRAPH (3) DOES NOT EXCEED 2.250 MILLS; (4) IF AMENDMENT 60 TO THE COLORADO CONSTITUTION IS PASSED BY THE VOTERS OF THE STATE ON NOVEMBER 2, 2010, THE MAXIMUM DOLLAR AMOUNT WHICH MAY BE COLLECTED BY THE TOWN PURSUANT TO THE MILL LEVIES DESCRIBED ABOVE IN SUB - PARAGRAPHS (2) AND (3) MAY NOT EXCEED $3.5 MILLION IN ANY YEAR. AND SHALL THE TOWN BE AUTHORIZED TO COLLECT, RETAIN AND SPEND ALL REVENUES FROM SUCH TAXES AND THE EARNINGS FROM THE INVESTMENT OF SUCH REVENUES AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? QUESTION 2- CONNECT AVON NOW PROJECT: DEBT INCREASE SHALL TOWN OF AVON DEBT BE INCREASED BY UP TO $10 MILLION DOLLARS WITH A MAXIMUM REPAYMENT COST OF UP TO $21 MILLION AS FOLLOWS: (1) SUCH DEBT MAY BE ISSUED FOR THE PURPOSE OF FINANCING, DESIGNING, CONSTRUCTING, ACQUIRING, OPERATING AND MAINTAINING MULTI -MODAL • MOBILITY IMPROVEMENTS INCLUDING: • RECREATIONAL TRAILS FOR NON - MOTORIZED USE; • PEDESTRIAN SIDEWALKS; • BICYCLE PATHS, BRIDGES, CONNECTIONS AND PLAZAS; • MASS TRANSPORTATION FACILITIES, VEHICLES, EQUIPMENT AND SYSTEMS; AND, • PUBLIC PARKING FACILITIES: AND ANY COSTS NECESSARY OR INCIDENTAL THERETO, INCLUDING ANY COSTS WHICH THE TOWN MAY INCUR IN CONNECTION WITH THE DEBT OR IMPROVEMENTS TO BE FINANCED AND THE COST OF ESTABLISHING RESERVES TO SECURE THE PAYMENT OF SUCH DEBT; (2) SUCH DEBT MAY BE EVIDENCED BY THE ISSUANCE OF BONDS, LOAN AGREEMENTS, INTERGOVERNMENTAL AGREEMENTS OR OTHER MULTIPLE FISCAL YEAR FINANCIAL OBLIGATIONS PAYABLE FROM ANY TOWN REVENUES AS THE TOWN COUNCIL MAY PLEDGE TO THE PAYMENT OF THE DEBT; • (3) SUCH DEBT MAY BE SOLD OR ENTERED INTO FROM TIME TO TIME AT A PRICE ABOVE, BELOW OR EQUAL TO THE PRINCIPAL AMOUNT OF SUCH DEBT, ON SUCH Page B -3 TERMS AND CONDITIONS AS THE TOWN MAY DETERMINE, INCLUDING PROVISIONS FOR REDEMPTION OF THE DEBT PRIOR TO MATURITY WITH OR WITHOUT PAYMENT OF PREMIUM; • AND SHALL THE TOWN BE AUTHORIZED TO ISSUE DEBT TO REFUND THE DEBT AUTHORIZED IN THIS QUESTION, PROVIDED THAT AFTER THE ISSUANCE OF SUCH REFUNDING DEBT THE TOTAL OUTSTANDING PRINCIPAL AMOUNT OF ALL DEBT ISSUED PURSUANT TO THIS QUESTION DOES NOT EXCEED THE MAXIMUM PRINCIPAL AMOUNT SET FORTH ABOVE, AND PROVIDED FURTHER THAT ALL DEBT ISSUED BY THE TOWN PURSUANT TO THIS QUESTION IS ISSUED ON TERMS THAT DO NOT EXCEED THE REPAYMENT COSTS AUTHORIZED IN THIS QUESTION; AND SHALL THE PROCEEDS OF SUCH DEBT AND ANY INVESTMENT INCOME THEREON BE COLLECTED, RETAINED, AND SPENT AS A VOTER APPROVED REVENUE CHANGE UNDER ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION OR ANY OTHER LAW? Section 6. The Town Clerk is hereby appointed as the designated election official of the Town for purposes of performing acts required or permitted by law in connection with the election. Section 7. If a majority of the votes cast on the question to authorize the bonds and the increase of taxes submitted at the election shall be in favor of issuance of the bonds and the increase of taxes as provided in such question, the Town acting through the Council shall be authorized to proceed with the necessary action to issue the bonds and the increase such sales tax in accordance with such question. Any authority to issue the bonds and increase in tax, if conferred by the results of the election, shall be deemed and considered a continuing authority to issue the bonds and increase taxes so authorized at any one time, or from time to time, and neither the partial exercise of the authority so