HomeMy WebLinkAbout2008-09-16 Support Documentation Town Council Work Session
VAIL TOWN COUNCIL
WORK SESSION AGENDA
VAIL TOWN COUNCIL CHAMBERS
75 S. Frontage Road W.
Vail, CO 81657
1:15 P.M., TUESDAY, SEPTEMBER 16, 2008
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. ITEM/TOPIC: Commission on Special Events (CSE) Interviews.
(30 min.)
ACTION REQUESTED OF COUNCIL: Appoint one applicant to
the CSE.
BACKGROUND RATIONALE: Applicants must be residents of
the Town of Vail, own real property within the Town of Vail, own a
business in the Town of Vail, or be employed within.the Town of
Vail.
The term of the new member shall be until December 31, 2009, to
fill the term vacated by Scott Stoughton who had to resign due to
other commitments which will not allow for him to attend the
meetings anymore.
Members of the CSE shall serve at the will of the Town Council.
The CSE shall support the Town Council's goals and objectives
and make decisions in alignment with the Town Council's
marketing direction. The mission of the CS,E is to support street
entertainment and special events for vitality, year-round fun,
sense of community and increased quality of experience for
guests and residents. The functions and/or duties of CSE shall
include, but are not limited to: hiring and overseeing a director
and/or staff, as well as event producers and/or promoters;
creating, funding and seeking special events for the Town of Vail;
evaluating event applications and event success; submitting an
annual budget for operations and events; coordinating the
community calendar for special events; seeking out additional
funding for special events through sponsorships and donations;
evaluating and executing contracts for special events; and all
other functions as directed by the Town Council.
There is currently one vacancy on the CSE. The Town received
five (5) applications for the vacancy. The Council needs to
interview the applicants at the work session and then appoint one
applicant to the CSE at the evening meeting.
The applicants areas follows:
Samantha. Bogash
Stephen Connolly . ,
Kerry Donovan`
Tom Gorman
David O. Williams
* Please note that Kerry Donovan will not be able to attend the
work'session interview meeting as she will be out of town.
RECOMMENDATION Appoint-one member to the CSE for the
balance of a term to end December 31, 2009.
2. Warren Campbell ITEM/TOPIC: PEC/DRB Update. (15 min.)
3. Judy.Camp . ITEM/TOPIC: Municipal Employee Housing.. Opportunities Program
Pam Brandmeyer (EHOP). (30 min.)
Krista Miller
ACTION REQUESTED OF COUNCIL: Consider additional
information provided in response to Council's questions and
comments from August 5 h.
BACKGROUND RATIONALE: This agenda item is a follow-up to
the EHOP proposal discussed with Council on August 5 h
STAFF RECOMMENDATION: Staff recommends replacement of
the current limited down payment assistance program with an
Employee Home Ownership Program (EHOP)- for municipal
employees as outlined in the'staff memo.
4, Greg .Hall . ITEMITOPIC: Review and. approve or approve with revisions the
recommendations of the parking task= force for the 2.008-2009
winter season..(10 min.)
ACTION REQUESTED,-OF COUNCIL: Council directed the task
force to address potential impacts related to the new Epic season.
ski pass as. Well as address,the overflow days this last winter, in
forwarding their annual recommendations to the council.
BACKGROUND RATIONALE: The Town Council established the -
parking:task force to provide direction to Council regarding parking
operation policies for each year. The task force is represented by
members. of the Vail Town' Council, Vail Resorts, the retail
business.community; as well, as a citizen-at-large representative.
STAFF RECOMMENDATION: The parking , Task force
recommendations are provided. Staff recommends adopting the
recommendations as approved by the task force. Council may
• also approve with modifications the recommendations of. the
parking'task force
5. Kathleen Halloran ITEM/TOPIC: Discussion of Ordinance.No. 19; Series of 2008,
an ordinance making supplemental appropriations to the Town-of
Vail 2008 budget. (10 min.)
ACTION REQUESTED OF COUNCIL: Provide input regarding.
the 2nd supplemental of 2008, Ordinance No. 19, Series of 2008,
in preparation for approving the first.reading during the evening
session.
BACKGROUND RATIONALE: To be provided in a separate
memo.
STAFF RECOMMENDATION: Staff recommends that the Town
Council approves Ordinance No. 19, Series of 2008, upon first
reading this evening.
6. ITEM/TOPIC: Information Update. (10 min.)
? Liquor License for March 10,.2009, Community Meeting.
? Seasonal Worker Availability:
? 1-70 Traffic Noise Update.
7.. ITEM/TOPIC: Matters from Mayor .Council: (30 min.)
8. ITEMITOPIC: Executive Session, pursuant to: 1) C.R.S. §24-6-
402(4)(a)(b)(e) = to discuss the purchase,- acquisition, lease,
transfer, or sale of property interests; to receive legal advice on
specific legal questions; and to determine positions, develop a
strategy and. instruct negotiators; Re: acquisition of property;
2).C.R.S. §24-6-402(4)(b) - to receive legal advice on specific
legal questions Re: update on pending litigation. (20 min.)
9. ITEM/TOPIC: Adjournment. (3:50 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 BEGIN AT TBD,
TUESDAY, OCTOBER 7, 2008 IN THE VAIL TOWN COUNCIL CHAMBERS.
e
VAIL TOWN COUNCIL
WORK SESSION AGENDA
VAIL TOWN COUNCIL CHAMBERS
75 S. Frontage Road W.
Vail, CO 81657
1:15 P.M., TUESDAY, SEPTEMBER 16, 2008
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. ITEM/TOPIC: Commission on Special Events (CSE) Interviews.
(30 min.)
ACTION REQUESTED OF COUNCIL: Appoint one applicant to
the CSE.
BACKGROUND RATIONALE: Applicants must be residents of
the Town of Vail, own real property within the Town of Vail, own a
business in the Town of Vail, or be employed within. the Town of
Vail.
The term of the new member shall be until December 31, 2009, to
fill the term vacated by Scott Stoughton who had to resign due to
other commitments which will not allow for him to attend the
meetings anymore.
Members of the CSE shall serve at the will of the Town Council.
The CSE shall support the Town Council's goals and objectives
and make decisions in alignment with the Town Council's
marketing direction. The mission of the CSE is to support street
entertainment and special events for vitality, year-round fun,
sense of community and increased quality of experience for
guests and residents. The functions and/or duties of CSE shall
include, but are not limited to: hiring and overseeing a director
and/or staff, as well as event producers and/or promoters;
creating, funding and seeking special events for the Town of Vail;
evaluating event applications and event success; submitting an
annual budget for operations and events; coordinating the
community calendar for special events; seeking out additional
funding for special events through sponsorships and donations;
evaluating and executing contracts for special events; and all
other functions as directed by the Town Council.
There is currently one vacancy on the CSE. The Town received
five (5) applications for the vacancy. The Council needs to
r
interview the applicants at the work session.and then appoint one
applicant to the CSE at the evening meeting.
The applicants are as follows:
Samantha Bogash
Stephen Connolly.
Kerry Donovan*
Tom Gorman
David O. Williams
Please note that Kerry Donovan will not be able to attend the
work session interview meeting as she will be out of town.
RECOMMENDATION Appoint one member to the CSE for the
balance of a term to end December 31, 2009.
2. Warren Campbell ITEM/TOPIC: PEC/DRB Update. (15 min.)'
3. Judy- Camp ITEM/TOPIC: Municipal Employee Housing Opportunities Program
Pam Brandmeyer (EHOP). (30 min.)
Krista Miller
ACTION REQUESTED OF COUNCIL: Consider additional
information provided in response to Council's questions and
comments from August 5t'. ,
BACKGROUND RATIONALE: This agenda item is a follow-up to
- the EHOP proposal discussed with Council on August 5th
STAFF. RECOMMENDATION: Staff recommends replacement of
the current limited down, payment assistance. program with an
Employee Home Ownership Program -(EHOP,) for municipal
employees as outlined in the staff memo.
4. Greg Hall . ITEMITOPIC: Review and approve or approve with revisions the
recommendations of the parking task force for the 2008-2009
winter. season. (10 min.)
ACTION REQUESTED OF COUNCIL: Council directed the task
-force to address potential impacts related to the new Epic season
ski. pass as well as address the overflow days this last winter in
forwarding their annual recommendations to the council.
...,BACKGROUND RATIONALE: The Town Council established the
parking.task force to provide direction to Council regarding parking
operation policies for each year. The task force is represented by
members of the Vail :Town- Council,.. Vail Resorts, the retail.
business community, as well as a citizen-at=large representative.
STAFF RECOMMENDATION: . The parking task force
.recommendations are provided -Staff 'recommends adopting the
recommendations as approved by the task force. Council may
also approve with modifications the recommendations of the
parking task force
5. Kathleen Halloran ITEMITOPIC: Discussion of Ordinance No. 19, Series of 2008,
an ordinance making supplemental appropriations to the Town of
Vail 2008 budget. (10 min.)
ACTION REQUESTED OF COUNCIL: Provide input regarding
the 2nd supplemental of 2008, Ordinance No. 19, Series of 2008,
in preparation for approving the first reading during the evening
session.
BACKGROUND RATIONALE: To be provided in a separate
memo.
STAFF RECOMMENDATION: Staff recommends that the Town
Council approves Ordinance No. 19, Series of 2008, upon first
reading this evening.
6. ITEM/TOPIC: Information Update. (10 min.)
? Liquor License for March 10, 2009, Community Meeting.
? Seasonal Worker Availability.
? 1-70 Traffic Noise Update.
7. ITEM/TOPIC: Matters from Mayor & Council. (30 min.)
8. ITEMITOPIC: Executive Session, pursuant to: 1) C.R.S. §24-6-
402(4)(a)(b)(e) - to discuss the purchase, acquisition, lease,
transfer, or sale of property interests; to receive legal advice on
specific legal questions; and to determine positions, develop a
strategy and instruct negotiators, Re: acquisition of property;
2).C.R.S. §24-6-402(4)(b) - to receive legal advice on specific
legal questions Re: update on pending litigation. (20 min.)
9. ITEM/TOPIC: Adjournment. (3:50 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 BEGIN AT TBD,
TUESDAY, OCTOBER 7, 2008 IN THE VAIL TOWN COUNCIL CHAMBERS.
MEMORANDUM
TO: Town Council
FROM: Lorelei Donaldson
DATE: September 11, 2008
SUBJECT: Appointment of Commission on Special Events Applicant
There is currently one vacancy on the CSE. Applicants.must be residents of the Town of Vail,
own real property within the Town of Vail, own a business in the Town of Vail, or be employed
within the Town of Vail.
The term of the new member shall be to fill the vacancy left by Scott Stoughton and the term
ends December 31, 2009. Mr. Stoughton resigned due to personal commitments that did not
allow for him to attend the CSE meetings.
Members of the CSE shall serve at the will of the Town Council. The CSE shall support the
Town Council's goals and objectives and makes decisions in alignment with the Town Council's
marketing direction. The mission of the CSE is to support street entertainment and special
events. for vitality, year-round fun, sense of community and increased quality of experience for
guests and residents. 'The Functions and/or duties of CSE shall include, but are not limited to:
hiring and overseeing a director and/or staff, as well as event producers and/or promoters;..
creating, funding and seeking special events for the Town of Vail; evaluating event applications
and event success; submitting an annual budget for operations and events; coordinating the
community calendar for special events; seeking out additional funding for special events through
sponsorships and donations; evaluating and executing contracts for special events; and all other
functions as directed by the Town Council.
The Town received five (5) applications for the vacancy. The Council needs to interview each
applicant at the work session and then appointment one applicant to the CSE at the evening
meeting.
The applicants are as follows:
Samantha Bogash
Stephen Connolly
Kerry Donovan*
Tom Gorman
David O. Williams
* Please, note that Kerry Donovan will not be able to attend the work session interview meeting
as she will be out of town.
September 8, 2008
Vail Town Council
75 S. 'Frontage Road
Vail, CO 81657
Dear Mr. Mayor and Council Members:
Please consider this letter my application for the open seat on the Commission on
Special Events. I have lived in the Vail Valley for 5 years and work in the Town of Vail for
KH Webb Architects. I think community involvement is important, and believe that
serving on this Commission would be an interesting way to become involved. I know
that special events are vital to bringing business to Vail during our summer and shoulder
seasons; and while I don't have any experience with marketing or organizing special
events, I have plenty of experience attending them and have an idea of the
characteristics that result in successful events.
I understand that ;the Commission meets at least once a month, with other "special"
meetings periodically, and I do have the time to serve.
Thank you for considering me for this position: I will look forward to speaking with you on
September 16th.
cerely,
dpUA?
mantha Bogash
(970) 331-1519
Q(-et4,-
Ito t
9.9.08
Vail Town Council
15 S. Frontage Road
Vail, Co 81651
Dear Council Members,
I would like Samantha Bogash to be considered for the position on the Town of Vail's Commission for Special Events.
Samantha has worked With U. Webb for a one year and has been a great asset to the office having an enthusiastic
personality and wonderful energy that would make her a great member of the CSE.
Our company believes community involvement js important, and we would give her time to attend regularly scheduled meetings
of the Commission
Sincerely,
Kyle Webb, AIA
v U. Webb Architects
C
h
aj
710 WEST LIONSHEAD CIRCLE, SUITE A SAIL COLORADO 81657
970.411.2990 970.477:2965( F) www_khwehb.com
MEMBER OF THE AMERICAN INSTITUTE OF ARCHITECTS
Stephen Connolly
P.O. Box 3003
Vail, CO 81658
,(9700).476-113346n
September 10, 2008
Vail Town Council
c/o Ms; Lorelei Donaldson, Town Clerk
75 S:Frontage Rd.,
Vail, CO 81657
Members of Council:
At the request and with the encouragement of members of the CSE Board, local event producers,
vendors and Town. Council, I respectfully submit this letter'of application for the.position of
Board Member on the Commission on Special Events.
Having over twenty-five years of experience in the industry and previous service on the CSE, I
am fully qualified to serve in this capacity.
Given the opportunity, it would be an honor to serve the Town once again.
Sincerely,
Stephe Co olly
Stephen F. Connolly
P.O. Box 3003
Vail, CO 81658
970476-1346
SUMMARY OF OUALIFICATIONS
Strong communication and problem solving skills.
Practical knowledge of media, advertising and special events.
Diverse sales and marketing experience.
EXPERIENCE
2002 - Present Ristow & Cone LLC
Vail, CO
Sales and marketing efforts for various special events and clients. Managed and implemented
the 2008 U.S. Olympic Trial sponsorships of Johnson and Johnson. Helped to found
THE DIVISION, a sports marketing agency specializing in the game of poker.
2001 -2002 Vail Chamber & Business Association
Director
Day to day operations of a chamber of commerce and business association including:
budgets, funding, staffing, special events,. working with Town Council, and addressing
membership concerns.
1987 - 2001 International Management Group (IMG)
Executive/Sports Agent/Event Organizer - Denver, CO .
Represented world class and Olympic champion skiers and snowboarders. .
General Manager- San Antonio,: TX.
Managed all aspects of a World TeamTennis franchise. .
1987-1993 Independent Contractor
San Francisco, CA
Management of sporting, corporate, social, and culinary events
Advertising sales for specialty fine arts publications
Vail, CO
Director of Fundraising and Public Relations - Ski Club Vail
Campaign Manager - Stovall for Town Council
Marketing Consultant -Cascade Health Club and Spa
Public Relations Consultant We Recycle
Advertising Sales Representative _ Colorado West Publishing
Advertising. Sales Representative - K-Lite FM
1983 =1987 Media Sales Representative
Advertising Marketing Review - Denver, CO
Regional monthly trade magazine serving the advertising industry
Multichannel News - Denver, CO
National weekly trade newspaper serving the cable television industry
1981 =1983 Event Director
Cyclist to End World Hunger - Denver, CO
National Logistics Manager for cross-country fundraising bicycle tour.
West Elk Road Club - Gunnison, CO
Race Director for multi-day international bicycle race
EDUCATION
Bachelor of Arts in Mass Communications - 1981
Western State College of Colorado, Gunnison, CO
September 8, 2008
Dear Vail. Town Council,
Please accept this letter as notice of my intent to apply for the open position on CSE. I am a resident
and property owner within the Town of Vail. I have over 5 years of first-hand experience with the "event
world" and am committed to serving the full balance of the current vacancy. I believe it is important to the CSE
board to have members who are familiar with the events from year to year.
I was extensively involved with all operational aspects of Budweiser, Street Beat, The Honda Session,
the American Ski. Classic, the Vail Dance Festival, and the daily operations of the Ford Amphitheater as a staff
member of the Vail Valley Foundation fi2003-2008. Not to mention the Vail Valley Foundation's other -
events such as Birds of Prey, ShowDown Town, and the World Forum.
Currently I am the Executive Director of the Minturn Community Fund. A non-profit focused on
Minturn by enhancing lives, preserving culture, and. connecting the people of Minturn.
Unfortunately I will be camping September 16 and therefore, not available for an interview. If an
advance time is set I would be able to hike to a cell phone friendly location to conduct a phone interview.
Otherwise, I am available until the 11 'h. I apologize for the tight schedule.
Please find enclosed my resume.
Warm Regards,
Kerry Donovan
Kerry Donovan
1014 Homestake Circle
Vail, CO 81657 USA
970.390.7113
vaildonovanQamail.com
SUMMARY OF QUALIFICATIONS:
World-class event experience that includes managing all aspects of event accreditation, supervising event
registration, providing leadership for volunteer management, support and recruitment, directing award
ceremonies; managing production and providing creative talent for event collaterals,.acquiring timely and
accurate permitting from municipal services, and working closely with staff, volunteers, and partner
organizations to create exceptional events.
I strive for excellence in every task and take pride in my work
EXPERIENCE:
Minturn Community Fund/Minturn, CO (2008-present)
Executive Director. 501(c) 3 committed to enhancing lives, preserving culture, and connecting people in the
great Town of Minturn
Vail Valley Tutorial Academy/Vail, CO (2007-2008)
English and Historv Tutor. Teaching students from Grades 6 -12 in basic to advance courses of History,
Language Arts, and Literature
Vail Valley Foundation/Vail, CO (2003-2007)
Operations Coordinator. Event experience includes the following athletic, education, and cultural events
sponsored by this non-profit organization:
• Birds of Prey/FIS Alpine Ski World Cup: The only venue to host four race disciplines in four days.
