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HomeMy WebLinkAboutagenda.council.regular.20190128 CITY COUNCIL AGENDA January 28, 2019 5:00 PM I. Call to Order II. Roll Call III. Scheduled Public Appearances IV. Citizens Comments & Petitions (Time for any citizen to address Council on issues NOT scheduled for a public hearing. Please limit your comments to 3 minutes) V. Special Orders of the Day a) Councilmembers' and Mayor's Comments b) Agenda Amendments c) City Manager's Comments d) Board Reports VI. Consent Calendar (These matters may be adopted together by a single motion) a) Minutes - January 14, 2019 b) Resolution #14, Series of 2019 - Separation, Release and Waiver Agreement for Steve Barwick VII. Notice of Call-Up VIII. First Reading of Ordinances a) Ordinance #1, Series of 2019 - Small Lodge Preservation Program Extension IX. Public Hearings a) Resolution #11, Series of 2019 - 730 E Cooper Ave (Base 1 Lodge) Extension of Vested Rights b) Resolution #12, Series of 2019 - 330 E Main St. - Hotel Jerome - Temporary Use Request c) Ordinance #3, Series of 2019 - Refinancing Existing Castle Creek Energy Center Debt to Achieve Interest Rate Savings and a Shorter Remaining Duration d) Resolution #13, Series of 2019 - Wireless Regulations Policy Resolution X. Action Items XI. Executive Session a) C.R.S. 24-6-402 (a) purchase, acquisition, lease, transfer or sale of any real, personal, or other property interest, (b) Conferences with an attorney for the local public body for the purposes of receiving legal advice on specific legal questions, (e) Determining positions relative to matters that may be subject to negotiations; developing strategy for negotiations; and instructing negotiators - related to 312 W Hyman Ave; and (f) (I) Personnel matters P1 XII. Adjournment Next Regular Meeting February 11, 2019 COUNCIL’S ADOPTED GUIDELINES · Make Decisions Based on 30 Year Vision · Tone and Tenor Matter · Remember Where We’re Living and Why We’re Here COUNCIL SCHEDULES A 15 MINUTE DINNER BREAK APPROXIMATELY 7 P.M. P2 Regular Meeting Aspen City Council January 14, 2019 1 SCHEDULED PUBLIC APPEARANCES .................................................................................................. 2 CITIZEN COMMENTS ............................................................................................................................... 2 CITY COUNCIL COMMENTS ................................................................................................................... 2 BOARD REPORTS ...................................................................................................................................... 2 CONSENT CALENDAR ............................................................................................................................. 2  Resolution #1, Series of 2019 – Designating the Public Place for the Posting of Notices of Public Meetings ........................................................................................................................................................ 3  Resolution #7 and #8, Series of 2019 – Re- appointment of Brooke Peterson and Ted Gardenswarts – Administrative Hearing Officers ................................................................................................................... 3  Resolution #9 and #10, Series of 2019 – Appointment of Pete Strecker and Sara Ott to Burlingame Housing Inc. Board of Directors ................................................................................................................... 3  Resolution #3, Series of 2019 – Reconstruction of existing golf bunkers ............................................ 3  Resolution #4, Series of 2019 – 2018 Growth Management Allotment Carry Forward Review ......... 3  Minutes – December 10, 2018 and January 7, 2019 ............................................................................. 3 ORDINANCE #3 SERIES OF 2019 – Refinancing Existing Castle Creek Energy Center Debt to Achieve Rate Savings and a Shorter Remaining Duration .......................................................................................... 3 ACTION ITEM – Short term City work priorities discussion ...................................................................... 4 P3 VI.a Regular Meeting Aspen City Council January 14, 2019 2 At 5:00 p.m. Mayor Skadron called the regular meeting to order with Councilmembers Hauenstein, Myrin, Frisch and Mullins present. SCHEDULED PUBLIC APPEARANCES Swear in new Police Officer – Audrey Radlinsky. Kirk Wheatly, APD, said it is an honor to introduce Audrey. She grew up in Michigan and is the oldest of four. She moved here 8 years ago and started with the APD three years ago as a community response officer. She was promoted to patrol and went through the CMC academy. She hit the road last week for patrol. She is very motivated and a great asset to the department. Audrey said she is honored to serve the city and the citizens. She is enthusiastic and grateful. Mayor Skadron swore in Audrey. CITIZEN COMMENTS 1. Lee Mulcahy again asked council for a public hearing. CITY COUNCIL COMMENTS Councilwoman Mullins gave thanks to everyone who put on Winterskol. The sculptures were fabulous. Bauhaus kicked off last week too. She attended a housing and stability summit. She lives on Hyman across from the ice rink. I’ve been asked to see if the snow plow can pile up the snow some time other than 3 in the morning. It is really loud. Councilman Myrin said regarding the executive session last Monday. It was my mistake to not push for a meeting sooner than a week outlining the city manager transition plan. I apologize for leaving everyone hanging for a week. Tonight, I want to establish a process for naming an interim city manager and limit the role for the current city manager in regard to hiring and personnel and map a process to put a new city manager in place. It is a long overdue process to start anew with the culture of the city manager. Regarding allowing the current city manager to stay in his home for an additional 6 months and receive health coverage for 6 months, I’m following the golden rule on this. Councilman Hauenstein welcomed everyone that is here for gay ski week. The interest expressed at the Bauhaus meeting was phenomenal. It was a great kick off to a year long process. He also attended the homelessness meeting. It was well attended by valley people in an attempt to try to unite our efforts. Councilman Frisch gave a hats off to ACRA and Winterskol. Thanks to the Mayor for hosting some of the Sister Cities kids. It was a great trip. Keep up the good work Jim True. Mayor Skadron gave thanks to the Winterskol team. Congrats to Lissa and the Bauhaus team. Welcome gay ski week. BOARD REPORTS Councilman Frisch said for Nordic the snow is skiing great. No fare. Lots of great skiing. Mayor Skadron said RFTA approved a resolution for posting notices. There are also two new members, The Mayor of New Castle is the chair and the Mayor of Snowmass is the vice chair. CONSENT CALENDAR Reso #4 – Growth Management carry forward Councilman Myrin said last year the memo mentioned nothing was carried forward. Can we do same this year. Phillip Supino, community development, replied that is the recommendation. P4 VI.a Regular Meeting Aspen City Council January 14, 2019 3 Councilwoman Mullins said she supports the recommendation. She asked for a deeper look at what is still in the pipeline or close to coming up. Councilman Frisch said he is fully supportive. Reso #9 – BHI board appointments Councilwoman Mullins asked why there is not a council member on this board. Linda Manning, city clerk, replied there has never been a council person. Councilwoman Mullins said she wants to make sure we are proactive if it needs to be a council member. · Resolution #1, Series of 2019 – Designating the Public Place for the Posting of Notices of Public Meetings · Resolution #7 and #8, Series of 2019 – Re- appointment of Brooke Peterson and Ted Gardenswartz – Administrative Hearing Officers · Resolution #9 and #10, Series of 2019 – Appointment of Pete Strecker and Sara Ott to Burlingame Housing Inc. Board of Directors · Resolution #3, Series of 2019 – Reconstruction of existing golf bunkers · Resolution #4, Series of 2019 – 2018 Growth Management Allotment Carry Forward Review · Minutes – December 10, 2018 and January 7, 2019 Councilman Frisch moved to adopt the consent calendar; seconded by Councilman Hauenstein. All in favor, motion carried. ORDINANCE #3 SERIES OF 2019 – Refinancing Existing Castle Creek Energy Center Debt to Achieve Rate Savings and a Shorter Remaining Duration Pete Strecker, finance, said this will refinance 2 million in outstanding debt that was issued in 2008. It has an interest rate of 3.85 to 4.75 depending on the bond. We can refinance to 2.9 at a fixed rate for the next 7 years. It will have a savings of 113,000 dollars. Mayor Skadron said it is purely a cost savings. Mr. Strecker replied correct. Councilman Myrin asked has council ever objected to these refinancings where we save money. Mr. Strecker replied he didn’t think so. Councilman Hauenstein said these were bought down previously. Mr. Strecker replied yes. That saved roughly $380,000 in December. With this the total will save around 500,000 dollars. We are retiring the bonds and taking out a loan with a private placement bank. Councilwoman Mullins moved to read Ordinance #3, Series of 2019; seconded by Councilman Frisch. All in favor, motion carried. ORDINANCE NO. 3 (SERIES OF 2019) AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY OF ASPEN, COLORADO, OF ITS GENERAL OBLIGATION ELECTRIC UTILITY REFUNDING LOAN, SERIES 2019; AND APPROVING A LOAN AGREEMENT AND CERTAIN OTHER DOCUMENTS IN CONNECTION THEREWITH; AND PROVIDING OTHER MATTERS RELATING THERETO. Councilman Frisch moved to adopt Ordinance #3, Series of 2019 on first reading; seconded by Councilwoman Mullins. Roll call vote. Councilmembers Myrin, yes; Frisch, yes; Hauenstein, yes; Mullins, yes; Mayor Skadron, yes. Motion carried. P5 VI.a Regular Meeting Aspen City Council January 14, 2019 4 ACTION ITEM – Short term City work priorities discussion Mayor Skadron said we are amidst a change of leadership and have to make sure the city functions. I want us to discuss what we believe our top three to five priorities are. In reality, we can’t do everything we ask staff to do for us. I desire now to give direction as to what the city’s priorities are. 1. Start the process to hire a firm to manage the hiring process for the city manager. 2. APCHA governance. 3. Ensure day to day operations are running. 4. Small cell 5G issue. 5. Continue with capital projects including the city hall project. These are in no particular order. Councilwoman Mullins said taking a step back for city hall and senior management. We need to develop a detailed transition plan and develop criteria of what we will be asking for a city manager. Rather than jumping into hiring a head hunter do some deep analysis as to what we are looking for. Secondly day to day priorities as to what is going on. APCHA should be up there and getting the database done. Lastly, after talking to Andrea today the 5G cell issue needs addressed much sooner than later. Councilman Hauenstein said level 1 should be appointing an interim city manager and establishing a process for hiring a new one. Formalizing the terms of Steve’s departure and agreement so it is memorialized. Second level is review of the call up procedures, 5G, APCHA governance, day to day operations and capital projects. Councilman Myrin said it would be great to have a list of current priorities as to what the city is working on. He is not sure why there isn’t a list constantly in progress. It is really difficult for me to provide guidance without knowing what the city is working on. Councilman Frisch said we were sent an open ended inquiry. It would be helpful to get some advice from staff as to what they can realistically tackle. I would love to see in priority what they want to work on. It took eight years to get an APCHA conversation going and we are dancing with the county. I would like to continue that discussion. There are two tracks that we can concurrently take. I would like to get a contract for an interim city manager then see what our options are. I think we should get going on that fairly soon knowing it will take some time. My number one disappointment in July was lack of outreach and communication and six month later it still is. This is not 100 percent on staff’s shoulders. Mayor Skadron said the process around hiring the city manager has two parts. What are we working on and the second question is who is getting us there. This speaks to appointing an interim city manager. We have basically two options. The first is to negotiate with Sara Ott, assistant city manager. If we have confidence with her I would ask, Jim, Steve and Alissa to help us going forward. The first order of business would be Steve’s separation agreement would get signed then Sara’s agreement would be signed. If council chooses not to appoint Sara, we would then ask staff to come back to council with a plan as to how to recruit an interim city manager. Councilman Hauenstein asked does Sara want to be interim city manager. Sara Ott, assistant city manager said it is important the community have a smooth transition and I am happy to help with that. Councilman Hauenstein said he has confidence Sara can fill that position. Councilman Frisch said Steve, you laid out a pretty good process. This is really in Alissa’s and Jim True’s hands. I’m supportive of whatever the team comes up with. It would be great to have Sara as an interim city manager. Councilwoman Mullins said she has great confidence in Sara. Can we do this simultaneously. Jim True, city attorney, said we do envision a simultaneous discussion process. What we would hope to do is bring the documents necessary as soon as we can. The goal is the 28th at the latest. Councilman Myrin said there is some value in trying to get some clarity in this before Tuesday so there is stability in both the community and government. What is the process. Mayor Skadron said each parties’ lawyers will work together to go through the interest of each party. Mr. True said we can get clarity tonight. Sara wants these discussions in an open meeting. There are terms we need to negotiate and get P6 VI.a Regular Meeting Aspen City Council January 14, 2019 5 in writing. Getting the documents by Tuesday may be challenging. Councilman Myrin asked what terms would we discuss privately versus in public. Councilman Frisch said there is the Barwick package and the Ott package. What we’ve heard talked about with Mr. Barwick, is there anything that gives us pause. Now is the time to flush that out. We are a little less certain as to what may be in a Sara thing. Councilman Myrin said the big question becomes from with Steve I support the extra 6 months of housing and health insurance. Mr. True said you said an extra 6 months. Health care would be 6 months from his date of separation. Councilman Myrin said I’m suggesting 6 months beyond that so it aligns with his rate of pay. Mr. True said as I understood Steve’s request for the insurance, the city would be paying Cobra amounts. His request was 6 months of cobra payments, not a year. The agreement acknowledges the prior contract of 1 year salary and PTO payouts. The additional terms are the 1 year, additional 6 months of housing and the 6 moths of Cobra. The only relevant thing is the date of separation. Mr. Barwick said we left the date open ended. I think we will come up with a no later than date. I think we will leave it 3 weeks on either side. I’m thinking March 1st. Mr. True said does Sara step in to the interim position before March 1st. Mayor Skadron said the question is getting the interim in place. If we have confidence in Sara. Councilman Myrin said I have confidence in Sara. It is awkward being presented with one person and being asked if we have confidence in them. Councilman Hauenstein said she has been with us for a year and a half. If we are presented with someone from outside it would extend the time. Councilman Myrin said I was suggesting a deeper bench from inside. I support Sara. Mayor Skadron said council is expressing confidence in Sara serving as an interim. Ms. Ott said regarding the transition, Steve and I have committed that we will make this as smooth as we can. We need to put a hard date on this for this to work. She is asking to fill the other assistant city manager position as an interim position. We need to fill the CBO position by a specific date. We also need to fill the communications director position. Councilman Frisch said I appreciate you sharing those thoughts. I agree for some of these senior spots balancing the work that needs to be done and allowing the city manager to look for these top people. I’m pretty sure the positions you want to fill, I’ll support. I firmly believe one person should have the final say on a lot of issues and we need to have one boss. That date needs to happen sooner rather than later. Councilwoman Mullins said for an interim assistant city manager, I think you definitely need to have that. Are you thinking within the organization. Ms. Ott said I think we have talent within the organization. My leadership philosophy is really simple. It is give people work worth doing. I view the city manager’s job to be a facilitator. This is not my first time running an organization. Councilwoman Mullins said she supports filling the CBO. When is he leaving. Ms. Ott replied as CBO, March 1. He is staying on to do some updates to the building code. Councilwoman Mullins said I support the communications director as well. Mr. Barwick said on January 28th you do both documents. At that time, we will transfer all power to Sara and I will be here in an advisory role. Councilman Hauenstein said there are three processes, the Sara piece, the Barwick piece and the process piece. He would like to see the additional 6 months of housing and insurance contingent on Barwick actively seeking a new position. Mr. Barwick replied that he does not have a problem with that. Councilman Frisch said the next step is getting input on the work plan. Staff is looking for some clarity. We have to put together a job description on behalf of the community. Councilman Myrin said what Adam closed with is most important. We need to have that conversation as to what a successful profile is. Alissa Farrell, human resources, said we will be recommending an RFP process to develop a profile to move this forward. P7 VI.a Regular Meeting Aspen City Council January 14, 2019 6 Councilman Frisch said normally Alissa would be moderating that conversation. One option is for you to moderate that for the five of us. Another option is to have other people involved. Ms. Farrell said that will be included. Councilman Hauenstein said it is our responsibility to make the hire. Mayor Skadron said it is very likely the final decision will be made by the new city council. No candidate is taking the job not knowing who is on the city council. Our responsibility is to get the process in place. Councilman Frisch said he is not worried about what will happen in March or April. We need to get a timeline in place and go from there. Councilman Hauenstein said it looks like a minimum four month process. After the election as people become Mayor elect or City Council person elect he suggested they become involved in the process as well. Councilman Myrin said until the 28th, the community raised some issues particularly around the chief building official hiring. Have the members changes. Mr. Barwick said I stepped off and Sara stepped on. Councilman Myrin said the more things like that that staff and we know the better. Mr. True said I drafted a proposed separation agreement that needs to be reviewed. At this point there would be a set end date, no later than March 1st. Either party could terminate it with 3 weeks notice before then. We are recognizing as soon as an interim city manager is in place I am using the term advisor to the interim city manager. Councilman Hauenstein said I don’t sense any areas of contention on this. Mr. True replied I don’t either. I think we are on the same page. Councilman Frisch moved to adjourn at 6:40 p.m.; seconded by Councilwoman Mullins. All in favor, motion carried. Linda Manning City Clerk P8 VI.a City Attorney’s Office MEMORANDUM TO: MAYOR and COUNCIL MEMBERS FROM: JAMES R. TRUE DATE: January 24, 2019 RE: Separation, Release and Waiver Agreement for Steve Barwick ══════════════════════════════════════════════════════════════════ REQUEST OF COUNCIL: Resolution No. 14 (Series of 2019) is presented to Council for consideration of the adoption of the Separation, Release and Waiver Agreement for Steve Barwick as a result of his resignation following a request for such from Council. DISCUSSION: Following discussions in executive session and at a public meeting held on January 14, 2019, Council directed staff to prepare and submit to Council a Separation, Release and Waiver Agreement with the current City Manager Steve Barwick. The attached agreement provides the specific terms specified by the previously adopted Employment Agreement with Mr. Barwick, as well as other terms proposed by Council and Mr. Barwick and terms addressing certain legal requirements. The agreement has been reviewed by Mr. Barwick and his attorney and staff believes that it is consistent with the direction of Council. In addition, because additional consideration beyond the Employment Agreement is being offered pursuant to this agreement, specifically extended occupation of his residence and payment of COBRA premiums, in order to comply with certain federal and state regulations, a revocation period is included in the separation agreement. In the event that the separation agreement was revoked by Mr. Barwick, the agreement for the additional consideration would be deemed revoked and separation could become immediate with only payment pursuant to the Employment Agreement. Finally, based on the Agreement, Mr. Barwick will continue to serve as City Manager until an interim city manager is in place or until he is otherwise separated from the City, which shall be no later than March 1, 2019. P9 VI.b RESOLUTION # 14 (Series of 2019) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A SEPARATION, RELEASE AND WAIVER AGREEMENT BETWEEN THE CITY OF ASPEN AND STEVE BARWICK AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a Separation, Release and Waiver Agreement between the City of Aspen and Steve Barwick, a true and accurate copy of which is attached hereto as Exhibit “A”; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby approves that Separation, Release and Waiver Agreement between the City of Aspen and Steve Barwick, a copy of which is attached hereto and incorporated herein and does hereby authorize the Mayor to execute said agreement on behalf of the City of Aspen. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 28th day of January 2019. _______________________ Steven Skadron, Mayor I, Linda Manning, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held January 28, 2019. ________________________ Linda Manning, City Clerk P10 VI.b 1 | P a g e SEPARATION, RELEASE AND WAIVER AGREEMENT FOR STEVE BARWICK The following Separation, Release and Waiver Agreement (“Agreement”) between Steve Barwick, the undersigned Employee (referred to as “Barwick”) and the City of Aspen together with its past and present officers, directors, employees, predecessors, successors and assigns, concerns Barwick’s employment with the City of Aspen and separation from employment. Section A – Separation Barwick’s separation from employment with the City of Aspen shall be effective upon three weeks’ notice by either party but no later than March 1, 2019. Until separation, Barwick shall receive all compensation to which he is entitled, including but not limited to continued wages at the current annualized rate of $195,229, and accrued paid time off (PTO) leave less appropriate payroll and withholding tax deductions required by law. Barwick acknowledges that he is not aware of any fact that would support a claim for unpaid wages under the Fair Labor Standards act or state laws as all compensation has been paid to him. The parties acknowledge that upon the hiring and placement of an Interim City Manager, Barwick will be deemed an advisor to the Interim City Manager, although his pay shall continue as if he continued as City Manager until the date of separation set forth above. Section B – Consideration 1. The City of Aspen will, pursuant to the contract dated April 26, 2010, by and between Barwick and the City of Aspen, and as consideration for the promises set forth in this Agreement, pay: a. All benefits to which Barwick is entitled as set forth in the City of Aspen Policy Manual, which shall be paid upon separation. b. A lump sum payment of $195,229, equivalent to one year’s salary, shall be due and payable to Barwick no later than twenty (20) days following the effective date of separation set forth above, less deductions for federal and state withholding and payroll taxes as required by law. The City of Aspen shall treat such payment as compensation from which appropriate federal and state withholding and payroll taxes shall be deducted. 2. In addition, as further consideration for this agreement, the City agrees to the following: P11 VI.b 2 | P a g e a. If Barwick elects timely continued coverage under COBRA, the City will pay Barwick's health and dental COBRA payments on behalf of Barwick and Barwick’s spouse to continue both parties’ coverage for a period of six months from the effective date of separation set forth above. The City's provision of such COBRA payments will immediately cease if during the COBRA payment period Barwick becomes eligible for group health insurance coverage through a new employer or Barwick ceases to be eligible for COBRA continuation coverage for any reason, including plan termination. In the event Barwick becomes covered under another employer's group health plan or otherwise ceases to be eligible for COBRA during the COBRA payment period, Barwick shall immediately notify the City. b. The date of sale set forth in the Occupancy and Resale Deed Restriction, Agreement, and Covenant dated February 14, 1996, is hereby extended for a period of six months, so long as Barwick is actively pursuing other employment. If Barwick accepts employment outside of the City of Aspen, the extended period shall last no greater than three months following acceptance of employment outside of the City of Aspen. Section C - Release of City of Aspen and Covenant Not to Sue In consideration for the payments set forth in Section B above, Barwick agrees to forever, unequivocally, and unconditionally release the City of Aspen from and covenants not to sue or assert against the City of Aspen and all of its related entities, directors, members, trustees, officers, current and former employees, agents, insurers, attorneys, predecessors, successors, and assignees (the City of Aspen and all the foregoing other persons and entities are referred to collectively in this agreement as the “Releasees”), any and all causes of action, whether at law or in equity, pertaining to or arising from the employment relationship of the parties and the termination of such employment relationship based in whole or in part upon any act or omission occurring on or prior to the date of termination of employment, whether negligent or intentional, without regard to Barwick’s present actual knowledge of any such act or omission. By signing this Agreement, Barwick is expressly waiving Barwick’s right to any relief, recovery, attorneys’ fees, or other monies in connection with any such complaint, charge, or proceeding brought against the Releasees. This restriction applies only to civil claims that may be filed in court directly by Barwick, or anyone acting on Barwick’s behalf, including suits brought on Barwick’s behalf by Government Agencies (as defined below). The Agreement does not affect Barwick’s right to file a charge with or participate in an investigative proceeding before the Equal Employment Opportunity Commission, state civil rights agency, or another federal, state, or local government agency or to communicate or cooperate with any such agency in its investigation, none of which shall constitute a breach of this Agreement. However, Barwick is expressly waiving Barwick’s right to any relief, recovery, attorneys’ fees, or other monies in connection P12 VI.b 3 | P a g e with any such complaint, charge, or proceeding brought against the Releasees, regardless of who filed or initiated any such complaint, charge, or proceeding. Causes of action as used in this Section shall mean all claims, causes, judgments, damages, losses, liabilities, and demands of any kind and nature whatsoever, whether intentional or negligent, known or unknown, in law or in equity, individually or as part of a class action, occurring on or prior to the date of execution of this Agreement, arising under any constitution, federal, state, or local law(s), including but not limited to: 1. All claims or demands, directly or indirectly, relating to or arising out of Barwick’s employment relationship with the City of Aspen, or the termination of that relationship; 2. All claims for violation of any federal, state or municipal statute, including but not limited to: a. Title VII of the Civil Rights Act of 1964, as amended; b. the Colorado Anti-Discrimination Act (CADA); c. the Family and Medical Leave Act (FMLA); d. the Americans with Disabilities Act (ADA); e. the Age Discrimination in Employment Act (ADEA); 3. All claims arising from any theory under common law such as breach of contract, express or implied, promissory estoppel, detrimental reliance, wrongful discharge, tortious interference with contract rights, infliction of emotional distress, and defamation; 4. All claims for violation of any federal, or any state, constitution, law, or statute; 5. All claims arising out of any other laws and regulations relating to employment or employment discrimination, including claims arising under common law including any tort, contract, or equitable theory; and 6. All claims for attorneys’ fees and costs. This General Release and Covenant not to sue does not apply to claims under federal, state, or local law (statutory, regulatory, or otherwise) that may not be lawfully waived and released, such as vested retirement benefits (if any), COBRA rights, unemployment compensation, and workers’ compensation. Section D – ADEA and Older Workers Benefit Protection Act Release In addition to the General Release contained in Section C, Barwick knowingly, voluntarily, and irrevocably discharges and releases Releasees and each of them from any claims arising under the ADEA. Barwick acknowledges that Barwick has been informed pursuant to the federal Older Workers Benefit Protection Act of 1990 that: P13 VI.b 4 | P a g e 1. Barwick is advised to and has consulted with an attorney before signing this Agreement. 2. Barwick does not waive rights or claims under the federal Age Discrimination in Employment Act that may arise after the date this Agreement is executed. 3. Barwick has twenty-one (21) days from the date of receipt of this Agreement to consider this Agreement. Barwick acknowledges that if Barwick signs this Agreement before the end of the twenty-one (21) day period, it will be Barwick’s personal, voluntary decision to do so and that Barwick has not been pressured to make a decision sooner. 4. Barwick has seven (7) days after signing this Agreement to revoke the Agreement and the Agreement will not be effective until that revocation period has expired. The rescission must be hand delivered within the seven days to Alissa Farrell, Human Resources Director, 130 South Galena Street, Aspen, CO 81611. 5. This agreement shall not be effective or enforceable until after the seven (7) day revocation period has expired. Barwick understands that Barwick will not receive any the benefits set forth in Section B.2., if Barwick voids his signature or revokes this Agreement. Further, Barwick acknowledges that if the agreement is revoked, Council may request immediate separation, in which case the benefits set forth in Section B.1., will be paid pursuant to his contract of employment dated April 26, 2010. Section E – Non-Disparagement Barwick agrees not to make any false remarks about the City of Aspen pertaining to or arising from the employment relationship of the parties and the termination of such employment relationship. Section F – Miscellaneous 1. Severability. If any provision of this Agreement is declared by any court of competent jurisdiction to be invalid for any reason, such invalidity shall not affect the remaining provisions. Such remaining provisions shall be fully severable, and this Agreement shall be construed and enforced as if such invalid provisions never had been inserted in the Agreement. 2. Receipt of Agreement. Barwick acknowledges that Barwick received this Agreement on January 29, 2019. 3. Entire Agreement: This Agreement represents the entire agreement and understanding between Barwick and the City of Aspen, Barwick’s employment with and separation from the City of Aspen, and the events leading thereto and associated therewith. This Agreement supersedes and replaces all prior agreements and understandings concerning Barwick’s P14 VI.b 5 | P a g e relationship with the City of Aspen. This Agreement cannot be amended unless said amendment is reduced to writing and signed by Barwick and an authorized representative of the City. 4. Colorado Open Records Act. This document may be deemed public record under the Colorado Open Records Act. 5. Choice of Law. The parties agree that the laws of the State of Colorado shall govern this Agreement. Barwick hereby acknowledges the following: I have carefully read the above and I execute it voluntarily, fully understanding and accepting the provisions of this Agreement in its entirety and without reservation after having had sufficient time and opportunity to consult with my legal advisors prior to executing this Agreement. I have been advised to consult with an attorney prior to executing this Agreement. In agreeing to sign this Agreement I have not relied on any statements or explanation made by the City of Aspen. I have had at least twenty-one (21) days to consider this Agreement. I understand that if I do not return this Agreement signed by me to the City of Aspen within the twenty-one (21) day consideration period this offer will expire. I understand that I may revoke and cancel the Agreement within seven (7) days after signing it by serving written notice upon City of Aspen. Employee: _________________________________ ________________________ Steve Barwick Date For the City of Aspen: _________________________________ ________________________ Steven Skadron, Mayor Date ATTEST: __________________________________ Linda Manning P15 VI.b First Reading, Ordinance No. 1, Series 2019 Small Lodge Preservation Program Extension January 28, 2019 Page 1 of 3 MEMORANDUM TO: Mayor and City Council FROM: Phillip Supino, Principal Long-Range Planner THRU: Jessica Garrow, Community Development Director RE: Ordinance #1, Series of 2019 - Small Lodge Preservation Program 5-Year Extension MEETING DATE: January 28, 2019 SUMMARY: The proposed ordinance will extend the existing Small Lodge Preservation Program for five years. The current program, authorized by Ordinance 15, 2015, is set to expire in May of 2020. Given the popularity and success of the program, staff received direction from Council in October 2018 to extend the program. The proposed ordinance would authorize that five-year extension while preserving the existing benefits and financial authorization. STAFF RECOMMENDATION: Staff recommends approval of Ordinance 1, Series 2019, on First Reading. BACKGOUND The Small Lodge Preservation Program (SLPP) was adopted in May 2015. The program is the result of extensive outreach to small lodge operators and a City policy objective to incentivize the preservation and continued success of the remaining small lodges in Aspen. Small Lodges were identified as an important component of Aspen’s tourist bed base. They are also particularly challenging to operate in competition with larger lodges and private vacation rental properties. The attractiveness of residential redevelopment for many small lodge properties poses another ongoing challenge to these important, community character defining lodges. With these challenges and the small lodges’ role in diversifying Aspen’s bed-base in mind, Council adopted Ordinance 15, Series 2015, creating the SLPP. The program is incentive-based, offering a range of benefits in exchange for agreements from participating lodges to continue to operate as a lodge for an agreed-upon period. The following incentives are included in the program (see Ordinance 1, 2019 for additional information): · Planning Assistance – one-on-one consultations with Community Development staff to help guide and navigate the develop, planning, and permitting process; · Express Lane for Land Use Reviews – expedite land use reviews to cut down project time and costs; · Express Lane for Building Permit Reviews – expedite building permit reviews to cut down project time and costs; P16 VIII.a First Reading, Ordinance No. 1, Series 2019 Small Lodge Preservation Program Extension January 28, 2019 Page 2 of 3 · Building Code Assessment – assistance in identification of suggested and required building and energy code upgrades to improve structural safety and efficiency; · Small Lodge Energy Efficiency Program – administered in partnership with the Climate Action Office and CORE, offers free energy audits and subsidies for energy efficiency improvement to improve building energy efficiency and reduce operating costs; · Building Permit Fee Discounts – discounted building permit fees on a sliding scale, from 25 to 75 percent, relative to the length of City agreement to continue lodge operations, from five to 20 years; · Right-of-Way Improvements – reimbursement of a portion of the cost to make right-of-way improvements in accordance with the Engineering Design Standards. Collectively, these incentives represent significant project cost savings for lodges enrolled in the program. These cost savings are intended to lower the financial barrier for small lodges to make improvements while continuing to operate. To the extent that some require legal commitments to remain a small lodge for a specified amount of time, the program delivers on Council’s long-term goal of preserving the existing small lodge bed base. The program was established by ordinance in 2015. At the time, the program was scheduled to sunset in May of 2020, five years after adoption. At an October work session, Council directed staff to extend the program sunset for five years from the original sunset date to 2025. Ordinance 1, Series 2019 provides that extension, as well as making some minor amendments described below. DISCUSSION To date, the program has secured commitments from two lodges to remain operating lodges for five years in exchange for program benefits. Additionally, the Energy Efficiency portion of the program, administered by the Climate Action Office staff in partnership with CORE, has financed hundreds of thousands of dollars in efficiency upgrades of small lodges. In 2018 alone, the energy efficiency program has allocated $73,726 in CoA and CORE funds to finance $143,726 in projects across six lodges. Without the SLPP program, many of these efficiency improvements would not have been undertaken. In addition to incentivizing small lodges to remain, the resulting energy savings and emissions reductions have the ancillary benefit of delivering on Council’s climate action goals. The proposed ordinance includes a handful of minor amendments. First, the two lodges which enrolled after the creation of the program, the Prospector Lodge and Shadow Mountain Lodge, were added to the list of approved program participants. Second, the size threshold for eligible lodges was amended from 50 “rooms” to “keys”. This change ensures that lodges eligible to enroll in the program meet the intent of being “small”, as keys represent a smaller room configuration than rooms. Third, an additional criterion for eligibility in the program was added, preventing new Boutique Lodges (which are lodges with between 10 and 14 units) from being eligible to participate. This change ensures that program resources are targeted at those lodge properties which best deliver on the community’s lodging preservation goals. SLPP is a highly successful and popular program. In outreach efforts over the previous two months, Community Development staff has received only positive comments from member lodges. (See P17 VIII.a First Reading, Ordinance No. 1, Series 2019 Small Lodge Preservation Program Extension January 28, 2019 Page 3 of 3 Exhibit A, Small Lodge Operator Comments.) Since the program was created in 2015, two additional lodges which meet the qualifying criteria have enrolled in the program. Extending the SLPP for an additional five years provides Council with an established means of supporting the existing city bed base and delivers on several Council goals, City policies and community benefits. This is particularly true given the relatively low annual budget allocation of $141,000 to fund the program (much of which goes unspent in each budget year), and the high level of participation. Extending the program would extend the current budget authority through the same five-year time period. STAFF RECOMMENDATION Staff recommends Council approve Ordinance 1, Series 2019 to extend the Small Loge Preservation Program for five years, expiring in 2025. Should Council approve the ordinance at first reading, staff will return with final ordinance language for Council consideration at the February 11, 2019 Council meeting. RECOMMENDED MOTION (ALL MOTIONS ARE PROPOSED IN THE AFFIRMATIVE): “I move to approve Ordinance 1, Series of 2019, on First Reading.” CITY MANAGER COMMENTS: ______________________________________________________________________________ ______________________________________________________________________________ ATTACHMENTS: Exhibit A – Ordinance 1, Series 2019 Exhibit B – Small Lodge Operator Comments P18 VIII.a Small Lodges Preservation Program Extension Ordinance 1, Series 2019 Page 1 of 3 ORDINANCE No. 1 (Series of 2019) AN ORDINANCE OF THE ASPEN CITY COUNCIL EXTENDING THE SMALL LODGE PRESERVATION PROGRAM TO ASSIST SMALL LODGES TO CONTINUE OPERATING AS SMALL LODGES. WHEREAS, pursuant to Section 26.310.020(A), the Community Development Department received direction from City Council to explore code amendments related to the creation of a small lodge preservation program to bolster the bed base in both traditional hotel units, particularly in small lodges; and, WHEREAS, the Community Development Department conducted existing conditions research to understand Aspen’s existing lodge inventory, the occupancy and rate characteristics of Aspen’s bed base, the economics of upgrading, expanding, or developing lodge products, the latest visitor demographics, and the types of lodging product most in demand; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted extensive Public Outreach with community members, the Aspen Chamber Resort Association, condominium and lodging owners, managers, and stakeholders, the Planning & Zoning Commission, the Historic Preservation Commission, and City Council regarding lodging; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on December 1, 2014 and December 8, 2014, the City Council directed staff to draft a code amendment to assist small lodges to continue operating as small lodges; and, WHEREAS, the Community Development Director recommended approval of the proposed amendments to Title 26, the City of Aspen Land Use Code to implement a small lodge preservation program; and, WHEREAS, the Aspen City Council reviewed the proposed code amendments and finds that the amendments met or exceeded all applicable standards pursuant to Chapter 26.310.050; and, WHEREAS, the City Council found that the proposed ordinance properly implemented the City’s goals related replenishing and diversifying the lodging inventory, as articulated in the 2012 Aspen Area Community Plan; consequently, Council adopted Ordinance 15 (Series of 2015); and, WHEREAS, Ordinance 15 (Series of 2015) is set to expire in 2020; and, WHEREAS, this Ordinance is proposed to extend the Small Lodge Preservation Program for five (5) years beyond Ordinance 15’s initial term; and, WHEREAS, the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health, safety, and welfare; and P19 VIII.a Small Lodges Preservation Program Extension Ordinance 1, Series 2019 Page 2 of 3 NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO THAT: Section 1: Ordinance 15 (Series of 2015) shall be and is hereby extended for a period of five (5) years beyond its initial term. Section 2: Any scrivener’s errors contained in the code amendments approved by Ordinance 15 (Series of 2015) or set forth herein, including but not limited to mislabeled subsections or titles, may be corrected administratively following adoption of the Ordinance. Section 3: Effect Upon Existing Litigation. This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 4: Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 5: Effective Date. In accordance with Section 4.9 of the City of Aspen Home Rule Charter, this Ordinance shall become effective thirty (30) days following final passage. Section 6: Public Hearing A public hearing on this ordinance shall be held on the 11th day of February 2019, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the 28th day of January 2019. Attest: __________________________ ____________________________ Linda Manning, City Clerk Steven Skadron, Mayor FINALLY, adopted, passed and approved this 11th day of February, 2019. Attest: __________________________ ___________________________ Linda Manning, City Clerk Steven Skadron, Mayor P20 VIII.a Small Lodges Preservation Program Extension Ordinance 1, Series 2019 Page 3 of 3 Approved as to form: ___________________________ James R. True, City Attorney P21 VIII.a From:Jeff Bay To:Phillip Supino Subject:RE: Small Lodge Preservation Program - Update Date:Friday, December 21, 2018 3:20:32 PM Attachments:image001.png Hi Phillip, We are supporters of the SLPP and SLEEP initiatives, we are glad to hear that they are potentially continuing. Please let me know if I can assist in supporting your efforts! Jeff — Jeff Bay C.H.A. Managing Director HayMax Hotels Hotel Aspen | Molly Gibson Lodge | Hotel Ketchum | Tamarack Lodge (P) 970.205.7006 (F) 970.920.1379 jeff.bay@haymaxhotels.com From: Phillip Supino <phillip.supino@cityofaspen.com> Sent: Friday, December 21, 2018 3:05 PM To: charley@annabelleinn.com; jeanine@aspenmountainlodge.com; mneiley@comcast.net; aml@aspenmountainlodge.com; mhunt@mdevco.com; sstunda@aol.com; chaletlisl@yahoo.com; lodge@chaletlisl.com; scott@hearthstonehouse.com; hoteldurant@sopris.net; bschaefer@sopris.net; Jeff Bay <jeff.bay@haymaxhotels.com>; michael@haymax.com; Aaron@haymax.com; craig@themelvilles.com; craig@mca.travel; sqlodge@rof.net; michael@stmoritzlodge.com; stay@tyroleanlodge.com; shadowmt@comcast.net; wally.wilson@comcast.net; janet@prospectorcondos.com Subject: Small Lodge Preservation Program - Update   Dear Lodge Owners and Operators:   Greetings from City Hall, and happy holidays.  