conferred, nor any lapse of time, shall be considered as exhausting limiting the full authority so conferred. #9 Section 8. If a majority of the votes cast on the ballot question authorize the issuance of bonds, the Town intends to issue such bonds in the approximate aggregate principal amount of $10,000,000.00 to pay the costs of the Project, including the reimbursement of certain costs incurred by the Town prior to the execution and delivery of such bonds, upon terms acceptable to the Town, as authorized in an ordinance to be hereafter adopted and to take all further action which is necessary or desirable in connection therewith. The Town shall not use reimbursed moneys for purposes prohibited by Treasury Regulation §1.150 -2(h). This resolution is intended to be a declaration of "official intent" to reimburse expenditures within the meaning of Treasury Regulation § 1.150 -2. Section 9. Pursuant to the Uniform Election Code, any election contest arising out of a ballot issue or ballot question election concerning the order of the ballot or the form or content of the ballot title shall be commenced by petition filed with the proper court within five days after the title of the ballot issue or ballot question is set. Section 10. If any section, paragraph, clause or provision of this resolution shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall in no manner affect any remaining provisions of this resolution. Section 11. All resolutions or parts of resolutions inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any resolution or part of any resolution heretofore repealed. Section 12. The effective date of this resolution shall be immediately upon adoption. • Page B -4 INTRODUCED, PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Avon, Colorado, on June 22, 2010. 49TOWN COUNCIL: C7 • ATTEST: By: Ronald C. Wolfe, Mayor By: Patty McKenny, Town Clerk [seal] APPROVED AS TO FORM: By: Eric Heil, Town Attorney Page B -5 STATE OF COLORADO ) COUNTY OF EAGLE ) SS. • TOWN OF AVON ) certify: I, Patty McKenny„ the Town Clerk of the Town of Avon, Colorado (the "Town "), do hereby 1. The foregoing pages are a true and correct copy of a resolution (the "Resolution ") passed and adopted by the Town Council of the Town (the "Council ") at a regular meeting of the Council held on June 22, 2010. 2. The Resolution was duly introduced, moved and seconded and passed on at the regular meeting of June 22, 2010, by an affirmative vote of a majority of the members of the Council present at the meeting as follows: Name "Yes" "No" Absent Abstain Ronald C. Wolfe, Mayor Brian Sipes, Mayor Pro Tem Richard Carroll David Dantas Kristi Ferraro Amy Phillips Buz Reynolds • 3. The members of the Council were present at the meeting and voted on the passage of such Resolution as set forth above. 4. The Resolution was approved and authenticated by the signature of the Mayor, sealed with the Town seal, attested by the Town Clerk and recorded in the minutes of the Council. 5. There are no bylaws, rules or regulations of the Council which might prohibit the adoption of said Resolution. • Page B -6 6. Notice of the regular meeting of June 22, 2010, in the form attached hereto as Exhibit A • was posted at the Avon Town Hall, 400 Benchmark Road, Avon, Colorado, not less than twenty -four hours prior to the meeting in accordance with law. (SEAL) • • Page B -7 Town Clerk EXHIBIT I (Attach Notice of Meeting) Page B -8 • • •