Notably, this event includes: 550+ volunteers, an attendance of 25,000+ spectators, international media
coverage, and is consistently cited as. elite ski event (Beaver Creek, CO)
• The Honda Session: Rated as one of the top 5 snowboard events in the world; nightly event attendance
10,000+ (Vail, CO) .
• The American Ski Classic: VIP, celebrity, and Legends of Skiing charity event. By- invitation attendance
for 3,500 (Vail, CO)
• AEI World Forum: For a select group of business leaders, government officials, scholars, and former heads
of state. Private, closed-door session for exploring some of the most critical economic, social and security
-issues facing the U.S. and the world community (Beaver Creek, CO)
• Budweiser Street Beat: Winter outdoor concert series. Attendance 1000-5000+ per concert event (Vail, CO)
• ShowDown Town: Summer outdoor concert series. Attendance 500-800+ per concert event (Gypsum, CO)
ADDITIONAL LEADERSHIP EXPERIENCE:
Dhra' Neolithic Excavation/Levant Kerak, Jordan
Diia Boss for major archaeology dig sponsored by the University of Notre Dame and the Council for British
Study (2002)
Metcalf Archaeology Consultants Inc/Eagle, CO
Staff Archaeolouist Provided archaeology survey, excavation, and artifact preparation services (2001-2002).
COMMUNITY SERVICE & VOLUNTEERISM:
Community Volunteer (since 2001) for:
• The Heuga Center, Vertical Express for MS
Red-Cross Bell Ringer
Vail Clean-Up Days
• The Youth Foundation
• Salvation Army Feed-a.-Family
• Provided graphic design services for various non-profit organizations in Eagle. County
• Birds of Prey Course Crew Coordinator
• Central American Foundation
Board Membershins:
• The Eagle River Scholarship Fund, for Eagle County Colorado students pursuing higher education (2002-
present).
• The Eagle River Water Shed, to promote water quality in Eagle County (2003-2005)
EDUCATION & ACADEMIC As. ma y VEMENTS:
BA: University of Notre Dame/South Bend, IN (2001)
• Major: Arts and Letters-Premedical and Anthropology
• `Dean's List 1999, 2000, 2001
• Monogram Club Athletic Trainer for the Notre Dame football team
Battle Mountain High School (1997)
•. Perfect Attendance K-12
September 8, 2008
Vail Town Council
Attn: Lorelei Donaldson, Town Clerk
75 S. Eo,,.4e Rd.
Vail, CO 81657
Dear Lorelei,
This letter is to c,Ajp.Q.,s my &...,st in applying for a vacant position on the Commission
on Special Events (CSE)
I bring skills and experience in planning, budgeting, c.,..L, ct initiation, analysis, and
execution, and logistics and support
I am a resident since-1979; a registered. voter, and p..,yerty owner within the TOV. I
bring a broad experience of living and working in this resort commi... Lf and a belief and
clear and ? anding of the collab.,.,a:on required to make it wv"ding and successful.
I cL,.?Q..t1y serve on the Eagle County Homebuyers Assistance Committee and the Eagle
County Zoning Board of Adjustment I am ci...,...1y self-"-JFIoyed.
Recent exr:,.:ence includes the housing and commercial real estate affairs for Vail Valley
Medical Center. I am a licensed Real Estate Broker and a candidate and near completion
as a Certified Commercial Inv,--,lu,ent Member (CCIM).. This 1-tLQ.L- designation requires,
the knowledge and demon L"on of financial and ins c zL ent analysis. I have an
unck.r,..duate de;,..,:, in Business Managenient;i:,?,. Regis Univv.'..:ly and have
performed graduate research also at Regis.
In past years I have been a volu..L.,,. for the Ford Golf Toi....a...ent, a f. ,-...ding member.
of the Vail Commu...:Ly Theatre, worked with the C, unity Guest Services (CGS) and
Yellow Jacket safety group on Vail Mountain, and served briefly on the Board of
Directors of the Vail Chamber and Business Association (VCBA).
Thank you for consideration of my application.
Sincerely
Tom GV.1..i " C
PO Box 335
Vail, CO 81658
477.1715
Lorelei Donaldson - CSE letter and resume
Page :1 of 2
From: "David O. Williams"
To:
Date: 9/10/2008 2:09TM
Subject: CSE letter and resume
Attachments:
Hi Lorelei, thanks for returning my call and giving me the CSE info today. Below is my letter applying for
the CSE vacancy (also as an attachment), and I've also included an updated resume. Thanks again for
your help.
0
David 0. Williams (970) 376-6495 davidoOrealvail.com Sept 10,
2008
Dear CSE and Vail Town Council members,
My name is David O. Williams, and I'd like to officially submit my name for consideration to
fill-the vacancy on the town's Commission on Special Events (CSE).
Some of you know me as a long-time Vail Valley journalist, former editor of the Vail Trail, and
now a freelance writer and owner/operator of RealVail.com. For years I have covered the
numerous special-events that attract thousands of tourists a year to the town of Vail, and I believe
I have a unique pQ bFective on what works, what raises Vail's regional, national and global
marketing profile, and what events could use refining.
As a full-time resident of West Vail since July 1 of 2007, I have taken an even more intense
interest in making sure the town's tax dollars are spent to the best effect, and as a father of three
young sons, I am often in attendance at many of the happenings that make Vail such a special
place. From Kid Rock to events that rock for kids, I've seen it all.
As a writer, I have to admit that finances are not my strong suit, but as a freelancer the past four
years, always wondering where the next check will come from and how to balance my books
when they don't come in, I do know a bit about maximizing resources. I. also have considerable
business experience in the last year running RealVail.com.
More importantly, I know what national and regional media outlets are looking for in terms of
events, and what their readers are enticed by when planning a vacation. For instance, I'm
currently writing a profile on Vail for the December issue of SKI Magazine, and my work has
appeared in publications from the Chicago Tribune to Powder.
These publications want stories about exciting, vibrant events with appeal across all
demographics. I. feel I'm highly qualified to assess which proposals best fit that model and to
gauge the ability of event organizers, many of whom I know personally through years of
file:HC:\Documents and Settings\Administrator\Local Settings\Temp\XPgrpwise\48C7D51...9/10/2008
Page 2 011,
coverage, to deliver.
Thanks for your consideration and the chance to become more involved in the community I love.
Please feel free to call or e-mail with any questions. All the best,
realva l acorn
David O. Williams
davidoO-realvail.com
Phone:.(970) 376-6495
Fax: (970) 479-1183
www.realvail.com
David O. Williams
file://C:\Documents and Settings\Administrator\Local Settings\T,,...r\XPgrpwise\48C7D51... 9/10/2008
David O. Williams
P.O. Box 3402
Vail, CO 81658
(970).376-6495
davido(axealvail.com
EXPERIENCE:
Freelance Writer/Website Editor, Vail, CO
February 2004 - Present
Write news, business, sports, travel and lifestyle stories for numerous national, regional
and local newspapers and magazines, including The New York Times, Chicago Tribune,
Rocky Mountain News, Denver Post, LA Weekly; Aspen Daily News, SKI Magazine,
Skiing Magazine, Powder Magazine, Rocky Mountain Golf,. 5280 magazine, United
Hemispheres, the American Way (American Airlines) Magazine and Vail/Beaver Creek
Magazine. Launched reality-based travel/lifestyle/information site, www.realvail.com. in
September of 2007. Also a senior fellow for the statewide political Web site the Colorado
Independent (www.coloradoindevendent.com).
Managing Editor, The Vail Trail/Daily Trail Vail, CO
May 1998 - February 2004
Managed Vail's longest running newspaper (Vail Trail weekly) until its purchase by the
competing Vail Daily. Directed editorial/production staff of up to 10 while developing
marketing and advertising strategies. Simultaneously designed,, staffed and launched
critically acclaimed daily newspaper (Daily Trail) in highly competitive market (May
1998 to December 2000). Papers won 40 Colorado Press Association awards (1998 to
2003).
City Editor, Vail Daily, Vail, CO
September 1997 - February 1998
Edited copy and managed staff of seven reporters at 14,000-circulation daily newspaper
in high-profile resort county. Directed two copy editors and paginated up to 20 pages a
day.
Wire Editor, Eastside Journal, Bellevue, WA
December 1996 - September 1997
Copy edited and paginated for.33,000-circulation daily newspaper covering Seattle's
eastside communities. Duties included layout, directing wire content and some writing.
Dep,. L..ents Editor, PT Magazine, American Physical Therapy Association, Alexandria,
VA
December 1995 - November. 1996
Managed, edited and wrote for eight departments in nation's leading periodical, on
physical therapy. Directed staff and assigned stories for 65,000-circulation monthly
magazine.
Reporter/Editor, Vail Daily, Vail, CO
June 1991 - October 1995
Covered hard news, business, sports and entertainment and served as sports editor (1991
93) and weekend/ski industry.editor (1994) for 14;000-circulation daily newspaper.
Editorial Library Clerk/Stringer, Rocky.Mountain News, Denver CO
November 1988 June 1991
Conducted deadline research and.helped develop electronic database for 250,000
circulation major metro. Wrote for sports, lifestyles, entertainment and commentary
departments.-
EDUCATION:
B.A., English (journalism minor), Metropolitan State College of Denver (1987-1991).
Computers: Proficiency in QuarkXPress,.Adobe Photoshop, and most word-processing
software for Macs, PCs. Some web design proficiency in Macromedia Dreamweaver.
MEMO:
TO: Vail Town Council
FROM: Sybill Navas, CSE Coordinator
RE: Suggested Interview Questions for Commission on Special Events Candidates
1. Why are you interested in serving on the Commission on Special Events?
2. What particular qualifications do you bring to the position?
3. Do Special Events impact the profitability of your business, either directly or
indirectly? If yes, please explain.
4. What role do you perceive Special Events play in Vail?
5. What do you understand the CSE's mission to be and do you support it?
6. What existing events would you identify as most valuable to the community and
what types of events should we be attempting to attract?
7. Is it important for the community that the Town of Vail allocates tax dollars
and/or in-kind resources to support Special Events or do you think that events
should "pay their own way?"
8. With regard to seeking out new events for the community, are there types of
events you feel are "appropriate" for Vail? Are there events that you feel are
"inappropriate," and if so, what are they?
9. Under what conditions would you feel it necessary to recuse yourself from
considering an event proposal? Are there any events currently funded by the CSE
from which you would need to recuse yourself considering?
10. Do you feel that Vail has too many events, too few events or about the right
number?
11. Do you think that the CSE has done a good job of managing the calendar and
variety of Special Events and do you have any specific ideas as to how you would
improve the effectiveness of the CSE?
12. Do you feel there is a need for additional event venues within the Town? If yes,
what suggestions do you have?
13. What is your favorite event? Least favorite??
PLANNING AND ENVIRONMENTAL COMMISSION
September 8, 2008 -
1:00pm
TOWN COUNCIL CHAMBERS / PUBLIC WELCOME
75 S. Frontage Road - Vail, Colorado, 81657
MEMBERS PRESENT
Bill Pierce
Rollie Kjesbo
Michael Kurz
Susie Tjossem
Scott Proper.
David Viele
MEMBERS ABSENT
Sarah Robinson-Paladino
Trainina - Roles & Resaonsibilities (Lunch will be served)
12:00 PM
There was a discussion with the PEC regarding the Commissions roles and responsibilities in the
review and approval processes. The differences between the quasi judicial-and quasi-legislative
roles were discussed.
Two items from the previous PEC hearing were discussed. The Employee. Housing Strategic Plan
and the Chamonix temporary parking lot from the previous hearing were discussed.
Commissioner Viele stated for the record that based upon the. criteria and findings within the Town's
adopted Zoning Regulations, a private developer would not have.gotten the temporary parking lot
approved by the PEC or TC_which is why he made a motion to deny the Chamonix parking lot. He
did apologize for his poor choice of words with, regard to the proposal.
There was some clarification made about the misleading headlines with regard to the Lionshead
Parking Structure. While the paper identified an approval of the Lionshead Parking Structure it was
not an approval of the project, but only one small step towards the project moving forward.. In this
instance the Town Council is only acting as the property owner and not the reviewing authority.
Commissioner Pierce suggested in the case of the Chamonix temporary parking lot the need for the
Town to hold itself accountable to the same standards and review criteria.
There was a concern by the Commissioners that if the Town Council had concerns that the Town
Council should have handled them differently, possibly between the PEC Chair and Vice-Chair and
the Mayor and Mayor Pro-tem. The Commission did not feel that airing of concerns with the
members not present and in a public forum was the best way of addressing the situatiion.
Commissioner Tjossem asked why Staff did not intervene to inform Greg Hall that another process
should have been followed with regard to the temporary Chamonix parking.
Discussion amongst the Commissioners ensued regarding why the Planning and Environmental
Commission was hearing a proposal on August 25, 2008, for a solution that would need to be
implemented in 30 days or less? People knew this issue was coming why was it not' brought into the
process sooner.
The Commissioners suggested that a joint meeting with the Town Council may be necessary with
very clear points and topics -for discussion. Such as parking,' master plans, employee housing, Land
Page 1
use regulations, review process, etc. As an interim step, the PEC Chairman is. going to contact the
Mayor to discuss some options for improved communications in greater detail.
George Ruther suggested that he be allowed to think about how to improve communications
between the two groups and what topics should be included. He concluded that Staff can always be
contacted to clarify roles and responsibilities.
10 Minutes
A request for a final review of a major exterior alteration, pursuant to, Section 12-711-7, Major'
Exterior Alterations or Modifications, Vail. Town Code, to allow for the construction of a dwelling
unit at the Lionshead Inn; located at 705 West Lionshead Circle/Lot 1, Block 2, Vail Lionshead
Filing 3, and setting forth details in regard thereto. (PEC080050)
Applicant: Lionshead Inn, LLC, represented by Mauriello Planning Group
Planner. Bill Gibson
ACTION: Approved with condition(s)
MOTION: Kjesbo SECOND: Kurz VOTE: 6-0-0
CONDITION(S):
1. Approval of thi&major exterior alteration for the construction, of a new dwelling unit at
the Lionshead Inn, located at 705 West Lionshead Circle/Part of Lot 1, Block 2, Vail
Lionshead Filing 3, shall be valid until December 31, 2010, or until the demolition of
the Lionshead Inn building, whichever occurs first.
2. If the Lionshead Inn building has not been demolished or otherwise rendered un-
occupied, the Applicant shall revert the new dwelling unit back into three
accommodations as originally configured prior to December 31, 2010.
3. The new dwelling unit at the Lionshead Inn, located at 705 West Lionshead Circle/Part
of Lot 1, Block 2, Vail Lionshead Filing 3, shall not function as a business office (i.e.
real estate office)."
Warren Campbell gave a presentation per the Staff memorandum. He explained that this was
the same request as was previously granted and had since expired. This was to allow for the
conversion of three hotels rooms on the fourth floor of the Lionshead Inn to serve as a model
room for the eventual Fogata project.
Allison Kent, the applicant's representative,, stated they were available to answer any questions.
There was no public comment.
The Commissioners expressed their support of.the application.
60 Minutes
2. A request for a work session for review of a major exterior alteration, pursuant to Section 12-7H-
7, Exterior. Alterations or Modifications; and requests for conditional use permits, pursuant to
Section 12-71-1-2, Permitted and Conditional Uses, Basement or Garden Level; Section.12-71-1-3,
Permitted and Conditional Uses, First Floor or Street Level; 12-71-1-4, Permitted and Conditional
Uses; Second Floor and Above, Vail Town Code, to allow for the redevelopment of the
Evergreen Lodge, with dwelling units, accommodation units, employee housing units, conference
facilities and meeting rooms on the basement level, multi-family dwelling units on the first floor,
and an eating and drinking establishment on the second floor, located at 250 South Frontage
Road West/Lot 2, Block 1, Vail Lionshead Filing 2. (PEC080033)
Applicant: HCT Development, represented by TJ Brink
Planner. Rachel Friede
Page 2
.1
ACTION: Table to September 22, 2008
MOTION: Kjesbo SECOND: Viele VOTE: 6-0-0
5 Minutes
3. A request for a final recommendation to the Vail Town Council on a major amendment to Special
Development District No. 6, Village Inn Plaza, pursuant to Article.12-9A, Special Development
District, Vail Town Code, to allow for the conversion of an existing office and retail space to
residential for an addition to an existing dwelling unit, located at 68 Meadow Drive (Village Inn
Plaza)/Lot O, Block 5D, Vail Village Filing 1, and setting forth details in regard thereto.
(PEC080049)
Applicant: Village Inn Plaza, represented by Colorado Company
Planner: Nicole Peterson
ACTION: Table to September 22,2008-
MOTION: Kjesbo SECOND: Viele VOTE: 6-0-0
4. A request for a final recommendation to the Vail Town Council, pursuant to Chapter VIII, Section
3, Amendment Process, Land use Plan, for the adoption of a new land use category and
amendments to the official Land Use Plan Map to allow for the designation of the "Chamonix
Master Plan" area; a request for a final recommendation to the Vail Town Council for a zone
district boundary amendment, pursuant Section 12-3-7, Amendment, Vail Town Code, to rezone
Parcel A of Tract D, Vail Das Shone, Filing No. 1, from Commercial Core III (CC3) District to
Housing (H) District, and to rezone Parcel B of Tract D, Vail Das Shone, Filing No. 1, from Two-
Family Primary/Secondary Residential (PS) District to Housing (H) District; and a request for a
final recommendation to the Vail Town Council, pursuant to Chapter 12-61-11, Development
Plan Required, Vail Town Code, to allow for the adoption of a development plan for the
construction of a fire station and employee housing on the "Chamonix Site°, located at 2399,
North Frontage Road West, Parcel(s) A and B, Vail Das Shone, Tract D, Filing No. 1, and setting
forth details in regard thereto. (PEC080037, PEC080040, PEC080041)
Applicant: Town of Vail, represented by Stan Clauson Associates, Inc.
