Loading...
HomeMy WebLinkAbout1998-08-18 Support Documentation Town Council Evening Session VAIL TOWN COUNCIL EVENING MEETING TUESDAY, AUGUST 18, 1998 7:00 P.M. IN TOV COUNCIL CHAMBERS AGENDA NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1 CITIZEN PARTICIPATION. (5 mins.) 2. Ordinance No. 12, Series of 1998, first reading of an Ordinance Steve Thompson Authorizing the Issuance of Town of Vail, Colorado Sales Tax Revenue Refunding Bonds, Series 1998A and Taxable Sales Tax Revenue Refunding Bonds, Series 1998B; Providing the Form, Terms and Conditions of the 1998 Bonds, the Manner and Terms of Issuance, the Manner of Execution, the Method of Payment and the Security Therefor; Pledging Sales Tax Revenues of the Town for the Payment of the 1998 Bonds; Providing Certain Covenants and Other Details and Making Other Provisions Concerning the 1998 Bonds and the Sales Tax Revenues; Ratifying Action Previously Taken and Appertaining Thereto; Repealing all Ordinances in Conflict Herewith. (30 mins.) - ACTION REQUESTED OF COUNCIL: Approve, Deny or Modify Ordinance No. 12, Series of 1998 on first reading. BACKGROUND RATIONALE: The proposed refinancing of a portion of the Town's debt would provide level debt service payments from 1999, until the year 2012. This refinancing would free up additional funds and enable the Town to fund additional capital projects. The interest rate for this transaction will be lower than the current debt service. STAFF RECOMMENDATION: Approve Ordinance No. 12, Series of 1998 on first reading. 3• Discussion of Business License Fee by Vail First Group. (1 hr.) Kaye Ferry 4• Common Ground - next steps. (2 hrs.) Andy Knudtsen ACTION REQUESTED OF COUNCIL: Approve and/or modify the proposed schedule. BACKGROUND RATIONALE: Based on the Council's direction for additional community involvement opportunities to determine density and development parameters in the next steps of the Common Ground process, staff has developed a proposed schedule. It is included in the Council packet and has been mailed directly to all of the individuals who hauQ haan irninkiarl in tha r`nmmnn r.....,,~ Ll-:_ p...w.,v ur. ~v u ua j;?vii i~. focuses on one site at a time andvprovides eight opportunities for involvement. If approved by Council, it will be sent to all property owners in a specific neighborhood where there is a site under c:onsideration 2- 3 weeks before the first meetings begin. 5. Town Manager's Report. (10 mins.) 6. Adjournment - 10:45 p.m. ~ NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BE ON TUESDAY, 8/25/98, BEGINNING AT 2:00 P.M. IN TOV COUNCIL CHAMBERS. THE FOLLOWING VAIL TOWN COUNCIL REGULAR WORK SESSION WILL. BE ON TUESDAY, 9/1/98, BEGINNING AT 2:00 P.M. IN TOV COUNCIL CHAMBERS. . THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL BE ON TUESDAY, 9/1/98, BEGINNING AT 7:00 P.M. IN TOV COUNCIL CHAMBERS. illllll - Sign language interpretation available upon request with 24 hour notification. Please call 479-2332 voice or 479-2356 TDD for information. C:IAGENDA.TC COUNCIL FOLLOW-UP TOPIC QUESTIONS FOLLOW-UP SOLUTIONS ~ 1998 6/9/98 DANCING BEAR CHECK TODD 0: Since we're almost ready to sign off on the W. Vaii We're purchasing a Bench and a wood r;arved Bear to be placed near the Bob Armour roundabout landscaping, what are we doing wlthe $1,100+ Dancing Bear to recognize their contribL!tion and cooperation for the check we received from the Dancing Bear? Let's see a project. There wili also be a plaque plac ~d outlining their contribution. plaque or a bench or something installed to commemorate this donation. 6/9198 BETTY NEAL COMPUTER TRAINING Anne: Please contact Betty to arrange a training session for Betty is on vacation until August 24th. U`Je wili schedule a class when she Kevin Foley interested Council members. returns. The class wiil most likely be held from 12:30 to 1:30 at CMC. Please contact Anne with any interest in attending this class. 7121198 ENTRANCE TO VTRC LARRY: Considering the 4-6 lanes of traffic by the entry, is The "boulevard" cancept for the S frontage road to the entrance of the Ludi Kurc there a way to make the entrance more attractivel parking structure was originally part of tt e remodei in 1989. It was appealing through landscaping, islands, channeling traffic, removed because of budget constraints, The concept was then put on the addressing safety issues, etc.? Can we spruce up our Capitai Improvement list subsequent to that and remained there until 1994 primary entrance to the Village? when it was removed. It is the Town Manager's intention to fun(i this in the Capital Projects bud et. August 13, 1998, Page 1 7/21198 VMS LARRY: Although you had talked about another color/ Public Works is exploring several optior s to reduce the visual impacts. Mike Arnett treatment for the VMSs (something other than orange), Mike One action after the summer season is :o repaint them to a brown or has provided a drawing showing a rock retainer walllshield, green. They are also looking at other iceas i.e. skirting, etc. There will ' as well. Any way to make this look more attractive? continue to be a requirement to place tre orange reflective cones around the sign since they will continue to be a safety hazard in the traveled way ' on the street. 7128198 CROSSWALK TO STREAM PATH LARRY: The appearance of the stamped and stained We wiil investigate the cost to have asplialt stamping and coloring done. Kevin Foley asphalt at the top of Blue Cow Chute is very attractive + Once the cost and availability of a contrr.actor to do this work has been helpful to visitors. Can this also be tlone between the established, we will complete this requeit. southeast exit of the VTRC and the streamwalk over into Ford Park? 7/28198 MUD LOT (LOT A ADJACENT TO RUSSELUANNIENRDITOM/PAM: Kaye Ferry expressed THE HOSPITAL AND LIBRARY) concem that the lot reserved for VRD, library personnei, and Council hospital staff is underutilized, after experiencing difficulties herseff in dropping off an injured person and securing a parking space. It was suggested original agreements w/the hospital be revisited re: the parking lot west of the hospital, as well as the parking structure to the east. Staff will return to Council w/their findings. - August 13, 1998, Page 2 VAIL TOWN COUNCIL EVENING MEETING TUESDAY, AUGUST 18, 1998 7:00 P.M. IN TOV COUNCIL CHAMBERS AGENDA NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1. CITIZEN PARTICIPATION. (5 mins.) 2. Ordinance No. 12, Series of 1998, first reading of an Ordinance Steve Thompson Authorizing the Issuance of Town of Vail, Colorado Sales Tax Revenue Refunding Bonds, Series 1998A and Taxable Sales Tax Revenue Refunding Bonds, Series 199813; Providing the Form, Terms and Conditions of the 1998 Bonds, the Manner and Terms of Issuance, the Manner of Execution, the Method of Payment and the Security Therefor; Pledging Sales Tax Revenues of the Town for the Payment of the 1998 Bonds; Providing Certain Covenants and Other Details and Making Other Provisions Concerning the 1998 Bonds and the Sales Tax Revenues; Ratifying Action Previously Taken and Appertaining Thereto; Repealing all Ordinances in Conflict Herewith. (30 mins.) ACTION REQUESTED OF COUNCIL: Approve, Deny or Modify Ordinance No. 12, Series of 1998 on first reading. BACKGROUND RATIONALE: The proposed refinancing of a portion of the Town's debt would provide level debt service payments from 1999 until the year 2012. This refinancing would free up additional funds and enable the Town to fund additional capital projects. The interest rate for this transaction will be lower than the current debt service. STAFF RECOMMENDATION: Approve Ordinance No. 12, Series of 1998 on first reading. 3. Discussion of Business License Fee by Vail First Group. (1 hr.) Kaye Ferry 4. Common Ground - next steps. (2 hrs.) Andy Knudtsen ACTION REQUESTED OF COUNCIL: Approve and/or modify the proposed schedule. BACKGROUND RATIONALE: Based on the Council's direction for additional community involvement opportunities to determine density and development parameters in the next steps of the Common Ground process, staff has developed a proposed schedule. It is included in the Council packet and has been mailed directly to all of the individuals who have been involved in the Common Ground process up to this point. It focuses on one site at a time and provides eight opportunities for involvement. If approved by Council, it will be sent to all property owners in a specific neighborhood where there is a site under consideration 2- 3 weeks before the first meetings begin. 5. Town Manager's Report. (10 mins.) 6. Adjournment - 10:45 p.m. NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) I I I I I I I THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BE ON TUESDAY, 8/25/98, BEGINNING AT 2:00 P.M. IN TOV COUNCIL CHAMBERS. THE FOLLOWING VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BE ON TUESDAY, 9/1/98, BEGINNING AT 2:00 P.M. IN TOV COUNCIL CHAMBERS. THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL BE ON TUESDAY, 9/1/98, BEGINNING AT 7:00 P.M. IN TOV COUNCIL CHAMBERS. I I I I I I I Sign language interpretation available upon request with 24 hour notification. Please call 479-2332 voice or 479-2356 TDD for information. C:\AGENDA.TC VAIL TOWN COUNCIL WORK SESSION TUESDAY, AUGUST 18, 1998 2:00 P.M. AT TOV COUNCIL CHAMBERS AGENDA NOTE: Times of items are approximate, subject to change, and cannot be relied upon to determine at what time Council will consider an item. 1. Presentation by St. Moritz Exchange Student, Rico Malgiaretta. (10 mins.) 2. Turn It Up Vail Funding Request. (10 mins.) Kaye Ferry 3. Piet Pieters, representing the Vail Recreation District, is requesting the George Ruther Town Council's permission to proceed through the public process. The Town Council's permission is required since the VRD is proposing an expansion to the Dobson Ice Arena. The ice arena is owned by the Town of Vail and leased to the Vail Recreation District. (10 mins.) ACTION REQUESTED OF COUNCIL: Approve, approve with conditions, or deny the request to proceed through the public process. An approval of this request is not an approval of the proposed expansion. BACKGROUND RATIONALE: The VRD is proposing a locker room expansion and the construction of a new gymnastics facility at the Dobson Ice Arena. The plans are currently in the conceptual stages. The expansion and new construction is proposed to occur on the east side of the ice arena. STAFF IRECOMMENDATION: The Community Development Department staff recommends that the Town Council approve the applicant's request to proceed through the public process. 4. Criteria -for the Red Sandstone Lottery. (45 mins.) Andy Knudtsen ACTION REQUESTED OF COUNCIL: provide direction to staff regarding the proposed criteria. BACKGROUND RATIONALE: There are approximately 7 units in the Red Sandstane affordable housing development remaining, after critical Town of Vail employees and Eagle River Water and Sanitation District employees selectecl their units. The Council has generally discussed a lottery process to alloczite these remaining units to the community. The attached staff memo oiutlines the policy issues and proposed criteria for the lottery. Staff will incorporate the responses from Council into the criteria and return August 25 for final approval. 5. Village Core Construction Update. (10 mins.) Larry Grafel 6. Information Update. (10 mins.) 7. Council Reports. (10 mins.) 8. Other. (10 mins.) 9. Adjournment - 3:55 p.m. NOTE UPCOMING MEETING START TIMES BELOW: (ALL TIMES ARE APPROXIMATE AND SUBJECT TO CHANGE) I I I I I I I THE NEXT VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BE ON TUESDAY, 8/25198, BEGINNING AT 2:00 P.M. IN TOV COUNCIL CHAMBERS. THE FOLLOWING VAIL TOWN COUNCIL REGULAR WORK SESSION WILL BE ON TUESDAY, 9/1/98, BEGINNING AT 2:00 P.M. IN TOV COUNCIL CHAMBERS. THE NEXT VAIL TOWN COUNCIL REGULAR EVENING MEETING WILL BE ON TUESDAY, 9/1198, BEGINNING AT 7:00 P.M. IN TOV COUNCIL CHAMBERS. I I I I I I I Sign language interpretation available upon request with 24 hour notification. Please call 479-2332 voice or 479-2356 TDD for information. C:WGENDA.WS 2 ~ ~ t8• k 8 ~'~-u~-~ . turn 1 1 t U . MEMORANDUM To: Vail Town Council From: Turn It Up! Committee Re: TurnIt Up! Funding Request for 1998-1999 and Turn It Up! Mission Statement Date: August 18, 1998 The TIU! Mission Statment is as follows: - To provide our managers and employees with the skills and resources to continually enhance the level of guest service. - To provide the tools which help managers and employees connect with the guest, not just process them. - To define consistent standards for quality service which can be incorporated in to every business througlzout the Vail Valley. In 1997-98 we successfully completed our 2nd year of TIU! We saw 580 frontline employees attend training which inciuded 10 sessions in English and 2 in Spanish. Our plan for this year is to expand on the number of sessions offered. The program this year p.o. box 2135 vail, colorado 81658 will also included an emphasis on dealing with the international guest in anticipati.on of the 1999 championships. Krista Rey from Rey Hospitality in Denver will be our speaker. Last year she was responsible for traaning all of the volunteers for the World Summit in Denver. We also have the Kaltenberg Castle sponsoring our wrap up party so we are looking forward to an exciting program. However, we need your help. Last year the financing came from the council conrirngency fund. This came as a result of the council's urging that we put our Business License Fee request on the back burner for a year. As you know, you will be hearing that presentation tonight. Regardless if VAIL 1ST is successful for next year's budget, the funding for TIU! is needed for this year with the funding required for a November program. Attached you will find a copy of both the 1997 budget and the proposed budget for 1998. 1998 TURN IT UP! BUDGET EXPENSES Advertising 6500.00 Security 450.00 Professional Fees Speaker Fees 8500.00 Legal Fees 1500.00 Clerical Fees 1500.00 11500.00 Reservation System 500.00 Postage & Delivery 1050.00 Supplies Copies 200.00 Printing 2500.00 Miscellaneous 800.00 3500.00 Ballroom Rental 5750.00 Music 750.00 Promotions 1050.00 Meals 1000.00 Miscellaneous 400.00 $32600.00 REVENUES Town of Vail 24000.00 Other Contributions 2000.00 Seminar Receipts 7500.00 $33500.00 ~ _ 1997 TURN IT UP! BUDGET EXPENSES Advertising 4879.14 Security 335.00 Professional Fees Speaker Fees 6000.00 Legal Fees 2118.99 Clerical Fees 885.50 Reservation System 9004.49 Postage & Delivery 339.42 Supplies 815.22 Copies 143.76 Logo Disks 80.00 Flyers 237.45 Printing 1459.60 Misc. 251.64 2172.45 Travel(Speaker Mileage) 198.00 Ballroom Rental 5000.00 Band 750.00 Promotions Overland & Express 617.00 City Market 400.00 Wal-Mart 500.00 Meals 1517.00 Committee Dinner 281.91 Committee Meetings 509.44 Speaker Meals 80.00 871.35 $25882.07 REVENUES Town of Vail 19000.00 Other Contributions 3750.00* lnterest lncome 140.67 Seminar Receipts 6002.50 $28893.17** ~ *2500.00 is being carried as a A/R from WestStar Bank. The check "is in the maii" due to a bookkeeping glitch. In the interim, the VVMA has advanced those funds to TIU! **In kind contributions, if they were able to be calculated, would cause this number to change considerably. -Hotels donated not only space but also refreshments. -Retailers donated prizes and gift certificates. -VA donated ski passes. -The Marriott discounted their facility. -City Market provided food for the party. -New Belgium Brewing provided beer. -The media donated and discounted space. -Thousands of volunteer hours were generously given. In return for some of these contributions, we provided space for their employees "free of charge". Consequently, our revenues under Seminar Receipts are substantially lower than it would have been if all tickets were paid for. For example, the TOV was able to send 190 employees for no charge as the result of its contribution. r ~ • Memorandum To: Town Council From Andy Knudtsen Subject: Red Sandstone Lottery Criteria Date: August 18, 1998 . 1. Introduction There are 18 units under construction at the Red Sandstone Affordable Housing development. The Eagle River Water and Sanitation District control 12 of the units. Ten of these are currently under contract. Of the six the Town of Vail controls, two axe under contract by critical employees. Given the level of demand by District and Town employees, six remain available for the community-wide lottery. The purpose of this worksession is to outline criteria which can be used to allocate the remaining units in a community-wide lottery. In general, staff is recommending a simpler version of the criteria used for the Vail Commons Lottery. The issues listed below highlight the key elements of the proposed criteria and the differences between the original criteria and the set staffbelieves should be used. The proposed schedule for the distribution of the Red Sandstone units begins with applications being available September 1. The deadline for returning applications is October 1, with the proposed lottery to be held November 5. II. Key issues A. Organization Staff recommends that the lottery be structured so that the future home buyers are selected based both on chance and on community priorities. This can be done by requiring applicants to document their track record of employment and/or residency and/or any other criteria the Council believes is a priority for allocating the affordable units. For this lottery, staff recommends that the applicants be required to document years of employment only. With that as the underlying structure, staff recommends that the total pool of applicants be divided into quadrants. The top quadrant would be made up of the 25% of the pool with the longest record of employment, the Town of Vail Page 1 of 5 Red Sandstone Lottery Information n ~ second would be the next 25% and so on. From those tiers, names would be drawn randomly. All names would be drawn, even after the supply of units is gone, as the latter names make up the back-up list. If for any reason a buyer cannot close, staff will look to the back-up list for other buyers. The system described above combines the community priority of local employment with an element of chance. The combination works well together as the drawing takes the pressure off the applicants' documentation of longevity. Ultimately, it does not matter if a potential buyer ma.y , have a month more time in the. Valley than the next person as both will end up in the same tier and have an equal chance of being drawn. However, the system is structured so that the individuals who have ma.de a long-term investment in the community have a better chance at buying one of the units than those who may have moved to Vail more recently. B. Employment andlor Residencv For the Vail Commons lottery, the structure was based on both the longevity of continuous and consecutive employment and residency. Staff recommends that the Red Sandstone lottety be based on employment alone. While the basis for facilitating affordable housing includes both the goal of enhancing the sense of community as well as maintaining our economic viability, the need for employees living within the community is the driving force at this time. Thus staff recommends focusing on the employment track record. Equally as important, staff recommends simplifying the process. After surveying those individuals who picked up a Vail Commons lottery application but did not complete it, staff learned that the complexity of the application was a factor. If the Town only requires documentation regarding employment, applicants will have an easier time completing the application. People are more likely to keep past employment records (i.e. taxes, W2's) than residential records (i.e. former leases). Additionally, the stafftime required to verify documentation will shorten as the material - used to document employment is straight forward and not easily distorted. Staffvigilantly reviewed the documentation for the last lottery, as it was critical to establish credibility with the community in the system used to distribute the homes. C. Definition of Employment In recent discussions with Council, it has been made clear that owners of deed restricted homes should have jobs located within the Town limits. While accommodating a future transfer to a down valley location within the same business, the Council has said that at time of closing, the employee must be working at a local (i.e. with in the Town of Vail) business. The current deed restrictions are written so that in no event can any owner of affordable housing work outside Eagle County. Staff recommends that local. employment also include those jobs physically located on Vail Mountain. Town of Vail Page 2 of 5 Red Sandstone Lottery Information D. Accommodating future buyers employed elsewhere in the Valley The Council may want to include applicants from else where in the County, while providing~an advantage to the local employees. This can be done by weighting continuous and consecutive Iocal employment over the employment record of individuals who have worked elsewhere in the , valley. For example, someone working for 3 years at local business would have a higher ranking . in the total pool of applicants over someone working for 8 years downvaUey, if local employment was weighted by a factor of 3. It is important to keeping mind that if an individual has T break in _ the employment record and has worked other pla.ces (down valley or outside the County) between local jobs, only the most recent stint would count. There are two reasons for including employees from outside the Town: it increases the number of potential buyers and it contributes to regional cooperation in addressing the housing issue. E. Full utilization of the units If the Council is interested in achieving the fullest use of the new homes, the larger units can be separated from the smaller units and distributed in a separate lottery. The underlying goal would . be to ma.ximize the use of the homes, setting aside the larger units for families with children rather single owners who may or may not have roommates. As a point of reference, there are 4 three bedroom units, 12 two bedroom units, and 2 one bedroom units. The Town could establish minimum requirements for family size for the three bedroom units, if this is a priority. F. First time home buyers First time home buyers have been the target market for the Town in the past. There are pros and cons to limiting the development to this group. It precludes potential buyers who live down valley and would like to move back up to Vail and become more involved in the community. However, it eliminates the current home owners who might want to "cash out," selling an existing home which may have appreciated dramatically to purchase a deed restricted unit. G. Interest from Business owners for their ernplovees There has been interest expressed from business owners for the units which the Town has brought on-line. Staff would like to confirm with Council that all of the units are to be sold directly to local employees who will be owner-occupants. The Town anticipates significant business involvement in the development of seasonal units. ?own of Vail Page 3 of 5 Red Sandstone Lottery Information ~ III. Summary of Lottery Standards. Below are lists of standards set for the Vail Commons lottery. While most are clarifications of details, some reflect policies that this Council may want to modify. Staff requests confirmation of these standards or direction as to how to modify them. _ . The requirements for basic eligibility are listed below. Each applicant must comply with each ' standaxd before proceeding. A. You must intend to use the Red Sandstone unit as your prima,ry residence and ma.intain it as your primary residence in the future. B. At time of closing, you must be currently employed at a business located within the Town of Vail which holds a business license. You must be employed an average of 30 hours each week on an annual basis. You must maintain this level of employment for as long as you own your Red 5andstone unit. In the future, your employment location can shift to other locations that are within Eagle County. C. For the 3 bedroom units, you must have a household size of 3 or more persons. For the purposes of determining household size, applicants may include all persons related to you by blood, marriage or adoption. If you plan to include dependents, they must be listed on federal income tax forms and reside in the household at least six months and one day out of every 12 month period of time. There is no minimum household size for the one or two bedroom units. D. You may not own vacant land or residential real estate in Eagle County at the time of application. E. You must be prequalified with a mortgage lender. Additional standards affecting applicants are listed below: 1. The physical place of residence and employment is what counts, not the mailing address. 2. Employment physically located on Vail Mountain shall be considered inside the Town of Vail. 3. Employment requiring work to be completed at locations on-site throughout Eagle County (e.g., construction sites) shall be considered outside the Town of Vail. 4. Seasonal work and part time work shall be counted on a pro-rata basis. Seasonal Town of Vail Page 4 of 5 Red Sandstone Lottery Information ~ . work and part time work alone may not be adequate to meet the 30 hours/week average annual requirement. This type of work may need to augment other employment to meet the minimum eligibility. 5. For the purposes of determining the standing of each applicant, each year of employment reflects one point. For the portion of time in excess of a complete year, the Town will round to the next highest number if the time exceeds six months and one day. If the time is less than six months, the Town will round down. Given that the tiers will group individuals with similar histories, half year increments are not likely to distinguish lottery applicants from one another. . 6. If two individuals are applying jointly, the years of employment andlor residency shall not be combined. The single individual with the longest record of employment and/or residency shall use his or her record for the purposes of deternZining longevity. 7. Persons who own residences located in Vail or Eagle County at the time of the lottery application deadline are not eligible. 8. All claims will be verified by Town of Vail staff. Claims of residence or employment that do not check out or are un-verifiable will not be counted in deternuning your longevity. 9. Once the tiers have been set, the Town will publish the names of all applicants, listing each one alphabetically within each tier. The specific breaks for each tier will also be identified. The Town is putting all applicants on notice that your name will be published, and your standing in the lottery will be apparent to the community. It is imperative that all records of employment and residency be accurately documented in the event your record must be substantiated. Town of Vail Page 5 of5 Red Sandstone Lottery Information Town of Vail Sales Taac Revenue Refunding Bonds Refund All Callable Bonds Existing Proposed Date Debt Debt Difference 1998 1,154,495 1,042,544 111,951 1999 2,540,553 2,533,100 7,453 2000 3,414,468 3,047,846 366,622 2001 3,417,926 3,048,444 369,482 2002 3,416,503 3,042,286 374,217 2003 3,414,448 3,036,579 377,869 2004 3,415,358 3,049,710 365,648 2005 3,398,188 3,048,996 349,192 2006 1,756,888 3,041,874 (1,284,986) 2007 785,056 3,039,652 (2,254,596) 2008 784,659 1,011,309 (226,650) 2009 782,234 338,600 443,634 _ 2010 787,475 336,756 450,719 2011 789,903 338,994 450,909 2012 554,500 340,006 224,494 30,412,654 30,296,696 115,958 1998 to 2005 Cash Flow $ 2,322,434 Present Value: $ 165,653 Prepared by: Peter Zent Government Financial Advisors Vail, Colorado Date: 8/18/'9$ Town of Vail Sales Tax Revenue Refunding Bonds Refund All Eligible Bonds Existing Proposed Date Debt Debt Difference 1998 1,154,495 931,048 223,447 1999 2,540,553 2,118,139 422,414 2000 3,414,468 2,758,769 655,699 2001 3,417,926 2,821,303 596,623 2002 3,416,503 2,820,129 596,374 2003 3,414,448 2,829,134 585,314 2004 3,415,358 2,840,184 575,174 2005 3,398,188 2,607,184 791,004 2006 1,756,888 1,800,121 (43,233) 2007 785,056 1,776,424 (991,368) 2008 784,659 1,782,774 (998,115) 2009 782,234 1,780,253 (998,019) 2010 787,475 1,783,809 (996,334) 2011 789,903 1,782,456 (992,553) 2012 554,500 1,781,006 (1,226,506) 30,412,654 32,212,733 (1,800,079) 1998 to 2005 Cash Flow $ 4,446,049 Present Value: $ 115,302 Prepared by: Peter Zent Government Financial Advisors Vail, Colarado Datr. 8/18/98 ; Town of Vail Sales Tax Revenue Refunding Bonds Level Debt Existing Proposed Date Debt Debt Difference 1998 1,154,495 895,146 259,349 1999 2,540,553 2,329,605 210,948 2000 3,414,468 2,326,770 1,087,698 2001 3,417,926 2,331,235 1,086,691 2002 3,416,503 2,330,988 1,085,515 2003 3,414,448 2,330,888 1,083,560 2004 3,415,358 2,329,588 1,085,770 2005 3,398,188 2,329,738 1,068,450 2006 1,756,888 2,330,513 (573,625) 2007 785,056 2,332,406 (1,547,350) 2008 784,659 2,330,109 (1,545,450) 2009 782,234 2,325,709 (1,543,475) 2010 787,475 2,330,450 (1,542,975) 2011 789,903 2,328,588 (1,538,685) 2012 554,500 2,330,860 (1,776,360) 30,412,654 33,512,593 (3,099,939) 1998 to 2005 Cash Flow $ 6,967,981 Present Value: $ (23,208) Prepared by: Peter Zent Govemment Fin ncial Advisors Vail, Colorado Page 82-•~tIpDally, Frida - SpQCtBCU(ar ParLOramlC ~ • derfulASPEfJ RIDGE Road home p`I ~ ~ above the valiey4 Breck ad_ gourmet kitchen, workroom, -c pu ~I heated driveway & iots more' MI'I Private on emploYee housmg ~ employee, haUsing so that it no By Stephanie SylVester ; Summic Daily News longer reyuires that a pEi'son i BRECKENRIDGE - Following. emPloyed in Summit Counry at least ' a slew of revisions, the Breckenridge 30 hours per week, meet fhat JejEaQ p8Z1a0ylnd~ ~ Town Council adr~pted a bill Tues- reyuirement on an annual basis a ssa~a.ilM~ ~ day that changed the town's devel- LL` ¦ Requiring a'shower and bath- aJIA.~..,s opment code regarding employee tub in employee housing housing. ¦ Permitting the concept of The ing" " changes were elicited after "summer . seasonal hous both town staff and council members between MaY 1- Sept' 1 (so housing speculated the code often awarded is available for summer programs excessive. points. for minimal sponsored by the Breckenridge employee housmg. ` Music Insdtnte and National Reper- ' ~ Under the new ordinance, devel= . tory Orchestra) opments la;ger, :Although the ordinance passed, there was some dissension from the than 5'000 audience.: Former . Breckenridge square feet excludiug• sin-•. Town Coencil member Ken Adatns ~ o praised the ordinance, but voiced ; family gle homes muA . concem that the c.ouncil equated provide commercial;r~ dendal arid industri- . employee housing Multi=family res al uses in the o~dinance.: isaMO1 a!1~+' idences, duplexes and cotomercial . "I think the council needs to developments ate included undet,tlus . move toward the. adoption of an aa~u~~~n~ aM ~ - ` , overall housing strategy, and get a „ provision The devi;lopment code. m Breck- handle .on the big picture, Adams • , enridge involves a'cotnplicated pomt . said. ~ system; whieh awards pc?sitive and Mayor SteYe West cephed that ' negative points to a variety of cate- ; he, too, felt an overall housing strat-. gories, suckas site &uitablhty, land egy was warranted, but the intent'of scaping, parkin$, ete this ordinance was to fix a pressing The' ordinances puf`.m; place a problem in the development code, ' graduated, scale'that allots posittve Chief `Operating O f ficer o f t h e ~ and negative points based on a ca1= Breckenridge ° Ski Resort Bill Q~ Q cula[ed rattQ bekween.the stze:Qf:the,,, ' Jensen lauded the new ordinance: , devefopment and the size of te "I`d like to thank the town coun- # employee hovsing provided. cil and staff for working on this " Developments over 5,000 square ordinance that will help us move feet 'that do not to incorporate forward to build more affordable : employee housing will receive nega- housing," Jensen said. "It's impor- i tive points in the planning process, tant to us that our employeeS live in Before the ordinance was passed, the same commututy~ which tfi~y ' the=town council discussed several work:" ' modifications " to the bill. The , The ordinance { will not be changes included retroactive, so.plans currently in the N Decreasing the size of employ- development process'; will not be ee housing from 400 to 250 square affected. However, pending appli- feet cations will have to concur with the - ~ ¦ Changing the definition ;of new ordinance. ~ . 30 ~ ~ . ~ ~ ~ - ~ I . . ~ ~ , A GATc D cortnuNiTY Fo R ~4NIMHLS 6 - r ' - - ~ / ~,a. 1 y- ~v.4 ~ e.•, ~ - ~ 7'i ~ S~~RESS . ORDINANCE NO. ~ SERIES OF 1998 AN ORDINANCE AUTHORIZING THE ISSUANCE OF TOWN OF VAIL, COLORADO SALES TAX REVENUE REFUNDING BONDS, SERIES 1998A AND TAXABLE SALES TAX REVENUE REFLJNDING BONDS, SERIES 1998B; PROVIDING THE FORM, TERMS AND CONDITIONS OF THE 1998 BONDS, THE MANNER AND TERMS OF ISSUANCE, THE MANNER OF EXECUTION, THE METHOD OF PAYMENT AND THE SECURITY THEREFOR; PLEDGING SALES TAX REVENLJES OF THE TOWN FOR THE PAYMENT OF THE 1998 BONDS; PROVIDING CERTAIN COVENANTS AND OTHER DETAILS AND MAKING OTHER PROVISIONS CONCERNING TI-E 1998 BONDS AND THE SALES TAX REVENUES; RATIFYING ACTION PREVIOUSLY TAKEN AND APPERTAINING THERETO; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH. NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF VAIL, COLORADO: Section 1. Definitions. Terms used in this Ordinance shall have the meanings specified in this Section for all purposes of this Ordinance and of any ordinance amendatory hereof, supplemental hereto or relating hereto, and of any instrument or document appertaining hereto, except where the context by clear implication otherwise requires. All defuutions include the singular and plural and include all genders. Certain terms are parenthetically defined elsewhere herein. Additional Bonds: the one or more series of bonds or other securities or obligations authorized to be issued by the Town pursuant to Section 18 hereof and having a lien on the Piedged Revenues on a parity with the lien of the 1998 Bonds. Bond Fund: the fund by that name created by the 1989 Ordinance and continued in this Ordinance. Bond Insurer: MBIA Insurance Corporation or its successors. Bond Insurance PolicX: the financial guaranty insurance policy issued by the Bond Insurer guaranteeing the payment of principal of and interest on the 1998 Bonds. Bond Reserve Insurance PolicX: any insurance poiicy, surety bond, irrevocable letter of credit or similar instrument deposited in or credited to the Reserve Fund in lieu of or in partial I ~ substiiution for moneys on deposit therein. The issuer providing any such Bond Reserve Insurance Policy shall be an issuer which then is rated in the highest rating category by Moody's Investors Service, Inc., Standard & Poor's Corporation, A.M. Best & Company, or their successors. Bonds: the Outstanding Unrefunded 1992B Bonds, the Outstanding 1998 Bonds and any Additional Bonds. Business Dav: a day on which banks located in the cities in which the principal offices of each of the Paying Agent and the Bond Insurer are not required or authorized to be closed and on which The New York Stock Exchange is not closed. C er: the home rule Charter of the Town, including all amendments thereto prior to the date hereof. Commercial Bank: any depository for public funds permitted by the laws of the State for political subdivisions of the State which has a capital and surplus of $10,000,000 or more, and which is located within the United States. Continuin2 Disclosure Certificate: the Continuing Disclosure Certificate executed by the Town in connection with the 1998 Bonds, which constitutes an undertaking pursuant to Rule 15c2-12 promulgated by the U.S. Securities and Exchange Commission. Escrow Account: the Escrow Account for the Refunding established with the Escrow Bank. Escrow A erg ement: the Escrow Agreement dated as of September 1, 1998 between the Town and the Escrow Bank relating to the Refunding. Escrow Bank: The Bank of Cherry Creek, N.A.. Financial GuarantxAgreement: the Financial Guaranty Agreement between the Town and the Bond Insurer. Fiscal Year: the twelve months commencing on the first day of January of any calendar year and ending on the thirty-first day of December of such calendar year or such other twelve month period as may from time to time be designated by the Town Council as the Fiscal Year of the Town. -2- ~ Governmental Obligations: any of the following which are noncallable and which at the time of investment aze legal investments under the laws of the State for the moneys proposed to be invested therein: (a) direct general obligations of, or obligations the payment of principal of and interest on which are unconditionally guaranteed by, the United States of America; (b) bonds, debentures, notes or other evidences of indebtedness issued by the Export-Import Bank of the United States, the Federal Financing Bank, the Farmers Home Administration, the General Services Administration, the U.S. Maritime Administration, or the U.S. Department of Housing and Urban Development; or (c) evidences of ownership interests in obligations described in paragraph (a) or (b) above. Income Fund: the special fund by that name created by the 1989 Ordinance and continued by this Ordinance. Insurance Paving Agent: Citibank, N.A., or its successors under the Bond Insurance Policy. Letter of Representa.tions: the Letter of Representations between the Town and The Depository Trust Company. Maximum Annual Debt Service Requirement: the maximum amount of a11 required payments of principal and interest on the Bonds which will become due in any Fiscal Year. 1989 Ordinance: Ordinance No. 29, Series of 1989. 1991 Bonds: the Town's Sales Tax Revenue Bonds, Series 1991. 1992B Bonds: the Town's Sa1es Tax Revenue Refunding and Improvement Bonds, Series 1992B. 1998 Bonds: collectively, the Tax-exempt 1998 Bonds and the Taxable 1998 Bonds. Ordinance: this Ordinance of the Town, which provides for the issuance and delivery of the 1998 Bonds. -3- Outstanding: as of any date of calculation, all Bonds theretofore executed, issued and delivered by the Town except: (1) Bonds theretofore cancelled by the Town, Registrar or Paying Agent, or surrendered to the Town, Registrar or Paying Agent for cancellation; (2) Bonds in lieu of or in substitution for which other Bonds shall have been executed, issued and delivered by the Town and authenticated by the Registrar unless proof satisfactory to the Registrar is presented that any such Bonds are duly held by the lawful registered owners thereof; or (3) Bonds deemed to have been paid as provided in Section 20 hereof. Owner or registered owner: the registered owner of any 1998 Bond as shown on the registration records kept by the Registrar. Paying Agent: The Bank of Cherry Creek, N.A., Denver, Colorado, being the agent for the Town for the payment of the 1998 Bonds and interest thereon, or its successors and assigns. Permitted Investment: any investment or deposit shown on the list attached hereto as Exhibit I, to the extent permitted by the Charter and Ordinances of the Town. P rson: any individual, firm, partnership, corporation, company, association, joint- stock association or body politic; and the term includes any trustee, receiver, assignee or other similar representative thereof. Pledged Revenues: (i) the revenues derived from the Pledged Sales Tax; (ii) any additional taxes (other than a general ad valorem tax), funds or revenues which the Town hereafter pledges to the payment of Bonds; (iii) proceeds of the Bonds or other legally available moneys deposited into and held in the Bond Fund and the Reserve Fund; and (iv) interest or investment income on the Income Fund, the Bond Fund and the Reserve Fund; all to the extent that such moneys are at any time required by Section 15 hereof to be deposited into and held in the Income Fund, the Bond Fund and the Reserve Fund. -4- , a Pledged Sales Tax: the proceeds of the Town's current 4% Sa1es Tax, which is also pledged to the payment of the Unrefunded 1992B Bonds. "Pledged Sales Tax" does not include incremental sales taxes which are or may be pledged to the payment of the Bonds pursuant to an urban renewal plan as defined in §31-25-103(a), C.R.S. or a plan of development as defined in §31- 25-802 (6.4) C.R.S. "Pledged Sales Tax" does not include amounts withheld by retailers and vendors to cover their expenses in collecting and remitting the Pledged Sales Tax, and Pledged Sa1es Tax does not include amounts collected by the Town and subsequently determined, pursuant to the applicable Sales Tax Ordinances, to be subject to valid claims for refunds. "Pledged Sa1es Tax" does not include the proceeds of any increase in the Sales Tax which may be approved in the future, unless such increase is expressly pledged to the Bonds by the Town. "Pledged Sales Tax" does include the proceeds derived by the Town from any legally available tax or taxes or fees (other than a general ad valorem tax) which replace or supersede the Pledged Sales Tax, regardless of whether such tax or taxes or fees are imposed by the Town or the State or other political subdivision thereof. Preliminary Official Statement: the Preliminary Official Statement dated August ~ 1998. Purchase Contract: the Purchase Agreement between the Town and the Purchaser dated September 1998. Purc r: Bigelow & Company. Rebate Fund: the fund by that name created by the 1989 Ordinance and continued by this Ordinance. Refunded 1991 Bonds: the outstanding 1991 Bonds. Refunded 1992B Bonds: the following portions of the 1992B Bonds maturing or subject to mandatory redemption on the following dates: Date Principal Amount June 1, 1999 $ 50,000 June 1, 2000 950,000 June 1, 2001 1,005,000 June 1, 2002 1,065,000 June 1, 2003 1,125,000 June 1, 2004 1,195,000 June 1, 2005 1,255,000 -5- ~ R in : the refunding and defeasance of the Refunded 1991 Bonds and the Refunded 1992B Bonds with the proceeds of the 1998 Bonds. Re ig; strar: The Bank of Cherry Creek, N.A., Denver, Colorado, being the agent for the Town for the registration, transfer and exchange of the 1998 Bonds, or its successors. Re istrar Agreement: the Registrar Agreement between the Town and the Registrar dated as of September 1, 1998. Regular Record Date: the fifteenth day of the calendar month next preceding each interest payment date for the 1998 Bonds (other than a special interest payment date hereafter fixed for the payment of defaulted interest). Reserve Fund: the fund by that name created by the 1989 Ordinance and continued by this Ordinance. Reserve Fund Requirement: an amount equal to 10% of the principal amount of the Outstanding Bonds plus an amount equal to all investment earnings on the Reserve Fund; provided that the Reserve Fund Requirement shall not exceed the Maximum Annual Debt Service Requirement. ale ax: the tax upon the sale and use of goods and services which is currently being levied by the Town pursuant to the Sales Tax Ordinances and any future or amended tax levied by the Town as a sales and use tax. Sales TaY Ordinances: the ordinances adopted by the Town Council of the Town for the purpose of adopting and enforcing the Sales Tax and which are in effect on the date of this Ordinance and as later amended or supplemented. Special Record Date: a special date fixed to detertnine the names and addresses of registered owners for purposes of paying interest on a special interest payment date for the payment of defaulted interest, all as further provided in Section 6 hereof. State: the State of Colorado. Taxable 1998 Bonds: the Town's Taxable Sa1es Tax Revenue Refunding Bonds, Series 1998B. Tax-exemnt 1998 Bonds: the Town's Sales Tax Revenue Refunding Bonds, Series 1998A. -6- Tax Code: the Internal Revenue Code of 1986, as amended to the date of delivery of the 1998 Bonds, and any regulations promulgated thereunder. Town: the Town of Vail, Colorado. Town Council: the Town Council of the Town or any successor in functions thereto. Trust Bank: a Commercial Bank which is authorized to exercise and is exercising trust powers. Unrefunded 1992B Bonds: the Outstanding 1992B Bonds other than the Refunded 1992B Bonds. Section 2. Recitals. A. The Town is a municipal corporation duly organized and existing under the Town's Charter adopted pursuant to Article XX of the Constitution of the State of Colorado. B. Section 10.6 of the Charter permits the Town to issue securities made payable solely out of the proceeds of any sales taxes without an election. C. The Town imposes a Sales Tax pursuant to Section 11.1 of the Charter and the Sales Tax Ordinances. D. Article X of the Town Charter authorizes the Town Council (the "Council") to issue refunding bonds without an election. E. The Council has deternuned and hereby declares that it is in the Town's best interest to refund and defease the Refunded 1991 Bonds and the Refunded 1992B Bonds (collectively, the "Refunded Bonds"). F. Except for the Unrefunded 1992B Bonds and bonds or obligations which have been paid or defeased as of the date of issuance of the 1998 Bonds, the Town has never pledged the Sales Tax to the payment of any bonds or for any purpose. Simultaneously with the issuance of the 1998 Bonds, the Refunded Bonds will be refunded and defeased. The Pledged Sales Tax may now be pledged (with a lien which is on a parity with the Unrefunded 1992B Bonds) lawfully and irrevocably for the payment of the 1998 Bonds. G. The Town has received a proposal from the Purchaser for the purchase of the 1998 Bonds for the purpose of defraying in whole or in part the costs of the Refunding. -7- H. There have been presented to the Council the proposed forms of the following documents: the Purchase Contract; the Escrow Agreement; the Letter of Representations; the Financial Guaranty Agreement; the Registrar Agreement; the Continuing Disclosure Certificate; and the Preliminary Official Sta.tement. I. The Town Council desires to cause the 1998 Bonds to be issued, to authorize and direct the application of the proceeds thereof as set forth herein, and to provide security for the payment thereof, all in the manner set forth below. Section 3. Ratification. All actions heretofore taken (not inconsistent with the provisions of this Ordinance) by the Town Council and other officers of the Town in the imposition and collection of the Sales Tax, the Refunding, and selling and issuing the 1998 Bonds for those purposes are ratified, approved and confirmed. Section 4. Authorization of Refunding. The Refunding hereby is authorized. Section 5. Authorization of the 1998 Bonds. There hereby aze authorized to be issued two issues of fully registered sales tax revenue securities of the Town, to be designated "Town of Vail, Colorado, Sales Tax Revenue Refunding Bonds, Series 1998A" in the aggregate principal amount of $ , and "Town of Vail, Colorado, Taxable Sales Tax Revenue Refunding Bonds, Series 1998B" in the aggregate principal amount of $ , to be payable and collectible, both as to principal and interest, from the Pledged Revenues. Section 6. 1998 Bond Details. The 1998 Bonds sha11 be issued in fully registered form (i.e., registered as to both principal and interest) initially registered in the name of Cede & Co. as nominee for The Depository Trust Company, shall be dated as of September 1, 1998, shall be issued in the denomination of $5,000 or any integral multiple thereof (provided that no 1998 Bond of a series may be in a denomination which exceeds the principal coming due on any maturity date for such series, and no individual 1998 Bond of a series will be issued for more than one maturity of such series) and shall be numbered in such manner as the Registrar may determine. The 1998 Bonds shall bear interest from their dated date until maturity at the rates per annum shown below, payable semiannually on June 1 and December 1 in each year, commencing on December 1, 1998, except that any 1998 Bond which is reissued upon transfer, exchange or other replacement sha11 bear -8- ~ interest from the most recent interest payment date to which interest has been paid or duly provided for, or if no interest has been paid, from the date of the 1998 Bonds. The 1998A Bonds shall mature on the dates and in the amounts designated below, as follows: Interest Maturity Principal Rate Date Amount (Per Annum) The 1998B Bonds shall mature on the dates and in the amounts designated below, as follows: Interest Maturity Principal Ra.te Date Amoun~ (Per Annum) The principal of any 1998 Bond shall be payable to the registered owner thereof as shown on the registration records kept by the Registrar, upon maturity thereof and upon presentation and surrender at the Paying Agent. If any 1998 Bond sha11 not be paid upon such presentation and surrender at or after maturity, it shall continue to draw interest at the same interest rate borne by said 1998 Bond until the principal thereof is paid in full. Payment of interest on any 1998 Bond shall be made by check or draft mailed by the Paying Agent, on or before each interest payment date (or, if such interest payment date is not a business day, on or before the next succeeding business day), to the registered owner thereof at the address shown on the registration records kept by the Registrar at the close of business on the Regulaz Record Date for such interest payment date; but any such -9- interest not so timely paid or duly provided for shall cease to be payable to the person who is the registered owner thereof at the close of business on the Regular Record Date and shall be payable to the person who is the registered owner thereof at the close of business on a Special Record Date for the payment of any such defaulted interest. Such Special Record Date shall be fixed by the Registrar whenever moneys become available for payment of the defaulted interest, and notice of the Special Record Date sha11 be given to the registered owners of the 1998 Bonds not less than ten days prior to the Special Record Date by first-class mail to each such registered owner as shown on the Registrar's registration records on a date selected by the Registrar, stating the date of the Special Record Date and the date f xed for the payment of such defaulted interest. T'he Paying Agent may make payments of interest on any 1998 Bond by such alternative means as may be mutually agreed to between the owner of such 1998 Bond and the Paying Agent (provided, however, that the Town shall not be required to make funds available to the Paying Agent prior to the interest payment dates stated in this Section). All such payments shall be made in lawful money of the United States of America without deduction for the services of the Paying Agent or Registrar. Section 7. Prior Redemption. A. 1998 Bonds maturing on or before December 1, 2008 are not subject to prior redemption. 