I hope you are all well and enjoying a busy holiday season.  Given how busy this time of year is, I will be brief.   Two months ago, City Council directed the Planning staff to extend the Small Lodge Preservation Program with all of its financial benefits and incentives in place for an additional five years.  The original program was scheduled to expire in 2020.  Council cited the success of and community support behind the program as strong reasons for extending it.    P22 VIII.a I wanted to reach out to all of you, inform you of Council’s direction, and seek any feedback you may have about staff’s plans to begin the process of extending to program in January of 2019.  With your support, we plan on presenting an ordinance for Council in late January.  If any of you feel that the program does not have sufficient value to extend, or have other comments about the program, we would love to hear from you.  Please feel free to email, call, or meet with me in person after the New Year to discuss any of the above.  Happy New Year!   Cheers,   Phillip Supino, AICP Principal Long-Range Planner   130 S. Galena St. Aspen, CO 81611   p: 970.429.2767 c: 970.319.0833 www.cityofaspen.com   www.aspencommunityvoice.com   Notice and Disclaimer: This message is intended only for the individual or entity to which it is addressed and may contain information that is confidential and exempt from disclosure pursuant to applicable law.  If you are not the intended recipient, please reply to the sender that you have received the message in error and then delete it.  Further, the information or opinions contained in this email are advisory in nature only and are not binding on the City of Aspen.  If applicable, the information and opinions contain in the email are based on current zoning, which is subject to change in the future, and upon factual representations that may or may not be accurate.  The opinions and information contained herein do not create a legal or vested right or any claim of detrimental reliance.   P23 VIII.a From:WALTER WILSON To:Phillip Supino; sml Subject:Re: Small Lodge Preservation Program - Update Date:Friday, December 21, 2018 3:26:47 PM Attachments:image009.png Phillip, Your program has been very helpful to Shadow Mountain Lodge for several energy efficient improvements. The cost savings help us to continue to offer low priced condominium rental opportunities to literally hundreds of guests, each year. Happy to see the program extended. Best regards and Happy holidays! Wally Wilson Board president On December 21, 2018 at 4:05 PM Phillip Supino <phillip.supino@cityofaspen.com> wrote: Dear Lodge Owners and Operators: Greetings from City Hall, and happy holidays. I hope you are all well and enjoying a busy holiday season. Given how busy this time of year is, I will be brief. Two months ago, City Council directed the Planning staff to extend the Small Lodge Preservation Program with all of its financial benefits and incentives in place for an additional five years. The original program was scheduled to expire in 2020. Council cited the success of and community support behind the program as strong reasons for extending it. P24 VIII.a I wanted to reach out to all of you, inform you of Council’s direction, and seek any feedback you may have about staff’s plans to begin the process of extending to program in January of 2019. With your support, we plan on presenting an ordinance for Council in late January. If any of you feel that the program does not have sufficient value to extend, or have other comments about the program, we would love to hear from you. Please feel free to email, call, or meet with me in person after the New Year to discuss any of the above. Happy New Year! Cheers, Phillip Supino, AICP Principal Long-Range Planner 130 S. Galena St. Aspen, CO 81611 p: 970.429.2767 c: 970.319.0833 www.cityofaspen.com www.aspencommunityvoice.com Notice and Disclaimer: This message is intended only for the individual or entity to which it is addressed and may contain information that is confidential and exempt from disclosure pursuant to applicable law. If you are not the intended recipient, please reply to the sender that you have received the message in error and then delete it. Further, the information or opinions contained in this email are advisory in nature only and are not binding on the City of Aspen. If applicable, the P25 VIII.a information and opinions contain in the email are based on current zoning, which is subject to change in the future, and upon factual representations that may or may not be accurate. The opinions and information contained herein do not create a legal or vested right or any claim of detrimental reliance. P26 VIII.a MEMORANDUM TO: Mayor Skadron and City Council THRU: Jessica Garrow, Community Development Director FROM: Mike Kraemer, Senior Planner MEETING DATE: January 28, 2019 RE: 730 E. Cooper Ave (Base 1 Lodge), Extension of Vested Rights – Resolution No. 11, Series 2019 – Public Hearing APPLICANT/OWNER: 730 E. Cooper, LLC REPRESENTATIVE: Chris Bendon, BendonAdams LLC LOCATION: 730 E. Cooper Ave. Commonly known as the Buckhorn Lodge. PID#: 273718227004 CURRENT ZONING & USE Located in the Commercial Lodge (CL) zone district which includes a previously approved Planned Development (PD) overlay. The site is developed with a mixed used building constructed in the 1960’s. PROPOSED LAND USE: The Applicant requests an 18 month extension of vested rights for land use approvals associated with the Base 1 mixed-use lodge. STAFF RECOMMENDATION: Staff recommends a 12 month extension of vested rights for the project. Figure 1. 730 E. Cooper Ave, existing Buckhorn Lodge, looking north. P27 IX.a Page 2 of 5 REQUEST OF COUNCIL: The Applicant is requesting the following land use approval: • Extension or Reinstatement of Vested Rights to extend the vested rights associated with the Base 1 development, pursuant to Land Use Code Section 26.308.010 C., Extension or Reinstatement of Vested Rights. (City Council is the final review authority who may approve or deny the proposal). BACKGROUND: The subject property is located at 730 E. Cooper Avenue on the northwest corner of the S. Original Street and E. Cooper Avenue intersection. The subject property is approximately 6,927 square feet in size and is located within the Commercial Lodge (CL) Zone District. The property is developed with a mixed use lodge building commonly known as the Buckhorn Lodge. The Buckhorn Lodge building was constructed in the 1960’s and contains 1st floor commercial space, 2nd floor lodge units, and a small amount of subgrade commercial net leasable space. In 2015, the subject property received Conceptual Planned Development Review (PD), Growth Management approval for lodge pillow allotments, and Commercial Design approval for a 3 story mixed-use lodge building pursuant to Ordinance No. 2, Series 2015. At the time of this approval, the proposed lodge contains 42 lodge units that average approximately 200 square feet in size, accessory lodge unit space in three (3) subgrade basement levels, rooftop deck, and 23 onsite subgrade parking spaces. Approved interior programming for the building includes 4,592 square feet of commercial net leasable space for retail and restaurant uses and 12,051 square feet of total lodge floor area. Total floor area for the project is approximately 17,260 square feet. This approved floor area amount does not include 3 separate subgrade levels that are exempted from floor area calculations. This ordinance also approved a number of variations from the underlying CL zone district regulations relating to increased height for rooftop bathrooms, off-street parking, and reduced employee generation rates for affordable housing. Figure 2. Base 1 Rendering from corner of Cooper Ave & Original St: P28 IX.a Page 3 of 5 The Conceptual approval was rendered void due to a Planned Development Detail submission deadline that was not met. The Applicant filed an application and City Council passed Resolution No. 28, Series 2016, approving a reinstatement of this ordinance and, as a condition of the approval, removed any zoning variations that were previously granted. To memorialize these changes, Ordinance 6, Series 2016 was approved and amended Ordinance 2, Series 2015 to eliminate the zoning variations consistent with the reinstatement resolution. Detailed PD and Final Commercial Design approval was granted pursuant to Planning and Zoning Commission Resolution No. 4, Series 2016. This approval included minor modifications to project dimensions relating to lodge unit size and reduced commercial net leasable floor area. A condition of this Detailed approval required the applicant to enter into a Development Agreement with the City. This agreement was executed and recorded pursuant to Reception No. 636058. Currently, Base 1 complies with all dimensional requirements in the underling CL Zone District and the project is vested until July 7th, 2019. At the conclusion of this vesting period, current land use regulations become applicable unless an extension or reinstatement is granted by City Council. For reference, the Applicant has included all relative ordinances, resolutions, and plan sets with the application submittal. STAFF COMMENTS: Vested Rights Extension: The Applicant is requesting an 18 month extension of vested rights. Approval of the request would provide the Applicant the ability to continue to rely on the existing approvals that are in place for the project and to submit for a building permit within the extended vesting period. I f the 18 month extension is approved, vesting would extend for the property until January 7th, 2021. If the extension request is not approved and the Applicant does not submit for a building permit within the established vesting period, the existing approvals would become invalid and further City review under new Land Use Code standards would be required. An extension of vested rights is solely at the discretion of the City Council pursuant to the standards outlined in Land Use Code Section 26.308.010(C). Staff responses to the criterion in this code section can be viewed in Exhibit A. The Applicant has stated that the request to extend vested rights will provide the ability to further analyze the details of the project in preparation for building permit submittal. To date, the Applicant has paid the costs associated with the land use review for the Base 1 project and has undertaken surveying, engineering, and architecture expenditures to record the plat and the approved plan set. The previous approvals did not include any additional performance requirements of the project. Current Land Use Code Analysis: Since the approval of the 2016 Base 1 ordinances, a moratorium was enacted that resulted in several Land Use Code amendments that changed parking requirements, commercial design standards, affordable housing mitigation requirements, and dimensional standards in certain zone districts. The following provides an outline of Land Use Code amendments that have been enacted since the Base 1 Lodge approvals and their effect on the project: Dimensions and Uses: Certain commercial zone districts received dimensional and use alterations at the conclusion of the moratorium. None of these changes effected the CL zone district. As a result, if reviewed P29 IX.a Page 4 of 5 under the current Land Use Code, the approved Base 1 Lodge dimensions and uses would not change and compliance with the current CL Zone District standards has been achieved. Commercial Design Standards: • The Land Use Code was amended to include standards for replacement of second tier commercial space located in a basement, above a ground floor, or with an alley or courtyard access. Minimum and maximum 2nd tier replacement requirements apply to certain commercial zone districts when a remodel or new construction is proposed. While the existing Buckhorn Lodge contains 2nd tier subgrade and 2nd tier alley commercial net leasable spaces, the subject property is not located within a zone district that requires replacement of this 2nd tier space. Regardless, the project has been approved for accessory lodge uses and restaurant uses in the subgrade levels and meets the intent of the 2nd tier replacement requirement. • The current Land Use Code requires a minimum of 25% of the gross lot size be dedicated to pedestrian amenity. The current Base 1 Lodge approvals provide for a courtyard and rooftop amenity space in an amount that well exceeds the minimum pedestrian amenity required in the current Code. Parking: • The Base 1 Lodge approvals permitted 23 onsite parking spaces in the 3rd sublevel of the building. This amount of parking is compliant with the minimum Land Use Code parking requirements and exceeds the minimum by 2 spaces. Affordable Housing: • The existing Base 1 approvals used a 60% employee generation rate for the mixed-use Lodge in accordance with the Land Use Code in affect at the time of the approval. Taking into account credits for the existing Buckhorn Lodge units, existing commercial space, and the reduced employee housing mitigation incentives granted for small unit (approximately 201 square feet) lodge developments, the Base 1 Lodge is required to mitigate for 1.97 FTE’s. The current Land Use Code requires a 65% employee generation rate for both commercial and lodge uses. Though nominal, the current Land Use Code dictates that the mitigation requirement increase by 0.098 FTE’s, for a total of 2.068 FTE’s. • The current Land Use Code requires that the existing Buckhorn Lodge commercial net leasable space mitigate for employees generated at a rate of 18%. Existing commercial net leasable space on the 1st floor and basement of the building totals 4,372 square feet. The current Land Use Code employee housing mitigation calculation would require an additional 0.369 FTE’s be mitigated. STAFF DISCUSSION: The Base 1 Lodge approvals are vested until July 7th, 2019. If the extension request is approved, vested rights for the project would extend until January 7th, 2021 providing the Applicant the ability to rely on the existing approvals and prepare for building permit submission. Base 1 Lodge is compliant with CL zone district dimensions and no variations have been granted to the existing project. Land Use Code amendments as a result of the recent moratorium would not fundamentally change the approved project. It should be noted that the approved 201 square foot lodge unit size can be considered small relative to other lodges in Aspen and would provide diversification to the existing lodging base. If constructed, the Base 1 mixed use lodge satisfies a P30 IX.a Page 5 of 5 fundamental goal of the 2012 Aspen Area Community Plan (AACP) to “replenish our lodging inventory to encourage a diverse visitor base” (Themes of the AACP, Page 7). Staff is concerned about the length of the requested extension and the uncertainty of construction commencing on the property for the approved project. Simply put, if the Applicant does not intend to build the approved Base 1 Lodge, then Council should consider not approving the extension request or severely limiting the timeframe of a potential extension. However, the Applicant has represented that the extension of vested rights is needed to continue to work out the details of the project in preparation for building permit submission. Staff is cognizant that building permit preparation can take considerable amounts of time and resources in relation to the detailed engineering and architectural drawings required for submittal. To this end, Staff recommends that a more reasonable timeframe for an extension of vested rights be considered. Staff recommends a 12 month extension of vested rights for the project to provide the Applicant additional time to continue to work on a building permit application. If Council is amenable to a 12 month extension, vested rights for the project would extend until July 7th, 2020. RECOMMENDATION: Staff recommends that Council pass a motion to approve the Base 1 Extension of Vested Rights request for a period of 12 months. PROPOSED MOTION (ALL MOTIONS ARE PROPOSED IN THE AFFIRMATIVE): “I move to approve Resolution No. 11, Series of 2019, approving a 12 month extension of vested property rights for the Base 1 Lodge.” ATTACHMENTS: Exhibit A – Review Criteria/Staff Findings Exhibit B – Public comment Exhibit C – Application P31 IX.a RESOLUTION NO. 11 (Series of 2019) A RESOLUTION OF THE ASPEN CITY COUNCIL APPROVING A 12 MONTH EXTENSION OF THE VESTED RIGHTS ASSOCIATED WITH ORDINANCE NO. 2 (SERIES OF 2015), ORDINANCE NO. 6 (SERIES OF 2016), PLANNING AND ZONING RESOLUTION No. 4 (SERIES OF 2016), AND ASSOCIATED DEVELOPMENT AGREEMENT (RECEPTION No. 636058) FOR BASE 1 LODGE, LEGALLY DESCRIBED AS THE EASTERLY 9.27 FEET OF LOT Q, AND ALL OF LOTS R AND S, BLOCK 105, CITY AND TOWNSITE OF ASPEN, PITKIN COUNTY COLORADO Parcel No. 273718227904 and 273718227004 WHEREAS, the Community Development Department received an application from 730 E. Cooper LLC (represented by Chris Bendon of BendonAdams, LLC) for property located at 730 E. Cooper Ave, requesting an extension of vested rights for the previously approved Base 1 Lodge; and, WHEREAS, the Applicant has submitted a request to extend the vested rights for the property for a period of 18 months. Current vested rights for the subject property expire on July 7th, 2019. WHEREAS, pursuant to Section 26.308.010 Vested Property Rights of the Land Use Code, City Council may grant a reinstatement or extension of vested rights after a public hearing is held and a resolution is adopted; and, WHEREAS, the Community Development Director has reviewed the application and finds that from the time of the adoption of the Base 1 Lodge Ordinances, the Land Use Code has not been amended in such that it would significantly or fundamentally change the Base 1 Lodge development from its current vested approval; and, the Director further finds that a more reasonable timeframe be considered for extending the vested rights and recommends approval for a 12 month extension; and, WHEREAS, the Aspen City Council has reviewed and considered the extension of vested rights for the Base 1 Lodge under the applicable provisions of the Municipal Code as identified herein, has reviewed and considered the recommendation of the Community Development Director, and has taken and considered public comment at a public hearing; and, WHEREAS, the City Council finds that the extension of vested rights proposal meets or exceeds all applicable land use standards and that approval of a 12 month extension of vested rights proposal meets regulatory requirements; and, WHEREAS, the City Council finds that this Resolution furthers and is necessary for the promotion of public health, safety, and welfare. P32 IX.a NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ASPEN, COLORADO, THAT: Section 1: The Aspen City Council does hereby approve a 12 month extension of the vested rights for the Base 1 Lodge granted by Ordinance No. 2, (Series of 2015), Ordinance 6, (Series 2016), Planning and Zoning Commission Resolution No. 4 (Series 2016), and the associated Development Agreement recorded at Reception No. 636058. Vesting for these approvals shall expire on July 7th, 2020. The following condition applies to the property: 1. That the reinstatement and extension herein of a vested property right shall not preclude the applications or regulations which are general in nature and are applicable to all property subject to land use regulation by the City of Aspen including, but not limited to, building, fire, plumbing, electrical and mechanical codes, and all adopted impact fees (with the exception of the vested rights noted in the subject ordinances regarding affordable housing mitigation during the vesting period) that are in effect at the time of building permit, unless an exemption therefrom is granted in writing. Section 2: All material representations and commitments made by the Applicant pursuant to the development proposal approvals as herein awarded, whether in public hearing or documentation presented before the City Council, are hereby incorporated in such plan development approvals and the same shall be complied with as if fully set forth herein, unless amended by an authorized entity. Section 3: This Resolution shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 4: If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 5: A duly noticed public hearing on this Resolution was held on the 28th day of January 2019 at 5:00 PM in the City Council Chambers, Aspen City Hall, Aspen, Colorado. P33 IX.a FINALLY, adopted, passed, and approved by a ___to___ (_-_) vote on this ____ day of _________, 2019. Approved as to form: Approved as to content: __________________________ ______________________________ James R. True, City Attorney Steven Skadron, Mayor Attest: _______________________ Linda Manning, City Clerk P34 IX.a Exhibit A – Extension of Vested Rights EXTENSION OR REINSTATEMENT OF VESTED RIGHTS REVIEW CRITERIA & STAFF FINDINGS Section 26.308.010.C., Extension or Reinstatement of Vested Rights, of the City Land Use Code provides that development applications for an extension of vested rights may be approved in accordance with the following standards and requirements. 1. In reviewing a request for the extension or reinstatement of vested rights the City Council shall consider, but not limited to, the following criteria: a. The applicant’s compliance with any conditions requiring performance prior to the date of application for extension or reinstatement; Staff Finding: No items are required to be accomplished prior to applying for an extension of vested rights. The Applicant has executed and recorded the necessary documents associated with the Base 1 Lodge approvals and is in good standing. b. The progress made in pursuing the project to date including the effort to obtain any other permits, including a building permit, and the expenditures made by the applicant in pursuing the project; Staff Finding: Legal representation and associated expenditure were required to develop the approved and recorded development agreement for the project. Expenditures were also made to develop the engineering and design for the approved plan set recorded at BK 18 PG 38. The Applicant has not indicated an amount associated with these expenditures. c. The nature and extent of any benefits already received by the city as a result of the project approval such as impact fees or land dedications; Staff Finding: The Applicant, thus far, has paid the costs associated with the land use review of the Base 1 Lodge land use review and has undertaken surveying and engineering to record the approval documents. To date, no other benefits (impact fees or land dedications) were required of the development. d. The needs of the city and the applicant that would be served by the approval of the extension or reinstatement request. Staff Finding: The 2012 AACP identifies a need for a diverse visitor base through replenishing the lodging inventory that has been lost in recent history. The Base 1 Lodge would provide this inventory identified in the AACP. Given the required time and resources associated with building permit preparation for a mixed-use lodge project, a 12 month extension of vested rights would allow the Applicant to continue to work on details of the project in anticipation of a future building permit submission. Staff does not feel that an extension of vested beyond 12 months P35 IX.a serves the needs of the City and that consideration for an extension should be limited. 2. An extension or reinstatement may be in the form of a written agreement duly authorized and executed by the applicant and the City. Reasonable conditions may be imposed by the City Council including, but not limited to, compliance with any amendments to this Title adopted subsequent to the effective date of the development order and associated vested rights. Staff Finding: Staff has not included any conditions in the draft resolution. 3. If the request is for reinstatement of a revoked development order, the City Council shall determine the financial impacts of the investigation and may require the applicant to pay the reasonable costs of investigation, enforcement and reporting by City staff. Staff Finding: This is not a request for reinstatement of a revoked development order. P36 IX.a From:Matt Moran To:Mike Kraemer Subject:FW: Public Hearing for 730 E Cooper AVe Date:Wednesday, January 16, 2019 1:05:35 PM Let’s try it with your proper last name this time………. Sorry, Matthew J. Moran, Principal GreatStreet Realty Partners, LLC 1701 Golf Rd., Ste. 3-203 Rolling Meadows, IL 60008 Phone: 847-981-8090 Fax: 847-981-0047 Web: www.greatstreetrealty.com An Illinois, Indiana,and Minnesota Licensed Broker From: Matt Moran Sent: Wednesday, January 16, 2019 2:03 PM To: 'mike.kramer@cityofaspen.com' <mike.kramer@cityofaspen.com> Cc: 'Moran' <mmmjm@aol.com> Subject: Public Hearing for 730 E Cooper AVe Mike, I am the trustee for the MJM Amended & Restated Trust and the MJM Holdings II LLC which are the unit owners of 2 condominiums at Aspen Square Condominium Hotel. I just received a notice of public hearing regarding the extension of vested rights for this proposed redevelopment to be held on January 28th. I will be travelling and unavailable to attend the hearing at that date. However I want to state my objection to the proposed extension of vested rights. In addition to believing this proposed development is too dense for this property and area, I believe the fact the developer has been unable to commence construction within the stipulated time period is only further evidence of the non-viability for this type of development. I would urge the Plan Commission and City Council to reject this extension request. The City of Aspen and its residents, including property owners who may not be full time residents, do not need more high density developments; We need less. Thank you for your consideration. Sincerely, Matthew J. Moran, Principal GreatStreet Realty Partners, LLC 1701 Golf Rd., Ste. 3-203 Rolling Meadows, IL 60008 Phone: 847-981-8090 Fax: 847-981-0047 Web: www.greatstreetrealty.com An Illinois, Indiana,and Minnesota Licensed Broker Exhibit B P37 IX.a P38 IX.a 300 SO SPRING ST | 202 | ASPEN, CO 81611 970.925.2855 | BENDONADAMS.COM October 1, 2018 Ms. Jessica Garrow, AICP Community Development Director City of Aspen 130 So. Galena St. Aspen, Colorado 81611 RE: 730 East Cooper Avenue (BASE) Extension of Vested Rights Ms. Garrow: Please accept this request to extend the period of statutory vested rights for the 730 E. Cooper Avenue (Base) project. The Project received land use approvals to redevelop as a lodge project. The property is located at 730 East Cooper Avenue and is owned by 730 E. Cooper, LLC, a Colorado limited liability company. Mark Hunt is the Manager. The property is legally described as the Easterly 9.27 feet of Lot Q, and all of Lots R and S, Block 105, City and Townsite of Aspen, with parcel ID no. 2737-182-27-004. Final approval for the project was granted by the Planning & Zoning Commission on June 21, 2016 via Resolution No. 4, Series of 2016. The project is currently vested until July 7, 2019. We are requesting the vested rights be extended for an eighteen month period to January 7, 2021. The project team needs more time to iron out the details and logistics associated with the project approvals. Attached please find the project approvals and relevant documents required for a complete application. We look forward to discussing this request with you and the City Council. Please contact us with any questions or concerns. Sincerely, Chris Bendon, AICP BendonAdams LLC Exhibit C P39 IX.a 730 E. Cooper (Base) Extension of Vested Rights 300 SO SPRING ST | 202 | ASPEN, CO 81611 970.925.2855 | BENDONADAMS.COM Attachments: 1. City Council Ordinance No. 2, Series of 2015 2. City Council Ordinance No. 6, Series of 2016 3. P&Z Resolution No. 4, Series of 2016 4. Pre-Application conference summary 5. Land Use Application and Dimensional Requirements Form 6. Response to Review Criteria 7. Vicinity Map 8. Authorization to represent 9. Disclosure of ownership 10. Agreement to pay form 11. HOA compliance form 12. List of owners within 300 ft. P40 IX.a exhibit 1 P41 IX.a P42 IX.a P43 IX.a P44 IX.a P45 IX.a P46 IX.a P47 IX.a P48 IX.a P49 IX.a P50 IX.a P51 IX.a P52 IX.a exhibit 2 P53 IX.a P54 IX.a P55 IX.a P56 IX.a P57 IX.a P58 IX.a P59 IX.a P60 IX.a P61 IX.a P62 IX.a P63 IX.a P64 IX.a P65 IX.a P66 IX.a P67 IX.a P68 IX.a P69 IX.a P70 IX.a P71 IX.a P72 IX.a P73 IX.a P74 IX.a P75 IX.a P76 IX.a P77 IX.a P78 IX.a P79 IX.a P80 IX.a P81 IX.a exhibit 3 P82 IX.a P83 IX.a P84 IX.a P85 IX.a P86 IX.a P87 IX.a P88 IX.a P89 IX.a P90 IX.a P91 IX.a P92 IX.a P93 IX.a P94 IX.a P95 IX.a P96 IX.a P97 IX.a P98 IX.a P99 IX.a P100 IX.a P101 IX.a P102 IX.a P103 IX.a P104 IX.a P105 IX.a P106 IX.a P107 IX.a P108 IX.a P109 IX.a P110 IX.a P111 IX.a P112 IX.a P113 IX.a P114 IX.a P115 IX.a P116 IX.a P117 IX.a P118 IX.a P119 IX.a P120 IX.a P121 IX.a P122 IX.a P123 IX.a P124 IX.a P125 IX.a P126 IX.a P127 IX.a P128 IX.a P129 IX.a P130 IX.a P131 IX.a P132 IX.a P133 IX.a P134 IX.a P135 IX.a P136 IX.a P137 IX.a ASLU Extension of Vested Rights 730 E. Cooper Avenue 1 CITY OF ASPEN PRE-APPLICATION CONFERENCE SUMMARY PLANNER: Justin Barker, 429.2797 DATE: May 8, 2018 PROJECT: 730 E. Cooper (BASE Lodge) REPRESENTATIVE: Chris Bendon, chris@bendonadams.com DESCRIPTION: The applicant would like to extend the vested rights for a lodge project that received approval through Ordinance 2, Series of 2015, Ordinance 6, Series of 2016, and P&Z Resolution 4, Series of 2016. The Development Agreement (reception #636058) states that the vesting expiration date is July 7, 2019. The applicant has initially suggested an extension request of three (3) years. After the period of vested rights, current land use regulations become applicable to the project, unless an extension of vested rights is granted. Below are links to the Land Use Application form and Land Use Code for your convenience: Land Use Code: https://www.cityofaspen.com/276/Title-26-Land-Use-Code Land Use Application: https://www.cityofaspen.com/DocumentCenter/View/1835/Land-Use-Application-Packet-2017 Relevant Land Use Code Section(s): 26.304 Common Development Review Procedures 26.308 Vested Rights Review by: Staff for complete application and recommendation, City Council for decision Public Hearing: Yes, City Council Planning Fees: $1,300 for up to 4 billable hours. Lesser/additional hours will be refunded or billed at a rate of $325 per hour. Referral Fees: NA Total Deposit: $1,300 To apply, submit 1 copy of the following information: Completed Land Use Application and signed fee agreement. Pre-application Conference Summary (this document). Street address and legal description of the parcel on which development is proposed to occur, consisting of a current (not older than 6 months) certificate from a title insurance company, an ownership and encumbrance report, or attorney licensed to practice in the State of Colorado, listing the names of all owners of the property, and all mortgages, judgments, liens, easements, contracts and exhibit 4 P138 IX.a 2 agreements affecting the parcel, and demonstrating the owner’s right to apply for the Development Application.  Applicant’s name, address and telephone number in a letter signed by the applicant that states the name, address and telephone number of the representative authorized to act on behalf of the applicant.  HOA Compliance form (Attached)  A written description of the proposal and an explanation in written, graphic, or model form of how the proposed development complies with the review standards relevant to the development application and relevant land use approvals associated with the property.  Written responses to all review criteria.  A written explanation of how the request complies with the review standards relevant to extension of vested rights.  Copies of prior approvals.  An 8 1/2” by 11” vicinity map locating the parcel within the City of Aspen. Once the application is determined to be complete, submit:  A digital copy of the application.  Total deposit for review of the application. Disclaimer: The foregoing summary is advisory in nature only and is not binding on the City. The summary is based on current zoning, which is subject to change in the future, and upon factual representations that may or may not be accurate. The summary does not create a legal or vested right. P139 IX.a November 2017 City of Aspen|130 S. Galena St.|(970) 920 5090 CITY OF ASPEN COMMUNITY DEVELOPMENT DEPARTMENT LAND USE APPLICATION Project Name and Address:_________________________________________________________________________ Parcel ID # (REQUIRED) _____________________________ APPLICANT: Name: ______________________________________________________________________________________________ Address: _______________________________________________________________________________________________ Phone #: ___________________________ email: __________________________________ REPRESENTIVATIVE: Name: _________________________________________________________________________________________________ Address:________________________________________________________________________________________________ Phone#: _____________________________ email:___________________________________ Description: Existing and Proposed Conditions Review: Administrative or Board Review Have you included the following?FEES DUE: $ ______________ Pre-Application Conference Summary Signed Fee Agreement HOA Compliance form All items listed in checklist on PreApplication Conference Summary Required Land Use Review(s): Growth Management Quota System (GMQS) required fields: Net Leasable square footage _________ Lodge Pillows______ Free Market dwelling units ______ Affordable Housing dwelling units_____ Essential Public Facility square footage ________ exhibit 5 BASE - 730 East Cooper Avenue 2737-182-27-004 730 E. Cooper, LLC 730 East Cooper Ave., Aspen CO 81611 312850-1680 mhunt@mdevco.com BendonAdams 300 S. Spring St. #202, Aspen CO 81611 925-2855 chris@bendonadams.com Extension of vested rights. City Council Vested Rights Extension 1300 P140 IX.a Exhibit 6 Response to Review Criteria 26.308.010.C.1 In reviewing a request for the extension or reinstatement of vested rights the City Council shall consider, but not be limited to, the following criteria: a. The applicant’s compliance with any conditions requiring performance prior to the date of application for extension or reinstatement; Response: We have secured all required land use approvals and fulfilled all conditions of the development order. All remaining matters are detailed issues typically addressed as part of the building permit review or construction observation. b. The progress made in pursuing the project to date including the effort to obtain any other permits, including a building permit and the expenditures made by the applicant in pursuing the project; Response: We have made substantial investment in the approvals in order to record the development agreement and the development documents including complete engineering plans to the City of Aspen’s requirements, site utility plans, demolition plans, tree protection and removal plans, planting and landscaping details, public amenity plans and complete architectural plans. c. The nature and extent of any benefits already received by the City as a result of the project approval such as impact fees or land dedications; Response: No benefits have been received by the City as a result of the project. d. The needs of the City and the applicant that would be served by the approval of the extension or reinstatement request. Response: The applicant requests additional time to work out the logistics associated with the BASE approval. The approval adds up to 40 lodging bedrooms, with an average of less than 300 sf, to Aspen’s lodge inventory. P141 IX.a 730 East Cooper Vicinity Map CityofAspenGIS Structures Parcels Label: Unit Number Federal Lands BLM STATE OF CO USFS Addresses Label: Number Water Polygons Water Line Zoomed Out Water Line Zoomed In UGB 10/1/2018, 1:36:18 PM 0 0.01 0.030.01 mi 0 0.03 0.050.01 km 1:1,200 City of Aspen GIS CityofAspenGIS | exhibit 7 P142IX.a exhibit 8P143IX.a Active/48464835.1 730 East Durant Avenue, Suite 200, Aspen, Colorado 81611-1557 Telephone: 970.925.6300 Fax: 970.925.1181 www.shermanhoward.com Curtis B. Sanders Sherman & Howard L.L.C. Direct Dial Number: 970.300.0114 E-mail: csanders@shermanhoward.com May 16, 2018 City of Aspen Community Development Department 130 South Galena Street Aspen, Colorado 81611 Re: 730 E. Cooper, LLC, a Colorado limited liability company; Certificate of Ownership Dear Sir or Madam: I am an attorney licensed by the State of Colorado to practice law. This letter shall confirm and certify that 730 E. Cooper, LLC, a Colorado limited liability company, is the owner of all improvements (collectively, the “Improvements”) currently located on the Easterly 9.27 feet of Lot Q, and all of Lots R and S, Block 105, City and Townsite of Colorado (the “Real Property”), and that further, 730 E. Cooper, LLC is also the tenant under a Net Ground Lease dated March 13, 2000 (“Net Ground Lease”) with respect to the Real Property, between The Simon P. Kelly Trust and the Nora D. Kelly Trusts Dated January 4, 1993, as Landlord and The Buckhorn Arms, LLC as Tenant, a Short Form of which was recorded on March 13, 2000 as Reception No. 441336, Pitkin County, Colorado, and which Net Ground Lease was assigned to and assumed by 730 E. Cooper, LLC pursuant that certain Bill of Sale, Assignment and Assumption Agreement dated March 5, 2013, between The Buckhorn Arms, LLC as assignor and 730 E. Cooper, LLC as assignee, and recorded April 2, 2013 as Reception No. 598272, Pitkin County, Colorado. 730 E. Cooper, LLC’s interest in the Real Property pursuant to the Net Ground Lease is subject to the following matters of record: 1. Reservations and exceptions as set forth in the Deed from the City of Aspen recorded in Book 59 at Page 330, 461 and Book 79 at Page 54. 2. Mineral and mineral rights as set forth in Deeds recorded in Book 98 at Page 517, Book 125 at Page 1, Book 106 at Page 481, Book 106 at Page 482 and Book 131 at Page 81. 3. Terms, conditions, provisions and obligations as set forth in Short Form of Net Ground Lease recorded March 13, 2000 as Reception No. 441336. exhibit 9 P144 IX.a 2 Active/48464835.1 4. Easements, rights of way and all matters as disclosed on Improvement Survey Plat of the Real Property recorded September 5, 2008 in Survey Plat Book 88 at Page 34. 5. Terms, conditions, provisions, obligations and all matters as set forth in Ordinance No. 2, Series of 2009 by City of Aspen Council recorded April 14, 2009 as Reception No. 558000. 6. Terms, conditions, provisions and obligations as set forth in Covenant Agreement in Association with Aspen City Council Ordinance No. 2 (Series of 2009) recorded April 14, 2009 as Reception No. 558001. 7. Terms, conditions, provisions and obligations as set forth in Bill of Sale, Assignment and Assumption Agreement recorded April 2, 2013 as Reception No. 598272, Pitkin County, Colorado. 8. Notice of Lien of City of Aspen Water Department recorded October 22, 2014, as amended by Notice of Lien recorded December 10, 2015 as Reception No. 625472. 9. Terms, conditions, provisions and obligations as set forth in Resolution No. 1, Series of 2015 recorded January 13, 2015 as Reception No. 616672. 10. Terms, conditions, provisions and obligations as set forth in Ordinance No. 2, Series of 2015 recorded March 2, 2015 as Reception No. 617733. 11. Terms, conditions, provisions and obligations as set forth in Aspen City Council Ordinance No. 6 (Series of 2016) recorded May 4, 2016 as Reception No. 629132, and re- recorded to replace “Exhibit B” on May 23, 2016 as Reception No. 629514, and re-recorded to correct parcel identification number, common address, and legal description on June 27, 2016 as Reception No. 630225. 12. Terms, conditions, provisions and obligations as set forth in Aspen City Council Ordinance No. 2 (Series of 2015) recorded June 27, 2016 as Reception No. 630224. 13. Terms, conditions, provisions and obligations as set forth in Aspen City Council Resolution No. 4 (Series of 2016) recorded July 15, 2016 as Reception No. 630675. 14. Approved Plan Set for BASE recorded February 9, 2017 as Reception No. 636057. 