Planner: Warren Campbell
ACTION: Withdrawn
5. A request for a recommendation to the Vail Town Council on a proposed major amendment to
Special Development District No. 39, Crossroads, pursuant: to . Article 12-9(A), Special
Development District, Vail Town Code, to allow for the enclosure of a pedestrian pathway
through the southwest wing of the approved structure and creation of commercial square
footage; located at 141 and 143 Meadow Drive/Lot P, Block 5D, Vail Village Filing 1, and setting
forth details in regard thereto. (PEC080034)
Applicant: Solaris LLC, represented by Mauriello Planning Group, LLC
Planner: Warren Campbell
ACTION: Withdrawn
6. Approval of August 25, 2008 minutes
MOTION: Kurz SECOND: Viele VOTE: 5-0-1 (Kjesbo recused)
7. Information Update.
8. Adjournment
MOTION: Viele
SECOND: Kjesbo VOTE: 6-0-0
The applications and information about the proposals are available for public inspection during regular
office hours at the Town of Vail Community Development Department, 75-South Frontage Road. The
public is invited to attend the project orientation and the site visits that precede the public hearing in the
Town of Vail Community Development Department. Please call (970) 479-2138 for additional
Page 3
information:
Sign language interpretation is available upon request with 24-hour notification. `Please call (970)
479-2356,.Telephone for the. Hearing Impaired,. for information.
Community DevelopmentrDepartment
Published September 5,.2008, in the Vail Daily.
Page 4
"VAILPROJECT ORIENTATION
MEMBERS PRESENT
Mike Dantas
Tom DuBois
Pete Dunning
Brian Gillette
Libby Plante
DESIGN REVIEW BOARD AGENDA
PUBLIC MEETING .
September. 03, 2008
Council Chambers
75 S. Frontage Road'- Vail, Colorado, 81657
MEMBERS ABSENT
SITE VISITS
1. Scheidegger Residence, 2436 Chamonix Lane
2. Vail Cascade, 1300 Westhaven Drive
3. Apollo Park, 442 South Frontage Road East
PUBLIC HEARING - TOWN COUNCIL CHAMBERS
1. Apollo Park DRB080355
Final review of a minor exterior alteration (fence)
442 South Frontage Road East/Lot D, Vail Village Filing 5
Applicant:. Lunar Vail, LLC, represented by Split Rail Fence Co
ACTION: Tabled to September 17, 2008
MOTION: DuBois SECOND: Gillette VOTE: 5-0-0
2. Scheidegger Residence DRB080346
Final review of a minor exterior alteration (fence)
2436 Chamonix Lane/Lot 1, Block B, Vail Das Schone Filing 1
Applicant` Karin Scheidegger
ACTION: Tabled to September 17, 2008
MOTION: Plante SECOND: Dantas VOTE: 5-0-0
3. Vail Cascade Resort & Spa DRB080365
Final review of a sign application (sign program)
1300 Westhaven Drive/Cascade Village
Applicant: L-O Vail Holding Inc., represented by Plyman & Associates
ACTION: Approved
MOTION: Dantas SECOND: Plante VOTE: 5-0-04. Howenstine Residence DRB080305
Final review of a new single family residence & EHU
2754 S: Frontage Road West/Lot B, Stephens Subdivision
Applicant: Lorraine Howenstine, represented by Beth Levine, Architect
ACTION: Approved with condition(s)
MOTION: Dantas SECOND: DuBois VOTE: 5-0-0
1
1:30pm
2:00pm
'3:00pm
Rachel
Bill
Nicole
Bill
CONDITION(S):
1. The applicant shall plant six evergreen trees a minimum .of six feet in height which, shall be
shown on the plans submitted in conjunction with the building, permit
STAFF. APPROVALS
Bighorn Townhomes DRB080303
Final review of a minor exterior alteration (re-roof)
4708 & 4718 Meadow Drive/Bighorn Townhouses Subdivision
Applicant:. Bighorn Townhomes,.represented by SRE Builders
Meyer Residence DRB080323
Final review of a minor exterior alteration (landscaping)
813 Potato Patch Drive/Lot 1, Block 1, Vail Potato Patch
Applicant: Luc Meyer
Fritz Residence DRB080330
Final review of an addition (kitchen remodel)
3094 Booth Falls Road #7/Lot 1, Block 2, Vail Village 12th Filing
Applicant: Susan Fritz
Rachel
Rachel
Bill
Bartlit. Residence DRB080331 Bill
Final review of a minor exterior alteration (windows, door)
778 Potato Patch Drive/Lot 18, Block 1, Vail Potato Patch
Applicant: Fred Bartlit, represented by Michael Warmenhoven
Vail Conoco DRB080333 Nicole
Final review of a wildlife_resistant trash enclosure
2154 South Frontage Road West/Unplatted West Vail
Applicant: Mary Caster
Vail Mountain View Residences DRB080334 Warren
Final review of changes to approved plans (site, landscaping)
442.South Frontage Road West/
Applicant: Ron Byrne, represented by Ron Constein
Fischer Residence DRB080337 Bill
Final review of changes to approved plans (walls)
3796 Lupine Drive, Unit B/Lot 7, Bighorn Second Addition
Applicant: Steve Fischer, represented by John Martin
Marsico Residence DRB080354 . Warren
Final review of a minor exterior alteration (re-roof)
362 Mill Creek Circle/Lot 9, Block 1, Vail Village Filing 1
Applicant: Thomas Marsico, represented by Scully Building Corp .
First Bank DRB080358 Nicole
Final review of a minor exterior alteration (re-paint)
17 Vail Road/Lot 1, Vail Das Schone Filing 1
Applicant: First Bank of Vail, represented by 'Graeser's Painting
2
Rosenbach Residence DRB080359
Final review of changes to approved plans (landscaping)
107 Rockledge Road/Lot 7, Block 7, Vail Village Filing 1
Applicant: Susan & Gary Rosenbach, represented by Ric Fields
Hatch Residence DRB080361 .
Final review of a minor exterior alteration (re-roof)
1753 Shasta Place/Lot 11; Vail Village West Filing 2
Applicant: Scott & Lisa Hatch, represented by Compass Construction
Connolly Residence DRB080362
Final review of a minor exterior alteration (re-roof)
2935 Bald Mountain Road/Lot 23, Block 1, Vail Village Filing 13
Applicant: Stephen Connolly, represented.by CH Roofing
Williams Residence DRB080363
Final review of a minor exterior alteration (skylights)
302 Mill Creek Circle/Lot 7, Block 1, Vail Village Filing 5
Applicant: W. Grant Williams, represented by Snowdon & Hopkins Architects
Middle Creek DRB080364
Final review of changes to approved plans (antennas)
145 North Frontage Road/Lot 1,-Middle Creek
Applicant: Colton Hanson
Field Residence DR13080366
Final review of a minor exterior alteration (windows and doors)
586 Forest Road/Lot 3, Block 1, Vail Village Filing 6
Applicant: Lawrence Field, represented by Woodstone Homes Inc
Deibel Residence_ DRB080367
Final review of a minor exterior alteration (windows and deck)
1850 Lionsridge Loop/Lot 15, Dauphinais-Mosely Filing 1
Applicant: Worldview, represented by Atlas Construction
Chantler/Massey.Residence DRB080368
Final review of changes to approved plans (extension of DRB070377)
4840 Meadow Drive/Lot 1, Block 6, Bighorn Subdivision Addition 5
Applicant: Atlas Construction
Ouimette Residence DRB080369
Final review of a minor exterior alteration (re-roof)
1850 South Frontage Road/Lot 5E, Alpine Creek Townhouses
Applicant: Robyn Ouimette, represented by Red Eagle Construction
Deverich Residence DRB080370
Final review of a minor exterior alteration (re-paint)
1760 Alpine Drive/Lot 4, Vail Village West Filing 1
Applicant: Jacqueline Deverich
Bill
Rachel
Jeri
Bill
Nicole
Bill
Warren
Bill
Rachel_
Warren
3
Griffinger Residence DRB080371
Final review of a minor exterior alteration (deck)
1630 Sunburst Drive #16/Sunburst Filing 3
Applicant: Michael & Jane Griffinger, represented by Jeff Lutz Builders
Hein Residence DRB080372
Final review of a minor exterior alteration (deck)
1620 Sunburst Drive #22/ Sunburst Filing 3
Applicant: Marvin Hein, represented by Jeff Lutz Builders
Cross Residence DRB080376
Final review of a minor exterior alteration (landscaping)
1190 Casolar Drive, Unit B/Lot 6A, Casolar Vail'
Applicant: Jerry & Sharon Cross, represented by Jamie McCluskie
Biszantz Residence DRB080378
Final 'revieW of a minor exterior alteration (landscaping)
670 Forest Road/Lot 7, Block 1, Vail Village Filing 6
Applicant: Betty Biszantz
Cloudman Residence DRB080319
Final review of a minor exterior alteration (landscaping)
5110 Grouse Lane/Lot 8A, Vail Meadows Filing 1
Applicant: The Cloudmans
Swearingen/Dennis Residence DRB080381
Final review of a minor exterior alteration (re-roof)
5030 Prima Court (Sundial)/Unplatted
Applicant: Bob Swearingen
Cahill Residence DRB080382
Final review of a minor exterior alteration (landscaping)
2855 Snowbery Drive/Lot 6, Block 9, Vail Intermountain
Applicant: Michelle Cahill
Nicole-
Nicole
Warren
Jeri
'Jeri
Warren
Jeri
The applications and information about the proposals are available for public inspection during regular office
hours in the project planner's office, located at the Town of Vail Community Development Department, 75
South Frontage Road. Please call 479-2138 for information.
Sign language interpretation available upon request with 24 hour notification. Please call 479-2356,
Telephone for the Hearing Impaired, for information.
4
MEMORANDUM
To: Town Council and Stan Zemler
From: Pam Brandmeyer, Judy Camp, Krista Miller
Date: September 11, 2008
Subject: Municipal Employee Home Ownership Program
On August 51, Council discussed a proposal to replace the town's current down
payment assistance program for municipal employees with a state-of-the-art
Employee Home Ownership. Program (EHOP). This memo responds to
questions raised and comments made at that time and :provides a modified
recommendation at the end of this memo.
"The Vallev Home Store" --the Countv's one-stop shop for affordable housinq '
Staff contacted Don Cohen and the Home Store and learned the following.
Since the Home Store is just getting set up with office space: and beginning to
.define services to be "the one-stop-shop for affordable housing" in Eagle County,
a full range of services has yet to be defined. The Home- Store does- have
several services that can- benefit TOV employees once the offices are set up.
These include education on topics such as financial planning for home
ownership (the 1s' time home buyer class) and understanding deed restrictions.
In addition, the Home Store aims to be a central location to assist home
purchasers in finding appropriate real estate by .working closely with :both the
deed restricted properties and the valley's real estate .agents. The Home Store
is not set up as a financial institution that is able to provide the services outlined
in the EHOP proposal, however may prove to be an additional resource for our
employees.
After reviewing the Eagle County's newest one-stop shop for housing, staff
continues to recommend that Funding Partners, Inc., be the primary
administrator for the Town of Vail's EHOP. Funding 'Partners has the key
qualifications of being a certified financial institution, hands-on, experience -in
identical programs, positive referrals on their' service delivery, and remains the
administrator for Eagle County's housing loan programs.
.Forgiveness-of Eauitv Share
The original proposal included a provision to forgive. the.equity share component
if a loan was repaid in three years. This feature was meant to provide an
incentive for employees to repay loans more quickly and put funds back into the
program for others. Council asked staff to instead look at a forgiveness option
geared toward retention with forgiveness after a longer,period, possible fifteen
years.
Staff agrees the three-year forgiveness feature does not contribute to the
objectives of the program and is no- longer a partof the recommended program
design. After considering forgiveness of. equity share as a retention tool, staff
further recommends. against including any. forgiveness of the equity share.
- 1 -
While the goals of the program include making a positive impact on employee
retention, staff recommends exploring other retention tools that can be applied
across.our employment base instead of forgiving large dollars in a housing
program. Even without forgiveness, the program will make a positive impact on
retention by reducing the number of employees who leave due to the lack of
affordable housing in our area.
With the large sum ofequity dollars that would be forgiven, it is difficult to.find a
practical solution that makes, good business sense. Considerable dollars would
benefit only a handful of the numerous employees that provide excellent service
to the Town over many years.
A key feature of a basic equity share program is that it eventually becomes self-
funding with loan repayments (principal plus equity share) providing an ongoing
source for new loans to help more employees become homeowners. Assuming
the equity share repayment is put back into the program, the town is able to keep
pace with the-housing market in terms of new loans available. Since the loans
are all assets, the only true cost of the program is if a default were to occur. A
program with a forgiveness component.will never become self-funding and will
not provide a return on the town's investment in the EHOP loan, portfolio (see
attached pro-forma). 'It bears a true cost to the town for the amount. of equity
forgiven.
Pro forma Backaround
The following background information is presented to add perspective to the
attached, pro forma illustrations.
The town at this time' has 231 full-time employees. An estimated 60 employees
or 26% currently live in Vail. Of those, ten full-time employees or less than 5% of
the all full-time municipal employees, live in deed-restricted employee housing.
Increasing the total. number of employees living in Vail to 30% of the municipal
employee base would. require nine more employees living in Vail. The municipal
Employee Housing Opportunity Program (EHOP) as proposed here includes
opportunities for employees to obtain home ownership in both deed-restricted
and non-deed restricted properties.
The town's current employee turnover rate is approximately 16% or 36
employees per year. This is about the same rate of turnover experienced prior to
implementation of the current down payment assistance program. When the
current program was put in place, turnover dropped to 8'/o due largely to -the
program. Returning to that level would be an aggressive target in the next few
years as a number of employees near retirement. A more reasonable turnover
target in the near term is 10% or 23 employees per year.
The EHOP is recommended by staff as one program to help with recruitment
-2-
vw"
.and retention of employees with a focus on employees living in Vail. No one
program will fully achieve the town's objectives and the EHOP should be
considered 'as just one tool along with such factors as: the quality of town jobs;
professional. development opportunities; salaries- and benefits; other housing
programs available to employees, etc. The alternatives presented below, are
targeted to help 16 employees or 7% of the current workforce annually. If annual
turnover reaches 10%, approximately 70% of replacement hires could be helped
by the program thereby supporting both recruitment and retention.
Pro Forma and Comparison of Alternatives
Three. alternatives- are illustrated in the attached -pro forma statements - a base
case; an equity share forgiveness alternative; ahd a buy-down alternative. All
three alternatives are targeted toward helping 16 employees per year with five of
them (just over 30%) obtaining homes in Vail and the remaining 11 obtaining
homes within the 50 mile Vail area. Within Vail, for the base case and equity
forgiveness scenarios, it is assumed one of the five employees would purchase a
property witha current price appreciation deed restriction and the remaining four
would purchase a market price home. In, the, buy-down, alternative, one
employee would purchase a currently deed-restricted home, one would place a
deed restriction on a market priced home, and the remaining three would
purchase market priced homes.
The base case program design is as follows:
Funding Partners acts as a third party administrator with all fees paid by the
bonrower and no cost to the town
program provides equity share loans for primary residences in Vail and the
surrounding 50 mile area
maximum loan in Vail is $100,000
maximum loan in Vail area (i.e., within 50 miles of Vail) is $50,000
- - maximum for deed-restricted; appreciation capped homes is 10% of
purchase price (note changed from 5% to 10% per 8/5/08 discussion)
- no payments for 15 years when entire principal becomes due
- a proportionate share of equity appreciation is returned to the Town of Vail at-
maturity or when the property is sold; refinanced, or no longer a primary
residence
- there is no interest involved and therefore no taxable benefit to the employee
The base case illustration assumes 5% average annual. increase in the town's
equity share and all loans plus the equity share are repaid after seven years -
the national average length: of time for mortgage loans to be outstanding. 'In
reality; some loans will be repaid sooner and. some later. Just under one. million
dollars per year for seven years would be needed to fully fund the program as
illustrated. In the eighth year, the program becomes self-funding from loan
repayments. If loans-are repaid earlier, the program will become . self-funded
sooner. When the program- becomes self-funded,, the maximum loan .amounts
can be increased to account for increases in the market value of homes in the
-3-
area.
The equity share forgiveness alternative modifies. the base case program to
provide a.;retention incentive to employees. The attached pro forma assumes
borrowers who remain employees for the full 15-year term of their loan and 'do
not sell, refinance, or stop using the property as their. primary_ residence will be
required td repay principal only at that time.. The ,equity share due. to. the town
under the base case will -be forgiven. Forgiveness of the equity share will result
in a taxable benefit to the employee. The attached pro forma assumes
approximately 50% of employees would remain eligible for the equity share
forgiveness option of the program. The 100% .forgiveness after 15 years is- a
simple way to illustrate the potential impact of a forgiveness program. Other
alternatives, such as less than 100% forgiveness and/or phased forgiveness
based on. years of service,. could be developed; however; the basic conclusions
reached from looking at the pro forma would not change.
The . equity share forgiveness program as illustrated is significantly more
expensive than the base case and a forgiveness program never becomes self-
funding. As illustrated, expenditures for the program are essentially the same in
years.one through seven. In year eight, however, because of. the incentive to
hold loans to maturity, only half of the employees who took.loans. in 2009 are
assumed to pay them back. Almost $700,000 is needed to fund the equity
forgiveness program annually beginning in. year eight while. the base case
requires no additional funding. Over the fifteen years illustrated; the equity share
forgiveness alternative ,costs $5.3 million more than the base case. This cost is
all due. to the forgiveness component and will never be repaid to the town or
available to loan to other employees.
The buy-down .alternative modifies the base case to provide an opportunity for
an employee purchasing in Vail to choose between an equity share loan or a buy-
down. In the buy-down scenario, the town would pay an amount equal. to the
housing fee-in-lieu for one bed in exchange for the employee placing a price
appreciation deed restriction on his/her new home. For example, if an employee
.chooses to deed restrict a home with a market value of $566,464, the town pays
$166,464 (the current fee-in-lieu per bed) and the employee's purchase price for
the home is $400,000. Annual appreciation omthe $400,000 cost is capped at
3%.