1998 Bonds maturing on and after December 1, 2009 shall be subject to prior redemption, at the option of the Town, in whole, or in part, in integral multiples of $5,000, from such maturities as are selected by the Town, and if less than a11 of the Bonds of a maturity are to be redeemed, by lot within a maturity in such manner as the Registrar may determine, on December 1, 2008, or on any date thereafter, at a redemption price equal to the principal amount so redeemed plus accrued interest to the redemption date. There shall be no optional prior redemption of 1998 Bonds unless a11 amounts owing to the Bond Insurer under the Financial Guaranty Agreement or any other document have been paid in full. B. In the case of 1998 Bonds of a denomination larger than $5,000, a portion of such 1998 Bond ($5,000 or any integral multiple thereof) may be redeemed, in which case the Registrar shall, without charge to the owner of such 1998 Bond, authenticate and issue a replacement 1998 Bond or Bonds for the unredeemed portion thereof. -10- C. The Finance Director of the Town sha11(unless waived by the Registrar) give written instructions concerning any prior redemption to the Registrar at least 60 days prior to such redemption date. Notice of redemption shall be given by the Registrar in the name of the Town, by sending a copy of such notice by certified, first-class postage prepaid mail, not more than 60 nor less than 30 days prior to the redemption date, to the Purchaser, and to each registered owner of any 1998 Bond, all or a portion of which is called for prior redemption, at his address as it last appears on the registration records kept by the Registraz. Failure to give such notice by mailing to the registered owner of any 1998 Bond or to the Purchaser of any defect therein, shall not affect the validity of the proceedings for the redemption of any other 1998 Bonds. Such notice shall identify the 1998 Bonds or portions thereof to be redeemed (if less than all are to be redeemed) and the date fixed for redemption, and shall further state that on such redemption date the principal amount thereof will become due and payable at the Paying Agent, and that from and after such date interest will cease to accrue. Accrued interest to the redemption date will be paid by check or draft mailed to the registered owner (or by alternative means if so agreed to by the Paying Agent and the registered owner). Notice having been given in the manner provided above, the 1998 Bond or Bonds so called for redemption shall become due and payable on the redemption date so designated; and upon presentation and surrender thereof at the Paying Agent, the Town will pay the principal of the 1998 Bond or Bonds so called for redemption. Section 8. Snecial Obli at~ ions. All of the 1998 Bonds, together with the interest accruing thereon, and any payments due to the Bond Insurer under the Financial Guaranty Agreement, shall be payable and collectible solely out of the Pledged Revenues, which are hereby irrevocably so pledged; the owner or owners of the 1998 Bonds and the Bond Insurer may not look to any general or other fund for the payment of principal and interest on the 1998 Bonds or payments under the Financial Guaranty Agreement, except the designated special funds pledged therefor; and the 1998 Bonds and the Financial Guaranty Agreement shall not constitute an indebtedness nor a debt within the meaning of any applicable charter, constitutional or statutory provision or limitation; nor sha11 they be considered or held to be general obligations of the Town. Section 9. Form of 1998 Bonds and Registration Panel. The 1998 Bonds and the registration panel sha11 be substantially as follows (provided that any portion of the 1998 Bond text -11- may, with appropriate references, be printed on the back of the 1998 Bonds), with such omissions, insertions, endorsements and variations as to any recitals of fact or other provisions as may be required by the circumstances, be required or permitted by this Ordinance, or be consistent with this Ordinance and necessary or appropriate to conform to the rules and requirements of any governmental authority or any usage or requirement of law with respect thereto: -12- ~ (Form of Bond) Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC"), to the Town or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTI4ERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF EAGLE TOWN OF VAIL, COLORADO [TAXABLE] SALES TAX REVENUE REFUNDING BOND SERIES 1998[A][B] NO. R- $ INTEREST RATE MATURITY DATE DATED DATE CUSIP September 1, 1998 REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS The Town of Vail, in the County of Eagle and State of Colorado (the "Town"), for value received, promises to pay to the registered owner specified above, or registered assigns, solely from the special funds provided therefor, the principal amount specified above, on the maturity date specified above (unless called for earlier redemption), and to pay from said sources interest thereon on June 1 and December 1 of each year, commencing on December 1, 1998, the interest rate per -13- annum specified above, until the principal sum is paid or payment has been provided therefor. This bond will bear interest from the most recent interest payment date to which interest has been paid or provided for, or, if no interest has been paid, from the date of this bond. This bond bears interest, matures, is payable, is subject to redemption and is transferable as provided in the Bond Ordinance. To the extent not defined herein, terms used in this bond shall have the same meanings as set forth in the Bond Ordinance. The principal of this bond is payable upon presentation and surrender hereof to the principal office of the Paying Agent. Interest on this bond will be paid on or before each interest payment date (or, if such interest payment date is not a business day, on or before the next succeeding business day), by check or draft mailed to the person in whose name this bond is registered in the registration records of the Town maintained by the Registrar at the principal office and at the address appearing thereon at the close of business on the Regular Record Date. The Bonds of which this bond is one are all of like date, tenor, and effect except as to number, principal amount, interest rate, date of maturity, and optional prior redemption and are issued by the Town Council of the Town of Vail, in the County of Eagle and State of Colorado, for the purpose of refunding certain bonds of the Town under the authority of and in full conformity with the Town's home rule charter, the constitution and Iaws of the State of Colorado, and pursuant to the duly adopted Bond Ordinance. The principal of and interest on this bond are payable only from the proceeds of the Pledged Revenues, a11 as more particularly set forth in the Bond Ordinance. This bond constitutes a first and prior lien, but not necessarily an exclusively fixst lien, on the Pledged Revenues. It is further hereby recited, certified, and warranted that all the requirements of law have been complied with fully by the proper officers of the Town in issuing this bond. The 1998 Bonds are authorized for the purpose of defraying wholly or in part the costs of the Refunding (as defined in the Bond Ordinance), and for the payment of costs and expenses incidental thereto and to the issuance of the 1998 Bonds, all under the authority of and in full conformity with the Constitution of the State of Colorado and the Town Charter and pursuant to the Bond Ordinance duly adopted, published and made a law of the Town, a11 prior to the issuance of this bond. -14- The 1998 Bonds do not constitute a debt or an indebtedness of the Town within the meaning of any applicable charter, constitutional or statutory provision or limitation, shall not be considered or held to be a general obligation of the Town, and are payable from, and constitute a pledge of and an irrevocable lien (but not an exclusive lien) on, all of the proceeds to be derived by the Town from the Pledged Revenues. The 1998 Bonds constitute a pledge of, and an irrevocable lien (but not an exclusive lien) on all of the Pledged Revenues, on a parity with the Town's unrefunded Sales Tax Revenue Refunding and Improvement Bonds, Series 1992B. The 1998 Bonds are equitably and ratably secured by such lien on the Pledged Sales Tax. Reference is made to the Bond Ordinance for the provisions, among others, with respect to the custody and application of the proceeds of the 1998 Bonds, the receipt and disposition of the Pledged Revenues, the nature and extent of the security, the terms and conditions under which additional bonds payable from the Pledged Revenues may be issued, the rights, duties and obligations of the Town, the rights of the owners of the 1998 Bonds, the events of default and remedies, the circumstances under which any 1998 Bond is no longer Outstanding, the ability to amend the Bond Ordinance; and by the acceptance of this bond the owner hereof assents to all provisions of the Bond Ordinance. The principal of, premium if any, and the interest on this bond sha11 be paid, and this bond is transferable, free from and without regard to any equities between the Town and the original or any intermediate owner hereof or any setoffs or cross-claims. This Bond sha11 not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the certificate of authentication hereon shall have been manually signed by the Bond Registrar. IN TESTIMONY WHEREOF, the Town Council of the Town of Vail has caused this bond to be signed and executed in its name with a manual or facsimile signature of the Mayor of the -15- Town, and to be signed, executed and attested with a manual or facsimile signature of the Town Clerk, with a manual or facsimile impression of the seal of the Town affixed hereto, ail as of the date specified above. (Manual or Facsimile Siiinature) Mayor (MANUAL OR FACSIMILE SEAL) Attest: (Manual or Facsimile Si ng ature) _ Town Clerk (End of Form of Bond) -16- (Form of Registrar's Certificate of Authentication) This is one of the Bonds described in the within-mentioned Bond Ordinance, and this Bond has been duly registered on the registration records kept by the undersigned as Registrar for such Bonds. THE BANK OF CHERRY CREEK, N.A., as Registrar Date of Authentication By: and Registration: Authorized Officer or Employee (End of Form of Registrar's Certificate of Authentication) -17- STATEMENT OF INSURANCE MBIA Insurance Corporation (the "Insurer") has issued a policy containing the following provisions, such policy being on file at The Bank of Cherry Creek, N.A., in Denver, Colorado. The Insurer, in consideration of the payment of the premium and subject to the terms of this policy, hereby unconditionally and irrevocably guarantees to any owner, as hereinafter defined, of the following described obligations, the full and complete payment required to be made by or on behalf of the Issuer to The Bank of Cherry Creek, N.A. or its successor (the "Paying Agent") of an amount equal to (i) the principal of (either at the stated maturity or by any advancement of maturity pursuant to a mandatory sinking fund payment) and interest on, the Obligations (as that term is defined below) as such payments shall become due but shall not be so paid (except that in the event of any acceleration of the due date of such principal by reason of mandatory or optional redemption or acceleration resulting from default or otherwise, other than any advancement of maturity pursuant to a mandatory sinking fund payment, the payments guaranteed hereby sha11 be made in such amounts and at such times as such payments of principal would have been due had there not been any such acceleration); and (ii) the reimbursement of any such payment which is subsequently recovered from any owner pursuant to a final judgment by a court of competent jurisdiction that such payment constitutes an avoidable preference to such owner within the meaning of any applicable bankruptcy law. The amounts referred to in clauses (i) and (ii) of the preceding sentence shall be referred to herein collectively as the "Insured Amounts." "Obligations" shall mean: the Town of Vail, Colorado, Sales Tax Revenue Refunding Bonds, Series 1998A and the Town of Vail, Colorado, Taxable Sales Tax Revenue Refunding Bonds, Series 1998B. Upon receipt of telephonic or telegraphic notice, such notice subsequently conf'umed in writing by registered or certified mail, or upon receipt of written notice by registered or certified mail, by the Insurer from the Paying Agent or any owner of an Obligation the payment of any Insured Amount for which is then due, that such required payment has not been made, the Insurer on the due date of such payment or within one business day after receipt of notice of such nonpayment, whichever is later, will make a deposit of funds, in an account with Citibank, N.A., in New York, New York, or its successor, sufficient for the payment of any such Insured Amounts which are then due. Upon presentment and surrender of such Obligations or presentment of such other proof of ownership of the Obligations, together with any appropriate instruments of assignment to evidence the assignment of the Insured Amounts due on the Obligations as are paid by the Insurer, and appropriate instruments to effect the appointrnent of the Insurer as agent for such owners of the Obligations in any legal proceeding related to payment of Insured Amounts, such instruments being in a form satisfactory to Citibank, N.A., Citibank, N.A. shall disburse to such owners or the Paying Agent payment of the Insured Amounts due on such Obligations, less any amount held by the Paying Agent for the payment of such Insured Amounts and legally available therefor. This policy does not insure against loss of any prepayment premium which may at any time be payable with respect to any Obligation. -18- As used herein, the term "owner" shall mean the registered owner of any Obligation as indicated in the records maintained by the Paying Agent, the Issuer, or any designee of the Issuer for such purpose. The term owner shall not include the Issuer or any party whose agreement with the Issuer constitutes the underlying security for the Obligations. Any service of process on the Insurer may be made to the Insurer at its offices located at 113 King Street, Armonk, New York 10504. This policy is non-cancelable for any reason. The premium on this policy is not refundable for any reason including the payment prior to maturity of the Obligations. MBIA INSURANCE CORPORATION -19- ~ (Form of Prepayment Panel) The following installments of principal(or portion thereof) of this bond have been prepaid in accordance with the terms of the Bond Ordinance authorizing the issuance of this bond. Signature of Date of Principal Authorized PrepaYment Prepai Representative of the De on sitor,y (End of Form of Prepayment Panel) -20- (Form of Assignment) For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and hereby irrevocably constitutes and appoints attorney, to transfer the same on the records of the Registraz, with full power of substitution in the premises. Dated: Signature Guaranteed: Address of transferee: Social Security or other tax identification number of transferee: NOTE: The signature to this Assignment must correspond with the name as written on the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. EXCHANGE OR TRANSFER FEES MAY BE CHARGED (End of Form of Assignment) -21- ~ STATE OF COLORADO ) ) COUNTY OF EAGLE ) SS. LEGAL OPINION CERTIFICATE ) TOWN OF VAIL ) I, the undersigned Town Clerk of the Town of Vail, in the County of Eagle and State of Colorado, do hereby certify that the following approving legal opinion of Sherman & Howard L.L.C., Attorneys at Law, Denver, Colorado, to wit: (Attorneys' approving opinion inserted in submargins, including complimentary closing and "/s/ Sherman and Howard L.L.C.") is a true, perfect, and complete copy of a manually executed and dated copy thereof on file in the records of the Town; that manually executed and dated copies of the opinion were forwarded to a representative of the original purchaser of the bonds of the series of which this bond is one; and that the opinion was dated and issued as of the date of the delivery of and payment for such bonds. IN WITNESS WHEREOF, I have caused to be hereunto affixed a facsimile of my signaiure. Town Clerk -22- Section 10. NegotiabilitX. Subject to the registration provisions hereof, the 1998 Bonds shall be fully negotiable and sha11 have all the qualities of negotiable paper, and the owner or owners thereof shall possess all rights enjoyed by the holders or owners of negotiable instruments under the provisions of the Uniform Commercial Code-Investment Securities. The principal of and interest on the 1998 Bonds shall be paid, and the 1998 Bonds shall be transferable, free from and without regard to any equities between the Town and the original or any intermediate owner of any 1998 Bonds or any setofFs or cross-claims. Section 11. Execution. The 1998 Bonds shall be executed in the name and on behalf of the Town by the signature of the Mayor, shall be sealed with a manual or facsimile impression of the seal of the Town and attested by the signature of the Town Clerk. Each 1998 Bond shall be authenticated by the manual signature of an authorized officer or employee of the Registrar as provided below. The signatures of the Mayor and the Town Clerk may be by manual or facsimile signature. The 1998 Bonds bearing the manual or facsimile signatures of the officers in office at the time of the authorization thereof shall be the valid and binding obligations of the Town (subject to the requirement of authentication by the Registrar as provided below), notwithstanding that before the delivery thereof and payrnent therefor or before the issuance of the 1998 Bonds upon transfer or exchange, any or a11 of the persons whose manual or facsimile signatures appear thereon shall have ceased to fill their respective offices. The Mayor and the Town Clerk sha11, by the execution of a signature certificate pertaining to the 1998 Bonds, adopt as and for their respective signatures any facsimiles thereof appearing on the 1998 Bonds. At the time of the execution of the signature certificate, the Mayor and the Town Clerk may each adopt as and for his or her facsimile signature the facsimile signature of his or her predecessor in office in the event that such facsimile signature appears upon any of the 1998 Bonds. No 1998 Bond shall be valid or obligatory for any purpose unless the certificate of authentication, substantially in the form provided above, has been duly manually executed by the Registrar. The Registrar's certificate of authentication shall be deemed to have been duly executed by the Registrar if manually signed by an authorized officer or employee of the Registrar, but it sha11 not be necessary that the same officer or employee sign the certificate of authentication on all of the -23- 1998 Bonds issued hereunder. By authenticating any of the 1998 Bonds initially delivered pursuant to this Ordinance, the Registrar shall be deemed to have assented to the provisions of this Ordinance. Section 12. Registration. Transfer and Exchangg. A. Except as provided in Section 13, records for the registration and transfer of the 1998 Bonds shall be kept by the Registrar, which is hereby appointed by the Town as registrar (i.e., transfer agent) for the 1998 Bonds. Upon the surrender for transfer of any 1998 Bond at the Registrar, duly endorsed for transfer or accompanied by an assignment duly executed by the registered owner or his attorney duly authorized in writing, the Registrar sha11 enter such transfer on the registration records and shall authenticate and deliver in the name of the transferee or transferees a new 1998 Bond or Bonds of the same series, of a like aggregate principal amount and of the same maturity, bearing a number or numbers not previously assigned. 1998 Bonds may be exchanged at the Registraz for an equal aggregate principal amount of 1998 Bonds of the series and the same maturity of other authorized denominations. The Registrar shall authenticate and deliver a 1998 Bond or Bonds which the registered owner making the exchange is entitled to receive, bearing a number or numbers not previously assigned. The Registrar may impose reasonable charges in connection with such exchanges and transfers of 1998 Bonds, which charges (as well as any tax or other governmental charge required to be paid with respect to such exchange or transfer) shall be paid by the registered owner requesting such exchange or transfer. B. Except as provided in Section 13, the Registrar shall not be required to transfer or exchange (1) any 1998 Bond or portion thereof during a period beginning at the opening of business 15 days before the day of the mailing of notice of prior redemption as herein provided and ending at the close of business on the day of such mailing, or (2) any 1998 Bond or portion thereof after the mailing of notice calling such 1998 Bond or any portion thereof for prior redemption, except for the unredeemed portion of the 1998 Bonds being redeemed in part. C. The person in whose name any 1998 Bond sha11 be registered on the registration records kept by the Registrar shall be deemed and regazded as the absolute owner thereof for the purpose of making payment thereof and for all other purposes; except as may be otherwise provided in Section 6 hereof with respect to payment of interest; and, subject to such exception, payment of or on account of either principal or interest on any 1998 Bond shall be made only to or -24- ~ upon the written order of the registered owner thereof or his legal representative, but such registration may be changed upon transfer of such 1998 Bond in the manner and subject to the conditions and limitations provided herein. All such payments shall be valid and effectual to discharge the liability upon such 1998 Bond to the extent of the sum or sums so paid. D. If any 1998 Bond shall be lost, stolen, destroyed or mutilated, the Registrar shall, upon receipt of such evidence, information or indemnity relating thereto as it and the Town may reasonably require, authenticate and deliver a replacement 1998 Bond or Bonds of a like aggregate principal amount and of the same series and maturity, bearing a number or numbers not previously assigned. If such lost, stolen, destroyed, or mutilated 1998 Bond shall have matured or is about to become due and payable, the Registrar may direct the Paying Agent to pay such 1998 Bond in lieu of replacement. E. The officers of the Town are authorized to deliver to the Registrar fully executed but unauthenticated 1998 Bonds in such quantities as may be convenient to be held in custody by the Registrar pending use as herein provided. F. Whenever any 1998 Bond sha11 be surrendered to the Paying Agent upon payment thereof, or to the Registrar for transfer, exchange or replacement as provided herein, such 1998 Bond shall be promptly cancelled by the Paying Agent or Registrar, and counterparts of a certificate of such cancellation shall be furnished by the Paying Agent or Registrar to the Town. Section 13. Book Entrv. A. Notwithstanding any contrary provision of this Ordinance, the 1998 Bonds shall initially be evidenced by one 1998 Bond for each series and maturity in which the 1998 Bonds mature in denominations equal to the aggregate principal amount of the 1998 Bonds maturing for that series and maturity. Such initially delivered 1998 Bonds shall be registered in the name of "Cede & Co." as nominee for The Depository Trust Company, the securities depository for the 1998 Bonds. The 1998 Bonds may not thereafter be transferred or exchanged except: (1) to any successor of The Depository Trust Company or its nominee, which successor must be both a"clearing corporation" as defined in Section 4-8-102(3), Colorado Revised Statutes and a qualified and registered -25- "clearing agency" under Section 17A of the Securities Exchange Act of 1934, as amended; or (2) upon the resignation of The Depository Trust Company or a successor or new depository under clause (1) or this clause (2) of this paragraph (a), or a determination by the Council that The Depository Trust Company or such successor or new depository is no longer able to carry out its functions, and the designation by the Council of another depository institution acceptable to the Couneil and to the depository then holding the 1998 Bonds, which new depository institution must be both a"clearing corporation" as defined in Section 4-8-102(3), Colorado Revised Statutes and a qualified and registered "clearing agency" under Section 17A of the Securities Exchange Act of 1934, as amended, to carry out the functions of The Depository Trust Company or such successor new depository; or (3) upon the resignation of The Depository Trust Company or a successor or new depository under clause (1) or clause (2) of this paragraph (a), or a determination of the Council that The Depository Trust Company or such successor or new depository is no longer able to carry out its functions, and the failure by the Council, after reasonable investigation, to locate another qualified depository institution under clause (2) to carry out such depository functions. B. In the case of a transfer to a successor of T'he Depository Trust Company or its nominee as referred to in clause (1) of paragraph (a) hereof or designation of a new depository pursuant to clause (2) of paragraph (a) hereof, upon receipt of the Outstanding 1998 Bonds by the Bond Registrar, together with written instructions for transfer satisfactory to the Bond Registrar, a new 1998 Bond for each series and maturity of the 1998 Bonds then Outstanding sha11 be issued to such successor or new depository, as the case may be, or its nominee, as is specified in such written transfer instructions. In the case of a resignation or determination under clause (3) of paragraph (a) hereof and the failure after reasonable investigation to locate another qualified depository institution for the 1998 Bonds as provided in clause (3) of paragraph (a) hereof, and upon receipt of the Outstanding 1998 Bonds by the Bond Registrar, together with written instructions for transfer satisfactory to the Bond Registrar, new 1998 Bonds shall be issued in the denominations of -26- $5,000 or any integral multiple thereof, as provided in and subject to the limitations of Section 12 hereof, registered in the names of such persons, and in such authorized denominations as are requested in such written transfer instructions; however, the Bond Registrar shall not be required to deliver such new 1998 Bonds within a period of less than 60 days from the date of receipt of such written transfer instructions. C. The Council, the Bond Registrar and the Paying Agent sha11 be entitled to treat the registered owner of any 1998 Bond as the absolute owner thereof for all purposes hereof and any applicable laws, notwithstanding any notice to the contrary received by any or all of them and the Council, the Bond Registrar and the Paying Agent shall have no responsibility for transmitting payments to the beneficial owners of the 1998 Bonds held by The Depository Trust Company or any successor or new depository named pursuant to paragraph (a) hereof. D. The Council, the Bond Registrar and the Paying Agent sha11 endeavor to cooperate with The Depository Trust Company or any successor or new depository named pursuant to clause (1) or (2) of paragraph (a) hereof in effectuating payment of the principal amount of the 1998 Bonds upon maturity or prior redemption by arranging for payment in such a manner that funds representing such payments are available to the depository on the date they are due. Section 14. Delivery of 1998 Bonds and Disnosition of Proceeds. When the 1998 Bonds have been duly executed by appropriate Town officers and authenticated by the Registrar, the Town sha11 cause the 1998 Bonds to be delivered to the Purchaser on receipt of the agreed purchase price. The 1998 Bonds shall be delivered in such denominations as the Purchaser shall direct (but subject to the provisions of Sections 12 and 13 hereo fl; and the Registrar shall initially register the 1998 Bonds in such name or names as the Purchaser shall direct. The proceeds of the sale of the Tax-Exempt 1998 Bonds, including without limitation the accrued interest thereon, sha11 be deposited promptly by the Town and shall be accounted for in the following manner and are hereby pledged therefor, but the Purchaser or any subsequent Owner in no manner shall be responsible for the application or disposal by the Town or any of its officers of any of the funds derived from the sale of the Tax-Exempt 1998 Bonds: -27- (i) All accrued interest, if any, received in respect of the Tax-Exempt 1998 Bonds shall be credited to the Bond Fund to be applied to the payment of the Tax-Exempt 1998 Bonds. (ii) An amount, together with the proceeds of the sale of the Taxable 1998 Bonds deposited to the Escrow Fund as provided below and other available funds of the Town, sufficient to establish any initial cash balance rema.ining uninvested and to buy Governmental Obligations to effect the Refunding shall be deposited to the Escrow Account. (iii) All remaining proceeds of the Tax-exempt 1998 Bonds shall be used, together with any other available moneys therefor, to pay a portion of the premium for the Bond Insurance Policy and costs incidental to the issuance of the 1998 Bonds. Any such amounts remaining after payment of all such costs shall be deposited in the Bond Fund and applied to the payment of the principal of and interest on the Tax-exempt 1998 Bonds. The proceeds of the sale of the Taxable 1998 Bonds, including without limitation the accrued interest thereon, shall be deposited promptly by the Town and shall be accounted for in the following manner and are hereby pledged therefor, but the Purchaser or any subsequent Owner in no manner shall be responsible for the application or disposal by the Town or any of its officers of any of the funds derived from the sale of the Taxable 1998 Bonds: (i) All accrued interest, if any, received in respect of the Taxable 1998 Bonds shall be credited to the Bond Fund to be applied to the payment of the Taxable 1998 Bonds. (ii) An amount, together with the proceeds of the sale of the Tax- Exempt 1998 Bonds deposited to the Escrow Fund as provided below and other available funds of the Town, sufficient to establish any initial cash balance remaining uninvested and to buy Governmental Obligations to effect the Refunding shall be deposited to the Escrow Account. (iii) All remaining proceeds of the Taxable 1998 Bonds shall be used, together with any other available moneys therefor, to pay a portion of the -28- ~ premium for the Bond Insurance Policy and costs incidental to the issuance of the 1998 Bonds. Any such amounts remaining after payment of all such costs shall be deposited in the Bond Fund and applied to the payment of the principal of and interest on the Taxable 1998 Bonds. Section 15. Use of Moneys in Income Fund. Subject to Section 17, so long as any Bonds shall be Outstanding, either as to principal or interest, the Pledged Revenues sha11, upon receipt by the Town, be deposited in a special and separate account, heretofore created and established by the 1989 Ordinance and continued by this Ordinance, known as the "Town of Vail Income Fund." The following payments shall be made from the Income Fund: A. Bond Fund. First, there shall be credited from the Income Fund to a fund created by the 1989 Ordinance and known as the "Town of Vail, Sales Tax Bond Fund" the following amounts: 1. Interest Pavments. Monthly to the Bond Fund an amount in equal monthly installments necessary, together with any moneys therein and available therefor, to pay the interest due and payable on the Outstanding Bonds on the next succeeding interest payment date. 2. Principal Payments. Monthly to the Bond Fund an amount in equal monthly installments necessary, together with any moneys therein and available therefor, to pay the principal and redemption premium, if any, due and payable on the Outstanding Bonds on the next succeeding principal payment date. If prior to any interest payment date or principal payment date there has been accumulated in the Bond Fund the entire amount necessary to pay the next maturing installment of interest or principal, or both, the payment required in subparagraph (1) or (2) (whichever is applicable) of this paragraph, may be appropriately reduced; but the required monthly amounts again shall be so credited to such account commencing on such interest payment date or principal payment date. The moneys in the Bond Fund shall be used only to pay the principal of, prior redemption premium if any, and interest on the Bonds as the same becomes due. B. Reserve Fund. Second, except as provided below, from any moneys remaining in the Income Fund there shall be credited monthly to a separate account created by the -29- 1989 Ordinance and continued by this Ordinance known as the "Town of Vail Sales Tax Revenue Bonds Reserve Fund" an amount, if any, which is necessary to maintain the Reserve Fund as a continuing reserve in an amount not less than the Reserve Fund Requirement or to pay the issuer of any Bond Reserve Insurance Policy any amounts owing to such issuer under the terms of the Bond Reserve Insurance Policy. In determining the amounts required to be deposited as provided above, the Town shall receive credit for any investment earnings on the deposit in the Reserve Fund. Investment earnings on deposits in the Reserve Fund shall remain in the Reserve Fund until the amount on deposit equals the Maximum Annual Debt Service Requirement. No credit need be made to the Reserve Fund so long as the moneys and/or a Bond Reserve Insurance Policy therein equal the Reserve Fund Requirement (regardless of the source of such accumulations). The Reserve Fund Requirement shall be accumulated and maintained as a continuing reserve to be used, except as provided in subsections C and E of this Section and Section 21 hereof, only to prevent deficiencies in the payment of the principal of and the interest on the Bonds resulting from the failure to credit to the Bond Fund sufficient funds to pay said principal and interest as the same accrue or to pay the issuer of any Bond Reserve Insurance Policy any amounts owing to such issuer under the terms of the Bond Reserve Insurance Policy. The Reserve Fund Requirement shall be calculated upon (i) any principal payment, whether at stated maturity or upon redemption, (ii) the issuance of Additional Bonds, or (iii) the defeasance of all or a portion of the Bonds. In lieu of all or a portion of the moneys required to be deposited in the Reserve Fund by this Ordinance, the Town may at any time or from time to time (but only with the prior written consent of the Bond Insurer if the provider is other than the Bond Insurer) deposit a Bond Reserve Insurance Policy in the Reserve Fund in full or partial satisfaction of the Reserve Fund Requirement. Any such Bond Reserve Insurance Policy shall be payable on any date on which moneys will be required to be withctrawn from the Reserve Fund as provided herein. Upon deposit of any Bond Reserve Insurance Policy in the Reserve Fund, the Town may transfer moneys equal to the amount payable under the Bond Reserve Insurance Policy from the Reserve Fund and apply such moneys to any lawful purpose. If the tax covenant contained in Section 20.K. of this Ordinance does not permit the use of proceeds of any series of Bonds for a full funding of the Reserve Fund in the amount of the -30- Reserve Fund Requirement, the maximum amount of proceeds of such series of Bonds which may be deposited to the Reserve Fund pursuant to Section 20.K. shall be deposited to the Reserve Fund upon the issuance of such series of Bonds and Pledged Revenues sha11 be deposited to the Reserve Fund monthly so that not later than twelve calendar months after the date of issuance of such series of Bonds the amount on deposit in the Reserve Fund shall equal the Reserve Fund Requirement. C. Termination Upon Denosits to Maturitv or Redemntion Date. No payment need be made into the Bond Fund, the Reserve Fund, or both, if the amount in the Bond Fund and the amount in the Reserve Fund total a sum at least equal to the entire amount of the Outstanding Bonds, both as to principal and interest to their respective maturities, or to any redemption date on which the Town shall have exercised its option to redeem the Bonds then Outstanding and thereafter maturing, including any prior redemption premiums then due, and both accrued and not accrued, in which case moneys in the Bond Fund and Reserve Fund in an amount at least equal to such principal and interest requirements shall be used solely to pay such as the same accrue, and any moneys in excess thereof in the two Funds may be withdrawn and used for any lawful purpose. D. Defra,ying Delinquencies in Bond and Reserve Funds. If on any required monthly payment date the Town shall for any reason fail to pay into the Bond Fund the full amount above stipulated, then an amount shall be paid into the Bond Fund on such date from the Reserve Fund equal to the difference between the amount paid and the full amount so stipulated. Any cash on deposit in the Reserve Fund shall be transferred to the Bond Fund to cover such a deficiency prior to the transfer of funds drawn under the Bond Reserve Insurance Policy. If the Reserve Fund contains a Bond Reserve Insurance Policy from a provider other than the Bond Insurer and a Bond Reserve Insurance Policy provided by the Bond Insurer, any draw shall be on a pro-rata basis from both such Policies. After such a draw any available Pledged Revenues, after the payments required by paragraph A of this Section, shall be used first to repay the Bond Insurer to reinstate the Bond Reserve Insurance Policy and then to replenish cash in the Reserve Fund. The cash so used shall be replaced in the Reserve Fund from the first Pledged Revenues received that are not required to be otherwise applied by this Section, but excluding any payments required for any subordinate obligations; provided, however, that an amount equal to the amount withdrawn from the Reserve Fund shall be deposited by the Town in the Reserve Fund no later than twelve months from the date -31- of such withdrawal. If at any time the Town sha11 for any reason fail to pay into the Reserve Fund the full amount above stipulated from the Pledged Revenues, the difference between the amount paid and the amount so stipulated shall in a like manner be paid therein from the first Pledged Revenues thereafter received not required to be applied otherwise by this Section, but excluding any payments required for any subordinate obligations. The moneys in the Bond Fund and in the Reserve Fund sha11 be used solely for the purpose of paying the principal and any redemption premium of and the interest on the Bonds, except that moneys in the Reserve Fund shall be used to pay the issuer of any Bond Reserve Insurance Policy any amounts owing to such issuer under the terms of the Bond Reserve Insurance Policy; provided, however, that any moneys at any time in excess of the Reserve Fund Requirement calculated with respect to the Bonds in the Reserve Fund may be withdrawn therefrom and used for any lawful purpose; and provided, further, that any moneys in the Bond Fund and in the Reserve Fund in excess of accrued and unaccrued principal and interest requirements to the respective maturities of the Outstanding Bonds may be used as provided in Paragraphs G and H of this Section. E. Rebate Fund. Third, there shall be deposited in a special account created by the 1989 Ordinance and continued by this Ordinance known as the "Town of Vail Sa1es Taac Revenue Bonds Rebate Fund" amounts required by Section 148(f) of the Tax Code to be held until such time as any required rebate payment is made. Amounts in the Rebate Fund shall be used for the purpose of making the payments to the United States required by Section 148( fl of the Tax Code. Any amounts in excess of those required to be on deposit therein by Section 148( fl of the Tax Code shall be withdrawn therefrom and deposited into the Income Fund. Funds in the Rebate Fund shall not be subject to the lien created by this Ordinance to the extent such amounts are required to be paid to the United States Treasury. The Town may create separate accounts in the Rebate Fund in connection with the issuance of Additional Bonds. F. Interest on Bond Insurance Policv Draws. After the payments required by A, B and E of this Section, the Pledged Revenues shall be used to pay interest on amounts advanced under any Bond Reserve Insurance Policy. G. Payment for Subordinate Obli at,g ions. After the payments required by Paragraphs A, B, E, and F of this Section, the Pledged Revenues shall be used by the Town for the -32- ~ payment of interest on and principal of any obligations secured by Pledged Revenues subordinate to the lien of the Bonds and on a parity with or subordinate to the lien of the Financial Guaranty Agreement hereafter authorized to be issued, including reasonable reserves therefor. H. Use of Remaining Revenues. After making the payments required to be made by this Section, any remaining Pledged Revenues may be used for any lawful purpose. Nothing in this Ordinance shall prevent the Town from withdrawing from the Income Fund amounts collected by the Town and subsequently determined, pursuant to the applicable Sales Tax Ordinances, to be subject to valid claims for refunds. Section 16. General Administration of Funds. The funds designated in Sections 14 and 15 hereof sha11 be administered as follows subject to the limitations stated in Section 20.K. hereof A. Budget and Appropriation of Funds. The sums provided to make the payments specified in Section 15 hereof are hereby appropriated for said purposes, and said amounts for each year shall be included in the annual budget and the appropriation ordinance or measures to be adopted or passed by the Town Council in each year respectively while any of the 1998 Bonds, either as to principal or interest, aze Outstanding and unpaid. No provision of any constitution, statute, charter, ordinance, resolution or other order or measure enacted after the issuance of the 1998 Bonds shall in any manner be construed as limiting or impairing the obligation of the Town to keep and perform the covenants contained in this Ordinance so long as any of the 1998 Bonds remain Outstanding and unpaid. Nothing herein shall prohibit the Town Council, at its sole option, from appropriating and applying other funds of the Town legally available for such purpose to the Bond Fund or Reserve Fund for the purpose of providing for the payment of the principal of and interest on the 1998 Bonds. B. Places and Times of Deposits. Each of the special funds created in Section 15 hereof shall be maintained in a Commercial Bank as a book account kept sepazate and apart from a11 other accounts or funds of the Town as trust accounts solely for the purposes herein designated therefor. For purposes of investment of moneys, nothing herein prevents the commingling of moneys accounted for in any two or more such book accounts pertaining to the Pledged Revenues or to such funds and any other funds of the Town to be established or continued under this -33- ~ Ordinance. Such book account shall be continuously secured to the fullest extent required by the laws of the State for the securing of public funds and shall be irrevocable and not withdrawable by anyone for any purpose other than the respective designated purposes of such funds or accounts. Each periodic payment shall be credited to the proper book account not later than the date therefor herein designated, except that when any such date shall be a Saturday, a Sunday or a legal holiday, then such payment shall be made on or before the next preceding business day. C. Investment of Funds. Any moneys in any fund established or continued by Section 15 of this Ordinance may be invested or reinvested in any Permitted Investment. Securities or obligations purchased as such an investment shall either be subject to redemption at any time at face value by the holder thereof at the option of such holder, or shall mature at such time or times as shall most nearly coincide with the expected need for moneys from the fund in question. Securities or obligations so purchased as an investment of moneys in any such fund sha11 be deemed at all times to be a part of the applicable fund. The Town shall present for redemption or sale on the prevailing market any securities or obligations so purchased as an investment of moneys in a given fund whenever it shall be necessary to do so in order to provide moneys to meet any required payment or transfer from such fund. The Town shall have no obligation to make any investment or reinvestment hereunder, unless any moneys on hand and accounted for in any one account exceed $5,000 and at least $5,000 therein will not be needed for a period of not less than 60 days. In such event the Town shall invest or reinvest not less than substantially all of the amount which will not be needed during such 60 day period, except for any moneys on deposit in an interest bearing account in a Commercial Bank, without regard to whether such moneys are evidenced by a certificate of deposit or otherwise, pursuant to this Section 16.C. and Section 16.E. hereof; but the Town is not required to invest, or so to invest in such a manner, any moneys accounted for hereunder if any such inveshnent would contravene the covenant concerning arbitrage in Section 20.K. hereof. D. No Liability for Losses Incurred in Performing Terms of Ordinance. Neither the Town nor any officer of the Town shall be liable or responsible for any loss resulting from any investment or reinvestment made in accordance with this Ordinance. E. Character of Funds. The moneys in any fund or account herein authorized shall consist of lawful money of the United States or investments permitted by Section 16.C. hereof -34- ~ or both such money and such investments. Moneys deposited in a demand or time deposit account in or evidenced by a certificate of deposit of a Commercial Bank pursuant to Sections 163. and I6.C. hereof, appropriately secured according to the laws of the State, sha11 be deemed lawfW money of the United States. Section 17. Lien on Pled,ized Revenues. The 1998 Bonds constitute a pledge of, and an irrevocable first lien (but not an exclusive first lien) on all of the Pledged Revenues on a parity with the lien of the Unrefunded 1992B Bonds. The 1998 Bonds are equitably and ratably secured by a lien on the Pledged Revenues. Section 18. Additional Bonds. A. Limitations Upon Issuance of Additional Bonds. Nothing in this Ordinance shall be construed in such a manner as to prevent the issuance by the Town of additional bonds or other obligations, payable from and constituting a lien upon the Pledged Revenues on a parity with the lien of the 1998 Bonds (the "Additional Bonds"). Such Additional Bonds may be payable solely from Pledged Revenues or they may be payable from Pledged Revenues and another revenue or fund of the Town ("Additional Pledged Revenues"). Regardless of whether payable solely from Pledged Revenues or from Pledged Revenues and Additional Pledged Revenues, such bonds or other obligations may be issued only if for the Fiscal Year immediately preceding the issuance of any Additional Bonds, the amount of Pledged Sales Tax Revenues in such Fiscal Year equalled or exceeded 150% of the Maximum Annual Debt Service Requirement on the Bonds (including the Additional Bonds proposed to be issued). For the purpose of satisfying the aforementioned 150% test, any tax, now existing or hereafter imposed, which legally becomes a part of the Pledged Sales Tax Revenues during the Fiscal Year preceding the issuance of Additional Bonds, or any tax which is to legally become a part of the Pledged Sa1es Tax Revenues immediately prior to the issuance of Additional Bonds, or any increase in the rate of any tax which is a part of the Pledged Sa1es Tax Revenues which increase is imposed during the Fiscal Year preceding the issuance of Additional Bonds or any such increase which is to be imposed immediately prior to the issuance of Additional Bonds can be considered for its estimated effect on the amount of the Pledged Sales Tax Revenues as if such tax or increase had been in effect for the Fiscal Year immediately preceding the issuance -35- ~ of such Additional Bonds. Any tax which is no longer in effect at the time of issuance of the Additional Bonds shall not be considered for purposes of satisfying such tests. If the ordinance authorizing a series of Additional Bonds will pledge Additional Pledged Revenues to the Bonds, the estimated effect of the amount of such Additional Pledged Revenues may be considered as if such revenues had been received for the last Fiscal Year immediately preceding the issuance of such Additional Bonds. B. Certificate of Revenues. A written certification by a certified public accountant who is not an employee of the Town that the requirements of Pazagraph A of this Section have been met shall be conclusively presumed to be accurate in determining the right of the Town to authorize, issue, sell and deliver said Additional Bonds on a parity with the 1998 Bonds herein authorized. C. Subordinate Obligations Permitted. Nothing in this Ordinance shall be construed in such a manner as to prevent the issuance by the Town of additional obligations payable from and constituting a lien upon the Pledged Revenues subordinate or junior to the lien of the 1998 Bonds. D. Superior Obligations Prohibited. Nothing in this Ordinance sha11 be construed so as to permit the Town to hereafter issue obligations payable from the Pledged Revenues having a lien thereon prior or superior to the 1998 Bonds. Section 19. Refunding Obliiiations. A. enerall . If at any time after the 1998 Bonds, or any part thereof, sha11 have been issued and remain Outstanding, the Town shall find it desirable to refund any Outstanding obligations payable from the Pledged Revenues, said obligations, or any part thereof, may be refunded, subject to the provisions of Paragraph B of this Section, if (1) the obligations to be refunded, at the time of their required surrender for payment, shall then mature or shall then be callable for prior redemption at the Town's option upon proper call, or (2) the owners of the obligations to be refunded and the Bond Insurer, if the Bond Insurer insured such obligations, consent to such surrender and payment. B. Protection of Obligations Not Refunded. Any refunding obligations payable from the Pledged Revenues shall be issued with such details as the Town Council may provide, so -36- long as there is no impairment of any contractual obligation imposed upon the Town by any proceedings authorizing the issuance of any unrefunded portion of obligations payable from the Pledged Revenues; but so long as any 1998 Bonds are Outstanding, refunding obligations payable from the Pledged Revenues may be issued on a parity with the unrefunded Bonds only if: 1. Prior Consent. The Town first receives the consent of the owner or owners of the unrefunded Bonds and the Bond Insurer, if the Bond Insurer insured such obligations; or 2. Re uirements Not Increased. The refunding obligations do not increase by more than $25,000, for any Fiscal Year prior to and including the last maturity date of any unrefunded Bonds, the aggregate principal and interest requirements evidenced by such refunding obligations and by any Outstanding Bonds not refunded, and the lien of any refunding parity obligations on the Pledged Revenues is not raised to a higher priority than the