15. Development Agreement for Base Lodge Planned Development recorded February 9, 2017 as Reception No. 636058. Sincerely, Curtis B. Sanders P145 IX.a exhibit 10P146IX.a exhibit 11P147IX.a Pitkin County Mailing List of 300 Feet Radius Pitkin County GIS presents the information and data on this web site as a service to the public. Every effort has been made to ensure that the information and data contained in this electronic system is accurate, but the accuracy may change. Mineral estate ownership is not included in this mailing list. Pitkin County does not maintain a database of mineral estate owners. Pitkin County GIS makes no warranty or guarantee concerning the completeness, accuracy, or reliability of the content at this site or at other sites to which we link. Assessing accuracy and reliability of information and data is the sole responsibility of the user. The user understands he or she is solely responsible and liable for use, modification, or distribution of any information or data obtained on this web site. This document contains a Mailing List formatted to be printed on Avery 5160 Labels. If printing, DO NOT "fit to page" or "shrink oversized pages." This will manipulate the margins such that they no longer line up on the labels sheet. Print actual size. From Parcel: 273718227904 on 10/01/2018 Instructions: Disclaimer: http://www.pitkinmapsandmore.com P148 IX.a KN ASPEN CORE LLC ASPEN, CO 81611 0133 PROSPECTOR RD #4102B COOPER AVE GREYSTONE CONDO ASSOC ASPEN, CO 81611 COMMON AREA CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 IACONO FAMILY INVESTMENTS LLC TUCSON, AZ 85750-1242 5845 E PLACITA DE LA ZUERENCIA GRAY DALE F REV TRST BETHESDA, MD 20816 5921 SEARL TER BAUM ROBERT E STOCKBRIDGE, MA 01262 PO BOX 1518 ASPEN MTN PARTNERS LLC ASPEN, CO 81611 730 E DURANT AVE KASHINSKI MICHAEL R ASPEN, CO 81611 715 E HYMAN AVE #2 HUNT SARAH J ASPEN, CO 81611 715 E HYMAN AVE #22 CHATEAU ASPEN CONDO ASSOC ASPEN, CO 81611 630 E COOPER KN ASPEN CORE LLC ASPEN, CO 81611 0133 PROSPECTOR RD #4102B KN ASPEN CORE LLC ASPEN, CO 81611 0133 PROSPECTOR RD #4102B CORREIA JOHN E HURRICANE, UT 84737 2642 W 250 N SESTIC ZORAN ASPEN, CO 81611 715 E HYMAN AVE #12 M & M INVESTMENTS ASPEN, CO 81611 679 BRUSH CREEK RD HALL MURRAY B REVOCABLE TRUST PALM DESERT, CA 92260 348 METATE PL MAYER WILLIAM E ASPEN , CO 81612 PO BOX 4462 COMBO VENTURE LLC DALLAS, TX 752011551 2651 N HARWOOD ST #525 SILVERBELL RENTALS LLC HOUSTON, TX 77055 1500 N POST OAK RD #190 DAILY CONNIE M ASPEN, CO 81611 715 E HYMAN AVE #14 SAGARIA SABATO DOMINIC III NEW YORK, NY 10014 756 GREENWICH ST GADA 777 REV LIVING TRUST ASPEN, CO 81612 PO BOX 2061 AJAX INVESTMENTS LLC ASPEN, CO 81611 730 E DURANT AVE DANIELE ROBIN ASPEN, CO 81612 PO BOX 1023 AJAX INVESTMENTS LLC ASPEN, CO 81611 730 E DURANT AVE IDS PARTNERS LLC GWYNEDD VALLEY, PA 19437 PO BOX 642 DAMASO PAULA M TRUST ASPEN, CO 81612 PO BOX 1225 ASPEN MTN PARTNERS LLC ASPEN, CO 81611 730 E DURANT AVE T STREET LLC ASPEN, CO 81612 PO BOX 2648 CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 P149 IX.a KLIKA YVONNE TRUST DENVER, CO 80202 1551 LARIMER ST #1303 SOUTH SPRING LLC ASPEN, CO 81611 623 E HOPKINS BUYERS BRUCE EAST AURORA, NY 140522651 11 NYE HILL RD GADA 777 REV LIVING TRUST ASPEN, CO 81612 PO BOX 2061 JOSHUA & CO ASPEN, CO 81611 520 E DURANT AVE BATTLE GERALD LIVING TRUST NEWPORT BEACH, CA 92659 PO BOX 2847 SOUTH SPRING LLC ASPEN, CO 81611 623 E HOPKINS NETHERY BRUCE ASPEN, CO 81611-2063 715 E HYMAN AVE #25 CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 LEWIS MARITAL TRUST HILLSBOROUGH, CA 94010 524 EL CERRITO AVE DAMASO PAULA M TRUST ASPEN, CO 81612 PO BOX 1225 ASPEN LIVING WELL LLC SALT POINT, NY 12578 2517 ROUTE 44 #11-104 SHACKELFORD MARK ASPEN, CO 81611 805 E COOPER AVE #5 SOUTH SPRING LLC ASPEN, CO 81611 623 E HOPKINS MCMURRAY WILLIAM & HELEN AUSTRALIA, 29 MIDDLE HEAD RD MOSMAN NSW 2088 GADA 777 REV LIVING TRUST ASPEN, CO 81612 PO BOX 2061 BUYERS BRADLEY M EAST AURORA, NY 14052 11 NYE HILL RD POLICARO JOANNA COLUMBUS, OH 43220 4292 CHAUCER LN SOUTH SPRING LLC ASPEN, CO 81611 623 E HOPKINS AJAX INVESTMENTS LLC ASPEN, CO 81611 730 E DURANT AVE DECK WARREN PRESTON LIVING TRUST DENVER, CO 80235 3972 S PINEHURST CIRCLE ART MUSEUM LLC TULSA, OK 74119 15 W 6TH ST #2400 IDS PARTNERS LLC GWYNEDD VALLEY, PA 19437 PO BOX 642 SHUMATE ASPEN LLC ASPEN, CO 81611 421 AABC #G MOY JANE W ASPEN, CO 81611 39 MOUNTAIN LAUREL DR DEVLIN KAREN RUBEY ASPEN, CO 816111087 6 TUMBLEDOWN LN KANTAS NICOLETTE ASPEN, CO 81611 715 E HYMAN AVE #15 IACONO FAMILY INVESTMENTS LLC TUCSON, AZ 85750-1242 5845 E PLACITA DE LA ZUERENCIA CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 CITY MARKET INC CINCINNATI , OH 45202 1014 VINE ST 7TH FL P150 IX.a MCLAUGHLIN WILLIAM R & MARTHA S MANCHESTER, VT 05254 PO BOX 679 SOUTH SPRING LLC ASPEN, CO 81611 623 E HOPKINS CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 VALERIO JAMES & LANETTE ASPEN, CO 81612 PO BOX 1376 ROGERS RICHARD R ADDISON, TX 75001 16251 DALLAS PKWY CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 LEINER MICHAEL & ROSE ANN ASPEN, CO 81612 PO BOX 11539 450 RIGINAL LLC BASALT, CO 81621 132 PARK AVE CCI-ASPEN I LP AUSTIN, TX 78701 800 BRAZOS ST #600 DALLAS ASPEN LLC PARKER, CO 80138 11020 S PIKES PEAK DR # 210 COOPER ORIGINAL LLC MIAMI, FL 33180 20801 BISCAYNE BLVD #431 MONTGOMERY JOHN R & HELEN WALDRUM BIRMINGHAM, AL 35243 2113 CALDWELL MILL TRACE CCI-ASPEN I LP AUSTIN, TX 78701 800 BRAZOS ST #600 BOULANGEE ERICA ASPEN, CO 81611 300 S SPRING ST #203 ROCKHILL BRITTANIE ASPEN, CO 81612 PO BOX 10261 BRADLEY EDWARD JR BROOKLYN, NY 11209 263 80TH ST SILVER DIP EQUITY VENTURE LLC PARKER, CO 80138 11020 S PIKES PEAK DR #210 ETTLIN ROSS L ASPEN, CO 81611 715 E HYMAN AVE # 7 CCI-ASPEN I LP AUSTIN, TX 78701 800 BRAZOS ST #600 FIGHTLIN JONATHAN D ASPEN, CO 81611-2063 715 E HYMAN #46 CCI-ASPEN I LP AUSTIN, TX 78701 800 BRAZOS ST #600 LIEB MADELINE TRUST ASPEN, CO 81611 800 E HYMAN AVE #A SCHNURMAN ALAN J & JUDITH NEW YORK, NY 10017 870 UNITED NATIONS PLZ STE 20E SILVER BELL CONDO ASSOC ASPEN, CO 81611 COMMON AREA 805 E COPPER AVE KN ASPEN CORE LLC ASPEN, CO 81611 0133 PROSPECTOR RD #4102B DAVIS ALTON T REVOCABLE TRUST HINSDALE, IL 605213132 11 S ADAMS ST CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 ROBINSON F GEORGE JR ASPEN, CO 81612 PO BOX 7906 PT HOLDINGS II LLC MISSION, KS 66205 2001 SHAWNEE MISSION PKWY #200 KN ASPEN CORE LLC ASPEN, CO 81611 0133 PROSPECTOR RD #4102B P151 IX.a MCATAMNEY KENNETH TRUST WINNETKA, IL 60093 639 SPRUCE ST BELL MOUNTAIN RESIDENCES CONDO ASSOC ASPEN, CO 81611 720 E COOPER AVE CASTRO JOSEPH EVANSTON, IL 60201 305 DAVIS ST BLOCK DAYNA B EVANSTON, IL 60201 305 DAVIS ST GREWAL JASJIT SINGH PAGOSA SPRINGS, CO 81147 1 ECHO CANYON RD CM LLC ASPEN, CO 816112068 117 S SPRING ST # 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210 P157 IX.a ERGAS VENESSA BLAIR & CLAUDE ASPEN, CO 81612 PO BOX 4316 630 E COOPER 6 ASSOCIATES LLC ASPEN, CO 81611 257 PARK AVE ART MUSEUM LLC TULSA, OK 74119 15 W 6TH ST #2400 DURANT MALL PROP LLC ASPEN, CO 81611 39 MOUNTAIN LAUREL DR LEWIS MARITAL TRUST HILLSBOROUGH, CA 94010 524 EL CERRITO AVE ASPEN MTN PARTNERS LLC ASPEN, CO 81611 730 E DURANT AVE COMBO VENTURE LLC DALLAS, TX 752011551 2651 N HARWOOD ST #525 OBERHOLTZER JORDAN ASPEN, CO 81612 PO BOX 10582 PRICE GAIL ASPEN, CO 81611 715 E HYMAN AVE #10 300 SOUTH SPRING ST CONDO ASSOC ASPEN, CO 81611 418 E COOPER AVE #207 SAHN KAREN ASPEN, CO 81611-2063 715 E HYMAN AVE #11 CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 BELL MOUNTAIN QUALIFIED RESIDENCES ASPEN, CO 81611 320 S SPRING ST 822 EAST HYMAN TOWNHOME CONDO ASSOC ASPEN, CO 81611 822 E HYMAN AVE CHAIKEN WILLIAM HALLANDALE BEACH, FL 33009-6614 2030 S OCEAN DR #1723 DODEA NICHOLAS T ASPEN, CO 81611-2063 715 E HYMAN AVE #19 CARBONA JOHN A FORT MYERS, FL 33902 PO BOX 2568 BISCHOFF JOHN C INPERIAL BEACH, CA 919321111 565 CITRUS AVE ASPEN MTN PARTNERS LLC ASPEN, CO 81611 730 E DURANT AVE DURANT MALL PROP LLC ASPEN, CO 81611 39 MOUNTAIN LAUREL DR ENCLAVE AT ASPEN HOA ASPEN, CO 81611 830 E DURANT AVE MARTELL BARBARA ASPEN, CO 81611 702 E HYMAN AVE CCI-ASPEN I LP AUSTIN, TX 78701 800 BRAZOS ST #600 FORD JOHN STEPHEN JR ASPEN, CO 81611 805 E COOPER AVE # 7 WILSON JOSEPH B ASPEN, CO 81611 39 MOUNTAIN LAUREL DR CCI-ASPEN I LP AUSTIN, TX 78701 800 BRAZOS ST #600 CLARY EDGAR D IV ASPEN, CO 81611 715 E HYMAN AVE #9 802 EAST COOPER LLC HIGHLAND BEACH, FL 33487 3715 S OCEAN BLVD PACIFIC WEST INVEST LLC BIRMINGHAM, MI 48009 320 MARTIN ST #100 ISRAEL KENNETH GOLDEN BEACH , FL 33160 615 OCEAN BLVD P158 IX.a CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 KELLY NORA D TRUST ASPEN, CO 81611 732 E COOPER AVE CCI-ASPEN I LP AUSTIN, TX 78701 800 BRAZOS ST #600 GOFEN ETHEL CARO TRUST CHICAGO, IL 60611 455 CITY FRONT PLAZA REUSS/LIGHT LLC SNOWMASS VILLAGE, CO 81615 PO BOX 5000 ORIGINAL STREET CONDO ASSOC ASPEN, CO 81611 802 E COOPER AVE CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 BENEDICT COMMONS CONDO ASSOC ASPEN, CO 81611 715 E HYMAN AVE COMBO VENTURE LLC DALLAS, TX 752011551 2651 N HARWOOD ST #525 ASPEN BROWNSTONES CONDO ASSOC ASPEN, CO 81611 707 E HYMAN AVE CM LLC ASPEN, CO 816112068 117 S SPRING ST # 202 PT HOLDINGS II LLC MISSION, KS 66205 2001 SHAWNEE MISSION PKWY #200 ASPEN ASSETS LLC CLARWATER, FL 337614173 2519 N MCMULLEN BOOTH RD #510-307 P159 IX.a TO: Mayor Skadron and Aspen City Council FROM: Garrett Larimer, Planner THRU: Jessica Garrow, Community Development Director RE: Resolution #12, Series of 2019 MEETING DATE: January 28, 2019 APPLICANT: Iconic Properties – Jerome L.L.C., 1375 Enclave Pkwy, Houston, TX 77077 REPRESENTATIVE: Sunny Vann, Vann Associates, LLC, PO Box 4827, Basalt, CO 81621 LOCATION: 330 E. Main Street CURRENT ZONING: Commercial Core (CC) with a PD Overlay SUMMARY: The applicant is seeking temporary use approval for an “Ice Lounge” on the Mill Street terrace. The applicant is requesting as part of this application approval for a total of one-hundred and six (106) days per year and five annual recurrences. This is in addition to the Temporary Use Approval granted via Resolution No. 174, Series of 2017 which granted approval for seventy-four (74) days for various tent structures on site. REQUEST OF CITY COUNCIL: The applicant is requesting Temporary Use approval related to an Ice Lounge in the Mill Street Terrace in accordance with Chapter 26.450, Temporary Uses, of the Land Use Code for a period of one hundred and six (106) days. The Code allows City Council to consecutive days within a calendar year. The applicant is also requesting City Council grant five (5) annual recurrences for the Ice Lounge, starting January 2019 through December 2024. authority. MEMORANDUM Mayor Skadron and Aspen City Council Garrett Larimer, Planner Jessica Garrow, Community Development Director Resolution #12, Series of 2019 - Temporary Use Request – Hotel Jerome, 330 January 28, 2019 Jerome L.L.C., Sunny Vann, Vann Associates, LLC, PO Box 4827, Basalt, CO Commercial Core (CC) with The applicant is seeking temporary use approval for an “Ice Lounge” e. The applicant is requesting as part of this application hundred and six (106) days per year and five annual recurrences. This is in addition to the Temporary Use Approval granted via Resolution No. 174, Series of 2017 which four (74) days STAFF RECOMMENDATION: Staff is recommending the City Council approve the applicant’s request for a one hundred and six (106) day temporary use approval for the Ice Lounge. Staff recommends approval based on the previous approval, the limited impact on the surrounding area, and the proposed structure being consistent with the allowed and expected uses of a lodge. Staff also recommends Council grant three (3) annual recurrences for the Ice Lounge, with the ability to apply for administrative approval for an additional five after the initial three-year period. Current Image of the Hotel Jerome The applicant is requesting Temporary Use approval related to an Ice Lounge in the Mill Street Terrace in accordance with Chapter 26.450, Temporary Uses, of the Land Use Code for a period of one hundred and six (106) days. The Code allows City Council to grant temporary use approval for up to 180 consecutive days within a calendar year. The applicant is also requesting City Council grant five (5) annual recurrences for the Ice Lounge, starting January 2019 through December 2024. City Council is the final Page 1 of 4 Hotel Jerome, 330 E. Main St., Staff is recommending the City Council approve the applicant’s request for a one- hundred and six (106) day temporary use approval for Staff recommends approval based on the previous approval, the limited impact on the surrounding area, and the proposed structure being consistent with the allowed and expected uses of a lodge. Staff also recommends Council grant three (3) s for the Ice Lounge, with the ability to apply for administrative approval for an additional five The applicant is requesting Temporary Use approval related to an Ice Lounge in the Mill Street Terrace in accordance with Chapter 26.450, Temporary Uses, of the Land Use Code for a period of one- grant temporary use approval for up to 180 consecutive days within a calendar year. The applicant is also requesting City Council grant five (5) annual City Council is the final review P160 IX.b Page 2 of 4 330 E Main St. / Temporary Use City Council Hearing – January 28, 2019 LOCATION/BACKGROUND: The Hotel Jerome is located in the Commercial Core (CC) zone district. The Hotel occupies a 47,735-square foot lot and includes a Planned Development Overlay. In 2006, the Hotel Jerome went through a PUD review for an extensive renovation of the Hotel to enlarge the net leasable commercial area and reconfigure the courtyards. In 2008, an office space was converted into a lodge room. In 2011, an insubstantial amendment was approved for interior reconfigurations. More recently, in 2016, the Hotel Jerome received approval to combine the Hotel Aspen and Hotel Jerome lots, partially vacate the alley, partially demolish and redevelop the existing Aspen Times building, redevelop the Main Street courtyard and perform internal reconfigurations in the main building of the Hotel Jerome. This approval added 3 lodge rooms, 9 keys, and 9 bedrooms. The applicant applied for and received Temporary Use approval via Resolution No. 173, Series of 2017 that granted approval for use of various temporary use structures on site for a total of seventy-four (74) days per year, and five (5) annual recurrences. Included in the 2017 approval was approval for use of the Ice Lounge for one- hundred and one (101) days with no annual recurrences. Figure 1 CURRENT REQUEST: Ice Lounge: The applicant is requesting approval for use of an Ice Lounge (See Figure 2) on the Mill Street Terrace for one- hundred and six (106) days per year, and five (5) annual recurrences. Resolution No. 173, Series of 2017 granted Mill Street Terrace P161 IX.b Page 3 of 4 330 E Main St. / Temporary Use City Council Hearing – January 28, 2019 approval for various temporary use structures to be used on site throughout the year. The 2017 approval included five (5) annual recurrences for the various tent structures. The approval also included the use of the Ice Lounge for one-hundred and one (101) days, and no annual recurrences were requested for the Ice Lounge at that time. The Ice Lounge was popular with guests and the Hotel Jerome is interested in continuing to utilize the Ice Lounge during the winter season moving forward. The Land Use Code allows City Council to grant Temporary Use approval for up to one-hundred and eighty (180) days per calendar year. The previous approval and current request would bring the total number of days per year in which the Hotel Jerome could use temporary structures to one-hundred and eighty (180). Temporary Use requests in excess of fourteen (14) days requires Commercial Design review and affordable housing mitigation. The affordable housing mitigation calculation is included in Exhibit B. A tent permit will be required for this structure, and mitigation for the Ice Lounge will be collected upon issuance of that permit. STAFF FINDINGS: Staff has reviewed the applicant’s request against the relevant review criteria and finds the following: The proposed temporary use structures at the Hotel Jerome are consistent with what one would expect to see at a Lodge. The intent of the Commercial Core zone district is to provide commercial services and amenities that enhances Aspen’s resort-based economy. The proposed Ice Lounge would further enhance the Hotel Jerome’s ability to provide services to their guests. The proposed location of the Ice Lounge would have a minimal impact on the surrounding area. The Mill Street terrace, would have a limited visual impact as seen from Mill St as it is surrounded on three side by the Hotel Jerome building, and slightly raised from the grade of the sidewalk along Mill Street, and set back from the façade of the building of the Hotel Jerome along Mill St. The materials and designs presented are consistent with the previously approved Ice Lounge. Given the limited visual impact as seen from the surrounding area, staff finds the materials used to be consistent with the Design Guidelines. The Ice Lounge is subject all applicable review criteria for Temporary and Seasonal Uses, Growth Management Quota System, and Commercial Design Guidelines. The Ice Lounge is approximately twelve (12) feet by twelve (12) feet, and the ice walls are about seven (7) feet tall. An image of the Ice Lounge is shown in Figure 3. Staff has determined the limited size of the structure and the proposed materials comply with the applicable review criteria. Growth Management: The applicant has requested approval for one-hundred and six (106) days per year. The Ice Lounge would be located on the Mill Street terrace and would measure approximately 144 sq. ft., requiring $1,012.03 in mitigation for the 106 days of use (See Exhibit B for details). Affordable Housing mitigation fees for the Ice Lounge will be calculated and must be paid when the tent permit for the Ice Lounge is pulled each year. Figure 2 P162 IX.b Page 4 of 4 330 E Main St. / Temporary Use City Council Hearing – January 28, 2019 The Affordable Housing Mitigation for the various tent structures approved via Resolution #173, Series of 2017 will be calculated and collected separately for each calendar year. STAFF RECOMMENDATION: Staff recommends approval of the applicant’s temporary use request, finding that the request does meet the review criteria. Staff recommends approval for three (3) year’s annual recurrences for the Ice Lounge, with an ability to apply for an administrative extension for up to five (5) years so the approval corresponds with the Resolution #173, Series of 2017. The administrative extension would allow a check in related to design and visual impacts. PROPOSED MOTION (WORDED IN THE AFFIRMATIVE): “I move to approve Resolution No. 12 Series of 2019 to allow the erection of the Ice Lounge on site on the Mill Street Terrace at 330 E. Main St. for 106 days in each calendar year from 2019-2022.” Attachments: Exhibit A – Staff Findings Exhibit B – Affordable Housing Mitigation Exhibit C – Application P163 IX.b 1 RESOLUTION NO. 12 (SERIES OF 2019) A RESOLUTION OF THE CITY OF ASPEN CITY COUNCIL APPROVING THE TEMPORARY USE OF AN ICE LOUNGE AT 330 E. MAIN STREET, LEGALLY DESCRIBED AS LOTS A - I AND LOTS O – S, AND THE EASTERLY 20 FEET OF LOT N AND THE EASTERLY 170 FEET OF THE VACATED ALLEY ALL IN BLOCK 79, CITY AND TOWNSITE OF ASPEN, PITKIN COUNTY, COLORADO. Parcel ID: 273707321004 WHEREAS, the Community Development Department received an application from Sunny Vann of Vann Associates, LLC, on behalf of Iconic Properties – Jerome, L.L.C., requesting Temporary Use approval to erect the Ice Lounge for one-hundred and six (106) days per year and three (3) annual recurrences; and WHEREAS, pursuant to Chapter 26.450.050 of the Land Use Code, City Council may grant a temporary use approval for up to 180 days, and no more than ten (10) annual recurrences; and, WHEREAS, the applicant received approval via Resolution No. 173, Series of 2017 that allowed for various temporary use structures to be erected on site for up to seventy-four (74) days per year and five (5) annual recurrences, through 2022, with the ability to apply for an administrative extension for the temporary use approval for another five (5) years, through 2027; and, WHEREAS, the City Council reviewed the application and considered the Temporary Use proposal under the applicable provisions of the Municipal Code as identified herein, has reviewed and considered the recommendation of the Community Development Director, and has taken and considered public comment at a duly noticed public hearing; and, WHEREAS, the City Council approves the Ice Lounge on the Mill Street terrace, allowing for temporary use of this structure for up to one-hundred and six (106) days per year; and, WHEREAS, the City Council finds that the request for the extended temporary use proposal for the Ice Lounge to be in accordance with the applicable development standards associated with the request, and has approved it for three (3) annual recurrences with the option to apply for an administrative extension of up to five (5) years after the initial approval; and, WHEREAS, the City Council finds that this resolution furthers and is necessary for the promotion of public health, safety and welfare. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT: Section 1: Pursuant to the procedures and standards set forth in Title 26 of the Aspen Municipal Code, the City Council hereby approves a Temporary Use request to allow the erection of the Ice Lounge on the Mill Street Terrace, for one-hundred and six (106) days in each calendar year for three (3) years, from January 2019 through December 2022. After three (3) years, the applicant may submit an application to be reviewed administratively for an additional five (5) P164 IX.b 2 annual recurrences (2023-2027). Section 2: Temporary structures that are approved on a site for a period greater than fourteen (14) days are subject to growth management review, resulting in affordable housing mitigation. The applicant is required to provide housing mitigation for one-hundred and six (106) days for the Ice Lounge. Staff has calculated the amount of affordable housing due, based on the fees in 2019, as $1012.13 Affordable Housing mitigation fees will be calculated at the current rate each year. Affordable Housing Mitigation for the Ice Lounge will be collected upon issuance of the tent permit for that structure. Each year, a new tent permit will be required. The methodology is shown in Exhibit A. Section 3: All temporary use structures on site must comply with the Outdoor Lighting Requirements outlined in Section 26.575.150 of the Land Use Code. Section 4: A tent permit approval, including verification from the Aspen Fire Department that the structure meets all necessary safety requirements, is required prior to the erection of each temporary structure. If the Fire Department is unable to approve a tent in a given location it may not be erected. Section 5: All material representations and commitments made by the Applicant pursuant to the temporary use proposal as herein awarded, whether in public hearing or documentation presented before the City Council, are hereby incorporated in such plan development approvals and the same shall be complied with as if fully set forth herein, unless amended by an authorized entity. Section 6: This resolution shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 7: If any section, subsection, sentence, clause, phrase, or portion of this resolution is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. APPROVED BY the City Council of the City of Aspen on this 28th day of January 2019. Attest: Linda Manning, City Clerk Steven Skadron, Mayor P165 IX.b 3 Approved as to form: James R. True, City Attorney Attachments: Exhibit A – Affordable Housing Mitigation Methodology Exhibit A Affordable Housing Mitigation Requirements Ice Lounge · 144 sq. ft./ 1,000 sq. ft. = 0.144 sq. ft. · 0.144 sq. ft. x 4.7 FTEs = 0.6768 FTEs · 0.6768 FTEs x 65% mitigation rate = 0 .44 FTEs to be mitigated if structures are in use 100% of the year · 0.44 FTEs / 365 days per year = .0012 daily rate · 0.0012 x 106 days = 0.1272 FTEs · 0.1272 x $238,687.04 cash-in-lieu rate = $30,360.99 · $30,360.99/30-year lifespan = $1,012.03 due for mitigation of the structure for a period of 106 days. TOTAL DUE $ 1,012.03 P166 IX.b 1 Exhibit A Staff Findings Section 26.450.030. Criteria applicable to all temporary uses. When considering a development application for a temporary use or an insubstantial temporary use, the Community Development Director or City Council shall consider, among other pertinent factors, the following criteria as they or any of them, relate thereto: A. The location, size, design, operating characteristics and visual impacts of the proposed use. Staff Response: The ice lounge will be twelve (12) feet by twelve (12) feet, or 144 sq. ft. The lounge will have approximately seven (7) foot tall walls, made of ice blocks, on four sides with an opening on one side to access the lounge. The walls will be covered by a canopy to shield the ice and guests from weather. The ice lounge will be used for vodka tasting and will not contain a bar or general seating. The structure covering will be similar to materials used in tradition temporary use structures. The size of the structure is unobtrusive as viewed from Mill St. The Ice Lounge is available to guests and the general public. Staff finds this criterion to be met. B. The compatibility of the proposed temporary use with the character, density and use of structures and uses in the immediate vicinity. Staff Response: The proposed Ice Lounge is consistent with what one would expect to see at a lodge in the Commercial Core. The location of the proposed structure has a relatively limited impact on the surrounding area because the Mill St. Terrace is surrounded on three sides by the Hotel. Staff finds this criterion to be met. C. The impacts of the proposed temporary use on pedestrian and vehicular traffic and traffic patterns, municipal services, noise levels and neighborhood character. Staff Response: The proposed structure would not disrupt pedestrian or vehicular traffic. The applicant has indicated they are aware of the City noise ordinance and will comply with all regulations. There would be no increase on the demands of municipal services. There will be no increase in traffic on Mill Street or Main Street as a result of the proposed structure. Staff finds this criterion to be met. D. The duration of the proposed temporary use and whether a temporary use has previously been approved for the structure, parcel, property or location as proposed in the application. Staff Response: The Hotel Jerome received approval in 2017 for use of temporary use structures in various locations on site for a total seventy-four (74) days per year with 5 P167 IX.b 2 annual recurrences. City Council granted the ability to apply for another 5 years to be reviewed and approved administratively for the 74 days. Approval was also granted for the Ice Lounge through April 30th, 2018, weather permitting with no annual recurrences. The applicant has indicated that the use of the Ice Lounge was well received and are interested in applying for use of the Ice Lounge again in 2019 and are requesting 5 annual recurrences. The applicant is requesting use of the Ice Lounge for 106 days per year. The total number of days in which the application is requesting use of temporary structures on site is 180, the maximum allowed to be approved by City Council. Staff finds this criterion to be met. E. The purposes and intent of the zone district in which the temporary use is proposed. Staff Response: The purpose of the Commercial Core zone district is to serve as the highest intensity commercial area in Aspen, and is geared to support the visitor based economy. The mix of uses in this district include economic, cultural and social vitality. The temporary use would enhance the Hotel Jerome’s ability to provide services to locals and visitors alike. Staff finds this criterion to be met. F. The relation of the temporary use to conditions and character changes which may have occurred in the area and zone district in which the use is proposed. Staff Response: The Hotel Jerome has received permission to erect special event tents on site in the past. Granting approval for the Hotel to use the Ice Lounge this year, and in subsequent years, will further the Hotel Jerome’s ability to accommodate guests and events throughout the year. Staff finds this criterion to be met. G. How the proposed temporary use will enhance or diminish the general public health, safety or welfare. Staff Response: The proposed use would help to enhance the Hotel Jerome’s ability to accommodate guest and events throughout the year, and would enhance the general welfare of the public. Staff finds this criterion to be met. P168 IX.b 4 Growth Management Quota System 26.470.040.7 Temporary uses and structures. The development of a temporary use or structure shall be exempt from growth management, subject to the provisions of Chapter 26.450, Temporary and Seasonal Uses. Temporary external airlocks shall only be exempt from the provisions of this Chapter if compliant with the applicable sections of Commercial Design Review – Chapter 26.412, and approved pursuant to Chapter 26.450 Temporary and Seasonal Uses. Tents, external airlocks, and similar temporary or seasonal enclosures located on commercial properties and supporting commercial uses shall only be exempt from the provision of this Chapter, including affordable housing mitigation requirements, if compliant with the applicable sections of Commercial Design Review – Chapter 26.412, if erected for 7 consecutive days or less in a 12-month period, and approved pursuant to Chapter 26.450 – Temporary and Seasonal Uses. Erection of these enclosures for longer than 7 consecutive days in a 12-month period shall require compliance with the Commercial Design Review – Chapter 26.412, and compliance with the provisions of this Chapter including affordable housing mitigation. Staff Response: The applicant is requesting approval for use of the Ice Lounge for 106 days per year for five years, requiring compliance with Commercial Design Guidelines (below), and affordable housing mitigation. Staff has calculated the appropriate affordable housing mitigation to be $1,012.03. The calculation may be found in Exhibit B, to follow. Mitigation fees would be due at the time the tent permit for the Ice Lounge is issued in each year of approval. 26.412.060. Commercial Design Review Criteria. An application for commercial design review may be approved, approved with conditions or denied based on conformance with the following criteria: A. Guidelines and Standards 1. The Commercial, Lodging and Historic District Design Standards and Guidelines are met as determined by the appropriate Commission. The Standards and Guidelines include design review criteria that are to be used to determine whether the application is appropriate. Staff Response: Temporary Use applications do not require review by Planning and Zoning or Historic Preservation. The application is considered by City Council and a P169 IX.b 4 determination on the appropriateness of the application. The review criteria for the Commercial Design Review is below. Staff finds this to be not applicable. 2. All applicable standards in the Commercial, Lodging and Historic District Design Standards and Guidelines shall be met unless granted a Variation pursuant to Section 26.412.040.D, Variations. Staff Response: All standards and applicable Guidelines have been met. Staff finds this criterion to be met. 3. Not every guideline will apply to each project, and some balancing of the guidelines must occur on a case-by-case basis. The applicable Commission must: a. determine that a sufficient number of the relevant guidelines are adequately met in order to approve a project proposal; Staff Response: Application not subject to review by commission. City Council to provide direction. b. weigh the applicable guidelines with the practicality of the measure. Staff Response: Subject to direction from City Council. Commercial Design Guidelines: General 1.22 Complete and accurate identification of materials is required. Staff Response: The canopy material is consistent with tent materials approved for other events in similar locations. The ice lounge is made of unique materials, but is not a significant variation from the appearance of other approved tent structures in town. Staff finds this criterion to be met. Commercial Core 2.4 Respect adjacent iconic historic structures. Staff Response: The Mill Street Terrace is surrounded by the Historic Hotel Jerome. The proposed structure would not detract from the historic landmarks and would enhance the image of the Hotel Jerome as a staple for lodging and guest services downtown. Staff finds this criterion to be met. 2.14 Architectural details should reinforce historic context and meet at least two of the following qualities: color or finish traditionally found downtown, texture to create visual interest, traditional material, traditional application. Staff Response: The materials proposed for the temporary use structure is consistent P170 IX.b 4 with materials approved at for other special event structures throughout town, and the structure is virtually identical with the structure approved via Resolution 173, Series of 2017. Staff finds this criterion to be met. Pedestrian Amenity Street Level PA1.5 Street level pedestrian amenity areas shall be open to the sky. Staff Response: The recently revised Main Street courtyard was designed using current Pedestrian Amenity requirements. The Ice Lounge will not occupy the entire Mill Street terrace area and the remaining area will remain open to the sky. When the Ice Lounge is in place, there will be additional pedestrian amenity space on site available to the public. Staff finds this criterion to be met. PA 1.7 Design amenity space that enhances the pedestrian experience and faces the street. Staff Response: The Ice Lounge will be set back from the Mill St. facade and will not consume the entire pedestrian amenity space, still providing a space that contributes to the pedestrian experience. The proposed structure has limited visibility and has a low impact to the pedestrian experience and overall appearance of the Hotel Jerome. Staff finds this criterion to be met. P171 IX.b Exhibit B Growth Management Affordable Housing Calculation Section 26.470.090(I) Temporary uses and Structures. The development of a temporary use or structure shall be exempt from growth management, subject to the provisions of Chapter 26.450, Temporary and Seasonal Uses. Temporary external airlocks shall only be exempt from the provisions of this Chapter if compliant with applicable sections of Commercial Design Review – Chapter 26.412, and approved pursuant to Chapter 26.450 Temporary and Seasonal Uses. Tents, external airlocks, and similar temporary or seasonal enclosures located on commercial properties and supporting commercial use shall only be exempt from the provisions of this Chapter, including affordable housing mitigation requirements, if compliant with applicable sections of Commercial Design Review – Chapter 26.412, if erected for 14 days or less in a 12-month period, and approved pursuant to Chapter 26.450 – Temporary and Seasonal Uses. Erection of these enclosures for longer than 14 days in a 12-month period shall require compliance with Commercial Design Review – Chapter 26.412, and compliance with the provisions of this Chapter including affordable housing mitigation. Affordable housing mitigation shall be required only for the days in excess of 14 in a 12-month period. Cash-in-lieu may be paid by-right. The mitigation calculation shall include the expected lifespan of a building, which is currently 30 years. For instance, a 500-sq. ft. tent proposed to be up for 21 days shall only require mitigation for seven (7) days. The calculation would be as follows: Staff Response: The fourteen-day credit was applied to the previous approval, so the credit will not be applied to the mitigation required for the Ice Lounge. One-hundred and six (106) days are requested as part of this application for use of a 144 square foot structure. The mitigation for the Ice Lounge approval will be calculated when the tent permit for the Ice Lounge is submitted each year. The mitigation required as part of Resolution No. 173, Series of 2017 will be calculated and collected separately upon issuance of the first tent permit for any other tent structure to be used for the various special events at the Hotel Jerome in each calendar year. If Council grants annual recurrences, the affordable housing mitigation fees will be calculated using that year’s applicable fees. Methodology: Ice Lounge · 144 sq. ft./ 1,000 sq. ft. = 0.144 sq. ft. · 0.144 sq. ft. x 4.7 FTEs = 0.6768 FTEs · 0.6768 FTEs x 65% mitigation rate = 0 .44 FTEs to be mitigated if structures are in use 100% of the year · 0.44 FTEs / 365 days per year = .0012 daily rate · 0.0012 x 106 days = 0.1272 FTEs · 0.1272 x $238,687.04 cash-in-lieu rate = $30,360.99 · $30,360.99/30-year lifespan = $1,012.03 due for mitigation of the structure for a period of 106 days. TOTAL DUE $ 1,012.03 P172 IX.b MEMORANDUM TO: Mayor and City Council FROM: Pete Strecker, Assistant Finance Director THRU: Sara Ott, Asst. City Manager MEETING DATE: January 28, 2019 RE: Ordinance #3, Series of 2019 - Refinancing Existing Castle Creek Energy Center Debt to Achieve Interest Rate Savings and a Shorter Remaining Duration REQUEST OF COUNCIL: Staff is recommending the refinancing of existing debt associated with the Castle Creek Energy Center (CCEC), to take advantage of a fixed interest rate of 2.90%, thereby lowering the cost of this borrowing by roughly $113,000 on a net present value basis along with shortening the outstanding term on this borrowing from ten years to seven years. BACKGROUND: Voters approved the issuance of general obligation bonds for the Castle Creek Energy Center in 2008. Conditions for this borrowing allowed for $5.5M in principal, with an average coupon (interest) rate of 4.482% and term that extended through 2035. Due to a change in voter sentiment around the Castle Creek Energy Center, the project was cancelled before it was completed, and proceeds from the project were only partially consumed. To address the balance of these debt proceeds following the project cancellation - as these funds are restricted for a specific use - staff had been applying the proceeds toward annual debt service for the CCEC. In December 2018, the Council approved staff to exercise a partial call on the outstanding bonds (this was the first available opportunity to exercise a call under the original bond issuance). This partial call allowed the Finance Director to apply the remaining balance of debt proceeds ($1.97 million) to call term bonds with maturity dates in 2033 and 2035 and with interest rates of 4.75% and 4.85% respectively. This partial call applied the restricted debt proceeds to lower the overall outstanding principal by a like amount, and reduced associated interest, such that the net present value savings to the Electric Fund was roughly $380K. RECOMMENDED ACTION: There is still $2.09M in outstanding debt associated with the Castle Creek Energy Center, that extends through 2028 and with interest rates of 3.85% to 4.50% depending on the maturity of the bonds. Staff is proposing to refinance this debt at a fixed rate of 2.90% and with a duration that will be three years sooner in 2025. This refinancing can be done through a private placement agreement with a bank (ZMFU II, Inc. a subsidiary of Zions Bancorporation) and achieve an additional $113K in net present value savings for the Electric Fund. Total savings from the previous partial call plus this action will be approximately $505K. PROPOSED MOTION: “I move to adopt Ordinance #3, Series of 2019, to proceed with the refunding of existing Castle Creek Energy Center debt and take advantage of lower interest rates and achieve net present value savings of $113K.” CITY MANAGER COMMENTS: P173 IX.c ORDINANCE NO. 3 (SERIES OF 2019) AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY OF ASPEN, COLORADO, OF ITS GENERAL OBLIGATION ELECTRIC UTILITY REFUNDING LOAN, SERIES 2019; AND APPROVING A LOAN AGREEMENT AND CERTAIN OTHER DOCUMENTS IN CONNECTION THEREWITH; AND PROVIDING OTHER MATTERS RELATING THERETO. RECITALS WHEREAS, the City of Aspen (the “City”), in the County of Pitkin and State of Colorado, is a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado and the home rule charter of the City (as more particularly defined in Section 1 herein, the “Charter”) (all capitalized terms used and not otherwise defined in the recitals hereof shall have the meaning assigned in Section 1 of this Ordinance); and WHEREAS, under the Charter, the City is possessed of all powers which are necessary, requisite or proper for the government and administration of its local and municipal matters, all powers which are granted to home rule municipalities by the Colorado Constitution, and all rights and powers that now or hereafter may be granted to municipalities by the laws of the State of Colorado; and WHEREAS, the City is authorized by Section 10.1 of the Charter to borrow moneys and to issue general obligation bonds to evidence such borrowing, subject to the approval of a question proposing their issuance at a general or special election by a majority of registered electors of the City voting thereon; and WHEREAS, at an election called on November 6, 2007 (the “Election”), the City submitted the following question (the “Ballot Question”) to the registered electors of the City for approval: SHALL CITY OF ASPEN DEBT BE INCREASED BY UP TO $5,500,000, WITH A MAXIMUM REPAYMENT COST OF $10,780,000 BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF CONSTRUCTING AND EQUIPPING A NEW HYDROELECTRIC FACILITY ON CASTLE CREEK, WHICH DEBT SHALL BE PAYABLE FROM (1) ELECTRIC UTILITY FEES AND (2) TO THE EXTENT THE CITY COUNCIL DETERMINES THAT THE REVENUES PROJECTED TO BE AVAILABLE FROM SUCH ELECTRIC UTILITY FEES WILL BE INSUFFICIENT TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH DEBT AND TO OTHERWISE COMPLY WITH THE COVENANTS OF THE ORDINANCE OR OTHER INSTRUMENTS GOVERNING SUCH DEBT IN ANY YEAR, FROM THE TAXES DESCRIBED BELOW; SHALL CITY TAXES BE INCREASED BY UP TO P174 IX.c 2 $359,128 ANNUALLY IN ANY YEAR BY THE LEVY OF AD VALOREM PROPERTY TAXES, WITHOUT LIMITATION AS TO RATE OR AMOUNT OR ANY OTHER CONDITION, TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH DEBT AND TO OTHERWISE COMPLY WITH THE COVENANTS OF THE ORDINANCE OR OTHER INSTRUMENTS GOVERNING SUCH DEBT AND TO THE EXTENT THE CITY COUNCIL DETERMINES THAT THE REVENUES PROJECTED TO BE AVAILABLE FROM SUCH ELECTRIC UTILITY FEES WILL NOT BE SUFFICIENT THEREFOR; SHALL SUCH DEBT MATURE, BE SUBJECT TO REDEMPTION, WITH OR WITHOUT PREMIUM, AND BE ISSUED, DATED AND SOLD AT SUCH TIME OR TIMES, AT SUCH PRICES (AT, ABOVE OR BELOW PAR) AND IN SUCH MANNER AND WITH SUCH TERMS, NOT INCONSISTENT HEREWITH, AS THE CITY COUNCIL MAY DETERMINE; AND SHALL THE CITY BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL OF THE REVENUES OF SUCH TAXES, THE PROCEEDS OF SUCH BONDS AND THE EARNINGS THEREON IN 2007 AND EACH SUBSEQUENT YEAR, NOTWITHSTANDING THE LIMITATIONS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION (TABOR), SECTION 29-1-301, COLORADO REVISED STATUTES, OR ANY OTHER LAW? WHEREAS, pursuant to such Ballot Question as approved by the voters on November 6, 2007, the City issued its General Obligation Electric Utility Bonds, Series 2008, originally issued in the aggregate principal amount of $5,500,000; and WHEREAS, pursuant to Section 10.6 of the Charter, the City Council of the City (the “City Council”) may authorize, by ordinance, without an election, the issuance of refunding bonds or any like securities for the purpose of refunding and providing for the payment of the City’s outstanding bonds; and WHEREAS, Article X, Section 20 of the Colorado Constitution (“TABOR”) provides that voter approval in advance is required for the creation of any district (as such term is defined in TABOR, which includes governmental entities such as the City) direct or indirect debt or other multiple-fiscal year financial obligation whatsoever except for refinancing district bonded debt at a lower interest rate; and WHEREAS, the 2008 Bonds maturing on and after December 1, 2019 are subject to redemption prior to their maturity, at the option of the City, on December 1, 2018, or on any date thereafter, at a redemption price equal to the principal amount of the bonds so redeemed, plus accrued interest to the redemption date; and WHEREAS, the City Council has determined that it is in the best interests of the City to refund such portion of the outstanding 2008 Bonds as specified in the Sale Certificate (as more particularly defined herein, the “Refunded Bonds”) for the purpose of refunding such Refunded Bonds at a lower interest rate (the “Refunding Project”); and P175 IX.c 3 WHEREAS, the City Council has been presented with a proposal from ZMFU II, Inc. (the “Lender”), for a loan to finance the costs of the Refunding Project; and WHEREAS, such loan (the “Loan”) will be evidenced by a Loan Agreement (the “Loan Agreement”) between the City and the Lender, and a promissory note (the “Note”) delivered by the City to the Lender; and WHEREAS, the Lender is a wholly-owned subsidiary of Zions Bancorporation, N.A., which is (a) an “accredited investor,” as defined in Rule 501(A)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act of 1933, as amended (an “Institutional Accredited Investor”) or (b) a “qualified institutional buyer,” as defined in Rule 144A promulgated under the Securities Act of 1933, as amended (a “Qualified Institutional Buyer”); and WHEREAS, Stifel Nicolaus & Company, Incorporated, is acting as Placement Agent to the City with respect to the placement of the Loan with the Lender; and WHEREAS, the City Council intends to pay the principal of and interest on the Loan from: (a) customer usage fees and any other fees received from the operation of the City’s Electric Utility system on deposit in the City’s Electric Fund (as defined herein) and available for the payment of the Loan (as more particularly defined herein, “Available Electric Utility Fees”); and (b) to the extent Available Electric Utility Fees are not sufficient, ad valorem property taxes authorized in the Ballot Question; and WHEREAS, notwithstanding the City’s intention to pay amounts due on the Loan from Available Electric Utility Fees and