The benefit of the buy-down alternative. to the town is an increase. in deed-
restricted housing inventory available for municipal employees.. And, since the
property is selected by an employee, the town is, assured of its marketability to
municipal employees. The benefit to the employee is a' larger contribution
(currently $166,464 compared with $100,000 loan) with no loan to be repaid and
no equity to be shared.. The disadvantage from the employee's perspective .is
the 3% cap on annual appreciation of the property.
-4-
The buy-down alternative assuming one buy-down per year requires $66,464
more funding than -the base case in the first year and an estimated $2.3 million
over the fifteen years illustrated.
STAFF RECOMMENDATION
Staff continues to ; recorrimend replacing the current down payment assistance
program with an equity share EHOP using Funding Partners, Inc., as a third-
party- administrator. Recommended modifications to the program as presented
in August include the following:
a Direct employees to "The Valley Home Store" for first time home buyers'
classes and other -educational opportunities as well as assistance in
finding appropriate real estate
® Eliminate any forgiveness of equity sharing from the program
® Provide .a buy-down alternative
The proposed EHOP can make a significant impact on the town's recruitment
and retention of employees in the current competitive employment market and
keep more employees living in Vail. As proposed, the EHOP is an investment in
a loan portfolio earning a return that keeps pace with the area real estate market
and becomes self-funding. Although the illustrations presented here show
approximately $1 million in funding each year for seven years, the, program could
be modified for a lower amount and/or funded for a shorter period. Staff
encourages Council to consider a funding allocation for this program, in the 2009
budget.
-5-
Employee.Home Ownership Program Pro Forma
With Equity Share Forgiveness
2009 2010 2011 .2012 2013. 2014 2015. 2016 2017 2018 2019
Demographics of Program
Target Number of Employees to be Helped 16 16 16 16- 16 16 16 16 16 16 16
Target per cant in Vail - 30% 30% 30% 30% -30% 30% 30% 30% 30% 30% 30%
Number to be helped In Vail 5 5 5 5 5 5 5 5 5 5 5
Number to be helped with Currently Deed Restricted Homes 1 1 1 1 1 1 1 1 1 1 1
Number to be helped with Buy-Downs of Newly Deed-Restricted Proper 0 0 0 0 0 0 0 0 0 0 0
Number to be Helped with Market Rate Properties 4 4 4 4 4 4 4 4 4 4 4
In Area
Number to be Helped In Area, Outside Vail 11 11 11 11 11 11 11 11 11 11 11
Cost of Program
In Vail
Currently Deed Restricted
Number of Loans 1 1 1 1 1 1 1 1 1 1 1
Estimated Loan Value -10% purchase Price 30,000 31,000 32.000 33.000 34,000 35,000 36.000 37,000 38,100 39,000 40.000 _
Loans on Currently Dead Restricted in Vail 30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000 38,000 39,000 40,000
Buy--0owns of Newly Deed-Restricted Pmper0as .-
Number of Buy-Downs - -
Estimate Cost to Buy Down per Housing Fee4n-lieu 172,000 181,000 190,000 200,000 210,000 221 „000 232,000 244,000 256.000 269.000 282,000
Cost of Newly Deed Restricted Units in Vail - - - - - - - - - - -
Market Price Properties
Number of Loans 4 4 4 4 4 4 . 4 4 4 4 4
Maximum Loan Amount 100,000 100,000 100.000 100.000 100,000 100,000 100,000 141,000 141,000 141,000 141,000
Loans on Market Price Properties 400,000 400.000 400,000 410,000 400,000 400,000 400,000 564,000 564,000 564,000 564.000
Total Disbursements for Em, h ..:.:., In Vail .430.000 431.000 432.000 433.000 434.000 435.000 438,000 601,000 602.000 603.000 604.000
In Area
Market Price Properties
Number of Loans 11 11 11 11 11 11 11 _ _ 11 11 11 11
Maximum Loan Amount 50,000 50,000 50,000 50,000 50,000 5000 50,000 70,500 70,560 70,500 70.500-
Total Disbursements for Employees in Area, not In Vail 550.000 550.000 550,000 550,000 550.000 550,000 550.000 775,500 775400 775,500 175,500
Annual Program Disbursements 980.000 981,000 982,000 983.000 984,000 905,000 986,000 1,376,500 1,377.500 1.378.500 1 379,500
_
Repayments.
Principal Repaid After 7 Years on Average 490,000 490,500 491,000 491,500
Equity Share Repaid,with Principal - 5% annual appreciation 199,479 199,683 199,886 200,090
Principal Repaid After 15 Years w/ forgiveness of equity share
Total Estimated Repayments - - - - - 689A79 690.183 _690,888_ 691.590
Annual Funding Needed From Outside the Program 980,000' 981.000 982,000 983,000 984.000 -9K000 986,000 687,021 687.317 687.614 687,910
Cumulathre Funding Needed from Outside the Program 1,961,000 2,943;000 3,926,000 4,910,000 5,895,000 6,881,000 7,568,021 8,255,336 8,942,952 9,630,862
EHOP Pro Forma EHOP w f jve ???
j
Employee Home Ownershlp Program Pro Forma
With Equlty,Share Forgiveness
Demographics of Program
Target Number of Employees to be Helped
Target per cent in Vail
Number to be helped in Vail
Number to be helped with Currently Deed Restricted Homes
Number lobe helped with Buy-Downs of Newly DeedAestricted Proper
Number to be Helped with Market Rate Properties
In Area
Number to be Helped in Area, Outside Vail
Cost of Program
In Vail -
Qnrently Deed Restricted
Number.of Loans
Estimated Loan Value -10% purchase Price
Loans on Currently Deed Restricted in Vail
Buy-dooms of Newly.Deed-Restflcled Properties
Number•of.Buy-Downs
Estimate Cosf t0 Buy Down per Housing Fee-in-Lieu
Cost of Newly Deed Restdcted Units In Vail
Market Price Properties
Number of Loans
Maximum Loan Amount
Loans On Market Price Properties
Total Disbursements for Employees In Vail
In Area
Market Price Pn, w ::.
Number of Loans
Maximum Loan Amount
Total DlWmrs for Employees in Area, not in Vail
Annual Program Disbursements
Repayments
Principal Repaid After 7 Years on Average
Equity Share Repaid with Principal - 5% annual appreciation
Principal Repaid After 15 Years w/ forgiveness of equity share
Total Estimated Repayments
Annual Funding Needed From Outside the Program
Cumulative Funding Needed from Outside the Program .
2020 2021 2022 2023
16 16 16 16
30% 30% 30% 30%
5 5 5 5
1 1 1 1
0 0 0 0
4 4 4 4
11 11 11 11
1 1 1 1
41,000 42,000 43.000 44,000
41,000 42,000 43,000 44,000
296,000 311.000 327,000 343,000
4 4 4 4
141,000 141,000 141.000 198,000
564,000 564,000 564,000 792.000
805.000 606,900 607.000 836.000
11 11 11 11.
70,500 70,500 70,500 _ 99,000 ,
775.500 779:500 77500 1,089.000
1,380,500 1,381,500 1.382.500 1,925,000
492,000 492,500 493,000 688;250
200,293 200,497 200,701 280,187
490,000
692,293 692,997 693,701 1L458,437
686.207 688,503 688.799 '46&563
10,319.060 11;007,572 111,696,3711 12;16034
EHOP Pro Forma EHOP w rorgWe
MEMORANDUM
To: Town Council
From: Kathleen Halloran
Date: September 11 2008.
Subj ect: Supplemental At,r..,priation
On Tuesday evening you will be asked to- approve the first reading of Ordinance No. 19 making
supplemental ayr..,y..ations and adjustments to the 2008 budget. We have also set aside time for
discussion in the afternoon work session and are attaching the following information for your review:
e Second Supplemental Appropriation Request of 2008
s Statements of Revenue; Expenditure, and Changes in Fund Balance including the second
supplemental
Ordinance No. 19
6 Memo from Public Works regarding r,.; = --house proposal _
General Fund
We are recommending budget adjustments to increase revenue only where year-to-date 'receipts, are
favorable to the original budget such as construction permit fees ($328K), street cut fees ($105K), road
and bridge ($260K), parking fines ($44K) and k,..,Ferty tax collections ($450K). Per Council's request,
the property tax collections over the 2008 budgeted amount will be transferred to the Capital Projects
Fund, net-of treasurer fees ($9K).
Adjust-ents to expenditures include: out-of-cycle contributions of $58K (apy..,ved on June, 17); a
reduction of contributions by $150K with the cancellation of the International Cycle Classic, a pass
through of expenses for the NW Incident Management Team's deployment to Alamosa; and additional
CASTA dues relating to our participation in a transit lobbyist group that secured federal grant money for
a new transit center.
There were several adjustments t& staffing and overtime accounts, specifically for Fire, Transit and SL .:;,'
Maintenance. The Fire Department overtime account has . required budget supplements for the past
several years due to staffing -challenges and short term disability circumstances. The same challenges
were presented in 2008,.and the vacant schedules were filled with personnel qualified for those positions,
resulting. in overtime at higher pay rates than if a resident student was used to fill the slot. Looking
forward, the 2009. budget will reflect a more accurate overtime analysis. There are two reasons for.
staffing and overtime increases for the Transit department: losing our H2B Visa (returning) employees
has resulted in an increase in pay rates (to help recruit bus drivers), additional staff time for training
(approximately 80 hours per new driver) and a potential staffing shortage this winter, charter services
created some overtime expense but is offset by additional revenue. The street maintenance crews have
additional overtime a.,... the heavy snowfall this past spring.
Snowfall also accounts for overages in both the cinders and contract labor accounts. The contract labor
line item includes contracts for snow removal (both shoveling and hauling). These costs were somewhat
offset by Vail Resort's reimbursement for snow, removal around Arrabelle (the incomplete portion of
snowmelt last winter).
Other changes are outlined in the attached spreadsheet.
080902 2nd Supp - 1 -
Capital Proiects Fund
Increases to revenue include property tax collections totaling $441K (transferred from the General Fund),
Use Tax collections of $500K and Employee Housing Fee-iii-Lieu revenue of $418K. Other revenue
adjustments relate to reimbursed project expenses and' are offset.by those expenditures: County Grant of
$267K and Colorado Department of Transportation (CDOT) reimbursement of $95K offset the cost to
install fiber cable along I-70 (total cost of $909K); Four Seasons, Solaris and Lionsridge Loop
homeowners are reimbursing the town for costs relating to streetscape projects and underground utilities;
the Dispatch Fund is contributing $75K to be used toward the new generator in the municipal building.
Other adjustments to expenditures include the delay of purchasing a fire truck for the new West Vail Fire
Station ($520K) until plans for that station are finalized, an emergency repair to the heating system at
Donovan Pavilion ($13K) and a reduction of $35K in debt service payments due to refinancing of the
town's 1998A bonds.
Real Estate Transfer Tax (RETT) Fund
There were no adjustments to tax collection revenue with a $1M reduction taken earlier this year and
current collections exceeding prior year by 39%.
There were three. projects, that had significant savings: Katsos Ranch bike path ($200K), Meadow Drive
streetscape ($200K), and legal fees for Vail Recreation District agreements ($99K).
Other adjustments to expenditures include $270K (for a total project cost of $3701C) to expand the size
and functionality of a new greenhouse in order to acc.,......odate the increased volume of flowers from
streetscape additions and a $20K off-cycle contribution awarded to Betty Ford Alpine Gardens to be used
toward the replacement of three bridges.
Dispatch Services Fund
The E911 Board has contributed $25K to be used for the new emergency generator at the municipal
building (which will service both the Dispatch center and other critical rn»nicipal operations). . By
utilizing another $50K of the Dispatch Services fund balance,, a total of $75K will be transferred to the
Capital Projects Fund to contribute toward that project. Other adjustments include the recognition of
investment income ($12K) and a budget adjustment for interagency charges ($93K).
Health Insurance Fund
Revenue was increased by ak,r..,ximately $99.OK to reflect reimbursements from our stop loss carrier.
Although the town is self-insured, we purchase stop loss insurance to cover claims that cost more .than
$75K (per, claim). Claims expenditures are cu.,.?,,.dy under budget, and no adjustment is required.
Heaw Eauinment Fund
Fuel expense has been increased by $212K to reflect both significant price increases as well as increased
usage fiv... the heavy snowfall this spring (additional trips with the snow plows and removal equipment).
Otherwise, the only change to this farad is an accounting adjustment to reflect both the expense and
reimbursement for warranty work completed on a fire truck.
Debt Service Fund
These adjustments reflect the refinancing, of the town's 1998A bonds.
080962 2nd Supp -2-
Proposed Supplemental Appropriation&an&Budget Adjustments.#2 of 2008
Description
Revenue -Expenditure
Increase. Increase
'(Decrease) (Decrease)
Reason
General Fund
Property Tax Revenue
County Treasurer Fees
Transfer Property Tax to Capital Fund
Construction permit fees
Street Cut Fees
County Road & Bridge Tax
Parking Fines
Off-cycle Contributions
Contributions
Contributions
Other State Revenue
Professional Fees
Salary Expense
Travel
Professional Fees Transit
Overtime - Fire Dept
Salary Expense - Fire
Charter Revenue
Seasonal Salary Expense - Transit
Overtime - Transit
Benefits - Transit
Overtime - Street Maintenance
Contract Labor
Cinders
Shared Costs / Reimbursement
Library Revenue.
Library.Computer system upgrade
Shared Costs / Reimbursement
Seasonal salary expense
Legal-Fees
Volvo sponsorship of host program
Volvo sponsorship of host program
Subtotal General Fund
450,000 Incrementaliproperty; tax collections expected
9,000 AddT fees related to the incremental $450K of property tax collections expected
441,000 Transfer perCouncil to Capital Projects fund (net of treasurer fees $9K)
328,000 Current overage
105,000 Based on current overage
260,670 Based on current overage
44,000 Based on current overage; increased enforcement of parking structures
58,000 Per Council June 17; VCBA $39K; VCBA $4K; Valley Home Source $15K
(150,000) Cancellation of bike race
10,000 Eagle Valley Child Care playground improvement "rollover" from 2007 budget as approved by Council on June 3rd, 2008
25;416 NW Incident Management Team deployment to Alamosa, CO - reimbursement
21,540 NW Incident Management Team deployment to Alamosa, CO - pass thru to other agencies
3,728 NW Incident Management Team deployment to Alamosa, CO - offsetting TOV staff costs
148 NW Incident Management Team deployment to Alamosa, CO - offsetting TOV staff costs
30,000 Additional CASTA dues for 2008 related to procurement of federal transit grant
66,500 Change in policy to staff with personnel qualified for each scheduled position; Staffing challenges and short-term disability as well
18,000 Salary adjustments / staff reorganization
13,000 Current overage from original budget (total revenue $99K)
68,100 Training time required for new drivers (replacing our returning Australia staff) and pay rate increase
27,000 Expected winter shortage; Charter service coverage; ShoU-staffed by 3 this past spring season
6,500 Related to increases:in salary
25,000 Spring snow much higher than average year; TOV plow drivers additional time
35,000 Snow shoveling:contract and hauling - additional use from spring, snowfall
13,000 Spring snow much higher than average year
27,535 Vail Resort's reimbursement to TOV'for snow removal around Arrabelle
6,322 Unbudgeted revenue from library systems rebate
3,700 System upgrade for, library software
38,547 Seasonal police officer participating. in grant-funded drug task force headquartered in Glenwood Springs
38,547 Seasonal,police officer participating in grant-funded drug task force headquartered in Glenwood Springs
10,000 Ordinance lifigatiowand other cases
(15,500) Transfer funds from Eco Dev dept to HR for Host program sponsorship
10,500 Transfer of funds to HR•for Host program sponsorship
1,298;490 729,764
SuDo 2 of 2008 3 9/10/2008 3:17 PM
Proposed Supplemental Appropriations;and8udget Adjustments..#2 of 2008
Description
Capital Projects Fund
Property Tax Transfer from Gen'1 Fund
Property Tax Increment - Reserved
Use Tax
Revenue Expenditure
Increase Increase
(Decrease). (Decrease)
Reason
Employee Housing Fee-in-Lieu
County Grant
Shared Costs / Reimbursement
I-70 Fiber Project - Prof Fees
Shared Costs / Reimbursement
Shared Costs / Reimbursement
E. Meadow Drive Streetscape
Shared Costs / Reimbursement
Construction Services
Transfer from Dispatch Fund
Capital outlay - equipment
Shared Costs / Reimbursement
LH Parking Structure - Prof Fees
Housing Strategic Plan
TOV Strategic Plan
Fire Truck Purchase
Donovan Park Pavilion
Transfer to Debt Service Fund
Subtotal Capital Projects Fund
RETT Projects Fund .
Katsos-Ranch Bike Path
Meadow Drive Streetscape
Professional Fees
Meadow Drive Streetscape
AIPP East Meadow Drive Entry
Greenhouse
Off-cycle Contributions
Volvo sponsorship of trash bins .