lien thereon of any obligations thereby refunded; or 3. Earnings Test. The refunding obligations are issued in compliance with Paragraphs A and B of Section 18 hereof. Section 20. Protective Covenants. The Town hereby additionally covenants and agrees with each and every owner of the 1998 Bonds that: A. Use of 1998 Bond Proceeds. The Town will proceed with the Refunding without delay and with due diligence. B. Pavment of 1998 Bonds. The Town will promptly pay the principal of and interest on every 1998 Bond issued hereunder and secured hereby on the dates and in the manner specified herein and in said 1998 Bonds according to the true intent and meaning hereof. Such principal and interest is payable solely from the Pledged Revenues. C. Amendment of Certain Ordinances; Duty to Impose Sales Tax•, Impairment of Contract. The Sales Tax Ordinances are in full force and effect and have not been repealed or amended. The Town will not repeal or amend said Sales Tax Ordinances in any manner which would diminish the proceeds of the Sales Tax by an amount which would materially adversely affect therights of the owners of the Bonds. The Town agrees that any law, ordinance or resolution of the Town in any manner affecting the Pledged Revenues or the Bonds, or otherwise appertaining thereto, -37- shall not be repealed or otherwise directly or indirectly modified in such manner as to materially adversely affect any Bonds Outstanding, unless the required consent is obtained, all as provided in Section 35 of this Ordinance. Notwithstanding any other provision of this Section or this Ordinance, the Town shall retain the right to make changes, without any consent of Bond owners or the Bond Insurer, in the Sa1es Tax Ordinances, or any ordinance supplemental thereto or in substitution therefor, concerning the use of proceeds of the Pledged Sales Tax remaining after the current requirements of all ordinances authorizing bonas or other securities payable from the Pledged Sales Tax, or any portion thereof, have been met; or concerning changes in applicability, exemptions, administration, collection, or enforcement of the Sa1es Tax, if such changes do not materially adversely affect the security for the Bonds; but the Town shall not reduce the current rate of the Pledged Sales Tax without the consent of the owners of 66 percent in aggregate principal amount of the then Outstanding 1998 Bonds or the Bond Insurer (whichever is appropriate), as provided in Section 35 of this Ordinance. The foregoing covenants are subject to compliance by the Town with orders of courts of competent jurisdiction concerning the validity, constitutionality or collection of such tax revenues, any legislation of the United States or the State or any regulation or other action taken by the federal government, any State agency or any political subdivision of the State pursuant to such legislation, in the exercise of the police power thereof for the public welfare, which legislation, regulation or action applies to the Town as a Colorado home rule city and limits or otherwise inhibits the amount of such tax revenues due to the Town. All of the Pledged Revenues resulting from the imposition and collection of the Sales Tax shall be subject to the payment of the principal of, interest on, and redemption premium, if any, of all securities payable from the Pledged Revenues, including reserves therefor, as provided herein or in any instrument supplemental or amendatory hereof. D. Defense of Legalitv of Pledged Revenues. There is not pending or threatened any suit, action or proceeding against or affecting the Town before or by any court, arbitrator, administrative agency or other governmental authority which affects the validity or legality of this Ordinance, or the Sales Tax Ordinances or the imposition and collection of the Sales Tax, any of the -38- Town's obligations under this Ordinance or any of the transactions contemplated by this Ordinance or the Sales Tax Ordinances. The Town sha11, to the extent pernutted by law, defend the validity and legality of this Ordinance, the Sales Tax and the Sales Tax Ordinances against all claims, suits and proceedings which would diminish or impair the Pledged Revenues. Furthermore, the Town sha11 amend from time to time the provisions of any ordinance or resolution of the Town, as necessary to prevent impairment of the Pledged Revenues as required to meet the principal of and interest on the 1998 Bonds when due. E. Further Assurances. At any and a11 times the Town shall, so far as it may be authorized by law, pass, make, do, execute, acknowledge, deliver and file or record all and every such further instruments, acts, deeds, conveyances, assignments, transfers, other documents and assurances as may be necessary or desirable for the better assuring, conveying, granting, assigning and confirming a11 and singular the rights, the Pledged Revenues and other funds and accounts hereby pledged or assigned, or intended so to be, or which the Town may hereafter become bound to pledge or to assign, or as may be reasonable and required to carry out the purposes of this Ordinance. The Town, acting by and through its officers, or otherwise, shall at a11 times, to the extent permitted by law, defend, preserve and protect the pledge of said Pledged Revenues and other funds and accounts pledged hereunder and all the rights of every owner of any of the 1998 Bonds against all claims and demands of all Persons whomsoever. F. Conditions Precedent. Upon the issuance of any of the 1998 Bonds, all conditions, acts and things required by the Constitution or laws of the United States, the Constitution or laws of the State, the Charter or this Ordinance, to exist, to have happened, and to have been performed precedent to or in the issuance of the 1998 Bonds shall exist, have happened and have been performed, and the 1998 Bonds, together with all other obligations of the Town, sha11 not contravene any debt or other limitation prescribed by the Constitution or laws of the United States, the Constitution or laws of the State or the Charter. G. Records. So long as any of the 1998 Bonds remain Outstanding, proper books of record and account will be kept by the Town, separate and apart from a11 other records and -39- accounts, showing complete and correct entries of all transactions relating to the Pledged Revenues and the funds created or continued by this Ordinance. H. Audi . T'he Town further agrees that it will, within 140 days following the close of each fiscal year, cause an audit of such books and accounts to be made by a certified public accountant, who is not an employee of the Town, showing the revenues and expenditures of the Pledged Revenues. The Town agrees to allow the owner of any of the 1998 Bonds to review and copy such audits and reports, at the Town's offices, at his request. Copies of such audits and reports will be furnished to Bond Insurer and the Purchaser. I. Performing Duties. The Town will faithfully and punctually perform all duties with respect to the Pledged Revenues required by the Charter and the Constitution and laws of the State and the ordinances and resolutions of the Town, including but not limited to the proper collection and enforcement of the Sales Taxes and the segregation of the Pledged Revenues and their application to the respective funds herein designated. J. Other Liens. As of the date of issuance of the 1998 Bonds and after the Refunding, other than the Unrefunded 1992B Bonds, there aze no liens or encumbrances of any nature whatsoever on or against any of the Pledged Revenues. K. Tax Covenant. The Town covenants for the benefit of the Registered Owners of the Taac-exempt 1998 Bonds that it will not take any action or omit to take any action with respect to the Tax-exempt 1998 Bonds, the proceeds thereof, any other funds of the Town or any facilities re-financed with the proceeds of the Tax-exempt 1998 Bonds if such action or omission (i) would cause the interest on the Tax-exempt 1998 Bonds to lose its exclusion from gross income for federal income tax purposes under Section 103 of the Tax Code, (ii) would cause interest on the Tax-exempt 1998 Bonds to lose its exclusion from alternative minimum taxable income as defined in Section 55(b)(2) of the Tax Code except to the extent such interest is required to be included in adjusted current earnings adjustment applicable to corporations under Section 56 of the Tax Code in calculating corporate alternative minimum taxable income, or (iii) would cause interest on the Tax-exempt 1998 Bonds to lose its exclusion from Colorado taxable income or Colorado alternative minimum taxable income under present Colorado law. The foregoing covenant shall remain in full force and effect notwithstanding the payment in full or defeasance of the Tax-exempt 1998 Bonds -40- ) f until the date on which all obligations of the Town in fulfilling the above covenant under the Tax Code and Colorado law have been met. The Town hereby designates the Tax-exempt 1998 Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Tax Code. L. Town's Existence. The Town will maintain its corporate identity and existence so long as any of the 1998 Bonds remain Outstanding, unless another political subdivision by operation of law succeeds to the duties, privileges, powers, liabilities, disabilities, immunities and rights of the Town and is obligated by law to receive and distribute the Pledged Revenues in place of the Town, without materially adversely affecting the privileges and rights of any owner of any Outstanding 1998 Bonds. M. Performance of Duties. The Town will faithfully and punctually perform or cause to be performed all duties with respect to the Pledged Revenues, the proper segregation of the Pledged Revenues as set forth in Section 14 hereof and their application to the respective funds as herein provided. N. Prompt Collections. The Town will cause the Pledged Revenues to be collected promptly and accounted for in the funds as herein provided. 0. SureU Bonds. Each official of the Town having custody of the Pledged Revenues, or responsible for their handling, shall be fully bonded at all times, which bond shall be conditioned upon the proper application of such money. P. Prejudicial Contracts and Action Prohibited. No contract wi11 be entered into, nor will any action be taken, by the Town by which the rights and privileges of any Owner are impaired or diminished. Q. Continuing Disclosure Certificate. The Town will comply with the terms of the Continuing Disclosure Certificate. Any failure by the Town to perform in accordance with this Section 20.Q shall not constitute an "event of default" under Section 23 of this Ordinance, and the rights and remedies provided by this Ordinance upon the occurrence of an "event of default" shall not apply to any such failure. Unless otherwise required by law, no owner of a 1998 Bond shall be entitled to damages for the Town's non-compliance with its obligations under this Section 20.W ; -41- ~ however, the owners of the 1998 Bonds may enforce specific performance of the obligations contained in this Section 20.W by any judicial proceeding available. Section 21. Defeasance. When the 1998 Bonds have been fully paid both as to principal and interest and all amounts due to the Bond Insurer under the Financial Guaranty Agreement have been paid, all obligations hereunder shall be discharged and the 1998 Bonds shall no longer be deemed to be Outstanding for any purpose of this Ordinance, except as set forth in Section 20.K. hereof. Payment of any 1998 Bonds sha11 be deemed made when the Town has placed in escrow with a Trust Bank an amount sufficient (including the known minimum yield from Governmental Obligations) to meet all requirements of principal and interest on such 1998 Bonds as the same become due to maturity or a designated prior redemption date; and, if 1998 Bonds are to be redeemed prior to maturity pursuant to Section 7.A. hereof, when the Town has given to the Registrar irrevocable written instructions to give notice of prior redemption in accordance with Section 7.C. hereof. The Governmental Obligations sha11 become due at or prior to the respective times on which the proceeds thereof shall be needed, in accordance with a schedule agreed upon between the Town and such Trust Bank at the time of creation of the escrow and sha11 not be callable prior to their scheduled maturities by the issuer thereof. In the event that there is a defeasance of only part of the 1998 Bonds of any maturity, the Registrar sha11, if requested by the Town, institute a system to preserve the identity of the individual 1998 Bonds or portions thereof so defeased, regardless of changes in bond numbers attributable to transfers and exchanges of 1998 Bonds; and the Registrar shall be entitled to reasonable compensation and reimbursement of expenses from the Town in connection with such system. Notwithstanding the Town's deposit of Governmental Obligations to pay when due the principal and interest to become due on the Taxable 1998 Bonds as described above, the Town is obligated to contribute additional securities to pay the Taxable 1998 Bonds if necessary to provide sufficient amounts to satisfy the payment obligations on the Taxable 1998 Bonds unless the Town has obtained an opinion of bond counsel to the effect that such continuing obligation to contribute additional securities is not necessary to prevent a deemed reissuance under Section 1001 of the Tax Code. -42- ~ Section 22. Delegated Powers; Acceptance of Purchase Contract. The officers of the Town hereby are authorized and directed to take all action necessary or appropriate to effectuate the provisions of this Ordinance, including, without limiting the generality of the foregoing, the printing of the 1998 Bonds with the opinion of bond counsel thereon, the procuring of bond insurance, entering into and executing appropriate agreements with the Registrar and Paying Agent as to its services hereunder, and the execution of such certificates as may be required by the Purchaser, including, but not necessarily limited to, the absence and existence of factors affecting the exclusion of interest on the Tax-exempt 1998 Bonds from gross income for federal income tax purposes. The form, terms and provisions of the Purchase Contract, the Registrar Agreement, the Escrow Agreement, the Financial Guaranty Agreement, the Continuing Disclosure Certificate and the Letter of Representations hereby are approved, and the Town shall enter into and perform its obligations under the Purchase Contract, the Registraz Agreement, the Escrow Agreement, the Financial Guaranty Agreement, the Continuing Disclosure Certificate and the Letter of Representations in substantially the forms of such documents presented to the Town Council at this meeting, with only such changes therein as are required by the circumstances and are not inconsistent herewith; and the Mayor and Town Clerk are hereby authorized and directed to execute and deliver such documents as required hereby. The Preliminary Official Statement hereby is approved and the officers of the Town are authorized and directed to participate in the preparation of, and to execute and deliver, a final official statement for the 1998 Bonds. The execution of the final official statement by the Finance Director shall be conclusively deemed to evidence the Town's approval of the form and contents thereof. The Council hereby accepts the Purchase Contract as submitted by the Purchaser, and hereby authorizes the sale of the 1998 Bonds to the Purchaser at a price of $ (consisting of par less underwriter's discount of $ [and original issue discount of plus accrued interest, and otherwise upon the terms, conditions and provisions as set forth in the Purchase Contract. The Council hereby determines that the sale of the 1998 Bonds as provided herein and in the Purchase Contract is to the best advantage of the Town. -43- Section 23. Events of Default. Each of the following events is hereby declared an "event of default:" A. Nonpayment of Princi,pal. If payment of the principal of any of the 1998 Bonds in connection therewith, shall not be made when the same shall become due and payable at maiurity or by proceedings for prior redemption; or B. Nonpayment of Interest. If payment of any installment of interest on the 1998 Bonds shall not be made when the same becomes due and payable; or C. Incapabie to Perform. If the Town sha11 for any reason be rendered incapable of fulfilling its obligations hereunder; or D. Default of any Provision. If the Town shall default in the due and punctual performance of its covenants or conditions, agreements and provisions contained in the 1998 Bonds or in this Ordinance on its part to be performed, other than those delineated in Paragraphs A and B of this Section, and if such default shall continue for 60 days after written notice specifying such default and requiring the same to be remedied sha11 have been given to the Town by the Bond Insurer so long as it is not in default of its payment obligations under the Bond Insurance Policy or, during such default by the Bond Insurer, by the owners of not less than 25% in aggregate principal amount of the 1998 Bonds then Outstanding. Section 24. em i. Upon the happening and continuance of any event of default as provided in Section 23 hereof, the Bond Insurer or owner or owners of not less than 25% in principal amount of the Outstanding Bonds, or a trustee therefor, may protect and enforce their rights hereunder by proper legal or equitable remedy deemed most effectual including mandamus, specific performance of any covenants, the appointment of a receiver (the consent of such appointment being hereby granted), injunctive relief, or requiring the Town Council to act as if it were the trustee of an express trust, or any combination of such remedies. Notwithstanding the foregoing, so long as the Bond Insurer is not in default in its payment obligations under the Bond Insurance Policy or the Bond Reserve Insurance Policy, the Bond Insurer shall direct the enforcement of any remedy hereunder without the consent of the owners of the Bonds. All proceedings shall be maintained for the benefit of the Bond Insurer so long as it is not in default in its payment obligations under the Bond Insurance Policy or the Bond Reserve Insurance Policy, and, -44- during such default by the Bond Insurer, thereafter for the equal benefit of all owners. The failure of the Bond Insurer or any owner to proceed does not relieve the Town or any person of any liability for failure to perform any duty hereunder. The foregoing rights are in addition to any other right available to the Bond Insurer or owners of Bonds and the exercise of any right by any owner shall not be deemed a waiver of any other right. Section 25. Duties Upon Default. Upon the happening of any of the events of default as provided in Section 23 of this Ordinance, the Town, in addition, will do and perform a11 proper acts on behalf of and for the owners of the 1998 Bonds to protect and preserve the security created for the payment of the 1998 Bonds and to insure the payment of the principal of and interest on said 1998 Bonds promptly as the same become due. Proceeds derived from the Pledged Revenues, so long as any of the 1998 Bonds herein authorized, either as to principal or interest, are Outstanding and unpaid, shall be paid into the Bond Fund and the Reserve Fund, pursuant to the terms hereof and to the extent provided herein, and used for the purposes herein provided. In the event the Town fails or refuses to proceed as provided in this Section, the Bond Insurer so long as it is not in default of its payment obligations under the Bond Insurance Policy or, during such a default by the Bond Insurer, the owner or owners of not less than 25% in aggregate principal amount of tlie 1998 Bonds then Outstanding, after demand in writing, may proceed to protect and enforce the rights of such owners as hereinabove provided. Section 26. Replacement of Registrar or Paying Agent. If the Registrar or Paying Agent initially appointed hereunder sha11 resign, or if the Town sha11 reasonably determine that said Registrar or Paying Agent has become incapable of perfornung its duties hereunder, the Town may, upon notice mailed to Bond Insurer and each owner of any 1998 Bond at his address last shown on the registration records, appoint a successor Registrar or Paying Agent, or both. No resignation or dismissal of the Registrar or Paying Agent may take effect until a successor is appointed. Every such successor Registrar or Paying Agent shall be a bank or trust company having a shareowner's equity capital, surplus, and undivided profits), however denominated, of not less than $10,000,000. It sha11 not be required that the same institution serve as both Registrar and Paying Agent hereunder, but the Town shall have the right to have the same institution serve as both Registrar and Paying Agent hereunder. -45- ~ Section 27. Maintenance of Escrow Account. The Escrow Account shall be maintained at all times subsequent to the initial deposit of moneys therein in an amount at least sufficient, together with the known minimum yield to be derived from the initial investment and any temporaty reinvestrnent of the deposits therein or any part thereof in Federal Securities (as defined therein), to pay the Refunded Bond Requirements as the same became due. Section 28. Use of Escrow Account. Moneys shall be withdrawn by the Escrow Bank from the Escrow Account in sufficient amounts and at such times to permit the payment without default of the Refunded Bond Requirements. Any moneys remaining in the Escrow Account after provision shall have been made for the redemption in full of the Refunded Bonds shall be applied to any lawful purpose of the Town as the Council may hereafter determine. Section 29. Insufficiency of Escrow Account. If for any reason the amount in the Escrow Account shall at any time be insufficient for the purpose of Sections 27 and 28 hereof, the Town shall forthwith deposit in such account such additional moneys as shall be necessary to permit the timely payment in full of the Refunded Bond Requirements. Section 30. Notice of Defeasance. The Town hereby authorizes and directs the registrar for the 1991 Bonds and the 1992 Bonds to give the notice of defeasance of the Refunded Bonds, in the name of and on behalf of the Town and the bond registrar forthwith upon issuance of the 1998 Bonds. Section 31. Manner of Giving Notice. The notice of defeasance shall be given by mailing a copy of the notice by first class mail (postage prepaid) to the registered owners of the Refunded Bonds at the addresses shown on the registration records of the registrar for the Refunded Bonds. Section 32. Form of Notice. The notice of defeasance so to be given forthwith shall be in substantially the following form: -46- ~ (Form of Notice) NOTICE OF PAR.TIAL DEFEASANCE OF TOWN OF VAIL, COLORADO SALES TAX REVENUE BONDS, SERIES 1991 AND PARTIAL DEFEASANCE OF SALES TAX REVENUE REFUNDING AND IMPROVEMENT BONDS SERIES 1992B CUSIP NOS. NOTICE IS HEREBY GIVEN that the Town of Vail, Colorado (the "Town") has caused to be deposited in escrow with The Bank of Cherry Creek, N.A. in Denver, Colorado refunding bond proceeds and other funds which have been invested (except for an initial cash balance remaining uninvested) in bills, notes, bonds and similar securities which are non-callable direct obligations of the United States of America, to refund, pay and discharge the principal of, interest and, if applicable, prior redemption premiums on the Town's outstanding Sa1es Tax Revenue Bonds, Series 1991 and the following portions of the Town's outstanding Sa1es Tax Revenue Refunding and Improvement Bonds, Series 1992B maturing or subject to mandatory redemption on the following dates: Date Principal Amount June 1, 1999 $ 50,000 June 1, 2000 950,000 June 1, 2001 1,005,000 June 1, 2002 1,065,000 June 1, 2003 1,125,000 June 1, 2004 1,195,000 June 1, 2005 1,255,000 (collectively, the "Refunded Bonds") as the same become due through and including prior redemption thereof. The 1991 Bonds maturing on and after December 1, 2002 will be redeemed on December 1, 2001 upon payment of principal and interest and the refunded 1992 Bonds maturing on June 1, 2005 will be redeemed on December 1, 2002 upon payment of the principal, interest and redemption premium of 1% of the principal so redeemed. -47- f According to a report pertaining to such escrow of Van Schooneveld & Co., Denver, Colorado, certified public accountants, the escrow, including the known minimum yield from such investments and the initial cash balance remaining uninvested, is fully sufficient at the time of the deposit and at all times subsequently, to pay the debt service requirements of the Refunded Bonds on the respective maturity and prior redemption dates. In accordance with the Comprehensive Energy Policy Act of 1992 (HR 776), the paying agent is required to withhold 3 1 % from payments of principal to individuals who fail to fixrnish valid Taxpayer ldentification Numbers. A completed form W-9 should be presented with your Refunded Bond. The above-referenced CUSIP numbers were assigned to this issue by Standard & Poor's Corporation and are intended solely for bondholders' convenience. Neither the paying agent nor the Town shall be responsible for selection or use of the CUSIP numbers, nor is any representation made as to their correctness on the Refunded Bonds or as indicated in any redemption notice. DATED TOWN OF VAIL, COLORADO By: Finance Director (End of Form of Notice) -48- + . Section 33. Severabilitv. If any one or more sections, sentences, clauses or parts of this Ordinance shall for any reason be held invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Ordinance, but shall be confined in its operation to the specif c sections, sentences, clauses or parts of this Ordinance so held unconstitutional or invalid, and the inapplicability and invalidity of any section, sentence, clause or part of this Ordinance in any one or more instances shall not affect or prejudice in any way the applicability and validity of this Ordinance in any other.instances. Section 34. Re en aler. All bylaws, orders, resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revise any bylaw, order, resolution or ordinance, or part thereof, heretofore repealed. Section 35. Amendment. After any of the 1998 Bonds have been issued, this Ordinance sha11 constitute a contract between the Town and the owners of the Bonds and shall be and remain irrepealable until the Bonds and the interest thereon have been fully paid, satisfied and discharged. A. The Town may, without the consent of, or notice to the owners of the 1998 Bonds (but followed by notice to the Bond Insurer), adopt such ordinances supplemental hereto (which supplemental amendments shall thereafter form a part hereof) for any one or more or all of the following purposes: (1) to cure any ambiguity, or to cure, correct or supplement any defect or omission or inconsistent provision contained in this Ordinance, or to make any provisions with respect to matters arising under this Ordinance or for any other purpose if such provisions are necessary or desirable and do not adversely affect the interests of the owners of the 1998 Bonds or the Bond Insurer; (2) to subject to the lien of this Ordinance additional revenues, properties or collateral; (3) to grant or confer upon the Registrar for the benefit of the registered owners of the Bonds any additional rights, remedies, powers, or authority that may lawfully be granted to or conferred upon the registered owners of the Bonds; or -49- I (4) to qualify this Ordinance under the Trust Indenture Act of 1939. B. Exclusive of the amendatory ordinances permitted by Paragraph A of this Section, this Ordinance may be amended or supplemented by ordinance adopted by the Town Council in accordance with the law, without receipt by the Town of any additional consideration but with the written consent of the Bond Insurer, unless the Bond Insurer is in default under the terms of the Bond Insurance Policy or the Bond Reserve Insurance Policy, in which case this Ordinance may be amended or supplemented with the written consent of the owners of 66% in aggregate principal amount of the 1998 Bonds Outstanding at the time of the adoption of such amendatory or supplemental ordinance; provided, however, that, without the written consent of the Bond Insurer and the owners of all of the 1998 Bonds adversely affected thereby, no such Ordinance shall have the effect of permitting: (1) An extension of the maturity of any 1998 Bond authorized by this Ordinance; or (2) A reduction in the principal amount of any 1998 Bond or the rate of interest thereon; or (3) The creation of a lien upon or pledge of Pledged Revenues ranking prior to the lien or pledge created by this Ordinance; or (4) A reduction of the principal amount of 1998 Bonds required for consent to such amendatory or supplemental ordinance; or (5) The establishment of priorities as between 1998 Bonds issued and Outstanding under the provisions of this Ordinance; or (6) The modification of or otherwise affecting the rights of the owners of less than all of the 1998 Bonds then Outstanding. Copies of any waiver, modification or amendment to this Ordinance shali be delivered to any entity then maintaining a rating on the 1998 Bonds. Section 36. Notice to Bond Insurer. Any notice required by this Ordinance or the Escrow Agreement to be given to any party also shall be given to the Bond Insurer. Any notice herein required to be given to the Bond Insurer shall be in writing and sent by registered or certified -50- < i mail to the Bond Insurer, 113 King Street, Armonk, New York 10504, Attention: Surveiliance, or to such other address of which the Bond Insurer shall notify the Town in writing. Section 37. Pavments under the PolicX. A. In the event that, on the second Business Day, and again on the Business Day, prior to any payment date on the 1998 Bonds, the Paying Agent has not received sufficient moneys to pay all principal of and interest on the 1998 Bonds then due, the Paying Agent shall immediately notify the Bond Insurer or its designee on the same Business Day by telephone or telegraph, confirmed in writing by registered or certified mail, of the amount of the deficiency. B. If the deficiency is made up in whole or in part prior to or on the payment date, the Paying Agent sha11 so notify the Bond Insurer or its designee. C. In addition, if the Paying Agent has notice that any registered owner has been required to disgorge payments of principal or interest on the 1998 Bonds to a trustee in bankruptcy or creditors or others pursuant to a final judgment by a court of competent jurisdiction that such payment constitutes an avoidable preference to such registered owner within the meaning of any applicable ba,nkruptcy laws, then the Paying Agent shall notify the Bond Insurer or its designee of such fact by telephone or telegraph, confirmed in writing by registered or certified mail. D. The Paying Agent is hereby irrevocably designated, appointed, directed and authorized to act as attorney-in-fact for registered owners of the 1998 Bonds as follows: 1. If and to the extent there is a deficiency in amounts required to pay interest on the 1998 Bonds, the Paying Agent shall (a) execute and deliver to the Insurance Paying Agent, in form satisfactory to the Insurance Paying Agent, an instrument appointing the Bond Insurer as agent for such registered owners in any legal proceeding related to the payment of such interest and an assignment to the Bond Insurer of the claims for interest to which such deficiency relates and which are paid by the Bond Insurer, (b) receive as designee of the respective registered owners (and not as Paying Agent) in accordance with the tenor of the Policy payment from the Insurance Paying Agent with respect to the claims for interest so assigned, and (c) disburse the same to such respective registered owners; and 2. If and to the extent of a deficiency in amounts required to pay principal of the 1998 Bonds, the Paying Agent sha11(a) execute and deliver to the Insurance Paying Agent in -51- . , form satisfactory to the Insurance Paying Agent an instrument appointing the Bond Insurer as agent for such registered owner in any legal proceeding relating to the payment of such principal and an assignment to the Bond Insurer of any of the 1998 Bonds surrendered to the Insurance Paying Agent of so much of the principal amount thereof as has not previously been paid or for which moneys are not held by the Paying Agent and available for such payment (but such assignment shall be delivered only if payment from the Insurance Paying Agent is received), (b) receive as designee of the respective registered owners (and not as Paying Agent) in accordance with the tenor of the Policy payment therefor from the Insurance Paying Agent, and (c) disburse the same to such registered owners. E. Payments with respect to claims for interest on and principal of 1998 Bonds disbursed by the Paying Agent from proceeds of the Bond Insurance Policy shall not be considered to discharge the obligation of the Town with respect to such 1998 Bonds, and the Bond Insurer sha11 become the owner of such unpaid 1998 Bonds and claims for the interest in accordance with the tenor of the assignment made to it under the provisions of this subsection or otherwise. F. Irrespective of whether any such assignment is executed and delivered, the Town and the Paying Agent hereby agree for the benefit of Bond Insurer that, 1. to the extent the Bond Insurer makes payments, directly or indirectly (as by paying through the Paying Agent), on account of principal of or interest on the 1998 Bonds, the Bond Insurer will be subrogated to the rights of such registered owners to receive the amount of such principal and interest from the Town, with interest thereon as provided and solely from the sources stated in this Ordinance and the 1998 Bonds; and 2. they will accordingly pay to the Bond Insurer the amount of such principal and interest (including principal and interest recovered under subparagraph (ii) of the first paragraph of the Bond Insurance Policy, which principal and interest shall be deemed past due and not to have been paid), with interest thereon as provided in this Ordinance and the 1998 Bonds, but only from the sources and in the manner provided herein for the payment of principal of and interest on the 1998 Bonds to registered owners, and will otherwise treat the Bond Insurer as the owner of such rights to the amount of such principal and interest. -52- ~ Section 3 8. Ordinance Irrepealable. After any of the 1998 Bonds herein authorized are issued, this Ordinance sha11 constitute a contract between the Town and the owners of the 1998 Bonds, and sha11 be and remain irrepealable until the 1998 Bonds and interest thereon shall be fully paid, cancelled and discharged as herein provided. Section 39. Disposition of Ordinance. This Ordinance, as adopted by the Council, shall be numbered and recorded by the Town Clerk in the official records of the Town. The adoption and publication shall be authenticated by the signatures of the Mayor, or Mayor Pro Tem, and Town Clerk, and by the certificate of publication. Section 40. Effective Date. This ordinance shall be in full force and effect five days after publication following final passage. INTRODUCED, READ AND APPROVED on first reading by a vote of to this 18th day of August, 1998 and ordered published in full together with notice of hearing in , a newspaper of general circulation in the Town of Vail; and further order that a Public Hearing on the Ordinance and consideration on final passage be set for Tuesday, September 1, 1998, at p.m. at the Town Hall. 1NTRODUCED, READ, APPROVED, AS AMENDED, AND ORDERED PUBLISHED in full in , a newspaper of general circulation in the Town of Vail on second and final reading by a vote of to , this 1 st day of September, 1998. Mayor Town of Vail, Colorado (SEAL) Attest: Town Clerk Town of Vail, Colorado -53- ~ EXHIBIT I Permitted Investments -54- STATE OF COLORADO ) ) COUNTY OF EAGLE ) SS. ) TOWN OF VAIL ) I, the Town Clerk of the Town of Vail, Colorado, do hereby certify 1. That the foregoing pages are a true, perfect and complete copy of the Ordinance adopted by the Town Council constituting the governing board of the Town of Vail (the "Council"), had and taken at an open, regular meeting of the Council held at the Town Ha11, in Vail, Colorado, on September 1, 1998, convening at the hour of _ p.m. as recorded in the regular book of official records of the proceedings of said Town of Vail kept in my office. 2. That the Ordinance was read by title, duly moved and seconded and the Ordinance was approved on first reading by a vote of _ to _ of the members of the Council at the regular meeting of the Council held at the Town Hall, in Vail, Colorado, on August 18, 1998, convening at the hour of _ p.m., as follows: Those Voting Yes: Those Voting No: Those Abstaining: -55- ~ 3. That the ordinance, as well as the notice of public hearing was published after first reading in , a newspaper of general circulation within the Town on August 1998. The affidavit of publication is attached hereto as Exhibit A. 4. That following said public hearing, the passage of the Ordinance on second reading was duly moved and seconded, and the Ordinance was finally adopted at the meeting of September 1, 1998, by an affirmative vote of a majority of the members of the Council as follows: Those Voting Yes: Those Voting No: Those Abstaining: 5. The members of the Council were present at each of the meetings and voted on the passage of such Ordinance as set forth above. 6. There are no bylaws, rules or regulations of the Council which might prohibit the adoption of said Ordinance. 7. The Ordinance was published in full in , a newspaper of general circulation in the Town, on September 1998, and the affidavit of publication is attached hereto as Eachibit B. 8. Notice of the meetings of August 18, 1998 and September 1, 1998, in the forms attached hereto as Exhibit C was posted at the Town Hall, not less than 24 hours prior to each meeting in accordance with law. -56- WITNESS my hand and the seal of said Town affixed this 1998. Town Clerk (SEAL) -57- . . EXHIBIT A AFFIDAVIT OF PUBLICATION (published August 1998) EXHIBIT B AFFIDAVIT OF PUBLICATION (published September 1998) B-1 EXHIBIT C Notice of the Meetings of August 18, 1998 and September 1, 1998 C-1 PRELIIUIINARY OFFICIAL STATEMENT DATED AUGUST 13,1998 ~ .G NEW ISSUE RATINGS: Standard & Poor's "AAA" BANK QUALIFIED (See "MISCELLANEOUS-Ratings") ; G BOOK-ENTRY ONLY INSURANCE: MBIA Insurance Corporation U E C O R In the opinion of Sherman & Howard L.L. C., Bond Counsel, assuming continuous compliance with certain covenants described herein, interest on the Y._ Senes 1998A Bands is (a) not included in gross income under federal income tax laws pursuant to Section 103 of the Internal Revenue Code of 1986, as a~ a amended to the date of delivery of the Bonds (the "Tiix Code'), is not included in alternative minimum ttczable income as defined in Section 55(b)(1) of the Tax Code under present federal income tax laws except that such interest is required to be included in calculating the "adjusted current earnings" adjustment GE N applicable to corporations for purposes of computing the alternative minimum taxable income of corporations, and (b) is not included in Colorado taxable ~ y income or Colorado alternative minimum taxable income under Colorado income taz laws in effect on the date of delivery of the Bonds. See "TAX STATTIS- Senes 1998A Bonds. ° Interest on the Series 1998B Bondc ic 'ncluded in gross income under, f'ederal income tax laws in effect on the delive l at of the 1998B ~ o Bonds and in the opinion of Bond Counsel interest on the Series 1998B Bonds is not included in Colorado tarable income or Colorado alternative minimum taxable income under Colorado income tax /aws in efj"ect on the date of delivery of the Bonds. See "TiLY STA TUS-Series 1998B Bonds. " ~ N Cd ~ $8,610,000` $815,000' ~ Town of Vail, Colorado Town of Vail, Colorado Tax-Ezempt Sales Tax Revenue Refunding Bonds Tazable Sales Tax Revenue Refunding Bonds s~ Series 1998A Series 1998B W V1 5",s Dated: September 1, 1998 Due: December 1, as shown below Q V The Series 1998A Bonds and Series 1998B Bonds (collectively, the "Bonds") are issued in fully registered form in denominations of $5,000 or integral multiples thereof. Interest on the Bonds, at the ntes set forth below, is payable semi-annually on June 1 and December 1 each yeaz, commencing on ~ o December 1, 1998. The Depository Trust Company, New York, New York ("DTC"), will act as securiries depository for the Bonds, and the Bonds will be 'v " registered in the name of Cede & Co., as nominee of DTC. Beneficial owners will not receive certificates evidencing their interesu in the Bonds. So long as y,10 DTC or its nominee is the registered owner of the Bonds, paymenu of principal of and interest on the Bonds will be made by the Paying Agent, initially The p° Bank of Chen-y Creek, direcdy to DTC, which will remit such payments to the DTC Participants (as defined herein) for subsequent distribution to the Beneficial Owners (as defined herein). o ~ Payment of the principal of and interest on the Bonds when due will be guaranteed by a£nancial guaranty insurance policy to be issued ~ simultaneously with the delivery of the Bonds by MBIA Insurance Corporarion. ~ ~ ? MBIA (Logo) U ~ 7 MATURITY SCHEDULE lu $8,610,000* Series 1998A Bonds y O ~ 0 3 Maturity Date Principal Interest Price or (December 1) m un' Rate Yield ` 2007 $ 880,000 c~ ~ 2008 1,41Q000 ro ~ N 2009 1,475,000 2010 1,540,000 o c " 2011 1,615,000 ~ o q 2012 1,690,000 E .2 MATURITY SCHEDULE ° " t0 $815,000* Series 1998B Bonds ~ V V ~ W N ~ ^ .0 •°=3 Maturity Date Principal Interest Price or (December 11 Amount Rate Yield a ~ c 2006 $350,000 2007 465,000 ~ c ~ t EThe Bonds are revenue obiigations of the Town payable solely from the Town's 4% Sales Tax (the "Sales Tax"), as described herein. T'he Bonds are ~4p secured by a lien on, but not an exclusive lien on, the Sales Tax. The Bonds do not constitute a debt or indebtedness of the Town within the meaning of any ~ d o Charter, constitutional or statutory debt limitation or provision, and are not payable in whole or in part from the proceeds of ad valorem property taxes. `o The Bonds are being issued for the putpose of refunding the Town's Sales Tax Revenue Bonds, Series 1991 and certain of the Sales Tax Revenue o,9 7s Refunding and Improvemettt Bonds, Series 199213, and PaYin8 the costs of issuance of the Bonds. THE SERIES 1998A BONDS ARE SUBJECT TO REDEMPTION PRIOR TO MATURITY AS DESCRIBED HEREIN. THE SERIES 1998B ~E 5 BONDS ARE NOT SUB7ECT TO REDEMPTION PRIOR TO MATURITY. This cover page contains certain information for quick reference only. It is not a summary of t6is issue. Investors must read this entire c.~ 3 Ofticial Statement to obtain information essentia) to the making of an informed investment decision. "5= N The Bonds are offered when, as, and if issued by the Town and accepted by the Underwriter named below, subject to the approval of legality and certain other matters by Sherman & Howard L.L.C., Denver, Colorado, as Bond Counsel. Certain legal matters will be passed upon by Kutak Rock, Denver, Q) j c Colorado, as Special Counsel to the Town. It is expected that the Bonds will be available for delivery through the facilities of DTC in New York, New York, on ~ o or about October 6, 1998. Bigelow & Company --o a This Offcial Statement is dated 1998 Oy ~ c . c .E a . V E ~ U ; N Preliminary; subject to change ~ .N 3 02-9565.04 I TABLE OF CONTENTS Page 1NTRODUCTION .............................................................................................................1 THE BONDS 4 Description 4 Prior Redemption of Bonds 4 Application of Bond Proceeds 4 Security for the Bonds 6 Book-Entry-Only System 7 Debt Service Coverage 9 Debt Service Requirements ..............................................................................................10 MUNICIPAL BOND 1NSURANCE ...........................................................................................12 The MBIA Insurance Corporation Insurance Policy 12 THE SALES TAX .......................................................................................................................14 Authority for the Imposition of the Sales Tax 14 Description of Sales Tax 14 Manner of Collection of the Sales Tax 15 Remedies for Delinquent Taxes .......................................................................................15 Sales Tax Data .................................................................................................................16 THE TOWN 18 Description 18 Governing Body ...............................................................................................................18 Administration 19 Town Employees and Benefits 20 Capital Projects ................................................................................................................20 Services Available to Town Residents 22 Economic and Demographic Information 22 TOWN FINANCIAL OPERATIONS 29 Accounting Policies 29 Major Sources of General Fund Revenues 29 Historical and Budgeted General Fund Financial Information 29 Deposit and Investment of Town Funds 32 Retirement and Pension Matters 33 Insurance Coverage 33 Constitutional Amendment Limiting Taxes and Spending 33 Debt Structure 34 LEGAL MATTERS 36 Pending and Threatened Litigation Involving the Town 36 ~ TABLE OF CONTENTS (continued) Page No Litigation Certificate 36 TAX STATUS 37 Series 1998A Bonds 37 Series 1998B Bonds 38 Financial Institution Interest Deduction 38 MISCELLANEOUS Rating . . . . 39 Registration of Bonds 39 Undertaking to Provide Ongoing Disclosure 39 Interest of Certain Persons Named in this Official Statement 39 Underwriting 39 Independent Accountants 40 Additional Information 40 Official Statement Certification 40 APPENDIX A-Undertaking to Provide Ongoing Disclosure A-1 APPENDIX B-Summary of Bond Ordinance ........................................................................................B-1 APPENDIX C-Audited general purpose financial statements of the Town as of and for the year ended December 31, 1997 .........................................................C-1 APPENDIX D-Specimen Insurance Policy D-1 ii INDEX OF TABLES TABLE PAU I Debt Service Coverage ...................................................................................................................10 II Debt Service Requirements ............................................................................................................11 III History of Town 4% Sales Tax Receipts ........................................................................................16 N Monthly Comparison of Collections of Sales Tax .........................................................................17 V Sales Tax Collections by Principal Sales Tax Generators ..............................................................17 VI Capital Projects Fund 1997-2001 ...................................................................................................21 VII Population .......................................................................................................................................22 VIII Median Household Effective Buying Income ................................................................................23 IX Percent of Households by Effective Buying Income Groups - 1996 .............................................23 X Per Capita Personal Income ...........................................................................................................23 XI Fall School Enrollment ...................................................................................................................24 XII History of Estimated Building Activity for New Structures in the Town of Vail ..........................24 XIII History of Foreclosures in Eagle County .......................................................................................25 XIV Retail Sales .....................................................................................................................................25 XV Skier Visits .....................................................................................................................................26 XVI Total Business Establishmer,ts and Employment-Eagle County ....................................................27 XVII Labor Force Estimates ....................................................................................................................27 XVIII Selected Major Employers .............................................................................................................28 XIX History of General Fund Revenues, Expenditures and Changes in Fund Balances .......................30 XX General Fund 1997 and 1998 Budget Summary and Comparison .................................................32 XXI Outstanding Revenue Obligations ..................................................................................................35 02-9565.04 TOWN OF VAIL, COLORADO Town Council Rob Ford, Mayor Ludwig Kurz, Mayor Pro-Tem Kevin Foley Bob Armour Michael Jewett Sybill Navas Michael Arnett Town Officials Robert W. McLaurin, Town Manager Pam Brandmeyer, Assistant Town Manager Steve Thompson, Finance Director Christine B. Anderson, Finance & Budget Manager Thomas Moorhead, Town Attorney Independent Auditors McMahan and Associates, P.C. Avon, Colorado Paying Agent and Registrar The Bank of Cherry Creek Denver, Colorado Underwriter Bigelow & Company Denver, Colorado Bond Counsel Sherman & Howard L.L.C. Denver, Colorado Special Counsel to the Town Kutak Rock Denver, Colorado 02-9565.04 2 No dealer, salesman, or other person has been authorized to givEr any information or to make any representation, other than the information contained in this Official Statement, in connection tivith the ofjering of the Bonds, and, if given or made, - such information or representation must not be relied upon as having been authorized by the Town or the Underwriter. The information in this Official Statement is subject to change without notice, and neither the delivery of this Ojjricial Statement nor any sale hereunder will, under. any circumstances, create any implication that lhere has been no change in the affairs oj the Town or the Underwriter since the date hereof. This Official Statemerzt does not constitute an ofJ'er or solicitation in any jurisdiction in which such offer or solicitation is not authorized, or in which any person making such offer or solicitation is not qualified to do so, or to any person to whom it is unlawful to make such ofj"er or solicitation. The information set forth herein has been obtained from the Town and other sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness by, and is not to be construed as a representation by, the Underwriter. THE BONDS HAVE NOT BEEN REGISTERED WITN THE SECURITIES AND EXCHANGE COMMISSION BY REASON OF CERTAIN EXEMPTIONS CONTAINED IN THE SECURITIES ACT OF 1933, AS AMENDED. IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE TOWN, THE BONDS AND THE TERMS OF THE OFFERING, INCL UDING THE MERITS AND RISKS INVOL VED. THESE SECURITIES HA VE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQ UACY OF THIS DOCUMENT AND ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. THE PRICES AT WHICH THE BONDS ARE OFFERED TO THE PUBLIC BY THE UNDERWRITER (AND THE YIELDS RESULTING THEREFROM) MAY VARY FROM THE INITIAL PUBLIC OFFERING PRICES APPEARING ON THE COVER PAGE HEREOF. IN ADDITION, THE UNDERWRITER MAY ALLOW CONCESSIONS OR DISCOUNTS FROM SUCH INITIAL PUBLIC OFFERING PRICES TO DEALERS AND OTHERS. IN CONNECTION WITH THE OFFERING OF THE BONDS, THE UNDERWRITER MAYEFFECT TRANSACTIONS THAT STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TIME. 02-9565.04 3 REGIONAL MAP 02-9565.04 $ INTRODUCTION This Official Statement is furnished to prospective purchasers of $8,610,000' Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A (the "Series 1998A Bonds") and $815,000* Taxable Sales Tax Revenue Refunding Bonds, Series 1998B (the "Series 1998B Bonds") (the Series 1998A Bonds and Series 1998B Bonds are collectively refened to herein as the "Bonds") issued by the Town of Vail, Eagle County, Colorado ( the "Town"). The offering of the Bonds is made only by way of this Official Statement, which supersedes any other information or materials used in connection with the offer or sale of the Bonds. The information set forth in this Official Statement has been obtained from the Town and from other sources believed to be reliable but is not guaranteed as to accuracy or completeness. This Official Statement contains, in part, estimates and matters of opinion which are not intended as statements of fact, and no representation or warranty is made as to the correctness of such estimates and opinions, or that they will be realized. This Official Statement is dated as set forth on the cover page hereof and the information contained herein is subject to change. The following introductory material is only a brief description of and is qualified by the more complete information contained throughout this Official Statement. Detachment or other use of this "INTRODUCTION" without the entire Official Statement, including the cover page and appended infor.nation, is unauthorized. Issuer The Town of Vail, Colorado, encompassing approximately five square miles, is a resort mountain community located in Eagle County in the central Rocky Mountains. The area's economy is based primarily on skiing and tourism. The Town had a 1997 estimated permanent resident population of 4,402. See "THE TOWN" and the preceding "REGIONAL MAP." Purpose The Bonds are being issued to refund the Town's outstanding Sales Tax Revenue Bonds, Series 1991 and certain of the Sales Tax Revenue Refunding and Improvement Bonds, Series 1992B and to pay the costs of issuance on the Bonds, as described in "THE BONDS-Application of Bond Proceeds." Security The Bonds are special limited obligations of the Town payable solely from the Town's existing 4% sales tax (the "Sales Tax") imposed by the Town's Code of Ordinances (the "Code"), and investment income thereon (the "Pledged Revenues") as provided in the ordinance authorizing the issuance of the Bonds (the "Bond Ordinance"). The Bonds constitute an irrevocable lien (but not an exclusive lien) upon the Pledged Revenues. The Bond Ordinance provides that the Town may issue bonds or other obligations having a lien on the Pledged Revenues which is on a parity with the lien of the Bonds (the "Parity Lien Bonds"). That portion of the Town's Sales Tax Revenue Refunding and Impravement Bonds, Series 1992B (the "Series 1992B Bonds") not defeased with this financing has a lien on the Pledged Revenues on a parity with the Bonds. See "THE BONDS-Security for the Bonds". 