ad valorem property taxes authorized in the Ballot Question, the Loan is a general obligation of the City and the full faith and credit of the City are pledged to its payment; and WHEREAS, no member of the City Council has a potential conflict of interest in connection with the authorization, issuance, sale or use of proceeds of the Loan; and WHEREAS, there has been presented to the City Council, among other things, substantially final forms of (a) the Placement Agent Agreement, and (b) the Loan Agreement, including the form of Note; and WHEREAS, subject to the limitations set forth in this Ordinance, the City Council desires, as provided in the Supplemental Public Securities Act, Part 2 of Article 57 of Title 11 of the Colorado Revised Statutes, as amended, to delegate the authority to the Mayor, the City Manager, or the Finance Director, to identify the Refunded Bonds and to determine certain provisions of the Loan to be set forth in the Sale Certificate, in accordance with the provisions of this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO: Section 1. Definitions. The following tell is shall have the following meanings for purposes of this Ordinance: P176 IX.c 4 “Acts” means, collectively, the State Constitution, the Charter, and Part 2 of Article 57 of Title 11, Colorado Revised Statutes, as amended. “Authorized Officer” means the person or persons authorized to execute the Financing Documents, which shall be the Mayor and/or City Clerk, or in the absence of the Mayor and City Clerk, the Mayor Pro-Tem and/or Deputy City Clerk, and the Finance Director. “Available Electric Utility Fees” means, as of any particular date of determination, all Electric Utility Fees and earnings thereon on deposit in the City’s Electric Fund and available for payment of the principal of and interest on the Note after taking into account all administrative, operation and maintenance expenses of the City payable from the Electric Fund, as determined by the City. “Ballot Question” means the ballot question approved by City voters on November 6, 2007, defined as such in the preambles hereto. “Business Day” means any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in the State are authorized or obligated by law or executive order to be closed for business. “Charter” means the Charter of the City of Aspen, adopted June 16, 1970, as amended. “City” is defined in the recitals hereof. “City Council” means the City Council of the City, and any successor body. “Code” means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein shall be deemed to include the United States Treasury Regulations proposed or in effect thereunder and applicable to the Note or the use of proceeds thereof, unless the context clearly requires otherwise. “Dated Date” means the original dated date for the Note as established in the Sale Certificate. “Electric Fund” means the City’s Electric Enterprise Fund (formerly consisting of the Electric Enterprise Fund and Ruedi Hydroelectric Enterprise Fund, which funds have been combined), and any other fund created by City Council for the purpose of accounting for revenues received in connection with its operation of electric utilities (including, but not limited to, any fund created to account for revenues relating to the Hydroelectric Facility on Castle Creek). “Electric Utility Fees” means customer usages fees and any other fees received by the City as a result of the City’s operation of its Electric Utility. “Finance Director” means the Director of Finance, or his or her absence, the Assistant Finance Director. “Financing Documents” means the Loan Agreement and the Note. P177 IX.c 5 “Loan” means the General Obligation Electric Utility Refunding Loan, Series 2019, made by Lender to the City pursuant to the Loan Agreement. “Note” means the promissory note in the form attached to the Loan Agreement executed by the City and delivered to the Lender evidencing the City’s obligations to pay the Loan. “Ordinance” means this Ordinance, including any amendment or supplement hereto. “Placement Agent” means Stifel, Nicolaus & Company, Incorporated. “Placement Agent Agreement” means that agreement between the Placement Agent and the City concerning the private placement of the Loan with the Lender. “Pledged Revenue” means the moneys derived by the City from the following sources, net of any costs of collection: (i) the Available Electric Utility Fees; (ii) the Ad Valorem Property Taxes; and (iii) any other legally available moneys which the City determines, in its absolute discretion, to transfer to the Trustee for application as Pledged Revenue. “Redemption Date” means the first date or dates on which any Refunded Bonds may be called for redemption as specified in the Sale Certificate “Refunded Bonds” means any of the outstanding 2008 Bonds as specified in the Sale Certificate. “Refunding Project” means the execution and delivery of the Loan for the purpose of defraying the costs of refunding the Refunded Bonds and payment of the costs of execution and delivery of the Loan. “Sale Certificate” means the certificate executed by the Sale Delegate, under the authority delegated pursuant to this Ordinance, including, among other things, the aggregate principal amount of the Note, the prices at which the Note will be sold, interest rates and annual maturing principal for the Note, as well as the dates on which the Note may be redeemed and the redemption price therefore. “Sale Delegate” means any of the Mayor of the City, the Mayor Pro Tem and the Finance Director. “State” means the State of Colorado. “2008 Bonds” means the City of Aspen, Colorado, General Obligation Electric Utility Bonds, Series 2008, as further described in the recitals hereto. Section 2. Approvals, Authorizations, and Amendments. The Financing Documents and the Placement Agent Agreement are incorporated herein by reference and are P178 IX.c 6 hereby approved. The City shall enter into and perform its obligations under the Financing Documents and the Placement Agent Agreement in the forms of such documents presented at this meeting, with only such changes as are not inconsistent herewith. The Authorized Officers are hereby authorized and directed to execute the Financing Documents and the Placement Agent Agreement, and to affix the seal of the City thereto as appropriate, and to further execute and authenticate such other documents, instruments or certificates as are deemed necessary or desirable in order to secure the Loan. Such documents are to be executed in substantially the forms presented at this meeting of the City Council, provided that such documents may be completed, corrected or revised as deemed necessary by the parties thereto in order to carry out the purposes of this Resolution. Copies of all of the Financing Documents and the Placement Agent Agreement shall be delivered, filed and recorded as provided therein. Upon execution and delivery of the Financing Documents and the Placement Agent Agreement, the covenants, agreements, recitals and representations of the City therein shall be effective with the same force and effect as if specifically set forth herein, and such covenants, agreements, recitals and representations are hereby adopted and incorporated herein by reference. The proper officers of the City are hereby authorized and directed to prepare and furnish to any interested person certified copies of all proceedings and records of the City relating to the Loan and such other affidavits and certificates as may be required to show the facts relating to the authorization and issuance thereof. The execution of any instrument by an Authorized Officer of the City in connection with the issuance, sale or delivery of the Financing Documents and the Placement Agent Agreement not inconsistent herewith shall be conclusive evidence of the approval by the City of such instrument in accordance with the terms thereof and hereof. Section 3. Authorization. In accordance with the Constitution of the State of Colorado; the Acts; and all other laws of the State of Colorado thereunto enabling, the City shall execute and deliver the Financing Documents for the purpose of paying a portion of the costs of the Refunding Project. The Loan shall constitute a general obligation of the City as provided in the Loan Agreement. The Board hereby determines to apply all of the provisions of the Supplemental Act to the Note and the Loan. Section 4. Delegated Authority. Pursuant to Section 11-57-205, C.R.S., the City Council hereby delegates to any Sale Delegate the authority to execute and deliver the Sale Certificate setting forth the final terms of the Loan subject to the parameters contained in Section 9 below. Section 5. Payment of Refunded Bonds. The proceeds of the Loan and the Notes shall be promptly delivered to Wells Fargo Bank, National Association, as the paying agent for the Refunded Bonds (the “Paying Agent”), and be applied to the payment of the Refunded Bond Requirements as of the Redemption Date. P179 IX.c 7 Section 6. Permitted Amendments to Ordinance. The City may amend this Ordinance in the same manner, and subject to the same terms and conditions, as apply to an amendment or supplement to the Loan Agreement. Section 7. Authorization to Execute Collateral Documents. Each City Council member and each officer of the City is hereby authorized and directed to take all actions necessary or appropriate to effectuate the provisions of this Ordinance, including but not limited to the execution of such certificates and affidavits as may be reasonably required. Section 8. Costs and Expenses. All costs and expenses incurred in connection with the Loan, the Note, and the transactions contemplated by this Ordinance shall be paid from legally available moneys of the City and such moneys are hereby appropriated for that purpose. Section 9. Delegation and Parameters. (a) The City Council hereby delegates to the Sale Delegate the authority to determine and set forth in the Sale Certificate: (i) the matters set forth in subsection (b) of this Section, subject to the applicable parameters set forth in subsection (c) of this Section; and (ii) any other matters that, in the judgment of the Sale Delegate, are necessary or convenient to be set forth in the Sale Certificate and are not inconsistent with the parameters set forth in subsection (c) of this Section. (b) The Sale Certificate shall set forth the following matters and other matters permitted to be set forth therein pursuant to subsection (a) of this Section, but each such matter must fall within the applicable parameters set forth in subsection (c) of this Section: (i) the date on which the Loan and Note will be executed and delivered; (ii) the Dated Date of the Note and, if not the date of delivery of the Note, the amount of proceeds of the Note constituting accrued interest to be deposited into the Note Account; (iii) the aggregate principal amount of the Loan; (iv) the principal amount of the Loan maturing in each year; (v) the interest payment dates; (vi) the rate of interest; (vii) the dates upon which any prepayment of the Loan may occur, and the prices at which such prepayment may occur; P180 IX.c 8 (viii) the principal amounts, if any, of the Note subject to mandatory sinking fund redemption, and the years in which such Note will be subject to such redemption; (c) The authority delegated to the Sale Delegate by this Section shall be subject to the following parameters: (i) the aggregate principal amount of the Loan shall not exceed $2,150,000; (ii) the final maturity of the Loan shall be no later than December 1, 2025; and (iii) the maximum annual repayment cost due and owing under the Loan shall not exceed $356,970 and the maximum total repayment cost shall not exceed $2,385,000; (iv) the interest rate on the Loan shall not exceed 2.90%. Section 10. Application of Supplemental Act. The City Council specifically elects to apply all of the provisions of Title 11, Article 57, Part 2, C.R.S. (as previously defined, the “Supplemental Act”), to the Note. Section 11. Pledge of Revenues. The creation, perfection, enforcement, and priority of the pledge of revenues to secure or pay the Loan 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 Loan, as received by or otherwise credited to the City, 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 Loan and the obligation to perform the contractual provisions made herein shall have priority over any or all other obligations and liabilities of the City. 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 City irrespective of whether such Persons have notice of such liens. Section 12. No Recourse Against Officers and Agents. Pursuant to Section 11-57- 209 of the Supplemental Act, if a member of the City Council, or any officer or agent of the City acts in good faith, no civil recourse shall be available against such member, officer, or agent for payment of the principal, interest or prior redemption premiums on the Loan. Such recourse shall not be available either directly or indirectly through the City Council, or otherwise, whether by virtue of any constitution, statute, rule of law, enforcement of penalty, or otherwise. By the acceptance of the Loan and as a part of the consideration of their sale or purchase, any Person purchasing or selling such Note specifically waives any such recourse. Section 13. Conclusive Recital. Pursuant to Section 11-57-210 of the Supplemental Act, the Note 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 Note after their delivery for value. P181 IX.c 9 Section 14. Limitation of Actions. Pursuant to Section 11-57-212, C.R.S., no legal or equitable action brought with respect to any legislative acts or proceedings in connection with the authorization or issuance of the Loan shall be commenced more than thirty days after the authorization of the Note. Section 15. Events Occurring on Days That Are Not Business Days. Except as otherwise specifically provided herein with respect to a particular payment, event or action, if any payment to be made hereunder or any event or action to occur hereunder which, but for this Section, is to be made or is to occur on a day that is not a Business Day, such payment, event or action shall instead be made or occur on the next succeeding day that is a Business Day with the same effect as if it was made or occurred on the date on which it was originally scheduled to be made or occur. Section 16. Ordinance Is Contract with Lender and Irrepealable. After the Note has been issued, and the Loan and Loan Agreement executed and delivered, this Ordinance shall be and remain a contract between the City and the Lender and shall be and remain irrepealable until all amounts due with respect to the Loan shall be fully paid, satisfied and discharged and all other obligations of the City with respect to the Loan shall have been satisfied in the manner provided herein. Section 17. Headings. The headings to the various sections and subsections to this Ordinance have been inserted solely for the convenience of the reader, are not a part of this Ordinance and shall not be used in any manner to interpret this Ordinance. Section 18. Severability. It is hereby expressly declared that all provisions hereof and their application are intended to be and are severable. In order to implement such intent, if any provision hereof or the application thereof is determined by a court or administrative body to be invalid or unenforceable, in whole or in part, such determination shall not affect, impair or invalidate any other provision hereof or the application of the provision in question to any other situation; and if any provision hereof or the application thereof is determined by a court or administrative body to be valid or enforceable only if its application is limited, its application shall be limited as required to most fully implement its purpose. Section 19. Repeal of Inconsistent Ordinances. All ordinances, or parts thereof, that are in conflict with this Ordinance, are hereby repealed. Section 20. Ratification of Prior Actions. All actions heretofore taken (not inconsistent with the provisions of this Ordinance, or the Charter) by the City Council or by the officers and employees of the City directed toward the issuance of the Note for the purposes herein set forth are hereby ratified, approved and confirmed. Section 21. Recordation. A true copy of this Ordinance, as adopted by the City Council of the City, shall be numbered and recorded, and its adoption and publication shall be authenticated by the signatures of the Mayor and the City Clerk and by a certification of publication. P182 IX.c 10 Section 22. Effective Date. This Ordinance shall be effective thirty (30) days after final passage of the Ordinance upon second reading by the City Council, as provided in Section 4.9 of the Charter. P183 IX.c 11 INTRODUCED, READ AND PASSED ON FIRST READING by the City Council of the City of Aspen at its regular meeting on January 14, 2019, as provided by the City’s Charter and applicable law. [SEAL] By Mayor Attest: By City Clerk READ, PASSED ON SECOND READING, FINALLY ADOPTED AND APPROVED AND ORDERED PUBLISHED BY TITLE AFTER SUCH FINAL PASSAGE by the City Council of the City of Aspen at its regular meeting on January 28, 2019, as provided by the City’s Charter and applicable law. [SEAL] By Mayor Attest: By City Clerk [signature page to Note Ordinance] P184 IX.c 1 STATE OF COLORADO ) ) SS. CITY OF ASPEN ) I, Linda Manning, the City Clerk of the City of Aspen, Colorado, do hereby certify that: 1. The foregoing pages are a true and correct copy of an ordinance (the “Ordinance”) passed and adopted by the City Council (the “Council”) at a regular meeting held on January 14, 2019. 2. The passage of the Ordinance on first reading on January 14, 2019, was duly moved and seconded and the Ordinance was approved by a vote of _____ to _____ of the members of the Council as follows: Name “Yes” “No” Absent Abstain Steve Skadron, Mayor Adam Frisch Ward Hauenstein Ann Mullins Bert Myrin 3. The passage of the Ordinance on second and final reading was duly moved and seconded at a regular meeting of the Council on January 28, 2019, and the Ordinance was approved on second and final reading by a vote of a ___ of ___ of the members of the Council as follows: Name “Yes” “No” Absent Abstain Steve Skadron, Mayor Adam Frisch Ward Hauenstein Ann Mullins Bert Myrin 4. The members of the City Council were present at such meetings and voted on the passage of such Ordinance as set forth above. P185 IX.c 2 5. The Ordinance was authenticated by the signature of the Mayor, sealed with the City seal, attested by the City Clerk, and recorded in the minutes of the City Council. 6. There are no bylaws, rules or regulations of the City Council that might prohibit the adoption of the Ordinance. 7. Notices of the meetings of January 14, 2019, and January 28, 2019, in the forms attached hereto as Exhibit A were posted at the City Hall not less than 24 hours prior to each meeting in accordance with law. 8. The Ordinance was published by posting on the City’s internet website, www.cityofaspen.com, as provided by Section 4.10(h) of the Home Rule Charter, on __________, 2019. WITNESS my hand and the seal of the City affixed this ____ day of __________, 2019. City Clerk (SEAL) P186 IX.c 3 EXHIBIT A Notices of Meetings 45255460.v3 P187 IX.c LOAN PLACEMENT AGENT AGREEMENT January 15, 2019 City of Aspen 130 S. Galena Street, 1st Floor Aspen, Colorado 81611 Re: General Obligation Electric Utility Refunding Loan, Series 2019 Upon the terms and conditions and based upon the representations, warranties and covenants set forth herein, Stifel, Nicolaus & Company, Incorporated (the “Loan Placement Agent”) offers to enter into this Loan Placement Agent Agreement (this “Agreement”) with the City of Aspen (the “Borrower”), which, upon acceptance of this offer, shall be binding upon the Borrower and the Loan Placement Agent. This offer is made subject to acceptance of this Agreement by the Borrower before or on January 15, 2019, and, if not so accepted, will be subject to withdrawal by the Loan Placement Agent upon notice delivered to your office at any time prior to acceptance hereof. If the obligations of the Loan Placement Agent shall be terminated for any reason permitted hereby, neither the Loan Placement Agent nor the Borrower shall be under further obligation hereunder. The above-captioned Loan (the “Loan”) is to be issued pursuant to an authorizing ordinance duly adopted by the City Council of the Borrower, and a Loan Agreement between the Borrower and ZMFU II, Inc., (the “Bank”) dated as of February 28, 2019 (the “Loan Agreement”). The obligation of the Borrower to repay the Loan is evidenced by a Promissory Note (the “Note”) dated as of February 28, 2019. 1. Execution of the Loan Agreement and delivery of the Note. On the basis of the representations and agreements contained herein, but subject to the terms and conditions herein set forth, the Loan Placement Agent agrees, on a best efforts basis, to place the Loan with the Bank on terms mutually agreeable to the Borrower and the Bank. The terms and conditions of the Note shall be as set forth in the Loan Agreement. For its services hereunder, and upon execution of the Loan Agreement by the Borrower and the Bank (the date of such payment herein, the “Closing Date”), the Loan Placement Agent shall receive compensation, payable by the Borrower, equal to $12,500.00, (the “Fee”). On the Closing Date, the Borrower shall pay or cause to be paid the Fee to the Loan Placement Agent by wire transfer or immediately available funds. The Fee does not include any services the Loan Placement Agent may render in the future to the Borrower. P188 IX.c 2 2. Representations of the Borrower. The undersigned, on behalf of the Borrower, but not individually, hereby represents that: (a) any statements made by the Borrower to the Bank to induce it to execute the Loan Agreement and deliver the Note (including any materials provided to the Loan Placement Agent for that purpose) were accurate and not misleading; (b) there shall be no CUSIP for the Note and the Note shall not be DTC- eligible. 3. Intent of the Parties. It is the intent of the Parties, and the Lender has stated in its commitment dated November 28, 2018, that (a) the Loan is not intended to be a security, (b) the Lender will treat the Loan as a loan and not a security for accounting purposes, and (c) the Note will neither be assigned a CUSIP number nor made DTC eligible; and (c) no official statement or other offering document was prepared with respect to the Loan Agreement and the Note. 4. Conditions to Closing. At or prior to the Closing Date, the Loan Placement Agent shall have received: (a) a Lender Letter, in the form attached to this Agreement as Exhibit A and in form and substance acceptable to the Loan Placement Agent, executed by the Bank and addressed to the Loan Placement Agent; and (b) an opinion of counsel to the Borrower that is permissible under the laws of the State of Colorado (the “State”) for the Borrower to enter into the Loan Agreement and to execute the Loan Agreement and the Note. 5. Termination. This Agreement may be terminated by either party upon ten (10) business days’ prior written notice; provided, however, that: (i) the Fee shall be immediately due and payable by the Borrower if the Borrower terminates this Agreement and executes a Loan with a bank identified by Stifel to the Borrower prior to such termination and such Loan is executed within six (6) months after termination of this Agreement. 6. Expenses. There shall be paid by the Borrower promptly after closing the following: (a) the fees and disbursements of Borrower’s counsel; and (b) the Fee. The Loan Placement Agent shall be under no obligation to pay any expenses incident to this Agreement. 7. Regulatory Disclosure. The Borrower acknowledges that, in connection with the placement of the Loan (a) the Loan Placement Agent has acted at arm’s length, is acting solely for its own account and is not agent of or advisor (including, without limitation, a Municipal Advisor (as such term is defined in Section 975(e) of the Dodd-Frank Wall Street Reform and Consumer Protection Act)) and owes no fiduciary duty to, the Borrower or any other person, (b) the Loan Placement Agent’s duties and obligations to the Borrower shall be limited to those contractual duties and obligations set forth in this Agreement, (c) the Loan Placement Agent may have interests that differ from those of the Borrower, and (d) the Borrower has consulted its legal and financial advisors to the extent it deemed appropriate in connection with the execution of the Loan Agreement and the Note. The Borrower further acknowledges and agrees that it is responsible for making its judgment with respect to the execution of the Loan P189 IX.c 3 Agreement and the Note and the process leading thereto. The Borrower agrees that it will not claim that the Loan Placement Agent acted as a Municipal Advisor to the Borrower or rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Borrower, in connection with the execution of the Loan Agreement or the Note or the process leading thereto. 8. Survival of Certain Representations and Obligations. The respective agreements, covenants, representations, warranties and other statements of the Borrower and its officers set forth in or made pursuant to this Agreement shall survive the execution of the Loan Agreement and the Note and shall remain in full force and effect, regardless of any investigation, or statements as to the results thereof, made by or on behalf of the Loan Placement Agent. 9. Notices. Any notice or other communication to be given to the Borrower under this Agreement may be given by delivering the same in writing to the Borrower at its address set forth above. Any notice or other communication to be given to the Loan Placement Agent under this Agreement may be given by delivering the same in writing to Stifel, Nicolaus & Company, Incorporated, 1401 Lawrence Street, Suite 900, Denver, CO 80202, Attention: Michael Lund, Director. 10. No Assignment. This Agreement has been made by the Borrower and the Loan Placement Agent, and no person other than the foregoing shall acquire or have any right under or by virtue of this Agreement. 11. Applicable Law. This Agreement shall be interpreted, governed and enforced in accordance with the laws of the State of Colorado. 12. Effectiveness. This Agreement shall become effective upon its execution by duly authorized officials of all parties hereto and shall be valid and enforceable from and after the time of such execution. 13. Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 14. Counterparts. This Agreement may be executed in several counterparts (including counterparts exchanged by email in PDF format), each of which shall be an original and all of which shall constitute but one and the same instrument. P190 IX.c 4 Respectfully submitted, STIFEL, NICOLAUS & COMPANY, INCORPORATED ........................................................................ Michael Lund, Director ACCEPTED this 15th of January, 2019. CITY OF ASPEN By: ______________________________________ P191 IX.c EXHIBIT A FORM OF LENDER LETTER City of Aspen Finance Department 130 S Galena Street, 1st Floor Aspen, CO 81611 Stifel, Nicolaus & Company, Incorporated 1401 Lawrence Street, Suite 900 Denver, CO 80202 Re: General Obligation Electric Utility Refunding Loan, Series 2019 Ladies and Gentlemen: ZFMU II, Inc. (the “Lender”) hereby certifies as follows with regard to the Loan Agreement, dated as of February 28, 2019 (the “Loan Agreement”), by and between the City of Aspen (the “Borrower”) and the Lender and the Promissory Note executed by the Borrower, dated February 28, 2019 (the “Note”): 1. The Lender has full power and authority to carry on its business as now conducted, deliver this letter and make the representations and certifications contained herein. 2. The Lender is a wholly-owned affiliate of Zions Bancorporation, N.A., which is a nationally- or state-chartered bank that regularly extends credit to state and local governments by making loans the repayment obligations under which are evidenced by obligations such as the Note; has knowledge and experience in financial and business matters that make it capable of evaluating the Borrower, the Loan Agreement and the Note and the risks associated with the extension of credit evidenced by the Note; and has the ability to bear the economic risk of extending the credit evidenced by the Note. The Lender is not acting as a broker, dealer, municipal securities underwriter, municipal advisor or fiduciary in connection with its extension of credit evidenced by the Note. 3. The Lender has conducted its own investigation of the financial condition of the Borrower, the purpose for which the Loan Agreement and Note are being executed and delivered and of the security for the payment of the principal of and interest on the Loan Agreement and the Note, and has obtained such information regarding the Loan Agreement and the Note and the Borrower and its operations, financial condition and financial prospects as the Lender deems necessary to make an informed decision with respect to its extension of credit evidenced by the Loan Agreement and the Note. 4. The Lender is extending credit to the Borrower evidenced by the Loan Agreement and the Note, and is acquiring the Note for its own account and without any present intention of P192 IX.c 2 distributing, assigning, or selling any interest therein or portion thereof, provided that the Lender retains the right at any time to dispose of the Note or any interest therein or portion thereof, but agrees that any such sale, transfer or distribution by the Lender shall be made, in accordance with applicable law and the provisions of the Note, the Loan Agreement, and related documents, to (a) an affiliate of the Lender; (b) a “Bank” as defined in Section 3(a)(2) of the Securities Act of 1933 as amended (the “Securities Act”); (c) an “Accredited Investor” as defined in Regulation D under the Securities Act; or (d) a “Qualified Institutional Buyer” as defined in Rule 144A under the Securities Act.. The Lender and its assignees further retain the right to sell or assign participation interests in the Note to one or more entities listed in (a) or (b) of this Section 4, provided that any participation, custodial or similar agreement under which multiple ownership interests in the Note are created shall provide the method by which the owners of such interests shall establish the rights and duties of a single entity, owner, servicer or other fiduciary or agent acting on behalf of all of the assignees to act on their behalf with respect to the rights and interests of the registered owner of the Note, including with respect to the exercise of rights and remedies of the registered owner on behalf of such owners upon the occurrence of an event of default under the Loan Agreement or the Note. 5. The Lender acknowledges that (a) the Note (i) has not been registered under the Securities Act of 1933, as amended, (ii) has not been registered or otherwise qualified for sale under the securities laws of any state, and (iii) will not be listed on any securities exchange and (b) there is no established market for the Note and that none is likely to develop. The Lender understands and acknowledges that (a) the Note is not intended to be a security, (b) the Lender will treat the Note as a loan and not a security for accounting purposes, and (c) the Note will neither be assigned a CUSIP number nor made DTC eligible. 6. The Lender is acting solely for its own account and not as a fiduciary for the Borrower or in the capacity of broker, dealer, placement agent, municipal securities underwriter, municipal advisor, or fiduciary. The Lender has not provided, and will not provide, financial, legal (including securities law), tax, accounting, or other advice to or on behalf of the Borrower (including to any financial advisor or any placement agent engaged by the Borrower) with respect to the structuring or delivery of the Loan Agreement or the Note. The Lender has no fiduciary duty pursuant to Section 15B of the Securities Exchange Act of 1934 to the Borrower with respect to the transactions relating to the structuring or delivery of the Loan Agreement or the Note and the discussions, undertakings, and procedures leading thereto. Each of the Borrower and its placement agent has sought and shall seek and obtain financial, legal (including securities law), tax, accounting, and other advice (including as it relates to structure, timing, terms, and similar matters and compliance with legal requirements applicable to such parties) with respect to the Loan Agreement and the Note from its own financial, legal, tax, and other advisors (and not from the undersigned or its affiliates) to the extent that the Borrower, its financial advisor, or its placement agent desires to, should, or needs to obtain such advice. The Lender expresses no view regarding the legal sufficiency of its representations for purposes of compliance with any legal requirements applicable to any other party, including but not limited to the Borrower’s financial advisor or placement agent, or the correctness of any legal interpretation made by counsel to any other party, including but not limited to counsel to the Borrower’s placement agent, with respect to any such matters. The transactions between the Borrower and the Lender are arm’s-length, commercial transactions in which the Lender is acting and has acted solely as a P193 IX.c 3 principal and for its own interest, and the Lender has not made recommendations to the Borrower with respect to the transactions relating to the Loan Agreement or the Note. ZMFU II, INC. By Name P194 IX.c LOAN AGREEMENT by and between THE CITY OF ASPEN, COLORADO as Borrower and ZMFU II, INC. as Lender $2,150,000 City of Aspen, Colorado General Obligation Electric Utility Refunding Loan Series 2019 Dated as of February 28, 2019 P195 IX.c TABLE OF CONTENTS Page ARTICLE I DEFINITIONS ........................................................................................................ 4 ARTICLE II LOAN ...................................................................................................................... 8 Section 2.01 Loan In General. ............................................................................................ 8 Section 2.02 Interest Rates; Interest Payments; Principal Payments. ................................. 8 Section 2.03 Manner of Payments ...................................................................................... 9 Section 2.04 Optional Prepayment of Loan ........................................................................ 9 Section 2.05 Costs and Expenses ........................................................................................ 9 Section 2.06 Obligations Unconditional ............................................................................. 9 Section 2.07 Pledge ........................................................................................................... 10 Section 2.08 Conditions to Closing .................................................................................. 10 ARTICLE III FUNDS AND ACCOUNTS ............................................................................... 12 Section 3.01 Creation of Funds and Accounts. ................................................................ 12 Section 3.02 Flow of Funds .............................................................................................. 12 Section 3.03 Loan Fund .................................................................................................... 13 Section 3.04 Transaction Costs Fund................................................................................ 14 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE CITY ..................... 15 Section 4.01 Due Organization ......................................................................................... 15 Section 4.02 Power and Authorization ............................................................................. 15 Section 4.03 No Legal Bar ................................................................................................ 15 Section 4.04 Consents ....................................................................................................... 15 Section 4.05 Litigation ...................................................................................................... 15 Section 4.06 Enforceability ............................................................................................... 16 Section 4.07 Changes in Law............................................................................................ 16 Section 4.08 Financial Information and Statements ......................................................... 16 Section 4.09 Accuracy of Information .............................................................................. 16 Section 4.10 Tax-Exempt Status ....................................................................................... 16 Section 4.11 Financing Documents .................................................................................. 16 Section 4.12 Regulations U and X .................................................................................... 16 Section 4.13 No Default .................................................................................................... 16 Section 4.14 No Filings..................................................................................................... 17 Section 4.15 Outstanding Debt ......................................................................................... 17 ARTICLE V COVENANTS OF THE CITY ........................................................................... 17 Section 5.01 Performance of Covenants, Authority ......................................................... 17 Section 5.02 Laws, Permits and Obligations .................................................................... 17 Section 5.03 Tax Covenants. ............................................................................................ 17 Section 5.04 Bonding and Insurance ................................................................................ 18 Section 5.05 Other Liabilities ........................................................................................... 18 P196 IX.c ii Section 5.06 Proper Books and Records ........................................................................... 18 Section 5.07 Reporting Requirements. ............................................................................. 19 Section 5.08 Visitation and Examination.......................................................................... 19 Section 5.09 Further Assurances....................................................................................... 19 Section 5.10 Covenant To Impose Ad Valorem Property Tax Mill Levy ........................ 20 Section 5.11 Continued Existence .................................................................................... 20 Section 5.12 Material Adverse Action .............................................................................. 20 Section 5.13 No Change in Financing Documents ........................................................... 20 Section 5.14 References to Lender ................................................................................... 21 Section 5.15 Termination of Agreement ........................................................................... 21 Section 5.16 No Lien or Security Interest in Pledged Revenue ........................................ 21 Section 5.17 Electoral Authorization ................................................................................ 21 ARTICLE VI REPRESENTATIONS OF LENDER; CONCERNING THE ADMINISTRATIVE AGENT ................................................................................................... 22 Section 6.01 Accredited Investor ...................................................................................... 22 Section 6.02 Financial Institution or Institutional Investor .............................................. 22 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES .................................................. 22 Section 7.01 Events of Default ......................................................................................... 22 Section 7.02 Remedies ...................................................................................................... 22 Section 7.03 No Waiver of One Default to Affect Another; All Remedies Cumulative .. 23 Section 7.04 Other Remedies ............................................................................................ 23 Section 7.05 Sovereign Immunity..................................................................................... 23 ARTICLE VIII MISCELLANEOUS ........................................................................................ 23 Section 8.01 Loan Agreement and Relationship to Other Documents ............................. 23 Section 8.02 Assignments, Participations, etc. by the Lender .......................................... 23 Section 8.03 Defeasance ................................................................................................... 24 Section 8.04 Notices ......................................................................................................... 25 Section 8.05 Payments ...................................................................................................... 25 Section 8.06 Applicable Law and Jurisdiction; Interpretation; Severability .................... 25 Section 8.07 Copies; Entire Agreement; Modification ..................................................... 25 Section 8.08 Attachments ................................................................................................. 26 Section 8.09 No Recourse Against Officers and Agents .................................................. 26 Section 8.10 Conclusive Recital ....................................................................................... 26 Section 8.11 Limitation of Actions ................................................................................... 26 Section 8.12 Pledge of Revenues ...................................................................................... 26 Section 8.13 No Waiver; Modifications in Writing .......................................................... 27 Section 8.14 Payment on Non-Business Days .................................................................. 27 Section 8.15 Document Imaging....................................................................................... 27 Section 8.16 Redactions .................................................................................................... 27 Section 8.17 No Advisory or Fiduciary Relationship ....................................................... 27 Section 8.18 Execution in Counterparts............................................................................ 28 Section 8.19 Severability .................................................................................................. 28 Section 8.20 Headings ...................................................................................................... 28 P197 IX.c iii Section 8.21 Waiver of Rules of Construction ................................................................. 28 Section 8.22 Integration .................................................................................................... 28 Section 8.23 Patriot Act Notice ........................................................................................ 28 Section 8.24 No Registration; No Securities Depository; No CUSIP. ............................. 