Volvo sponsorship of street furniture
Highway Clean-up
Subtotal RETT Projects Fund
441,000 Unbudgeted property tax, collections, net of 2% Treasurer fee - Allocated to capital fund per Council
441,000 Reserve unbudgeted property tax collections per Council
500,000 Based on actual collections
418,000 Based on actual collections (majority from Safeway and Vail CascadeJChaps
267,000 Eagle County contribution to I-70 Fiber project
95,000 CDOT contribution to 1-70 Fiber project
909,128 I-70 Fiber project thru CDOT - per Council (at $600K) 8/5/08; Project nets $604K after contributions
285,000 Four Season reimbursement for a portion of the West Meadow Drive streetscape project
165,000 Reimbursement from Solaris for E. Meadow Drive streetscape work
165,000 E. Meadow Drive streetscape work
126,000 Homeowners in Lionsridge_Loop area are contributing to the underground utilities
321,000 Underground Utilities; remainder will be reimbursed by the Holy Cross Community Enhancement Fund over the next 2 years
75,000 Emergency generator project
75,000 Per Council July 1, increase emergency generator expense (electrical code issues)
30,000 LH Parking Structure - reimbursement from Open Hillwood
30,000 LH Parking Structure - legal and professional fees
25,341 Per Council May 6; council retreat
(25,341) Transfer to Housing plan
(520,000) Move purchase to 2010, pending plans for W Vail Fire Station
13,000 Repair of Heating system
(35,000) Estimated reduction in debt service payment from refinancing of 1998A bonds
2,402,000 1,399,128
(200,000) Savings:ft•om Katsos Bike Path project
(200,000) Savings from Meadow Drive streetscape project
(99,229) VRD legal agreements were done in-house; savings to RETT budget
(27,000) Transfer Streetscape funds to AIPP for East Meadow Drive entry feature
27,000 East Meadow Drive entry feature - in addition to $35K already included in the budget
270,000 Expanded functionality of new greenhouse to accommodate town-wide landscape additions such as streetscape & medians
20,000 Per Council July 1 for Betty Ford Alpine Garden,bridge replacement
3,000 Transfer funds from Eco. Dev dept (see .Gen' I fund above)
2,000 Transfer funds from Eco Dev dept (see.Gen'l fund above)
2,700 Additional costs for highway clean-up
(201,529)
Supv 2 of 2008 _ 4 9/10/2008 3:17 PM
Description .
Dispatch Service Fund
E911 Board Revenue
Interagency Charges
Investment Income
Transfer to Capital Projects Fund
Subtotal Dispatch Service Fund
Health Insurance Fund
Insurer Proceeds
Subtotal Health Insurance Fund
Heavy Equipment Fund
Reimbursements - Warranty Work
Repairs & Maintenance
Fuel
Subtotal Heavy Equipment Fund
Debt Service Fund
Transfer from Capital Projects Fund
Principal
Interest
Subtotal Debt Service Fund
Total All Funds
Proposed Supplemental Appropriations and Budget Adjustments#2tof 2008
Revenue Expenditure
Increase Increase
(Decrease) (Decrease) Reason
25,000 E911 funds for use toward'emergency generator
93,745 Based on actual amount billed to participating.agencies
12,000 Unbudgeted revenue
75,000 Emergency generator project ($25K from E911 Board•and $50K from Dispatch fund balance)
130,745 75,000
98,982 - Reimbursement for claims over stop-loss maximum
98,982 - ,
21,057 Warranty reimbursement for work done to fire engine
21,057 Repairs to fire engine - covered under warranty
212,214 Additional fuel costs due to increases in price and usage (snow plows this spring)
21,057 233,271
(35,000) Savings in debt service payments due to refinancing of town's 1998A bonds
45,000 Change in debt service payment due to refinancing of town's 1998A bonds
(80,000) Change in debt service payment due to refinancing of town's 1998A bonds
(35,000) (35,000)
3,916,274 2,200,634
Supp 2 of 2008 5 9/10/2008 3:17 PM
2nd Supplemental of 2008
First Reading
TOWN OF VAIL 2008 BUDGET
SUMMARY OF REVENUE, EXPENDITURES AN D CHANGES IN FUND BALANCE
GENERAL FUN
I D
I
Budget
Ammended
2nd
2008 2008 Supplemental
Revenue 1
Local Taxes:
Sales Tax SDlit b/t Gen'I Fund & Caoital Fund 60/40 1 60/40
Sales Tax 1 $ 11.640.000 1 $ 11.640,000 1 I $
Property and Ownership 3,843.500 3,843,500 I 450,000 I
Ski Lift Tax I 3.123,852 3,123,852 1 I
Franchise Fees, Penalties, and Other Taxes I 826,110 826.110 i I
Licenses & Permits I 2.353,950 1 2,353,950 433,000
Intemciverhmental Revenue I: 1,366,800 1 1,366;800 286,086
Transportation Centers 3,736,380 1 3,736,380 13,000
Charoes for Services 817,135 1 767,135 1 I
Fines & Forfeitures 215:000 1 215,000 44,000 I
Earnings on Investments 675,000 I 675,000 1 I
Rental Revenue ,
I 763,000 I 797,400 I I _
Miscellaneous and Proiect Reimbursements I 70,000 1 73.000 1 72.404 1
Total Revenue I 29,430,727 29,418,127 1 1,298,490
Expenditures I
Salaries 1 13,108,4281 13,108,428 246,8751
Benefits 4,477,762 1 4,477,762 I 6,500 1.
Subtotal ComDehsation and Benefits 17.586,190 1 17,586,190 1 253.375
Contributions, Special Events and Econ Dev 1 1,327,340 1 1.410.445 - (82,000)1
All Other Operating Exoenses I 7.162,216 1 7,242.391 117,389 1
Heavy Eouibment Operatingi Charges 2,093,150 I 2,093,150
Heavv Equipment Replacement Charges 1 629,643 1 629,6431 1
Dispatch Services I 535,657 1 535.657'1 --- . I
Total Expenditure's 29.334.196 1
?
I 29,497,476 1
I 288,7641
I
Revenue Over (Under) Expenditures
-- - .
I 96,531 1.
I I (79,349)1 1,009,7261
Transfer to Capital Projects Fund
- --
I
I I I
(441,000)1
Beginninq Fund Balance I
1 14.686,181
I I
19,856,618 I
I
Ending Fund Balance
1. $ 14,782,712 1 $ 19,777,269 I .
I S
Proposed
Ammended
2008
60/40
11,640,000
4,293,500
3,123,852
826;110
2,786,950
1,652,886
3,749,380
767,135
259,000
675,000
797,400
145.404
30,716,617
13,355,303
4,484,262 ,
17.839.565
1,328,445
7,359,780
2.093.150
629,643
535.657-
29,786,240
. 930,377
(441,000)
19,834,717
20,324,094
6
TOWN OF VAIL 2008 BUDGET
SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
I I
I I I
Budget Ammended '2nd
1 2008 2008 Supplemental
Revenue
Sales Tax $ 7,760,000 $ 7.760,000
Use Tax - - 500,000
FFederal Grant Revenue 815,577 I 815.577
(Lease Revenue I 187,800 187,800
Proiect Reimbursement - 191 510 701 000
Eagle County Grant Revenue
IEmDlovee Housing Fee-in-Lieu
Earrings on Investments and Other
(Total Revenue
1
Expenditures.:
?. Land.Purchases
Altair Unit -
Equipment Purchases
I Document.lmaging
1Softtw6re & Hardre Upgrades
IComm Dev Interactive Permit software
(Software Licensinq
Network uagrades .
Website & E-commerce
IComputer Aided Dispatch (CAD) / RMS Proiect
IParkinq Eauipment Reblacement
Patrol Car Video Cameras
-1 Jail / Municipal Bldq Video Svstem Uoorade
I Fire Truck Rebuild/Refurbish . . .
-:(Radio arnclification in Darkino structures
HeaW Eguipme'nt new caoital
I Generator .
Office Eauloment
Reclaoe Buses
Radio replacement (public works. public safetv)
IVehiGe Eimansion_
Subtotal Eaiuinment Purchases
Capital Maintenance-
IBus Shelter_Replacement
Capital Street Maintenance.
IParidnq Structure Improvements
(General Facilitv.imorovements
Data Center _
Flammable storape / Mad Chloride
Subtotal Capital Maintenance
Street.Reconstruction .
Neighborhood Road Reconstruction
Neiahborhood Bridoe Reconstruction
1 Subtotal Street Reconstruction
I -
Buildings 4 Improvements
Fire infrastructure improvements
Fiber Optics in. Buildings
Variable Message Signs / Wav-Finding Imnr
Donovan Park Pavilion .
Subtotal Bldgs / Improvements
50,000
10.850 I 195.043
8,774.2271 9,199,930 1
I
- I
I
I
350,000
43,000 1
8,500
32,000
12,000
43,000
8,000 I
23.000
520,000
14.635 1
495,500
1,549,635
178,066
350,000
43,000
21,838
8,500
43,478
32,000
57,640
2,985
8,000
23,000
520,000
50,000
3,400
175,000
14,635
3.840.297
545,500
61.411
5,800,684
10,000
1,625,000
935.000
400,000 I
- I
- I
2,970,000'1
I
150,000
75.000
225,000 1
I
I
250,000
15,000
30.000
295,000
29,354
1,702,280
1,163,216
568.817
35,500
24,000
3,523,167
I
150.000
75.000
225,000
I
329.229
30.000
36,416 'I
- I
395,645
7
267,000 I
418,000
I
1,886,000
I
I
I
I
I
(520.000)1
I
I
75,000
(445,000)1
I
I
I
I
I
- I
I
I
I
I
_ I
13.000
13,000
2nd Supplemental of 2008
First Reading
Proposed
Ammended
2008
$ 7,760,000
500,000
815.577
.187,800
892,510
317;000
418,000
195.043
11,085,930 _
178,066
350.000
43,000
21,838
8.500.
43,478
32.000
57,640
2.985
8,000
23,000
50,000
3,400
250,000
14,635
3,840.297
545,500
61.411
5,355,684
29,354
1,702,280
1,163,216
568,817
35,500
24,000
3,523,167
150,000
75.000
225,000
329.229
30.000
36,416
13.000
408,645
2nd Supplemental of 2008
First Reading
'TOWN OF VAIL 2008 BUDGET
SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
CAPITAL PROJECTS FUND
Streetscape Projects
Manor Vail Street Plan
West Meadow Drive
East Meadow Drive-Streetscape Heat
,Village StreetscaDe
Subtotal Streetscape Projects
I
Housing Program
Buv-Down Program
Pitkin Creek EmDlore. Housinq Unit
ITimber Ridge Debt Service Guarantee
ITmber. Ridge Legal / Zoning
- Subtotal Housing Program
I
ILoonsHead Redevelopment-
I LionsHead .Improvements
. Subtotal LionsHead Redevelopment
Other Improvements
ProDerty Tait Increment - Reserved
ITOV Stli teoic Planninq (Vail 2020)
(Housing Strateq'c Plan
West Vail Area Plan
I.Chamonix Area Plan
11-70 Fiber Project
SStreet Light Imorovement Program
1-70 Noise
LH Paridriq Structure Redevelopment
Bio-Mass Study
IUnderground Utility.Improvements
1E ' Vail Radio Tower
SubL.Aod Other Improvements
Total before FInancinq
Transferl6f Debt Service
Transfer from Dispatch
ITaansfer from General Fund
(Total Financinq
(Total Expenditures
Revenue Over (Under) Expenditures _
Beginniria Fund Balance
Ending Fund Balance
Budget Ammended 2nd
2008 I 2008 Supplemental
100,000
1,720,000 1,720,000
- 165,000
1,013,761
1,720,000 2,833,761 _ 165,000
I j
I I
Proposed
Ammended
2008 -
100,000
1,720,000
165,000
1,013,761
2,998,761
I 100,000 1 100,000 1 I 100,000
- 7,350 1. I 7,350
- 925,0001 I 925,000
- '28.927 I 28,927
I 100,000
• I 1,061,277
I 1
I 1,061,277
I
- I
32,242.1 I
32,242
-
I 32,2421 - 32,242
I
- I
-
441,000
441,000
- I 25,341 1 (25,341)1
'
-
- 1 25,341_1 25,341
- 22,7321 I 22,732
- 1 130,5451 I 130,545
- I - I 909,1281 909,128
75,000 1 75,000 1 I 75,000
1 250,000 I 1,079,282 1 I 1,079282
- 34,857 30,000 64,857.
- 50,0001 1 50,000
I - I 47,783 1 _ 321,000 368,783
5,000 I 5,000 1 - 5,000
330,000 1,470,540 1.- 1,701,1281
,I 3,171,668
7,189,635
I 15,520,382 . 1,434,128 1
__ 16,954,510
(2,321,825)
(2,321,825) 1
35,0001
(2,286,825)
1 75,000 1 75,000
I 441,000 441,000
1 (2,321,825)1 (2,321,825111 - 551,000 (1,770,825)
J 9,511,460.
I' I 17,842,207 1
I 883,128 18.72---1
1 (737,233)1
I I (8,642,277)1
I' I (7,639,405)
754,153.1
10,171;125 1 . I
. 1
10,064,128
1 $ 16,920 $ 1,528,848 1' 1 $ 2,424,723,
8
2nd Supplemental of 2008
First Reading
TOWN OF VAIL 2008 BUDGET
SUMMARYOF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
REAL ESTATE TRANSFER TAX FUND
REVENUE
Real Estate Transfer Tax
Grant Revenue
Golf Course Lease
Lottery Revenue
Proiect Reimbursements
Eamings.on Investments and Other
Recreation Amenity Fees
Total Revenue
EXPENDITURES
Annual Maintenance
RE17 Management Fee (to Gen'I Fund)
Park, Path &.Landscape Maintenance
Rec. Patti Capital Maintenance
Alpine Garden Support
Tree Maintenance ` . I
Forest:Heatth Management
Street Furniture Replacement I
Blade Gore Creek Sand Mitigation
Subtotal Maintenance
Recreation Pathrrrail Development
Katsos Ranch Path
Cascade Bike Path-.
TimberRidge-Buffehr Crk Rd Path
Streamwalk-iii Safety improvenietns
Trailhead Development / Improvement
Meadow Drive Streetscape _
Front ige.Road Bike Lanes / Trails
Subtotal Pathways
I
Capital Maintenance
ADA Compliance W/ VRD -
VRD Agreements - Legal Counsel I
Raw Water Proiect / In igation Control
Stream Tract Incursion Survey _
Big Horn Park
Plavaround Safetv / Red Sandstone
R.;, V?,i: Park Restrooms-3 seasons
Park / Plavround Capital Maintenance
Landscape Medians
Turf Topdresser'
Bear Proof Containers I
Sibert Circle
Ford Amohitheiter Renovations
Greenhouse
Dobson Ice Arena
Gymnastics Center
Ford Park / Tennis Center Improvements I
Subtotal Capital Maintenance
I
Art in Public Places (AIPP)
Public Art
Proiect Management
Subtotal AIPP
Park Development
Donovan Park
White Water Park
Budget
2008
$ 8230,000
126,708
20,000
200,000
125.000
8,701,708
I
I
411,500 I
1,253,900
222,789
70,000 1
60,000 1
360,000
.20,000
100,000 I
2,498,189
I
I
- I
I
225,000
22,100 I
1,250,0001
1,275,000
2,772,100
Proposed
Ammended 2nd Ammended
2008 Supplemental 2008
$ 7,230.0001
151,8581
126,708
20,000
6,000 I
308,3301
125.000
7,967,896
361,500
1,311,066
384,262
70,000
115,931
531,808
24,1431
184,000
2,982,710
546,887
6,977
653,700
225,000
33,250
1,250,000
1,275,000
3,990,814 1
I
-
100,849
50,000 99,229
- 9,927
30,000 64,881
425,000 1 465,037
- 1 78,659
105,000 1 125,229
- 1
I 570.000
-
- I -
2,578
-
I 323,230
-
- I -
100,000
77,200 1 98,907
- 1 29,611
62,000 1 78,800
749,200 2,146,937
I
75,000 I I
I
291,998 1
62.1671 62.1671
137,167 I -. _ 354,1651
45,0431
48.325
9
I
1
I
1
I
20,000 I
I
I
. 2,000
22,000
1
(200.000)1
I
I
I
(227,000)1
(427,000)
I
I
(99,229)1
1
1
1
1
1
1
3,000
270,000
$ 7,230,000
151,858
126,708
20,000
6,000
308,330
125,000
7,967,896
361,500
1,311,066
384.262
90,000
115,931
531,808
26,143
184,000
3,004,710
346.887
6.977
653,700
225.000
33.250
1,023,000
1,275,000
3,563,814
100.849
9,927
64,881
465.037
78.659
125.229
570,000
5,578
323.230
370.000
98,907
29,611
78,800
173,771 ( 2,320,708
I
I
27,000
I
27,0001..
318,998-
62,167
381,165
45.043
48,325
2nd Supplemental of 2008
First Reading
TOWN OF VAIL 2008 BUDGET
SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
REAL ESTATE TRANSFER TAX FUND
I 1
I
I
I
_ Proposed
Budqet . I Ammended I 2nd A :nded
2008 2008 Supplemental 2008
LionsHead Park 928,000 1;067,000 1,067,000
Skate Park - 65,000 65,000
Kavak Take-out... I - 10,000 10,000
Ford Park Master Plan=lmdrovenients 1,500,000 1,581,340 1,581,340
Subtotal Park Development _
2A28,000 1 2,816,708 - 2,816,708
Recreation Master Planning I - 79,543 I' 79,543
Envii,onniental Sustainability I 250.000 1 307,011 2,700 I 309:711
Open Soace Acauisition - I
I 551,0191
I I 551,019
Total Expend-stares
8,834,656 1
I I
13,228,907 1 I
(201,529)1 _.13,027,378
Revenue Over (Under) Expenditures
(132,948)1
1
(5,261,011) I
(5,059,482)
_ I - -
Beginninq Fund Balance. I 6.953,621
I 11,769,273 11,769,273
Ending Fund Balance 1 $ 6,820,673 $ 6,508,2621 $ 6,709,791
10
2nd Supplemental of 2008
First Reading
' I I I I
TOWN OF VAIL 2008 BUDGET
SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
DISPATCH SERVICES FUND
Revenue j
E911 Board Revenue I $
Interagency Charqes
Town of Vail Interagencv Charge
Eamings on Investments
Other
Total Revenue.