'Preliminary; subject to change. 02-9565.04 Municipal Bond Insurance Payment of the principal and interest on the Bonds when due will be insured by a financial guaranty insurance policy to be issued simultaneously with the delivery of the Bonds by MBIA Insurance Corporation (the Insurer"). For a description of the policy and the Insurer, see "MLTNICIPAL BOND INSURANCE," herein. A specimen of the Bond Insurance Policy is attached hereto as Appendix D. Payment Provisions The Bonds mature and bear interest at the rates (computed on the basis of a 360- day year of twelve 30 day months) as set forth on the cover page hereof. Interest on the Bonds is payable semiannually on June 1 and December 1 each year, commencing on December 1, 1998. Principal of the Bonds is payable to the registered owner thereof (initially Cede & Co.) at the principal operations center of the Paying Agent. Payments to Beneficial Owners will be made as described in "T`HE BONDS-Book-Entry-Only System." Book-Entry- Only Regi- stration The Bonds will be issued in fully registered form and will be registered initially in the name of "Cede & Co." as nominee for The Depository Trust Company, New York, New York ("DTC"), a securities depository. Beneficial ownership interests in the Bonds may be acquired in principal denominations of $5,000 or integral multiples thereof through Participants in the DTC system. Such beneficial ownership interests will be recorded in the records of the Participants. The Beneficial Owners will not receive certificates evidencing their interests in the Bonds so long as DTC or a successor securities depository acts as the securities depository with respect to the Bonds. So long as DTC or its nominee is the Owner of the Bonds, payments of principal, premium, if any, and interest on the Bonds, as well as notices and other communications made by or on behalf of the Town pursuant to the Bond Ordinance, will be made to DTC or its nominee only. Disbursement of such payments, notices, and other communications by DTC to Participants, and by Participants to the Beneficial Owners, is the responsibility of DTC and the Participants pursuant to rules and procedures established by such entities. See "THE BONDS-Book-Entry-0nly System" for a discussion of the operating procedures of the DTC system with respect to payments, registration, transfers, notices, and other matters. Prior Redemption The Series 1998A Bonds are subject to optional redemption prior to maturity. The Series 1998B Bonds are not subject to redemption prior to maturity. The terms and provisions regarding prior redemption are set forth in "THE BONDS- Prior Redemption of Bonds." 02-9565.04 2 Registration and Denomi- nations The Bonds are issued in fully registered form. The Bonds are issued in denominations of $5,000 each or integral multiples thereof. Tax Exemption.......... In the opinion of Sherman & Howard L.L.C., Bond Counsel, assnming continuous compliance with certain covenants described herein, interest on the Series 1998A Bonds is (a) not included in gross income under federal income tax laws pursuant to Section 103 of the Internal Revenue Code of 1986, as amended to the date of delivery of the Bonds (the "Tax Code"), is not included in alternative minimum taxable income as defined in Section 55(b)(2) of the Tax Code under present federal income tax laws except that such interest is required to be included in calculating the "adjusted current earnings" adjustment applicable to corporations for purposes of computing the alternative minimum taxable income of corporations, and (b) is not included in Colorado taxable income or Colorado alternative minimum taxable income under Colorado income tax laws in effect on the date of delivery of the Bonds. See "TAX STATUS- Series 1998A Bonds." Interest on the Series 1998B Bonds is included in gross income under federal tax laws in effect on the deliverv date of the 1998B Bonds and in the opinion of Bond Counsel interest on the Series 1998B Bonds is not included in Colorado taxable income or Colorado alternative minimum taxable income under Colorado income tax laws in effect on the date of delivery of the Bonds. See "TAX MATTERS-Series 1998B Bonds." Authority for Issuance The Bonds are issued in accordance with the Town Charter, the Constitution of the State of Colorado and all other laws of the State of Colorado thereunto enabling, and pursuant to the Bond Ordinance adopted by the Town Council. Delivery Information The Bonds are offered when, as, and if issued by the Town and accepted by Bigelow & Company (the "Underwriter"), subject to: prior sale; the approving legal. opinion of Bond Counsel; and certain other matters. It is expected that the Bonds will be available for delivery on October 6, 1998, against payment therefor. Continuing Disclosure Undertaking Pursuant to the requirements of Securities and Exchange Commission Rule 15c2- 12 (17 CFR Part 240, § 240.15c2-12) (the "Rule"), the Town has agreed for the benefit of the owners of the Bonds to provide annual financial information, audited financial statements and notices of material events in compliance with the Rule (the "Continuing Disclosure Undertaking"). The form of the Town's Continuing Disclosure Undertaking is attached hereto as Appendix A. Exchangeand Transfer While the Bonds remain in book-entry-only form, transfer and ownership by Beneficial Owners may be made as described under the caption "THE BONDS - Book-Entry-Only System." In the event that DTC ceases to act as securities depository for the Bonds, the Bond Ordinance provides for transfer of the Bonds by the Paying Agent pursuant to the terms and provisions specified therein. 02-9565.04 3 Financial Statements Appended hereto are the audited general purpose financial statements of the Town as of and for the year ended December 31, 1997, being the most recent audited financial statements available for the Town. ALL OF THE SUMMARIES OF THE STATUT'ES, RESOLUTIONS, ORDINANCES, OPMONS, CONTRACTS, AND AGREEMENTS DESCRIBED IN THIS OFFICIAL STATEMENT ARE SUB7ECT TO THE ACTUAL PROVISIONS OF SUCH DOCIJMENTS. The summaries do not purport to be complete statements of such provisions and reference is made to such documents, copies of which are either publicly available or available upon request and the payment of a reasonable copying, mailing, and handling charge from: Town of Vail, 75 South Frontage Road, Vail, Colorado 81657, telephone: (970) 479-2105; or Bigelow & Company, 1401 17`h Street, Suite 1300, Denver, Colorado 80202, telephone: (303) 292-5900. TFIE BONDS Description The maturities and interest rates for the Bonds, are set forth on the cover page hereof. Provisions regarding payment of the principal of, premium, if any, and interest on the Bonds, registration, exchange, transfer, book entry eligibility, anticipated delivery, and certain other matters are set forth in the "INTRODUCTION." For a complete statement of the details and conditions of the Bond issue, reference is made to the authorizing Bond Ordinance, copies of which are available from the Underwriter prior to delivery of the Bonds. A summary of the Bond Ordinance is appended to this Official Statement. Prior Redemption of Bonds Series 1998A Bonds. The Series 1998A Bonds maturing on and after December 1, 2009 are subject to redemption prior to maturity at the option of the Town, in whole or in part in integral multiples of $5,000, and if in part in such order of maturities as the Town shall determine and by lot within a maturity, on December 1, 2008 and on any date thereafter, at a redemption price equal to par, plus accrued interest to the redemption date. Notice of Prior Redemption. Notice of prior redemption shall be given by the Paying Agent by first class mail (postage prepaid), not less than 30 days prior to the date fixed for redemption, to the owner of each Bond to be redeemed in whole or in part at the address shown on the registration boaks maintained by the Registrar. All Bonds called for redemption will cease to bear interest after the specified redemption date, provided funds for their redemption are on deposit at the place of payment at that time. Series 1998B Bonds. The Series 1998B Bonds are not subject to redemption prior to maturity. Application of Bond Proceeds The Series 1998A Bonds. The Series 1998A Bonds are being issued to refund the Town's Sales Tax Revenue Bonds, Series 1991 (the "Series 1991 Bonds"), currently outstanding in the principal amount of $2,080,000, and $5,880,000 of the Town's Sales and Use Tax Revenue Refunding and Improvement Bonds, Series 1992B (the "Series 1992B Bonds") currently outstanding in the amount of 02-9565.04 4 ~ $13,385,000. In addition, $765,000 of the Series 1992B Bonds not being refunded by the Series 1998A Bonds will be refunded with the Series 1998B Bonds, as described hereafter. The Series 1998B Bonds. The Series 1998B Bonds are being issued to refund a portion of the Series 1992B Bonds, representing a portion of the maturities of June l, 1999 and June 1, 2000 currently outstanding in the principal amount of $765,000. The Series 1998B Bonds cannot be issued on a tax- exempt basis for federal tax purposes due to federal tax regulations restricting the number of tax-exempt advance refundings available to governmental entities. Proceeds of the Series 1998A Bonds, together with proceeds of the Series 1998B Bonds and other legally available moneys of the Town, will be used to refund the Series 1991 Bonds and a portion of the Series 1992B Bonds. The Series 1991 Bonds maturing on and after December 1, 2002 are subject to optional redemption by the Town on December 1, 2001, at a price of par and accrued interest (without redemption premium), and the Series 1992B Bonds maturing on June 1, 2005 are subject to optional redemption by the Town on December l, 2002, at a price of par plus accrued interest and a redemption premium of 1%. Those refunded Bonds will be called at their first optional redemption dates and paid from moneys on deposit in the Escrow Fund. Moneys in the Escrow Fund will also be used to pay principal and interest when due on the Series 1991 Bonds maturing on December 1, 1998 through 2001 and on certain portions of the Series 1992B Bonds maturing on June 1 in the years 1999 through 2002. The Escrow for the Refunded Bonds. Pursuant to an Escrow Agreement (the "Escrow Agreement") entered into between the Town and the trustee for the Series 1991 Bonds and Series 1992B Bonds, The Bank of Cherry Creek, in Denver, Colorado (the "Escrow Bank"), the net proceeds of the Bonds will be deposited in a special fund and separate trust account (the "Escrow Fund") to be established with the Escrow Bank and used by the Escrow Bank, on behalf of the Town, to fund the beginning cash balance in the Escrow Account and to acquire direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States of America (the "Federal Securities"), which together with the interest earnings thereon, shall be at least sufficient to pay the principal of, premium if any, and interest on the Refunded Bonds through December 1, 2001, in the case of the Series 1991 Bonds, and through December l, 2002, in the case of the Series 1992B Bonds, on which dates the Refunded Bonds of each series which have not matured will be called for prior redemption. The accuracy of the mathematical computations of the adequacy of cash and Federal Securities to be held in the Escrow Account, together with the interest to be earned thereon, to pay the amounts set forth above, will be verified by Van Schooneveld & Co., Inc., Certified Public Accountants, Greenwood Village, Colorado. Application of Bond Proceeds. The estimated source and use of the proceeds of the Series 1998A Bonds is as follows: SOURCES Bond Proceeds Total USES Deposit to Escrow Account Bond issuance costs, and underwriting discount...................................... Total ")See "MISCELLANEOUS-Undervvriting." 02-9565.04 5 The estimated source and use of the proceeds of the Series 1998B Bonds is as follows: SOURCES Bond Proceeds Total USES Deposit to Reserve Account Deposit to Escrow Account Bond issuance costs, and underwriting discount(') Total ")See "MISCELLANEOUS-Underwriting." Security for the Bonds Special Revenue Obligations. The Bonds are special obligations of the Town payable from Pledged Revenues. Neither the Bonds nor the interest thereon constitute a debt or indebtedness of the Towa, the County, the State, nor any political subdivision thereof within the meaning of any provision or limitation of the constitution or laws of the State or the Town Charter. T'he Bonds are not general obligations of the Town, and do not constitute a lien on any properties owned by or located within the boundaries of the Town. The owners of the Bonds do not have the right to require or compel the exercise of the ad valorem property taxing power of the Town or of any other taxing entity for payment of the principal of or interest on the Bonds. The owners of the Bonds may not look to the Town's General Fund or any other funds of the Town other than Pledged Revenues for payment of the Bonds. Therefore, the punctual payment of the principal of and interest on the Bonds is dependent on the generation of Pledged Revenues in an amount sufficient to meet debt service requirements on the Bonds. Revenues generated by one half of the Sales Tax previously have been pledged to outstanding Town obligations. As to those revenues, the Bonds will have a lien on a parity with the Series 1992B Bonds that remain outstanding after this Refunding. The Bonds will be secured by a first and prior lien, but not an exclusive first lien, on the remaining Pledged Revenues on a parity with the Series 1992B Bonds and any Additional Bonds that may be issued in the future. See "APPENDIX B-SUNIMARY OF BOND ORDINANCE" which sets forth the flow of funds and the application of the Pledged Revenues. Additional Obligations. The Bond Ordinance reserves to the Town the right, subject to stated conditions, to issue one or more series of additional bonds and other types of securities and obligations payable wholly or in part from Pledged Revenues and secured by a lien thereon on a parity with the lien of the Bonds. See "APPENDIX B-SUMMARY OF BOND ORDINANCE-Additional Bonds". Bond Ordinance Irrepealable. The Bond Ordinance provides that after any of the Bonds are issued, such ordinance shall remain irrepealable, but amendable, until the Bonds and the interest accruing thereon shall have been fully paid, satisfied, and discharged. Future Changes in Laws. Various Colorado laws and constitutionaI provisions apply to the imposition, collection, and expenditure of the Sales Tax and the operation of the Town. There is no assurance that there will not be any change in the interpretation of, or addition to the applicable laws, provisions, and regulations which would have a material effect, directly or indirectly, on the affairs of the Town and the imposition, collection, and expenditure of the Sales Tax. 02-9565.04 6 Limitations on Remedies Available to Owners of Bonds. There is no bond trustee or similar person to monitor or enforce the provisions of the Bond Ordinance and the holders of Bonds should be prepared to enforce such provisions themselves if the need to do so arises. In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principat of the Bonds. Consequently, the remedies of the owners of Bonds (consisting primarily of an action in the nature of mandamus requiring the Town and certain other public officials to perform in accordance with the terms of the Bond Ordinance) may have to be enforced from year to year. T'he enforceability of the rights and remedies of the owners of Bonds, and the obligations incurred by the Town in issuing the Bonds, are subject to the following: the federal bankruptcy code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equity principles which may limit the specific enforcement under state law of certain remedies; the exercise by the United States of America of the powers granted to it by the federal Constitution; and the reasonable and necessary exercise, in certain exceptional situarions, of the police power inherent in the sovereignty of the State of Colorado and its governmental bodies in the interest of serving a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise, and consequently may entail risks of delay, limitation, or modification of their rights. Book-Entry-Only System The information in this section concerning The Depository Trust Company (`DTC) and DTC's book-entry-only system has been obtained from DTC, and the Town and the Underwriter take no responsibiliry for the accuracy thereof. DTC will act as securities depository for the Bonds. The Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully registered bond certificate is to be issued for each of the Bonds, as set forth on the cover page hereof, each in the aggregate principal amount of such maturity and will be deposited with DTC. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a"clearing corporation" within the meaning of the New York Uniform Commercial Code, and a"clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges, in deposited securities through electronic computerized book-entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants include securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations ("Direct Participants"). DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as securities brokers and dealers, banks and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). The rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. Purchases of the Bonds under the DTC system must be made by or through Direct Participants, who are to receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect 02-9565.04 7 ~ Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. For every transfer and exchange of the Bonds, the beneficial owner may be charged a sum sufficient to pay any tax, fee or other governmental charge to be paid with respect thereto. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system far the Bonds is discontinued. So long as all Bonds are registered in the name of Cede & Co., as nominee of DTC, or its registered assignee, all payments of interest and principal are required to be delivered to the order of Cede & Co. or its registered assignee, in next-day funds. Principal and interest payments on the Bonds will be made to DTC or its nominee, Cede & Co., as registered owner of the Bonds. Upon receipt of moneys, DTC's current practice is to immediately credit the accounts of the Participants in accordance with their respective holdings shown on the records of DTC. Payments by Participants and Indirect Participants to beneficial owners are governed by standing instructions and customary practices, as is now the case with municipal securities held for the accounts of customers in bearer form or registered in nominee name, and will be the responsibility of such Participant or Indirect Participant and not of DTC, the Town, the Remarketing Agent, the Paying Agent or the Trustee, subject to any statutory and regulatory requirements as may be in effect from time to time. To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no lrnowledge of the actual Beneficial Owners of Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Participants remain responsible for keeping accounts of their holdings on behalf of their customers. The Town, the Trustee and the Paying Agent will recagnize DTC or its nominee as the Owner for all purposes, including notices and consents. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Notices of redemption, mandatory tender for purchase and other communications with respect to the Bonds shall be sent to Cede & Co. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Each person for which a Participant, as nominee, has an interest in the Bonds should make arrangements with such Participant to have all notices of redemption, mandatory tender for purchase and other communications with respect to the Bonds which may affect such person forwarded in writing by such Participant and to be notified of all interest payments. Neither DTC nor Cede & Co. will consent or vote with respect to Bonds. Under its usual procedures, DTC mails an omnibus proxy to the issuer as soon as possible after the record date. The omnibus proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the omnibus proxy). The Town and the Paying Agent shall be entitled to treat the person in whose name any Bond is registered (DTC or its nominee) as the absolute owner thereof for all purposes and any applicable laws, and, except as described below, (1) all payments of interest, principal, redemption price and purchase 02-9565.04 8 price made by the Paying Agent shall be delivered only to DTC or Cede & Co., as its nominee, (2) all notices delivered by the Town or the Paying Agent shall be delivered only to DTC or Cede & Co., as its nominee, and (3) all rights of Owners, including without limitation voting rights, rights to approve, waive or consent and rights to transfer and exchange Bonds, shall be rights of DTC or Cede & Co., as its nominee. The Participants will rely on DTC, and the Beneficial Owners of the Bonds will rely on the Participants or an Indirect Participant for timely payments and notices, the execution of tenders or other rights as directed by the Beneficial Owners, and for otherwise making available to the Beneficial Owners, rights of registered owners. No assurance can be provided that in the event of any banlQUptcy or insolvency of DTC, a Participant or an Indirect Participant through which a Beneficial Owner holds interests in the Bonds, payments will be made by DTC, the Participant or the Indirect Participant on a timely basis. THE TOWN AND THE PAYING AGENT WILL NOT HAVE ANY RESPONSIBILITY OR OBLIGATION TO PARTICIPANTS, INDIRECT PARTICIPANTS, OR ANY BENEFICIAL OWNER WITH RESPECT TO (I) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC, ANY PARTICIPANf OR ANY INDIRECT PARTICIPANT; (II) THE PAYMENT BY DTC OR ANY PARTICIPANT OR INDIRECT PARTICIPANT OF ANY AMOUNT WIT'H RESPECT TO T'HE PRINCIPAL OF OR INTEREST ON OR PURCHASE PRICE OF THE BONDS; (III) THE TIMELY EXERCISE BY DTC, ANY PARTICIPANT OR ANY INDIRECT PARTICIPANT OF ANY DIRECTION OF A BENEFICIAL OWNER WITH RESPECT TO ANY TENDER OF BONDS; (IV) ANY NOTICE WHICH IS PERNIITTED OR REQUIRED TO BE GIVEN TO OWNERS; (V) THE SELECTION BY DTC OR ANY PARTICIPAN'T OR INDIRECT PARTICIPANT OF ANY PERSON TO RECEIVE PAYMENT IN THE EVENT OF A PARTIAL REDEMPTION OF THE BONDS; OR (VI) ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS OWNER OF THE BONDS. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the Town. Under such circumstances, in the event that a successor securities depository is not obtained, bond certificates are required to be printed and delivered. The Town may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, bond certificates will be printed and delivered. Debt Service Coverage The following table sets forth the maximum annual coverage factor which would have been provided by the Pledged Revenues for the past five years for the combined maximum annual debt service on the Bonds, the Series 1992A Bonds and the Series 1992B Bonds that will be outstanding on the date of issuance of the Bonds. See "THE BONDS-Security for the Bonds." The debt service requirements for the Bonds, the Series 1992A Bonds and the Series 1992B Bonds that will be outstanding on the date of issuance of the Bonds, are set forth in "Debt Service Requirernents" hereafter. 02-9565.04 9 TABLE I Debt Service Coverage 1993 1994 1295 1996_ 1997 Pledged Revenues $12,395,718 $13,007,013 $13,030,448 $13,719,308 $14,747,419 Maximum Annual Debt Service 2,328,190 2,328,190 2,328,190 2,328,190 2,328,190 Coverage Factor 5.32x 5.59x 5.60x 5.89x 6.33x Source: The Underwriter The receipt of Pledged Revenues is subject to the elastic nature of consumer spending and the strength of the local economy. This causes Sales Tax revenue to increase along with the higher prices brought about by inflation, but also causes collections to be vulnerable to adverse economic conditions and reduced consumer confidence which would result in reduced spending. Because the Town is primarily a ski and summer resort economy, Sales Tax revenue is also subject to local weather conditions, international economic conditions and exchange rates for foreign currency and other factors. Such changes in economic and other conditions will cause actual Sales Tax collections to fluctuate. Accordingly, there can be no assurance that collections of Sales Tax revenue will continue at the levels stated above, or that coverage factors in future years will remain at such levels. See "THE SALES TAX.,, Debt Service Requirements Set forth in the following table are the combined debt service requirements for the Bonds, the Series 1992A Bonds and the unrefunded portion of the Series 1992B Bonds. See the cover of this Official Statement for the actual interest rates for each maturity of the Bonds. Even though the Series 1992A Bonds are general obligation bonds of the Town, they are included within this chart since they are currently being paid from sales tax revenues. 02-9565.04 10 '1'A131,E 11 Dcbt Scivicc Rcquircmcnts 'P011'N OF VAIL, CO/Al2AD0 COMQIMsD OI:ITI' SERVICF. Af'TER REPIINDING Gcncral Obligalion Ilonds Sales'i'ax Rrvcnuc Itonds Tax-I?xcmpl Salcs 7'ax Kcvcnuc Ilonds '1'axablc Salcs'faz Ncvcnuc [3mtds Combincd Urbl Scrvlcc Scrics 1992A Scrics 199211 Scrics 1998A Scrics 1998t3 Annual Datc Principal Inlcrest Total Principal Inlcrest Tolal Priocipal Intcrest Total Principal Intcrest Total Principal Drtcrest Tolal Tolai 12/01/98 400,000 198.650 598,650 0 201,126 201,126 0 99,791 99,791 0 12,385 12,385 400,000 511.953 911,953 911,953 06/01/99 0 188,450 188,450 615,000 201,126 816,126 0 199,583 199,583 0 24,770 24,770 615,000 613,929 1,228,929 12/01/99 500,000 188,450 688,450 0 184,829 184,829 0 199,583 199,583 0 24,770 24,770 500,000 597,631 1,097,631 2,326,560 06/01/2000 0 175,200 175,200 365,000 184,829 549,829 0 199,583 199,583 0 24,770 24,770 365,000 584,381 949,381 12/01/2000 800,(N)0 175,200 975,200 0 174,791 174,791 0 199,583 199,583 0 24,770 24,770 800,000 574.344 1,374,344 2,323,725 06/01/2001 0 153,200 153,200 230,000 174,791 404,791 0 199,583 199,583 0 24,770 24,770 230,000 552,344 782,344 12/01/2001 1,000,000 153,200 1,153,200 0 168,294 168,294 0 199,583 199,583 0 24,770 24,770 1,000,000 545,846 1,545,846 2,328,190 06/01/2002 0 124,950 124,950 250,000 168,294 418,294 0 199,583 199,583 0 24,770 24,770 250,000 517,596 767,596 12/01/2002 1,050,000 124,950 1,174,950 0 161,044 161,044 0 199,583 199,583 0 24,770 24,770 1,050,000 510,346 1,560,346 2,327,942 06/01/2003 0 94,500 94,500 65,000 161,044 226,044 0 199,583 197,583 0 24,770 24,770 65,000 479,896 544,896 12/01/2003 1,150,000 94,500 1,244,500 155,000 159,094 314,094 0 199,583 199,583 0 24,770 24,770 1,305,000 477,946 1,782,946 2,327,842 06/01/2004 0 60,000 60,000 35,000 154,444 189,444 0 199,583 199,583 0 24,770 24,770 35,000 439,796 473,796 12/01/2004 1,250,000 60,000 1,310,000 165.000 153,394 318,394 0 199,583 199,583 0 24,770 24,770 1,415,000 437,746 1,852,746 2,326,542 06/01/2005 0 22,500 22,500 630,000 148,444 778,444 0 199,583 199,583 0 24,770 24,770 630,000 395,296 1,025,296 12/01/2005 750,000 22,500 772,500 175,000 129,544 304,544 0 199,583 199,583 0 24,770 24,770 925,000 376,396 1,301,396 2,326,692 06/01/2006 0 0 0 1,130,000 124,184 1,254,184 0 199,583 199,583 0 24,770 24,770 1,130,000 348,537 1,478,537 12/01/2006 0 0 0 185,000 89,578 274,578 0 199,583 199.583 350,000 24,770 374,770 535,000 313.931 848,931 2,327,468 06/01/2007 0 0 0 190,000 83,913 273,913 0 199,583 199,583 0 14,183 14,183 190,000 297,678 487,678 12/01/2007 0 0 0 200,000 78,094 278,094 880,000 199,583 1,079,583 465,000 14,183 479,183 1,545,000 291,859 1,836,859 2,324,537 06/01/2008 0 0 0 205,000 71,969 27(,9(9 0 180,003 180,003 0 0 0 205,000 251,971 456,971 12/01/2008 0 0 0 210,000 65,691 275,691 1,410,000 180,003 1,590,003 0 0 0 1,620,000 245,693 1,865,693 2,322,664 06/01/2009 0 0 0 215,000 59,259 274,259 0 148,278 148,278 0 0 0 215,000 207,537 422,537 12/01/2009 0 0 0 225,000 52,675 277,675 1,475,000 148,278 1,623,278 0 0 0 1,700,000 200,953 1,900,953 2,323,490 06m uzn i o 0 0 0 230,000 45,784 275,784 0 114,721 114,721 0 0 0 230,000 160,506 390,506 12!01/2010 0 0 0 240,000 38,741 278,741 1,540,000 114,721 1,654,721 0 0 0 1,780,000 153,462 1,933,462 2,323,968 06/01/2011 0 0 0 245,000 31,391 276,391 0 78,916 78,916 0 0 0 245,000 110,307 355,307 12/01/2011 0 0 0 250,000 23,888 273,888 1,615,000 78,916 1,693,916 0 0 0 1,865,000 102,804 1,967,804 2,323,111 06/0112012 0 ti 0 260,000 16,231 276,231 0 40,560 40,560 0 0 0 260,000 56,791 316,791 12/01/2012 0 0 0 270,000 8,269 278,269 1,690,000 40,560 1,730,560 0 0 0 1,960,000 48,829 2,008,829 2,325,620 6,900,000 1,836,250 8,736,250 6,740,000 3,314,755 10,054,755 8,610,000 4,817,241 13,427,241 815,000 437,071 1,252,071 23,065,000 10,405,304 33,470,304 33,470,306 MUNICIPAL BOND INSURANCE The following information has been furnished by NIBIA Insurance Corporation for use in this Official Statement. Reference is made to APPENDIX D for a specimen of the Insurer's policy. None of the District, the Underwriter or the Paying Agent make any representation or warranty regarding the accuracy or completeness of such information. The MBIA Insurance Corporation Insurance Policy The Insurer's policy unconditionally and irrevocably guarantees the full and complete payment required to be made by or on behalf of the Issuer to the Paying Agent or its successor of an amount equal to (a) the principal (either at the stated maturity or by an advancement of maturity pursuant to a mandatory sinking fund payment) and interest on, the Bonds as such payments shall become due but shall not be so paid (except that in the event of any acceleration of the due date of such principal by reason of mandatory or optional redemption or acceleration resulting from default or otherwise, other than any advancement of maturity pursuant to a mandatory sinking fund payment, the payrnents guaranteed by the Insurer's policy shall be made in such amounts and at such times as such payments of principal would have been due had there not been any such acceleration); and (b) the reimbursement of any such payment which is subsequently recovered from any owner of the Bonds pursuant to a final judgment by a court of competent jurisdiction that such payment constitutes an avoidable preference to such owner within the mear.ing of any applicable bankruptcy Iaw (a "Preference"). The Insurer's policy does not insure against loss of any prepayment premium which may at any time be payable with respect to any Bond. The Insurer's policy does not, under any circumstance, insure against loss relating to: (a) optional or mandatory redemptions (other than mandatory sinking fund redemptions); (b) any payments to be made on an accelerated basis; (c) payments of the purchase price of Bonds upon tender by an owner thereof; or (d) any Preference relating to (a) through (c) above. The Insurer's policy also does not insure against nonpayment of principal of or interest on the Bonds resulting from the insolvency, negligence or any other act or omission of the Paying Agent or any other paying agent for the Bonds. Upon receipt of telephonic or telegraphic notice, such notice subsequently confirmed in writing by registered or certified mail, or upon receipt of written notice by registered or certified mail, by the Insurer from the Paying Agent or any owner of a Bond the payment of an insured amount for which is then due, that such required payment has not been made, the Insurer on the due date of such payrnent or within one business day after receipt of notice of such nonpayment, whichever is later, will make a deposit of funds, in an account with State Street Bank and Trust Company, N.A., in New York, New York, or its successor, sufficient for the payment of any such insured amounts which are then due. Upon presentment and sunender of such Bonds or presentment of such other proof of ownership of the Bonds, together with any appropriate instruments of assignment to evidence the assigrunent of the insured amounts due on the Bonds as are paid by the Insurer, and appropriate instruments to effect the appointment of the Insurer as agent for such owners of the Bonds in any legal proceeding related to payment of insured amounts on the Bonds, such instruments being in a form satisfactory to State Street Bank and Trust Company, N.A., State Street Bank and Trust Company, N.A. shall disburse to such owners or the Paying Agent payment of the insured amounts due on such Bonds, less any amount held by the Paying Agent for the payment of such insured amounts and legally available therefor. The Insurer is the principal operating subsidiary of MBIA Inc., a New York Stock Exchange listed company. MBIA Inc. is not obligated to pay the debts of or claims against the Insurer. The Insurer is domiciled in the State of New York and licensed to do business in and subject to regulation under the laws of all 50 states, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of 02-9565.04 12 the Northern Mariana Islands, the Virgin Islands of the United States and the Territory of Guam. The Insurer has two European branches, one in the Republic of France and the other in the Kingdom of Spain. New York has laws prescribing minimum capital requirements, limiting classes and concentrations of investments and requiring the approval of policy rates and forms. State laws also regulate the amount of both the aggregate and individual risks that may be insured, the payment of dividends by the Insurer, changes in control and transactions among affiliates. Additionally, the Insurer is required to maintain contingency reserves on its liabilities in certain amounts and for certain periods of time. Effective February 17, 1998, the Company acquired all of the outstanding stock of Capital Markets Assurance Corporation ("CMAC") through a merger with its parent CapMAC Holdings Inc. Pursuant to a reinsurance agreement, CMAC has ceded all of its net insured risks (including any amounts due but unpaid from third party reinsurers), as well as its unearned premiums and contingency reserves to MBIA. The Company is not obligated to pay the debts of or elaims against CMAC. As of December 31, 1997, the Insurer had admitted assets of $5.3 billion (audited), total liabilities of $3.5 billion (audited), and total capital and surplus of $1.8 billion (audited) determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities. As of March 31, 1998, the Insurer had admitted assets of $5.4 billion (unaudited), total liabilities of $3.6 billion (unaudited), and total capital and surplus of $1.8 billion (unaudited) determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities. Furthermore, copies of the Insurer's year end financial statements prepared in accordance with statutory accounting practices are available without charge from the Insurer. A copy of the Annual Report on Form 10-K of MBIA Inc. is available from the Insurer or the Securities and Exchange Commission. The address of the Insurer is 113 King Street, Armonk, New York 10504. The telephone number of the Insurer is (914) 273-4545. Moody's Investors Service ("Moody's") rates the claims paying ability of the Insurer "Aaa." Standard & Poor's Ratings Services, a division of The McGraw Hill Companies, Inc., rates the claims paying ability of the Insurer "AAA." Fitch IBCA, Inc. (formerly known as Fitch Investors Service, L.P.) rates the claims paying ability of the Insurer "AAA." Each rating of the Insurer should be evaluated independently. The ratings reflect the respective rating agency's cunent assessment of the creditworthiness of the Insurer and its ability to pay claims on its policies of insurance. Any further explanation as to the significance of the above ratings may be obtained only from the applicable rating agency. The above ratings are not recommendations to buy, sell or hold the Bonds, and such ratings may be subject to revision or withdrawal at any time by the rating agencies. Any downward revision or withdrawai of any of the above ratings may have an adverse effect on the market price of the Bonds. The Insurer does not guaranty the market price of the Bonds nor does it guaranty that the ratings on the Bonds will not be revised or withdrawn. 02-9565.04 13 THE SALES TAX The Pledged Revenues for the payment of the debt service on the Bonds consists of the revenue derived from the Town's 4% Sales Tax. In 1998, the Town allocated 55% of the Sales Tax revenue to the General Fund and 45% to the Capital Projects Fund to be used to pay for or finance capital improvements projects. Those percentages are set by the Council each year as a part of the annual budget process. See "THE BONDS-Security for the Bonds." The following information includes a descriprion of the collection, administration, and enforcement procedures for the Sales Tax. Authority for the Imposition of the Sales Tax The Sales Tax is imposed pursuant to the Town Charter and in conformance with the State Constitution and is collected pursuant to Chapter 3 of the Town Municipal Code (the "Sales Tax Code"). The Town Charter provides that a sales tax can be adopted only if it has been approved by a majority of the registered electors of the Town. Effective January 1, 1968, the Town imposed a voter approved 2% sales tax, which tax was increased to 4% effective in 1979 after receiving voter approval thereon (the "Sales Tax"). The Town's 4% Sales Tax, when combined with the state's 3% sales tax and Eagle County's 1.5% sales tax brings the total sales taxes in effect within the Town to 8.5%. Description of Sales Tax The Sales Tax is levied on the purchase price paid or charged upon all sales, purchases, rentals, and leases of tangible personal property at retail (including food) and on specific services as provided in Chapter 3. "Sale" or "Purchase" is defined in Chapter 3 to include installment and credit sales and exchanges of property as well as the sale of tangible personal property for money. Specific services subject to the Sales Tax include: telephone, pay television, gas, electric, and steam services; the leasing of tangible personal property; and the furnishing of rooms or accommodations to a person who for a consideration uses, possesses, or has the right to use or possess any room in a hotel, motel, condominium, guest house, or like accommodation for less than 30 consecutive days. The Sales Tax is imposed on all taxable transactions in the Town, subject to certain stated exemptions including exemptions for: sales to the United States government and to the State and political subdivisions thereof in their governmental capacities; sales of cigarettes; sales to charitable organizations; sales which the Town is prohibited from taxing under the constitution or laws of the United States, the State or the Charter; sales made to nonprofit schools; medical supplies; sales of certain construction and building materials if picked up by the purchaser or if the purchaser gives a building permit number to the retailer; transfers of tangible personal property without consideration to a vendee outside the Town for use outside the Town in selling products normally sold at wholesale by the transferor; all commodiries taxed under the provisions of Article 27, Title 39, Colorado Revised Statutes; the sale of special fuel as defined in Section 201(8) of Article 27, Title 39, Colorado Revised Statutes, used for the operation of farm vehicles on farms and ranches; sales of construction and building materials to contractors for use in building and repair of public works owned or used by: (a) the United States, the State or its political subdivisions in their governmental capacities, (b) charitable organizations, (c) nonprofit schools; sales to and purchases of tangible personal property by a manufacturer, which property becomes an ingredient or component of the product or service which is manufactured; certain tangible personal property which becomes a constituent part of a food product intended for sale at retail for human consumption; sales and purchases of electricity, coal, gas, fuel oil, coke, and nuclear fuel for use in processing, manufacturing, 02-9565.04 14 mining, refining, irrigation, construction, telecommunication services, and transportation services, and all industrial uses; sales and purchases of refectory materials and carbon electrodes used in manufacturing iron and steel for profit and sales and purchases of inorganic chemicals used in processing vanadium - uranium ores; sales and purchases of newsprint and printer's ink for use by newspapers and commercial printers; sales and purchases of newspapers; sales of tangible personal property purchased or sold within the Town if delivered outside the Town to the purchaser; and the purchase of food by food stamps or government vouchers. For a complete discussion of exemptions from the Sales Tax, reference is made to Chapter 3, Section 4-3-3-6. Manner of Collection of the Sales Tax The Town Manager is responsible for the proper administration of the Sales Tax and, pursuant to Chapter 3, has adopted rules and regulations for such administration. The Town Manager is assisted with respect to the Sales Tax by the Finance Director of the Town. A sales tax license is required for any person to engage in the business of selling tangible personal property at retail or providing services that are taxable under Chapter 3 in the Town. The Finance Director issues such licenses and may revoke the license of any vendor who is found by him to have violated any provision of Chapter 3. Every vendor is liable and responsible for the payment of an amount equal to 4% of all sales made by him of tangible personal property or services subject to the Sales Tax. Vendors make a return of sales to the Finance Director before the twentieth day of each month for the preceding calendar month and remit 4% of such sales with the return. In the case of a dispute between a vendor and a purchaser regarding the exemption from the taxation of any sale or service, the vendor must collect and remit the Sales Tax and the purchaser must make application to the Finance Director for a refund. The Finance Director examines such applications for refund, which are to be submitted within 60 days after the purchase, and gives notice to the applicants of his decisions thereon. An applicant has the right to a hearing if he disagrees with the decision of the Finance Director. The burden of proving that sales or services are exempt from the Sales Tax is on the person making the claim. Claims also may be made for refund in the event tax moneys were paid in error. Such claims for refund must be made within three years of the date of purchase. The Town maintains. a high standard of collection of its Sales Taxes revenue. The Town has employed a Sales Tax Administrator since 1988 to effect a more aggressive collection effort and increase collection compliance. Remedies for Delinquent Taxes The Sales Tax constitutes a first and prior lien on the tangible personal property and business fixtures of or used by any vendor under lease, title retention contract, or other contractual arrangement, except stock of goods sold or for sale. If a retailer neglects or refuses to make a return in payment of the Sales Tax or to pay any Sales Tax as required by Chapter 3 within five business days of the date due, then the Finance Director makes an estimate, based on available information, of the amount of Sales Tax due for the period for which the retailer is delinquent and adds to such estimate the amount of $15 or 10% of the delinquency, whichever is greater, and interest on such delinquent taxes at the rate of 1% per month. Written notice of the estimated Sales Tax, penalty and interest is sent by the Finance Director by first-class mail to the last known address of the delinquent taxpayer. Within 20 days after such notice is mailed, the taxpayer may petition the Finance Director for a hearing and after the Finance Director's final decision may appeal to the District Court or the State Department of Revenue. The written decision of the Finance Director is mailed to the petitioner following the hearing and becomes final 30 days after 02-9565.04 15 such mailing unless proceedings are begun for review by the courts or for a hearing conducted by the State Department of Revenue. If any taxes, penalty or interest imposed and shown due by returns are not paid within five days after they are due, the Finance Director mails a delinquency notice to the taxpayer, setting forth the amount of the tax, penalties and interest due and that the Town claims a first and prior lien on the taxpayer's tangible property (with certain exceptions). At any time when taxes due are unpaid the Finance Director may issue a warrant for the levy, seizure and sale of real and personal property of the taxpayer, as provided in Chapter 3, Section 4-3-5-1. The Finance Director may, for good cause shown, waive penalties and interest. The Town also may use other available remedies for the collection of Sales Taxes. Sales Tax Data The following table sets forth Sales Tax collections since 1993. TABLE III History of Town 4% Sales Taac Receipts Sales Tax Percent Ye_ar Collections Increas~ 1993 $12,395,718 1994 13,007,013 4.93% 1995 13,030,448 0.18 1996 13,719,308 5.29 1997 14,747,419 7.49 199811) 8,024,087 Sales Tax collections through May 31, 1998. Source: Town of Vail Finance Deparirnent The following table presents a comparison of monthly Sales Tax receipts for the 12-month periods ended May 31, 1997 and 1998, based on receipts from the Town's 4% Sales Taac. For the 12 month period ended May 31, 1998, the Town had experienced a 4.6% increase in Sales Tax revenues as compared to the twelve-month period ended May 31, 1997. Sales Tax receipts generally lag retail sales by one month, however, the Sales Tax collections in the following table are shown in the month the taxes were actually paid to the vendor. 02-9565.04 16 TABLE IV Monthly Comparison of Collections of Sales Tax 12-month Period Ended 12-month Period Ended May 31. 1997 Ma,y 31. 1998 Percent ChanQe Current Year Current Year Current Year Month M nt o Dat M nt To Date Month te June $ 594,907 $ 594,907 $ 630,366 $ 630,366 6.0% 6.0% July 963,717 1,558,624 1,043,637 1,674,003 8.3 7.4 August 990,650 2,549,274 1,073,430 2,747,433 8.4 7.8 September 630,453 3,179,727 637,831 3,385,264 1.2 6.5 October 413,573 3,593,300 472,836 3,858,100 14.3 7.4 November 601,208 4,194,508 707,166 4,565,266 17.6 8.8 December 2,068,851 6,263,359 2,254,709 6,819,975 9.0 8.9 January 2,052,569 8,315,928 2,110,961 8,930,936 2.8 7.4 February 2,089,673 10,405,601 2,145,769 11,076,705 2.7 6.4 March 2,580,992 12,986,593 2,355,086 13,431,791 (8.8) 3.4 April 874,427 13,861,020 1,077,815 14,509,606 23.3 4.7 May 329,783 14,190,803 334,456 14,844,062 1.4 4.6 Source: Town of Vail Finance Department The following tables set forth information on ths Town's principal Sales Taac generators. Because of the confidential nature of the gross sales of the individual entities, the identity of vendors cannot be divulged by state law. TABLE V Sales Tax Collections by Principal Sales Tax Generators % of Total Annual Sales Tax Annual Sales Tax Paid by Total Annual Sales Tax Collections Generated by Year Ten Princinal Generators Collected by Town Ten Princinal Generators 1993 $3,486,974 $12,395,718 28.1°/a 1994 3,410,222 13,007,013 26.2 1995 3,830,907 13,030,448 29.4 1996 4,066,258 13,719,308 29.6 1997 4,315,365 14,747,419 29.3 Source: Town of Vail Finance Deparhnent. Town's Summary of Material Trends in Sales Tax Collections. The following comments regarding trends in the Town's Sales Tax collections have been provided primarily by the Town's Finance Director. The Town's Sales Tax collections have not demonstrated any predictable trend during the 1990's, although each year has shown an increase over the previous year. Sales Tax growth rates are not expected to be much greater than inflation due to maturation of the resort. 