28 EXHIBIT A – FORM OF PROMISSORY NOTE EXHIBIT B –PRINCIPAL PAYMENT SCHEDULE EXHIBIT C – CLOSING MEMORANDUM P198 IX.c 1 LOAN AGREEMENT THIS LOAN AGREEMENT (this “Agreement”) is made and entered into as February 28, 2019, by and between CITY OF ASPEN, COLORADO, a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado and the home rule charter of the City, as borrower (the “City”), and ZMFU II, INC., as lender (the “Lender”). RECITALS WHEREAS, the City of Aspen (the “City”), in the County of Pitkin and State of Colorado, is a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado and the home rule charter of the City (as more particularly defined in Section 1 herein, the “Charter”) (all capitalized terms used and not otherwise defined in the recitals hereof shall have the meaning assigned in Section 1 of this Ordinance); and WHEREAS, under the Charter, the City is possessed of all powers which are necessary, requisite or proper for the government and administration of its local and municipal matters, all powers which are granted to home rule municipalities by the Colorado Constitution, and all rights and powers that now or hereafter may be granted to municipalities by the laws of the State of Colorado; and WHEREAS, the City is authorized by Section 10.1 of the Charter to borrow moneys and to issue general obligation bonds to evidence such borrowing, subject to the approval of a question proposing their issuance at a general or special election by a majority of registered electors of the City voting thereon; and WHEREAS, at an election called on November 6, 2007 (the “Election”), the City submitted the following question (the “Ballot Question”) to the registered electors of the City for approval: SHALL CITY OF ASPEN DEBT BE INCREASED BY UP TO $5,500,000, WITH A MAXIMUM REPAYMENT COST OF $10,780,000 BY THE ISSUANCE OF GENERAL OBLIGATION BONDS FOR THE PURPOSE OF CONSTRUCTING AND EQUIPPING A NEW HYDROELECTRIC FACILITY ON CASTLE CREEK, WHICH DEBT SHALL BE PAYABLE FROM (1) ELECTRIC UTILITY FEES AND (2) TO THE EXTENT THE CITY COUNCIL DETERMINES THAT THE REVENUES PROJECTED TO BE AVAILABLE FROM SUCH ELECTRIC UTILITY FEES WILL BE INSUFFICIENT TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH DEBT AND TO OTHERWISE COMPLY WITH THE COVENANTS OF THE ORDINANCE OR OTHER INSTRUMENTS GOVERNING SUCH DEBT IN ANY YEAR, FROM THE TAXES DESCRIBED BELOW; SHALL CITY TAXES BE INCREASED BY UP TO $359,128 ANNUALLY IN ANY YEAR BY THE LEVY OF AD VALOREM PROPERTY TAXES, WITHOUT LIMITATION AS TO RATE OR AMOUNT P199 IX.c 2 OR ANY OTHER CONDITION, TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, AND INTEREST ON SUCH DEBT AND TO OTHERWISE COMPLY WITH THE COVENANTS OF THE ORDINANCE OR OTHER INSTRUMENTS GOVERNING SUCH DEBT AND TO THE EXTENT THE CITY COUNCIL DETERMINES THAT THE REVENUES PROJECTED TO BE AVAILABLE FROM SUCH ELECTRIC UTILITY FEES WILL NOT BE SUFFICIENT THEREFOR; SHALL SUCH DEBT MATURE, BE SUBJECT TO REDEMPTION, WITH OR WITHOUT PREMIUM, AND BE ISSUED, DATED AND SOLD AT SUCH TIME OR TIMES, AT SUCH PRICES (AT, ABOVE OR BELOW PAR) AND IN SUCH MANNER AND WITH SUCH TERMS, NOT INCONSISTENT HEREWITH, AS THE CITY COUNCIL MAY DETERMINE; AND SHALL THE CITY BE AUTHORIZED TO COLLECT, RETAIN AND EXPEND ALL OF THE REVENUES OF SUCH TAXES, THE PROCEEDS OF SUCH BONDS AND THE EARNINGS THEREON IN 2007 AND EACH SUBSEQUENT YEAR, NOTWITHSTANDING THE LIMITATIONS OF ARTICLE X, SECTION 20 OF THE COLORADO CONSTITUTION (TABOR), SECTION 29-1-301, COLORADO REVISED STATUTES, OR ANY OTHER LAW? WHEREAS, pursuant to such Ballot Question as approved by the voters on November 6, 2007, the City issued its General Obligation Electric Utility Bonds, Series 2008, originally issued in the aggregate principal amount of $5,500,000 and currently outstanding in the aggregate principal amount of $2,090,000 (the “2008 Bonds”); and WHEREAS, pursuant to Section 10.6 of the Charter, the City Council of the City (the “City Council”) may authorize, by ordinance, without an election, the issuance of refunding bonds or any like securities for the purpose of refunding and providing for the payment of the City’s outstanding bonds; and WHEREAS, Article X, Section 20 of the Colorado Constitution (“TABOR”) provides that voter approval in advance is required for the creation of any district (as such term is defined in TABOR, which includes governmental entities such as the City) direct or indirect debt or other multiple-fiscal year financial obligation whatsoever except for refinancing district bonded debt at a lower interest rate; and WHEREAS, the 2008 Bonds maturing on and after December 1, 2019 are subject to redemption prior to their maturity, at the option of the City, on December 1, 2018, or on any date thereafter, at a redemption price equal to the principal amount of the bonds so redeemed, plus accrued interest to the redemption date; and WHEREAS, the City Council has determined that it is in the best interests of the City to refund all of the currently outstanding 2008 Bonds (as more particularly defined herein, the “Refunded Bonds”) for the purpose of refunding such Refunded Bonds at a lower interest rate, and to executed and deliver this Agreement and a Promissory Note to the Lender for the purposes of same; an P200 IX.c 3 WHEREAS, the Lender has agreed, subject to the terms and conditions of this Agreement, to loan a total of $2,150,000 to the City, and such lending of funds is to be made in the form of a General Obligation Electric Utility Refunding Loan in the original principal amount of $2,150,000 (the “Loan”); and WHEREAS, the Loan is evidenced by a Promissory Note as further described herein (the “Note”); and WHEREAS, the Lender is a wholly-owned subsidiary of Zions Bancorporation, N.A., which is (a) an “accredited investor,” as defined in Rule 501(A)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act of 1933, as amended (an “Institutional Accredited Investor”) or (b) a “qualified institutional buyer,” as defined in Rule 144A promulgated under the Securities Act of 1933, as amended (a “Qualified Institutional Buyer”); and WHEREAS, Stifel Nicolaus & Company, Incorporated, is acting as Placement Agent to the City with respect to the placement of the Loan and the Note with the Lender; and WHEREAS, the City Council intends to pay the principal of and interest on the Note from: (a) customer usage fees and any other fees received from the operation of the City’s Electric Utility system on deposit in the City’s Electric Fund (as defined herein) and available for the payment of the Note (as more particularly defined herein, “Available Electric Utility Fees”); and (b) to the extent Available Electric Utility Fees are not sufficient, ad valorem property taxes authorized in the Ballot Question; and WHEREAS, notwithstanding the City’s intention to pay amounts due on the Note from Available Electric Utility Fees and ad valorem property taxes authorized in the Ballot Question, the Note is a general obligation of the City and the full faith and credit of the City are pledged to its payment; and WHEREAS, the City Council specifically elects to apply all of the provisions of Title 11, Article 57, Part 2, C.R.S., to the Loan and the Loan Agreement; and WHEREAS, the proceeds of the Loan is for the purpose of refunding the Refunded Bonds at a lower interest rate, and thus are permitted by Article X, Section 20 of the Colorado Constitution; and WHEREAS, the Charter authorizes the City to issue refunding bonds without an election to refund, pay, and discharge all or any part of its outstanding bonds; and WHEREAS, the proceeds derived from the execution and delivery of the Loan, after payment of the costs of issuance properly allocable thereto, shall be used to fully pay, defease and discharge the Refunded Bonds; and WHEREAS, the City has duly authorized the execution and delivery of this Loan Agreement to provide for the execution and delivery of the Loan; and P201 IX.c 4 WHEREAS, all things necessary to make the Loan, when executed by the City, a valid obligation of the City, and to make this Agreement a valid agreement of the City, in accordance with their and its terms, have been done; and WHEREAS, the Lender is willing to enter into this Agreement and to make the Loan to the City pursuant to the terms and conditions stated herein; and NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the parties hereto agree as follows. ARTICLE I DEFINITIONS “Acts” means, collectively, the State Constitution, the Charter, and Part 2 of Article 57 of Title 11, Colorado Revised Statutes, as amended. “Agreement” means this Loan Agreement, as amended or supplemented from time to time in the accordance with the provisions hereof. “Authorized Person” means the Finance Director or any other individual authorized by the City Council to act as an Authorized Person hereunder by a written instrument filed with the Lender. “Authorizing Ordinance” means the ordinance adopted by the City Council of the City on January 28, 2019, authorizing the City to incur the indebtedness of the Loan and to execute and deliver the Note and this Agreement, and any other documents to which the City may be a party. “Available Electric Utility Fees” means, as of any particular date of determination, all Electric Utility Fees and earnings thereon on deposit in the City’s Electric Fund and available for payment of the principal of and interest on the Note after taking into account all administrative, operation and maintenance expenses of the City payable from the Electric Fund, as determined by the City. “Ballot Question” means the ballot question approved by City voters on November 6, 2007, defined as such in the preambles hereto. “Bond Counsel” means (a) as of the Closing Date, Butler Snow LLP, Denver, Colorado, and (b) as of any other date, Butler Snow LLP, Denver, Colorado, or such other attorneys selected by the City and acceptable to the Lender with nationally recognized expertise in the issuance of tax-exempt debt. “Business Day” means any day of the week on which the Lender is conducting its banking operations nationally and on which day the Lender’s offices are open for business in Denver, Colorado. P202 IX.c 5 “Certified Public Accountant” means a certified public accountant within the meaning of Section 12-2-115, C.R.S., as the same may be amended from time to time, licensed to practice in the State of Colorado. “Charter” means the Charter of the City of Aspen, adopted June 16, 1970, as amended. “City” is defined in the recitals hereof. “City Council” means the City Council of the City, and any successor body. “Closing” means the concurrent execution and delivery of the Notes and this Agreement, by the respective parties thereto, the issuance and disbursement of the Loan, and application of the proceeds thereof in accordance with the provisions hereof and the Closing Memorandum. “Closing Date” means date on which the Closing occurs, estimated to be on or about February 28, 2019. “Closing Memorandum” means the closing memorandum, dated as of the Closing Date, setting forth the uses of the proceeds of the Loan, including the application of a portion of such proceeds to the payment of the costs, expenses and fees incurred in connection with the issuance of the Loan and the deposit of proceeds thereof with the paying agent for the Refunded Bonds for the purpose of defeasing the Refunded Bonds, which closing memorandum is attached as Exhibit C hereto and by this reference incorporated herein. “Collateral” means (a) the Pledged Revenue and (b) all amounts from time to time on deposit in the Loan Fund. “C.R.S.” means the Colorado Revised Statutes, as amended and supplemented as of the date hereof. “Debt” has the meaning set forth in Section 5.11 hereof. “Default” means an event, act or occurrence which, with the giving of notice or the lapse of time (or both), would become an Event of Default. “Election” means the election held within the City November 6, 2007, pursuant to which the Ballot Question was approved. “Electric Fund” means the City’s Electric Enterprise Fund (formerly consisting of the Electric Enterprise Fund and Ruedi Hydroelectric Enterprise Fund, which funds have been combined), and any other fund created by City Council for the purpose of accounting for revenues received in connection with its operation of electric utilities (including, but not limited to, any fund created to account for revenues relating to the Hydroelectric Facility on Castle Creek). “Electric Utility Fees” means customer usages fees and any other fees received by the City as a result of the City’s operation of its Electric Utility. P203 IX.c 6 “Event of Default” has the meaning set forth in Section 7.01 hereof. “Federal Securities” means direct obligations of (including obligations issued or held in book-entry form on the books of), or obligations the principal of and interest on which are guaranteed by, the United States of America. “Finance Director” means the Director of Finance or his or her absence, the Assistant Finance Director. “Financing Documents” means this Agreement and the Note. “Fiscal Year” means January 1 through and including December 31 of the same year, or any other fiscal year of the City as determined by applicable law. “Fixed Interest Rate” has the meaning set forth in Section 2.02 hereof. “Interest Payment Date” means June 1 and December 1 of each year, commencing on June 1, 2019, through and including the Maturity Date. “Interest Period” means the period commencing on the applicable Interest Payment Date to (but not including) the next succeeding Interest Payment Date. “Lender” means ZMFU II, Inc., in its capacity as lender of the Loan. “Loan” means the General Obligation Electric Utility Refunding Loan, Series 2019, made by the Lender to the City in an original principal amount equal to the Loan Amount. “Loan Amount” means two million one hundred fifty thousand dollars ($2,150,000). “Loan Balance” means, as of any relevant date, the 2019 Loan Amount less the sum of all payments of principal received by the Lender for application to the 2019 Loan as of such date. “Loan Fund” means the fund by that name established pursuant to the provisions of Section 3.03(a) hereof, to be administered and maintained by the City in the manner and for the purposes described therein. “Maturity Date” means December 1, 2025. “Note” means the promissory note evidencing the indebtedness of the Loan, dated of even date herewith, from the City, as Maker, to the Lender, as Payee, issued in an original principal amount equal to the Loan Amount in substantially the form of Exhibit A hereto. “Participant” has the meaning set forth in Section 8.02 hereof. “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Title III of Pub. L. 107-56 (signed into law October 26, 2001). P204 IX.c 7 “Payment Date” means a Principal Payment and/or an Interest Payment Date, as applicable. “Permitted Investments” means any investment or deposit permissible for the City under then applicable law. “Person” means an individual, a corporation, a partnership, an association, a joint venture, a trust, an unincorporated organization or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. “Placement Agent” means Stifel, Nicolaus & Company, Incorporated, in its capacity as placement agent to the City. “Placement Agent Agreement” means the Placement Agent Agreement dated as of January 15, 2019, between the City and the Placement Agent. “Pledged Revenue” means the moneys derived by the City from the following sources, net of any costs of collection: i) the Available Electric Utility Fees; ii) ad valorem property tax revenue; and iii) any other legally available moneys which the City determines, in its absolute discretion, to transfer to the Trustee for application as Pledged Revenue. “Prepayment Date” means any date on which the Loan are prepaid, in whole or in part, in accordance with the applicable provisions of Section 2.04 hereof. “Principal Payment Date” means December 1 of each year, commencing December 1, 2019, through and including the Maturity Date. “Redemption Date” means the first date or dates on which any Refunded Bonds may be called for redemption as specified in the Sale Certificate “Refunded Bonds” means all of the outstanding 2008 Bonds. “Refunded Bond Ordinance” means the ordinance authorizing the issuance of the Refunded Bonds. “Refunding Project” means the execution and delivery of the Loan for the purpose of defraying the costs of refunding the Refunded Bonds and payment of the costs of execution and delivery of the Loan. “Supplemental Public Securities Act” means Title 11, Article 57, Part 2, C.R.S. “Tax Certificate” means the tax compliance certificate to be signed at Closing by the City with respect to the Loan, in a form acceptable to Bond Counsel, relating to the requirements of Sections 103 and 141-150 of the Code. P205 IX.c 8 “2008 Bonds” means the City of Aspen, Colorado, General Obligation Electric Utility Bonds, Series 2008, as further described in the recitals hereto. ARTICLE II LOAN Section 2.01 Loan In General. (a) Agreement to Make Loan. The Lender hereby agrees to lend the Loan Amount, subject to the terms and conditions of this Agreement. The Loan shall be evidenced by the Note, the form of which is set forth in Exhibit A attached hereto. (b) Funding of Loan. On the Closing Date, the Lender shall fund the entire Loan Amount and such funds shall be transferred, credited, and disbursed in accordance with the Closing Memorandum attached hereto as Exhibit C. (c) Limitations of Electoral Authorization. The amounts payable to the Lender as principal of and interest on the Loan shall not exceed the maximum annual repayment costs or total repayment costs authorized by the qualified electors of the City voting at the Election. Any amounts due and owing by the City pursuant to this Agreement which do not constitute principal of or interest on the Loan or which exceed such authorized repayment costs shall be subject to prior appropriation by the City Council. Section 2.02 Interest Rates; Interest Payments; Principal Payments. (a) Interest Rate. Commencing on the Closing Date through and including the Maturity Date, the Loan Balance shall bear interest at a fixed rate equal to 2.90% per annum (the “Fixed Interest Rate”). Interest on the Loan shall be calculated on the basis of a 360-day year of twelve 30-day months. (b) Interest Payments. Interest payments on the Loan shall be due and payable semi-annually on each Interest Payment Date, commencing June 1, 2019. (c) Principal Payments. Principal payments on the Loan shall be due and payable on each Principal Payment Date, commencing December 1, 2019, in the amounts set forth below. P206 IX.c 9 Payment Date Principal Amount Due 12/1/2019 $300,000 12/1/2020 300,000 12/1/2021 305,000 12/1/2022 315,000 12/1/2023 330,000 12/1/2024 335,000 12/1/2025* 265,000 *Maturity Date Section 2.03 Manner of Payments. All principal, interest and other payments to be made hereunder by or on behalf of the City to the Lender shall be made, and shall not be considered made until received, in lawful money of the United States of America in immediately available funds. Section 2.04 Optional Prepayment of Loan. The City may, at its option, prepay the Loan, in whole or in part, at any time, at a prepayment price equal to the sum of the principal so prepaid together with accrued and unpaid interest thereon to the date of prepayment, with 30 days’ prior written notice to the Lender. Section 2.05 Costs and Expenses. The City agrees to pay out of the proceeds of the Loan all reasonable costs and expenses of the Lender in connection with (a) the preparation, execution and delivery of this Agreement and any other documents relating to the Loan including, without limitation, the other Financing Documents, which may be delivered by any party in connection with the transactions contemplated under this Agreement and the other Financing Documents; (b) the filing, recording, administration (other than normal, routine administration), enforcement, transfer, amendment, maintenance, renewal or cancellation of this Agreement and all amendments or modifications thereto (or supplements hereto), including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Lender and the allocated cost of in-house counsel and legal staff and independent public accountants and other outside experts retained by the Lender in connection with any of the foregoing; and (c) the fees and expenses of any custodian appointed by the Lender to hold any collateral securing the obligations of the City hereunder. In addition, but subject to prior appropriation by the City Council, the City agrees to pay promptly all costs and expenses of the Lender, including, without limitation, the reasonable fees and expenses of external counsel and the allocated cost of in-house counsel, incurred in connection with (i) the enforcement of this Agreement or any of the other Financing Documents against the City; and/or (ii) contesting any action or proceeding relating to a court order, injunction, or other process or decree restraining or seeking to restrain the City from paying any amount due to the Lender hereunder. Section 2.06 Obligations Unconditional. The City’s obligation to repay the Loan and all of its other obligations under this Agreement shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which the City may have against the Lender, any Participant, or any other Person, including, without limitation, any defense based on the failure of any nonapplication or misapplication of the P207 IX.c 10 proceeds of the Loan hereunder, and irrespective of the legality, validity, regularity or enforceability of all or any of the Financing Documents, and notwithstanding any amendment or waiver of (other than an amendment or waiver signed by the Lender explicitly reciting the release or discharge of any such obligation), or any consent to, or departure from, all or any of the Financing Documents or any exchange, release, or non-perfection of the Collateral securing the obligations of the City hereunder or under the other Financing Documents and any other circumstances or happening whatsoever, whether or not similar to any of the foregoing. Section 2.07 Pledge. The City hereby assigns, transfers, pledges, hypothecates, delivers and grants to the Lender a first priority security interest in and to the Pledged Revenue and the other Collateral to secure the payment of the principal of and interest on the Loan when due. The Loan constitutes a general obligation of the City secured by and payable solely from and to the extent of the Pledged Revenue and the other Collateral. Section 2.08 Conditions to Closing. The making by the Lender of the Loan is conditioned upon the satisfaction of each of the following on or prior to the Closing Date: (a) Financing Documents. All Financing Documents and other instruments applicable to the Loan are in form and content satisfactory to the Lender; have been duly executed and delivered in form and substance satisfactory to the Lender; have not been modified, amended or rescinded and are in full force and effect on and as of the Closing Date; and executed original or certified copies of each thereof shall have been delivered to the Lender. (b) Certified Proceedings. The Lender is in receipt of an executed original or certified copy of the Authorizing Ordinance of the City, which shall be in form and content satisfactory to the Lender and shall duly and properly authorize the City to issue the Loan, to execute and deliver this Agreement and the other Financing Documents to which the City is a party, and perform all acts contemplated hereunder and thereunder, and as to other matters of fact as shall reasonably be requested by the Lender. (c) City Certificate. The City has provided the Lender with a certificate certifying that on the Closing Date each representation and warranty on the part of the City contained in this Agreement and in any other Financing Document to which the City is a party is true and correct and no Event of Default, or event which would, with the passage of time or the giving of notice, constitute an Event of Default, has occurred and is continuing and no Default exists under any other Financing Document to which the City is a party, or under any other agreement by and between the City and the Lender relating to the Loan and certifying as to such other matters as the Lender might reasonably request. (d) Other Proceedings. All proceedings of any party taken in connection with the transactions contemplated by this Agreement and the other Financing Documents, and all instruments, authorizations and other documents applicable thereto, are satisfactory to the Lender and its counsel. (e) Opinion of Bond Counsel. The Lender shall have received an opinion of Bond Counsel dated as of the Closing Date and addressed to the Lender (or a reliance letter in lieu thereof), to the effect that the Loan constitutes a valid and binding general obligation of the P208 IX.c 11 City; that the Note and this Agreement have been duly authorized and, assuming the due execution of the Lender hereto and thereto, constitute valid and binding obligations of the City legally enforceable against the City in accordance with their terms (provided, however, that no opinion shall be expressed as to the enforceability of any provision whereby the City purports to indemnify any party); and addressing the tax exempt nature of the interest on the Loan for federal and State income tax purposes. (f) Opinion of City Attorney. The Lender shall have received an opinion of the City Attorney dated as of the Closing Date and addressed to the Lender, with respect to such matters as the Lender may require, including opinions as to the organization of the City Council, to the effect that all governmental approvals, if any, necessary for the City to execute, deliver and perform its obligations under this Agreement and the other Financing Documents to which the City is a party have been duly obtained; that the Authorizing Ordinance was duly and properly adopted, is in full force and effect, and has not been rescinded as of the Closing Date; that this Agreement and the other Financing Documents to which the City is a party have been duly authorized, executed, and delivered by the City; and otherwise in form and substance acceptable to the Lender and its counsel. (g) No Change in Law. No law, regulation, ruling or other action of the United States, the State of Colorado or any political subdivision or authority therein or thereof shall be in effect or shall have occurred, the effect of which would be to prevent the City from fulfilling its obligations under this Agreement or the other Financing Documents to which the City is a party. (h) Payment of Costs and Expenses. All fees and expenses due and payable in connection with the execution and delivery of this Agreement and the other Financing Documents and the transactions contemplated hereunder and thereunder shall have been paid by the City. (i) Due Diligence. The Lender shall have been provided with the opportunity to review all pertinent financial information regarding the City; all agreements, documents, and any other material information relating to the City or the Collateral; and any other pertinent data relating to the City or the Collateral. (j) Accuracy and Completion. All information provided by the City to the Lender shall be, as of the Closing Date, complete and accurate in all respects. (k) No Breach or Other Violation. The City shall not, as of the Closing Date, be in violation or breach of any other agreement with the Lender or of any third party of any nature or kind. (l) No Material Adverse Change. No material adverse change has, in the sole opinion of the Lender based on its business expertise, occurred with respect to the City’s business operations, financial condition or performance, as reflected in the most recent financial statements provided to the Lender or as otherwise known by the Lender. P209 IX.c 12 (m) Other Certificates and Approvals. The Lender shall have received such other certificates, approvals, filings, opinions and documents as shall be reasonably requested by the Lender. (n) Other Legal Matters. All other legal matters pertaining to the execution and delivery of this Agreement and the other Financing Documents and the full and timely performance of the transactions contemplated hereunder and thereunder shall be reasonably satisfactory to the Lender. ARTICLE III FUNDS AND ACCOUNTS Section 3.01 Creation of Funds and Accounts. (a) The following funds are hereby created and established, each of which shall be administered by the City in accordance with the provisions hereof: (i) the Loan Fund; (ii) the Transaction Costs Fund. (b) Immediately upon execution and delivery of the Loan and from the proceeds thereof, and from other available money of the City, the City shall make the following credits: (i) to Wells Fargo Bank, National Association, as paying agent for the Refunded Bonds, proceeds of the Loan sufficient, when combined with other legally available moneys of the City which may be credited thereto, to fully pay, defease and discharge the Refunded Bonds on the Redemption Date; (ii) to the Transaction Costs Fund, $38,348.48. Section 3.02 Flow of Funds. Following the Closing Date of the Loan, the City shall transfer all amounts comprising Pledged Revenue to the Lender to be applied in the order of priority set forth below: FIRST: To the credit of the Loan Fund, the amounts required by Section 3.03 hereof; and SECOND: To the Lender, for application to any amounts due and owing hereunder other than principal and interest payments on the Loan pursuant to written notice from the Lender to the City; P210 IX.c 13 Section 3.03 Loan Fund. There is hereby established and the City covenants to maintain in accordance with the provisions hereof a special fund designated as the City of Aspen, Colorado, General Obligation Electric Utility Refunding Loan, Loan Fund (the “Loan Fund”). (a) Use of Moneys in Loan Fund. Moneys in the Loan Fund shall be uses solely for the purpose of paying the principal of and interest on the Loan. (b) Interest Account. The Interest Account shall be used to pay the interest on Loan. Not later than five Business Days prior to each Interest Payment Date, the City shall credit to the Interest Account, from the Pledged Revenue (and any interest income to be credited to the Interest Account), an amount equal to the interest to come due on the Loan on the next succeeding Interest Payment Date. (c) Principal Account. The Principal Account shall be used to pay the principal of the Loan. Not later than five Business Days prior to each Principal Payment Date, the City shall credit to the Interest Account, the City shall credit to the Principal Account, from the Pledged Revenue (and any interest income to be credited to the Principal Account), an amount equal to the principal coming due on the Loan on the next succeeding Principal Payment Date. (d) Levy of Ad Valorem Taxes. For the purpose of paying the principal of and interest on the Note when due, respectively, the City Council shall, before such time provided for by law for levying other City taxes, annually determine a rate of levy for general ad valorem taxes, without limitation as to rate or amount, on all of the taxable property within the City, that will be sufficient, when combined with amounts then on deposit in the Loan Fund and the amounts projected to be deposited to the Loan Fund in the immediately succeeding calendar year from Available Electric Utility Fees pursuant to subsection (d) of this Section, and from other moneys pursuant to subsection (h) of this Section, to pay the principal of and interest on the Note when due, respectively, whether at maturity or upon earlier redemption, in the immediately succeeding calendar year. Annually, at the time of certification of the general ad valorem taxes, the City Council shall make specific findings with respect to the Available Electric Utility Fees projected for the immediately succeeding calendar year and all other amounts described in the preceding sentence projected to be transferred to the Loan Fund in the immediately succeeding calendar year or then on deposit therein. The City Council shall, in certifying annual levies for general ad valorem taxes, take into account the maturing indebtedness of the Note for the ensuing year, deficiencies and defaults of prior years and any reimbursement and shall make ample provision for the payment thereof. The general ad valorem taxes levied pursuant to this subsection, when collected, shall be deposited into the Loan Fund. (e) Covenant Upon Deficiency in Note Account. Notwithstanding anything else contained herein, the City hereby irrevocably covenants and agrees that, in the event that amounts on deposit in the Loan Fund on any date on which the City is required to deposit amounts with the Lender pursuant to this Section is less than the amount sufficient to pay the principal of and interest on the Note on the corresponding Interest P211 IX.c 14 Payment Date, the City Council shall immediately transfer previously appropriated moneys in the amount of such deficiency from the general fund or any other legally available fund of the City to the Loan Fund for the payment of such amounts, and shall promptly pass and adopt supplemental or emergency ordinances or resolutions as are required to effectuate such transfer and use. Thereafter, such appropriations and transfers shall continue to be made in such amounts and with sufficient frequency to assure that the moneys on deposit in the Loan Fund shall be sufficient to pay the principal of and interest on the Note when due. Upon the next succeeding levy of ad valorem property taxes for the Note pursuant to subsection (e) of this Section, the taxes levied pursuant thereto shall include amounts sufficient to reimburse the fund from which amounts were transferred pursuant to this subsection and such reimbursement shall be made and appropriation made therefor upon the collection of such taxes. (f) Levy of Additional Ad Valorem Taxes. If the moneys on deposit in the Note Account, including, but not limited to, moneys of the City deposited therein pursuant to subsections (d), (e) and (h) of this Section, are not sufficient to pay punctually the annual installments on the contracts or bonds of the City, and interest thereon, and to pay defaults and deficiencies, the City Council shall make such additional levies of taxes as may be necessary for such purposes, and such taxes shall be made and continue to be levied until the indebtedness is fully paid. The general ad valorem taxes levied pursuant to this subsection, when collected, shall be deposited into the Loan Fund. (g) Use or Advance of Other Legally Available Moneys. Nothing herein shall be interpreted to prohibit or limit the ability of the City to use legally available funds of the City other than moneys required by this Agreement to be transferred to or deposited into the Loan Fund to pay all or any portion of the principal of or interest on the Note. If and to the extent such other legally available moneys are used to pay the principal of or interest on the Note, the City may, but shall not be required to, (i) reduce the amount of taxes levied for such purpose pursuant to subsection (d) of this Section or (ii) use proceeds of taxes levied pursuant to subsection (d) of this Section to reimburse the fund or account from which such other legally available moneys are withdrawn for the amount withdrawn from such fund or account to pay the principal of or interest on the Note. If the City selects alternative (ii) in the immediately preceding sentence, the taxes levied pursuant to subsection (d) of this Section shall include amounts sufficient to fund the reimbursement. (h) Appropriation and Budgeting of Proceeds of Moneys. All amounts transferred to or deposited into the Loan Fund pursuant to this Agreement are hereby appropriated for that purpose, and all amounts required to pay the principal of and interest on the Note when due, respectively, in each year shall be included in the annual budget and appropriation ordinance to be adopted and passed by the City Council for such year. Section 3.04 Transaction Costs Fund. The Transaction Costs Fund shall be maintained by the City in accordance with the terms of this Section 3.04. All moneys on deposit in the Transaction Costs Fund shall be applied to the payment of the costs incurred in connection P212 IX.c 15 with the Financing Documents in accordance with invoices provided to the City. At such time as no amounts remain in the Transaction Costs Fund, such fund shall terminate. ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE CITY While any obligations hereunder or under any of the other Financing Documents are unpaid or outstanding, the City continuously represents and warrants to the Lender as follows: Section 4.01 Due Organization. The City is a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado and the home rule charter of the City. Section 4.02 Power and Authorization. The City has all requisite power and authority to own and convey its properties and to carry on its business as now conducted and as contemplated to be conducted under the Financing Documents; to execute, deliver and to perform its obligations under this Agreement and the other Financing Documents; and to cause the execution, delivery and performance of the Financing Documents. Section 4.03 No Legal Bar. The City is not in violation of any of the provisions of the laws of the State of Colorado or the United States of America or any of the provisions of any order of any court of the State of Colorado or the United States of America which would affect its existence or its powers referred to in the preceding Section 4.02. The execution, delivery and performance by the City of this Agreement and of the other Financing Documents (a) will not violate any provision of any applicable law or regulation or of any order, writ, judgment or decree of any court, arbitrator or governmental authority; (b) will not violate any provisions of any document constituting, regulating or otherwise affecting the operations or activities of the City; and (c) will not violate any provision of, constitute a default under, or result in the creation, imposition or foreclosure of any lien, mortgage, pledge, charge, security interest or encumbrance of any kind other than liens created or imposed by the Financing Documents, on any of the revenues or other assets of the City which could have a material adverse effect on the assets, financial condition, business or operations of the City, on the City’s power to cause the Financing Documents to be executed and delivered, or its ability to pay in full in a timely fashion the obligations of the City under this Agreement or the other Financing Documents. Section 4.04 Consents. The City has obtained all consents, permits, licenses and approvals of, and has made all registrations and declarations with any governmental authority or regulatory body required for the execution, delivery and performance by the City of this Agreement and the other Financing Documents. Section 4.05 Litigation. There is no action, suit, inquiry or investigation or proceeding to which the City is a party, at law or in equity, before or by any court, arbitrator, governmental or other board, body or official which is pending or, to the best knowledge of the City, threatened in connection with any of the transactions contemplated by this Agreement or against or affecting the assets of the City, nor, to the best knowledge of the City, is there any basis therefor, wherein an unfavorable decision, ruling or finding (a) would adversely affect the validity or P213 IX.c 16 enforceability of, or the authority or ability of the City to perform its obligations under, the Financing Documents; (b) would, in the reasonable opinion of the City, have a materially adverse effect on the ability of the City to conduct its business as presently conducted or as proposed or contemplated to be conducted; or (c) would adversely affect the exclusion of interest on the Loan from gross income for federal income tax purposes or the exemption of such interest from State of Colorado personal income taxes. Section 4.06 Enforceability. This Agreement and each of the other Financing Documents to which the City is a party constitute the legal, valid and binding obligations of the City, enforceable against the City in accordance with their terms (except as such enforceability may be limited by bankruptcy, moratorium or other similar laws affecting creditors’ rights generally and provided that the application of equitable remedies is subject to the application of equitable principles). Section 4.07 Changes in Law. To the best knowledge of the City, there is not pending any change of law which, if enacted or adopted could have a material adverse effect on the assets, financial condition, business or operations of the City, on the City’s power to issue or its ability to pay in full in a timely fashion the obligations of the City under this Agreement or the other Financing Documents. Section 4.08 Financial Information and Statements. The audited financial statements and other information previously provided to the Lender or provided to the Lender in the future are or will be complete and accurate and prepared in accordance with generally accepted accounting principles. There has been no material adverse change in the City’s financial condition since such information was provided to the Lender. Section 4.09 Accuracy of Information. All information, certificates or statements given to the Lender pursuant to this Agreement and the other Financing Documents will be, to the best of the City’s knowledge, true and complete when given. Section 4.10 Tax-Exempt Status. The City has not taken any action or omitted to take any action, and knows of no action taken or omitted to be taken by any other Person, which action, if taken or omitted, would adversely affect the exclusion of interest on the Loan from gross income for federal income tax purposes, or affect the exemption of interest on the Loan from State personal income taxes. Section 4.11 Financing Documents. Each representation and warranty of the City contained in any Financing Document is true and correct as of the Closing Date. Section 4.12 Regulations U and X. The City is not engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U or X issued by the Board of Governors of the Federal Reserve System); and no proceeds of the Loan will be or have been used to extend credit to others for the purpose of purchasing or carrying any margin stock. Section 4.13 No Default. The City is not in default in the performance, observance, or fulfillment of any of the obligations, covenants or conditions contained in any Financing Document or other resolution, agreement or instrument to which it is a party which would have a P214 IX.c 17 material adverse effect on the ability of the City to perform its obligations hereunder or under the other Financing Documents, or which would affect the enforceability hereof or thereof. Section 4.14 No Filings. No filings, recordings, registrations or other actions are necessary to create and perfect the pledges provided for herein; the obligations of the City hereunder are secured by the lien and pledge provided for hereby; and the liens and pledges provided for herein constitute valid prior liens subject to no other liens. Section 4.15 Outstanding Debt. Except for the Loan, the City has no Debt outstanding as of the date hereof (other than the Refunded Bonds which are redeemed as of the Closing Date). ARTICLE V COVENANTS OF THE CITY While any obligations hereunder or under any of the other Financing Documents are unpaid or outstanding, the City continuously warrants and agrees as follows: Section 5.01 Performance of Covenants, Authority. The City covenants that it will faithfully perform and observe at all times any and all covenants, undertakings, stipulations, and provisions contained in this Agreement and the other Financing Documents to which it is a party and all its proceedings pertaining thereto as though such covenants, undertakings, stipulations, and provisions were set forth in full herein. The City covenants that it is duly authorized under the constitution and laws of the State of Colorado, including, particularly and without limitation, the City’s home rule charter, to issue the Loan and to execute and deliver the Notes, this Agreement, and the other Financing Documents to which it is a party, and that all action on its part for the issuance of the Loan and the execution and delivery of the Note, this Agreement, and the other Financing Documents to which it is a party has been duly and effectively taken and will be duly taken as provided therein and herein, and that the Loan, the Notes, this Agreement, and the other Financing Documents to which the City is a party are and will be valid and enforceable obligations of the City according to the terms hereof. Section 5.02 Laws, Permits and Obligations. The City will comply in all material respects with all applicable laws, rules, regulations, orders and directions of any governmental authority and all agreements and obligations binding on the City, noncompliance with which would have a material adverse effect on the City, its financial condition, assets or ability to perform its obligations under this Agreement and/or the other Financing Documents to which it is a party; provided that the City may in good faith contest such laws, rules, regulations, orders and directions and the applicability thereof to the City to the extent that such action would not be likely to have a material adverse effect on the City’s ability to perform its obligations hereunder. Section 5.03 Tax Covenants. (a) For purposes of ensuring that the interest on the Loan is and remains excluded from gross income for federal income tax purposes, the City hereby covenants that it will not take any action or omit to take any action with respect to the Loan, the proceeds thereof, P215 IX.c 18 any other funds of the City