Expenditures
Salaries & Benefits
Operating, Maintenance & Contracts
Capital Outlay -
Total Expenditures
Revenue Over (Under) Expenditures
Transfee to-Capital Projects Fund
Beginning Fund Balance
Ending Fund Balance j $
Budget I Ammended
2008 j 2008
582,183 $ 582,1831
956,694 956,6941
535,657 535,6571
2,074,534 2,074,534
1,606,676 I
1,606,676
465,511 I 478,511
50.000 142,000
2,122,187 2,227,187
(47,653)1
I
I (152,653)
I
525,684
918,366
478,031 I $ 765,713
. Proposed
2nd Ammended
Supplemental. 2008
25,000 $ 607,183
93,745 I 1,050,439
535,657
12,000 1
I 12,000
130,745 I
I -
2,205,279
I
1,606,676
478,511
142,000
-
I 2,227,187
130,7451
I (21,908)
(75,000)1
I. (75,000)
918,366
I
$ $
821,458
11
2nd Supplemental
First Reading
I I
TOWN OF VAIL 2008 BUDGET I
SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
HEALTH INSURANCE FUND'
I
I.
I
I
I Proposed
2008 I 2nd I Ammended
Budget Su pplemental 2008
Revenue
Town of Vail intera4encv Charge - Premiums $ 2,492561 $ - $ 2,492,561
Employee Contributions 285,792 - 285;792 .
Insurer Proceeds 7,500 1 98,982 1 106,482 -
Earnings on Investments 29,700 - 29.700
Total Revenue 2,815,553 9802 2,914,535
Expenditures
Health Inusrance Premiums 330,553 I - 330,553
Claims Paid 2,425,000 1 2.425;000
Short term Disability Pav 40.000 I - 40,000
Professional. Fees I 20.000 - 20.000
Total Expenditures. 2,815,553 - I 2,815,553
Revenue Over (Under) Expenditures - 98,982 I 98,982
Beginninq Fund Balance
-
560,973 I
I 1
990.117'
Ending Fund Balance I
475,1541 I
I 1,089,099
12
• 2nd Supplemental of 2008
• First Reading
I _.. I I
TOWN OF VAIL 2008 BUDGET I
SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
HEAVY EQUIPME NT FUND
I
Proposed
Budget Ammended I 2nd Ainmended.
2008 2008 I Supplemental 2008
Revenue 1
Town of Vail Interagency Charqe $ 2,795,945 $ 2,795,945 I $ 2,795,945
Insurance Reimbursements & Other 38,800 38,800 21,057 I 59,857
Earnings on Investments I 65,000 65,000 I 65,000
Equipment Sales and Trade-ins I .133,530 I .133,530 I, 133,530
Total Revenue
' I . 3,033,2751
I I 3,033,275 21,0571 3,054,332
Expenditures_ I I
Salaries & Benefits I 970,593 1 970.5931 1 970,593
ODa,au,„a, Maintenance & Contracts 1 1,180,4501 1,180,4501 233,271.1 1,413,721
Capital Outlay I 686,300 1 923,456 923,456
Total Expenditures
_. I 21_837,343
I 3,074,499 1
I 233,271
I 3;307,770
Revenue Over (Under) Expenditures 195,932 (41,224) (212,214) (253,438)
Beginninq Fund Balance I 1,473,250 1,685,059 1 1,734,787
Ending 'Fund Balance
- - $ 1,669,182
I I $ 1,643,835
I
I $ 1,481,340
?
13
TOWN OF VAIL 2008 BUDGET .
SUMMARY OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
- DEBT SERVICE FUND
I
I
Proposed
Budget 2nd Ammended
2008 Supplemental 2008,
Revenue 1
Transfer from Capital Proiects Fund 1 $ 2,321,8251 (35,000)1$ 2,286,825
Earnings on Investments I I
Total Revenue 2.321.825
:I (35.000)1
I 2,286,825
Expenditures.'
Principal 1 1,890,000 45,000 1,935,000
Interest Ezpense 432,396 (80,000) 352,396
Fiscal Agent Fees I 2.500 2,500
Total Expenditures I 2,324.896 (35.000) . 2,289.896
Revenue Over (Under) Expenditures (3,071)1
I -
I (3,071)
Beginning Fund Balance 247,1541
I I
I 252,710
_
Ending Fund Balance 1 $ 244,083 1 1.$ 249,639
2nd Supplemental of 2008
Fist Reading
14
ORDINANCE NO. 19
SERIES OF 2008
AN ORDINANCE MAKING SUPPLEMENTAL APPROPRIATIONS TO THE TOWN OF VAIL
GENERAL FUND, CAPITAL PROJECTS FUND, REAL ESTATE TRANSFER TAX FUND,
DISPATCH SERVICES FUND, HEAVY EQUIPMENT FUND AND DEBT SERVICE FUND OF
THE 2008 BUDGET FOR THE'TOWN OF VAIL, COLORADO; AND AUTHORIZING THE
EXPENDITURES OF SAID APPROPRIATIONS AS SET FORTH HEREIN; AND Sc i i ING
FORTH DETAILS IN REGARD THERETO.
WHEREAS, contingencies have arisen during the fiscal year 2008 which could not have
been reasonably foreseen or anticipated by the Town Council at the.time it enacted Ordinance No.
29, Series of 2007, adopting the 2008 Budget and Financial Plan for the Town of Vail, Colorado;
and,
WHEREAS, the Town Manager has certified to the Town Council that sufficient funds are
available to discharge the appropriations referred to herein, not otherwise reflected in the Budget, in
accordance with Section 9.10(a) of the Charter of the Town of Vail; and,
WHEREAS, in order to accomplish the foregoing, the Town Council finds that it should make
certain'supplemental appropriations and budget adjustments as set forth herein.
..NOW, THEREFORE, BE IT ORDAINED, BY THE TOWN COUNCIL OF THE TOWN OF
VAIL, COLORADO that:
1. Pursuant to Section 9.10(a) of the Charter of the Town of Vail, Colorado, the Town
Council hereby makes the following supplemental appropriations and budget adjustments for the
2008 Budget and Financial Plan for the Town of Vail, Colorado, and authorizes the expenditure or
(reduction) of said appropriations as follows:
General Fund
Capital Projects Fund
Real Estate Transfer Tax Fund
Dispatch Services Fund
Heavy Equipment Fund
Debt Service Fund
Total
$ 729,764
1,399,128
(201,529)
.75,000
233,271
(35.0001
$ 2,200,634
2. If any part, section, subsection, sentence, clause or phrase of this ordinance is for any
reason held to be invalid, such decision shall not affect the validity of the remaining portions of this
Ordinance No. 19, Series of 2008
ordinance; and the Town Council hereby declares it would have passed this ordinance, and each
part, section, subsection, sentence, clause or phrase thereof, regardless of the fact that any one or
more parts, sections, subsections, sentences, clauses or phrases be declared invalid.
3. The Town Council hereby finds, determines, and declares that this ordinance is
necessary and proper for the health, safety, and welfare of the Town of Vail and the inhabitants
thereof.
4. The repeal or the repeal and reenactment of any provision of the Municipal Code of
the Town of Vail as provided in this ordinance shall not affect any right which has accrued, any duty
imposed, any violation that occurred prior to the effective.date hereof, any prosecution commenced,
nor any other action or proceedings as commenced under or by virtue of the provision repealed or
repealed and. reenacted. The repeal of any provision hereby shall not revive any provision or any
ordinance previously repealed or superseded unless expressly stated herein.
5. All bylaws, orders, resolutions, and ordinances, or parts thereof, inconsistent herewith
are 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, theretofore repealed.
INTRODUCED, READ, APPROVED, AND ORDERED PUBLISHED ONCE IN FULL ON
FIRST READING this 2nd day of September, 2008, and a public hearing shall be held on this
Ordinance on the 16th day of September, at the regular meeting of the Town Council of the Town of
Vail, Colorado, in the Municipal Building of the town.
Dick Cleveland, Mayor
AritST:
Lorelei Donaldson, Town Clerk
Ordinance No. 19, Series of 2008
ORDINANCE NO.20 .
SERIES OF 2008
AN ORDINANCE AUTHORIZING THE ISSUANCE OF TOWN
OF-VAIL, COLORADO SALES TAX REVENUE REFUNDING
BONDS, SERIES 2008; PROVIDING THE FORM, TERMS AND
CONDITIONS OF THE 2008 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 2008 BONDS; PROVIDING CERTAIN
COVENANTS AND OTHER DETAILS AND MAKING OTHER
PROVISIONS CONCERNING THE 2008 BONDS, THE SALES
TAX REVENUES AND THE REFUNDING PROJECT;
DELEGATING CERTAIN AUTHORITY TO THE MAYOR, THE
TOWN MANAGER AND THE FINANCE DIRECTOR;
RATIFYING ACTION PREVIOUSLY TAKEN; AND
APPERTAINING THERETO; AMENDING THE ORDINANCES
AUTHORIZING THE TOWN'S SALES TAX REVENUE
REFUNDING BONDS, SERIES 1998A AND SALES TAX
REVENUE REFUNDING BONDS, SERIES 2002B; AND
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 definitions 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 17 hereof and having a lien on the Pledged
Revenues on a parity with the lien of the Bonds.
Bond Fund: the fund by. that name created by the 1989 Ordinance and continued in
this Ordinance.
Bond Insurer: the issuer of the Bond Insurance Policy, if any.
-1-
Bond Insurance Policv: a municipal bond' insurance policy issued by the Bond Insurer
guaranteeing the payment of principal of and interest on the 2008 Bonds, if any.
Bond Reserve Insurance Policv: any insurance policy, surety bond, irrevocable letter
of credit or similar instrument deposited in or credited to the Reserve Fund in lieu of or in-partial.,
substitution for moneys on deposit therein. The issuer providing any such Bond Reserve Insurance
Policy shall be an issuer which then is rated in one of the four highest investment grade rating
categories by one or more nationally recognized organizations which regularly rate such obligations.
Bonds: the 2008 Bonds, the 2002B Bonds, the Outstanding 1998A- Bonds, and any
Additional Bonds.
Business D.av: a day, other than Saturday or Sunday, on which banks located in the
city in which the Principal Office of the Paying Agent is located are not required or authorized to be
closed and on which The New York Stock Exchange is not closed.
Charter: 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.
Continuini Disclosure Certificate: the Continuing Disclosure Certificate executed by
the Town in connection with the issuance of the 2008 Bonds, which constitutes an undertaking
pursuant to Rule 15c2-12 promulgated by the U.S. Securities and Exchange Commission.
C.R.S.: the Colorado Revised Statutes, as amended and supplemented as of the date
hereof.
DTC: The Depository Trust Company, New York, New York, and its successors and
assigns.
Escrow Account: the Escrow Account for the Refunding Project established with the
Escrow Bank pursuant to Section 13.13. hereof.
Escrow Agreement: the Escrow Agreement between the Town and the Escrow Bank
relating to the Refunding Project.
-2-
Escrow Bank: U.S. Bank National Association; in Denver, Colorado, acting as
escrow agent pursuant to the Escrow Agreement, or any successor.
Federal Securities: only direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States (or ownership interests in any
of the foregoing) and which are not callable prior to their scheduled maturities by the issuer thereof
(or an ownership interest in any of the foregoing).
Financial Guarantv Agreement: the Financial Guaranty Agreement between the Town
and MBIA Insurance. Corporation, as the issuer of the Bond Reserve Insurance Policy in connection
with the issuance of the 2008 Bonds.
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.
Finance Director: the Finance Director of the Town.
Income Fund: the special fund by that name created by the 1989 Ordinance and
continued by this Ordinance. .
Letter of Representations: the letter of representations from the Town to DTC to
induce'DTC to accept the 2008 Bonds as eligible for deposit at DTC.
Maximum Annual Debt Service Requirement: the maximum amount of all required
payments.of principal and interest on the Bonds which will become due-in any Fiscal Year.
Mavor: the Mayor-of the Town.
Mavor Pro Tem: the Mayor Pro Tern of the Town
1989 Ordinance: Ordinance No. 29, Series of 1989 of the Town, as amended by
Ordinance No. 32, Series of 2002, and Ordinance No. 27,.Series of 2005.
1998A Bonds: the Town's Sales Tax Revenue Refunding Bonds, Series .1998A,
originally issued in the aggregate principal amount of $8,760,000 and currently outstanding in the
aggregate. principal amount of $7,775,000. -
-3-
Official Statement: the Official Statement delivered in connection with the original
pricing and sale of the 2008 Bonds.
Ordinance: this Ordinance of the Town, which provides for the issuance and delivery
of the 2008 Bonds.
Outstandiniz: 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 2008 Bond as shown on the
registration records kept by the Registrar.
Paving Agent: U.S. Bank National Association, Denver, Colorado, being the agent
for the Town for the payment of the 2008 Bonds and interest thereon, or its successors and assigns.
Permitted Investment: any investment or deposit permitted by the Charter and
ordinances of the Town.
Person: 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
-4-
(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 14 hereof to be deposited into
and held in the Income Fund, the Bond Fund and the Reserve Fund.
Pledged Sales Tax: the proceeds of the Town's current 4% Sales Tax, which is also
pledged to the payment of the 1998A Bonds and the 2002B 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 Section 31-25-103(a), C.R.S., or a plan of development as
defined in Section 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 Sales 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 Sales 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
Preliminarv Official Statement: the Preliminary Official Statement relating to the
2008 Bonds a copy of the form of which is on file with the Town Clerk.
Principal Office: the principal office of U.S. Bank National Association, 950 17tH
Street, 12th Floor, Denver, Colorado;. Attention: Corporate Trust Services; for notices and with
respect to payments, exchanges, .transfers or ;surrenders of the 2008 Bonds, means U.S. Bank
National Association,. 60 Livingston Avenue, St.- Paul, Minnesota '55107.
Purchase Contract:, the Bond Purchase Agreement between the Town and the
Purchaser:
Purchaser: Piper Jaffray &,Co.
-5-
Rebate Fund: the fundby that name created by the 1989 Ordinance and continued by
this Ordinance.
Redemption Date means December 1; 2008.
Refunded Bond Requirements: the payment of: i) interest on the Refunded Bonds
both accrued and not accrued, as the same becomes due on the Redemption Date; and ii) the
principal of the Refunded Bonds as the same becomes due or is called.for prior redemption on the
Redemption Date.
Refunded Bonds: that portion of the 1998A Bonds maturing on and after December 1,
2009.
Refunding Proi ect: the payment of the Refunded Bond Requirements and the costs of
issuing the 2008 Bonds.
Registrar: U.S. Bank National Association, Denver, Colorado, being the agent for the
Town for the registration, transfer and exchange of-the 2008 Bonds, or its successors.
Reuistrar Agreement: the Registrar and Paying Agent Agreement between the Town
and the Registrar.
Regular Record Date: the fifteenth day of the calendar month next preceding each
interest payment date for the 2008 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 the least of (i) 10% of the stated
principal amount of the Outstanding Bonds, (ii) 100% of the Maximum Annual Debt Service
Requirement, or (iii) 125% of the Average Annual Debt Service, to be maintained in the Reserve
Account, except to the extent of any Bond Reserve Insurance Policy therein.
Sale Certificate: the certificate executed by any of the Mayor, the Town Manager or
the Finance Director dated on or before the date of delivery of the 2008 Bonds, setting forth the
present value savings accomplished through the Refunding Project, the interest rate on the 2008
Bonds, the date on which payment of interest shall commence, the dates on which principal and
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interest shall be paid, the price at which the 2008 Bonds will be sold, the total principal amount of
the 2008 Bonds, the dates on which the 2008 Bonds may be called for redemption, the redemption
price of the 2008 Bonds, the amount of principal maturing on each date, and whether the 2008 Bonds
will be secured by a Bond Insurance Policy, all subject to the parameters and restrictions contained in
this Ordinance.
Sales Tax: 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 Tax Ordinances: the ordinances adopted by the Town Council 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.
Snecial Record Date: a special date fixed to determine 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 5 hereof.
State: the State of Colorado.
Supplemental Act means the Supplemental Public Securities Act, constituting Title
11, Article 57, Part 2, C.R.S.
Tax Code: the Internal Revenue Code of 1986, as amended to the date of delivery of
the 2008 Bonds, and any regulations promulgated thereunder.
Term Bonds: 2008 Bonds which are payable on of before their specified maturing
dates from sinking fund payments established for that purpose and calculated to retire such 2008,
Bonds on or before. their specified maturity dates.
Town: the Town of Vail, Colorado.
Town Clerk: the Town Clerk of the Town or, in his or her absence, the deputy Town
Clerk of the Town.
Town Council: the Town Council of the Town or any successor in functions thereto. .
Town Manaser: the Town Manager of the Town.
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Trust Bank: a Commercial Bank which is authorized to exercise and is exercising
trust powers.
2002B Bonds: the Town's Sales Tax Revenue Refunding Bonds, Series 2002B,
originally issued in the aggregate principal amount of $5,570,000 and currently outstanding in the
aggregate principal amount of $2,260,000.
Section 2. Recitals.
A. The Town is a municipal corporation duly organized and, existing under the
Charter adopted pursuant to Article XX of the Constitution of the State.
B. Section 9.6 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 to issue refunding
bonds without an election.
E. Pursuant to Article X, Section 20 (4) of the State Constitution, refunding
bonds may be issued without an election if issued at a lower interest rate than the refunded bonds.
F. The Refunded Bonds are subject to redemption on the Redemption Date at a
price equal to principal amount redeemed plus accrued interest to the Redemption Date.
G. The Town Council has determined and hereby declares that it is in the Town's
best interest to effect the Refunding Project.
H. Except for the December 1, 2008 maturity of the 1998A Bonds, and the 2002B
- Bonds, the Town has not pledged the Sales Tax to the payment of any bonds or for any purpose.
Simultaneously with the issuance of the 2008 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
1998A Bonds and 2002B Bonds) lawfully and irrevocably for the payment of the 2008 Bonds.
1. There are on file with the Town Clerk the proposed forms of the following
documents: the Purchase Contract; the Escrow Agreement; the Letter of Representations; the
Registrar Agreement; the Continuing Disclosure Certificate, and the Financial Guaranty Agreement. .
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J. The Town Council desires to cause the 2008 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 mariner 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 Project, and selling and issuing the 2008 Bonds for
those purposes are ratified, approved and confirmed.