02-9565.04 17 The Town's 1998 budget anticipated a 3.5% increase in Sales Tax collections; however, through June 30, 1998, collections have shown an increase of 1.64% over the same period in 1997. Sales Tax coilections in 1997 were approximately 7.49% above collections in 1996. THE TOWN Description The Town of Vail is a municipal corporation and a political subdivision of the State of Colorado incorporated as a statutory town on August 26, 1966. The Town existed in that form until September 12, 1972, when the Charter was adopted by the electors of the Town. Vail, encompassing approximately five square miles, is a mountain community located in Eagle County in the central Rocky Mountains. The area's economy is based primarily on skiing and tourism. The Town is approximately 100 miles west of Denver on Interstate Highway 70. According to the Census Bureau, the 1997 population of permanent residents is 4,402. The Town estimates that its peak winter population of residents and visitors is approximately 35,000. See "Economic and Demographic Information-Population" and Development In and Surrounding the Town." Governing Body Under the provisions of its Charter, the Town has a council-manager form of government, and is governed by a seven-member Town Council elected at large, including a mayor and mayor pro tem, who are elected by thc Council from its membership. The Council holds regular meetings on the first and third Tuesdays of each. Special meetings are called at the request of the Mayor or any two members of the Council. As compensation for their services, Councilmembers receive salaries of $500 per month. The Mayor receives $1,000 per month. The present Councilmembers, their principal occupations, and terms of office are as follows: Town Council Name Position Term EUires Principal Occupation Rob Ford Mayor 2001 Business Investor Ludwig Kurz Mayor Pro Tem 2001 Resort Manager Kevin Foley Councilmember 1999 Waiter Bob Armour Councilmember 1999 Ski Instructor Michael Jewett Councilmember 1999 Store Clerk Sybill Navas Councilmember 2001 Business Owner Michael Arnett Councilmember 1999 Craftsman The Council effects its decisions through the passage of ordinances, resolutions, motions and orders. Every act making an appropriation, creating an indebtedness, authorizing the borrowing of money, levying a tax, authorizing the sale of any real property, establishing any rule or regulation for the violation of which a penalty is imposed, or placing any burden upon or limiting the use of private property, must be done by ordinance. 02-9565.04 18 Colorado statutes and constitutional provisions reserve the right of the Town's electors to subject ordinances, other than emergency ordinances, to a referendum vote, or to propose ordinances by way of an initiative procedure. Administration The following are the Town's administrative personnel most directly involved in the issuance of the Bonds, including a brief description of their relevant expezience. Town Manager. The Town Manager is the chief executive and administrative officer of the Town. As such he possesses and exercises all the executive powers and administrative powers vested in the Town. He is responsible for implementing Council policy and directives. The Town Manager directs, oversees, and manages all aspects of the municipal operations, including financial management, human resources, public safety, public transit, and capital construction. Robert McLaurin was appointed Town Manager of Vail in December 1993. Prior to his appointment, he served as Town Manager of the Town of Jackson, Wyoming. He received his Masters of Planning degree from the University of Wyoming in 1985. He also attended Senior Executive institute at the University of Virginia. Assistant Town Manager. Pam Brandmeyer was Town Clerk from April 1983 to July 1990, when she was placed in charge of the Community Relations Division and named Assistant to the Town Manager. From June 1980 until her appointment as Town Clerk, she was secretary to the police chief and municipal court clerk. Prior to her employment by the Town, Ms. Brandmeyer taught middle and high school English for several years. Ms. Brandmeyer received her Bachelor of Arts degree in secondary English from the University of Northern Iowa. She was designated a Certified Municipal Clerk by the International Institute of Municipal Clerks in June 1986. She has served as the Assistant Town Manager since 1994. Town Attorney. The Town attorney is the legal representative of the Town and advises the Council and Town officials in matters relating to their official powers and duties. Thomas Moorhead has been the Town attorney since 1993. Prior to that he was engaged in the private practice of law in Cincinnati, Ohio as a pariner in the firm of Lindhorst & Dreidame from 1987 until 1992. From 1976 until 1987, Mr. Moorhead acted as Chief Assistant in the Hamilton County Prosecutor's Office, Cincinnati, Ohio. Mr. Moorhead received his Bachelor's Degree from Xavier University in 1970 and his law degree from Salmon P. Chase College of Law in 1975. He was admitted to the Bar in Ohio in 1975 and to the Colorado Bar in 1993. Finance Director. The Finance Director oversees the following Town functions: fmance, budgets and financial planning, business license and sales tax administration, risk management, information services, and pension administration. Steve Thompson, CPA, was promoted to Finance Director in October, 1993. Steve Thompson became the Town's Controller in 1987, and was promoted to the Budget and Finance Manager in January, 1993. Previously he was employed by McMahan & Associates, P.C., Certified Pubic Accountants, as an audit manager. He also served as controller for the Upper Eagle Valley Water & Sanitation District. Mr. Thompson is a member of the Government Finance Officer's Association, the Colorado Society of Certified Public Accountants and the American Institute of Certified Public Accountants. He received his Bachelor of Science Degree in Accounting from the University of Colorado. Mr. Thompson became a Certified Public Account in 1983. 02-9565.04 19 Finance and Budget Manager. The Finance and Budget Manager supervises the accounting department and is responsible for audit management, budget management, and cash management. Christine B. Anderson, CPA, became the Town Controller in 1993 and was promoted to Finance and Budget Manager in 1996. Previously she was employed by McMahan & Associates in positions from staff auditor to junior partner. Ms. Anderson is a member of the Government Finance Officer's Association, the Colorado Society of Certified Public Accounts and the American Institute of Certified Public Accountants. She received a Bachelor of Science Degree in Business Management/Accounting from the Colorado State University in 1984. Ms. Anderson became a Certified Public Accountant in 1987 and earned her GFOA Certificate of Educational Acluevement in Governmental Accounting and Auditing in 1990. Sales Tax Administrator. The Sales Tax Administrator is responsible for the collection and administration of the Town's sales tax and business license fees. Sally Lorton has been the Town Sales Tax Administrator since 1989. Prior to becoming the Town Sales Tax Administrator, Sally filled various positions in the Town's Finance Department. Ms. Lorton has been employed by the Town since 1978. Town Employees and Benefits The Town currently employs 254 full time employees and 84 part time employees or seasonal employees. Benefits offered to Town employees include health, dental, and life insurance, short-term and long-term disability insurance, survivor income, retirement, recreational passes, paid vacation, sick time, and holidays. Town employees also receive workers compensation, a deferred compensation plan, unemployment, and pension benefits. Capital Projects A five-year capital projects plan is presented to the Council each year along with the budget for the succeeding year. The 1998 budget for the capital projects fund is $9.5 million. Major capita.l projects planned for this year include: streetscape improvements to Slifer Plaza, snowrnelt improvements to sidewalks and stairways surrounding the public transit terminal, and the purchase of new buses. 02-9565.04 20 The Town prepares a five-year capital projects budget. The following table sets forth the Town's actual revenues and expenditures in the Capital Project Fund for 1997 and the current projections of capital projects as presented by the Town. TABLE VI Capital Projects Fund 1997 Actual Projected 1998-2001 1997 1998 1999 2000 2001 Revenues Sales tax $6,858,131 $6,643,000 $6,908,720 $7,185,069 $7,185,069 Shares Project Costs 795,041 66,000 RETT loan payment 1,000,000 1,000,000 Vail commons lease 50,000 50,000 50,000 55,000 55,000 Federal Grants-Busses 1,000,000 Transfer from Other Funds 220,000 Grant-Vail Commons 225,000 Interest and other income _ 299,307 100,000 100,000 100,000 100,000 Total Revenue 9,227,479 9,079.000 7,058,720 7.,340,069 7,340,069 Expenditures Equipment purchases 735,373 2,377,715 531,034 976,055 976,055 Maintenance 336,341 697,885 438,000 349,000 349,000 Street reconstruction 30,394 46,300 2,738,000 Streetscape projects 448,136 3,030,811 Buildings & Improvements 1,525,381 550,000 3,530,000 3,530,000 Other improvements 455,374 322,000 284,000 220,000 220,000 Interchange improvements 5,974,676 640,116 Master Planning 33,227 61,000 Transfer to Parking 698,687 779,138 779,138 Transfer to Housing Fund 1,279,864 300,000 300,000 300,000 300,000 Transfer to Debt Service 1,313'227 1,462,247 1,571,684 2,073,905 2,073,905 Total Expenditures 12,131.993 9.488,074 6,561,405 8,228,,098 8.228,098 Revenues Over (Under) Expenditures (2,904,514) (409,074) 497,315 (888,029) (888,029) Beginning Fund Balance 4.556,533 1.652,019 1.242.945 1,740,260 71. 40,260 Ending Fund Balance S1 652.019 $1242,945 $1,741260 $ 852;231 $ 852.231 Source: Town of Vail 1997 Financial Statements and the Town 02-9565.04 21 Services Available to Town Residents The Town provides a variety of services to its residents, including a library, planning services, building inspection, environmental health, police protection, fire protection, public works (including street maintenance, snow removal and bus services), and municipal courts. Other utilities and services, as well as education and medical services, are provided by various public and private entities. Economic and Demographic Information The following information is provided to give prospective investors general information concerning selected economic and demographic conditions existing in the area within which the Town is located. The statistics presented below have been obtained from the referenced sources and represent the most current information available from such sources; however, certain of the information is released only after a significant amount of time has passed since the most recent date of the reported data and therefore, such information may not be indicative of economic and demographic conditions as they cunently exist or conditions which may be experienced in the near future. Further, the reported data has not been adjusted to reflect economic trends, notably inflation. Finally, other economic and demographic information not presented herein may be available concerning the area in which the Town is located and prospective investors may want to review such information prior to making their investment decision. The following information is not to be relied upon as a representation or guarantee of the Town or its offcers, employees, or advisors. Population. The following table sets forth permanent population statistics for the Town of Vail and Eagle County. TABLE VII Population Town of Percent Eagle Percent Percent Year Vail Chan e County Chan ge Colorado Chang~ 1950 4,488 1,325,089 1960 4,677 4.2% 1,753,947 32.4% 1970 484") 7,498 60.3 2,207,259 25.9 1980 2,261 367.1% 13,320 77.6 2,889,964 30.9 1990 3,659 61.8 21,928 64.6 3,294,394 14.0 1997 4,402 20.3 31,721 44.7 3,746,585 13.7 (')Town was incorporated in 1966. Source: U.S. Department of Commerce, Bureau of the Census Income. T'he following tables set forth historical median household effective buying income ("EBI"), the percentage of households by classification of EBI levels and per capita personal income for Eagle County, the State of Colorado, and the United States. 02-9565.04 22 TABLE VIII Median Household Effective Buying Income(') 1992 1993 _1994 1995 1996 Eagle County $41,750 $44,146 $46,604 $45,365 $47,503 Colorado 32,758 34,797 36,770 31,797 32,947 United States 33,178 35,056 37,070 32,238 33,482 The 1994 EBI (and historical numbers) were based on Personal Income rather than Money Income and are therefore not directly comparable with the later EBI figures. Source: "Survey of Buying Power," Sales & Marketing Management, 1993-1997 TABLE IX Percent of Households by Effective Buying Income Groups -1996 Less Than $20,000- $35,000- $50,000 $20,000 $34.999 $42.,992 and Over Eagle County 12.9% 19.5% 21.0% 46.6% Colorado 28.5 24.6 18.7 28.2 United States 29.0 23.2 18.3 29.5 Source: "Survey of Buying Power," Sales & Marketing Management, 1997 TABLE X Per Capita Personal Income 1992 1993 1994 1995 1996 Eagle County $25,084 $26,677 $27,929 $28,878 $30,398 Colorado 20,969 21,991 23,318 24,517 25,740 United States 20,261 20,915 22,186 23,359 24,435 Source: Colorado Division of Local Government, Demographic Section School Enrollment. The following table presents a five year history of school enrollment for Eagle County School District No. RE 50, the school district serving Town inhabitants. 02-9565.04 23 TABLE XI Fall School Enrollment School District 1993 1994 1995 1996 1997 Eagle County School District No. RE 50 3,260 3,515 3,865 3,954 4,200 Sources: Colorado Department of Education, Pupil Membership and Related Information Building Permit Activity. Before 1963, Eagle County's economy was based primarily on agriculture, forestry and mining. The County's development pattern changed significantly after 1962 with the establishment of the skiing and tourism industry at Vail Mountain. The rapid growth accompanying the ski resort development at Beaver Creek and Vail Mountain prompted County officials to develop a master plan for development. The plan is updated as necessary. The focus of the current plan is to develop a strong economy based primarily on the services industry, along with providing opportunities for economic diversification. During the 1960's and 1970's real estate development in the County was concentrated in the Vail area, with some residential development also occurring in the Eagle-Vail subdivision located approximately five miles west of Vail. By 1980, as the Vail area approached full buildout, real estate development intensified at the Beaver Creek resort, the Towns of Avon and Eagle and the Eagle-Vail, Singletree, Arrowhead, and Edwards subdivisions. Future new real estate development in the Town of Vail is limited because of the lack of available land, but residential development will continue as will commercial renewal projects. TABLE XII History of Estimated Building Activity in the Town of Vail Single Family Multi-Famil,}! Commercial Total All Year Pernuts Valuation nit Valuarion Permits Valuarion Pemuts Valuation 19931" 664 $62,306,909 19941" 615 42,379,243 1995 167 $33,995,936 109 $6,983,992 86 $7,743,187 362 48,723,142 1996 130 17,586,067 143 11,355,382 75 45,689,911 348 74,631,360 1997 177 32,180,160 139 14,323,640 109 26,569,753 425 73,073,553 (I ~No breakdown of pemuts or valuations is available for 1993 and 1994. Source: Town of Vail Building Department Foreclosure Activity. As set forth in the following table, there has been a significant decrease in the number of foreclosures filed in Eagle County since 1993. 02-9565.04 24 TABLE XIII History of Foreclosures in Eagle County Year Foreclosures Filed Percent Change 1993 103 1994 47 (54.4)% 1995 62 31.9 1996 78 25.8 1997 78 0.0 1998") 48 (')As of July 24, 1998. Source: Eagle County Public Trustee's Office Retail Sales. The retail trade sector employs a large portion of the work force of Eagle County and is important to the area's economy. The following table sets forth recent retail sales figures for the Town of Vail and Eagle County as reported by the Colorado Department of Revenue. TABLE XIV Retail Sales Town of Percent Eagle Percent Percent Year Vail h n e County an Colorado Chanee 1993 $348,706,316 $ 775,926,154 $59,857,733,952 1994 376,152,929 7.9% 905,488,149 16.7% 66,890,482,983 11.8% 1995 369,610,235 (1.7) 957,085,154 5.7 . 69,722,025,166 4.2 1996 412,298,009 11.5 1,081,800,913 13.0 74,895,340,417 7.4 1997 456,995,530 10.8 1,250,239,733 15.6 79,312,815,024 5.9 1998(') 183,542,203 427,892,313 20,409,123,465 (')Retail sales through March 31, 1998. Source: State of Colorado, Department of Revenue, Annual Reports 1993-1998 Tourism and Recreation. Tourism and skiing related businesses account for a significant portion of the employment and earned income of area residents with revenue being derived principally from retail trade, short-term lodging rentals, concessions, and restaurants. Summer activities in the area include boating, fishing, water skiing, camping, and hiking. Golfing is also available at numerous golf courses throughout the area. Winter activities include, among others, downhill skiing at Vail Mountain and Beaver Creek ski areas, as described hereafter, and cross country skiing, snowmobiling, and hunting. Beaver Creek and Vail Mountain ski areas are both owned and operated by Vail Resorts. The 1999 Alpine Ski World Championships will be hosted at the Vail-Beaver Creek ski areas. Full price daily lift ticket rates for both areas for the 1997-1998 ski season were $56.00. The two resorts posted 2,266,452 skier visits during the 1997-1998 ski season, down 2.8% from the 1996-1997 season. The two resorts have accounted for an average of approximately 19% of total skier visits in Colorado over each of the last five years. Vail Mountain is located within the White River National Forest and operates under permits from the U.S. Forest Service. The ski area is directly adjacent to the Town, and rises approximately 3,330 02-9565.04 25 vertical feet above the Town. There are 30 lifts, including ten express quadruple chairlifts including the enclosed Vista BahnTM Express, servicing approximately 4,644 acres of skiable terrain (347 of which are served by snowmaking facilities), making Vail the largest single ski area in North America Beaver Creek Resort is also located in the White River National Forest and operates under permits from the U.S. Forest Service. The ski area is approximately 10 miles southwest of Vail and rises approximately 4,040 vertical feet. There are 141ifts, including five express quadruple chairlifts, servicing approximately 1,625 acres of skiable terrain (547 of which are served by snowmaking facilities). In addition to the ski resorts in Eagle County, another major sld area in the State is Summit County, which hosts three major ski resorts that have accounted for an average of approximately 25% of total skier visits in Colorado over the past fve seasons. The Summit County ski areas are easily accessed via 1-70 and are located about 15 miles east of the Town, closer to Denver. Set forth below are the skier visits for the Beaver Creek and Vail Mountain ski areas from the 1993-94 ski season through the 1997-98 season, as well as skier visit data for the State. TABLE XV Skier Visits Ski Area 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 Vail Mountain 1,527,698 1,568,360 1,652,247 1,686,790 1,597,932 Beaver Creek 504,516 538,897 554,443 644,451 668,520 Eagle County Total 2,032,214 2,107,257 2,206.690 2.331,241 2,266,452 Percent Change 3.7% 4.7% 5.6% (2.8)% Colorado Total 11,164,232 11,105,106 11,387,058 11,845,052 12,006,649 Percent Change (0.5)% 2.5% 4.0% 1.4% Eagle County as Percent of State 18.2% 19.0% 19.4% 19.7% 18.9% Source: Colorado Ski Country U.S.A. Employment. The following tables set forth historical labor force estimates and the most recent employment statistics by industry for Eagle County and the State of Colorado. 02-9565.04 26 TABLE XVI Total Business Establishments and Employment - Eagle County Fourth Quarter Ended Fourth Quarter Ended December 31. 1996 December 31. 1997 12-Month Chanee Average Average Average Industr~2 i s Emnlovment Uni Em l~ovment nit Emplqyment Agriculture, Forestry & Fisheries 51 264 62 310 11 46 Mining - _(Z) - _(Z) 4 12 Construction 515 3,590 582 3,836 67 246 Manufacturing 49 469 46 429 (3) (40) Transportation, Communication & Public Utilities 76 706 95 875 19 169 Wholesale Trade 67 285 74 290 7 5 Retail Trade 496 5,653 523 6,029 27 376 Finance, Insurance & Real Estate 240 1,870 275 1,988 35 118 Services 615 8,089 696 8,948 81 859 Non-classifiable 22) - _(2) 6 13 Government 41 2.116 41 2.243 _0 127 Total 2•15g 23.070 2.404 24•972 244 1.906 Information provided herein reflects only those employers who are subject to state unemployment insurance law. (24nformation suppressed in accordance with U.S. Deparhnent of Labor guidelines. Source: State of Colorado, Division of Employment and Training, Colorado Employment and Wages Covered by Unemployment Insurance TABLE XVII Labor Force Estimates Eagle Coun _ Colorado Labor Percent Labor Percent Year Force Une=loved Force Unemployed 1993 14,653 5.2% 1,900,187 5.3% 1994 16,316 3.6 2,001,491 4.2 1995 17,452 3.3 2,087,518 4.2 1996 18,012 3.1 2,098,971 4.2 1997 18,890 2.8 2,158,169 3.3 1998") 22,136 2.1 2,193,041 3.3 (')Labor force estimates through March 31, 1998. Source: State of Colorado, Division of Employment and Training, Labor Market Informarion, Colorado Labor Force Review The following table sets forth selected major employers in Eagle County. According to County officials, the services and retail sectors together comprise the majority of total County employment. Traditionally these sectors are tourist related, seasonal and low paying, which is typical for smaller tourism-dependent Colorado communities. No independent investigation has been made of and there can 02-9565.04 27 be no representation as to the stability or financial condition of the entities listed below, or the likelihood that they will maintain their status as major employers in the County, TABLE XVIII Selected Major Employers Estimated Number Firm Product or Service of Emplovees Vail Resorts(2) Ski Resort 1,000(5,000)(') Eagle County School District RE-50 School District 350 Vail Cascade Resort Hotel 500 Town of Vail Municipal government 254(84)(3) Eagle County County government 350 Sonnenalp Resort at Vail Hotel 350 Vail Marriott Mountain Resort Hotel 300 The Lodge at Vail Hotel 180(70)(') Town of Avon Municipal government 100(135) The Chateau Vail Hotel 100 Eagle River Water and Sanitation District Utility service district 80 ) Farenthetical indicates the number of winter employees. (Z)Vail Resorts also manage the Keystone and Breckenridge ski resorts, employing an additional 4,000 people. (3)Parenthetical indicates the number of part time or seasonal employees. Source: Individual employers 02-9565.04 28 TOWN FINANCIAL OPERATIONS Accounting Policies The accounts of the Town are organized on the basis of funds and account groups. Such funds are segregated for the purpose of accounting for the operation of specific activities or attaining certain objectives. For a description of the various funds and account groups, see "APPENDIX C." Financial operations are accounted for by the Town's finance depariment. In accordance with the Charter, an annual audit is required to be made of the Town's financial statements at the end of the fiscal year. The audited financial statements must be filed with the Council within six months after the end of the fiscal year and with the state auditor 30 days thereafter. Failure to file an audit report may result in the withholding of the Town's property tax revenues by the county treasurer pending compliance. The Town's fiscal year 1997 financial statements were audited by McMahan and Associates, P.C., Certified Public Accountants, Avon, Colorado. Such financial statements are the most current audited financial information available for the Town. The Town's 1997 general purpose financial statements are appended hereto. . Major Sources of General Fund Revenues The governmental fund utilized for the administration and operation of the Town is the General Fund. T'he following are the major sources of revenue to such fund. The expenditure of certain revenues, or portions thereof, may be subject to restricted uses. Sales Taxes. Sales tax revenues have represented the largest single source of revenue in the Town's General Fund over the past five years, comprising $7,990,079 or 49% of total 1997 General Fund revenue. The Town imposes a 4% sales tax on all sales and purchases of tangible personal property at retail or the furnishing of certain services. See "THE SALES TAX" for a description of historical receipts with respect to the sales,tax. Other Revenue Sources. The Town also receives revenue from several additional sources including resort fees, property taxes, specific ownership taxes, licenses and permits, and charges for services. Historical and Budgeted General Fund Financial Information Set forth hereafter is a five-year comparative statement of revenues, expenditures, and changes in fund balances for the Town's General Fund. The following information should be read together with the Town's financial statements and accompanying notes appended hereto. Preceding years' financial statements may be obtained from the sources noted in "INTRODUCTION-Additional Information." 02-9565.04 29 TABLE XIX Aistory of General Fund Revenues, Expenditures, and Changes in Fund Balances 1993 1994 1995 1996 1997 Revenues: General property taxes $2,061,365 $2,173,099 $1,645,372 $1,801,523 $1,840,593 Specific ownership taxes 114,626 136,871 117,451 123,803 145,345 General sales taxes 7,280,350 8,394,547 8,495,639 8,444,073 7,990,079 Resort fees 994,386 994,569 982,825 1,024,537 2,065,245 Franchisetaxes 507,922 529,092 521,239 530,692 533,894 Penalties and interest on Delinquent taxes 6,086 8,651 4,008 3,804 3,219 Licenses andpemuts 704,479 553,125 681,926 921,324 854,586 Intergovernmental revenue 983,758 1,100,657 1,095,292 1,149,716 1,641,425 Charges for services 1,917,413 235,547 237,964 329,860 328,415 Fines and forfeits 229,949 291,482 252,618 277,408 212,815 Miscellaneous revenues 133,818 234,795 109,589 145,212 170,823 Interest 124,667 178,328 287,075 316,638 276,107 Special assessments 53,537 55,015 Rents 131.439 143.706 151,461 Total 15,112.356 14.885` 14.562,430 15.212.296 16,214,007 Expenditures: General government 3,070,784 3,791,829 4,170,913 4,400,425 4,633,475 Public safety 3,945,232 4,204,220 4,216,935 4,180,163 4,259,775 Public works and transportation 5,341,015 4,381,364 4,060,581 4,248,902 4,950,572 Economic development and community assistance 1,046,477 957,034 951,832 888,959 888,680 Recreation 543,243 543,243 Municipallibrary 659.051 660,172 541.142 589.419 552.628 Total 14.605,802 14.537.862 13,941,403 14.307.868 15,285,130 Excess of Revenues Over (Under) Expenditures 506,554 347,916 621,027 904,428 928,877 Other Financing Sources (Uses): Capitalleases 46,849 17,705 8,210 Operating Transfers In 86,321 203,348 Operating Transfers Out (30.000) (61,826) (917,650 ) (89,494) Total 103.170 .152,.~Z 44 (89,44) Excess of Revenues Over (Under) Expendihues and Other Sources (Uses) 506,554 451,086 780,254 (5,012) 839,383 Fund Balances: Beginning 3,479,708 3,098,594 3,549,680 4,329,934 4,324,922 Residual Equity Transfers In(Out) (887,668) Ending S3.098.594 $3,549,680 $4329.934 $4,324•922 $5.164.305 Source: Town of Vail Audited Financial Statements 1993-1997 Budget and Appropriation Procedure. Starting with the 1997 budget year, the Town began compiling biennial budgets; however, the budget is still adopted annually pursuant to the Charter. Pursuant to Article IX of the Charter, it is the responsibility of the Town Manager to prepare and submit 02-9565.04 30 to the Council annually a budget for the ensuing year and an accompanying message. The budget is to provide a complete financial plan of all Town funds and activities. In addition, the Town Manager must prepare and submit to the Council a long-range capital program. See "THE TOWN - Capital Improvement Program." Such capital program is submitted to Council at least two weeks prior to the submission of the budget. A public hearing on the budget and the long-range capital program is held not less than 30 days before the close of the fiscal year. The Council adopts the budget after the public hearing, with or without amendments, and on or before the final day of the fiscal year the Council may make changes to the budget in its discretion. It may not delete or decrease expenditures required by law or for debt service or for any estimated cash deficit. Adoption of the budget by the Council constitutes appropriation of the amounts therein for use in the following year. The Town is authorized by its Charter to make supplemental appropriations and emergency appropriations by ordinance throughout the fiscal year. Reductions of appropriations also are authorized by the Charter in the event it appears that revenue will be insufficient to meet any appropriated amount. The Charter also authorizes transfers of appropriations. The Town Manager may transfer part or all of any unencumbered appropriation balance among programs within a department, agency or office, or, upon written request of the Town Manager. The Council may transfer part or all of any unencumbered appropriation balance from one department, office, agency, or object to another by a resolution of the Coluicil. General Fund Budget to Actual Comparison. Set forth hereafter is a comparison of the Town's 1997 and 1998 General Fund budgets, as compared to 1997 actual figures. 02-9565.04 31 TABLE XX General Fund 1997 and 1998 Budget Summary and Comparison 19971" 1997 1998() Bud e,~ t Actual Budget Revenues Property & Ownership Tax $1,975,135 $1,975,135 $2,071,759 Retail Sales Taxes 7,917,289 7,990,079 8,298,951 Resort Fees 2,111,500 2,065,245 2,164,288 Franchise Taxes 538,980 533,894 557,255 Penalty and Interest on Delinquent Taxes 9,000 3,219 37,000 Licenses & Permits 613,366 854,586 615,392 Intergovernmental Revenue 1,526,471 1,641,425 1,478,438 Charges for Services 334,634 328,415 613,394 Fines and Forfeits 242,250 212,815 248,336 Earnings on Investments 200,000 276,107 200,000 Total Miscellaneous 193.595 322.28 4 188.221 Total Revenue 15,662,,220 16,214.007 16,473,934 Expenditures Town Officials 944,967 864,576 1,008,811 Administrative Services 1,585,264 1,484,332 1,865,147 Community Development 1,461,059 1,183,292 1,215,118 Police 3,142,380 3,069,776 3,788,126 Fire 1,23 8,448 1,189,999 1,277,619 Public Works 2,492,651 2,418,465 2,628,020 Transportation 2,538,808 2,532,107 2,346,685 Library 569,686 552,628 580,794 Risk Management 308,062 294,553 Contributions and Special Events 935,545 888,680 929,159 Art in Public Places 50,706 Employee Benefits 27,000 14,776 Facility Maintenance 791,946 791,946 852,371 Operating Transfers 97,667 89,494 1,441180 Total Expenditures 16,133.483 15,374,624 17,984,736 Revenue Over (Under) Expenditures (471,263) 839,383 (1,511,702) Beginning Fund Balance 2,447,168 4,324,,922 5,163.910 Ending Fund Balance $1 7 OS $5 1 4 $3•02,M (')Includes supplemental appropriations. Town of Vail 1997 and 1998 Budget Deposit and Investment of Town Funds 02-9565.04 32 State statutes set forth requirements for the deposit of Town funds in eligible depositaries and for the collateralization of such deposited funds. See aiso Note 3 to the Town's audited financial statements appended hereto. The Town also may invest available funds in accordance with applicable state statutes. The investment of the proceeds of this issue also is subject to the provisions of the Federal Tax Code. See "TAX STATiJS." Retirement and Pension Matters See Note 11 to the Town's general purpose financial statements appended hereto for a discussion of the Town's defined contribution plan. Insurance Coverage In the opinion of the Town's management, the Town's present insurance coverage is adequate. However, there can be no assurance that the Town will maintain its present level of coverage. Constitutional Amendment Limiting Taxes and Spending A citizen-initiated amendment which added Article X Section 20 to the State constitution was approved by the voters at the State's general election on November 3, 1992 ("TABOR"). While a number of opinions have been rendered by the Colorado judiciary regarding the meaning and application of certain provisions of the TABOR amendment, a significant number of TABOR's provisions remain ambiguous and may be subject to judicial interpretation or further clarification by the Colorado judiciary in the future. TABOR applies to the State and any local governments, including the Town (but excluding government-owned enterprises as defined in TABOR), and among other things, provides significant restrictions regarding taxes, spending, revenue increases, and borrowing. T'he applicable limitations established pursuant to TABOR can be exceeded with prior voter approval obtained at elections which may be held only in April of even numbered years and November of each year. The Town held such an election in November, 1993, as described below. With certain exceptions concerning general obligation bonds, pensions, final court judgements, and emergency taxes, TABOR requires the Town to obtain voter approval prior to the imposition of any new tax, tax rate increase, mill levy above that for the prior year, assessed valuation ratio increase, or extension of an expiring tax, or a tax policy change directly causing a net revenue gain to the Town. See "Debt Structure-Required Elections" hereafter, far a description of the TABOR limitations on the Town's borrowing power. The issuance of the Bonds does not require an election under TABOR because the Bonds are refunding bonds issued at a lower interest rate. Unless otherwise approved by the voters, TABOR also limits the annual percentage increases in both property tax revenue and local government "fiscal year spending", with certain adjustments, to inflation (defined as the Denver-Boulder consumer price index) in the prior calendar year plus "local growth." Local growth is defined as the net percentage change in actual value of all real property in the Town from construction of improvements and additions to taxable real property less destruction of improvements and deletions to taxable real property. Fiscal year spending includes all Town expenditures and reserve increases and excludes reserve transfers or expenditures, refunds made in the cunent or next fiscal year, gifts, federal funds, collections for another government, pension contributions by employees and pension fund earnings, damage awards, and property sales. 02-9565.04 33 In the Town's November, 1993 election, the Town's electors approved the exemption of all Town revenues with the exception of its property tax collections from the application of the TABOR limitations. The base year for the limit on fiscal year spending is the 1992 fiscal year and on property tax revenue is the 1991 property taxes collected in 1992. Any revenue collected in excess of the limit on spending and property tax revenue is required to be refunded during the next fiscal year. The Town may use any reasonable method for refunds and refunds need not be proportional when prior payments are impracticable to identify or return. Debt service changes, reductions, refunds, and voter-approved revenue changes are dollar amounts that are exceptions to, and not part of, the Town's base. Individual or class actions may be filed to enforce the provisions of TABOR. Revenue collected, kept, or spent illegally since four full fiscal years before a lawsuit is filed must be refunded with 10% annual simple interest from the initial conduct. Successful plaintiffs are allowed costs and reasonable attorney fees, but a district is not unless a lawsuit is ruled frivolous. Debt Structure Required Elections. Article X, Section 20 of the Colorado Constitution requires that, except for refinancing bonded debt at a lower interest rate, the Town must have voter approval in advance for the creation of any multiple-fiscal year direct or indirect Town debt or other financial obligation whatsoever without adequate present cash reserves pledged irrevocably and held for payments in all future fiscal years. Enterprises, as defined in Article X, Section 20, are excluded from those provisions and the voter approval requirements established therein. The issuance of the Bonds complies with Article X, Section 20 because the Bonds are refunding bonds issued at a lower interest rate. For a discussion of Article X, Section 20 see "TOWN FINANCIAL OPERATIONS-Constitutional Amendment Limiting Taxes and Spending." General Obligation Debt. "Debt" or "indebtedness" as used in this section means, generally, obligations backed by the Town's full faith and credit and secured by the unlimited power of the Town to levy ad valorem properiy taxcs for the payment of bonds and the interest thereon. Any general obligation indebtedness of the Town is subject to the election requirements described above in "Required Elections." The Town's outstanding general obligation debt consists of its General Obligation Refunding Bonds, Series 1992A, currently outstanding in the principal amount of $6,900,000. The Series 1992A Bonds are currently paid from Sales Tax revenues. Revenue Bonds. The Town Council has the power to issue revenue bonds, subject to the election requirements described above in "Required Elections," payable from the revenues derived from the operation of facilities to be acquired, constructed or improved with the proceeds of the bonds, or payable in whole or part from available proceeds of sales and use taxes. The following table sets forth the Town's outstanding revenue obligations as of the date of this Official Statement. 02-9565.04 34 TABLE XXI Outstanding Revenue Obligations Outstanding Iccue Principal Sales Tax Revenue Refunding and Improvement Bonds, Series 1992B $6,740,000 Tax-Exempt Sales Tax Revenue Refunding Bonds, Series 1998A 8,610,000 Taxable Sales Tax Revenue Refunding Bonds, Series 1998B 815,000 Total $16.165,000 Leases and Long Term Contracts. The Town Council has the authority to enter into installment or lease option contracts, subject to annual appropriation, for the purchase of property or capital equipment without prior electoral approval as described above in "Required Elections". The term of any such contract may not extend over a period greater than the estimated useful life of the property or equipment. As of December 31, 1997, the Town had long-term contracts and leases outstanding in the amount of $26,547. Other Financial Obligations. Subject to the election requirements described above in "Required Elections," the Council also has the power to issue special assessment bonds payable from assessments levied against specially benefited properties within special assessment districts. The Town has one issue of special assessment bonds outstanding in the principal amount of $95,000. Other Financial Obligations. In 1983, the Town executed a promissory note in the amount of $2,200,000 to finance the purchase of open space land for a municipal golf course. The note is currently outstanding in the amount of $340,434 with the final payment due January 11, 1999. The Eagle County Recreational Authority (the "Authority") is an independent governmental entity formed in 1991 pursuant to an intergovernmental agreement among the Town, the Town of Avon, Colorado, the Eagle-Vail Metropolitan District, the Berry Creek Metropolitan District, the Beaver Creek Metropolitan District, the Arrowhead Metropolitan District, and Eagle County, Colorado. The Authority purchased land and appurtenant properiy lrnown as the Berry Creek Property in Eagle County from the Town to be used for open space and recreation for 40% of its agreed-upon value. In lieu of payment of the remaining 60% of the value, the Town received a 60% ownership interest in the Authority and its assets. The purchase price is to be paid by the Authority in 40 semiannual installments under an installment sale agreement. Pursuant to the intergovernmental agreement the Town has a 60% interest in the Authority's property, with the other entities sharing a 40% interest. The Town is responsible for 60% of the annual maintenance and operation costs of the Authority and 60% of any capital costs not associated with the purchase of the Berry Creek Property (which expenses are not to exceed $25,000 in its first year of operation). The Authority's governing board comprises one representative from each of the parties. If a party withdraws from the Authority, its interest and obligations may be assumed by one or more of the other parties; to the extent the withdrawing party's interest is not assumed, the Town has agreed to forgive that portion of the purchase price and pay that share of maintenance, operation and capital costs, and will be entitled to a like interest in the Authority. If the Berry Creek Property is sold, proceeds of the sale will be distributed ratably among the entities comprising the Authority. 02-9565.04 35 LEGAL MATTERS Pending and Threatened Litigation Involving the Town Sovereign Immuniry. The Governmental Immunity Act of 1972, Title 24, Article 10, Part 1, Colorado Revised Statutes (the "Act"), provides that, with certain specified exceptions, sovereign immunity acts as a bar to any action against a public entity, such as the Town, for injuries which lie in tort or could lie in tort. The Act provides that sovereign immunity does not apply to injuries occurring as a result of certain specified actions or conditions. In such instances, the public entity may be liable for injuries arising from an act or omission of the public entity, or an act or omission of its public employees, which are not willful and wanton, and which occur during the performance of their duties and within the scope of their employment. The maximum amounts that may be recovered under the Act, whether from one or more public entities and public employees, are as follows: (a) for any injury to one person in any single occurrence, the sum of $150,000; (b) for an injury to two or more persons in any single occurrence, the sum of $600,000; except in such instance, no person may recover in excess of $150,000. Suits against both the Town and a public employee do not increase such maximum amounts which may be recovered. For injuries occurring prior to July 1, 1986, sovereign immunity limits are deemed to be waived to the extent that the Town's insurance covers such injury. With regard to injuries occurring on and after such date, the Town may, by resolution, increase any maximum amount that may be recovered from the Town for the type of injury described in the resolution. The Town has not adopted such a resolution to date. The Town may not be held liable either directly or by indemnification for punitive or exemplary damages. In the event that the Town is required to levy an ad valorem property tax to discharge a settlement or judgment, such tax may not exceed a total of ten mills per annum for all outstanding settlements or judgments. The Town may be subject to civil liability and may not be able to claim sovereign immunity for actions founded upon various federal laws. Examples of such civil liability include, but are not limited to, suits filed pursuant to 42 U.S.C. § 1983 alleging the deprivation of federal constitutional or statutory rights of an individual. In addition, the Town may be enjoined from engaging in anti-competitive practices which violate the antitrust laws. However, effective July 1, 1986, the Act provides that it applies to any action brought against a public entity or a public employee in any Colorado state court having jurisdiction over any claim brought pursuant to any federal law, if such action lies in tort or could lie in tort. Pending and Threatened Litigation. The Town Attorney states that as of the date hereof, to the best of his Irnowledge, belief, and information, no litigation of any nature is now pending or threatened, which, if determined adversely to the Town, would not otherwise be covered by insurance or would be expected to have a material adverse effect upon the Town's ability to comply with its obligations under the Bond Ordinance. No Litigation Certiticate The Underwriter's purchase of the Bonds is conditioned on, among other things, receipt from the Town Attorney and certain Town officials of certification at closing that there is no litigation then pending, or to their lrnowledge threatened, affecting the validity of or security for the Bonds. 02-9565.04 36 TAXSTATUS Series 1998A Bonds In the opinion of Bond Counsel, assuming continuous compliance with certain covenants described below, interest on the Series 1998A Bonds is not included in gross income under federal income tax laws pursuant to Section 103 of the Internal Revenue Code of 1986, as amended to the date of delivery of the Series 1998A Bonds (the "Tax Code"), interest on the Series 1998A Bonds is not included in alternative minimum taxable income as defined in Section 55(b)(2) of the Tax Code except that such interest is required to be included in calculating the "adjusted current earnings" adjustment applicable to corporations for purposes of computing the alternative minimum taxable income of corporations as described below, and interest on the Series 1998A Bonds is not included in Colorado taxable income or Colorado alternative minimum taxable income under Colorado income tax laws in effect as of the date of delivery of the Series 1998A Bonds. The Tax Code and Colorado law impose several requirements which must be met with respect to the Series 1998A Bonds in order for the interest thereon to be excluded from gross income, alternative minimum taxable income (except to the extent of the aforementioned adjustments applicable to corporations), Colorado taxable income and Colorado alternative minimum taxable income. Certain of these requirements must be met on a continuous basis throughout the term of the Series 1998A Bonds. These requirements included: (a) limitations as to the use of proceeds of the Series 1998A Bonds; (b) limitations on the extent to which proceeds of the Series 1998A Bonds may be invested in higher yielding investments; and (c) a provision, subject to certain limited exceptions, that requires all investment earnings on the proceeds of the Series 1998A Bonds above the yield on the Series 1998A Bonds to be paid to the United States Treasury. The Town will covenant and represent in the Bond Ordinance that it will take all steps to comply with the requirements of the Tax Code and Colorado law (in effect on the date of delivery of the Series 1998A Bonds) to the extent necessary to maintain the exclusion of interest on the Series 1998A Bonds from gross income and alternative minimum taxable income (except to the extent of the aforementioned adjustments applicable to corporations) under such federal income tax laws and Colorado taxable income and Colorado alternative minimum taxable income under such Colorado income tax laws. Bond Counsel's opinion as to the exclusion of interest on the Series 1998A Bonds from gross income, alternative minimum taxable income (to the extent described above), Colorado taxable income and Colorado alternative minimum taxable income is rendered in reliance on these covenants, and assumes continuous compliance therewith. The failure or inability of the Town to comply with these requirements could cause the interest on the Series 1998A Bonds to be included in gross income, alternative minimum taxable income, Colorado taxable income or Colorado alternative minimum taxable income, or a combination thereof, from the date of issuance. Bond Counsel's opinion also is rendered in reliance upon certifications of the Town and other certifications furnished to Bond Counsel. Bond Counsel has not undertaken to verify such certifications by independent investigation. Section 55 of the Tax Code contains a 20 percent alternative minimum tax on the alternative minimum taxable income of corporations. Under the Tax Code, 75 percent of the excess of a corporation's "adjusted current earnings" over the corporation's alternative minimum taxable income (determined without regard to this adjustment and the alternative minimum tax net operating loss deduction) is included in the corporation's alternative minimum taxable income for purposes of the alternative minimum tax applicable to the corporation. "Adjusted current earnings" includes interest on the Series 1998A Bonds. The Tax Code contains numerous provisions which may affect an investor's decision to purchase the Series 1998A Bonds. Owners of the Series 1998A Bonds should be aware that the ownership of tax- exempt obligations by particular persons and entities, including, without limitation, financial institutions, insurance companies, recipients of Social Security or Railroad Retirement benefits, taxpayers who may be 02-9565.04 37 deemed to have incurred or continued indebtedness to purchase or carry tax-exempt obligations, foreign corporations doing business in the United States and certain "subchapter S" corporations may result in adverse federal and Colorado tax consequences. Bond Counsel's opinion relates only to the exclusion of interest on the Series 1998A Bonds from gross income, alternative minimum taxable income, Colorado taxable income and Colorado alternative minimum taxable income as described above and will state that no opinion is expressed regarding other federal or Colorado tax consequences arising from the receipt or accrual of interest on or ownership of the Series 1998A Bonds. Owners of the Series 1998A Bonds should consult their own tax advisors as to the applicability of these consequences. The opinions expressed by Bond Counsel are based upon existing law as of the delivery date of the Series 1998A Bonds. No opinion is expressed as of any subsequent date nor is any opinion expressed with respect to any pending or proposed legislation. Amendments to federal and Colorado tax laws may be pending now or could be proposed in the future which, if enacted into law, could adversely affect the value of the Series 1998A Bonds, the exclusion of interest on the Series 1998A Bonds from gross income, alternative minimum taxable income, Colorado taxable income, Colorado alternative minimum taxable income or any combination thereof from the date of issuance of the Series 1998A Bonds or any other date, or which could result in other adverse federal or Colorado tax consequences. Bondowners are advised to consult with their own tax advisors with respect to such matters. Series 1998B Bonds Interest on the Series 1998B Bonds is included in gross income under federal income tax laws in effect on the delivery date of the Series 1998B Bonds . Financial Institution Interest Deduction The Tax Code generally provides that a financial institution may not deduct that portion of its interest expense which is allocable to tax-exempt interest. The interest expense which is allocable to tax- exempt interest is an amount which bears the same ratio to the institution's interest expense as the institution's average adjusted basis of tax-exempt obligations acquired after August 7, 1986 bears to the average adjusted basis of all assets of the institution. Tax-exempt obligations may be treated as if issued prior to August 7, 1986 (and therefore are not subject to this rule), if they are "qualified tax-exempt obligations" as defined in the Tax Code and are designated for this purpose by the issuer. The Town has designated the Series 1998ABonds for this purpose; however, under provisions of the Tax Code dealing with financial institution preference items, certain financial institutions, including banks, are denied 20% of their otherwise allowable deduction for interest expense with respect to obligations incurred or continued to purchase or carry the Series 1998ABonds. In general, interest expense with respect to obligations incurred or continued to purchase or carry the Series 1998ABonds will be in an amount which bears the same ratio as the institution's average adjusted basis in the Series 1998ABonds bears to the average adjusted basis of all assets of the institution. Amendments to the Tax Code could be enacted in the future and there is no assurance that any such future amendments which may be made to the Tax Code will not adversely affect the ability of banks or other financial institutions to deduct any portion of its interest expense allocable to tax-exempt interest. 