or any facilities financed or refinanced with the proceeds of the Loan if such action or omission (i) would cause the interest on the Loan to lose its exclusion from gross income for federal income tax purposes under Section 103 of the Code, or (ii) would cause interest on the Loan to lose its exclusion from alternative minimum taxable income as defined in Section 55(b)(2) of the Code, or (iii) would cause interest on the Loan to lose its exclusion from Colorado taxable income and Colorado alternative minimum taxable income under present State law. The foregoing covenant shall remain in full force and effect notwithstanding the payment in full or defeasance of the Note until the date on which all obligations of the City in fulfilling the above covenant under the Code have been met. (b) In the event that at any time the City is of the opinion that for purposes of this Section it is necessary to restrict or to limit the yield on the investment of any moneys held by the Lender or held by the City, the City shall so restrict or limit the yield on such investment or shall so instruct the Lender in a detailed certificate. (c) The City specifically covenants to comply with the provisions and procedures of the Tax Certificate. (d) The covenants contained in this Section 5.03 shall remain in full force and effect until the date on which all obligations of the City in fulfilling such covenants under the Code and Colorado law have been met, notwithstanding the payment in full or defeasance of the Loan. Section 5.04 Bonding and Insurance. The City shall carry general liability coverage, workers’ compensation, public liability, and such other forms of insurance on insurable City property upon the terms and conditions, and issued by recognized insurance companies, as in the judgment of the City would ordinarily be carried by entities having similar properties of equal value, such insurance being in such amounts as will protect the City and its operations. In addition, each City official or other Person having custody of any City funds or responsible for the handling of such funds, shall be bonded or insured against theft or defalcation at all times. Section 5.05 Other Liabilities. The City shall pay and discharge, when due, all of its liabilities, except when the payment thereof is being contested in good faith by appropriate procedures which will avoid financial liability and with adequate reserves provided therefor. Section 5.06 Proper Books and Records. The City shall keep or cause to be kept adequate and proper records and books of account in which complete and correct entries shall be made with respect to the City, the Pledged Revenue, and all of the funds and accounts established or maintained pursuant to any of the Financing Documents. The City shall (a) maintain accounting records in accordance with generally recognized and accepted principles of accounting consistently applied throughout the accounting periods involved; (b) provide the Lender with such information concerning the business affairs and financial condition (including insurance coverage) of City as the Lender may reasonably request; and (c) without request, provide the Lender with the information set forth in Section 5.07 hereof. P216 IX.c 19 Section 5.07 Reporting Requirements. (a) The City shall notify the Lender promptly of all interim litigation or administrative proceedings, threatened or pending, against the City which would, if adversely determined, in City’s reasonable opinion, have a material adverse effect on the City’s financial condition arising after the date hereof. (b) The City shall provide the following to the Lender at the times and in the manner provided below: (i) Audited Financial Statements – As soon as available, but not later than September 30th of each year, the City shall furnish to the Lender its unqualified audited financial statements prepared in accordance with generally accepted accounting principles consistently applied, in reasonable detail and audited by a firm of independent Certified Public Accountants selected by the City and satisfactory to the Lender; (ii) Annual Budget – As soon as available, but in no event later than 30 days after the end of each Fiscal Year, the City shall furnish to the Lender the City’s annual budget for such Fiscal Year and, as soon as available, shall furnish a copy of any proposed amendments thereto; and (iii) Requests for Information – Promptly upon request of the Lender, the City shall furnish to the Lender such other reports or information regarding the Pledged Revenue or the assets, financial condition, business or operations of the City, as the Lender may reasonably request. (c) The City shall promptly notify the Lender of any Default or Event of Default of which the City has knowledge, setting forth the details of such Default or Event of Default and any action which the City proposes to take with respect thereto. (d) The City shall notify the Lender as soon as possible after the City acquires knowledge of the occurrence of any event which, in the reasonable judgment of the City, is likely to have a material adverse effect on the financial condition of the City or affect the ability of the City to perform its obligations under this Agreement or under any other Financing Document. Section 5.08 Visitation and Examination. Unless otherwise prohibited by law, the City will permit any Person designated by the Lender to visit any of its offices to examine the City’s books and financial records, and make copies thereof or extracts therefrom, and to discuss its affairs, finances and accounts with its principal officers, all at such reasonable times and as often as the Lender may reasonably request. Section 5.09 Further Assurances. The City shall do, execute, acknowledge, and deliver or cause to be done, executed, acknowledged and delivered, such amendments hereto and such further acts, instruments, and transfers as the Lender may reasonably require for the better assuring, transferring, and pledging unto the Lender the Pledged Revenue. P217 IX.c 20 Section 5.10 Covenant To Impose Ad Valorem Property Tax Mill Levy. The City hereby covenants as follows: (a) To impose an ad valorem property tax as provided in Section 3.03 hereof. (b) Said direct annual taxes levied to pay said principal and interest shall be in addition to any, and all other, taxes levied to effect the purposes of the City. No statutory or constitutional provisions enacted after the delivery of the Loan herein authorized shall in any manner be construed as limiting or impairing the obligation of the City to levy ad valorem taxes for the payment of the principal of and interest on the Loan. (c) The foregoing provisions of this Agreement are hereby declared to be the certificate of the Board to the Board of County Commissioners of Pitkin County, showing the aggregate amount of taxes to be levied for the purpose aforesaid by the Board of County Commissioners of Pitkin County from time to time, as required by law, and for the purposes of paying the principal of and interest on the Loan. (d) The amounts necessary to pay all costs and expenses incidental to effecting the transactions contemplated under the Financing Documents and paying the Principal of and interest on the Loan are hereby appropriated for said purposes, and such amounts as appropriate for each year shall also be included in the annual budget and appropriation resolutions to be adopted and passed by the Board in each year, respectively, until the Loan have been fully paid, satisfied, and discharged and the Notes, and this Agreement. (e) Said taxes shall be levied, assessed, collected and enforced at the time and in the form and manner and with like interest and penalties as other general taxes in the state, and when collected said taxes shall be paid to the City as provided by law. The Board shall take all necessary and proper steps to enforce promptly, or to cause the appropriate officials of the County to enforce promptly, the payment of taxes levied. (f) In the event any ad valorem taxes are not paid when due, the City shall diligently cooperate with the appropriate county treasurer to enforce the lien of such unpaid taxes against the property for which the taxes are owed. Section 5.11 Continued Existence. The City shall maintain its existence and shall not merge or otherwise alter its corporate structure in any manner or to any extent as might reduce the security provided for the payment of the Loan, and will continue to operate and manage the City and its facilities in an efficient and economical manner in accordance with all applicable laws, rules and regulations. Section 5.12 Material Adverse Action. The City shall not take any action nor consent to any action that would materially adversely affect any portion of the Pledged Revenue. Section 5.13 No Change in Financing Documents. The City shall not cancel, terminate, amend, supplement, modify or waive any of the provisions of any of the Financing Documents or consent to any such cancellation, termination, amendment, supplement, modification or waiver, without the prior written consent of the Lender. The City shall take no action under any of the Financing Documents to which it is a party inconsistent with the rights of P218 IX.c 21 the Lender under this Agreement including, without limitation, its obligations to make payments to the Lender hereunder. Section 5.14 References to Lender. The City shall not refer to the Lender in any official statement, offering memorandum, or private placement memorandum without the Lender’s prior written consent thereto; provided, however, that references to the Lender contained in the City’s audited financial statements are permitted. Section 5.15 Termination of Agreement. So long as the City’s obligations hereunder remain unpaid or unperformed, the City shall not terminate this Agreement. At such time as no amounts are due and owing to the Lender hereunder, this Agreement shall terminate. Section 5.16 No Lien or Security Interest in Pledged Revenue. Except for the Loan, the City shall not grant or permit to be granted any lien on or security interest in and to any portion of the Pledged Revenue. Section 5.17 Electoral Authorization. The City shall not take any action, or consent to any action, which would have the effect of reducing the parameters of its electoral authorization, including, without limitation, the interest rates, maturities, mill levies, tax increases, and maximum repayment cost as approved by the qualified electors of the City voting at the elections held by the City as of the date hereof. P219 IX.c 22 ARTICLE VI REPRESENTATIONS OF LENDER; CONCERNING THE ADMINISTRATIVE AGENT Section 6.01 Accredited Investor. The Lender is an organization that qualifies as an “accredited investor,” as defined in § 11-59-110(1)(g) C.R.S. Section 6.02 Financial Institution or Institutional Investor. The Lender is an organization that qualifies as a “financial institution or institutional investor” as defined in §32- 1-103(6.5), C.R.S. ARTICLE VII EVENTS OF DEFAULT AND REMEDIES Section 7.01 Events of Default. The occurrence of any one or more of the following events or the existence of any one or more of the following conditions shall constitute an Event of Default under this Agreement: (a) Nonpayment of Principal or Interest. Failure to make any payment of principal of or interest on the Loan when due; (b) Breach or Nonperformance of Duties. Breach by the City of any material covenant set forth herein or failure by the City to perform any material duty imposed on it hereunder and continuation of such breach or failure for a period of 60 days after receipt by the Mayor of written notice thereof from the Lender, provided that such 60 day period shall be extended so long as the City has commenced and continues a good faith effort to remedy such breach or failure; (c) Bankruptcy or Receivership. An order of decree by a court of competent jurisdiction declaring the City bankrupt under federal bankruptcy law or appointing a receiver of all or any material portion of the City’s assets or revenues is entered with the consent or acquiescence of the City or is entered without the consent or acquiescence of the City but is not vacated, discharged or stayed within 30 days after it is entered. Section 7.02 Remedies. Upon the occurrence and during the continuance of any Event of Default, the Lender at its option, may do any one or more of the following: (a) Remedies. Upon the occurrence and continuance of any Event of Default, the Lender may proceed against the City to protect and to enforce its rights by mandamus, injunction or by other suit, action or special proceedings in equity or at law, in any court of competent jurisdiction: (i) for the payment of interest on any installment of principal of the Loan that was not paid when due at the interest rate borne by such Loan, (ii) for the specific performance of any covenant contained herein, (iii) to enjoin any act that may be unlawful or in violation of any right of the Lender, (iv) for any other proper legal or equitable remedy or (v) any combination of such remedies or as otherwise P220 IX.c 23 may be authorized by applicable law; provided, however, that acceleration of any amount not yet due on the Loan according to their terms shall not be an available remedy. (b) Failure to Pursue Remedies Not a Release; Rights Cumulative. The failure of the Lender to proceed in accordance with subsection (a) of this Section shall not relieve the City of any liability for failure to perform or carry out its duties under this Agreement. Each right or privilege of the Lender is in addition and is cumulative to any other right or privilege, and the exercise of any right or privilege by or on behalf of the Lender shall not be deemed a waiver of any other right or privilege of the Lender. Section 7.03 No Waiver of One Default to Affect Another; All Remedies Cumulative. No waiver of any Event of Default hereunder shall extend to or affect any subsequent or any other then existing Event of Default or shall impair any rights or remedies consequent thereon. All rights and remedies of the Lender provided herein shall be cumulative and the exercise of any such right or remedy shall not affect or impair the exercise of any other right or remedy. Section 7.04 Other Remedies. Nothing in this Article VII is intended to restrict the Lender’s rights under any of the Financing Documents or at law or in equity, and the Lender may exercise all such rights and remedies as and when they are available. Section 7.05 Sovereign Immunity. Notwithstanding any other provisions of this Agreement to the contrary, no term or condition of this Agreement or any other Financing Document shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections or other provisions of the Colorado Governmental Immunity Act, Title 24, Article 10, C.R.S., as now or hereafter amended. ARTICLE VIII MISCELLANEOUS Section 8.01 Loan Agreement and Relationship to Other Documents. The warranties, covenants and other obligations of the City (and the rights and remedies of the Lender) that are outlined in this Agreement and the other Financing Documents are intended to supplement each other. In the event of any inconsistencies in any of the terms in the Financing Documents, all terms will be cumulative so as to give the Lender the most favorable rights set forth in the conflicting documents, except that if there is a direct conflict between any preprinted terms and specifically negotiated terms (whether included in an addendum or otherwise), the specifically negotiated terms will control. Section 8.02 Assignments, Participations, etc. by the Lender. This Agreement and the Note shall be assignable by the Lender to any entity without the consent of the City, provided that the Lender shall not assign or transfer this Agreement or the Note to any Person who or which is not (i) an affiliate of the Lender; (ii) a “Bank” as defined in Section 3(a)(2) of the Securities Act of 1933 as amended (the “Securities Act”); (iii) an “Accredited Investor” as defined in Regulation D under the Securities Act; or (iv) a “Qualified Institutional Buyer” as defined in Rule 144A under the Securities Act. The Lender agrees that any P221 IX.c 24 assignment or transfer in violation of the foregoing shall be null and void and of no force or effect, at the election of the City. In connection with any such assignment or participation, the Lender may disclose to any proposed assignee or participant any information without the City’s consent. Any such assignment or participation is also subject to the following conditions: The rights, options, powers and remedies granted in this Agreement and the other Financing Documents will extend to the Lender and to its successors and assigns, will be binding upon the City and its successors and assigns and will be applicable hereto and to all renewals and/or extensions hereof. The Lender may at any time, without the consent of the City, sell to one or more commercial banks or other Persons not affiliates of the City (a “Participant”) participating interests in its rights and obligations hereunder or under the other Financing Documents; provided, however, that (i) the Lender’s obligations hereunder shall remain unchanged, (ii) the Lender shall remain solely responsible for the performance of such obligations, and (iii) the participation of one or more Participants shall not reduce or alter the Lender’s obligations hereunder or affect in any way the rights or obligations of the City hereunder and the City has the right to continue to deal solely with the Lender. In the case of any such participation, the Participant shall be entitled to the benefit of Section 8.03 (pertaining to litigation and indemnification) hereof as though it were also the Lender hereunder. The Lender will give notice of the sale of such participation and the name of the Participant to the City within 30 days of the date of such sale. Section 8.03 Defeasance When all principal of and interest on the Loan has been duly paid, the lien of the Lender on the Pledged Revenue and the other Collateral created by this Loan Agreement shall thereby be discharged and the Loan shall be deemed fully paid, satisfied and no longer outstanding within the meaning of this Agreement. There shall be deemed to be such due payment when: (a) the City has placed in escrow and in trust with a commercial bank located within or without the State of Colorado, and exercising trust powers, an amount sufficient (including the known minimum yield from Federal Securities in which such amount may be initially invested) to meet all requirements of the principal of and interest on the Loan as the same become due to the Maturity Date or upon designated prior prepayment in accordance with the provisions hereof, and such 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 established and agreed upon between the City and such commercial bank at the time of the creation of the escrow, or the Federal Securities shall be subject to redemption at the option of the holders thereof to assure such availability as so needed to meet such schedule; and (b) (i) a firm of Certified Public Accountants shall have determined the sufficiency of the escrow and delivered its report showing that the payment of principal of and interest on the securities held in escrow for the payment of the Loan will be sufficient without reinvestment to pay the principal of if any, and interest on the Loan when due; or (ii) the escrow shall be fully funded with cash. P222 IX.c 25 Section 8.04 Notices. Notice of any record shall be deemed delivered when the record has been (a) deposited in the United States Mail, postage pre-paid; (b) received by overnight delivery service; (c) received by telex; (d) received by facsimile; (e) received through the internet; or (f) when personally delivered at the following addresses: if to the City: City of Aspen ATTN: Finance Director 130 S. Galena St. Aspen, Colorado 81611 Phone: 970-920-5007 Fax: 970-920-5197 if to the Lender: Vectra Bank Municipal Finance 2000 S. Colorado Blvd, Ste. 2-1200 Denver, Colorado 80222 Phone: (720) 947-7799 ZMFU II, Inc. One South Main, 18th Floor Salt Lake City, Utah 84133 ATTN: Todd Harris Section 8.05 Payments. Payments due on the Loan shall be made in lawful money of the United States. All payments may be applied by the Lender to principal, interest and other amounts due under the Notes and this Agreement in any order which the Lender elects. Section 8.06 Applicable Law and Jurisdiction; Interpretation; Severability. This Agreement and all other Financing Documents will be governed by and interpreted in accordance with the internal laws of the State of Colorado, except to the extent superseded by Federal law. Invalidity of any provisions of this Agreement will not affect any other provision. THE CITY AND THE LENDER HEREBY CONSENT TO THE EXCLUSIVE JURISDICTION OF THE DISTRICT COURT FOR PITKIN COUNTY, COLORADO, AND WAIVE ANY OBJECTIONS BASED ON FORUM NON CONVENIENS, WITH REGARD TO ANY ACTIONS, CLAIMS, DISPUTES OR PROCEEDINGS RELATING TO THIS AGREEMENT, THE NOTES, THE PLEDGED REVENUE, ANY OTHER FINANCING DOCUMENT, OR ANY TRANSACTIONS ARISING THEREFROM, OR ENFORCEMENT AND/OR INTERPRETATION OF ANY OF THE FOREGOING. Nothing in this Agreement will affect the Lender’s rights to serve process in any manner permitted by law. This Agreement, the other Financing Documents and any amendments hereto (regardless of when executed) will be deemed effective and accepted only at the Lender’s offices, and only upon the Lender’s receipt of the executed originals thereof. Invalidity of any provision of this Agreement shall not affect the validity of any other provision. Section 8.07 Copies; Entire Agreement; Modification. The City hereby acknowledges the receipt of a copy of this Agreement and all other Financing Documents. P223 IX.c 26 IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING, EXPRESSING CONSIDERATION AND SIGNED BY THE PARTIES ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN TH IS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. THE TERMS OF THIS AGREEMENT MAY ONLY BE CHANGED BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE SHALL ALSO BE EFFECTIVE WITH RESPECT TO ALL OTHER CREDIT AGREEMENTS NOW IN EFFECT BETWEEN THE CITY AND THE LENDER. A MODIFICATION OF ANY OTHER CREDIT AGREEMENT NOW IN EFFECT BETWEEN THE CITY AND THE LENDER, WHICH OCCURS AFTER RECEIPT BY THE CITY OF THIS NOTICE, MAY BE MADE ONLY BY ANOTHER WRITTEN INSTRUMENT. ORAL OR IMPLIED MODIFICATIONS TO ANY SUCH CREDIT AGREEMENT ARE NOT ENFORCEABLE AND SHOULD NOT BE RELIED UPON. Section 8.08 Attachments. All documents attached hereto, including any appendices, schedules, riders and exhibits to this Agreement, are hereby expressly incorporated by reference. Section 8.09 No Recourse Against Officers and Agents. Pursuant to Section 11-57-209 of the Supplemental Public Securities Act, if a member of the Board, or any officer or agent of the City, acts in good faith in the performance of his duties as a member, officer, or agent of the Board or the City and in no other capacity, no civil recourse shall be available against such member, officer or agent for payment of the principal of and interest on the Loan. Such recourse shall not be available either directly or indirectly through the Board or the City, or otherwise, whether by virtue of any constitution, statute, rule of law, enforcement of penalty, or otherwise. By the acceptance of the delivery of the Notes evidencing the Loan and as a part of the consideration for such transfer, the Lender and any Person purchasing or accepting the transfer of the obligation representing the Loan specifically waives any such recourse. This Section 8.10 shall not limit recourse against any Person guarantying payment of the Loan, in his capacity as guarantor, whether or not such Person is also a member or officer of the Board or the City. Section 8.10 Conclusive Recital. Pursuant to Section 11-57-210 of the Supplemental Public Securities Act, this Agreement and the Notes are entered into pursuant to certain provisions of the Supplemental Public Securities Act. Such recital in the Notes shall be conclusive evidence of the validity and the regularity of the issuance of this Agreement after delivery for value. Section 8.11 Limitation of Actions. Pursuant to Section 11-57-212 of the Supplemental Public Securities Act, no legal or equitable action brought with respect to any legislative acts or proceedings in connection with the authorization or issuance of the Loan shall be commenced more than 30 days after the authorization of the Loan. Section 8.12 Pledge of Revenues. The creation, perfection, enforcement, and priority of the pledge of revenues to secure the payment of the principal of and interest on the Loan as provided herein and in the Notes shall be governed by Section 11-57-208 of the Supplemental Public Securities Act, this Agreement, the Notes, and the Authorizing Ordinance. The amounts pledged to the payment of the principal of and interest on the Loan shall immediately be subject P224 IX.c 27 to the lien of such pledge without any physical delivery, filing, or further act. The lien of such pledge shall have a first priority. 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 City irrespective of whether such Persons have notice of such liens. Section 8.13 No Waiver; Modifications in Writing. No failure or delay on the part of the Lender in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other right, power or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to the Lender at law or in equity or otherwise. No amendment, modification, supplement, termination or waiver of or to any provision of this Agreement, nor consent to any departure by the City therefrom, shall be effective unless the same shall be in writing and signed by or on behalf of the Lender. Any amendment, modification or supplement of or to any provision of this Agreement, and any consent to any departure by the City from the terms of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for which made or given. No notice to or demand on the City in any case shall entitle the City to any other or further notice or demand in similar or other circumstances or constitute a waiver of the right of the Lender to any other or further action in any circumstances without notice or demand. Section 8.14 Payment on Non-Business Days. Whenever any payment hereunder shall be stated to be due on a day which is not a Business Day, such payment may be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of the amount due. Section 8.15 Document Imaging. The Lender shall be entitled, in its sole discretion, to image all or any selection of the Financing Documents, other instruments, documents, items and records governing, arising from or relating to the Loan, and may destroy or archive the paper originals. The City hereby waives any right to insist that the Lender produce paper originals; agrees that such images shall be accorded the same force and effect as the paper originals; and further agrees that the Lender is entitled to use such images in lieu of destroyed or archived originals for any purpose, including as admissible evidence in any demand, presentment or proceedings. Section 8.16 Redactions. In the event that District determines to voluntarily post information concerning the Loan to the Electronic Municipal Market Access (“EMMA”) website maintained by the Municipal Securities Rulemaking Board (the “MSRB”), as suggested by the MSRB’s Notice 2012-18, upon request Lender shall provide to the City versions of this Agreement and the other Financing Documents as amended that have been redacted in a manner consistent with MSRB Notice 2011-17 (February 23, 2011) or any similar or successor MSRB notice. The City shall only post on EMMA such redacted versions of the Financing Documents as are provided by Lender. Section 8.17 No Advisory or Fiduciary Relationship. In connection with any aspect of the transactions contemplated by this Agreement (including in connection with any amendment, waiver or other modification hereof or of any other Financing Document), the City acknowledges and agrees that: (a) the Lender has not provided advice to or on behalf of a P225 IX.c 28 municipal entity or obligated person with respect to municipal financial products or the issuance of municipal securities, including advice with respect to the structure, timing, terms and other similar matters concerning such financial products or issues undertaken a solicitation of a municipal entity, or otherwise acted in the capacity of a “municipal advisor” to the City, within the meaning of Section 975 of the Dodd–Frank Wall Street Reform and Consumer Protection Act, Section 15B of the Securities Exchange Act of 1934, as amended, and related rules, including, without limitation, Municipal Securities Rulemaking Board (“MSRB”) Rule G-23; (b) the Loan constitutes an arm’s-length commercial transaction between unrelated parties; (c) the Lender has not assumed an agency or fiduciary responsibility in favor of the City with respect to the Loan or the process leading thereto or any other obligation to the City except for the obligations expressly set forth in the Agreement; (d) the Lender has financial and other interests that differ from those of the City; and (e) the City has consulted with its own legal and financial advisors to the extent it has deemed appropriate in connection with the solicitation and receipt of the Loan. Section 8.18 Execution in Counterparts. This Agreement may be executed in counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement. Section 8.19 Severability. Any provision of this Agreement which is prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability or nonauthorization without invalidating the remaining provisions hereof or affecting the validity, enforceability or legality of such provision in any other jurisdiction. Section 8.20 Headings. Article and Section headings used in this Agreement are for convenience of reference only and shall not affect the construction of this Agreement. Section 8.21 Waiver of Rules of Construction. The City hereby waives any and all provisions of law to the effect that an ambiguity in a contract or agreement should be interpreted against the party responsible for its drafting. Section 8.22 Integration. This Agreement is intended to be the final agreement between the parties hereto relating to the subject matter hereof and this Agreement and any agreement, document or instrument attached hereto or referred to herein shall supersede all oral negotiations and prior writings with respect to the subject matter hereof. Section 8.23 Patriot Act Notice. The Lender hereby notifies the City that pursuant to the requirements of the Patriot Act it is required to obtain, verify and record information that identifies the City, which information includes the name and address of the City and other information that will allow the Lender to identify the City in accordance with the Patriot Act. The City hereby agrees that it shall promptly provide such information upon request by the Lender. Section 8.24 No Registration; No Securities Depository; No CUSIP. The City and the Lender hereby agree as follows: (i) the Notes are not being registered under the Securities Act of 1933; (ii) the Notes are not being registered or otherwise qualified for sale under the P226 IX.c 29 “Blue Sky” laws and regulations of any state; (iii) the Lender will hold the Note as a debt instruments; (iv) no CUSIP number will be obtained for the Notes; (v) no official statement or other offering document has been or will be prepared in connection with the private placement of the Loan with the Lender; (iv) the Loan will not close through the Depository Trust Company or any other securities depository and the Notes will not be in book entry form; (v) the Loan are not listed on any stock or other securities exchange; and (vi) the Loan shall not be assigned a rating by any rating agency. P227 IX.c 30 IN WITNESS WHEREOF, the undersigned have executed this Loan Agreement as of the date set forth above. ZMFU II, INC. By Authorized Officer CITY OF ASPEN, COLORADO By Mayor [SEAL] Attest: By City Clerk [Signature Page to Loan Agreement] P228 IX.c A-1 EXHIBIT A FORM OF PROMISSORY NOTE This Note may only be transferred to: (i) an affiliate of the Lender; (ii) a “Bank” as defined in Section 3(a)(2) of the Securities Act of 1933 as amended (the “Securities Act”); (iii) an “Accredited Investor” as defined in Regulation D under the Securities Act; or (iv) a “Qualified Institutional Buyer” as defined in Rule 144A under the Securities Act. UNITED STATES OF AMERICA STATE OF COLORADO CITY OF ASPEN PROMISSORY NOTE IN THE AGGREGATE PRINCIPAL AMOUNT OF $2,150,000 US $2,150,000 2.90% Interest Rate February 28, 2019 FOR VALUE RECEIVED, CITY OF ASPEN, COLORADO, a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado (the “State”) and the home rule charter of the City (the “Charter”) and political subdivision of the State (hereinafter referred to as “Maker”), promises to pay to the order of ZMFU II, INC., its successors and assigns (hereinafter referred to as “Payee”), at such place as Payee or its agent, designee, or assignee may from time to time designate in writing, the principal sum of TWO MILLION ONE HUNDRED FIFTY THOUSAND DOLLARS (US $2,150,000) (this “Note”) pursuant to the terms of the Loan Agreement dated of even date herewith by and between Maker and Payee (the “Loan Agreement”), in lawful money of the United States of America. This Note shall bear interest, be payable, and mature pursuant to the terms and provisions of the Loan Agreement. All capitalized terms used and not otherwise defined herein shall have the respective meanings ascribed in the Loan Agreement. Amounts received by Payee under this Note shall be applied in the manner provided by the Loan Agreement. All amounts due under this Note shall be payable without setoff, counterclaim or any other deduction whatsoever by Maker. Unless payments are made in the required amount in immediately available funds in accordance with the provisions of the Loan Agreement, remittances in payment of all or any part of the amounts due and payable hereunder shall not, regardless of any receipt or credit issued therefor, constitute payment until the required amount is actually received by Payee in funds immediately available at the place where this Note is payable (or any other place as Payee, in Payee’s sole discretion, may have established by delivery of written notice thereof to Maker) and shall be made and accepted subject to the condition that any check or draft may be handled for collection in accordance with the practice of the collecting bank or banks. Acceptance by Payee P229 IX.c A-2 of any payment in an amount less than the amount then due shall be deemed an acceptance on account only and any unpaid amounts shall remain due hereunder, all as more particularly provided in the Loan Agreement. In the event of nonpayment of this Note, Payee shall be entitled to all remedies under the Loan Agreement and at law or in equity, and all remedies shall be cumulative. It is expressly stipulated and agreed to be the intent of Maker and Payee at all times to comply with applicable state law and applicable United States federal law. If the applicable law (state or federal) is ever judicially interpreted so as to render usurious any amount called for under this Note or under the Loan Agreement, or contracted for, charged, taken, reserved or received with respect to the indebtedness evidenced by this Note, then it is Maker’s and Payee’s express intent that all excess amounts theretofore collected by Payee be credited on the principal balance of this Note (or, if this Note has been or would thereby be paid in full, refunded to Maker), and the provisions of this Note shall immediately be deemed reformed and the amounts thereafter collectible hereunder and thereunder reduced, without the necessity of the execution of any new document, so as to comply with the applicable law, but so as to permit the recovery of the fullest amount otherwise called for hereunder and under the Loan Agreement. All sums paid or agreed to be paid to Payee for the use, forbearance and detention of the indebtedness evidenced hereby and by the Loan Agreement shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full so that the rate or amount of interest on account of such indebtedness does not exceed the maximum rate permitted under applicable law from time to time in effect and applicable to the indebtedness evidenced hereby for so long as such indebtedness remains outstanding. Maker and any endorsers, sureties or guarantors hereof jointly and severally waive presentment and demand for payment, protest and notice of protest and nonpayment, all applicable exemption rights, valuation and appraisement, notice of demand, and all other notices in connection with the delivery, acceptance, performance, default or enforcement of the payment of this Note and the bringing of suit and diligence in taking any action to collect any sums owing hereunder or in proceeding against any of the rights and collateral securing payment hereof. Maker and any surety, endorser or guarantor hereof agree (a) that the time for any payments hereunder may be extended from time to time without notice and consent; (b) to the acceptance of further collateral; (c) to the release of any existing collateral for the payment of this Note; (d) to any and all renewals, waivers or modifications that may be granted by Payee with respect to the payment or other provisions of this Note; and/or (e) that additional makers, endorsers, guarantors or sureties may become parties hereto all without notice to them and without in any manner affecting their liability under or with respect to this Note. No extension of time for the payment of this Note shall affect the liability of Maker under this Note or any endorser or guarantor hereof even though Maker or such endorser or guarantor is not a party to such agreement. Failure of Payee to exercise any of the options granted herein to Payee upon the happening of one or more of the events giving rise to such options shall not constitute a waiver of the right to exercise the same or any other option at any subsequent time in respect to the same or any other event. The acceptance by Payee of any payment hereunder that is less than payment P230 IX.c A-3 in full of all amounts due and payable at the time of such payment shall not constitute a waiver of the right to exercise any of the options granted herein or in the Loan Agreement to Payee at that time or at any subsequent time or nullify any prior exercise of any such option without the express written acknowledgment of Payee. Maker (and the undersigned representative of Maker, if any) represents that Maker has full power, authority and legal right to execute, deliver and perform its obligations pursuant to this Note and this Note constitutes the legal, valid and binding obligation of Maker. All notices or other communications required or permitted to be given hereunder shall be given in the manner and be effective as specified in the Loan Agreement, directed to the parties at their respective addresses as provided therein. This Note is governed by and interpreted in accordance with the internal laws of the State of Colorado, except to the extent superseded by federal law. Invalidity of any provisions of this Note will not affect any other provision. Pursuant to Section 11-57-210 of the Colorado Revised Statutes, as amended, this Note is entered into pursuant to and under the authority of certain provisions of the Supplemental Public Securities Act, being Title 11, Article 57, Part 2 of the Colorado Revised Statutes, as amended. Such recital shall be conclusive evidence of the validity and the regularity of the issuance of this Note after delivery for value and shall conclusively impart full compliance with all provisions and limitations of said statutes, and this Note shall be incontestable for any cause whatsoever after delivery for value. MAKER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE DISTRICT COURT, PITKIN COUNTY, COLORADO, AND WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, WITH REGARD TO ANY ACTIONS, CLAIMS, DISPUTES OR PROCEEDINGS RELATING TO THIS NOTE, THE LOAN AGREEMENT, THE PLEDGED REVENUE, ANY OTHER FINANCING DOCUMENT, OR ANY TRANSACTIONS ARISING THEREFROM, OR ENFORCEMENT AND/OR INTERPRETATION OF ANY OF THE FOREGOING. THE PROVISIONS OF THIS NOTE MAY BE AMENDED OR REVISED ONLY BY AN INSTRUMENT IN WRITING SIGNED BY MAKER AND PAYEE. THERE ARE NO ORAL AGREEMENTS BETWEEN MAKER AND PAYEE WITH RESPECT TO THE SUBJECT MATTER HEREOF. IN WITNESS WHEREOF, an authorized representative of City of Aspen, Colorado, as Maker, has executed this Note as of the day and year first above written. P231 IX.c A-4 CITY OF ASPEN, COLORADO By Mayor [SEAL] Attest: By City Clerk [Signature Page to Promissory Note] P232 IX.c A-5 CERTIFICATE OF AUTHENTICATION Date of Registration and Authentication: ____________________ This Promissory Note constitutes the “Note” or “Promissory Note” as defined in the within-mentioned Loan Agreement. ZMFU II, INC. By Authorized Signatory P233 IX.c B-1 EXHIBIT B LOAN PRINCIPAL PAYMENT SCHEDULE P234 IX.c C-1 EXHIBIT C CLOSING MEMORANDUM P235 IX.c TO: Mayor Skadron and City Council FROM: Jessica Garrow, Community Development Director RE: Resolution #13, Series of 2019 DATE: January 28, 2019 SUMMARY: The attached Resolution outlines Council policy direction for amendments to the City’s Land Use Code regarding Wireless Regulations. Recent sta regulations that the City’s current code does not address. This amendments established updated regulations to ensure the city complies with these new rules, while also ensuring a review process that responds to Aspen’s community aesthetics and small town character A work session with City Council was held on Tuesday, January 22, 2019. This amendment is intended to reflect that general direction. The work session memo, which outlines potential regulatory options, is attached as Exhibit B. Potential code language is attached as Exhibit C. If the Policy Resolution is approved, Staff will bring an Ordinance to City Council that amends the Land Use Code. Staff recommends this occur prior to March 11 the timelines that have been established by the federal government, which requires that local jurisdictions adopted updated rules by April 14 take effect before this deadline. STAFF RECOMMENDATION: Staff recommends approval of the proposed Resolution. LAND USE REQUESTS AND REVIEW PROCEDURES This meeting is to review potential changes to the City’s Land Use Code. Pursuant to Land Use Code Section 26.310, City Council is the final All code amendments are subject to a three 1. Public Outreach 2. Policy Resolution by City Council indicating if an amendment should be pursued 3. Public Hearings on Ordinance outlining specific code amendments. DISCUSSION: MEMORANDUM Mayor Skadron and City Council Community Development Director Resolution #13, Series of 2019 - Policy Resolution: Wireless Regulations Code Amendment The attached Resolution outlines Council policy direction for amendments to the City’s Land Use Code Recent state legislation and federal rules making have created new regulations that the City’s current code does not address. This amendments established updated regulations to ensure the city complies with these new rules, while also ensuring a review process that esthetics and small town character. A work session with City Council was held on Tuesday, January 22, 2019. This amendment is intended to reflect that general direction. The work session memo, which outlines potential regulatory options, is s Exhibit B. Potential code language is attached as Exhibit C. If the Policy Resolution is approved, Staff will bring an Ordinance to City Council that amends the Land Staff recommends this occur prior to March 11th to ensure the new regulati the timelines that have been established by the federal government, which requires that local jurisdictions adopted updated rules by April 14th. The March date will ensure updated requirements Staff recommends approval of the proposed Resolution. ROCEDURES: This meeting is to review potential changes to the City’s Land Use Code. Pursuant to Land Use Code City Council is the final review authority for all code amendments. All code amendments are subject to a three-step process. This is the second step in the process: Policy Resolution by City Council indicating if an amendment should be pursued on Ordinance outlining specific code amendments. Page 1 of 2 Code Amendment The attached Resolution outlines Council policy direction for amendments to the City’s Land Use Code making have created new regulations that the City’s current code does not address. This amendments established updated regulations to ensure the city complies with these new rules, while also ensuring a review process that A work session with City Council was held on Tuesday, January 22, 2019. This amendment is intended to reflect that general direction. The work session memo, which outlines potential regulatory options, is If the Policy Resolution is approved, Staff will bring an Ordinance to City Council that amends the Land to ensure the new regulations meet some of the timelines that have been established by the federal government, which requires that local . The March date will ensure updated requirements This meeting is to review potential changes to the City’s Land Use Code. Pursuant to Land Use Code step process. This is the second step in the process: Policy Resolution by City Council indicating if an amendment should be pursued P236 IX.d Page 2 of 2 Both state and federal regulations regarding the powers local government have related to wireless regulations have evolved over the last year. Specific timeframes related to a local government’s review of wireless facilities have been imposed. State laws have evolved to allow wireless facilities to locate in the right-of-way on city infrastructure, such as traffic lights and light poles. Exhibit B outlines these issues and potential options in more details. Attached is draft code language that attempts to address the immediate need to comply with state and federal regulations. This language is not finalized, but gives an idea of the complexity and comprehensive nature these amendments will need to be in order to address the changing regulatory landscape. Additional work to ensure this technology meets Aspen’s community aesthetic standards will be needed and can be completed following the initial code amendment. REFERRALS: A work session with City Council was held on January 22, 2019. City staff have also been in communication with wireless providers. Referral meetings with P&Z and HPC are scheduled in February. STAFF RECOMMENDATION: Staff recommends adoption of the attached Policy Resolution. RECOMMENDED MOTION (ALL MOTIONS ARE PROPOSED IN THE AFFIRMATIVE): “I move to approve Resolution No. 13 Series of 2019, approving a Policy Resolution regarding Wireless Regulations.” ATTACHMENTS: Exhibit A – Staff Findings Exhibit B – January 22, 2019 Work Session Memo Exhibit C – Draft code language P237 IX.d Resolution No. 13, Series 2019 Page 1 of 2 RESOLUTION NO. 13, (SERIES OF 2019) A RESOLUTION OF THE CITY OF ASPEN CITY COUNCIL REQUESTING AMENDMENTS TO THE LAND USE CODE FOR WIRELESS REGULATIONS. WHEREAS, pursuant to Section 26.310.020(A), the Community Development Department received direction from City Council to amend the Wireless Regulations Sections of the Land Use Code to respond to changing state and federal regulations; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach to known wireless providers and City Council, with subsequent public outreach scheduled prior to adoption of and code amendments; and, WHEREAS, City Council has reviewed the proposed code amendment policy direction, and finds it meets the criteria outlined in Section 26.310.040; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on January 28, 2019, the City Council approved Resolution No. 13, Series of 2019, by a ____ - ____ (_-_) vote, requesting code amendments to the Land Use Code; and, WHEREAS, this Resolution does not amend the Land Use Code, but provides direction to staff for amending the Land Use Code; and, WHEREAS, the City Council finds that this Resolution furthers and is necessary for the promotion of public health, safety, and welfare. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN AS FOLLOWS: Section 1: Code Amendment Objective and Direction The objective of the proposed Land Use Code amendment is to bring the Land Use Code into compliance with state and federal regulations related to wireless facilities. Section 2: This resolution shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the resolutions or ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior resolutions or ordinances. Section 3: If any section, subsection, sentence, clause, phrase, or portion of this resolution is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. P238 IX.d Resolution No. 13, Series 2019 Page 2 of 2 FINALLY, adopted this ___ day of _______, 2019. _______________________________ Steven Skadron, Mayor ATTEST: APPROVED AS TO FORM: _______________________________ ______________________________ Linda Manning, City Clerk James R True, City Attorney P239 IX.d 26.310.040. Amendments to the Land Use Code standards of review In reviewing a request to pursue an amendment to the text of this Title, per Section Step Two – Public Hearing before City Council A. Whether there exists a community interest to pursue the amendment. Staff Findings: There is a community interest in updating the code in order to comply w regulations. The proposed update creates a review process that satisfies these requirements this criterion to be met. B. Whether the objectives of the proposed amendment furthers an adopted policy, community goal, or objective of the City including, but not limited to, those stated in the Aspen Area Community Plan. Staff Findings: The proposed amendment creates a review process that balances regulations that protect Aspen’s community character, while complying with state an goals and objectives of the City. Staff finds this criterion to be met. C. Whether the objectives of the proposed amendment are compatible with the community character of the City and in harmony with the this Title. Staff Findings: The objective of the proposed amendment is federal regulations. Staff finds this criterion to be met. Amendments to the Land Use Code standards of review – Initiation In reviewing a request to pursue an amendment to the text of this Title, per Section Public Hearing before City Council, the City Council shall consider: Whether there exists a community interest to pursue the amendment. There is a community interest in updating the code in order to comply with state and federal regulations. The proposed update creates a review process that satisfies these requirements Whether the objectives of the proposed amendment furthers an adopted policy, community ive of the City including, but not limited to, those stated in the Aspen Area The proposed amendment creates a review process that balances regulations that protect Aspen’s community character, while complying with state and federal requirements. This is in line with the goals and objectives of the City. Staff finds this criterion to be met. Whether the objectives of the proposed amendment are compatible with the community character of the City and in harmony with the public interest and the purpose and intent of The objective of the proposed amendment is to bring the Land Use Code into compliance with . Staff finds this criterion to be met. Page 1 of 1 EXHIBIT A STAFF FINDINGS Initiation In reviewing a request to pursue an amendment to the text of this Title, per Section 26.310.020(B)(2), ith state and federal regulations. The proposed update creates a review process that satisfies these requirements. Staff finds Whether the objectives of the proposed amendment furthers an adopted policy, community ive of the City including, but not limited to, those stated in the Aspen Area The proposed amendment creates a review process that balances regulations that protect Aspen’s d federal requirements. This is in line with the Whether the objectives of the proposed amendment are compatible with the community public interest and the purpose and intent of to bring the Land Use Code into compliance with state and P240 IX.d Small Cell Wireless Infrastructure Page 1 of 6 MEMORANDUM TO: Mayor Skadron and Aspen City Council FROM: Andrea Bryan, Assistant City Attorney Paul Schultz, Information Technology Director THRU: Sara Ott, Assistant City Manager Jessica Garrow, Community Development Director RE: Small Cell & Wireless Infrastructure Update DATE: January 22, 2019 PURPOSE & REQUEST OF COUNCIL: The purpose of this work session is to provide City Council an update regarding small cell technology and federal and state rules changes that necessitate updates to the City’s wireless infrastructure regulations, and to get initial direction on next steps. SMALL CELL BACKGROUND: Wireless Communications Service Providers (e.g., AT&T, Sprint, T-Mobile, Verizon) are “densifying” their wireless networks by installing many additional smaller cell sites. The demand for more bandwidth, desire to improve wireless coverage and capacity, and the ability to more efficiently use wireless spectrum are driving wireless network densification. The latest generation of wireless technology, called “5G” (for Fifth Generation) promises faster wireless data rates, reduced latency (i.e., the time it takes for data to get from one place to another) and the ability to support many more wireless connections (e.g., supporting Smart Cities and the “Internet of Things”). 5G deployments began in 2018 and are accelerating around the world, creating an even greater demand for denser wireless networks and more small cells. These “small cells” can be on buildings, light poles, mono-poles and can even be underground using special manhole covers. A small cell site typically includes one or more antennas, radios, electrical connections and fiber optic cable connections. Two out of four of the major wireless communications service providers have already approached City of Aspen regarding small cell deployment. Small cell infrastructure can be deployed tastefully and unobtrusively, or haphazardly and intrusively. Community aesthetics, the integrity of historic districts, the character of commercial and residential areas, and the natural character of parks may be undermined by the installation of this above-grade infrastructure. Communities have approached regulations in a variety of ways, some of which could be used as models for the City of Aspen, and others are a lesson in what waiting to address the changing wireless landscape could result in. P241 IX.d SMALL CELL EXAMPLES: Staff is concerned that waiting to address this emerging technology could result in wireless infrastructure that is inconsistent with Aspen’s small town and historic character. A potential worst-case scenario would be unsightly lowest priced contractor for each traditional block length in Aspen is 270 feet. Additionally, e cable (to carry the wireless data to and from the Small C and/or boring for conduit, fiber optic cabling and electrical cabling significant construction impacts. The images below illustrate how th implemented. With some updates to the City’s review process and design requirements, it is possible to allow 5G small cell technology that is more consistent with Aspen’s result in improved wireless communication services Small Cell Wireless Infrastructure Staff is concerned that waiting to address this emerging technology could result in wireless infrastructure that is inconsistent with Aspen’s small town and historic character. A potential case scenario would be unsightly wireless infrastructure installed every 150 lowest priced contractor for each wireless communications service provider. traditional block length in Aspen is 270 feet. Additionally, each cell site requires fiber optic wireless data to and from the Small Cell) and electricity, as well as trenching and/or boring for conduit, fiber optic cabling and electrical cabling which can The images below illustrate how this technology can look when updated regulations are not Unsightly Small Cells With some updates to the City’s review process and design requirements, it is possible to allow 5G small cell technology that is more consistent with Aspen’s community character. This could wireless communication services delivered via compact wireless Small Cell Wireless Infrastructure Page 2 of 6 Staff is concerned that waiting to address this emerging technology could result in wireless infrastructure that is inconsistent with Aspen’s small town and historic character. A potential wireless infrastructure installed every 150 feet by the For reference, a ach cell site requires fiber optic as well as trenching which can all result in is technology can look when updated regulations are not With some updates to the City’s review process and design requirements, it is possible to allow community character. This could compact wireless P242 IX.d infrastructure that leverages existing built infrastructure, communications service providers Camouflaging or “stealthing” wireless infrastructure may be accomplished using technologies including radio frequency (RF) “transparent” materials that can be matched to a wide variety of textures and colors. The images below illustrate how other communities have achieved this type of camouflaging. Camouflaged Building Pole-mounted wireless infrastructure or underground next to poles, as illustrated in the images below palate or style of pole that providers would be method. For instance, this could become part of the City’s standard light pole des Small Cell Pole Concealment & Example Poles Small Cell Wireless Infrastructure existing built infrastructure, that is shared by all wireless roviders, and that is appropriately hidden and/or camouflaged Camouflaging or “stealthing” wireless infrastructure may be accomplished using technologies including radio frequency (RF) “transparent” materials that can be matched to a wide variety of images below illustrate how other communities have achieved this type Camouflaged Building-Mounted Small Cells mounted wireless infrastructure may be concealed by locating wireless infrastructure inside, , as illustrated in the images below. The City could adopt a standard palate or style of pole that providers would be “pre-approved” to use if utilizing this location method. For instance, this could become part of the City’s standard light pole des Small Cell Pole Concealment & Example Poles Small Cell Wireless Infrastructure Page 3 of 6 ireless appropriately hidden and/or camouflaged. Camouflaging or “stealthing” wireless infrastructure may be accomplished using technologies including radio frequency (RF) “transparent” materials that can be matched to a wide variety of images below illustrate how other communities have achieved this type may be concealed by locating wireless infrastructure inside, The City could adopt a standard to use if utilizing this location method. For instance, this could become part of the City’s standard light pole design. P243 IX.d In some cases, like smaller areas infrastructure can be implemented entirely underground special manhole cover.[1] This may be an option pedestrian malls, where pole mounted or building camouflage applications are more difficult or less appropriate given historic and community context Underground Small Cell Components & Additional creative camouflaged Small Cell designs include “rocks”, flagpoles and towers” in addition to more common “pine trees”, “cactuses”, etc. considered for open space or landscaped areas. Creative Small Cell Wireless Infrastructure In some cases, like smaller areas where wireless users congregate, low power wireless infrastructure can be implemented entirely underground using an antenna module underneath a This may be an option to explore in Aspen for areas such as the pedestrian malls, where pole mounted or building camouflage applications are more difficult or less appropriate given historic and community context. Underground Small Cell Components & Example Location Additional creative camouflaged Small Cell designs include “rocks”, flagpoles and in addition to more common “pine trees”, “cactuses”, etc. These options could be considered for open space or landscaped areas. Creative Camouflaged Small Cells Small Cell Wireless Infrastructure Page 4 of 6 , low power wireless an antenna module underneath a in Aspen for areas such as the pedestrian malls, where pole mounted or building camouflage applications are more difficult or Example Location Additional creative camouflaged Small Cell designs include “rocks”, flagpoles and “water These options could be P244 IX.d Small Cell Wireless Infrastructure Page 5 of 6 LEGAL BACKGROUND: The legal landscape surrounding rapidly-changing wireless infrastructure has also evolved in the last few years. With respect to small cell infrastructure in particular, there have been several recent developments in federal and state law under which Aspen must evaluate its wireless infrastructure code, which was adopted before small cells existed. First, state law, through HB 1193, was amended in 2017 to create a use-by-right for small cell facilities in any zone district (subject to local police powers) and shortens the timeframe within which the City must act on an application for a small cell facility to 90 days. It also gives providers the right to locate or collocate small cell facilities on a City’s lights poles, traffic signals, and similar infrastructure in the City’s rights-of-way, also subject to local police powers. More recently, the Federal Communication Commission (FCC) approved new rules, which took effect January 14, 2019 imposing new “shot clocks” for the processing of small cell applications (within 90 days of the date the application is submitted for new stand-alone facilities or 60 days for facilities collocated on city infrastructure) and limiting the permit fees municipalities can charge providers, among other regulations. The new FCC order also clarifies that municipalities are prohibited from adopting regulations that “materially inhibit” a particular small wireless facility deployment. This changing technology and legal landscape requires the City to quickly address wireless regulations to be consistent with new laws while still protecting Aspen’s design and aesthetic standards. CODE AMENDMENT OPTIONS: The City has engaged a telecommunications attorney to evaluate our current code and make suggested changes. A first draft with his changes is attached as Exhibit A. This draft is in no way intended to be a final draft, but merely a starting point to facilitate a discussion with Council about where our wireless infrastructure code may need some change. Based upon feedback from Council at the work session, staff will work with our attorneys to draft a code that addresses the concerns and needs of Council, the community, and stakeholders. Staff will also be discussing this issue with P&Z and HPC in February. To summarize, the suggested code amendments mainly address the following: - Adding and changing pertinent definitions to be consistent with state and federal law and to reflect new technology like small cells - Amending review procedures for specific wireless facilities requests, consistent with state and federal law, including “Eligible Facilities Requests,” and requests for small cell facilities in the public right-of-way, both of which require an expedited review process pursuant to state and/or federal law. Based on direction from outside counsel, the review process for these applications should be administrative. P245 IX.d Small Cell Wireless Infrastructure Page 6 of 6 - Adding additional design standards for wireless communications facilities, including small cell facilities (see Section F. of proposed code amendments titled “Design Standards”) that emphasize camouflaging and collocation of infrastructure. In addition to adding design standards in our code, the City may also adopt additional supplemental design guidelines, so long as they are published. Notably, pursuant to the FCC order, local governments have until April 14, 2019 to adopt design standards for small cell facilities, which means the City would need to pass an ordinance adopting new code amendments with design standards by March 11, 2019 at the latest. STAFF RECOMMENDATION: Staff recommends that the city work with Wireless Communications Service and Technology Providers to share/co-locate wireless infrastructure, leveraging existing city assets (e.g., buildings, electrical lines, fiber optic cables, conduit, light pole locations and manholes) for wireless infrastructure and use appropriate wireless infrastructure stealthing technologies. Staff also recommends continued work on code amendments to address small cell facilities, with a goal of adopting the code amendments in late February/early March. In conjunction with the code amendments, staff will also begin to review potential “master license agreements” (MLAs), that would be executed between individual carriers and the City for use of the public rights-of- way for small cells and which set forth the basic parameters for the application, permitting, and designs that a carrier may use in the rights-of-way. Staff also desires to meet with vendors to identify preferred designs that may be “pre-approved” for small cells and begin the process of drafting design guidelines. Attached is draft code language that addresses the immediate need to comply with state and federal regulations. Additional work to ensure this technology meets Aspen’s community aesthetic standards will be needed and can be completed following the initial code amendment. To develop guidelines sufficient to protect community aesthetics, Community Development staff will require outside assistance from consultants in the development of FCC-compliant design guidelines to complement the design guidelines in the new wireless infrastructure code. This will require a Spring 2019 Supplemental of at least $50,000 if Council desires this work to be completed this calendar year. QUESTIONS FOR COUNCIL: · Does Council support moving forward with the development and adoption of updated regulations for small cell infrastructure in the City of Aspen? · What are Council’s primary questions and concerns with the potential impacts of small cell deployment in the community? References [1] M:\city\IT\Projects\Primelime-Wireless_Infrastructure_Info\Aspen Wireless Network Infrastructure Possibilities v3.pdf P246 IX.d EXHIBIT C - Draft Wireless Regulations 1 Definitions from 26.104.100 Sec. : DEFINITIONS All words used in this Section, except where specifically defined herein, shall carry their customary meanings when not inconsistent with the context. Definitions contained elsewhere in this Code shall apply to this Section unless modified herein. Accessory Equipment. Any equipment serving or being used in conjunction with a Wireless Communications Facility (WCF), including, but not limited to, utility or transmission equipment, power supplies, generators, batteries, cables, equipment buildings, cabinets and storage sheds, shelters or other structures. Alternative Tower Structure. Man-made trees, clock towers, water towers, bell steeples, light poles, traffic signals, buildings, and similar alternative design mounting structures that are intended to be compatible with the natural setting and surrounding structures, and camouflage or conceals the presence of antennas or towers so as to make them architecturally compatible with the surrounding area pursuant to this Section. This term also includes any antenna or antenna array attached to an Alternative Tower Structure and a Replacement Pole. A stand-alone Monopole in the Public Right-of-Way that accommodates Small Cell Wireless Facilities is considered an Alternative Tower Structure to the extent it meets the camouflage and concealment standards of this Chapter. Antenna. Any device used to transmit and/or receive radio or electromagnetic waves such as, but not limited to panel antennas, reflecting discs, microwave dishes, whip antennas, directional and non-directional antennas consisting of one or more elements, multiple anten na configurations, or other similar devices and configurations. Any exterior apparatus designed for telephone, radio, or television communications through the sending and/or receiving of wireless communications signals. Base Station. A structure or equipment at a fixed location that enables Federal Communications Commission ("FCC") licensed or authorized wireless communications between user equipment and a communications network. The definition of base station does not include or encompass a tower as defined herein or any equipment associated with a tower. Base station includes, without limitation: (1) Equipment associated with wireless communications services such as private broadcast, and public safety services, as well as unlicensed wireless services and fixed wireless services such as microwave backhaul that, at the time the relevant application is filed with the city pursuant to this chapter has been reviewed and approved under the applicable zoning or siting process, or under another state or local regulatory review process, even if the structure was not built for the sole or primary purpose of providing such support; and (2) Radio transceivers, antennas, coaxial or fiber-optic cable, regular and backup power supplied, and comparable equipment, regardless of technological configuration (including distributed antenna systems and small-cell networks) that, at the time the relevant application is filed with the city pursuant to title 26 of the Code has been reviewed and approved under the P247 IX.d EXHIBIT A 2 applicable zoning or siting process, or under another state or local regulatory review process, even if the structure was not built for the sole or primary purpose of providing such support. The definition of base station does not include any structure that, at the time the application is filed with the city under this chapter, does not support or house equipment described herein in sub-paragraphs 1 and 2 of this definition. Camouflage, Concealment, Or Camouflage Design Techniques. A Wireless Communication Facility (“WCF”) is camouflaged or utilizes Camouflage Design Techniques when any measures are used in the design and siting of Wireless Communication Facilities with the intent to minimize or eliminate the visual impact of such facilities to surrounding uses. A WCF site utilizes Camouflage Design Techniques when it (i) is integrated in an outdoor fixture such as a flagpole, or (ii) uses a design which mimics and is consistent with the nearby natural, or architectural features (such as an artificial tree) or is incorporated into (including, without limitation, being attached to the exterior of such facilities and painted to match it) or replaces existing permitted facilities (including without limitation, stop signs or other traffic signs or freestanding light standards) so that the presence of the WCF is not readily apparent. Collocation. (1) mounting or installing a WCF on a pre-existing structure, and/or (2) modifying a structure for the purpose of mounting or installing a WCF on that structure. Provided that, for purposes of Eligible Facilities Requests, “Collocation” means the mounting or installation of transmission equipment on an Eligible Support Structure for the purpose of transmitting and/or receiving radio frequency signals for communications purposes. Director. The Community Development Director, or his or her designee. Eligible Facilities Request. Any request for modification of an Existing Tower that does not Substantially Change the physical dimensions of such Tower involving: (i) collocation of new Transmission Equipment, (ii) removal of Transmission Equipment, or (iii) replacement of Transmission Equipment. Eligible Support Structure. Any Tower or Base Station as defined in this Section, provided that it is existing at the time the relevant application is filed with the city under this Section. Existing Tower or Base Station. A constructed Tower or Base Station that was reviewed, approved, and lawfully constructed in accordance with all requirements of applicable law as of the time of an eligible facilities request, provided that a tower that exists as a legal, non- conforming use and was lawfully constructed is existing for purposes of this definition. Micro Cell Facility. A small wireless facility that is no larger than 24 inches in length, 15 inches in width, 12 inches in height, and that has an exterior antenna, if any, that is no more than eleven inches in length. Monopole. A single, freestanding pole-type structure supporting one or more Antennas. P248 IX.d EXHIBIT A 3 Public right-of way. A dedicated strip or other area of land on or over which the City and/or public may travel or use for passage and within which public utilities and/or streets, alleys, trails, sidewalks and other ways may be installed. Replacement Pole. A newly constructed and permitted traffic signal, utility pole, street light, flagpole, electric distribution, or street light poles or other similar structure of proportions and of equal height or such other height that would not constitute a Substantial Change to a pre- existing pole or structure in order to support a WCF or Small Cell Facility or to accommodate collocation and remove the pre-existing pole or structure. Setback. An area commencing and extending horizontally and vertically from a lot line, property line or other boundary which shall be unoccupied and unobstructed from the ground upward, excepting trees, vegetation and/or fences or other structures or projections as allowed. (See Supplementary Regulations — Section 26.575.040, Yards). Small Cell Facility. A WCF where each Antenna is located inside an enclosure of no more than three cubic feet in volume or, in the case of an Antenna that has exposed elements, the antenna and all of its exposed elements could fit within an imaginary enclosure of no more than three cubic feet; and primary equipment enclosures are no larger than seventeen cubic feet in volume. The following associated equipment may be located outside of the primary equipment enclosure and, if so located, is not included in the calculation of equipment volume: electric meter, concealment, telecommunications demarcation box, ground-based enclosure, back-up power systems, grounding equipment, power transfer switch and cut-off switch. Small cells may be attached to Alternate Tower Structures, Replacement Pole, and Base Stations. Substantial Change to a WCF. A modification substantially changes the physical dimensions of an Eligible Support Structure if after the modification, the structure meets any of the following criteria: (i) For Towers, other than Alternative Tower Structures or Towers in the Right-of-Way, it increases the height of the Tower by more than ten percent (10%) or by the height of one (1) additional antenna array, with separation from the nearest existing antenna not to exceed twenty feet, whichever is greater; for other Eligible Support Structures, it increases the height of the structure by more than ten percent (10%) or more than ten (10) feet, whichever is greater; (ii) For Towers, other than Towers in the Right-of-Way, it involves adding an appurtenance to the body of the Tower that would protrude from the Tower more than twenty (20) feet, or more than the width of the Tower Structure at the level of the appurtenance, whichever is greater; for Eligible Support Structures, it involves adding an appurtenance to the body of the structure that would protrude from the side of the structure by more than six (6) feet; (iii) For any Eligible Support Structure, it involves installation of more than the standard number of new equipment cabinets for the technology involved, but not to exceed four cabinets; or P249 IX.d EXHIBIT A 4 (iv) For Towers in the Right-of-Way and Base Stations, it involves installation of any new equipment cabinets on the ground if there are no pre-existing ground cabinets associated with the structure, or else involves installation of ground cabinets that are more than ten percent (10%) larger in height or overall volume than any other existing, individual ground cabinets associated with the structure; (v) For any Eligible Support Structure, it entails any excavation or deployment outside the current Site; (vi) For any Eligible Support Structure, it would defeat the concealment elements of the Eligible Support Structure. For purposes of this definition, any change that undermines concealment elements of an eligible support structure shall be interpreted as defeating the concealment elements of that structure; or (vii) For any Eligible Support Structure, it does not comply with conditions associated with the siting approval of the construction or modification of the Eligible Support Structure equipment, unless the non-compliance is due to an increase in height, increase in width, addition of cabinets, or new excavation that would not exceed the thresholds identified in paragraphs (i), (ii), (iii) and (iv) of this Definition. For purposes of determining whether a Substantial Change exists, changes in height are measured from the original support structure in cases where deployments are or will be separated horizontally, such as on buildings’ rooftops; in other circumstances, changes in height are measured from the dimensions of the tower or base station, inclusive of originally approved appurtenances and any modifications that were approved prior to February 22, 2012. Tower. Any structure that is designed and constructed for the sole or primary purpose of supporting one or more any FCC-licensed or authorized Antennas and their associated facilities, including structures that are constructed for wireless communications services including, but not limited to, private, broadcast, and public safety services, as well as unlicensed wireless services and fixed wireless services such as microwave backhaul, and the associated site. The term includes self-supporting lattice towers, guyed towers, monopole towers, radio and television transmission towers, microwave towers, common carrier towers, cellular telephone towers, Alternative Tower Structures and the like. Transmission Equipment. Equipment that facilitates transmission for any FCC licensed or authorized wireless communication service, including, but not limited to, radio transceivers, antennas, coaxial or fiber-optic cable, and regular and backup power supply. The term includes equipment associated with wireless communications services including, but not limited to, private, broadcast, and public safety services, as well as unlicensed wireless services and fixed wireless services such as microwave backhaul. Wireless Communications Facility Or WCF. A facility used to provide personal wireless services as defined at 47 U.S.C. Section 332 (c)(7)(C); or wireless information services provided to the public or to such classes of users as to be effectively available directly to the public via licensed or unlicensed frequencies; or Smart City, Internet of Things, wireless utility monitoring and control services. A WCF does not include a facility entirely enclosed within a P250 IX.d EXHIBIT A 5 permitted building where the installation does not require a modification of the exterior of the building; nor does it include a device attached to a building, used for serving that building only and that is otherwise permitted under other provisions of the Code. A WCF includes an Antenna or Antennas, including without limitation, direction, omni-directional and parabolic antennas, support equipment, Alternative Tower Structures, and Towers. It does not include the support structure to which the WCF or its components are attached if the use of such structures for WCFs is not the primary use. The term does not include mobile transmitting devices used by wireless service subscribers, such as vehicle or hand-held radios/telephones and their associated transmitting Antennas, nor does it include other facilities specifically excluded from the coverage of this Section. 26.575.130 Wireless communications facilities and equipment Intent and purpose: The purpose of this chapter is to regulate the placement, construction, and modification of towers and wireless communications facilities to protect the health, safety and welfare of the public, while at the same time not unreasonably interfering with the development of a competitive wireless communications marketplace in the city. A. In order to accommodate the communications needs of residents and businesses while protecting the public health, safety, and general welfare of the community, the City Council finds that these regulations are necessary to: 1. Provide for the managed development and installation, maintenance, modification, and removal of wireless communications infrastructure in the City with the fewest number of WCFs to complete a network without unreasonably discriminating against wireless communications providers of functionally equivalent services including all of those who install, maintain, operate, and remove WCFs; 2. Promote and protect the public health, safety, and welfare by reducing the visibility of WCFs to the fullest extent possible through techniques including, but not limited to, camouflage design techniques, collocation and undergrounding of WCFs and the equipment associated therewith; 3. Encourage the deployment of smaller, less intrusive WCFs to supplement existing larger WCFs; 4. Encourage strongly the collocation of WCFs at new and existing locations; and 5. Effectively manage WCFs in the public Right-of-Way. 6. Preserve the character and aesthetics of areas which are in close proximity to WCFs and equipment by minimizing the visual, aesthetic and safety impacts of such facilities through careful design, siting and screening; placement, construction or modification of such facilities; P251 IX.d EXHIBIT A 6 7. Protect the health, safety and welfare of persons living or working in the area surrounding such WCFs and equipment from possible adverse environmental effects (within the confines of the Federal Telecommunications Act of 1996) related to the placement, construction or modification of such facilities; 8. Provide development which is compatible in appearance with allowed uses of the underlying zone; 9. Facilitate the City's permitting process to encourage fair and meaningful competition and, to the greatest extent possible, extend to all people in all areas of the City high quality wireless telecommunication services at reasonable costs to promote the public welfare; and 10. Encourage the joint use and clustering of antenna sites and structures, when practical, to help reduce the number of such facilities which may be required in the future to service the needs of customers and thus avert unnecessary proliferation of facilities on private and public property. B. Applicability. All applications for the installation or development of WCFs and/or equipment must receive building permits, prior to installation. Prior to the issuance of appropriate building permits, WCFs and/or equipment shall be reviewed for approval by the Community Development Director in conformance with the provisions and criteria of this Section. WCFs and equipment subject to the provisions and criteria of this Section include without limitation, WCFs within the Public Rights of Way, cellular telephone, paging, enhanced specialized mobile radio (ESMR), personal communication services (PCS), commercial mobile radio service (CMRS) and other wireless commercial telecommunication devices and all associated structures and equipment including transmitters, antennas, monopoles, towers, masts and microwave dishes, cabinets and equipment rooms. These provisions and criteria do not apply to noncommercial satellite dish antennae, radio and television transmitters and antennae incidental to residential use. All references made throughout this Section, to any of the devices to which this Section is applicable, shall be construed to include all other devices to which this Section 26.575.130 is applicable. C. Operational Standards 1. Federal Requirements. All WCFs shall meet the current standards and regulations of the FAA, the FCC and any other agency of the federal government with the authority to regulate WCFs, including, without limitation, the requirement that WCFs shall not present a hazard to air navigation under Part 77, Federal Aviation, Federal Aviation Regulations. If such standards and regulations are changed, then the owners of the WCF shall bring such facility into compliance with such revised standards and regulations within the time period mandated by the controlling federal agency. Failure to meet such revised standards and regulations shall constitute grounds for the removal of the WCF at the WCF owner’s expense. 2. Radio Frequency Standards. All WCFs shall comply with federal standards for radio frequency emissions. If concerns regarding compliance with radio frequency emissions standards for a WCF have been made to the City, the City may request that the owner or operator of the WCF provide information demonstrating compliance. If such information P252 IX.d EXHIBIT A 7 suggests, in the reasonable discretion of the City, that the WCF may not be in compliance, the City may request and the owner or operator of the WCF shall submit a project implementation report which provides cumulative field measurements of radio frequency emissions of all antennas installed at the subject site, and which compares the results with established federal standards. If, upon review, the City finds that the facility does not meet federal standards, the City may require corrective action within a reasonable period of time, and if not corrected, may require removal of the WCF pursuant to paragraph (A) above. Any reasonable costs incurred by the City, including reasonable consulting costs to verify compliance with these requirements, shall be paid by the owner of the WCF. 3. Signal Interference. All WCFs shall be designed and sited, consistent with applicable federal regulations, so as not to cause interference with the normal operation of radio, television, telephone and other communication services utilized by adjacent residential and non-residential properties; nor shall any such facilities interfere with any public safety communications. The Applicant shall provide a written statement from a qualified radio frequency engineer, certifying that a technical evaluation of existing and proposed facilities indicates no potential interference problems and shall allow the City to monitor interference levels with public safety communications during this process. Additionally, the Applicant shall notify the City at least ten calendar days prior to the introduction of new service or changes in existing service, and shall allow the City to monitor interference levels with public safety communications during the testing process. 4. License to Use. The Applicant shall execute a license agreement with the City, granting a non-exclusive license to use the Public Right-of-Way. Attachment of WCFs on an existing traffic signal, street light pole, or similar structure shall require written evidence of a license, or other legal right or approval, to use such structure by its owner. 5. Operation and Maintenance. To ensure the structural integrity of WCFs, the owner of a WCF shall ensure that it is maintained in compliance with the standards contained in applicable local building and safety codes. If upon inspection, the City concludes that a WCF fails to comply with such codes and constitutes a danger to persons or property, then, upon written notice being provided to the owner of the WCF, the owner shall have 30 days from the date of notice to bring such WCF into compliance. Upon good cause shown by the owner, the City’s Chief Building Official may extend such compliance period not to exceed 90 days from the date of said notice. If the owner fails to bring such WCF into compliance within said time period, the City may remove such WCF at the owner’s expense. 6. Abandonment and Removal. If a WCF has not been in use for a period of three months, the owner of the WCF shall notify the City of the non-use and shall indicate whether re-use is expected within the ensuing three months. Any WCF that is not operated for a continuous period of six months shall be considered abandoned. The City, in its sole discretion, may require an abandoned WCF to be removed. The owner of such WCF shall remove the same within 30 days of receipt of written notice from the City. If such WCF is not removed within said 30 days, the City may remove it at the owner’s expense and any approved permits for the WCF shall be deemed to have expired. Additionally, the City, in its sole discretion, shall not approve any new WCF application until the Applicant who is also the owner or operator of P253 IX.d EXHIBIT A 8 any such abandoned WCF has removed such WCF or payment for such removal has been made to the City. 7. Hazardous Materials. No hazardous materials shall be permitted in association with WCFs, except those necessary for the operations of the WCF and only in accordance with all applicable laws governing such materials. 