Section 4. Authorization of the 2008 Bonds. There hereby is authorized to be
issued an issue of fully registered sales tax revenue securities of the Town, to be designated "Town
of Vail, Colorado, Sales Tax Revenue Refunding Bonds, Series 2008" in the aggregate principal
amount' set forth in the. Sale Certificate, to be payable and collectible, both as to principal and
interest, from the Pledged Revenues.
Section 11-57-205 of the Supplemental Act provides that a public entity may delegate:
to any member of the issuing authority, chief executive officer; or chief financial officer. of the public
entity the authority to sign a contract for the purchase of the securities or to accept a binding bid for
the securities, such delegation to be effective for one year after adoption of the act of issuance. The
Council hereby delegates. and authorizes any of the Mayor, the Town Manager or the Finance
Director the independent authority to execute and deliver a Purchase Contract, execute and deliver
the Sale Certificate. setting forth the terms on which the 2008 Bonds will be delivered, subject to the
parameters and. restriction contained in this Ordinance. Any of the Mayor, the Town Manager or the
Finance Director is hereby authorized to determine if obtaining municipal bond insurance is. in the
best interests of the Town, and if so, to select a bond insurer to issue a municipal bond insurance
policy, execute a commitment relating to. the same and execute any related documents or agreements
required by such commitment. Should the Town elect to not obtain bond insurance, any reference
herein to the Bond Insurer or Bond Insurance Policy are of no force and effect. .
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Section 5. 2008 Bond Details.
A. The 2008 Bonds shall 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 DTC, shall
be dated as of their date of delivery, shall be issued in the denomination of $5,000 or any integral
multiple thereof (provided that no 2008 Bond may be in a denomination which exceeds the principal
coming due on any maturity date, and no individual 2008 Bond will be issued for more than one
maturity and interest rate) and shall be numbered in such manner as the Registrar may determine.
B. The 2008 Bonds shall be dated as of their date of issuance. The 2008 Bonds
shall mature, bear interest from their dated date to maturity, be subject to redemption, and be sold, as
provided in the Sale Certificate; provided that: (i) the 2008 Bonds are not subject to redemption
prior to maturity; (ii) the final maturity of the 2008 Bonds, shall not be later than December 1, 2012;
(iii) the net effective interest rate on the 2008 Bonds shall not exceed 3.25%, which rate is less than
the net effective interest rate on the Refunded Bonds; (iv) the aggregate principal amount of the 2008
Bonds shall not exceed $6,350,000; (v) the present value savings accomplished through the
Refunding Project shall not be less than 2.5% of the principal amount of the Refunded Bonds; (vi)
the purchase price of the 2008 Bonds shall not be less than 98%; and (viii) the aggregate principal
amount of debt service coming due in any year does not exceed by more than $25,000 the amount of
principal of and interest due on the Refunded Bonds. Interest on the 2008 Bonds shall be calculated
on the basis of a 360-day year of twelve 30-day months, payable semiannually on each June 1 and
December 1, commencing on the date provided in the Sale Certificate.
C. The principal of any 2008 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 2008 Bond shall 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 2008 Bond until the principal thereof is paid in full. Payment of interest on any
2008 Bond shall be made by check, draft or wire sent 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
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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 Regular Record Date for such interest
payment date; but any such 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 shall be given to the registered owners of the 2008 Bonds not
less than ten days prior to the Special Record Date by first-class mail to each such registered owner
lk 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 fixed for the payment of such defaulted interest. The Paying
Agent may make payments of interest on any 2008 Bond by such alternative means as may be
mutually agreed to between the owner of such 2008 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 unless otherwise required by the Registrar Agreement or
conditions for the issuance of a Bond Insurance Policy). 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 6. Prior Redemption.
A. The 2008 Bonds are not subject to redemption prior to maturity at the option
of the Town.
B. The Term Bonds, if any, shall be subject to mandatory sinking fund
redemption at the times, in the amounts, and at the prices set forth in the Sale Certificate.
On or before the thirtieth day prior to each such sinking fund payment date, the
Registrar shall proceed to call the Term Bonds indicated above (or any Term Bond or Bonds issued
to replace such Term Bonds) for redemption from the sinking fund on the date as set forth in the Sale
Certificate, and. give notice of such call without other instruction or notice from the Town.
At its option, to be exercised on or before the sixtieth day next preceding each such
sinking fund redemption date, the Town may (a) deliver to the Registrar for cancellation Term Bonds
subject to mandatory sinking fund redemption on such date in an aggregate principal. amount desired
or (b) receive a credit in respect of its sinking fund redemption obligation for-any Tenn Bonds of the
maturity subject to mandatory sinking fund redemption on such date, which prior to said date have
been redeemed (otherwise than through the operation of the sinking fund) and cancelled by the
Registrar and not theretofore applied as a credit against any sinking fund redemption obligation.
Each Term Bond so delivered or previously redeemed will be credited by the Registrar at the
principal amount thereof on the obligation of the Town on such sinking fund redemption date and the
principal amount of Term Bonds to be redeemed by operation of such sinking fund on such date will.
be accordingly reduced. The Town will on or before the sixtieth day next preceding each sinking
fund redemption date furnish the Registrar with its certificate indicating whether or not and to what
extent the provisions of (a) and (b) of the preceding sentence are to be availed with respect to such
sinking fund payment. Failure of the Town to deliver such certificate shall not affect the Registrar's
duty to give notice of sinking fund redemption as provided in this paragraph B.
C. In the case of 2008 Bonds of a denomination larger than $5,000, a portion of
such 2008 Bond ($5,000 or any integral multiple thereof) may be redeemed, in which case the
Registrar shall, without charge to the owner of such 2008 Bond, authenticate and issue a replacement
2008 Bond or Bonds for the unredeemed portion thereof.
Section 7. Special Obligations. All of the 2008 Bonds, together with the interest
accruing thereon, and any payments due 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 2008 Bonds and the issuer of the Bond Reserve Insurance Policy, may-not
look to any general or other fund for the payment of principal and interest on the 2008 Bonds or
payments under the Financial Guaranty Agreement, except the designated special funds pledged
therefor; and the 2008 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 shall they be considered or held to be general obligations of the Town.
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Section 8. Form of 2008 Bonds. Statement of Insurance, if anv. Registrar's
certificate of authentication. form of assignment and orepavment panel. The 2008 Bonds, Statement
of Insurance, if any, Registrar's certificate of authentication, form of assignment and prepayment
panel shall be substantially as follows, 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:
(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 an y 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
TRANSFERS PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE 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
TOWN OF VAIL, COLORADO
SALES TAX REVENUE REFUNDING BOND
NO. R-
INTEREST RATE
REGISTERED OWNER:
SERIES 2008
MATURITY DATE
December 1, 20_
CEDE & CO.
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COUNTY OF EAGLE
DATED DATE CUSIP
September [?, 2008
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, and to pay from said sources interest thereon on June 1 and December l 'of each
year, commencing on December 1, 2008, at the interest rate per 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 ordinance passed and adopted by the Town Council
of the Town on September 16, 2008 (the "Bond Ordinance") and a Sale Certificate executed by the
Mayor, the Town Manager or the Finance Director of the Town prior,to the delivery of the Bonds.
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 2008 bonds are issued by the Town, upon its behalf and upon the credit thereof,
for the purpose effecting the Refunding Project, all under the authority of and in full conformity with
the Constitution and laws of the State of Colorado, the Town's home rule charter, and pursuant to the
Bond Ordinance of the Town Council duly adopted and made a law of the Town prior to the issuance
of this bond. The 2008 Bonds are also issued pursuant to the provisions of Title 11, Article 57, Part
2, C.R.S. (the "Supplemental Act"). Pursuant to Section 11-57-210 of the, Supplemental Act, this
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recital shall be conclusive evidence of the validity and the regularity of the issuance, of the 2008
Bonds after their delivery for value.
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 principal of and interest on this bond are payable only from the proceeds of the
Pledged Revenues, all as more particularly set forth in the Bond Ordinance. This bond constitutes a
first and prior lien, but not necessarily an exclusively first lien, on the Pledged Revenues.
The 2008 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.
The 2008 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 Sales Tax Revenue Refunding
Bonds, Series 1998A and the Town's Sales Tax Revenue Refunding Bonds, Series 2002B. The 2008
Bonds are equitably and ratably secured by such lien on the Pledged Sale's 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 2008 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 2008 Bonds, the events of default and
remedies, the circumstances under which any 2008 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
shall 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.
FOR PURPOSES OF SECTION 265(b)(3)(B) OF THE INTERNAL REVENUE
CODE OF. 1986, AS AMENDED, THE TOWN HAS DESIGNATED THIS BOND AS A
QUALIFIED TAX-EXEMPT OBLIGATION.
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This Bond shall 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 Registrar,
IN TESTIMONY WHEREOF, the Town Council of the Town of Vail, Colorado has
caused this bond to be signed and executed in its name with a manual or facsimile signature of the
Mayor of the;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, all as
of the date specified above.
(Manual or Facsimile Siknature)
Mayor
(MANUAL OR FACSIMILE SEAL)
Attest:
(Manual or Facsimile Simature),
Town Clerk
(End of Form of Bond)
1
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(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.
U.S. BANK NATIONAL ASSOCIATION,
as Registrar
Date of Authentication. By:
and Registration: Authorized Officer or Employee
(End of Form of Registrar's Certificate. of Authentication)
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J
(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
Authorized
Date of Principal
Prepayment Prepaid Reniesentative of-the,
-
Denositorv
(End of Form of Prepayment Panel)'
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(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 Registrar, with full power of
substitution in the premises.
Dated:
Signature Guaranteed:
.Signature must be guaranteed by a member
of a Medallion Signature Program.
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)
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Section 9. Uniform Commercial Code. Subject to the registration provisions
hereof, the 2008 Bonds shall be fully negotiable and shall have all the qualities of negotiable paper,
and the owner or owners thereof shall possess all rights enjoyed by the holders of investment
securities under the provisions of the Uniform Commercial Code - Investment Securities. The
principal of and interest on the 2008 Bonds shall be paid, and the 2008 Bonds shall be transferable,
free from and without regard to any equities between the Town and the original or any intermediate
owner of any 2008 Bonds or any setoffs or cross-claims.
Section 10. Execution. The 2008 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 2008 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 2008 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 payment therefor or before the issuance of the 2008 Bonds upon transfer or
exchange, any or all of the persons whose manual or facsimile signatures appear thereon shall have
ceased to fill their respective offices. The Mayor and the Town Clerk shall, by the execution of a
signature certificate pertaining to the 2008 Bonds, adopt as and for their respective signatures any
facsimiles thereof appearing on the 2008 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 2008 Bonds.'
No 2008.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 shall
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not be necessary that the same officer or employee sign the certificate of authentication on all of the
2008 Bonds issued hereunder. By authenticating any of the 2008 Bonds initially delivered pursuant
to this Ordinance, the Registrar shall be deemed to have assented to the provisions of this Ordinance.
Section 11. Resistration. Transfer and Exchange.
A. Except as provided in Section 12, records for the registration and transfer of
the 2008 Bonds shall be kept by the Registrar, which is hereby appointed by the Town as registrar
i.e., transfer agent) for the 2008 Bonds. Upon the surrender for transfer of any 2008 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 shall enter such transfer on
the registration records and shall authenticate and deliver in the name of the transferee or transferees
a new 2008 Bond or Bonds of a like aggregate principal amount and of the same maturity and
interest rate, bearing a number or numbers not previously assigned. 2008 Bonds may be exchanged
at. the. Registrar for an equal aggregate principal amount of 2008 Bonds of the same maturity and
interest rate in authorized denominations.. The Registrar shall authenticate and deliver a 2008 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 ; 2008 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. The person in whose name any 2008 Bond shall be registered on the
registration records kept by the Registrar shall be deemed and regarded 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 5 hereof with, respect to, payment of interest; and, subject to such exception,
payment of or on account of either principal. or interest on an y 2008 Bond shall be made only to'or
upon the written order of the registered owner thereof or his legal representative, but such
registration may be changed upon transfer of such.2008 -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 2008 Bond *to.the extent of the sum or sums so paid.
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C. If any 2008 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 2008 Bond or Bonds of a like
aggregate principal amount and of the same maturity and interest rate, bearing a number or numbers
not previously assigned. If such lost, stolen, destroyed, or mutilated 2008 Bond shall have matured
or is about to become due and payable, the Registrar may direct the Paying Agent to pay such 2008
Bond in lieu of replacement.
D. The officers of the Town are authorized to deliver to the Registrar fully
executed but unauthenticated 2008 Bonds in such quantities as may be convenient to be held in
custody by the Registrar pending, use as herein provided.
Section 12. Book Entrv.
A. Notwithstanding any contrary provision of this Ordinance, the 2008 Bonds
initially shall be evidenced by one 2008 Bond for each maturity and interest rate in denominations
equal to the aggregate principal amount of the 2008 Bonds of such maturity and interest rate. Such
initially-delivered 2008 Bonds shall be registered in the name of "Cede & Co.7 as nominee for DTC,
the Depository for the2008 Bonds. The 2008 Bonds may not thereafter be transferred or exchanged
except:
(1) to any successor of DTC or its nominee, which successor must be both a
"clearing corporation" as defined in Section 4-8-102(a)(5), C.R.S. and a qualified and registered
"clearing agency" under Section 17A of the Securities Exchange Act of 1934, as amended; or
(2) upon the resignation of DTC or a successor or new Depository under clause
(1) or this clause (2) of this paragraph A, or a determination by the Council that DTC or such
successor or a new Depository is no longer able to carry out its functions, and the designation by the
Council of another Depository acceptable to the Council and to the Depository then holding the2008
Bonds, which new Depository must be both a "clearing corporation". as defined in Section 48-
102(a)(5), C.R.S. and aqualified and registered "clearing agency" under Section 17A of.the
Securities Exchange Act of 1934, as amended, to carry out the functions of DTC or such successor
new Depository; or
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(3)" upon the resignation of DTC or a successor or new Depository under clause
(1) above or designation of a new Depository pursuant to clause (2) above, or a determination of the
Council that DTC or such successor or Depository is no longer able to carry out its functions, and the
failure by the Council, after reasonable investigation, to locate another Depository under clause (2)
to carry out such Depository functions.
B. In the case of a transfer to a successor of DTC or its nominee as referred to in
clause (1) or (2) of paragraph A hereof, upon receipt of the outstanding 2008 Bonds by the Registrar
together with written instructions for transfer satisfactory to the Registrar, a new 2008 Bond for each
maturity and interest rate of the 2008 Bonds then Outstanding shall 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 for the 2008 Bonds as
provided in clause (3) of paragraph A hereof, and upon receipt of the Outstanding 2008 Bonds by the
Registrar, together with written instructions for transfer satisfactory to the Registrar, new 2008
Bonds shall be issued in denominations of $5,000 or any integral- multiple thereof, registered in the
names of such Persons, and in such authorized denominations as are requested in such written
transfer instructions; however, the Registrar shall not be required to deliver such new 2008 Bonds
within a period of less than 60 days from the date of receipt of such written transfer instructions.
C. The Council and the Registrar shall be entitled to treat the Registered Owner
of any 2008 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 and the
Registrar shall have no responsibility for transmitting payments or notices to the beneficial owners of
the 2008 Bonds held by DTC or any successor or new Depository named pursuant to paragraph A
hereof. - .
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D. The Council and the Registrar shall endeavor to cooperate with DTC 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 2008 Bonds upon maturity 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 '13. Deliverv of 2008 Bonds and Disposition of Proceeds. When the 2008
Bonds have been duly executed by appropriate Town officers and authenticated by the Registrar, the
Town shall cause the 2008 Bonds to be delivered to the Purchaser on receipt of the agreed purchase
price. The 2008 Bonds shall be delivered in such denominations as the Purchaser shall direct (but
subject to the provisions of Sections 11 and 12 hereof).
The proceeds of the sale of the 2008 Bonds 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 2008 Bonds:
A. First, there shall be credited to the "Town of Vail, Colorado, Sales Tax
Revenue Refunding Bonds, Series 2008 Escrow Account" (the "Escrow Account' which.is hereby
created, an amount which shall be sufficient, together with other Town funds available for such
purpose, to establish any initial cash balance remaining uninvested and to buy Federal Securities to
effect the Refunding. Project.
B. Second, the balance of the proceeds shall be deposited with the Paying Agent
to be applied for the purpose of paying, together with any other money available therefor, costs of
issuance of the 2008 Bonds.
Section 14. Use of Monevs in Income Fund. Subject to Section 16, so long as any
Bonds shall be Outstanding, either as to principal or interest, the Pledged Revenues shall, 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:
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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 Pavments. 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
1-989 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
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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 20 hereof, only to prevent deficiencies in
the payment of the principal of and the interest on the Bond's 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 Borid Insurer) deposit a Bond Reserve
Insurance Policy in the Reserve Fund in full or partial satisfaction ofthe Reserve Fund Requirement.
Any such Bond Reserve Insurance Policy shall be payable on any date on which moneys will be
required to be withdrawn 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.
All cash and investments in the Reserve Fund shall be transferred to the Bond Fund
for payment of principal and interest on the Bonds before any drawing may be made on any Bond
Reserve Insurance Policy credited to the Reserve Fund in lieu of cash. Payment of any amounts
owing to the provider of a Bond Reserve Insurance Policy shall,be made prior to replenishment of
any such cash amounts. Draws on all Bond Reserve Insurance Policies on which there is available
coverage shall be made on a pro-rata basis (calculated by reference to the coverage then available
thereunder) after applying all available cash and investments in the Reserve Fund. Payment of
amounts owing to the providers of Bond Reserve Insurance Policies. shall be made on a pro-rata
basis prior to replenishment of any cash drawn from the Reserve Fund.
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The Town shall notify the Paying Agent and the provider of Bond Reserve Insurance
Policy of the necessity for a claim upon the Bond Reserve Insurance Policy at least three Business
Days prior to each date upon which interest or principal is due on the Bonds. The Paying Agent shall
give notice to the Bond Insurer of any failure of the Town to make timely payment in full of any
deposit required to be made under the Registrar Agreement.