02-9565.04 3 $ MISCELLANEOUS Rating Standard & Poor's has assigned its municipal bond rating of "AAA", to this issue of Bonds with the understanding that upon delivery of the Bonds, a policy insuring the payment when due of the principal of and interest on the Bonds will be issued by the Insurer. Such rating reflects only the view of the rating agency and any desired explanation of the significance of such rating should be obtained from Standard & Poor's at Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies, Inc., 25 Broadway, New York, New York 10004. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance that a rating will continue for any given period of time or that a rating will not be revised downward or withdrawn entirely by the rating agency, if, in the judgment of such agency, circumstances so warrant. Any such downward revision or withdrawal of the ratings indicated above may have an adverse effect on the market price of the Bonds. Registration of Bonds Registration or qualification of the offer and sale of the Bonds (as distinguished from registration of the ownership of the Bonds) is not required under the federal Securities Act of 1933, as amended, or the Colorado Securities Act, as amended, pursuant to exemptions from registration provided in such acts. THE TOWN ASSUMES NO RESPONSIBILITY FOR QUALIFICATION OR REGISTRATION OF THE BONDS FOR SALE UNDER THE SECURITIES LAWS OF ANY JURISDICTION IN WHICH THE BONDS MAY BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED. Undertalcing to Provide Ongoing Disclosure Pursuant to the requirements of Section (b)(5)(i) of the Securities and Exchange Commission Rule 15c2-12 (17 CFR Part 240, § 240.15c2-12) (the "Rule"), the Town has covenanted in the Bond Ordinance for the benefit of the holders of the Bonds to provide annual financial information, audited financial statements and other operating data (the "Undertaking") to nationally recognized municipal securities information repositories. For a form of the Town's Undertaking, see Appendix A hereto. A failure by the Town to comply with the Undertaking will not constitute an Event of Default under the Bond Ordinance (although Bondholders will have the remedy of specific performance). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may affect the transferability and liquidity of the Bonds. Interest of Certain Persons Named in this Official Statement The legal fees to be paid to Sherman & Howard L.L.C. and Kutak Rock are contingent upon the sale and delivery of the Bonds. Underwriting The Bonds are being sold by the Town at a price of $ (par amount of the Bonds of $ , less original issue discount of $ , less an underwriting discount of $ , plus accrued interest on the Bonds of $ ) to Bigelow & Company, Denver, Colorado, as 02-9565.04 39 Underwriter pursuant to a purchase contract entered into between that firm and the Town. Expenses associated with the issuance of the Bonds are being paid by the Town from proceeds of the issue. The right of the Underwriter to receive compensation in connection with the issue is contingent upon the actual sale and delivery of the Bonds. The Underwriter has initially offered the Bonds to the public at the prices or yields set forth on the cover page of this Official Statement, plus accrued interest from the date of the Bonds. Such prices or yields, as the case may be, may subsequently change without any requirement of prior notice. T'he Underwriter reserves the right to join with dealers and other investment banking firms in offering the Bonds to the public. Independent Accountants The general purpose financial statements of the Town as of and for the year ended December 31, 1997, appended to this Official Statement, have been audited by McMahan and Associates, P.C., of Avon, Colorado, certified public accountants, as stated in their report appearing therein. Additional Information Copies of statutes, resolutions, ordinances, opinions, contracts, agreements, financial and statistical data, and other related reports and documents described in this Official Statement are either publicly available or available upon request and the payment of a reasonable copying, mailing, and handling charge from the sources provided in the "INTIZODUCTION". Official Statement Certification The preparation of this Official Statement and its distribution have been authorized by the Town Council. This Official Statement is hereby duly approved by the Town Council as of the date on the cover page hereof. This Official Statement is not to be construed as an agreement or contract between the Town and the purchasers or the owners of any Bond. TOWN OF VAIL, COLORADO By: /s/ Mayor 02-9565.04 40 APPENDIX A Undertaking to Provide Ongoing Disclosure This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the Town of Vail, Colorado (the "Issuer") in connection with the issuance of the Town of Vail, Sales Tax Revenue Refunding Bonds, Series 1998A in the aggregate principal amount of $ and the Taxable Sales Tax Revenue Refunding Bonds, Series 1998B in the aggregate principal amount of $ (the "Bonds"). The Bonds are being issued pursuant to the bond ordinance (the "Ordinance") adopted by the Issuer on , 1998. The Issuer covenants and agrees as follows: SECTION 1. P=ose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriter in complying with Rule 15c2-12(b)(5) of the Securities Exchange Commission. SECTION 2. Definitions. In addition to the defmitions set forth in the Bond Ordinance or parenthetically defined herein, which apply to any capitalized terms used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Dissemination Agent" shall mean, initially, the Issuer, or any successor Dissemination Agent designated in writing by the Issuer and which has filed with the Issuer a written acceptance of such designation. "Listed Events" shall mean any of the events listed in Secrion 5 of this Disclosure Certificate. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. Currently, the following are National Repositories: Bloomberg Financial Markets P.O. Box 840 Princeton, NJ 08542-0840 Phone: (609) 279-3000 Fax: (609) 279-5962 or Bloomberg Business Park 100 Business Park Drive Skillman, NJ 08558 02-9565.04 Thomson Municipal Services, Inc. Attn: Municipal Disclosure 395 Hudson Street New York, NY 10014-3669 Phone: (212) 807-3814 Fax: (212) 989-9282 DPC Data, Inc. One Executive Drive Fort Lee, NJ 07024 Phone: (201) 346-0701 Fax: (201) 947-0107) Kenny Information Systems, Inc. 65 Broadway - 16th Floor New York, NY 10006-2503 Atm: Kenny Repository Service Phone: (212) 770-4595 Fax: (212) 797-7994 "Participating Underwriter" shall mean the original underwriter of the Bonds required to comply with the Rule in connection with an offering of the Bonds. "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State Repository" shall mean any public or private repository or entity designated by the State of Colorado as a state information depository for the purpose of the Rule. As of the date of this Disclosure Certificate, there is no State Repository. SECTION 3. Provision of Annual Reports. a. The Issuer shall, or shall cause the Dissemination Agent to, not later than nine (9) months following the end of the Issuer's fiscal year of each year, commencing nine (9) months following the end of the issuer's fiscal year ending December 31, 1998, provide to each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. Not later than five (5) business days prior to said date, the Issuer shall provide the Annual Report to the Dissemination Agent (if other than the Issuer). T'he Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provide that the audited financial statements of the Issuer may be submitted separately from the balance of the Annual Report. b. If the Issuer is unable to provide to the Repositories an Annual Report by the date required in subsection (a), the Issuer shall send a notice to the Municipal Securities Rulemaking Board ("MSRB") and to the State Repository, if any, in substantially the form attached as Exhibit "A." c. The Dissemination Agent shall: 02-9565.04 A-2 i. determine each year prior to the date for providing the Annual Report the name and address of each National Repository and each State Repository, if any; and ii. if the Dissemination Agent is other than the Town, file a report with the Town certifying the Annual Report has been provided pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4. Content of Annual Renorts. The Issuer's Annual Report shall contain or incorporate by reference the following: a. A copy of its annual financial statements prepared in accordance with generally accepted accounting principles audited by a firm of certified public accountants. If audited annual financial statements are not available by the time specified in Section 3(a) above, unaudited financial statements will be provided as part of the Annual Report and audited financial statements will be provided when and if available. b. An update of the information of the type contained in the tables in the Official Statement, identified in Exhibit "B" hereto. Any or all of the items listed above may be incorporated by reference from other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document incorporated by reference is a final official statement, it must be available from the MSRB. The Issuer shall clearly identify each such document incorporated by reference. SECTION 5. Reporting of Significant Events. The Issuer shall provide or cause to be provided, in a timely manner, to the MSRB and the State Repository, if any, notice of any of the following events with respect to the Bonds, if such event is material: . a. Principal and interest payment delinquencies; b. Non-payment related defaults; c. Unscheduled draws on debt service reserves reflecting financial difficulties; d. Unscheduled draws on credit enhancements reflecting financial difficulties; e. Substitution of credit or liquidity providers, or their failure to perform; f. Adverse tax opinions or events affecting the tax-exempt status of the Bonds; g. Modifications to rights of bondholders; h. Bond calls; i. Defeasances; 02-9565.04 A-3 j. Release, substitution or sale of property security repayment of the Bonds; or k. Rating changes. SECTION 6. Termination of Reporting Ob12 ation. The Issuer's obligations under this Disclosure Certificate shall terminate upon the earliest of: (i) the date of legal defeasance, prior redemption or payment in full of all of the Bonds; (ii) the date that the Issuer shall no longer constitute an "obligated person" within the meaning of the Rule; or (iii) the date on which those portions of the Rule which require this written undertaking are held to be invalid by a court of competent jurisdiction in a non- appealable action, have been repealed retroactively or otherwise do not apply to the Bonds. SECTION 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a Dissemination Agent to assist the Issuer in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. SECTION 8. .Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, without the consent of the holders of the Bonds, if such amendment or waiver does not, in and of itself, cause the undertakings herein (or action of any Participating Underwriter in reliance on the undertakings herein) to violate the Rule, but taking into account any subsequent change in or official interpretation of the Rule. The Issuer will provide notice of such amendment or waiver to the Repository. SECTION 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to what is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION 10. Defaul . In the event of a failure of the Issuer to comply with any provision of this Disclosure Certificate, any holder or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default under the Bond Ordinance, and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel performance. SECTION 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Issuer, the Dissemination Agent, the Participating Underwriter, the holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. DATE: , 1998 TOWN OF VAIL, COLORADO 02-9565.04 A-4 By: Mayor 02-9565.04 A-5 EXFIIBIT "A" NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: Town of Vail, Colorado Name of Bond Issue: Town of Vail, Sales Tax Revenue Refunding Bonds, Series 1998A in the aggregate principal amount of $ and the Taxable Sales Tax Revenue Refunding Bonds, Series 1998B in the aggregate principal amount of $ Date of Issuance: September 15, 1998 NOTICE IS HEREBY GNEN that the Issuer has not provided an Annual Report with respect to the above-named Bonds as required by Section 20 Q of the Bond Ordinance adopted , 1998, and the Continuing Disclosure Certificate executed on , 1998, by the Issuer. The Issuer anticipates that the Annual Report will be filed by Dated: , TOWN OF VAIL, COLORADO By: Its: 02-9565.04 A-( EXHIBIT "B" INDEX OF OFFICIAi STATEMENT TA3LES TO BE UPDATED A-1 02-9565.04 APPENDIX B Summary of Bond Ordinance B-1 02-9565.04 APPENDIX C Audited general purpose financial statements of the Town as of and for the year ended December 31, 1997 C-1 02-9565.04 APPENDIX D [Specimen Insurance Policy] D-1 02-9565.04 . . _ _ ' _ , , . . _ . . . . _ 4 , ME31A FIiNANCYAL GUARANTY INSt7RANCE POLICY MB1A Iasarance Corporahoa Armank, New York 10504 Policy Iv'o. [Iv'UMSER] MBIA InA°ce Carporatiou (the '7nswr"l in coosideration of the pa}ment of the premii.¢n and subject tn the terrns of this policy, hereby uacondidonally aad arevocably guatantees ro any owner, as hereinafter de5ncci, of the fioIlowing descrilied obl4gatians, the full and camplete paysnem reqvxed to be made by or on behatf afthe Issver to [PAYING AGENT/IRUSTEE] or itc mccessor (the "r'ayin8 AgenY) of an amwt equal co (i) the Prrncipal of (eidw at the stated maWrity ar kry acsy advancement of matuity pursuaat to amandatory smldag fund payment) and inbTest on, $:e Gbtgstions (as that tL= is de6ned below) a5 svch payments shall become due but shail not be so paid (except that in the event of any acoeleration of the due dab of such principal bY reASan of mandatory (w optional redenption a acce?aaaan nsuiring fian default or othenvise, atha than any advactcanent of mahaity pumant to a mandatory sinking fund PaYmern, the PaYments 8unuteed haebY shall be made m such amourits and at such tunes as such payrnents of prineipal would have been due had there not bemi any such aceelaraiion); and (u) the reirnbuesement af aoy such payment which is subsaqurntly recovered fivm atry owner pmsuant w a final judgrnem by a court of canpetent jiaisciicxion tsat such payment consstitutes an avoidable preference to such awner wtlhin the aieaning of any applicable bankcvptcy iaw. The amounts ref'erred io m c1aLises (i) and ('n) of the pweft seateace sha11 be referred io heaem cuitedively as the "lrmued Amoum." "ObligaGons" shall mean: [PAR] [LEGAL NAME OF ISSUE) Upon roceipt of tdephonic or telegraphic notice, such norie,e subsequently confun;ed in writing by registered or certified mail, or upon rereipt of writsen natice bY reggemd or ceetified mail, by the Insvicer frorn the Paying Agent or any owna of an Obligption the payment of an Tnsured Amoimt for which 's then d'~ dia sr-h reN'red PaYmenc 1?as :iot beea made, the fnsurer oo the due date of sudi payment or within one M~siness day afTer receipt of notice of such nonPaYmen, v%ticheva is later, will rnake a deposiu of funds, m an accourrt with State Stieet Bank and Tmst COmpenY, N-A., in Netv YoriS New Yoric, a its sucasw, sufficient far the payment of any such In.sited Amounts which are then due. Upon pcesentment and sumnder of such Ubligations or presmtment of such other proof of ownership or'the Obligations, togetha with any appropriaLe inshwnents of assignment to evider,ce the assignment of the iesurad Arr,oum due on the Obliptions as ace paid by the Insvner, arfd appnopriate instrucnents to effecx ibe appoirtCnent of the Insmr as ager.-t frx such owners of the 05ligadons in any fegal proceeding related to payrnexrt of Insured AmoLmts on the UisGgsticxLS, such hismurients being in a form satisfacrnry to State Suvet Benk and Ttust Com-panY, NA, State Street Bank and Tnisc CompenY, NA. shail disburse to such owneis, or the Paying Ager.t payment oFthe Insv.-zd Amconts due on such Obligations, less any amount heki by the Paying Agent for the paymcit o; such Insured Amounts and Lgaly availsble therefor. This policy dces not insure agaaw loss of any PrcpaYment premium which may at any time be payable widt tespect Lo aty Obligation. As usad heream, the teim "ownee' shatl mean the registered arvner of eny Qbligation as indicated in the books mainmined by the Paying Agent, the lssver, or anY de.signae of the Lssuer for such purpose. The tmm oHmer shall not mclude the issuex or any ,pecty whose agreemen: with the Issuer cansruutas the underlying secutity for the Obiigations. Any service of process on the Insurer may be made ta the Insurer at its offices located at ] 13 King Stnet, Armonk, New York 10504 and sud, service of proam shall be valid and binding. 'P.zis policy is non-canceilabie for any reason. The preinium on this policy is not refundabte for any reason including the paycnent pcicx w maturity of the Obligations. LN V4'ITNESS WHEREOF, the Irmrerhas caused this poiicy to be executai in facsirnile on its behalf by its duly authorized o9~iom, tis [DAY] day of (MONiH, YEAR]• MBIA Insurance Corporation - - - - Preside ~9E C1114PA Att est: Assistant Sec7etary 5I~R~ 4~j: ~ . An extra section break has been inserted above this paragraph. Do not delete this section break if you plan to add text after the Table of Contents/Authorities. Deleting this break will cause Table of Contents/Authorities headers and footers to appear on any pages following the Table of Contents/Authorities. 02-9565.04 ~ REGISTRAR AND PAYING AGENT AGREEMENT THIS AGREEMENT, dated as of September 1, 1998, by and between the Town of Vail, in the County of Eagle, State of Colorado (the "Issuer"), and The Bank of Cherry Creek, N.A., in Denver, Colorado, duly organized and existing under the laws of the United States of America - (the "Bank"). ~ WITNESSETH: WHEREAS, by an ordinance of the Town Council of the Issuer duly adopted on , 1998 (the "Bond Ordinance"), the Issuer has authorized the issuance of its Town of Vail, Sales Ta1c Revenue Refunding Bonds, Series 1998A in the aggregate principal arnount of $ and the Taxable Sales Tax Revenue Refunding Bonds, Series 1998B in the aggregate principal amount of $ (the "Bonds"); and VVHEREAS, it is mutually desirable to the Issuer and the Bank that the Bank, through its Corporate Trust Department located in Denver, Colorado, act as Registrar and Paying Agent (as such terms are defined and used in the Bond Ordinance) for the Bonds and the Registered Certificates; and WHEREAS, it is mutually desirable that this agreement (the "Agreement") be entered into between the Issuer and the Bank to provide for certain aspects of such services. NOW, THEREFORE, the Issuer and the Bank, in consideration of the mutual covenants herein contained, agree as follows: 1. The Bank hereby accepts all duties and responsibilities of the Registrar and Paying Agent as provided in the Bond Ordinance. The Bank sha11 cause the Bonds and Registered Certificates to be honored in accordance with their terms, provided that the Issuer causes to be made available to the Bank a11 funds necessary in order to so honor the Bonds and Registered Certificates. Nothing in this Agreement shall require the Bank to pay or disburse any funds in excess of the amount then on deposit in the "Principal and Interest Payment Account" provided for in Section 2 of this Agreement. Nothing in this Agreement sha11 require the Issuer to pay or disburse any funds for payment of the Bonds or interest thereon except at the times and in the manner provided in the Bond Ordinance. In addition, the Bank hereby accepts, including, without limittation, the duties and responsibilities pertaining to the authentication, registration, transfer, exchange and replacement of ~ r the Bonds and Registered Certificates, and the duties and responsibilities pertaining to the calling of the Bonds for prior redemption, all as provided in the Bond Ordinance. 2. At least three business days prior to each payment date, funds for the payment of the Bonds and interest thereon are to be deposited by the Town with the Bank in an account designated "Principal and Interest Payment Account." The funds so deposited shall be held and applied by the Bank through its Corporate Trust Department solely for the payment of principal of, interest on and redemption premium, if any, on the Bonds. From such funds, the Bank agrees to pay at the times and in the manner provided in the Bond Ordinance, the principal of, interest on and redemption premium, if any, on the Bonds. 3. The Issuer shall pay to the Bank fees in accordance with the schedule attached to this Agreement. 4. The Agreement may be terminated as provided in Section 26 of the Bond Ordinance. 5. In the event of any conflict between the provisions of this Agreement and the provisions of the Bond Ordinance, the provisions of the Bond Ordinance sha11 be controlling. IN WITNESS WHEREOF, the Bank and the Issuer have caused this Agreement to be duly executed and delivered as of the day and year first above written. TOWN OF VAIL, COLORADO BY Mayor (SEAL) Attest: Town Clerk -2- f THE BANK OF CHERRY CREEK, N.A. By Title -3- ~ [Attach Registrar's Fee Schedule] -4- ESCROW AGREEMENT This Escrow Agreement dated as of September 1,1998 is by and between the TOWN OF VAIL, COLORADO (the "Town"), a political subdivision duly organized and existing under the laws of the State of Colorado (the "State") and its home rule charter and The Bank of Cherry Creek, N.A. (the "Escrow Bank") in Denver, Colorado, a bank having and exercising fu11 and complete trust powers, duly organized and existing under the laws of the State and the United States of America, being a member of the Federal Deposit Insurance Corporation and the Federal Reserve System. (1) WHEREAS, the Town is duly organized and existing under the laws of the State and its officers from time to time have been duly chosen and qualified; and (2) WHEREAS, pursuant to Ordinance No. 42, Series of 1991 (the "1991 Ordinance") the Town has heretofore issued its Sales Tax Revenue Bonds, Series 1991 (the "1991 Bonds"); and pursuant to Ordinance No. 25, Series of 1992 (the "1992 Ordinance") the Town has heretofore issued its Sales Tax Revenue Refunding and Improvement Bonds, Series 199213(the "1992B Bonds"); and (3) WHEREAS, the 1991 Bonds maturing on and after December l, 2002 are subject to redemption prior to their maturity on December 1, 2001, at the option of the Town, in whole or in part, at a price equal to the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date; and - (4) WHEREAS, the 1992B Bonds maturing on June 1, 2005 and December 1, 2012 are subject to redemption prior to their maturity on December 1, 2002, at the option of the Town, in whole or in part, at a price equal to 101 % of the principal amount of each bond so redeemed plus accrued interest thereon to the redemption date; and (5) WHEREAS, the Town is not delinquent in the payment of the principal of or interest on any of the 1991 Bonds or any of the 1992 Bonds; and (6) WHEREAS, the Council has determined and hereby declares that it is advantageous and favorable to the Town to refund, pay and discharge a11 of the 1991 Bonds and the following portions of the 1992B Bonds maturing or subject to mandatory redemption on the following dates: Date Principal Amount June 1, 1999 $ 50,000 June 1, 2000 950,000 June 1, 2001 1,005,000 June 1, 2002 1,065,000 June 1, 2003 1,125,000 June l, 2004 1,195,000 June l, 2005 1,255,000 (collectively, the "Refunded Bonds"); and (7) WHEREAS, Bigelow & Company (the "Underwriter") submitted a proposal (the "Bond Purchase Agreement") for the purchase of the "Town of Vail, Colorado, Sa1es Tax Revenue Refunding Bonds, Series 1998A" (the "1998A Bonds") and the "Town of Vail, Colorado, TaXable Sales Tax Revenue Refunding Bonds, Series 1998B" (the "1998B Bonds" and, together with the 1998A Bonds, the "1998 Bonds"); and (8) WHEREAS, the 1998 Bonds are to be issued in part for the purpose of paying, together with other available moneys, the principal of and interest and redemption premiums on the Refunded Bonds, as set forth in the certified public accountant's report attached as Exhibit 1 to this Agreement (the "Refunded Bond Requirements"); and (9) WIHREAS, the 1998 Bonds are authorized to be issued by an ordinance (the "Bond Ordinance") adopted by the Town Council of the Town (the "Council") on 1998; and (10) WHEREAS, the 1998 Bonds are to be sold to the Underwriter subject to the approving opinion of the Town's bond counsel, Sherman & Howard L.L.C., Denver, Colorado ("Bond Counsel"); and (11) WHEREAS, the Town, by the Bond Ordinance, among other matters: A. Formally accepted the Bond Purchase Agreement; B. Authorized the deposit of funds in the Escrow Account (as defined below) to be maintained by the Escrow Bank; C. Provided for the deposit in the Escrow Account of a portion of the net proceeds of the 1998 Bonds (other than the portion thereof to be used to defray administrative and -2- ~ _ issuance expenses, and other than any accrued interest paid on their delivery) and other moneys in an aggregate amount fully sufficient, together with the known minimum yield from the investment of such moneys in bills, certificates of indebtedness, notes, bonds, or other obligations which are direct obligations of, or the principal and interest of which are fully and unconditionally guaranteed as to timely payment of principal and interest by, the United States of America and which are not callable prior to their scheduled maturities by of the issuer thereof (or an ownership interest in any of the foregoing) ("Federal Securities") to pay the Refunded Bond Requirements, as set forth therein and herein. (In no circumstances shall the term "Federal Securities" include money market investments even if the money market fund in which the investment is made invests only in Federal Securities or any contract for the delivery at a future date of securities); D. Provided for the purchase of Federal Securities with such moneys credited to the Escrow Account, other than such initial cash balance remaining uninvested; and E. Authorized the completion and execution of this Agreement; and (12) )WHEREAS, a copy of the Bond Ordinance has been delivered to the Escrow Bank and the provisions therein set forth are herein incorporated by reference as if set forth herein verbatim in full; and (13) )WHEREAS, the Federal Securities described in the certified public accountant's report attached as Exhibit 1 to this Agreement have appropriate maturities and yields to insure the payment, together with the initial cash, of the Refunded Bond Requirements, as the same become due; ana (14) )WHEREAS, a schedule of receipts from such Federal Securities and a schedule of payments and disbursements in the certified public accountant's report attached as Exhibit 1 to this Agreement demonstrate the sufficiency of the Federal Securities and initia.l cash for such purpose; and (15) )WHEREAS, the Escrow Bank is empowered to undertake the obligations and commitments on its part herein set forth; and (16) )WHEREAS, the undersigned officers of the Escrow Bank are duly authorized to execute and deliver this Agreement in the Escrow Bank's name and on its behalf; and -3- ~ (17) WHEREAS, the Town is empowered to undertake the obligations and commitments on its part herein set forth; and (18) WHEREAS, the undersigned officers of the Town are duly authorized to execute and deliver this Agreement in the Town's name and on its behalf. NOW, THEREFORE, THIS ESCROW AGREEMENT WITNESSETH: That in consideration of the mutual agreements herein contained, in consideration of the fee referred to in Section 8 hereof duly paid by the Town to the Escrow Bank at or before the ensealing and delivery of these presents, the receipt of which is hereby acknowledged, and in order to secure the payment of the Refunded Bond Requirements, as the same become due, the parties hereto mutually undertake, promise and agree for themselves, their respective representatives, successors and assigns, as follows: Section 1. Creation of Escrow. A. Simultaneously with the delivery of the 1998 Bonds and subject to their issuance, the Town with $ of the proceeds of the 1998 Bonds and other available money shall purchase (to the extent not heretofore purchased) the Federal Securities described in Exhibit 1 to this Agreement and shall cause such Federal Securities (the "Initial Federal Securities") and an initial cash balance of $ (the "initial cash") to be credited to and accounted for in a separate trust account designated as the "Town of Vail, Colorado Sales Tax Revenue Refunding Bonds, Series 1998 Escrow Account" (the "Escrow Account"). Receipt of such Initial Federal Securities and initial cash by the Escrow Bank to be applied as provided herein hereby is acknowledged. B. Other Federal Securities may be substituted for any of the Initial Federal Securities if such Initial Federal Securities are unavailable for purchase on the date of delivery of the 1998 Bonds or if such substitution is required or permitted by Section 148 of the Internal Revenue Code of 1986, as amended to the date of delivery of the 1998 Bonds (the "Tax Code"), and the applicable regulations thereunder, subject in any case to sufficiency demonstrations and yield proofs in a certified public accountant's report, subject to a favorable opinion of nationally recognized bond counsel as to the legality of any such substitution, and the continued exclusion of interest on the Refunded Bonds from gross income for federal income ta.x purposes, and in any event in such a manner so as not to increase the price which the Town pays for the initial acquisition of -4- Federal Sec2.u-ities for the Escrow Account. The certified public accountant's report must indicate that the receipts from the substitute securities are sufficient without any need for reinvestment to fully pay the principal of and interest and redemption premium on the Refunded Bonds. Any Federal Securities temporarily substituted for the Initial Federal securities may be withdrawn from the Escrow Account when the Initial Federal Securities are purchased and credited to the Escrow Account. Similarly any temporary advancement of moneys to the Escrow Account to pay designated Refunded Bond Requirements because of a failure to receive promptly the principal of and interest on any Federal Securities at their respective fixed maturity dates, or otherwise, may be repaid to the person advancing such moneys upon the receipt by the Escrow Bank of such principal and interest payments on such Federal Securities. Upon any substitution by this paragraph B, the certified public accountant's report required by this paragraph B shall be attached as Exhibit 1 to this Agreement. C. The initial cash, the proceeds of the Initial Federal Securities (and of any other Federal Securities acquired as an investment or reinveshnent of moneys accounted for in the Escrow Account) and any such Federal Securities themselves (other than any Federal Securities, including the Initial Federal Securities, held as book-entries) shall be deposited with the Escrow Bank and credited to and accounted for in the Escrow Account. The securities and moneys accounted for therein shall be redeemed and paid out and otherwise administered by the Escrow Bank for the benefit of the Town and owners of the Refunded Bonds as provided in this Agreement and the Bond Ordinance. Section 2. P=ose of Escrow. A. The Escrow Bank shall hold the initial cash, all Federal Securities accounted for in the Escrow Account (other than Federal Securities, including the Initial Federal Securities, held as book-entries) and a11 moneys received from time to time as interest on and principal of such Federal Securities in trust to secure and for the payment of the Refunded Bond Requirements, as the same become due at their respective payment, maturity or redemption dates. B. Except as provided in paragraph B of Section 1 hereof, the Escrow Bank shall collect the principal of and interest on such Federal Securities promptly as such principal and interest become due and shail appiy all money so collected to the payment of the Refunded Bond Requirements as aforesaid. -5- Section 3. Accounting for Escrow. A. The moneys and the Federal Securities accounted for in the Escrow Account shall not be subject to checks drawn by the Town or otherwise subject to its order except as otherwise provided in paragraph B of Section 1 and in Section 8 hereof. B. The Escrow Bank, however, shall transfer from time to time from the Escrow Account to the paying agents for the Refunded Bonds sufficient moneys to permit such paying agents to pay, without any default, the Refunded Bond Requirements, as the same become due, as provided herein. C. Except as otherwise provided in paragraph B of Section 1 hereof, there shall be no sale of any Federal Securities held hereunder and no Federal Securities held hereunder and callable for prior redemption at the Town's option shall be called at any time for prior redemption, except if necessary to avoid a default in the payment of the Refunded Bond Requirements. Section 4. Maturities of Federal Securities. A. Any Federal Securities shall be purchased in such manner: (1) So that such Federal Securities may be redeemed in due season at their respective maturities to meet the Refunded Bond Requirements, as the same become due, and (2) So that any sale or prior redemption of such Federal Securities shall be unnecessary. B. There shall be no substitution of any Federal Securities except as otherwise providea in paragraph B of Section 1 hereof. Section 5. Reinvestments. A. The Escrow Bank shall reinvest the cash balances listed in Exhibit 2 hereof for the period, if any, designated in Exhibit 2 in state and local government series securities ("slgs") purchased by the Escrow Bank for the Town directly from the United States Government. All of the slgs in which such reinvestments are made shall bear interest at the rate of 0% per annum. The Escrow Bank agrees to comply with Part 344 of Title 31, Code of Federal Regulations and with such other regulations of the United States Treasury, Bureau of Public Debt as are from time to time in effect in subscribing for and purchasing such slgs, including without limitation any requirements -6- with respect to submitting subscriptions to a Federal Reserve Bank or Branch in advance of the date of purchase of the slgs. B. In addition to or, as the case may be, in lieu of the reinvestments required by paragraph A of this Section 5, the Escrow Bank at the written direction of the Town shall reinvest in Federal Securities any moneys received in payment of the principal of and interest on any Federal Securities accounted for in the Escrow Account, subject to the limitations of Sections 1 and 4 hereof and to the following additional limitations: (1) Any such Federal Securities shall not be subject to redemption prior to their respective maturities at the option of their issuer. (2) Any such Federal Securities shall mature on or prior to the date or dates when the proceeds thereof must be available for the prompt payment of the Refunded Bond Requirements. (3) Under no circumstances shall any reinvestment be made under this paragraph B if such reinvestment, alone or in combination with any other investment or reinvestment, violates the applicable provisions of Section 148, Tax Code, and the rules and regulations thereunder. (4) The Escrow Bank shall make no such reinvestment under this paragraph B unless the Town first obtains and furnishes to the Escrow Bank a written opinion of nationally recognized bond counsel to the effect that such reinvestment, as described in the opinion, complies with subparagraph (3) of this paragraph B, and a verification report from a certified public accountant which demonstrates the sufficiency of the reinvestments to provide for timely payment of the Refunded Bond Requirements, as the same become due. C. Except as provided in this Section 5, the Escrow Bank shall have no obligation by virtue of this Agreement, general trust law or otherwise to make any reinvestment of any moneys in the Escrow Account at any time. Section 6. Sufficiencv of Escrow. The moneys and Federal Securities accounted for in the Escrow Account shall be in an amount (or have appropriate maturities and yields to produce an amount) which at all times shall be sufficient to pay the Refunded Bond Requirements as they become due, subject to the provisions of Section 10 hereof. -7- Section 7. Transfers for Refunded Bond Requirements: Notice. A. The Escrow Bank shall make such credit arrangements with and transfers to the paying agents for the Refunded Bonds, as will assure, to the extent of money in the Escrow Account properly allocable to and available therefor, the timely payment of the Refunded Bond Requirements. B. To the eatent the payment of the Refunded Bond Requirements requires the prior redemption of any Refunded Bonds, the Escrow Bank shall cause notice of such redemption to be given in the time and manner required by the ordinances authorizing the issuance of the Refunded Bonds. Section 8. Termination of Escrow Account. When payment or provisions for payment sha11 have been made with the paying agents for the Refunded Bonds so that all Refunded Bond Requirements of the Refunded Bonds shall be or shall have been paid in full and discharged, the Escrow Bank shall immediately pay over to the Town the moneys, if any, then remaining in the Escrow Account and shall make forthwith a final report to the Town Finance Director. Such moneys may be used by the Town for any lawful purpose, subject to any limitations in the Bond Ordinance. Section 9. Fees and Costs. A. The Escrow Bank's total fees and costs for and in carrying out the provisions of this Agreement, have been fixed at $1,200, which amount is to be paid at or prior to the time of the issuance of the 1998 Bonds by the Town directly to the Escrow Bank as payment in full of all charges of the Escrow Bank pertaining to this Agreement for services performed hereunder. B. Such payment for services rendered and to be rendered by the Escrow Bank shall not be for deposit in the Escrow Account, and the fees of and the costs incunred by the Escrow Bank shall not be deducted from such account. Section 10. Possible Deficiencies. A. If at any time it shall appear to the Escrow Bank that the money and any interest on and principal of the Federal Securities in escrow allocable for such use under this Agreement, including, without limitation, the known minimum yield from the Initial Federal Securities, will not be sufficient to make any required payment due on the Refunded Bond Requirements as the same become due, the Escrow Bank shall notify in writing the Town Finance -8- Director as soon as reasonably practicable of such fact, the amount of such deficiency and the reason therefor. B. Thereupon the Town shall forthwith deposit with the Escrow Bank for deposit in the Escrow Account such additional Pledged Revenues (as defined in the ordinances authorizing the issuance of the Refunded Bonds) as may be required. C. The Escrow Bank shall in no manner be responsible for the Town's failure to make any such deposit. Section 11. Status Report. A. In January 1999 and in January of each year thereafter until the termination of the Escrow Account, the Escrow Bank shall submit to the Town Finance Director a report covering all money which the Escrow Bank shall have received and a11 payments which it sha11 have made or caused to be made hereunder during the next preceding 12 calendar months. B. The last report, however, shall be made in accordance with the provisions of Section 8 hereof. C. Each such report (except the last report) shall also list all Federal Securities and the amount of money accounted for in the Escrow Account on the December 31 next preceding the report. D. Each such report (including the last report) sha11 further indicate for which period any Federal Securities pledged to secure the repayment to the Town of any uninvested moneys were placed in pledge, as permitted by Section 13 hereof. Section 12. Character of Denosit. A. It is recognized that title to the Federal Securities and money accounted for in the Escrow Account from time to time shall remain vested in the Town or in the Escrow Bank on behalf of the Town but subject always to the prior charge and lien thereon of this Agreement and the use thereof required to be made by the provisions of this Agreement and the Bond Ordinance. B. The Escrow Bank shall hold all such Federal Securities (except as they may be held as book-entries) and money in the Escrow Account as a special trust fund and account, separate and wholly segregated from all other securities and funds of the Escrow Bank or deposited therein, and shall never commingle such securities or money with other securities or money. -9- I Section 13. Securing Deposit. A. The Escrow Bank may cause the Federal Securities accounted for in the Escrow Account to be registered in the name of the Town or in the name of the Escrow Bank on behalf of the Town for payment, if they are registrable for payment, and in such event shall obtain the necessary endorsements from the duly authorized officials of the Town as they become due. B. The Town, in connection with any Federal Securities accounted for in the Escrow Account and held as book-entries, shall cooperate with the Escrow Bank and shall forthwith make arrangements with an appropriate representative of the issuer of such Federal Securities, so that the interest on and the principal of the Federal Securities shall be promptly transmitted, as the same become due from time to time, to the Escrow Bank for the benefit of the Town. C. All uninvested money held at any time in the Escrow Account shall be continuously secured by the deposit of Federal Securities in a principal amount always not less than the total amount of uninvested money in the Escrow Account: (1) In any branch of the Federal Reserve Bank, or (2) In any commercial bank which: (a) Is a state or national bank or trust company, and (b) Is a member of the Federal Deposit Insurance Corporation, and (c) Is a member of the Federal Reserve System, and (d) Has a capital and surplus of $10,000,000 or more, and (e) Is exercising full and complete trust powers, and (f) May be located in the State or without the Sta.te ("trust bank"), or (3) In any branch of the Federai Reserve Bank and in one or more trust banks (or any combination thereo fl. D. Such Federal Securities so held as a pledge shall be used whenever necessary to enable the paying agents far the Refunded Bonds to pay the Refunded Bond Requirements as the same become due, to the extent other moneys are not transferred or caused to be transferred for such purpose by the Escrow Bank. -10- ~ E. Any Federal Securities (except as they may be held as book-entries) and any uninvested moneys accounted for in the Escrow Account may from time to time be placed by the Escrow Bank for safekeeping wholly or in part in any such trust bank, only if prior to any such transfer the Finance Director consents thereto in writing. F. Each such trust bank holding any Federal Securities accounted for in the Escrow Account or any uninvested moneys accounted for therein shall be furnished by the Escrow Bank with a copy of this Agreement prior to such deposit. G. By the acceptance of such Federal Securities or such uninvested moneys, each such trust bank shall be bound in the same manner as the Escrow Bank, as herein provided. H. The Escrow Bank, however, shall remain solely responsible to the Town: (1) For any investment or reinvestrnents of moneys pursuant to Sections 1 and 5 hereof, (2) For transfers of moneys and causing redemption notices to be given pursuant to Section 7 hereof, (3) For the termination of the Escrow Account pursuant to Section 8 hereof, (4) For any notification of prospective deficiencies pursuant to Section 10 hereof, (5) For the periodic sta.tus reports pursuant to Section 11 hereof, and (6) For defraying any charges of any branch of the Federal Reserve Bank or any trust bank far any deposits of Federal Securities as pledge to secure uninvested moneys of Federal Securities in escrow, and of uninvested moneys in escrow (or any combination thereo fl or for any other service relating to this Agreement or the Escrow Account. 1. Notwithstanding the liabilities of the Escrow Bank stated in paragraph H of this Section 13, the Escrow Bank may cause any one, all or any combination of the duties stated in said paragraph H to be performed on its behalf by any trust bank. J. If at any time the Escrow Bank fails to account for any moneys or Federal Securities held by it or by any such trust bank in the Escrow Account, such moneys and securities shall be and remain the properiy of the Town. -11- K. If for any reason such moneys or Federal Securities cannot be identified, all other assets of the Escrow Bank and of each such trust bank failing to account therefor shall be impressed with a trust for the amount thereof, and the Town shall be entitled to a preferred claim upon such assets. L. No money paid into and accounted for in the Escrow Account shall ever be considered as a banking deposit and neither the Escrow Bank nor any such trust bank shall have any right or title with respect thereto. Section 14. Underwriter and Bondholders Not Responsible. The Underwriter and owners from time to time of the 1998 Bonds sha11 in no manner be responsible for the application or disposition of the proceeds thereof or any moneys or Federal Securities accounted for in the Escrow Account. This Section 14 shall not relieve the Escrow Bank (if it is an owner of the 1998 Bonds), in its capacity as Escrow Bank, from its duties under this Agreement. Section 15. Amendment. A. The 1998 Bonds shall be issued in reliance upon this Escrow Agreement and except as otherwise provided this Agreement shall be irrevocable and not subject to amendment after any of the 1998 Bonds shall have been issued, unless all the owners of the Refunded Bonds consent to such amendment. B. The provisions of this Agreement may be amended, waived or modified upon approval of the owners of all of the then outstanding 1998 Bonds. The provisions of this Agreement also may be amended, waived or modified for one or more of the following purposes: (1) to cure any ambiguity, or to cure, correct or supplement any formal defect or omission or inconsistent provision contained in this Agreement; (2) to pledge additional revenues, properties or collateral as security for the Refunded Bonds; (3) to deposit additional monies or Federal Securities to the Escrow Account, or (4) if each securities rating agency (each, a"Rating Agency") then rating the Refunded Bonds at the request of the Town has confirmed in writing that such amendment, waiver or modification will not result in the lowering or withdrawal of any of its ratings on the Refunded Bonds. -12- Notwithstanding any other provision hereof no amendment, modification or waiver shall be effective if it is materially prejudicial to the owners of the Refunded Bonds or affects the exclusion of the interest on the Refunded Bonds or the 1998A Bonds from gross income from federal income tax purposes, unless such amendment, waiver or modification is approved by the owners of all of the then outstanding Refunded Bonds or the 1998A Bonds, as the case may be. C. The Escrow Bank shall provide copies of any such amendments, waivers or modifications to each Rating Agency. Section 16. Exculpatorv Provisions. A. The duties and responsibilities of the Escrow Bank are limited to those expressly and specifically stated in this Agreement. B. The Escrow Bank and any of its officers, agents or employees shall not be liable or responsible for any loss resulting from any investment or reinvestment made pursuant to this Escrow Agreement and made in compliance with the provisions hereof. C. The Escrow Bank and any of its officers, agents or employees shall not be personally liable or responsible for any act which it may do or omit to do hereunder, while acting with reasonable care, except for duties expressly imposed upon the Escrow Bank hereunder or as otherwise expressly provided herein. D. The Escrow Bank shall neither be under any obligation to inquire into or be in any way responsible for the performance or nonperformance by the Town of any of its obligations, nor shall the Escrow Bank be responsible in any manner for the recitals or statements contained in this Agreement, in the Bond Ordinance, in the Refunded Bonds, or in any proceedings taken in connection therewith, such recitals and statements being made solely by the Town. E. Nothing in this Agreement creates any obligation or liabilities on the part of the Escrow Bank to anyone other than the Town and the owners of the Refunded Bonds and the 1998 Bonds. Section 17. Time of Essence. Time is of the essence in the performance of the obligations from time to time imposed upon the Escrow Bank by this Agreement. -13- ~ Section 18. Successors. A. Whenever in this Agreement the Town or the Escrow Bank is named or is referred to, such provision is deemed to include any successor of the Town or the Escrow Bank, respectively, immediate or intermediate, whether so expressed or not. B. All of the stipulations, obligations and agreements by or on behalf of and other provisions for the benefit of the Town or the Escrow Bank contained in this Agreement: (1) Shall bind and inure to the benefit of any such successor, and (2) Shall bind and inure to the benefit of any officer, board, authority, agent or instrumentality to whom or to which there shall be transferred by or in accordance with law and relevant right, power or duty of the Town or the Escrow Bank, respectively, or of its successor. Section 19. Severabilitv. If any section, paragraph, clause or provision of this Escrow Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this Agreement. The Town shall give written notice to each Rating Agency if any provision of this Agreement is held to be invalid or unenforceable. IN WITNESS WHEREOF, THE TOWN OF VAIL, COLORADO has caused this Escrow Agreement to be signed in the Town's name by the Mayor of the Town, and to be attested by the Town Clerk, with the seal thereof hereunto affixed; and the Escrow Bank has caused this Escrow Agreement to be signed in its corporate name by one of its Authorized Officers, sealed with its corporate seal, and attested by or one of its Authorized Officers, all as of the day and year first above written. TOWN OF VAIL, COLORADO Mayor (TOWN SEAL) Attest: Town Clerk -14- ` THE BANK OF CHERRY CREEK, N.A. By: Authorized Officer (BANK SEAL) Attest: Authorized Officer -15- EXHIBIT 1 ACCOUNTANT'S REPORT -16- ~ EXHIBIT 2 REINVESTMENTS Interest Maturity Date Reinvested Amount Rate Date -17- ~ *3 ~ CJ G,LU I' ~ Antlers Summer Revenue d : ~ 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - LLI I]] llti 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 G~Ut~u Q 8' l 8~~ $ &A. ~ 6 ~ , June 25, 1998 Mr. 7osef Staufer 100 E. Meadow Drive . Vail, CO 81657 Dear Nr. Staufer: Please note tliat Pii?nacle Resort Syslems is the tnana6ement coinpany that haudles The Holiday Iiui. The Registered Agent is Mr. Fraiilc Joluison, 3531 E. Main Gore Geek Drive, Vail, 476-353Eawards, foliowing is a list of tl~e Board ot Directors: Mr. Bruce Gillie, Presidei 240 olcolt 92G- Bronco 3256 Lane, and Mr. RoUert 926-1227, Mr. Bruce Kendall,Vice President, 4236 Bellyaclie 926-0918. Please let us know if tl~ere is Levine, Secretary/Treasurer, 0700 June Creek Road, Edwards, any oUier information you would like. A copy of the arlicles of incorporaUon is available upou request. sinccrely yours, I G1'~ CJ~(.~ ~ ~`l8•98 3 To: Vail Town Council From: Vail 1st Organizing Committee Jack Currilz Steve Simonett Kaye Fei iy Hermall Staufer Howard Gardner Joe Staufer Jim Lamont Packy Wallcer Steve Rosenthal Ron Weuistein Re: Formation of VAIL 1ST and Reallocation of the Business Licellse Fee Date: August 18, 1998 MISSION STATEMENT To promote the Town of Vail through the marlteting of special events, training and services which are geared towards increasing busiiless and generating revenues in Vai1. SI'RUC'I'LJRE 1. The money currently collected via the Business License Fee will no longer be funnelled in to the Marketulg Board but will remain with the Town of Vail and will be administered by SteveThompson 2. A new organization will be formed called VAIL 1ST. This organ- ization will have the responsiUilty of reviewing all applications for Business License Fee fuizds aYnd making recoiluneildations regarding those disbursements. 3. As applications are approved, direction will be given for the impleinentatioii of such activities accord'uig to the allocated budget. liz soine cases the WTCB will Ue requested to orgailize events with the budgeted dollars channeled to thern. In other cases, outside agencies will be contracted with to provide the ilecessary sei•vices. 4. VAIL 1ST will make quarterly presentations to the Town Council for the purpose of keeping the TC advised of eYpenditures aizd to seeic input when necesarey alzd/oi required. BO;AIZD OF DIIC-CTORS VAIL 1ST I3oa.i-d of Ducctors will bc broad Uascd and will Uc compriseci of inembers of the Vail business community. It will be made up ot members representing the following segments of tlie comali,u-iity: 3 Va.il Village 2 Liotlshead 1 East Vail 1 West Vail 1'hese members will be appointed by their respective merchants' groups. BUDGL I' $25,000 Turn It Up! $25,000 The Guide to Vai1 $90,000 Special Events ie. ranuly Fest and Chili Cook Off, Jazz Thursdays, Vail oiz Sa.le $100,000 Advertising $15,000 Special Projects ie. Construction Wall pro}ect, Employee of the Month $35,000 Adrrunislralion 2 8 000 Conringency $318,000 TOTAL BUDGLT SYNOPSIS The maiil priority of VAIL 1ST is to focus on the promotion of the Town of Vail and to have that focus determined by the business community from which the Business Liceizse Fees are collected. While we support a valley wide marketing approach, it is our reconunendation that the Business License ree dollars benerated ul tlie Town of Vail Ue used for promoting the Town of Vail exclusively. It is also our recommendarion that the Town of Vail conrinue to fund the Marketing Boarci with the $185,000 tliat it contributed this year from tlie General Fund. ,it is the hope and intent of the VAIL 1ST organizing comnuttee that by Uringulg self detern2unation to the fore front, we can insure that Vail will retnaul 1st as a resort and a cotnmunity. ~ 1998 INTERNATIONAL FEST BUDGET EXPENSES Advertising 3000.00 Posters and Flyers 1000.00 T Shirts 1500.00 Security Street Activities 2500.00 Dance Event 700.00 Vail Police 840.00 4040.00 Dance Company 3500.00 Stage & Set up 11030.00 Site visit 1500.00 Event/Liquor permits 150.00 Insurance General&Liquor Liability 1225.00 Weather 2250.00 3475.00 Portable toilets 255.00 Trash removal 200.00 $29650.00 REVENUES Special Events Funding 15500.00 vvMa 1500.00 Beer sales 1200.00 T shirt sales 1000.00 Ticket sales $10000.00 $29200.00 The WMA will be making up whatever shortfall there may be. Hopefully there will be none. August 12,1998 Ms. Kaye Ferry pcesident a la Carte . Va.il 1VZercha.c~ts Associatioz~ 288 Brxdge Stz'ect P U B L I, H I N G Va.il, CO 81657 De,a,r Kaye, ,A.s Per your request tbe foUowing is a report on 77te Guidc la Yail.,A,11 in aU I feel this h.as been a suceessful project fo,r the tuerchants of Vail ancl Lionshead , guests.of thc towra, a.nd a]a CarCe Publishixg, We look forwa;cd to enterirg into an agreemeot for future issues, tsnd, sinceTely hope a11 concemed are plcased with the outcome of this comrnunity pz-oj ect. ric 1 ours, C, T e~- L -Vresideat THE GUIDE TO VAIL RE'VENUE / EXPEN'SE REPORT 50,000 COPIE S RELEASED MA,y 22,1998 150,000 COP.TES TO BE RELEA,SED NO"VEMBER 20,199$ REVENUE TOWN OF VA,II, $10,000.00 . NOV(JS CREDYT C,A,IZDS 13,500.00 VAIL / LI4NSI-IEAD MERCHANTS 1,500.00 TOTAI. .A,D SAT.,ES 110,702.00 "TOTAL REVENUE $135,000.00 FXPENSE PR1NTJaVG $89,852.00 L,AI'OUT & DESIGN 17,500.00 SALES CONIlv1ISIQNS 4,300.00 SHEPPING 1856.00 DISTRII3UTION 5000,00 TOT,AL EXPENSES $118,808.00 ' Z'.O. Box 2333 Vail, ColQrado 81658 (970) 476-3663 (FOOD) 1998 TURN IT UP! BUDGET EXPENSES Advertising 6500.00 Security 450.00 Professional Fees Speaker Fees 8500.00 Legal Fees 1500.00 Clerical Fees 1500.00 11500.00 Reservation System 500.00 Postage & Delivery 1050.00 Supplies Copies 200.00 Printing 2500.00 Miscellaneous 800.00 3500.00 Ballroom Rental 5750.00 Music 750.00 Promotions 1050.00 Meals 1000.00 Miscellaneous 400.00 $32600.00 REVENiJES Town of Vail 24000.00 Other Contributions 2000.00 Seminar Receipts 7500.00 $33500.00 1997 TURN IT UP! BUDGET EXPENSES Advertising 4879.14 Security 335.00 Professional Fees SpeakerFees 6000.00 Legal Fees 2118.99 Clerical Fees 885.50 Reservation System 9004.49 Postage & Delivery 339.42 Supplies 815.22 Copies 143.76 Logo Disks 80.00 Flyers 237.45 Printing 1459.60 Misc. 251.64 2172.45 Travel(Speaker Mileage) 198.00 Ballroom Rental 5000.00 Band 750.00 Promotions Overland & Express 617.00 City Market 400.00 Wal-Mart 500.00 Meals 1517.00 Committee Dinner 281.91 Committee Meetings 509.44 Speaker Meals 80.00 871.35 $25882.07 REVENUES Town of Vail 19000.00 Other Contributions 3750.00* Interest Income 140.67 Seminar Receipts 6002.50 $28893.17* * *2500.00 is being carried as a A!R from WestStar Bank. The check "is in the mail" due to a bookkeeping glitch. In the interim, the VVMA has advanced those funds to TIU! **In kind contributions, if they were able to be calculated, would cause this number to change considerably. -Hotels donated not only space but also refreshments. -Retailers donated prizes and gift certificates. -VA donated ski passes. -The Marriott discounted their facility. -City Market provided food for the party. -New Belgium Brewing provided beer. -The media donated and discounted space. -Thousands of volunteer hours were generously given. In return for sorne of these contributions, we provided space for their employees "free of charge". Consequently, our revenues under Seminar Receipts are substantially lower than it would have been if all tickets were paid for. For example, the TOV was able to send 190 employees for no charge as the result of its contribution. 1998 CHILI COOK-OFF/ FAMILY FEST BUDGET EXPENSES Advertising 2205.00 Posters and Flyers 3535.00 T-shirts 2970.00 Security 1950.00 Music 2050.00 Burrow Rides 1000.00 Portable Toilets 170.00 Awards 160.00 Ice 150.00 Cowboy Hats 54.00 $14244.00 REVENUES Funding Special Events Seed Fund 6000.00 WestStar Bank 250.00 1 St Bank 500.00 Miscellaneous Merchants 100.00 6850.00 V/A Burrow Rides 1000.00 Beer Sales 1520.00 Chili Ticket Sales 2825.00 T-shirt Sales 1600.00 Soda Sales 185.00 Entrance Fees 340.00 $14300.00 xc August 18, 1998 ' Gk4 As property owners, registered voters, participants in Vailtomorrow, participants in the Common Ground process and witnesses to the Council Meeting of June 30th, We and many others are currentfy suing the town to prevent the enactment of Resolution 9. The concept was great, the cause is Noble, but any thinking person must ask some serious questions before we proceed down this road. The current council was elected on a platform of preservation of open space and the resolution of the housing problem. When one reads this resolution it is painfully clear that the primary goal was sacrificed to achieve the second. I ask that the Council to consider the following questions. 1 Why was the RETT tax enacted? 2. Why was the Town Master Plan for Development being disregarded? 3. Why was the Donovan Park Master plan being ignored? 4. Why was this open space purchased? 5. Why haven't other alternatives been pursued before building on open space? A. Purchase, renovation and addition to Timber Ridge. B. Purchase and completion of Cascade Ruins. C. Mountain Bell site not adjacent to any homeowners. D. Old town hall building more recently the Gym building. E. The VA mainfenance center west of Lionshead. (The vehicles could be housed underground with very adequate housing above). F. Incentives for homeowners to rent space for seasonal help. or long term employees. The current polices discourage this dispersed solution. 6. Why is the seasonal housing proposing, 4 and 5 bedroom units? What type of problems will this create? We saw what trouble the town had selling 3 bedroom units in the Commons. 7. Who is driving this? 8. Who will be able to purchase the (Affordable units)? They will require approximately $8,000 down and $1,200 per month payments or an income in excess of $57,000 per year. 9. Why is the town entering the development business? 10. Is there a housing crisis? Check the rental ads in the newspaper. 11 What is the purpose of refinancing the Town Debt and why is it an emergency? 12. Why did so many of the Town residents feel that legal action was their only recourse? We find it hard to believe that all these issues were seriously considered before adopting this resolution. Paul and Carol Hymers Citizens for ponavon Park and members of Glen Lyon Home Owners Association ~ Y Memorandum To: Town Council From Andy Knudtsen Subject: Process for the next steps in the Common Ground process _ Date: August 18, 1998 The purpose of this discussion is to solicit public input on the proposed schedule for the next steps in the Common Ground processes and to receive direction from Council on the proposed schedule. Based on the Council's direction for additional community involvement opportunities to determine density and development parameters in the next steps of the Common Ground process, staff has developed a proposed schedule. The schedule and a cover letter were mailed directly to all of the individuals who have been involved in the Common Ground process up to this point. It focuses on one site at a time and provides eight opportunities for involvement. If approved by Council, it will be sent to all property owners in a specific neighborhood where there is a site under consideration 2- 3 weeks before the first meetings begin. ~ 111 TOWN OF VAIL ~ Department of Community Developmenl • • 75 South Frontage Road Yail, Color.ado 81657 . . 970-479-2138 FAX 970-479-2452 August 5, 1998 ' Dear Common Ground Participant, Please join us as we move into the next Common Ground phase - we've outlined a series of proposed meetings which will be opportunities for you to describe the types of housina and park development that will work (or won't work) with existina neighborhoods. Before we begin these neighborhood discussions, we'd like to hear your thoughts about the proposed process. Please come to the August 18"' Town Council meeting, 7:00 pm in Council Chambers, to let us know what you think as we move into the next phase of Common Ground. As you recall, six of the seven Town Council members approved the siting package on June 30te. but defened the decision on density until additional public input could be received. While the Council is interested in moving forward with open space and community facilities. Council members have suggested we slow the next phase of the process as it relates to housinQ and parks. This will enable community participants to focus on one site at a time and ensure that all ideas are discussed thoroughly. This aspect of the process could be particularly beneficial, as some neighborhoods have filed suit and are contesting the plan. It is our hope that dialogue will successfully address underlying concems. This letter includes: 1. An overview of the four elements of the Common Ground plan; 2. An list of eight opportunities for community involvement in the proposed next phase of Common Ground; 3. A list of the proposed ground rules, clarifying the assumptions for all who are involved in the next phase of the process. The key elements of the next phase of the Common Ground process, alonQ with recommended actions, include: y Element Action 1. Open Space Reconvene open space committee to evaluate the 130 acres identified in the Common Ground process and make recommendation to Town Council as to the parcels appropriate for dedication, per the Charter ordinance. 1 C~ RECYCLEDPAPER Element Action 2. Community Facilities Establish process to prioritize community needs and desires, as they relate to potential community facilities. Look for details about this separate process in August. 3. Housing Move forward with Timber Ridge and Hud Wirth sites, working with current owners in a collaborative manner to ensure the sites are developed andlor redeveloped for housing. Break down the Phase I housing sites, focusing on Lionshead and West Vail this summer and Tract C and the three benches of Donovan Park this fall (see specifics below). Initiate buy-down process; deed restricting existing housing stock to sell to owner-occupants. 4. Parks Develop park plans in conjunction with housing sites, specifically West Vail and two or three benches of Donavon park during Phase L As the Lionshead and West Vail sites are the first for consideration, the Town has developed a proposed process for community involvement, focusing on each one individually. Once we have completed community discussions with these first two sites, we'll start on the next two, which involve the benches of Donovan Park and the privately held Tract C. near the Mountain School. The scoop on the first two sites is listed on the attached sheet. We look forward to your contribution to the process please call us if you have suggestions that would make the proposed process better. We are available to talk with you: Andy Knudtsen 479-2440 Suzanne Silver[hom 479-2115 Russ Forrest 479-2146 We also look forward to seeing you at the August 18`h Council meeting to receive your input on the next steps for Common Ground. Sin rely, V~ \ y dt en Senior ousing Policy Planner 2 , Y Opportunfty for involvement VVest Vail Lionshead r #1 Bus Tour - Purpose of ineeting is to review a range of site Monday, August 31 Monday, Sepccmber 7 planning and architcctural prototypes, tour developments of difFering densities and see examples of exiscing affordable housing 4~~~ pm ~:00 - 7:00 pm developments. Tuesday, September 1 Tuesday, September 8 Two buses, holding 20 passengers each, wil] be available. 10:00 - noon 10:00 - noon Additional bus trips will be provided, if there is the demand Meet az the Dancing Bear Meet at che Dancing Bear #2 Community Dialogue - Purpose of inecting is to debrief &om Wednesday, September Z Wedoesday, September 9 the bas tour and graphically record ideas about each housing or pazk 5:00-7:00pm 5:00-7:00pm development site. 1nn at West Vail (Use Inn at West Vail (LJse Dancing Bear entrance) . Dancing Bear entrence) StafTAnalysis - Will evaluate options and pzovide detailed analysis September 7- 28 September 14 = 25 . " as to economic viabiliry, compatibiliry with neighborhood, sum- maries of themes expressed during the previous two meetings, etc. #3 Open H-ouse - Purpose of open house will be to communicate Week of September 21 - 25 Week of Sept. 28 - Oct. 2 all ideas generated in previous two meetings. Self-guided tour of M- r 10:00 am co 8:00 pm M- F i 0:00 am to 8:00 pm materiat will be on display for the entire week. Vail Library Atrium Vail Library Atrium #4 Community Meeting - Purpose is to take one evening during Thursday, September 24 Thucsday, October 1 the week of the open house and listen to responses from community 5:00-7:00pm 5:00-7:00pm members. This will be an opportunity for you to focus on specific issues, ask detailed questions about rationale aad express additional Vail Library Communiry Vail Library Communiry sugeestions or solutions. Room Room #5 Council vleeting - Purpose is to take into account all Tuesday, October 6 Tuesday, October 20 information generaced up to this point in the Common Ground 7;00 pm 7:00 pm process and approve speciiic development pardmeters for the site. These parameters will constitute the core of the Request for Vail Town Council Chambers Vail Town Council Chambtrs Proposals which will follow. Dran RFP October 1998 October 1998 Issue RFP November 1998 November 1998 : 6 Review Developer Propasals - A set oi the proposals will be Nov/Dec 1998 NowDec 1998 available for the community to review. Give us your thoughts on the range of development teams who respond to the RFP. #7 Select Developer Team - The Town Council will confirm a December 1998 December 1998 developmen[ team selection at a regularly scheduled meeting. Pleas& bri_ne you.r comments and communicau them to the Council at the Tuesday afteinoon worksession. 98 Development Review Process - There will be sevcral January/February/March 99 January/February/March 99 opponunities to panicipate in the Development Review Process, as che desi ms proeress through the standard order of public hearings, includine Planning and Environmentai Commission - as needed - Desien Review $oard, and Town Council. Complete Design for Construction April/May 99 ApriUMay 99 Issue buildine permit and begin construction June 99 June 99 Compiece conscruccion April 2000 April 2000 3 _t Process Givens Each of the bulleted items listed below help clarify expectations by all involved. ~ Community involvement will be proactively sought to further refine all identified action sites included in the Common Ground plan adopted June 30, 1998. Parks, community facilities, housing and open space actions will be planned with community input. ~ Decisions about the sites and uses have been made and will not be a part of the deliberations in this next phase; however, the Town recognizes Common Ground as an evolving process. Each housing project will be evaluated based on the success (and/or failure) of previous projects or as cucumstances and conditions in the community change. ~ I'ue finai product to be generated by this phase of the Common Ground community involvement process will be a set of specific development parameters for each housing and park site. These will be listed in the Request for Proposals ( RFPs) the Town will use to hire development teams for each site. ~ The Town will use but not be limited to the following criteria to determine appropriate density of future housing projects: compatibility to the density of adjacent development, traffic and parking constraints, impacts to neighborhood services, and the ability to cost effectively achieve the Town's housing goals. The Town Council has committed to reducing density recommendations made in the Common Ground workshops while still making significant strides towards solving the housing problem ~ The Town Council has the final responsibility and decision making authority for the development parameters. • Participation in this phase is open to all who wish to become involved ~ As a facilitator in creating seasonal housing solutions, the Town will laok to the local business community as a financial resource. • Final project design will go through the required development a}~proval process, and be acted on hy the Design RPView Roard, the Planning and Environmental 11--ommissicn (as needed) and the Town Council. 4 , Memorandum To: Town Council From: Andy Knudtsen Subject: Process for the next steps in the Common Ground process Date: August 18, 1998 The purpose of this discussion is to solicit public input on the proposed schedule for the next steps in the Common Ground processes and to receive direction from Council on the proposed schedule. Based on the Council's direction for additional community involvement opportunities to determine density and development parameters in the next steps of the Common Ground process, staff has developed a proposed schedule. The schedule and a cover letter were mailed directly to all of the individuals who have been involved in the Common Ground process up to this point. It focuses on one site at a time and provides eight opportunities for involvement. If approved by Council, it will be sent to all property owners in a specific neighborhood where there is a site under consideration 2- 3 weeks before the first meetings begin. , ~y TOWN OF VAIL Department of Community Development • • 75 South Frontage Road Yail, Colorado 81657 . , 970-479-2138 FAX 970-479-2452 T"' August 5, 1998 Dear Common Ground Participant, Please join us as we move into the next Common Ground phase - we've outlined a series of proposed meetings which will be opportunities for you to describe the types of bousina and park development that will work (or won't work) with existina neighborhoods. Before we begin these neighborhood discussions, we'd like to hear your thoughts about the proposed process. Please come to the August 18" Town Council meeting, 7:00 pm in Council Chambers, to let us know what you think as we move into the next phase of Common Ground. As you recall, six of the seven Town Council members approved the siting package on June 30`h. but deferred the decision on density until additional public input could be received. While the Council is interested in moving forward with open space and community facilities, Council members have sug(yested we slow the next phase of the process as it relates to housinQ and parks. T'his will enable community participants to focus on one site at a time and ensure that all ideas are discussed thoroughly. This aspect of the process could be panicularly beneficial, as some neighborhoods have filed suit and are contesting the plan. It is our hope that dialogue will successfully address underlying concerns. This letter includes: 1. An overview of the four elements of the Common Ground plan; An list of eight opportunities for community involvement in the proposed next phase of C.ommon Ground; 3. A list of the proposed ground rules, clarifying the assurrptions for all who are involved in the next phase of the process. The key elements of the next phase of the Common Ground process, along with recommended actions, inctude: Element Action 1. Open Space Reconvene open space committee to evaluate the 130 acres identified in the Common Ground process and make recommendation to Town Council as to the parcels appropriate for dedication, per the Charter ordinance. 1 C~ RECYCLEDPAP6R Element Action 2. Community Facilities Establish process to prioritize community needs and desires, as they relate to potential community facilities. Look for details about this separate process in August. 3. Housing Move forward with Timber Ridge and Hud Wirth sites, working with . current owners in a collaborative manner to ensure the sites are developed and/or redeveloped for housing. _ Break down the Phase I housing sites, focusing on Lionshead and ' West Vail this summer and Tract C and the three benches of Donovan Park this fall (see specifics below). Initiate buy-down process; deed restricting existing housing stock to sell to owner-occupants. 4. Parks Develop park plans in conjunction with housing sites, specifically West Vail and two or three benches of Donavon park during Phase L As the Lionshead and West Vail sites are the first for consideration, the Town has developed a proposed process for community involvement, focusing on each one individually. Once we have completed community discussions with these first two sites, we'll start on the next two, which involve the benches of Donovan Park and the privately held Tract C. near the Mountain School. The scoop on the first two sites is listed on the attached sheet. We look forward to your contribution to the process please call us if vou have suggestions that would make the proposed process better. We are available to talk with you: Andy Knudtsen 479-2440 Suzanne Silverthom 479-2115 Russ Forrest 479-2146 We also look forward to seeing you at the August 18`h Council meeting to receive your input on the next steps for Common Ground. 4ous en ing Policy Planner ~ . ' Opportunity for invoivement West Vafl Lionshead #1 Bus Tour - Purpose of ineeting is to re-,zew a range of site Monday, August 31 Monday, Sepcember 7 planning and architectural prototypes, tour developments of 5:00 - 7:00 pm 5:00 - 7:00 pm differing densities and see examples of existing afTordable housing developments. Tuesday, Sep[ember 1 Tuesday, September 8 Two buses, holding 20 passengers each, will be available. ~ ~:00 - ooon 10:00 - noon Additional bus trips will be provided, if there is the demand Meet at the Dancing Beaz Meet at the Dancing Bear #2 Community Dialogue - Purpose of ineeting is to debrief from Wednesday, Septemixr 2 t4'ednesday, Septerqber 9 the bus tour and graphica]ly rewrd ideas about each housing or park 5:00 - 7:00 pm 5:00 - 7:00 m development site. P Inn at West Vail (Use 1nn at West Vail (Use Daacing Bear entrance) , Dancing Bear entrance) Staff Analysis - Will evaluate options and provide detailed analysis September 7-18 September 14 - 25 ' - as to economic viabiliry, compatibiliry with aeighborhood, sum- maries of themes expressed during the previous two meetings, etc. #3 Open House - Purpose of open house will be to communicate Week of September 21 - 25 Week of Sept. 28 - Oct. 2 all ideas 2enerated in previous two meetines. Self-guided tour of M- F 10:00 am to 8:00 pm M- F i U:UO am to 8:OU pm material wili be on display for the entire week. Vail Library Atrium Vail Library Atrium #4 Community Meeting - Purpose is to take one evening during T3ursday, September 24 Thucsday, October 1 the week of the open house and listen to responses from communiry 5:00 - 7:00 pm 5:00 - 7:00 pm members. This will be an oppominiry for you to focus on specific issues, ask detailed questions about rarionale and express additional Vail Library Communiry Vail Library Communiry sugeestions or solutions. Room Room #5 Council Meeting - Purpose is to take into account all Tuesday, October 6 Tuesday, October ZO iniormatioo generated up to this point in the Common Ground 7;00 pm 7:00 pm process and approve speciiic development parameters Tor the site. Tliese parameters will constitute the core of the Request for Vail Town Council Chambers Vail Town Counci] Chambers Proposals which will follow. Dran RFP October 1998 October 1998 Issue RFP November 1998 November 1998 #fi Review Developer Praposals - A set of the proposals will be Nov/Dec 1998 NoviDec 1998 available for the community to review. Give us your thoughts on the ranse oFdevelopment teams who respond to the RFP. #7 Select Developec Team - The Town Council wi11 confirm a December 1998 December 1998 developmen[ [eam sclection at a regularly scheduled meeting. Plea-ce- bring yc;ur comments and coLn-municace them to the Council at the Tuesdav aftemoon worksession. #8 Development Review Process - There will be scveral January/FebruarylMarch 99 January/Eebruary/March 99 oppor[unities to participate in the Development Review Process, as the desi_ens progress through the standard order of public hearings, inctudine Planning and Environmental Commission - as needed - Design Review Board, and Town Council. ~ Complete Design for Construcuon ApriUMay 99 ApriUMay 99 Lssue building permit and begin construction June 99 June 99 Compiece conscruction April 2000 April 2000 3 i . . ' Process Givens Each of the bulleted items listed below help clarify expectations by all involved. ~ Community involvement will be proactively sought to further refine all identified action sites included in the Common Ground plan adopted June 30, 1998. Parks, community facilities, housing and open space actions will be planned with community input. + Decisions about the sites and uses have been made and will not be a part of the deliberatians in this next phase; however, the Town recognizes Common Ground as an evolving process. Each housing project will be evaluated based on the success (and/or failure) of previous projects or as circumstances and conditions in the community change. ~ Tu;, inai Fr;,duct to be generated by this phase of the Common Ground community involvement process will be a set of specific development parameters for each housing and park site. These wiil be listed in the Request for Proposals ( RFPs) the Town will use to hire development teams for each site. ~ The Town will use but not be limited to the following criteria to determine appropriate density of future housing projects: corrpatibility to the density of adjacent development, traffic and parking constramts, impacts to neighborhood services, and the ability to cost - effectively achieve the Town's housing Doals. The Town Council has committed to reducing density recommendations made in the Common Ground workshops while still making signifcant strides towards solving the housing problem ? The Town Council has the final responsibility and decision making authority for the development parameters. • Participation in this phase is open to al1 who wish to become involved ~ As a facilitator in creating seasonal housing solutions, the Town will look to the local business community as a financial resource. ? Final project design will go through the required development approval process, and be acted on by the Design Review Roard, the Plannina and Environmental 11-om-missicn (as needed) and the Town Council. 4 u ~y TOWN OF VAIL ~ Office of the Town Manager 75 South Frontage Road Yail, Colorado 81657 . . . . . 970-479-2105/Fax 970-479-2157 TM MEMORANDUM TO: Vail Town Council FROM: Robert W. McLaurin, Town Manager DATE: August 14, 1998 SUBJECT: Town Manager's Report Eagle Valley Commuter Rail Project As you may have read in the paper, there was some discussion by the Colorado Department of Transportation, Eagle County, Eagle County Transportation Authority and others to develop an Eagle Valley Commuter Rail System from the Eagle County Airport to Vail. This proposal would utilize existing track and existing technology to provide commuter rail service in the Eagle Valley. MK Centennial has submitted an unsolicited proposal to the Department of Transportation to provide engineering services for this project and to move it forward. As proposed, the project would utilize existing tracts and existing technology from the Eagle County Airport to the upper valley. The project as proposed includes two phases. The first phase would establish the system between the airport and Avon and the second phase would provide service between Avon and Vail. With the first phase existing track could be utilized. However, to push this track through Dowd Junction will require extensive environmental and engineering studies to proceed through Dowd Junction. For your information I have attached a copy of the project outline for this. I have been meeting with the engineers and will keep you posted as this issue proceeds. Proposed Debt Refinancing At the last Council meeting we discussed a proposed schedule for refinancing the Town's debt. At that time several Council members express concern about the speed at which this transaction was RECYCLEDPAPER r occurring. Upon further reflection we are proposing to slow this transaction down somewhat. The proposed schedule at this point is as follows: Date Item August 14, 1998 Distribute Documents to Town Council August 18, 1998 First Reading of the Bond Ordinance Week of August 24, 1998 Price and Market Bonds September 1, 1998 Second Reading of Bond Ordinance October 6, 1998 Bond Closing For your information and review we have included in your packet a copy of the Preliminary Official Statement and Bond Ordinance. I am available to meet with you to answer any questions you may have concerning this transaction. Assuming the ordinances passes on August 18th, we will be printing the official statement and distributing it to potential bond purchasers. Main Vail Roundabout I=rovement Several months ago we discussed constructing a free right turn that would allow traffic from the Village parking structure to access I-70 (east bound) without entering the main Vail roundabout. The estimated cost for this work is $150,000. If the Council is interested in pursuing the construction of this improvement, please let me know. This project can be funded within the existing budget structure. RWM/aw attachment ~ u ~y TOWN OF VAIL . ~ Office of the Town Manager 75 South Frontage Road Yail, Colorado 81657 . . , ,970-479-2105/Fax 970-479-2157 TM MEMORANDUM TO: Vail Town Council FROM: Robert W. McLaurin; Town Manager DATE: August 14, 1998 SUBJECT: Town Manager's Report Eagle Vallev Commuter Rail Project As you may have read in the paper, there was some discussion by the Colorado Department of Transportation, Eagle County, Eagle County Transportation Authority and others to develop an Eagle Valley Commuter Rail System from the Eagle County Airport to Vail. This proposal would utilize existing track and existing technology to provide commuter rail service in the Eagle Valley. MK Centennial has submitted an unsolicited proposal to the Department of Transportation to provide engineering services for this project and to move it forward. As proposed, the project would utilize existing tracts and existing technology from the Eagle County . Airport to the upper valley. The project as proposed includes two phases. The first phase would establish the system between the airport and Avon and the second phase would provide service _ between Avon and Vail. With the first phase existing track could be utilized. However, to push this track through Dowd Junction will require extensive environmental and engineering studies to proceed through Dowd Junction. For your information I have attached a copy of the project outline for this. I have been meeting with the engineers and will keep you posted as this issue proceeds. Proposed Debt Refinancing At the last Council meeting we discussed a proposed schedule for refinancing the Town's debt. At that time several Council members express concern about the speed at which this transaction was RECYCLED PAPER occurring. Upon further reflection we are proposing to slow this transaction down somewhat. The proposed schedule at this point is as follows: Date Item August 14, 1998 Distribute Documents to Town Council August 18, 1998 First Reading of the Bond Ordinance Week of August 24, 1998 Price and Market Bonds September 1, 1998 Second Reading of Bond Ordinance , October 6, 1998 Bond Closing For your information and review we have included in your packet a copy of the Preliminary Official Statement and Bond Ordinance. I am available to meet with you to answer any questions you may have concerning this transaction. Assuming the ordinances passes on August 18th, we will be printing the official statement and distributing it to potential bond purchasers. Main Vail Roundabout Improvement Several months ago we discussed constructing a free right turn that would allow traffic from the Village parking structure to access I-70 (east bound) without entering the main Vail roundabout. The estimated cost for this work is $150,000. If the Council is interested in pursuing the construction of this improvement, please let me know. This project can be funded within the existing budget structure. RWM/aw attachment EAGLE VALLEY COMMUTER RAIL AND TRAIL DRAFT STATUS AUGUST 5,1998 Objective of Project To create a public private initiative to present to the Colorado Department of Transportation for consideration for rail service and for a trail along the Union Pacific's Tennessee Pass Corridor as an initial component of the CDOT's long term plan of providing transit service along Interstate 70. Project Timing The work is being developed into a public private initiative proposal to present to the CDOT Commission at their October session. Project Components Four major components are being developed to meet the objective: 1. Development of parlnership among the local governments and developers 2. Development of a vision package 3. Defmition of the project and feasibility 4. Development of the proposal.to CDOT 1. Development of the Partnerslup The potentiai pm-tnership membership includes the following jurisdictions. Additional partners may be added. The intent is to generate a basic agreement amongst the partners identifying support for this project. The proposed partners include: • Eagle County • Beaver Creek • Avon • Eagle County Airport • Vail • Eagle Counry Transportation Authority • Vail Associates • CDOT 2. Vision Package A briefing package is being developed to summarize the project and show how the project fits into the overall mission of CDOT. Identified in the Vision Package will be: Purpose and Need; What the project is; Why this project works (Benefits, Partnership/Cost Sharing/Costs, Team Qualifications/Capabilities). Potendal artwork for this Vision Package includes: Map - local and state system Trail / Rail schematics Intermodal Center (Vail, Avon, Airport) Airport Park-N-Ride Fagle Valley Commuter Rail and Trail Augusx 5, 1998 . Draft Status Page 2 ot 5 3. Definition of the Project and Feasibility The transit and trail construction on the corridor could be developed in phases. The scope of this project concentrates on Phase l, with consideration in planning for future phases that can commence at any time funding levels become available. Phase 1 Construction of rail alignment - Eagle County Airport to Avon Intermodal Centers - Fagle County Airport, Avon • Stations - Eagle, Edwards Future Station - Wolcott Trail construction (paved) - Gypsum (Sage) to Dowd Junction (connect to existing) Trail construction (base only) - Dowd Junction to Leadville (primary uses include hiking and equestrian) EIS and PE of Vail Extension Phase 2 Construction of rail alignment - Avon to Vail Intermodal Center - Vail Stations - Village of Avon, Eagle-Vail, Dowd Junction Trail Construction (paved) Dowd Junction to Leadville Phase 3 Construction of rail alignment - Dowd Junction to Leadville Stations - Minturn, Red Cliff, Leadville Future Phase Gypsum to Glenwood MK Centennial has been hired by the County and Vail Associates to prepare the technical work and partnership agreeinent. The scope of the work includes developing a basic feasibility study to look at the first phase of the system described above using Diesel Multiple Unit (DML) technology on the coiridor along with a trail system. The study will provide a conceptual design and cost estimate of the system. The components of the study include a trackwork inventory, the conceptual design of the track and trail alignment, conceptual layouts of intermodal centers, stations, park and ride lots, grade crossing protection requirements, right-of-way requirements, and conceptual cost estimate. Performance criteria is being developed to determine the overall system operations. Conceptual costs is being generated for the performance criteria for operating and maintenance. Existing ridership information is being assimilated and ridership forecasts will be generated. An approach to system phasing is being developed. The product of this work will be an unsolicited public private initiative proposal to CDOT. 4. Development of the Proposal to CDOT The proposal to CDOT will be based upon the guidelines set forth by CDOT and will include all necessary information for submittal as a public private initiative. The concepts generated for the proposal include: . Eagle Valley Commuter Rail and Trail August 5, 1998 braft Status Page 3 of 5 • Purpose and Need (Opportunity) • Ridership Information Assimiladon and Forecast • Definition of Project • Preliminary Cost Estimate • Cost Sharing Proposal • Phasing Recommendations • Impact on I-70 Corridor . • CDOT Proposal Eyaluation Factors ` Proposal to CDOT (Outline) 1. Purpose and Need (and Opportunity) a. Demonstration project to tie in with DIA to Glenwood Springs transit system b. Relieve commuter congestion c. Smart growth d. Mobility/flexibility e. Safety £ EnvironmentalImpact g. Quality of life h. Reduce traffic on I-70 and SH 6 i. Connectiviry j. PPI - Public Private Initiative - to show government and private can work together - work with mission of CDOT 2. What is the project? a. DMiJ (Diesel Multiple Unit) rail system with adjacent trail - on existing railroad corridor plus extension to Vail b. Intermodal Centers - enhancements to existing corridor c. Stations d. Feeder and distribution system e. Phasing and costs - f. Phase 1 work: Track work Environmental Documentation ROW/Utilities Grade work Engineering Design Park-N-Ride O&M Costs Crossings Construction Dues Signalization Control TraiUTicketing Kiosks/Vending Machines Public Involvement Existing Conditions Report Ridership Phasing of System Capital (Vehicles, Tracks) 3. Why it works a. Benefits - elaborate on how it meets the purpose and needs in detail b. Explain what happens to CME (Colorado Mountain Express) c. Explain how eco authority (Eagle County Transit Authority) is in place to manage 4. Parlnership/Cost Sharing a. Identify players and agreements necessary b. Cost sharing breakdown with 3-D pie chart and percent of total proposed costs c. Matching projects Eagle Valley Commuter Rail and Trail Augus:5, 1998 . Draft Status Page 4 ot 5 5. CDOT Evaluation Factors a. Is ttie project innovative and unique? b. Is the project independently originated and developed by the proposer? c. Does the project include sufficient detail and information for the department to . evaluate the proposal in an objective and timely manner and to determine if the proposal benefits the department? . d. Is this an advance proposal for a lrnown department requirement that can be acquired by competitive methods? . e. Does this proposal include sufficient detail and information for the department . to evaluate the proposal in an objective and timely manner and to deternune if the proposal benefits the department? f. Does the proposal contain unique and innovative methods, approaches, or concepts? g. What are the scientific, technical, or socioeconomic merits of the proposal? h. What is the potential contribution of the proposal to the department's mission? i. What are the capabilides, related experience, facilities, or techniques of the proposer or unique combinations of these qualities that are integral factors for achieving the proposal objectives? j. Does the proposal show the qualifications, capabilities, and experience of the . proposed principal investigator, team leader, or key personnel who are critical in achieving the proposal objectives? k. What other factors are appropriate to this particular proposal? Agencies The following is a list of entities that may be associated with the project: US Geological Survey Public PUC CG Survey CHZM Hill PSCo Colorado Fish &Wildlife CDOT FHWA Qwest Other telecom UPRR US Forest Service CIFGA FAA Colorado Department of Health SHIPO EPA Rails to Trails Conservation TCI TDA Eagle Valley Metro District LSC HCE Colorado Mountain Express BLM FTA Office of Energy Conservation FHLT FRA Potential Developers GOCO KN Energy Eagle River Water & Sanitation Town of Eagle Town of Gypsum Town of Minturn . Eagle Valley Commuter Rail and Trail August 5, 1998 5raft Status Page 5 of 5 Potential Vendors/Manufacturers Siemens Adtranz Bombazdier Key People -E Lead -MK Centennial Subcontractors Wordsmith Otak MK Team Members Dick Bauman Mark Bancale Steve Pouliot Tony Marcello Craig Gaskill Nick Senn Joe Kracum Pat Zorko Robert Hertz Doug DeBerg Doug Stremel Brian McLaren e W:W DMIMKATHYG,GASKII,L\F.(3LR VRRN.WPD • { Mr. & Mrs. Thomas Jacobson, Jr y 765 Forest Road Vail, Colorado 81657 Mayor Rob Ford August 12, 1998 Town of Vail 75 South Frontage Road Vail, Colorado 81657 Dear Rob, We think you can see by the attached letter we are totally exasperated in dealing with the Community Development Department. Years ago we told the Town Council that the employes of the Town of Vail should live in the town of Vail, as is required in Denver. This situation is but another example of the insensitivity that exists, particularly in this department. It seems. that this group has no problem collecting their paychecks and contributing to their 401 k"s at our, the property owner's expense, and then they truck on down valley to their homes, where the decisions that they make here have no effect on them. They pro6ably don't even shop at the groceries in Vail, but contribute their sales tax dollars to the towns of Avon & Edwards, Quite frankly since monies from the town coffers are being used to construct employee housing, then The emplayees that work in the "customer sensitive" positions should either live in the town, or have to pay a head tax if they choose not to. It is rather ironic that a person like Tom has lived in this town 34 years, and now can not afford to live in his own home, and yet can not be eligible for an employee housing unit, which we are helping pay for We have heard horror stories of what the Community Development people put owners through in this town, and now we can see that they are true. This is not our first problem, a month and a half ago we decided if we were going to try stay here we needed to generate additional income to do this. We decided on a bed 8 breakfast, rather than go for a cooperate rental. Of all things, we got into a battle with Mr. George Ruther over parking at our house. We have more parking than any other home one Forest Road, Beaver Dam or Rockledge Road. Mr. Ruther kept "ragging" on the fact that our garage could not be constructed where it is today, which was totally irrelevarit to the situation. Also that my bumper of my car hangs over the gutter, which by the way it has doing for 25 years, by the way it was the Town of Vail that told Tom exactly where he was to put his retaining wall. In fact the gutter was cut out of our parking area, not into the road way. Even the town plower came to our defense, but by this time we said forget it. By the way we withdnew our application for the bed & breakfast on July 24th, and after two trips to the community Development department and two more phone calls they still can not get our $200 refund to us. It is ironic that these people don't get it. If we had run a bed 8 breakfast, the town would get sales tax, the folks would have to eat -lunch dinner out, most tikely in the Towrt of Vail, and would pay more sales tax, and most likely shop here. But instead on a long term rental you woutd collect no sales tax. As long as we are on our soap box we would also like to point out another disadvantage to the resident owner. The property management operations can rent houses, such as ours to a mob of people, without any supervision, and once they collect the they never pay attention to what goes on at the property. People park everywhere, (including their down valley renter buddies looking for a free place to par) they often cram more people in the unit that authorized, as was what happened to us last Christmas, and garbage piles up. Yet your town code treats the person doing bed and breakfast like they are some kind of a criminal, yet the home owner is there to keep close contact on everything. If you would like our further thoughts on this we will be happy to provide them at length at another time. The bottom line is many of these employees are driving long time residents and home owners out of Vail. Already many have left to move to Arrowhead and Cordillera. These are the people who have invested a lot of love, time and money in making Vail a success, and it was these people who got their friends to join them and give this town some cohesiveness. You want to talk empty houses, with the lights on only a few weeks out of the year, well they are on the up rise. By the way the only reason we went for the second address was we warrted to subdivide out property and live in our own "caretaker apartment" and be able to take some tax advantages, and we were advised by our accountant that we needed an entirely separate address, we will do this after we subdivide. Sincerely, Cindy 8 m Jacobson 3 Mr. & Mrs. Thomas Jacobson, Jr. ~ 765 Forest Road Vaii, Colorado 81657 Ms. Christie Barton August 12, 1998 Town of Vail Community Development Department 75 South Frantage Road Vail, Colorado 81657 Dear Ms. Barton, We are in receipt of your August 7, 1998 letter. We do not accept your department's arbitrary change of aur address. Our request for an additional address was very specific. It was for a specific number. And since it was our request, your office has gnjy two options, Option 1- grant the request or Option 2- deny the request. Since you obviously did nof grant our request for the additional number address, then we withdr.aw the request. The property will remain addressed entirely as 765 Forest Road. Quite frankly we find a designation of A & B to our address to be quite tacky. With the amount of property taxes that we and others pay in the Town of Vail, and I might add pays the salaries of the Town's employees, we deserve some courtesy. To not have even had the decency to contact us, when we have been full time residents for 34 years, is a kick in the face to the Town's purported "sense of community", and "trying to build a user friendly Community Development Department". After all, this is our property, not the Town of Vail's. This is still a democratic country, not the "Tyrannical Kingdom of Vail". The fact that you did not even have the decency to discuss the matter with us before making such an insufting change, makes this matter even more infuriating. Before we submitted our request, my husband, Tom Jacobson, consulted with the Chief of the Fire Department, and he agreed with our request for the second address of 785. Precedence has already been set in the Town of Vail, with two different numeral addresses on one lot. I can list the following properties, right off the top of my head, that possess two separate numeral addresses, so please do not try to tell me this has not been done. They are: 167 & 197 Rockledge Road 97 & 95 Rockledge Road 295 & 285 Forest Road 473 & 463 Beaver Dam Road 600 & 696 Forest Road 362 & 352 Beaver Dam Circle And how are you going to explain Mr. Gillett's former home at 45 Forest Road, that now has the second address of 25 Beaver Dam as it's other address, and another neighbor up that street that just had his house numbers changed because he thought the original address was an "unlucky" combination of numbers. Or, were we just treated as an arbitrary piece of dirt, because we are live here and work here, and are not "wealthy CEO's" or "movie stars", who will go pay an attomey big bucks to get a simple job done. What ever happened to the "govemment by the people, for the people"... rule? It is unfortunate that you will not have to spend more of our tax dollars, and time, to undo what you have done, but the mistake was yours. Regards, ~~Jacobson Cindy Hand delivered, cc/certificate of mailing cc/Mayor Rob Ford 8 Town Council members cc/Vail Trail cc/Vail Daily r~ Mr. & Mrs. Thomas Jacobson, Jr 765 Forest Road Vail, Colorado 81657 Phone 970-476-5957 FAX 970-476-6406 ATTENTION Eagle County Ambulance District Eagle County Assessors Office Eagle River Water & Sanitafion District . Hol.y Cross Eledtric, Engineering Dept Public Service Company Public Service High Pressure Gas TCI Cablevision Town of Vail Fire Department, Mike McGee Town of Vail Police Department, Miranda Steber US. Postal Service US West, Carson Bell Johnson Kunkel & Associates, Andrew Dewell E911 Coordinator From: the owners of the above mentioned property August 13, 1998 The Community Development Department has made an unauthorized assignment of address on our property, DO NOT make any changes to your records. We are proceeding to correct their unauthorized assignment of A& B to our address. Sincerely, / Cindy & Tom Jacobson . cc/CFJ I RUG-12-1998 09:38 UAIL RECRERTION DISTRICT P.01 MINLJTBS REGULAR MEETNG VATL PARTC AND P?ECREATION DISTRICT d/b/a VATL RECREAT[ON DISTRICT BOARD OF DIRECTORS 9:00 A.M. Tuesday, 7uly 14, 1998 Krueger Roorr~ Golf Clubhouse, Seasons at the Green Restaurant 177$ Vai Valtey Drive Calted to 4rder at 9-05 am. ItM1+!