If the tax covenant contained in Section 19.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
Reserve Fund Requirement, the maximum amount of proceeds of such series of Bonds which may be
deposited to the Reserve Fund pursuant to Section 19.K. shall be deposited to the Reserve Fund upon
the issuance of such series of Bonds and Pledged Revenues shall 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 Unon Deposits to Maturitv or Redemption 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. Defravins Delinauencies 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 frill 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
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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
of such withdrawal. If at any time the Town shall 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
shall 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 - Sales Tax
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(f) of the Tax Code.
Any amounts in excess of those required to be on deposit therein by Section 148(f) of the Tax Code
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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 Reserve Insurance Policy 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. Pavment for Subordinate Obligations., 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
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 15. General Administration of Funds. The funds designated.in Sections 13
and 14 hereof shall be administered as .follows subject to the limitations stated in Section 19.K.
hereof
A. Budget and Aonronriation of Funds. The sums provided to make the
payments specified in Section 14 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 2008 Bonds,.
either as to principal or interest, are Outstanding and unpaid. '.No provision of any constitution,
statute, charter, ordinance, resolution or other order or measure enacted after the issuance of the 2008
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 2008 Bonds remain
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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 2008 Bonds. -
B. Places and Times of Denosits. Each of the special funds created in Section 14
hereof shall be maintained by the Town as separate book 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 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 14 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 shall 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
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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 15.C. and Section 15.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 investment would con-
travene the covenant concerning arbitrage in Section 19.K. hereof.
D. No Liabilitv 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 15.C. hereof
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 15.B. and 15.C.
hereof, appropriately secured according to the laws of the State, shall be deemed lawful money of the
United States.
Section 16. Lien on Pledged Revenues. The 2008 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 J 998A Bonds and, the 2002B Bonds. The 2008 Bonds are equitably and
ratably secured by a lien on-the Pledged Revenues.
The creation, perfection, enforcement, and priority of the pledge of revenues to secure
or pay the Bonds as provided herein shall be governed by Section 11-57-208 of the Supplemental
Act and this Ordinance. The revenues pledged for the payment of the Bonds, as received by or
otherwise credited to the Town, shall immediately be subject to.the lien of such pledge without any
physical delivery, filing, or further act. The lien of such pledge on the revenues pledged for payment
of the Bonds and the obligation to perform the contractual provisions made herein shall have priority
over any or all other obligations and liabilities of the Town. The lien of such pledge shall be valid,
binding, and enforceable as against all persons having claims of any kind in tort, contract, or
otherwise against the Town irrespective of whether such persons have notice of such liens. .
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Section 17. Additional Bonds.
A. Limitations Uoon 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 2008 Bonds (the "Additional Bonds"), except as provided in this Section. 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 equaled 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 Sales 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 Sales 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 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.
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B. Certificate of Revenues. A written certification by a certified public,
accountant who is not an employee of the Town that the requirements.of Paragraph 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 2008. 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 2008
Bonds.
D. Superior Obligations Prohibited. Nothing in this Ordinance shall 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 2008 Bonds.
Section 18. Refunding Obligations.
A. Generallv. If at any time after the 2008 Bonds, or any part thereof, shall 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
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 any2008 Bonds are Outstanding, refunding obligations payable
from the Pledged Revenues may be issued on a parity with the unrefunded Bonds only if-
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(1) Prior Consent. The Town first receives the consent of the owner or owners of
the unrefunded Bonds and the Bond Insurer of such unrefunded Bonds,.if any; or
(2) Reauirements 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 17 hereof.
Section 19. Protective Covenants. The Town hereby additionally covenants and
agrees with each and every owner of the 2008 Bonds that:
A. Use of 2008 Bond Proceeds. 'The Town will proceed with the Refunding
Project without delay and with due diligence.
B. Pavment of 2008 Bonds. The Town will promptly pay the principal of and
interest on every 2008 Bond issued hereunder and secured hereby on the dates and in the manner
specified herein and in said 2008 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: Dutv to Imnose 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
the rights 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,
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 36 of this Ordinance.
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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 in the Sales 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 bonds
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
Sales 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% in aggregate principal amount of the then Outstanding 2008 Bonds, as provided in Section 36 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 Legality 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
Town's obligations under this Ordinance or any of the transactions contemplated by this Ordinance
or the Sales. Tax Ordinances.
The Town shall, to the extent permitted by law, defend the validity and legality of this
Ordinance, the Sales Tax and the Sales Tax,.Ordinances against all claims, suits and proceedings
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which would diminish or impair the Pledged Revenues. Furthermore, the Town shall 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 2008
Bonds when due.
E. Further Assurances. At any and all 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 all 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 all 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 2008 Bonds against all
claims and demands of all Persons whomsoever.
F. Conditions Precedent. Upon the issuance of any of the 2008 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 2008 Bonds shall exist, have happened and have
been performed, and the 2008 Bonds, together with all other obligations of the Town, shall 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 2008 Bonds remain Outstanding, proper books
of record and account will be kept by the Town, separate and apart from all other records and
accounts, showing complete and correct entries of all transactions relating to the Pledged Revenues
and the funds created or continued by this Ordinance.
H. Audits. The Towri further agrees that it will, within 180 days following the
close of each fiscal' year, cause an audit of such books and accounts to be made by a certified public
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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 2008 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 the Purchaser
1. Performine 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 2008 Bonds and after the
;Refunding Project, other than the 1998A Bonds and the 2002B Bonds, there are 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 2008 Bonds that it will not take any action or omit to take any action with respect to the 2008
Bonds, the: proceeds thereof, any other funds of the Town or any facilities re-financed with the
proceeds of the 2008 Bonds if such action or omission (i) would cause the interest on the 2008
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 2008 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 2008 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 the2008
Bonds 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 determines that neither the Town nor any entity subordinate thereto
reasonably anticipates issuing more than $10,000,000 face amount of bonds or any other similar
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obligations during calendar year 2008. For the purpose of Section 265(b)(3)(B) of the Code, the
Town hereby designates the 2008 Bonds as qualified tax-exempt obligations.
L. Town's Existence. The Town will maintain its corporate identity and
existence so long as any of the 2008 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 2008 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 13 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. Suretv 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. Prei udicial Contracts and Action Prohibited. No contract will 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. Continuinu 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 19.Q shall not constitute an "event of default" under Section 22 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 2008 Bond shall be
entitled to damages for the Town's non-compliance with its obligations under this Section 19.
However, the owners of the 2008 Bonds may enforce specific performance of the obligations
contained in this Section 19.Q by any judicial proceeding available.
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Section 20. Defeasance. When the 2008 ,Bonds have been fully paid both as to
principal and-interest, and all amounts due under the Financial Guaranty Agreement have been paid,
all obligations hereunder shall be discharged and the 2008 Bonds shall no longer be.deemed to be
Outstanding for any purpose of this Ordinance, except as set forth in Section 19.K. hereof. Payment
of any 2008 Bonds shall be deemed, made when the Town has placed in escrow.with a Trust Bank an
amount sufficient (including the known minimum yield from Federal Securities) to meet all
requirements of principal and interest on such 2008 Bonds as the same become due to maturity. The
Federal Securities shall 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 shall 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 2008 Bonds of any maturity,
the Registrar shall, if requested by the Town, institute a system to preserve the identity of the
individual 2008 Bonds or portions thereof so defeased, regardless of changes in bond numbers
attributable to transfers and exchanges of 2008 Bonds; and the Registrar shall be entitled to
reasonable compensation and reimbursement of expenses from the Town in connection with such
system.
Section 21. 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
ate
printing of the 2008 Bonds, the procuring of bond insurance, entering into and executing appropri
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 2008 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 Continuing Disclosure Certificate, the Financial Guaranty Agreement
and the Letter of Representations hereby are approved, and the Town shall enter into and perform its
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obligations under the Purchase Contract, the Registrar Agreement, the Escrow Agreement, the
Continuing Disclosure Certificate.' the Financial, Guaranty Agreement and the Letter of
Representations in substantially the forms of such documents as on file with the Town, with only
such changes therein as are required by the circumstances and are not inconsistent herewith or, with
respect to the Purchase Contract, with such changes as may be approved by the Mayor, the Town
Manager or the Finance Director and subject to the parameters and restrictions'contained in this
ordinance; and the Mayor and Town Clerk are hereby authorized and directed to execute and deliver
such documents as required hereby.
The Preliminary Official Statement in the form hereafter approved by any of the
Mayor, the Town Manager or Finance Director is hereby approved and the officers of the Town are
authorized and directed to participate in the preparation of, and to execute and deliver, the Official
Statement. The execution of the Official Statement by the Mayor shall be conclusively deemed to
evidence the Town's approval of the form and contents thereof.
Any of the Mayor, the Town Manager or the Finance Director has the independent
authority to accept any proposal of the Underwriter to purchase the 2008 Bonds and to execute a
Purchase Contract and a Sale Certificate in connection therewith, as well as the authority to make
determinations in relation.to the 2008 Bonds contained in such Sale Certificate subject to the
parameters and restrictions contained in Section 5 of this Ordinance. Further the Mayor, the Town
Manager and the Finance Director are hereby independently authorized to execute and deliver a
commitment for the issuance of a municipal bond insurance policy by a bond insurer on the 2008
Bonds, if any, and enter into any related documents or agreements subject to the Supplemental Act to
secure the payment of principal of and interest on the Bonds.
Section 22. Events of Default. Each of the following events is hereby declared an
"event of default:"
A. Nonpavment of Principal. If payment of the 'principal of any of the 2008
Bonds in connection therewith, shall not be made when the same shall become due, and payable at
maturity; or
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B. Nonpavment of Interest. If payment of any installment of interest on the 2008
Bonds shall not be,made when the same becomes due and payable; or
C. Incapable to Perform. If the Town. shall for any reason be rendered incapable
of fulfilling its obligations hereunder; or
D. Default of anv Provision. If the Town shall default in the due and punctual
performance of its covenants or conditions, agreements and provisions contained in the 2008 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 30 days after written notice specifying such default
and requiring the same. to-be remedied shall have been given to the Town by the owners of not less
than 25% in aggregate- principal amount of the 2008 Bonds then. Outstanding.
Section 23. Remedies. Upon the happening and continuance of any event-of
default as provided in Section 22 hereof, the 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 an y combination of such remedies.
Section 24. Duties .Upon Default. Upon the happening of any of the events of
default as provided in Section 22.of.this Ordinance, the Town, in addition, will do and perform all
proper acts on behalf of and for the owners of the 2008 Bonds to protect and preserve the security
created.for the payment of the 2008 Bonds and to insure the payment of the principal of and interest
on said 2008 Bonds promptly as the same become due.. Proceeds derived from the Pledged
Revenues, so long as any of the 2008 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
terns hereof and to the.extent provided herein, and used for the purposes herein provided.
Section 25. Replacement of Registrar or Paving Auent. If the Registrar or Paying
Agent initially appointed hereunder shall resign; or if the Town shall determine to replace such
Registrar or Paying Agent, the Town may, upon notice mailed to each owner of an y 2008 Bond at his
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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 (e. iz., capital, surplus, and undivided profits), however denominated, of
not-less than $10,000,000. It shall 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.
Section 26. 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
temporary reinvestment of the deposits therein or any part thereof in Federal Securities (as defined
therein), to pay the Refunded Bond Requirements as the same become due.
Section 27. 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 Town Council may hereafter determine.
Section 28. Insufficiencv of Escrow Account. If for any reason the amount in the
Escrow Account shall at any time be insufficient for the purpose of Sections 26 and 27 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 29. Exercise of Option. The Town Council-has elected and does hereby
declare its intent to exercise on the behalf of and in the name of the Town its option to redeem the
Refunded Bonds on the Redemption Date.
Section 30. No Recourse against Officers and Agents: Pursuant to Section 11=57-
209 of the Supplemental Act, if a member of the Town Council, or any officer or agent of the Town
acts in good faith, no civil-recourse shall be available against such member, officer, or agent for
payment of the principal or interest on the 2008 Bonds. Such recourse shall not be available either
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directly or indirectly through the Town Council or the Town, or otherwise, whether by virtue of any
constitution, statute, rule of law, enforcement of penalty, or otherwise.. By the acceptance of the
2008. Bonds and as.a part of the. consideration of their sale or purchase, any person purchasing or
selling such 2008 Bond specifically waives any such recourse.
Section 31. Bond Insurer as Owner. So long as the issuer of a municipal bond
insurance policy, if any, is not then in default under such bond insurance. policy, the bond insurer
shall be deemed to be the Owner of all 2008 Bonds insured by it for purposes of exercising remedies,
waiving defaults, or granting consents pursuant to this Ordinance..
Section 32. Conclusive Recital. Pursuant to Section 11-57-210 of the
Supplemental Act, the 2008 Bonds shall contain a recital that they are issued pursuant to the
Supplemental, Act. Such recital shall be conclusive evidence of the validity and the regularity of the
issuance of the 2008 Bonds after their delivery for value.
Section 33. Limitation of Actions. Pursuant to Section 11-57-212 of the
Supplemental Act, no legal or equitable action brought with respect to any legislative acts or
proceedings of the Town in connection with the authorization or issuance of the 2008 Bonds,
including but not limited to the adoption of this Ordinance, shall be commenced more than thirty
days after the authorization of the 2008 Bonds.
Section 34. 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
specific 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 35. Repealer. 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.
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Section 36. Amendment. After any of the 2008 Bonds have been issued, this
Ordinance shall 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 2008
Bonds, adopt such ordinances supplemental hereto (which supplemental-amendments shall thereafter
form a part hereof) for anyone or more or all of the following purposes:
(1) to cure any ambiguity, or to cure, correct of 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 2008 Bonds;
(2) to subject to the lien of this Ordinance additional revenues, p,? Verties
or collateral;
(3) to grant or confer upon the Registrar for the benefit of the registered
owners of the Bond's any additional rights, remedies, powers, or authority that may lawfully be
granted to or conferred upon the registered owners of the Bonds; or
(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 owners of 66% in aggregate principal amount of the 2008 Bonds
Outstanding at the time of the adoption of such amendatory or supplemental ordinance; provided,
however, that, without the written consent of the owners of all of the 2008, Bonds adversely affected
thereby, no such Ordinance shall have the effect of permitting:
(1) An extension of the maturity of any 2008 Bond authorized by this
Ordinance; or
(2) A reduction in the principal amount of any 2008 Bond or the rate of
interest thereon; or
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(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 2008 Bonds required for
consent to such amendatory or supplemental ordinance; or
(5) The establishment of priorities as between 2008 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 2008 Bonds then Outstanding.
Copies of any waiver, modification or amendment to.this Ordinance shall be delivered
to any entity then maintaining a rating on the 2008 Bonds and to the. Paying Agent and Registrar.
Section 37. Amendments to the Ordinances authorizing the Issuance of the 1998A
Bonds and. 2002B Bonds. The definition of "Bond Reserve Insurance Policy" contained in
Ordinance No. 12, Series of 1998, authorizing the issuance of the 1998A Bonds and Ordinance No.
2, Series of 2002B,' authorizing the issuance of the 2002 Bonds, is hereby amended to read as
follows:
Bond Reserve Insurance Policv: any insurance policy, surety bond, irrevocable letter
of credit or similar instrument deposited in or credited to the Reserve Fund in lieu of or in partial
substitution for moneys on deposit therein. The issuer providing any such Bond Reserve Insurance
Policy shall be an issuer which then is rated in one of the four highest investment grade rating
categories by one or more nationally recognized organizations which regularly rate such obligations.
Section 38. Ordinance Irrenealable. After any of the 2008 Bonds herein authorized
are issued, this Ordinance shall constitute a contract between the Town and the owners of the 2008
Bonds, and shall be and remain irrepealable until the 2008 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 Town
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 Tern,
and Town Clerk, and by the certificate of publication.
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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 2nd of September, 2008, and ordered published in full together with notice of hearing in the Vail
Dailv, 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 beset for Tuesday, September 16,
2008; at 7:00 p.m. at the Town Hall:
INTRODUCED, READ, APPROVED, AND ORDERED PUBLISHED in full, in the
Vail Dailv., a newspaper of general circulation in the Town :of Vail on second and final reading by a
vote of to ; this 16th day of September,-2008.
Mayor
Town of Vail, Colorado
(SEAL)
Attest:
Town Clerk
Town of Vail; Colorado
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f ?
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
."Town Council"), had and taken at an open, regular meeting of the Town Council held at the Town
Hall, in Vail, Colorado, on September 2, 2008, convening at the hour of 7:00 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 7 to 0 of the members of the Town.Council at
the regular meeting of the Town Council held at the Town Hall, in Vail, Colorado, on September 2,
2008, convening at the hour of 7:00 p.m., as follows:
Name "Yes" "No" Absent _ Abstain_
Dick Cleveland X
Andy Daly X
Farrow Hitt X
I" Mark Gordon X
Margaret Rogers X
Kim Newbury X
Kevin Foley X.
3. That the ordinance, as well as the notice of public hearing was published after
first reading in the Vail Dailv, a newspaper of general circulation within the Town on September 6,
2008. The affidavit of publication is attached hereto as Exhibit A.
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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 16, 2008, by an affirmative vote of a majority of the members of the Town Council as
follows:
Name "Yes" "No" Absent Abstain
Dick Cleveland
Andy Daly
'Farrow Hitt
Mark Gordon
Margaret Rogers
Kim Newbury
Kevin Foley
5. The members of the Town 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 Town Council which might
prohibit the adoption of said Ordinance.
7. The Ordinance was published in full in the Vail Daily. a newspaper of general
circulation in the Town, on , 2008, and the affidavit of publication is attached hereto as
Exhibit B.
8. Notice of the meetings of September 2, 2008 and September 16, 2008, 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.
WITNESS my hand and the seal of said Town affixed this September _, 2008.
Town Clerk
(SEAL)
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EXI'IIBIT A
ATION AFTER FIRST READING C OF PUBLIC , 2008)
AFFIDA published
A-1
EXHIgiT B
EXI)ING
SECOND R-
LICp`T ipNAFTER
2008)
AFFIDAVIT ?F P p bushed
g-1
EXHIBIT C
2008
notice of the Meetings mber lb,
of September' 2, 2008 and S te
C-1