$ERS • PRESENT Rnss Davis, Bart Cuorno, Steve Simonett, Chris Moffet, and Nanc,y Stevern_ M~4IBERS ABSENf None. OTBERS PRESENT Piet Pieters, Bob Traut7, John Self with Norwest F~inancG Aan Cudahy and Jerry McMahan with McMahan & Associates, Sharan Ceankoplis, M~ke Orti7, 3'~m Sanders, Jim Heber, Susanne ChardouL Susan Hodder, Drcw Ekstrom, Emie Bender, Tam Craylord, TCevin Foley, anci Bill Wright_ APPxovaL oF MAY 127 AND ]UNE 23RD MEETIlJCrS Steve motioned to approve the mirnrtes from May 12~ and June 23d mee.tings. Nancy seconded. Passed unanimausly. PUBLIC INPUT ON ITEMS NOT QN AGrENDA None. 1997 AUDIT RESLJLTS 7eny McMahan and Dan Cudahy wmt over the audit results. Jeny and Bob discussed the IRS change in fnc asset palicy acd suggested the Board adopt a set policy at the next regulsr meeting Steve made a motion to accept the audit results. Bart secanded. Passed unanimoeuly. DQBSON FINANCING John Self with Norvvest Finance presented severai options available to the District_ Yt was detennined there is time to decide which option to use_ DOWN VALI.EY PARTiCIPATION All discussad the pros and cons of fee increa9es and the nced to educate the vacious down-valley recreation boards and their members_ Chris feels we should approach the board of directors for the Eagle-Vail, Avon, and AUG-12-1998 09:38 VAIL RECREATIDN DISTRICT P.02 Edwards areas before fees are increa.sed. Ross wants a proposed schedule of increa.5es available when we talk to the oiher boards. Mike suggeled to have handouts availablc to the people who sign up for the soccer program scheduled ta start late August explaining proposed fee incrcases should various down-valiey recreation boards decide not to participate as a contributing VRD ecrtity, ~ FINANCIAL UPDATE Bob covered the variance analysis through June_ He said reveaue in all departments shows an increase over last year. The District is on coucse for , another great year. . ADA GOLF CART _ REQUIRF1VENrS After reviewing the attorney's letter, staff decided ta purr.hase one cart wftich should be delivered neact week DEPARIWM"N'T - UPDATES The supervisors from al) departments updated the Directors on various pro$rams- H'ightights include the record-brealang weekend the golf course had. Course training For caddies is moving along wiih testing being done on the 22nd. Their dress code will be white T's and caddie Ixbs. Steve would like the beverage cart personnel trained again. Dabson special event/concert schedule was presented for the Board's review. The shirts for the half nardthon tp Piney Lake are being redesigned in Z,.yndon Ellyson' s honor, and ' the HiilClimb will be named after him. There was an azticle in Audubon Magazine on the Vaii Golf caurse_ Ernie let the Directors Irnow the mowers will take the 6:05p.m. and 6:15p_m tee times to get into position for nisht mowing. The tee times after that will be open for players_ BOA12D MEND3ER TNPITT Chris participated in the E21Climb and had some comments,like getting more . in the goodie bag, using a megaphone, and VA not letting pcople ride the gondola to watch the finish for frec. She also wanted to {rnow the status of the gymnastics building and perhaps getting a facility on top of the proposed Dobson locker room expansion. ADTOURNMENT The next meeting is a work session with the TOV, in the TOV chambers, 7uly 28'' at 2.00 p_m_ Steve mationed to adjourn. Chris seconded Passed unanimously_ Meeting adjourned at 1154 a.m. I~Iaac,y S.tevens,..S Rhnnda N.1, n Adlniri ASSistarik ' .;.:i... ; : :.:c. . Post-it' Fax Note 7671 ~ ~ ot p . . . . . ~[S. ' : . r:q. ~ '•k_'.:r'`-.;~~~ ~7 .~1Z~f\ . - ~ C ~..~p wl~,, 'j~' _ •'t.:: - . j~ '1_. 'i~ . •1~{ ~ . . yl`''r' PIIWIC! . . - -rt."3 Phone ? . . rr ':f`~'i«';'' _:la^;~`' -'"vf` ' ' . • ' . ' . r... . r~: :,•:~::t.#.,: ; aaN ' - ' ci _ - F3xf ' • ' . . , . . , p. _ . . , _ _ . . . . . . . : ~ f:'. ' . - . :.-....:.1: n.':._- : . - . . , ' . TOTAL P.02 ~ e 7/20/98 Town of Vail Transportation Department Attn: Transportation Manager We the undersigned wish to express our discontent with the present West Vail Bus schedule, I which has the bus travelling on a regular basis up the west end of Chamonix Lane. As residents of this area of Chamonix Lane, we feel that this bus travel pattern is inappropriate for the following reasons: 1. It is noisy. The way that our townhomes are situated directly adj acent to Chamonix Lane makes it impossible to escape the engine noise of the bus as it travels up the hill. 2. It is dangerous. Chamonix Lane is not wide enough to support a large bus travelling by. The curvy as well as hilly nature of this road makes it an ill-logical route for the bus. The bus can not even maneuver around the corner onto Chamonix Lane without going into the lane of oncoming traffic. If any other vehicles (especially large trucks, etc.) happen to also be travelling on this road, there is no room for pedestrians or even for cars that happen to be parked close to the road (as the Chamonix Chalets parking lots are arranged). 3. It is unnecessary. The Chamonix (Frontage Road) bus stop is a sufficient stop for this area. If the residents who live on Arosa, Davos Trail, etc. want to have a closer bus stop for their area, then why doesn't the bus stop at the Chamonix-Frontage Road stop and then continue on up the Frontage Road and around Arosa? Otherwise, perhaps the bus can make a stop at ihe Y intersection where f.hamonix Lane and Chamonix Road meet. It is perturbing that schedule changes such as this one can take place simply on the recommendations of a few people, without considering the impact that it would have on the residents down the road. We ask that you seriously consider this matter and take appropriate action to rectify the situation. Sincerely, The Citizens of West Chamonix Lane Signature Name and Address Date 1. o rd,t. Y- 2.~ . ~t2 C~?~'I3 1JW 3. , ~ . , JI( :::r.J ~ 7 Zc~ • C1~ S n_ ) . I it { ~ - 6. ZNcxtrA r-,r:.v 2 g 9. (/l zc1s~v !C I f~~~ l/•_v ` J CYAIUO~Uii ~ -7 u ~y TOWN OF VAIL 75 South Frontage Road Office of the Mayor Yail, Colorado 81657 303-479-2100 FAX 303-479-2157 August 13, 1998 Mr. Ross Davis, Jr. Chairman Vai1 Recreation District Board of Directors 700 S. Frontage Road E. Vail, CO 81657 Dear Ross: I did want to take the opportunity to expand a bit on our discussion the other morning regarding the managed parking at Ford Park. It became apparent to the Town Council many years ago that the usage demands at Ford Park were far exceeding the parks infrastructure. The Town Council initiated a Master Plan update for the park in order to address this problem. During this Master Plan process the town staff highlighted the shortage of parking available for the present uses of the park. The various user groups, the VRD being one, and the public were made award of staff s position and the results of several studies done at the Town's expense which highlighted the need for more parking at Ford Park. The public and user groups indicated that additional parking at Ford Park was unacceptable. Ross, you personally were adamant that no more parking be provided. The Town Council listened to our constituents and the Master Plan was approved with no additional parking. However, it was apparent that without some additional parking provided some form of manage parking would be required. Your indication this morning that the Council was totally responsible for the problems of the managed parking in the park indicated that managed parking would be instituted. The VRD was also intimately involved, even more than the Council, in the details of the implementation of the managed parking. That our managed parking program has not been perfect upon the first year of ~ executions does not surprise me. I hope we can improve on it for next year. However, if you as the Chairperson of the VRD continue to shirk your responsibility for both supporting the plan and helping the Town improve upon the paln we are not going to make much headway. Cordially, ZOF VAIL rd Mayor REF/aw xc: VRD, Board of Directors Vail Town Council Mr. & Mrs. Thomas Jacobson, Jr = 765 Forest Road Vail, Colorado 81657 Mayor Rob Ford August 12, 1998 Town of Vail 75 South Frontage Road Vail, Colorado 81657 Dear Rob, We think you can see by the attached letter we are totally exasperated in dealing with the Community Development Department. Years ago we told the Town Council that the employes of the Town of Vail should live in the town of Vail, as is required in Denver. This situation is but another example of the insensitivity that exists, particularly in this department. It seems. that this group has no problem collecting their paychecks and coMributing to their 401k"s at our, the property ownePs expense, and then they truck on down valley to their homes, where the decisions that they make here have no effect on them. They probably don't even shop at the groceries in Vail, but contribute their sales tax dollars to the towns of Avon & Edwards, Quite frankly since monies from the town coffers are being used to construct employee housing, then The employees that work in the "customer sensitive" positions should either live in the town, or have to pay a head tax if they choose not to. It is rather ironic that a person like Tom has lived in this town 34 years, and now can not afford to live in his own home, and yet can not be eligible for an employee housing unit, which we are helping pay for We have heard horror stories of what the Community Development people put owners through in this town, and now we can see that they are true. This is not our first problem, a month and a half ago we decided if we were going to try stay here we needed to generate additional income to do this. We decided on a bed 8 breakfast, rather than go for a cooperate rental. Of all things, we got into a battle with Mr. George Ruther over parking at our house. We have more parking than any other home one Forest Road, Beaver Dam or Rockledge Road. Mr. Ruther kept "ragging" on the fact that our garage could not be construeted where it is today, which was totally irrelevant to the situation. Aiso that my bumper of my car hangs over the gutter, which by the way it has doing for 25 years, by the way it was the Town of Vail that told Tom exactly where he was to put his retaining wall. In fact the gutter was cut out of our parking area, not into the road way. Even the town plower came to our defense, but by this time we said forget it. By the way we withdrew our application for the bed & breakfast on July 24th, and after two trips to the community Development department and two more phone calls they stili can not get our $200 refund to us. It is ironic that these people don't get it. If we had run a bed & breakfast, the town would get sales tax, the folks would have-to eat-lunch dinner out, most likely in the Town of Vail, and would pay more sales tax, and most likely shop here. But instead on a long term rental you would collect no sales tax. As long as we are on our soap box we would also like to point out another disadvantage to the resident owner. The property management operations can rent houses, such as ours to a mob of people, without any supervision, and once they collect the they never pay attention to what goes on at the property. People park everywhere, (including their down valtey renter buddies looking for a free place to par) they often cram more people in the unit that authorized, as was what happened to us last Christmas, and garbage piles up. Yet your town code treats the person doing bed and breakfast like they are some kind of a criminal, yet the home owner is there to keep close contact on everything. If you would like our further thoughts on this we will be happy to provide them at length at another time. The bottom line is many of these employees are driving long time residents and home owners out of Vail. Already many have left to move to Arrowhead and Cordillera. These are the people who have invested a lot of love, time and money in making Vail a success, and it was these people who got their friends to join them and give this town some cohesiveness. You want to talk empty houses, with the lights on only a few weeks out of the year, well they are on the up rise. By the way the only reason we went for the second address was we wanted to subdivide out property and (ive in our own "caretaker apartment" and be able to take some tax advantages, and we were advised by our accountant that we needed an entirely separate address, we will do this after we subdivide. Sincerely, Cindy & ~6m Jacobson ~ Mr. & Mrs. Thomas Jacobson, Jr. ~ 765 Forest Road Vail, Colorado 81657 Ms. Christie Barton August 12, 1998 Town of Vail Community Development Department 75 South Frontage Road Vail, Colorado 81657 Dear Ms. Barton, We are in receipt of your August 7, 1998 letter. We do not accept your departmenYs arbitrary change of our address. Our request for an additional address was very specific. It was for a specific number. And.since it was our request, your office has Qnly two options, Option 1- grant the request or Option 2- deny the request. Since you obviously did not grant our request for the additional number address, then we withdraw the request. The property will remain addressed entirely as 765 Forest Road. Quite frankly we find a designation of A & B to our address to be quite tacky. With the amount of property taxes that we and others pay in the Town of Vail, and I might add pays the salaries of the Town's employees, we deserve some courtesy. To not have even had the decency to contact us, when we have been full time residents for 34 years, is a kick in the face to the Town's purported "sense of community", and "trying to build a user friendly Community Development Department". After all, this is our property, not the Town of Vail's. This is still a democratic country, not the "Tyrannical Kingdom of Vail". The faet that you did not even have the decency to discuss the matter with us before making such an insulting change, makes this matter even more infuriating. Before we submitted our request, my husband, Tom Jacobson, consulted with the Chief of the Fire Department, and he agreed with our request for the second address of 785. Precedence has already been set in the Town of Vail, with finro different numeral addresses on one lot. I can list the following properties, right off the top of my head, that possess two separate numeral addresses, so please do not try to tell me this has not been done. They are: 167 & 197 Rockledge Road 97 & 95 Rockledge Road 295 & 285 Forest Road 473 & 463 Beaver Dam Road 600 & 696 Forest Road 362 & 352 Beaver Dam Circle And how are you going to explain Mr. Gillett's former home at 45 Forest Road, that now has the second address of 25 Beaver Dam as it's other address, and another neighbor up that street that just had his house numbers changed because he thought the original address was an "unlucky" combination of numbers. Or, were we just treated as an arbitrary piece of dirt, because we are live here and work here, and are not "wealthy CEO's" or "movie stars", who will go pay an attomey big bucks to get a simple job done. What ever happened to the "govemment by the people, for the people"... rule? It is unfortunate that you will not have to spend more of our tax dollars, and time, to undo what you have done, but the mistake was yours. Regards, / p Cindy & Torri Jacobson Hand delivered, cGcertificate of mailing cc/Mayor Rob Ford & Town Council members cc/Vail Trail ccNail Daily y ~ Mr. & Mrs. Thomas Jacobson, Jr . 765 Forest Road Vail, Colorado 81657 Phone 970-476-5957 FAX 970-476-6406 ATTENTION Eagle County Ambulance District Eagie County Assessors Office , Eagle River Water & Sanitation District . Holy Cross Eledtric, Engineering Dept Public Service Company Public Service High Pressure Gas TCI Cablevision Town of Vail Fire Department, Mike McGee Town of Vail Police Department, Miranda Steber US. Postal Service US West, Carson Bell Johnson Kunkel & Associates, Andrew Dewoell E911 Coordinator From: the owners of the above mentioned property August 13, 1998 The Community Development Department has made an unauthorized assignment of address on our property, DO NOT make any changes to your records. We are proceeding to correct their unauthorized assignment of A& B to our address. Sincerely, ~ / / f Cindy & Tom Jacobson . cGCFJ qg, -tx; avc v6 lae rK.-e-~ d V ~ ytA- .~e t,,,-i.,Q,t ~.e W-Ll~ c"?ti c~- ~tv.a.~ . ~ w~W 4t..e- yo-w lje.l A~- ~~~~~t~-9~ i ~ I . iIBr 11~ W ~ SKi RESO?RT STIRLING NEW EMPLtJYMENT SEE PAGE 5 YOUR FREE MOUNTAIN NEWSPAPER - PUBLISHED WEEKLY DURING THE SKI SEASON -.1ULY 29, WIIVTER 1998 ~ O ~ r l A rave of a ~ . R Snow ~ ~ . s"RUNG NEws ~y ~ ~ ti m e at big ; r . su rvival ~ MANAGING EDITOR: d 1'1~~~ ~ Gill Cooper • ~ ~ party ~ JOURNALIST: sk' I Is .-.~THE snowfields at Mt Buller r Louise Rudzki will become more than a winter ` AROUND 55 university playground for snowboarders ~ ADVERTISING SALES: students visited Mt Stirling and skiers when the mountain p Karen Pirie last week to im rove their P resort hosts the rave party of the PRODUCTION: cross country skiing and to year. r Co-ordinator: Paul Dunlop test their snow survival skills. "Snomax" presented by Hard- ~ Emma McPherson, Around 40 first-year stu- ware Records and Hardware Spe- Eddie Steedman, David Joss, dents and 15 third-year stu- cial Effects, will be held at La R Ross Walker. dents at La Trobe University Trobe University's Great Hall F in Bendigo travelled to Mt on August 1- this Saturday G PUBLISHED BY: Stirling as part of their out- ` night. Brian Hartley Higgins for Mans- door education course. The rave will feature visual ~ field Newspapers Pty Ltd (ACN The eroun camved in the ..,A nT. .,I-;.,e ~ ~ Collins finds great place to be Australia a k bY LOUISE RUDZKI "The exchange program has since she can remember, Colli'hs AFTER a cold winter in meant I can experience another recently started competing seri- ' America, a 17-year-old Vail stu- ski resort and take the summer ously in cross country events. ' dent recently headed to Australia holidays to come and try some- Earlier this year, the talented to spend another winter on the thing new and live with another youngster competed in her home family, Collins said. state competitions and qualified snowfields. "So far it's been really fun. for the Junior Olympics in Idaho ~ As part of an exchange pro- I'm having a blast," she said. in March where she competed r gram between Mt Buller and Her temporary home with Phil against 75 girls in her age group. Vail, Colorado, Collins Canada and Sally Taylor in Goughs Bay At home, Collins practices arrived in Australia to spend her has meant that Collins has been every night and the entire school American summer in a colder close to Mt Stirling and Mt takes every Friday afternoon off x climate. Buller, where she has been work- to go downhill skiing. Collins was chosen out of 200 ing since her arrival in June. Collins returns home August ~ children from the Vail Mountain For the last few weeks, Collins 22 to her final year of school, ~ School to spend two months on has been shadowing ski instruc- but at this stage she is not miss- the Australian snowfields as part tors at Mt Buller, working in the ing home, communicating with ~ of the Vail Valley Youth Award. ski hire at Mt Stirling and gener- her parents regularly through e- r She follows in the footsteps of ally helping out. mail. a number of young people from "It's been a great experience "I am grateful for the oppor- , both countries who have recently because I do not have any train- tunity to work and play in this ' spent time overseas and is greatly ing to instruct people," she said. beautiful area and so far I have ~ DOWN UNDER: Collins Canada is having a fun time in Austialia, enjoying the experience. Skiing recreationally ever had a wonderful time," she said. SAFETY FEARS: Gary Phillips and other Mt Bu/ler Bus Lines drivers are concerned about boarders campaign are: expected to set standards of ~ and skiers being on village roads. They are calling for visitors to use greaier care. 98sx2907/03n • The reduction of Phospho- operation for similar environ- ~ , rus in treated wastewater dis- ments. Crash cal I s for care charged from the resort. "We believe that the soils, , prompts • The conservation and flora and fauna communities of . maintenance of stream water Mt Buller and the life proc- , MOUNTAIN bus drivers According to Mt Buller Bus not to ski on the roads." for long term supplies, par- esses which maintain and unite ~ - are concerned that skiers and Lines manager, Ken Pollock, Mr Pollock said the young ticularly tic and in snow- relation making. to domes- ent these on the communities attitude," are he said. depend boarders are endangering the boarder hit the bus from the man was snowboarding across ~ The reduction of amounts "It is important to develop themselves and others. right hand side. The Avenue between the YHA of grease finding its way into an attitude of `personal respon- A snowboarder was re- "Our concern is that our and the garbage shed when the the sewerage treatment plant. sibility' for the environment, cently injured in a road acci- vehicles cannot stop in a hurry accident occurred. • The recycling of all alu- one where it is acknowledged dent a.t the Mt Buller resort. in dangerous conditions. Panel damage to the taxi is minium cans, glass and card- that our individual activities The young man sustained "Skiers and boarders have to estimated to be around $500. board can and do make a make a a broken leg and concussion start showing more common- The matter was reported to o pn education program on difference, and that a positive, when he hit the side of a four- sense," Mr Pollock said. police, who travelled from the importance of proper and demonstrable change in the wheel-drive taxi on Sunday, "We don't drive on the ski Mansfield to attend the inci- effective litter disposal physical environment can be July 12. runs and we expect skiers dent. A brochure on the Mountain effected," Mr Jeffcoat said. 7174 pste ~ ~ ~ ~ ~ ~ ~ ()11 ? 7-~ ~ - / . ~ . ; . p.. . ~ ~ - ~_._r ~ ~ \ , ~ ; ; ;y • , ~ - ~ Ilflllulu~l~~um~d~u r f-L„ ~J = , ' NIII1Nlll~1!ll~ ~ Independently owned since 1867 TELEPHONE: (03) Price. 70 0 Wednesday, .~llly 22,1998 5775 2115 Fax No. (03) 57751580 ~ r i PAGE 2- MANSFIELD COURIER - Wednesday, July 22, 1998 Race organi s er s prefer "bu s h" A1A1•SFIELD %0 HISTORICAL SGCIETY MANSFIELD NEV1/SPAPERS RE: Mansfield Courier 15/7/98 Let us, as the community give News from the past board targets new race venue article. it all the support we can to ensure 96 High St, Mansfield 3722 Local history compiled from the Having read this article, I note that it remains unique, the biggest P.O. Box 290, Mansfeld 3724. Mansfie/dCouneiby Alex Matthews . Princ Posc approved with particular interest to me was and the best of its kind focusing PP 346626/00007 this "spokesperson Cr Phil McCann national attention on Mansfield Telephone: 03 5775 21 15 said board members were unani- for the best reasons. JULY 23, 1898 Facsimile: 03 5775 1580 mous in their decision to depart Neil Phipps, RAILWAY Manifest. Parcels Published by Brian Harcley Higgins for from the GMR (Great Mountain tQ/ t~f,Q/ Chairperson, Mansfield , for the following persons await de- Mansfieid Newspapers Pcy Lcd Race) of Victoria format at Moun- Mountain Country Festival. livery at the local railway station: (ACN 006 630 342) ac che tain Bay". Strong, Richardson, Sheehan, regiscered office, 96 High Street, I, as chairperson of the current Search for historp Harford, Smithers, Wilson, Kelson Mansfeld, 3722. Printed web offset J (2), Elvins, Smith, Jago; Fraser, by North East Newspapers Pq Ltd, Mansfield Mountain Country Fes- I AM researching the descend- Allen, Cleeland (2), Davies, Thom, 37 Rowan Sc, Wangaratta, 3677. ~val Ina (and then member of the ants of my maternal great grand- Responsibility for election comment is Bond, Donaldson, Graves, Ross, board), must have been absent mother Agnes Ann Swain, the A1 G.M.C., Page, Kennedy, accepsed by G. M. Cooper when that vote was taken. Admit- Coilins, Moran, Matthews, Fraser, of 96 High Sc, Mansfield, 3722. tedly, I was delayed at a special daughter of John Currens and Malone and Calin. meeting of the MMCF until7.lOpm Mary Ann Watt. She was born in MANAGING EDITOR: that night, where we discussed and "en masse". Having regard to these 1832/33 at Co. Down Ireland and JULY 23, 1948 Gill Cooper moved a motion (although not developments, I believe the reason ~'ived in Victoria about 1839. STOCKOWNERS aze reminded ADMINISTRATION: unanimous) on what we wanted for me being appointed to the board ~ In 1848 she married George of the important meeting on Friday , ~ ~ .L ..e.., In.w T..i.. a:..,....... .we ..i.,., ~ ~ PAGE 8- MANSFIELD COURIER - Wednesday, July 22, 1998 eXchan e ser~Clin Vafl ar ~u. , g MANSFIELD peo- the Delatite Shire and and we have many ple keen to join the Vail, Colorado and workers who will ben- Vail exchange have how this enables locals efit from the experi- been urged to attend to get jobs at the ence of working in a an information session American mountain re- world class resort over- . • ' ..r'k ':.next week. sort. seas. z for Delatite Shire "Advice on how to "The opportunity residents to participate prepare work histories, for residents of Dela- in a seasonal wark-ex- the type of work avail- tite Shire to work in change program in able and work benefits Vail, Colorado for sea- Vail, Colorado will be will also be given," she sonal work, both sum- the topic of an said. mer and winter, was upcoming information Applications will one of the important session held next week. need to be submitted to benefits of the ex- Information ses- the Exchange to be sent change identified by sions on how to get a to Vail far appraisal by the recent delegation to work exchange in the August 7, 1998. A del- Vail," Cr Hill said. world renawned moun- egation from Vai1 will The information ~ tain resort will be held be visiting Delatite sessions will be held .v~~ ' in Benalla and Mans- Shire in mid-August on Monday, July 27 at field for two nights and will conduct inter- 6pm at Goulburn Ov- next week. views locally. ens Institute of TAFE " ~ According to coor- Mayor, Bill Hill said in Benalla and in ~ `dinator Carol Smith, the exchange provided Mansfield at the Dela- ` the sessions will pro- a win-win situation for tite Service Centre, n`y ~ vide practical informa- all involved. Highett St, on tion about the sister "Vail has an under- Wednesday July 29 at HAPPY FAMILY: Delatite Shlre mayor wlih Vall girl Collins Canada and her Mansfield hosts Phil and city agreement between employment problem 6pm. Sally`Taylor. Collins is in Australia for six months as part of the De/atita.Vail exchange. 982207/08n , - MANSFIELD COURIER - WEDNESDAY, JULY 22,1988 - PAGE 7 ~ Pre-school protest wins swift re rleve . . ~ ~ ~ IN a win for a local pre-school tionnaire on the relevant act and . committee, representatives from the regulations. committee will now not have to According to Mansfield Pre- ; travel to Benalla for the assessment school treasurer Geoff Riley the prescribed under the new children's concern of the obligations under services act and regulations. the act was not the checks but the a ~ • a ~ 3 t N y~~~` - , Mansfield Pre-school s commit- cost of travelling to Benalla for the tee of management refused to attend day. the interviews scheduled for Mon- "It would mean total disruption day because of the added strain that to the pre-school," Mr Riley said. would be incurred on the pre-school "We would have to pay a stand- purse-strings. in teacher and then incur further Member for Benalla Pat McNa- expenses involved on top of the mara yesterday said the Human already slashed budget,'~. Mr Riley Services Department had agreed that said. representatiWes from the pre-school In his capacity as local member 3 would not have to travel to Benalla of parliament Mr McNamaza re- as part of the process. ceived a complaint from Mr Riley Under the requirements recently and took the issue up with the implemented under the children's minister for youth and community ,j Me/bourne Outboard Club members Kevin and Jan Mongan at Kennedy Point, near Bonnie Doon. Services Act 1996 and Children's services, Denis Napthine. Services Regulations 1998, four peo- Mr Napthine subsequently advised` useboat land battle Ple within a children's service are that the case would be invesdgated required to be assessed as "fit and with input from the regional office ot proper" in order to operate and his department, resulting in the ex- work within a, children's service. em.otion. ~ TUNE 1998 4ILL VAIL BUSINES S Tou~v REVIEW August 13, 1998 The June Vail Business Review examines June sales tax collections- and year to date collections through June 1998. . - , . , Overal l June sales tax increased .1 % with Retail decreasing 1.8%, Lodging decreased 8.9%, Food and Beverage increased 5.5% and Other (which includes items such as utilities; taxable services i.e. plumbing and electrical and rentals or leases) increased 10.1%. Year to date collections through June resulted in a 2.1 % increase overall with Retail increasing 3.5%, Lodging decreased .8%, Food and Beverage increased 2.5% and Other increased 7.9%. June Events Included 1997 1998 VBS Summer Bike Race Series The Mountain Challenge Budweiser Hot Summer Nights Hot Summer Nights King of the Mountain Volleyball King of the Mountain Volleyball Bravo! Colorado Bravo! Colorado Family Fest/Chili Cookoff Vail Chili Cookoff Fila Skyrunners Verticle Kilometer Please remember when reading the Vai1 Business Review that it is produced from sales tax collections, as opposed to actual gross sales. If you have any questions or comments please feel free to call me at (970) 479-2125 or Steve Thompson at (970) 479-2116. - Sincerely, Sally Lorton Sales Tax Administrator JUNE SALES TAX ~ VA/L VILLAGE JUNE JUNE JUNE 1997 1998 % Collections Coliections Chan e ~i%:~;z, s °',F,, 4?q ~tiz:..°.:i~».'`i. s ~1. _ ~,ra~e.w ,zvy lv'u. b ' Sv?. .a na:°Aa S x:a .g. 'o< ° 4 rM1 +^ti~4Y ~ l`l 04: ~cC~t ~ ~a wa;y;:;;;.%w _•4 'kCq a~h4b .e ~ae •:.4 1. •x~~..•o4en ;S!S'ti' - YL~3~ *.'ys,A e~ +'A^:i~- : .++A S. ~..b> ~'t Y .+~.t ,V~e~:id:.i::e'•.:'ti,L.ay,s..,. t.aa .~'iew~•~'..~~'~=.x'i'.:4.. ' e",4::' ~ . ~ :.4,.:;.. ; " l. Y 3 g, Retai i ¦ ~.~,:a:., , ~ _s..:: ,~_.o::~>'. . . S ~ ' ,.'a•vj:...; f.. geS g . ...:.r.. . . . . . , . . . . . _..:nn~... . . . . . . : .:...n.;. ~ , c. - a ..v.la\~~~ ; `q'qis >x a,. b• i~ ~ti`'"t~tia'• R t e,, ~ ,.a~y.. > ~i.. 4,2'• 4.'.£%..?¢e k~.?..,..n,;,.,, Y ,:,•'Y'l°D~ '+b`e ~S ~ . R y 0. s`S 4~M1 Lod9in 9 r L' . ~4 y,•• ~ gn.e ~e 4 . J y.~ SM1o-.} et 'o~ o"le °°F:n. h e z +.~'ieney ~.4.. y. a~ g ~p..,z. ~%.'e:%ev.:;~4tyn< e+abe'r >igw~ $ M1:` 4n4 ~ ,.~:yy "'`;atisa 2s ~ 5.,. ~c'e`~."~4 `"rt.~n i~ytivc,i ti;,:;y~•, ~yw. g.,. iy~?.c~. x,~+,.~ .¢~.x> ~ y.~ .b ~ ...g,•n:?iti,~,°°F1v<a5°`:~n4;;~:-,~nn4t~''nt4=.'tti ~5^'~:-;.,...';:..s;?~,..:~.,'sa'~';..,.a'r:''....~.,,,~}>,4g,'~~~.~°,°~.4.'ti -.v~~. ,:::.M.,::..i;ti;M°,'K:,~..,,,o~„ .,.,4~,kc„~. ...~,•,-,u:.. ;,~..v.. ~~zn, FOO e,~;; •..~:,a~,.~::Si'de~e;;.~,~±, .x.S'ttimv~;;.~».0., e.i+, .°°`aa`b, °,c~ ~ d & ~ > Ak ~ 5 'x4 < w a >'atian~n~n ~ 4 °'a°s. _v..s.. ..~ress4,;•~ Wc.~ ...'.h. qme tish~i%i?+ ~i t:' 4~e~L. • ?t ~ be+..- 1 h•,:.,., Be ver a9e ~ . ~ n~ r ~ `titt`o ^l 3 ~ . ,..s s•x,.>~ ti D. kg,• ~ k 1 44i . %4i°~\ .c~s•'' ce'u:~t ..ag x^L. ,..4,s. ~ ;w,,w•y.,, ~ ~ A ro~ h>k.. ...,__..;,.:..s:~. 2.`4 . . : :4'ti' .j 4G•'. ~ s; V ~1i= Other . Aa .~.>..a~.i%4s.v"v ,qj:, i ..i~.. ,i.a. . A?.... l Sas . ik:>N:....,.q.n. L bs-x. ia.y?"ryb?'_'i4~i:i::vti%+ti 4,. `~e...<;. n.i-:::a':;.. n . ' . . _ . .....:ivx=- ; ,,q.°".:'.~`t:. . . . . . . ",.+z~:.~,.• S~. >va.` c4~4 . . >aY . . . . , ~ _ . ,w ~ _ . . . . - . ~ a .,~:`:'t'i~. :T.w .~~:s , ~ . +v'7a d y.~ ~~~~y ;YyW9„ ao S" ''4i0.no~•• '~1'va'iY~.r c n: ~ Tt, `b. ~,'sti`>` .c..,, 3'w.... ,5',,.»._. r^'i:lh ~ f=. . > h tiAL~4~'a+;r.b^ti'ee , ^ ...,?...'.~?`i°•'-;;i':':%9: i~<"x... b~. ~ M1 4 ; j r :.:..,5. 5;;:.. . . . . . .a.v., . : .?.zs`?c::4`. ,'i . ~ . Total - - . ;,~:4;, ,bb .~~t`~+~ - . _ _ . . . . , . . . . . . . . , , . . . . , m-., ,..,:a;:~,?3 ,`e,•;;,. : . . : . , . . . . . . , . . . L/ONSHEAD JUNE JUNE JUNE 1997 1998 % Collections Collections Chan e ~ v . .~:4.. . r~... . . ~ ~.~....;.o.~ . :4: 5•*'-+; ?:kvc°;i';.`' ,?~`;,i,~~~ppp~~~ .z~ i:~;f` .k:'~?`.~ ,14''. x4 i o.•~. n ~ 4 c ~ . . `.S e „M1~..,... ~ 4,~y R ~ Re =w;..4. tail •~~*..y'`•'a¢t _ . ~ r.. ~ , . :`>,:;4 . . : : a w,,. . . ; . : . . ._,..:<t::..:..:,.: . ~...w.. ~ , . . . . , . x. . . .a.,; ^„-a; R.+ . , . . . . . . . ~ h : °•;b,v . . . . . ~ . ..~o,..,...+.:~.e~,.n~~ , ,,,a1: .n . : „ ,.a. . , . , „ , . v'.'•.~:5°;; i?bwt iete'$`r''•~ 4Y L o ~ . d 9 9 N:ba? e:,.~~° 4:,•: .y e e•,`x„ 4 v'~"'z( 1, . <.ik..?.x~... lr . n4ti'x 4:A•+n: . : , ' n.~.,.: . :':.•~•~•a; %a.• ; . 1.;}_ .qa,~<.,~:.~ : . . ..r.. . . . . . . nv*~'- ~~;5£::~;.;::~~ 5,•:~:"::::`;a.;~`.~gct-.' ,M,.. 'k<,a.,•c~,r_`;::-:,':. _ Fo0 d & ~c> 2e y , . b .;t+~~.,: . ~ k. 4 E ~S , z4r :;~~+:..an ..i.a..•;.~. •i~ a V~~i * *;N;S~~~~ ;,.:r*.;tc;.,:;;.~Y^.i. ..:A 10. . .;:%`,:4,. ?y;S.vl..; 'y`2:~:4S;.S:.`Sti:' `y~• B V :4,:_.,,.• > e era e - : "q3 y. ~ 9 , xr... .,«,..,.,..t,...v~. .~a..~.... ,:xa: ...u~ ...i?'.c „ .l~hA . . . Ac'S' ` ~l i., , ''r.yai• ><4.. a1s •a;", ~ a~4t4w 4 A ~4°la '~oa . `•s 1. `J~ke.o e4 s . ~~ke 2+c'eeia t `¢>i4•..':, +%.~Sem,e.:~~v. o ~eko:.i '4[a°y,.. ?_..°.%e'oe^ .~i'~.iox 24. L? ~4h , ?.'d~?'.a~'•. x~ b'"t!x x , , > .:ry... i Oth - er . . _ . ~ . _ ,.u :3:. =t,i ~ . . . . . ~ . ~ ~>t~-,>:~~;.,~. ~ ,.h., ~ iti%yn' k k 4 't ~:~,q:,.:;:.,~::s, i,q«r~1,•°~aa,., ySo*0.;,, k4 x~i7 ~SS..,.,.. ~ Cti: ~g ,i.~,%.~;;e;::",, ~~aG4?t;y,:y;r,~,•,e:<,Kt,f~,~ M"- `~.:.1:::.:w"t';'•`.::'•4„^ nD~Y ~ n ~ 'b R ~4c:q~'1~y~tn~e.4 ty~•, <>h+ L.~ru eeu ~ •o~c. 4et4 V4a hh~Y`cn ~,$t ~ 4k :b '•yy,"n`"::n''d,. t. . °F 2e4 t . d !tya~... % ~''e.e¢ <4„_ ..°~.°A.y~. ~.4~n°• aa K, , y~ "a'»^li*'~;.:`4 , g. 4. T ot al . ~ ~ w.. ~~t'a,,., ao;•'v':4 `~.~yy . . „ ay~ b l 3~ bti+.2 tL`i•; ! . g ..h . ::":j";• ~:4< S .~A° . ~.`^;^¢`~.'en. + +yq a ~•;t~1'~;~1~*ki:'~~otu:~'.%:~.~'li°~'~~n ..tiye~.n.~... Sa .e.'S;~xry.q•,.>, :nr.i ,~neA T'o o~a { y ~ JUNE SALES TAX CASCADE VILLAGE/EAST VAIL/SANDSTONE/WEST VAIL JUNE JUNE JUNE 1997 1998 % Collections Collections Chan e N.,~ : ; ~ wn.`SyQ,~i4t$.`S,t9~+°.S..~S.+}..i+~s.tw'-i9~.... $bi?.4 . . ~X:?Y¢ a1. <>tb'V:i~::.3<' K+a"(4?s,~A'~;~. ~.^:;~~<_..-.,:~.~c, . ;•;>;4, ti`z;;,,° na~, :a~b~> "::4;~.;Ltw~.~: ;.t,.--,.=,';.'• -~e,.. -.<:wa?~yP:g'3i^'E~,"•'"~","4..° ~8'; dki~k?:4;~?Ea:vaa,., a"`vv~,»_.:.~=.s"i~.; w.?,zS~~,°„ re°„~~i," =iti , . . . v"}"ke'¢44:~~~.r'•e:,•k•.~?~ci ~aa ::XH.,~4~tire~ .~ti;~. o.~~.".}ti,,,k~~A~l,;',y. ~ 'n~~~':xy~` ~l ~ . s, w, •'.:s,.< w:^e ..,av:~..a,..., >e'4. . , '~'b ~ g v %n'i• ~*.';n.. . _ ,k, ~ . R etail . ~y~;~::~...o, u4~, b t hti2~;~ ~.,a~.~..i 'ti.'~ A-. . .s.,~. cc'.Y,eqe e~ ~:;ke.,; s~£S:a:::.. `4`e A ~ `ea ~ E ~ .¢q w~e C4:. " . ~4x , .4rya. . ` w`y" ~ .a ifr;l`3 ~%,3S cc~ ~ ;'w. 2~.... t, v4 , "e`,. %.3ti'x h. i,Sw4~e aoi"::.,.n .4.~. W ti ,ya+: '~iss~. S.. :<4e L ~ od 9n9 !vs~b 2:r..:~.4~i Y.. i~ . ;t. `Ok A., b ~ ,a~~~~~~~mi~;~. . u'. h ''~i' ~a."?r.. "'r ^<;:.z43 'a , .i4'..aL:. . r-4 4 tic oa'cHc>c, ...S,s, T1 4 3° ~u> ;iaf' alM,o a:a . 'ct ' `•o~,~ '*A~~'sdo*o6* ~ .'n. y°` a+... ~M. .v.'~~..~., eS'b ~ 4. '.'°>s} nod< attiahe ~'DOi' q ~ nK<w~"w ~BZY '4"i';; 4OS ' b n'?, Food & , 5 ea.eh : a±Yx :.s,~sh S <A»9>' a'i'_G.'f~'~'.• r:•+4 v5 .~i.. ~i'~ •bn ~.v ~ ....4~. V ok }~>k: S^..... ;._*v;.xc ~ 'CY ".'E4ai~o '~a~y., ~ y ~ B ever Y~ 4.. ti~~ µ b'ti a9e a= S Y:~.', ah V% ~'+4:~rA,qk+~ ~ ~w+~sti`~"a~ero y` ~a.•• .~1\'»~ • »,,;?4w< v?y;%` b, w"ti :•:Y::: '+,`~`''e'' 1.,. ~ c.,.. ....,..,,,,:r.. . e °M1... R~ s. ~~r 'Sl .4v .h. a ~Lo 'M„ ~ti' . . -.,,:...A fb?l '3a' '~.;5 . ~ ._'.+.`.'~~ar.r .:',hY,`5.`"Y?heti,•.>~i'i'>fi%;~ A4c°bt~i ~.4~~ ~t .•.1`..S Othe ~ r ~t ,~~tii%"o ,.g.. ~ih ~ ~e S:;iaon+4 n.o4s t: ee3t""6b ~ ;..a. . s.~b~.ha. b4v , c . z~.. -.~v, ~S%,~'•~~ _uv~. , .zsS,n .4k. ti waAw'= ~2Xvx 't*4 • ~C<' y~V M1~., b o• ti,~ a~;xce n , b. c ~ °q t k~ `r i. V- - ~ `bth~."~c4°h`y.4'~`>2~•• '~.a,a4+a Total ~ .l4 ::~;•y D b. h h. ~`ac t.. . vnti . a=.an.. ' ^ti vaacn*'.ca"4 OUT OF TOWN JUNE JUNE JUNE 1997 1998 % Coilections Collections Chan e ,iS55 ' ao",'.Yy ~ , g,~.ae > <•,.`~.4. S. .A°., ~t~Zi•?` •y_,e., ,b:~ =P y: 4.. v,~~_ ~ .,b<}o ' z+s'e~' .a`. eaM1... >,ni'i,. ..'~,b•,,: ~ e$i,•~ ` y , y.Ycrz ~::b°b°be ? ',"Y:~ .q ~ . ~t^ti i ~ ' tir° rw "::.'v..'e``~~ ,,,:?~•.:.,.n' ta. ....,.i+;~; ' o b4 ':c ~ `4tti-:.•, ,>-.~:'n..2i:<,.:^....s 1 c R eta il C~ y~ ~ ~ ~ ~ .,.4^..+.. . .i 77- ~,:+v`4`b`*°^J~:;~h1t'i''.',~.`"'.'.`~° •.:;ti`:;.`,, +.'lx+;~ ~,y 4vwi.',`.i'w k ;;.hac ~n ,.p , y.. een , a+, ,m. 4 ~>t, `~:s€= -"u.,a ',ti:,*A9s'. ~y* {i 2 a. ~ 4 ..~~.h L n od9i 9 M ; <~b z S~='~";~ r4 b'i,i ~'v,...i~5`n'o;;.c.~`.,,,L?: n.`a,•,~~'.:a;,' 4nA`~.~n.oe . :t~.. sM144 b<'a 4t~~~ , eab . °a ?.M1, 4ya yi:i:~. < ~w aaaea~ era: rooh~, "A`i'~`'v w" a'L°°ic :,•o.g° 4acw. ° ~ti~~ aRf¢ hrM 4.~4 ..,°,s,•.:i A .4 ~ F ood .n.~.- .~.~4.• & t,~~.a i.i~'"ee~^o'~ab°ti'• 91a•.~°...C ? 4.,. ?,hK4 c'' aM•r ~ <"ti" , we. y o'hoo '.S°i :,04 BeV w; era9e 3 ¦ p:. ..,..,..,~..,.,e,:y..~, ~•4 `c z:; . ,t. )4k` ;y:,r`S~ ~ y` ti. rA}'~~~ ik, h'fi r,S^^`, R• "::ti4= ` 4 l','h^ ; b, b.ben v1>v;a 4 •`•`S~~*nw° ~ a~a"qt i%4Aq' n °b ugri7,`4ks:yi¢%. 4w n•~ M1. fa'.d'e'Jn n,'h e3va'e.. 3„ o+. l .N.`~!titi"£?`* lM1 aopq;.q c4 ' .,'~°°*•~3""~~„ e ao . Othe r ~ c'•a±e''%;iq¢ 2ti: ~4 ;Sps•wa .~a.. w~:~;><;4 t ;~~~~~:~,;_~.::.:...~a. . .`nan°'.~. \ 3. ~a n<~ ~ ~ a y~a>.?ca , .~S ka. o .•awa~.'xhk~': rok `o?o. a,~, fr Aka. zA. ~ ..3.'K~"4%%.+'.~e%ih+ "'.`,"o~';?:r'., ~ ,a~..;. ~ e oq varek\ ~.a ~qrot`4 at }'+r ~~tybn o r titi:~ ,a~R4. ' M1r. ~nSa'o"~''o ':.tii... ti~~ u, • °r+a,n,°'::. ll 'h41^ b.. , b b 4~i h .~~'«~'a a~. 4EY••.f.a, `'h. , ..,...:...::ea!., . ......y.,~ . p•.~4a a~'°s k ~..1 . 0 4R$"`"'o "be °+Sti4:':;•, °%aaC.,. µ4`ze .wve;s4 ~ °e . c3%: ..:...»..,,,y„: T > O 6 tal ~ s.?..b'w: "„'b`::~SJ,"a.i•9 ' 4; 'c+e n S, oh e~.: ..~''v,.,,;..,.... n .~a<s ..'4. e1`,.,. ,•L°'kii`~+, ~`v`,;"E g '%'%a . . -.a.. . . ::t c;r o .o dtt~ JUNE SALES TAX ~ TOTAL JUNE JUNE JUNE 1997 1998 % Collections Collections Chan e ~ u, t~ q`' gs, . .,n ~g.+sw~rw'+~Sita%€,, ~ y~ar`~ t wks~ g• a Retail t ~ Lod9in9 a`. ~i°.011 ~ FooM & Beverage O`IIeC S- ,b +t -a, wM ti ~~Yt~ St 3° a., i~ ty~1~'°~4y~`•~, , . . , w . wy w ~ wg,~ ~ g w w ~ lw°.b'', ~~a" , Total y RE TAIL S UMMARY JUNE JUNE JUNE 1997 1998 % COLLECTIONS COLLECTIONS CHANGE FOOD 93,106 89,965 -3:4% - - LIQUOR 10,920 11,726 7.4% APPAREL 36,474 31,931 -12.5% SPORT 48,767 47,356 -2.9% JEWELRY 13,313 10,391 -21.9% GIFT 12,187 11,692 -4.1% GALLERY 2,652 2,099 -20.9% OTHER 60,902 65,332 7.3% HOME 385 3,092 703.1 % OCCUPATION TOTAL 278,706 273,584 -1.8% 6198 YTD SALES TAX r VAIL VILLAGE YTD YTD YTD 1997 1998 % Collections Collections Chan e ~ . . _ . . 4.~.:..~.. . . . . _ . . . . . . . ; . _ . , . ...<.a.~4:: ti:~t; . . . : , . . ...t . . ....r. ~.:1 'i,~, . . . , . . . _ 4:; 5i,.e`.<.4~ - ....z. ;4< . . . . . - . - . , .v<-..,a ` > :.v.. . . . o.:.; .::.t . ,.._i;....'.'<:~ r „ :.`S.. s,.4"~i .L. ..4. . . . . , _ `ee~w t.. . , ~ . . . . , . .,,.;;e,..,.i..,, . o, . . , . . . . , , ~ , ,;.....a , ~ _ . . . _ _ .:c ....o,::>..i . . . . _ Reta~ ~I : . „ . . ~ . . j ~ - ~ . . . . . . . ...>ne„'... _ . . t~ . . . .,:;i.:~:~, t . . ~;r=,~ . . . . . . . . . . . . . . . . . . . . . ."i: ...:ti.".: " . . ~ . ..:.y,.., _ ~ . . . . . : . . . . . . . . . . %,Z~•~`~ . . . . , <44;:• "¢><4 „~ti.~ d'a.. ,5`.~.+4y; ti~y,•, = . : . .x r;.. ~ ,.f'.s jS,a...~a.....:- ~ k: M. e%'~h•: ' L ~ od9'n _ , . 9 . ~ . . . ..:>c , ...c,,.. , . ~ . ........:..ti;,.:5:.;... .v:i<•;s:~.:ti::.:~;:.:.:~:~.. .,r, ~.ei.i'~.'..•:.,~ ~ , ~i:. : . ; . . . . . . . . . . . ....::::....x..<::~., . . 4?L`~ ~y ~•~y:a;:;:hs.c~ a.aiY.c w4., c st k ~cw a>~D ::h~tc. 4 i'4+4e s e„ ~fr" b °.z~?' a:'i;~''•' N. eeEn „ :~..;s3c.. . t4e , . ~ ..e..~r..s..~.'x,>,..,, . . >•n..,.< ak , . ; .d~. ..i . - F . •4~~t'e t 00 d & ~ ` 4> ' .4kY A::'!~ Y s ~r S 4. - vv42'~•~:"1' [r,~'~b V .~1. ctto~ -c . _ . . : ~ - - ~~,3•°.a . . . . ~ _ . „ "s1'~~ ~ . . . . ,..~~4..,~, . : . . . . .:4 B , . . < ..:.y. _ .r; _ . , . : . evera9 e . , . . . . . . , .~~`f~ , . . . . : _ . , ~E,,::.::~ ~ . , . . . .:.......:c.... . . . • . ,,,?„s..`°~,',.`c~;';i. : ~.Yr...'4±,:~'jt.~,'~,•~<<',',.+.,°~-.wa.. . . ~ . ng~;= u; . . eea~, i . 1 u.+"~i+.na> ~c ttQnn i:% . „xw . , . _,>..:.s, >h, y ~ y~ 4.. Other ~'~.>;'i;!;a:4".oi;:e:_~q :'`;,.°`-,~"•'y''.:.. ~ n4.. a + ~ . . _ i.. = . . , . ~ s2,ki. . . . .~n. . . . _ . . . > . - . . . . , . . . . ti Total ; . . , , , . . . . . . . ' , . _ _ •Y>4~.. . . . : ; " -e,..e,,,•...,.. - . , . . .:::n.,., . - -...,.w~:::?.:_:~:¢.:': LIONSHEAD YTD YTD YTD 1997 1998 % ~ Collections Collections Chan e ~ . _ . ~ , . , _ . . - . - , _ : ~ _ . : , . >..>..:t,,... . < .x•...t:a~ ~.,~«.,.s.....,. , . , . ,..y.._...,-..,, «._.7~, . . . ah. „ . . . . . . „ . . . . a.. a4"v;:ti ..4., .,i.'. . . , , . . . , ...h . . . . . - . . . . , , . . - ,.:y!;.,• _ . . . . . ...-.t. . . _ . . . . . ~ , . ~ :"s~;t4,` . . , ;..,x,,. . . . . 4 . . . , . . :-..a.:....; :-:a:,."', „ , . . . - . . .__.-.w.~.; . . ~ . . . . . . _ . , . . . . . ,..4:.. ~ . . :..........::r..; 01-. Retail - `1 21: : . , . , . . ~ . : k : . , , . . Lodging ~ ~ ~ . : . < _ . _ . _ . , . ~ : . , : . . , . . . : . . . . , . . ~ ~ , . i.,.. , . - „ ':a4~: „ ....t... :,..c .....:~......~.,.nc . . . . . . . . . . „~'~~ii 4''1 ?X...:. F ood & ~s. .w. ~ o'n,a `n , a;L4 a. "a3t„ . . n _ , 9 " y~ R yk ' . . , B ~'~.',n~:~iti;:i~'<;i~,c,i;'~.r..,~c,~ ;:un.'„•'`j_.s;.sv~~,:,~ ev r ea e y~, , , . . . . _ ~i~~' . . . , ~ . .3~ . , .;,y . . .,i,•:ts:,.'st:: ;,5,%~;.,,4~ti::;,,.. ;b9.".~,:~ C..;:'.tii"..:?~nrp:wen...:~1'a:i{;;y~%+%,'S:ii . . : , , . : '.'.y:: , _.:.....a,atcn. ' . . . : „ . . ~ . : _ _ . . . . . . . . . . . . . _ . . . . , -<.i ~ ..:'o,.:. . . . a.,.: a...... . . . , . . . ..a:.:-...... ..:,i;t;,:.!„ . - _ . . . . . . . . . , a,M~. .4l• S . . . . : . . . . . . . °.h`c.. . ^•'.~'+''t _ : Other p~is S . . : . , . ..,.c,:, . - ~r:a$°'..s~q•4•, n _ . . . . , " ~ : . 'r,k.,N,,..:.n.•A:~...~~:,::n. ~ . . ~.rr::r.'u•`tr'~~.F? . . . . . . . TJ94;• . . . . . . - ::.,q•'~.~. .4ti clti. u~ .p, t a ~,n •.4u.>; :,~;.a,,•,;,,.,, . , , _ ::,:iw~:..4 ~ ?~M1 `4d"a . , , . . ' bi~ a ~ ,•`,:4 . ti. v T otal ..o,~ . ~ D - ~ .~a -.m ~ ~,~..:~b.... _ .~,...4.::~. - ee,, ,~..,u ~ 6198 YTD SALES TAX CASCADE VILLAGE/EAST VA/L/SANDSTONE/WEST VA/L YTD YTD YTD ~ 1997 1998 % Coliections Coilections Chan e ~ 'c;:' . ...,.r.....:::.`t:!; aso . .....i.w~.,r, ,.,.,.,...,;..~:..c F.ahi%'.va~P":, ~Y 'F • h~. . ~ ,...t... ,..n.~,<~....~~ Y...-_. .~.r<:.~;.. . . . . .L:..>x:,.:~_~~:~:'i•` '~.So:~'`,t~:;,~~.vb,`;s~'.-:~<~~'~.a~,,..e<ti~wi~a_1~~54~,~„ ~..%4e. .?m..~,. . . • ~.?ti';.: :k~:,,.. _ wwieY ~hk ;1... R . . etaiI t~~3~'~ ~ Lodging i ,4 y° - a° ;•z.~ , ~y k, ? g3z°'~ ~0.,vs~w F OO M M 4 4 }'~b ~ l 1~.~1•~ e~ - ~~c'Y4 .'.,~`4 ~'c*:y~:y. 1 14 l*i- ,O ,Y ~ `~'~xt '~f ~,3~4~,h~~.ti`A~~'+.t~•,~~ , n~`aL~~ ~'T~t~~~~ 's - - - ;4:~,•.,;: sv~ ti ^ei ~,;s; Beverage 226~~ „ ~`ia'~e i <t`4t=",;• ie '`4~'.'sb~'S ~y.;,'~`:;n,~R;.:;,.,:~;.~ , . . , . . ~ - - , . , . . , . . . ~ . , . . +d.r, veo- , : ~ ~ . r; - _ . ' . . ~:::r, . . .~S.4t ' ,.1.. : , Other ~ ~ e,~ t _ i - _ . antiat'as . . ~ . ~ : , . . - - _ „ , . - . . . : . , . . . _..,.......e,.....at;~-,_:,,..-..,-;, , - . }y.,e , . . . w ..:,•..,s.,, ~i~s'r"xe . . . . ~ . ""'=`~t, . . . . . - < . . . : . . ...:....:.:.5. , ,._o- . „ ,.i.:e.::.,.....v . . . :y'.::::;.,.~; : . . . . . .:.a"..:: ~ . . . ~ . , . - c T o taI ~ ~ , . ..,'"s'~:~ . . a.t; > ;:'Lga i; OUT OF TOWN ~ YTD YTD YTp 1997 1998 % Collectiflns Collections Chan e . , ,_a . _ , _ ~ 'g,*a..^,__ ~.4;~?..o.,.,., ~.,-..e.;....:,:..•'Sa;•p.;,:;,•,y}a<`s;s; it sp. H. R etail 8~ 774~ 154"~ ~ $l.~; ~ , - e.:. . . . . . . . ~ " ; L od9in ~ 9 . . ~ 3 . , . . . ~ e~Kn :1rL" ; . h,?ab.•,, . .Ix„ss . F . 0 od & _ : Bev ~ er a9e ; ~ 1048:~<`;~- f 3 -~,+'+•ri~; *k?A:. ~^h4av s.~,.. 44rtr,~~;'iq y ~~~~;,•:%•4~~~~`Ye~~~~i~4:,.''Si'hvs~Y',i.~~:~;,~ 4~',".''~~~.~;o?„o _..:~''`4 Y,...Yb;..v.~,y2;i,.~;'%J Oth er r ~ J i3~ . . . ~ 3i.~ . . . . , <;.g::~. ~ T otal 7219410 ~ ..n.:.. . . , . . ..,,.,e,.4.:°'•' . ,~t~C^, ? 6198 YTD SALES TAX i TOTAL YTD YTD YTD 1997 1998 % Collections Collections Chan e v, Retail ~x Lod9in ~ 9 czb b L . i~~ FoDY {x ~~Zl~ 7"CeC,55M ~°aa :.~•,w. Beverage a.,; vg ~ ax•~'3ro' ~,~A °~~~`'t+,t~! Other ww ~ _ ~ ~ Total ~ ~ ~~,~'37',~ z~~~~~~°~?: i k x a > ! ` ~ . . ~ . 1 RETAIL SUMMARY YTD YTD YTD 6/97 6/98 % COLLECTIONS COLLECTIONS CHANGE FOOD 557,775 651,002 16.7% ~ LIQUOR 105,376 113,915 8, l% APPAREL 491,596 449,741 -8.5% SPORT 1,204,778 1,221,236 1.4% JEWELRY 119,907 124,024 3.4% GIFT 123,228 116,639 -5.3% GALLERY 20,333 33,139 63.0% OTHER 442,350 457,468 3.4% HOME 4,717 10,725 127.4% OCCUPATION TOTAL 3,070,060 3,177,889 3.5% ~ Town of Vail 75 South Frontage Raad Vail, Colorado 81657 AUG-14-98 11:14 AM PEPI SPORTS INC 970 476 0442 P.01 C, . 4asNtOf r ~ framshammer, Inc. Teleph siaa~s-5s2s Pepi Gramshammer 231 East Gore Creek Drive Sheika Gramshammer Vail, Colorado 81657 August 13, 1998 Rob Ford, Mayor and Town Counci! Members Town of Vail Mayor Ford and Council Members, . This tetter is to inform you about the storm water sewers that run along the west side of Gasthof Gramshammer's new addition. The previously existent storm water tines had to be moved because of the new building. Prior to the construction the Tawn of Vail did not have an easement agreement with Gasthof Gramshammer. I asked the Town to move the water lines next to the west wall of the new huilding but George RUther and Bob McLaurin told me this is my responsibility and I would have to pay for it. The Town required that I put a huge concrete pipe in place of the galvanized pipe tha# was previously there even though there is still a long piece of the old pipe (approximately 90 feet) under the trees next to the Children Founiain. In addition to this, I had to install two big manholes making this much more expensive than just moving the pipe. It took 221 square feet away from my garage area because this pipe is about 37" wide, 70' long, and approximately 3' higher than the parking grade. To make matters worse, I will be required to pay the property tax on the 221 square feet of lost parking space which the town is using for their drainage. As a property owner I feel that it not fair that I not only have to pay for moving the pipe but atso the property tax on the resultant Eost parking space. I was told that if i didn't sign this easement agreement I would not receive the building permit. I could not wait any longer to begin construction so I was forced to sign an agreement ihat was not fair to me. My cost so far on this has been $55,660. I believe it is the Town's responsibility to take care of this matter. Sincerely, Pepi Gramshammer ~ ' . . , • _ , August 15, 1998 Vail Town Council Members Town of Vail 75 South Frontage Road Vail, CO 81657 Town Council Members, I would like to take this opportunity to thank you for allowing me to experience an incredible month in Australia. I will always cherish the memories. Australia was a change to everyday life as we know it here, yet the similarities in culture and interests I found quite comforting. Some of the many wonders of the land down under, which I was lucky enough to discover, included koala and kangaroo sightings, along with venturing to a great game of Australian "footy". Vivian & Rob Martin, my host family, were wonderful people. They were both teachers, and therefore, I was able to experience not one but three school systems, where I spent a good portion of my time, bringing back some very treasured friendships. Again, my sincere thanks to the Vail Town Council, as well as to Pam Brandmeyer, and Karen Phillips for their selection and assistance in giving me opportunity of a life time. Sincerel ~~u~cu •L,1~~.,c~,u Tracey ~elan ~ . ' sifz ark Lodge August 18, 1998 Vail Town Council 75 South Frontage Road Vail, CO 81657 Dear Council Members: It is my understanding that a small group of Vail merchants are once again coming to the Town Council to take the Business License Fund out of the summer marketing program. As a Vail business person, I am very opposed to doing this. Without this money, the summer marketing program would become ineffective even if other entities continued to contribute (which they would not). Spending this money locally to try to attract business from down valley to Vail would not work. Down valley people have most of their needs provided for down valley. We should recognize that Vail's business is tourism. In order to increase business in Vail, we must market outside the valley so people will come to Vail and stay in our hotels, shop in our stores, eat in our restaurants, and drink coffee in our coffeehouses. If you have questions about my view, please give me a call at 476 5001. Sincerely, Bob Fritch Owner The Sitzmark Lodge Vear Around Resort Lodging 183 Gore Creek Drive • Vail, Colorado 81657 •(303) 476-5001 • FAX (303) 476-8702 ~