8. Collocation. No WCF owner or operator shall unreasonably exclude a telecommunications competitor from using the same facility or location. Upon request by the Community Development Department, the owner or operator shall provide evidence explaining why Collocation is not possible at a particular facility or site. D. Review Procedures and Requirements. No new WCF shall be constructed and no Collocation or modification to any WCF may occur except after a written request from an applicant, reviewed and approved by the City in accordance with this Chapter. All WCFs except Eligible Facilities Requests which are reviewed under subsection [XX] of this Section, shall be reviewed pursuant to the following procedures. 1. Review Procedures for certain WCFs, including Base Stations, Alternative Tower Structures, and Alternative Tower Structures within Public Rights-of-Way, but excepting Eligible Facilities Requests, and Small Cell Facilities in the Right-of-Way. In all zoning districts, applications for these WCF facilities shall be reviewed by the Community Development Department for conformance to this Section and using the Design Review procedures set forth in Section _______. For WCFs in the rights-of-way that are found to have a significant visual impact (e.g.. proximity to historical sites, obstructing views), be incompatible with the structure or surrounding area, or not meet the intent of these provisions, the Community Development Department may refer the application to Planning Commission for a Use by Special Review determination. 2. Review Procedures for Towers. In all zoning districts, Towers, other than those defined or excepted in (1) above, must apply for Use by Special Review approval. These WCFs shall be reviewed for conformance using the procedures set forth in Section ________. All applications for Towers shall demonstrate that other alternative design options, such as using Base Stations or Alternative Tower Structures, are not viable options as determined by the City. 3. Review Procedures for Eligible Facilities Requests. a) In all zoning districts, Eligible Facilities Requests shall be considered a permitted use, subject to administrative review. The City shall prepare, and from time to time revise, and make publicly available, an application form which shall require submittal of information necessary for the City to consider whether an application is an Eligible Facilities Request. Such required information may include, without limitation, whether the project: i Constitutes a Substantial Change; P254 IX.d EXHIBIT A 9 ii Violates a generally applicable law, regulation, or other rule codifying objective standards reasonably related to public health and safety. The application shall not require the applicant to demonstrate a need or business case for the proposed modification or Collocation. b) Upon receipt of an application for an Eligible Facilities Request pursuant to this Section, the Community Development Department shall review such application to determine whether the application so qualifies. c) Timeframe for Review. Subject to the tolling provisions of subparagraph d. below, within 60 calendar days of the date on which an applicant submits an application seeking approval under this Section, the City shall approve the application unless it determines that the application is not covered by this Subsection, or otherwise in non-conformance with applicable codes. d) Tolling of the Timeframe for Review. The 60-day review period begins to run when the application is filed, and may be tolled only by mutual agreement of the City and the applicant, or in cases where the Community Development Department determines that the application is incomplete: i To toll the timeframe for incompleteness, the City must provide written notice to the applicant within 30 business days of receipt of the application, specifically delineating all missing documents or information required in the application; ii The timeframe for review begins running again the following business day after the applicant makes a supplemental written submission in response to the City’s notice of incompleteness; and iii Following a supplemental submission, the City will notify the applicant within ten (10) business days that if the supplemental submission did not provide the information identified in the original notice delineating missing information. The timeframe is tolled in the case of second or subsequent notices pursuant to the procedures identified in paragraph (d)(1). In the case of a second or subsequent notice of incompleteness, the City may not specify missing information or documents that were not delineated in the original notice of incompleteness. e) Failure to Act. In the event the City fails to act on a request seeking approval for an Eligible Facilities Request under this Section within the timeframe for review (accounting for any tolling), the request shall be deemed granted. The request becomes effective when the applicant notifies the City in writing after the review period has expired (accounting for any tolling) that the application has been deemed granted. P255 IX.d EXHIBIT A 10 f) Interaction with Telecommunications Act Section 332(c)(7). If the City determines that the applicant’s request is not an Eligible Facilities Request as delineated in this Chapter, the presumptively reasonable timeframe under Section 332(c)(7) of the Telecommunication Act, as prescribed by the FCC’s Shot Clock order, will begin to run from the issuance of the City’s decision that the application is not a covered request. To the extent such information is necessary, the City may request additional information from the applicant to evaluate the application under Section 332(c)(7) reviews. 4. Review Procedures for Small Cell Facilities in the Public Right-of-Way. a) Small Cell Facilities in the Public Right-of-Way may be approved pursuant to a Master License Agreement or similar form of authorization or individually in accordance with the provisions of this subsection. b) Within thirty (30) days of receipt of the application, the Director shall provide written comments to the applicant determining completeness of the application and setting forth any modifications required to complete the application bring the proposal into full compliance with the requirements of this Chapter. c) The Director shall review the completed application for conformance with the provisions in this Chapter may approve or deny an application within 90 days of the date the application is submitted for new stand-alone facilities or 60 days for facilities collocated on city infrastructure. 1. To toll the timeframe for incompleteness, the City must provide written notice to the Applicant within thirty (30) days of receipt of the application, specifically delineating all missing documents or information required in the application; 2. The timeframe for review continues running again when the Applicant makes a supplemental written submission in response to the City’s notice of incompleteness; and 3. Following a supplemental submission, the City will notify the Applicant within ten (10) days that the supplemental submission did not provide the information identified in the original notice delineating missing information. The timeframe is tolled in the case of second or subsequent notices pursuant to the procedures identified in paragraph (b.)(1.). In the case of a second or subsequent notice of incompleteness, the City may not specify missing information or documents that were not delineated in the original notice of incompleteness. d) Consolidated applications. The City shall allow a wireless provider to file P256 IX.d EXHIBIT A 11 a consolidated application for up to twenty small cell facilities and receive a single permit for the small cell network. The City’s denial of any individual small cell facility is not a basis to deny the application as a whole or any other small cell facility incorporated within the consolidated application. 5. General. Except for applications under subsections 3 and 4 above, pursuant to Section 26.304.020, the applicant shall conduct a pre-application conference with staff of the Community Development Department. The planner shall then prepare a pre-application summary describing the submission requirements and any other pertinent land use material, the fees associated with the reviews and the review process in general. 6. Administrative review. Except for applications under subsections 3 and 4 above, after the pre- application summary is received by the applicant, said applicant shall prepare an application for review and approval by staff and the Community Development Director, respectively. In order to proceed with additional land use reviews or obtain a development order, the Community Development Director shall find the submitted development application consistent with the provisions, requirements and standards of this Chapter. 7. Decision. Any decision to approve, approve with conditions, or deny an application for a WCF, shall be in writing and supported by substantial evidence in a written record. The applicant shall receive a copy of the decision. 8. Appeal of Director's determination. The Community Development Director may apply reasonable conditions to the approval as deemed necessary to ensure conformance with applicable review criteria in Subsection 26.575.130.F. If the Community Development Director determines that the proposed WCFs and equipment do not comply with the review criteria and denies the application or the applicant does not agree to the conditions of approval determined by the Community Development Director, the applicant may apply for special review (Chapter 26.430) by the Planning and Zoning Commission or, if applicable, by the Historic Preservation Commission, and such application must be made within fifteen (15) calendar days of the day on which the Community Development Director's decision is rendered. All appeals shall require public hearings and shall be noticed by the applicant in accordance with Paragraphs 26.304.060.E.3.a, b and c of this Code. 9. Historic Preservation Commission review. Proposals for the location of WCFs or equipment on any historic site or structure or within any historic district, shall be reviewed by the Historic Preservation Commission (HPC). Review of applications for WCFs and/or equipment by the HPC shall replace the need for review by the Community Development Director. Likewise, if the Historic Preservation Commission determines that the proposed WCFs and equipment do not comply with the review criteria and denies the application or the applicant does not agree to the conditions of approval determined by the Historic Preservation Commission, the applicant may appeal the decision to the City Council, and such appeal must be filed within fifteen (15) calendar days of the day on which the Historic Preservation Commission's decision is rendered. All appeals shall require public hearings and shall be noticed by the applicant in accordance with Paragraphs 26.304.060.E.3.a, b and c of this Code. P257 IX.d EXHIBIT A 12 10. Building permit. A building permit application cannot be filed unless and until final land use approval has been granted and a development order has been issued. When applying for building permits, the applicant shall submit a signed letter acknowledging receipt of the decision granting land use approval and his/her agreement with all conditions of approval, as well as a copy of the signed document granting the land use approval for the subject building permit application. 11. Right of Way permit. A Right of Way permit application cannot be filed unless and until final land use approval has been granted and a development order has been issued. When applying for Right of Way permits, the applicant shall submit a signed letter acknowledging receipt of the decision granting land use approval and his/her agreement with all conditions of approval, as well as a copy of the signed document granting the land use approval for the subject building permit application. 12. Special review. An application requesting a variance from the review standards for height of WCFs and/or equipment or an appeal of a determination made by the Community Development Director, shall be processed as a special review in accordance with the common development review procedures set forth in Chapter 26.304. The special review shall be considered at a public hearing for which notice has been posted and mailed, pursuant to Paragraphs 26.304.060.E.3.b and c. Review is by the Planning and Zoning Commission. If the property is listed on the Aspen inventory of historic landmark sites and structures or within a Historic Overlay District and the application has been authorized for consolidation pursuant to Chapter 26.304, the Historic Preservation Commission shall consider the special review. Such special review may be approved, approved with conditions or denied based on conformance with the following criteria: a) Conformance with the applicable review standards of Subsection 26.575.130.F. b) If the facility or equipment is located on property listed on the Aspen inventory of historic landmark sites and structures or within any historic district, then the applicable standards of Chapter 26.415 (Development involving the Aspen inventory of historic landmark sites and structures or development in an "H," Historic Overlay District) shall apply. 13. Application. An application for approval of new WCFs and modified or additional WCFs that are not Eligible Facilities Requests or Small Cell Facilities Requests shall comply with the submittal requirements applicable to conditional use reviews pursuant to Chapter 26.304, Common development review procedures and Chapter 26.425, Conditional uses of the Aspen Municipal Code. Also, WCFs and equipment applications shall contain at least the following additional information: a) Site plan or plans drawn to a scale of one (1) inch equals ten (10) feet or one (1) inch equals twenty (20) feet, including "before and after" photographs (simulations) specifying the location of antennas, support structures, transmission buildings and/or other accessory uses, access, parking, fences, P258 IX.d EXHIBIT A 13 signs, lighting, landscaped areas and all adjacent land uses within one hundred fifty (150) feet. Such plans and drawings should demonstrate compliance with the review standards of this Section. b) Site improvement survey including topography and vegetation showing the current status, including all easements and vacated rights of way, of the parcel certified (wet ink signed and stamped and dated within the past twelve (12) months) by a registered land surveyor, licensed in the State. c) Landscape plan drawn to a scale of one (1) inch equals ten (10) feet or one (1) inch equals twenty (20) feet, including "before and after" photographs (simulations) indicating size, spacing and type of plantings and indicating steps to be taken to provide screening as required by the review standards of this Section. The landscape plans shall also indicate the size, location and species of all existing vegetation and whether each of those indicated are proposed for removal (indicate proposed mitigation), relocation (indicate from and to) or preservation. The planner can determine if a landscape plan is necessary; for instance, when an antenna is to be attached to a building, this requirement may be waived. d) Elevation drawings or "before and after" photographs/drawings simulating and specifying the location and height of antennas, support structures, transmission buildings and/or other accessory uses, fences and signs. e) Lighting plan and photometric study indicating the size, height, location and wattage of all proposed outdoor lighting sources. This study must also include a graphic indicating backlight, up-light, and glare of light from each source/fixture. This requirement can be waived by the Community Development Director if little or no outdoor lighting is proposed. f) Structural integrity report from a professional engineer licensed in the State documenting the following: i Tower height and design, including technical, engineering, economic and other pertinent factors governing selection of the proposed design; ii Total anticipated capacity of the structure, including number and types of antennas which can be accommodated; iii Failure characteristics of the tower and demonstration that site and setbacks are of adequate size to contain debris in the event of failure; and iv Specific design and reconstruction plans to allow shared use. This submission is required only in the event that the applicant intends to share use of the facility by subsequent reinforcement and reconstruction of the facility. P259 IX.d EXHIBIT A 14 v Specific design considerations for impact or breakaway characteristics as required in specific roadway right of ways g) Evidence that an effort was made to locate on an existing wireless telecommunication services facility site including coverage/ interference analysis and capacity analysis and a brief statement as to other reasons for success or no success. h) Written documentation in the form of a signed affidavit demonstrating a good faith effort in locating facilities in accordance with site selection order of preference outline below. i) Inventory of Existing Sites. Each applicant for a WCF shall provide to the Community Development Department a narrative description and a map of the applicant’s existing or currently proposed WCFs within the City, and outside of the City within one mile of its boundaries. In addition, the applicant shall inform the City generally of the areas in which it believes WCFs may need to be located within the next three (3) years. The inventory list should identify the site name, address, and a general description of the Facility (i.e., rooftop Antennas and ground-mounted equipment). This provision is not intended to be a requirement that the applicant submit its business plan, proprietary information, or make commitments regarding locations of WCFs within the City. This information will be used to assist in the City’s comprehensive planning process, and promote Collocation by identifying areas in which WCFs might be appropriately constructed for multiple users. The Community Development Department may share such information with other applicants applying for administrative approvals or conditional permits under this section or other organizations seeking to locate WCFs within the jurisdiction of the City, provided however, that the Community Development Department, is not, by sharing such information, in any way representing or warranting that such sites are available or suitable. j) Abandonment and Removal. Affidavits shall be required from the owner of the property and from the applicant acknowledging that each is responsible for the removal of a WCF that is abandoned or is unused for a period of six (6) months. 14. Compliance with Applicable Law. Notwithstanding the approval of an application for new WCFs or Eligible Facilities Request as described herein, all work done pursuant to WCF applications must be completed in accordance with all applicable building, structural, engineering, electrical, and safety requirements as set forth in the Aspen Municipal Code and any other applicable laws or regulations. In addition, all WCF applications shall comply with the following: a) Comply with any permit or license issued by a local, state, or federal agency with jurisdiction of the WCF; P260 IX.d EXHIBIT A 15 b) Comply with easements, covenants, conditions and/or restrictions on or applicable to the underlying real property; c) Be maintained in good working condition and to the standards established at the time of application approval; and d) Remain free from trash, debris, litter, graffiti, and other forms of vandalism. Any damage shall be repaired as soon as practicable, and in no instance more than ten calendar days from the time of notification by the City or after discovery by the owner or operator of the Site. Notwithstanding the foregoing, any graffiti on WCFs located in the Public Rights-of-Way or on Public Property may be removed by the City at its discretion, and the owner and/or operator of the WCF shall pay all costs of such removal within 30 days after receipt of an invoice from the City. E. General provisions and requirements. The following provisions apply to all WCFs and equipment applications, sites and uses. 1. Prohibitions. Lattice towers (a structure, with three or four steel support legs, used to support a variety of antennae; these towers generally range in height from sixty (60) to two hundred (200) feet and are constructed in areas where great height is needed, microwave antennas are required or where the weather demands a more structurally sound design) are prohibited within the City. Towers (support structures) shall be prohibited in the following Zone Districts: Medium-Density Residential (R-6); Moderate-Density Residential (R-15, R-15A, R- 15B); Low-Density Residential (R-30); Residential Multi-Family (RMF, RMFA); and Affordable Housing/Planned Unit Development (AH-1/PUD); Conservation (C); Agricultural (Ag); Park (P); Open Space (OS); Rural Residential (RR). All WCFs and equipment not prohibited by the preceding statements shall be allowed in all other zone districts subject to review and approval by the Community Development Director pursuant to the provisions, requirements and standards of this Chapter, including consistency with the dimensional requirements of the underlying zone district. 2. Site selection. Except for Small Cell Facilities in the Public Rights-of-Way, Wireless communication facilities shall be located in the following order of preference: First: Collocated on existing structures such as buildings, communication towers, flagpoles, church steeples, cupolas, ball field lights, nonornamental/antique street lights such as highway lighting, etc. Second: In locations where the existing topography, vegetation, buildings or other structures provide the greatest amount of screening. Least: On vacant ground or highly visible sites without significant visual mitigation and where screening/buffering is difficult at best. P261 IX.d EXHIBIT A 16 3. Historic sites and structures. In addition to the applicable standards of Chapter 26.415, all of the foregoing and following provisions and standards of this Chapter shall apply when wireless telecommunication services, facilities and equipment are proposed on any historic site or structure or within any historic district. 4. Public buildings, structures and rights-of-way. Leasing of public buildings, publicly owned structures and/or public rights-of-way for the purposes of locating WCFs and/or equipment is encouraged. In cases where a facility is proposed on City property that is not in the Public Right-of-Way, specific locations and compensation to the City shall be negotiated in lease agreements between the City and the provider on a case-by-case basis and would be subject to all of the review criteria contained in this Section. Such agreements would not provide exclusive arrangements that could tie up access to the negotiated sites or limit competition and must allow for the possibility of Collocation with other providers as described in Subsection F.2, below. F. Design Standards. The requirements set forth in this Section shall apply to the location and design of all WCFs governed by this Chapter as specified below; provided, however, that the City may waive these requirements if it determines that the goals of this Chapter are better served thereby. To that end, WCFs shall be designed and located to minimize the impact on the surrounding neighborhood and to maintain the character and appearance of the City, consistent with other provisions of this Code. Camouflage/Concealment. All WCFs and any Transmission Equipment shall, to the extent possible, use Camouflage Design Techniques including, but not limited to the use of industry best practices materials, colors, textures, screening, undergrounding, landscaping, or other design options that will blend the WCF into the surrounding natural setting and built environment. a) Camouflage design may be of heightened importance where findings of particular sensitivity are made (e.g. proximity to historic, natural, or aesthetically significant structures or areas, views, and/or community features or facilities). In such instances where WCFs are located in areas of high visibility, they shall (where possible) be designed (e.g., placed underground, inside of existing structure, depressed, or located behind earth berms) to minimize their profile. b) The camouflage design may include the use of Alternative Tower Structures should the Community Development Department determine that such design meets the intent of this Code and the community is better served thereby. c) All WCFs, such as Antennas, vaults, equipment rooms, equipment enclosures, and tower structures shall be constructed out of non-reflective materials (visible exterior surfaces only). And shall utilize a color palette that mimics or complements adjacent structures. 2. Collation. Collocation of facilities with other providers is encouraged. Collocation can be achieved as either building-mounted, roof-mounted or ground-mounted facilities. In designing or retrofitting Towers, applicants are strongly encouraged to consider the possibility of present or future co-location of other WCFs by structurally overbuilding in P262 IX.d EXHIBIT A 17 order to handle the loading capacity of additional WCFs, for the use of the applicant and for other wireless service providers to use as well. Applicants shall use good faith efforts to negotiate lease rights to other users who desire to use an approved WCF site. Collocation on an existing support structure shall be permitted as an accessory use. Projections of any type on the monopole, which are not antennas, are strongly discouraged. a) Multiple use facilities are encouraged as well. WCFs and equipment may be integrated into existing, replacement of existing, or newly developed facilities that are functional for other purposes, such as ball field lights, flagpoles, church steeples, highway lighting, etc. All multiple use facilities shall be designed to make the appearance of the antennae relatively inconspicuous. b) The collocation requirement may be waived by the Community Development Director upon a showing that either federal or state regulations prohibit the use, the proposed use will interfere with the current use, the proposed use will interfere with surrounding property or uses, the proposed user will not agree to reasonable terms or such co-location is not in the best interest of the public health, safety or welfare. Time needed to review a colocation request shall not greatly exceed that for a single applicant. 3. Setbacks. At a minimum, except for WCFs in the Public Right-of-Way all WCFs shall comply with the minimum setback requirements of the underlying zone district; if the following requirements are more restrictive than those of the underlying zone district, the more restrictive standard shall apply. a) All facilities shall be located at least fifty (50) feet from any property lines, except when roof-mounted (above the eave line of a building). Flat-roof mounted facilities visible from ground level within one-hundred (100) feet of said property shall be concealed to the extent possible within a compatible architectural element, such as a chimney or ventilation pipe or behind architectural skirting of the type generally used to conceal HVAC equipment. Pitched-roof-mounted facilities shall always be concealed within a compatible architectural element, such as chimneys or ventilation pipes. b) Monopole towers shall be set back from any residentially zoned properties a distance of at least three (3) times the monopole's height (i.e., a sixty (60) foot setback would be required for a twenty (20) foot monopole) and the setback from any public road, as measured from the right-of-way line, shall be at least equal to the height of the monopole. c) No wireless communication facility may be established within one-hundred (100) feet of any existing, legally established wireless communication facility except when located on the same building or structure. d) No portion of any antenna array shall extend beyond the property lines or into any front yard area. Guy wires shall not be anchored within any front yard area, but may be attached to the building. P263 IX.d EXHIBIT A 18 e) Any alternative tower utilizing existing facilities shall meet all Right-of-Way design guidelines. Considerations should be given to the general safety of the traveling public. 4. Height. The following restrictions shall apply: a) WCFs not attached to a building shall not exceed twenty-five (25) feet in height or the maximum permissible height of the given Zone District, whichever is more restrictive. b) Whenever a WCF antenna is attached to a building roof, the antenna and support system for panel antennas shall not exceed five (5) feet above the highest portion of that roof, including parapet walls and the antenna and support system for whip antennas shall not exceed ten (10) feet in height as measured from the point of attachment. c) The Community Development Director may approve a taller antenna height than stipulated in b. above if it is his or her determination that it is suitably camouflaged, in which case an administrative approval may be granted. d) If the Community Development Director determines that an antenna taller than stipulated in b. above cannot be suitably camouflaged, then the additional height of the antenna shall be reviewed pursuant to the process and standards (in addition to the standards of this Section) of Chapter 26.430 (Special review). e) Support and/or switching equipment shall be located inside the building, unless it can be fully screened from view as provided in the "Screening" standards (26.475.130 and 26.575.130.F.5) below. 5. Architectural compatibility. WCFs shall be consistent with the architectural style of the surrounding architectural environment (planned or existing) considering exterior materials, roof form, scale, mass, color, texture and character. In addition: a) If such WCF is accessory to an existing use, it shall be constructed out of materials that are equal to or of better quality than the materials of the principal use and shall exhibit compatible architectural characteristics to the principal use. b) WCF equipment shall be of the same color as the building or structure to which or on which such equipment is mounted or as required by the appropriate decision-making authority (Community Development Director, Historic Preservation Commission, Planning and Zoning Commission or City Council, as applicable). c) Whenever WCF equipment is mounted to the wall of a building or structure, the equipment shall be mounted in a configuration designed to blend with and be architecturally integrated into a building or other concealing structure, be as flush to the wall as technically possible and shall not project above the wall on which it is mounted. P264 IX.d EXHIBIT A 19 d) Monopole support buildings, which house switching devices and/or other equipment related to the use, operation or maintenance of the subject monopole, must be designed to match the architecture of adjacent buildings. If no recent and/or reasonable architectural theme is present, the Community Development Director may require a particular design that is deemed to be suitable to the subject location. e) All utilities associated with WCFs shall be underground (also see "Screening" below). 6. Compatibility with the natural environment. WCFs shall be compatible with the surrounding natural environment considering land forms, topography and other natural features and shall not dominate the landscape or present a dominant silhouette on a ridge line. In addition: a) If a location at or near a mountain ridge line is selected, the applicant shall provide computerized, three-dimensional, visual simulations of the WCF and other appropriate graphics to demonstrate the visual impact on the view of the affected ridges or ridge lines; an 8040 Greenline Review, pursuant to the provisions of Section 26.435.030, may also be required. b) Site disturbances shall be minimized and existing vegetation shall be preserved or improved to the extent possible, unless it can be demonstrated that such disturbance to vegetation and topography results in less visual impact to the surrounding area. c) Surrounding view planes shall be preserved to the extent possible. 7. Screening. All WCF equipment, including accessory equipment, shall be screened from adjacent and nearby public rights-of-way and public or private properties placing equipment internal to the structure, by paint color selection, parapet walls, screen walls, fencing, landscaping and/or berming in a manner compatible with the building's and/or surrounding environment's design, color, materials, texture, land forms and/or topography, as appropriate or applicable. In addition: a) Whenever possible, if monopoles are necessary for the support of antennas, they shall be located near existing utility poles while maintaining National Electric Safety Code clearance and/or other governing regulations, trees or other similar objects; consist of colors and materials that best blend with their background; and, have no individual antennas or climbing spikes on the pole other than those approved by the appropriate decision-making authority (Community Development Director, Historic Preservation Commission, Planning and Zoning Commission or City Council, as applicable). b) For ground-mounted facilities, landscaping may be required to achieve a total screening effect at the base of such facilities or equipment in order to screen the mechanical characteristics; a heavy emphasis on coniferous plants for year-round screening may be required. Landscaping shall be of a type and variety capable of growing within one (1) year to a landscape screen which satisfactorily obscures the visibility of the facility. P265 IX.d EXHIBIT A 20 c) Unless otherwise expressly approved, all cables for a WCF shall be fully concealed from view underground or inside of the screening or monopole structure supporting the antennas; any cables that cannot be buried or otherwise hidden from view shall be painted to match the color of the building or other existing structure. d) Chain link fencing shall be unacceptable to screen facilities, support structures or accessory and related equipment (including HVAC or mechanical equipment present on support buildings); fencing material, if used, shall be six (6) feet in height or less and shall consist of wood, masonry, stucco, stone or other acceptable materials that are opaque. e) Notwithstanding the foregoing, the WCF shall comply with all additional measures deemed necessary to mitigate the visual impact of the facility. Also, in lieu of these screening standards, the Community Development Director may allow use of an alternate detailed plan and specifications for landscape and screening, including plantings, fences, walls, sign and structural applications, manufactured devices and other features designed to screen, camouflage and buffer antennas, poles and accessory uses. The plan should accomplish the same degree of screening achieved by meeting the standards outlined above. 8. Lighting and signage. WCFs shall not be artificially lighted, unless required by the FAA or other applicable governmental authority, or the WCF is mounted on a light pole or other similar structure primarily used for lighting purposes. If lighting is required it shall conform to other applicable sections of the code regulating signage or outdoor lighting., The following standards shall apply to WCFsand equipment: a) The light source for security lighting shall feature down-directional, sharp cut-off luminaries to direct, control, screen or shade in such a manner as to ensure that there is no spillage of illumination off-site. b) Light fixtures, whether free standing or tower-mounted, shall not exceed twelve (12) feet in height as measured from finished grade. c) The display of any sign or advertising device other than public safety warnings, certifications or other required seals on any wireless communication device or structure is prohibited. d) The telephone numbers to contact in an emergency shall be posted on each facility in conformance with the provisions of Chapter 26.510, Signs, of this Title. 9. Noise. Noise generated on the site must not exceed the levels permitted in this Code, except that a WCF owner or operator shall be permitted to exceed Code noise standards for a reasonable period of time during repairs, not to exceed two hours without prior authorization from the City. 10. Additional design requirements shall be applicable to the various types of WCFs as specified below: a) Base Stations. If an antenna is installed on a structure other than a Tower or Alternative Tower Structure, such as a Base Station (including, but not limited to the antennas and accessory equipment) it shall be of a neutral, non-reflective color that is identical to, or closely compatible with, the color of the supporting structure, or uses P266 IX.d EXHIBIT A 21 other camouflage/concealment design techniques so as to make the antenna and related facilities as visually unobtrusive as possible, including for example, without limitation, painting the Antennas and accessory equipment to match the structure. Additionally, any ground mounted equipment shall be located in a manner necessary to address both public safety and aesthetic concerns in the reasonable discretion of the Manager, and may, where appropriate, require a flush-to-grade underground equipment vault. b) Alternative Tower Structures not in the Public Right-of-Way. i Alternative Tower Structures shall be designed and constructed to look like a building, facility, or structure typically found in the area. ii Be camouflaged/concealed consistent with other existing natural or manmade features near the location where the Alternative Tower Structure will be located. iii Such structures shall be architecturally compatible with the surrounding area; iv Height or size of the proposed alternative tower structure should be minimized as much as possible; v WCFs shall be sited in a manner that evaluates the proximity of the facility to residential structures and residential district boundaries; vi WCFs should take into consideration the uses on adjacent and nearby properties and the compatibility of the facility to these uses; vii Compatibility with the surrounding topography; viii Compatibility with the surrounding tree coverage and foliage; ix Compatibility of the design of the site, with particular reference to design characteristics that have the effect of reducing or eliminating visual obtrusiveness; and x Impact on the surrounding area of the proposed ingress and egress, if any. c) Alternative Tower Structures in the Public Right-of-Way. Alternative Tower Structures and associated Small Cells, or Micro Cells may be deployed in the Public Right-of-Way through the utilization of a street light pole, distribution lines, utility poles, traffic signal or similar structure. Such facilities shall remain subject to the Alternative Tower Structures standards of approval noted above, and subject to the following additional design criteria below: i To the extent that an Alternative Tower Structure is a vertical structure located in the Public Right-of-Way, with respect to its pole-mounted components, be located on or within an existing utility pole serving another utility; ii With respect to its pole components, such components shall be located on or within a new utility pole, if there are no reasonable alternatives, and the Applicant is authorized to construct the new utility poles; or P267 IX.d EXHIBIT A 22 iii To the extent reasonably feasible, be consistent with the size and shape of the pole-mounted equipment installed by communications companies on utility poles near the Alternative Tower Structure; iv Be sized to minimize the negative aesthetic impacts to the Public Right- of-Way; v Be designed such that antenna installations on traffic signal standards are placed in a manner so that the size, appearance, and function of the signal will not be considerably altered. vi Require that any ground mounted equipment shall be located in a manner necessary to address both public safety and aesthetic concerns in the reasonable discretion of the Director, and may, where appropriate, require a flush-to-grade underground equipment vault. vii Not alter vehicular circulation or parking within the Right-of-Way or impede vehicular, bicycle, or pedestrian access or visibility along the Right- of-Way. The Alternative Tower Structure must comply with the Americans With Disabilities Act and every other local, state, and federal law and regulations. No Alternative Tower Structure may be located or maintained in a manner that causes unreasonable interference. Unreasonable interference means any use of the Right-of-Way that disrupts or interferes with its use by the City, the general public, or other person authorized to use or be present upon the Right-of-way, when there exists an alternative that would result in less disruption or interference. Unreasonable interference includes any use of the Right-of-way that disrupts vehicular or pedestrian traffic, any interference with public utilities, and any other activity that will present a hazard to public health, safety, or welfare. viii The pole or structure is not more than 5 feet taller (as measured from the ground to the top of the pole) than any existing utility or traffic signal pole within a radius of 500 feet of the pole or structure. ix Any such pole shall in no case be higher than 25 feet in height or the maximum permissible height of the given Zone District, whichever is more restrictive . x Any such pole shall be separated from any other wireless communication facility in the Right-of-Way by a distance of at least 600 feet unless deployed on an existing structure in the Public Right-of-Way. xi To the extent reasonably feasible, Collocations are strongly encouraged to limit the number of poles within the Right-of-Way. xii Equipment enclosures shall be located out of view as much as possible and shall comply with City criteria (e.g. sight line criteria). xiii When placed near a residential property, the WCF shall be placed adjacent to the common side yard property line between adjoining residential properties, such that the WCF minimizes visual impacts equitably among adjacent properties. In the case of a corner lot, the WCF may be placed P268 IX.d EXHIBIT A 23 adjacent to the common side yard property line between adjoining residential properties, or on the corner formed by two intersecting streets. If these requirements are not reasonably feasible from a construction, engineering or design perspective, the applicant may submit a written statement to the Director requesting the WCF be exempt from these requirements. d) Towers i Towers shall either maintain a galvanized steel finish, or, subject to any applicable FAA standards, be painted a neutral color so as to reduce visual obtrusiveness as determined by the City; ii Tower structures should use existing land forms, vegetation, and structures to aid in screening the facility from view or blending in with the surrounding built and natural environment; iii Monopole support structures shall taper from the base to the tip; iv All Towers, excluding alternative tower structures in the Right-of-Way, shall be enclosed by security fencing or wall at least 6 feet in height and shall also be equipped with an appropriate anti-climbing device. e) Director to adopt design standards: Pursuant to the powers and authority conferred by the Charter of the City, the Director shall adopt additional small cell infrastructure design guidelines, as may be amended from time to time. Said guidelines are incorporated herein as if fully set forth and shall be published and at least one (1) copy of the Small Cell Infrastructure Design Guidelines shall be available for public inspection at the Community Development Department. 11. Related Accessory Equipment. Accessory equipment for all WCFs shall meet the following requirements: a) All buildings, shelter, cabinets, and other accessory components shall be grouped as closely as technically possible; b) The total footprint coverage area of the WCF’s accessory equipment shall not exceed 350 square feet; c) No related accessory equipment or accessory structure shall exceed 12 feet in height; d) Accessory equipment, including but not limited too remote radio units, shall be located out of sight whenever possible by locating behind parapet walls or within equipment enclosures. Where such alternate locations are not available, the accessory equipment shall be camouflaged or concealed. 12. Access ways. In addition to ingress and egress requirements of the Building Code, access to and from WCFs shall be regulated as follows: a) No WCF shall be located in a required parking, maneuvering or vehicle/pedestrian circulation area such that it interferes with or in any way impairs, the intent or functionality of the original design. P269 IX.d EXHIBIT A 24 b) The WCF must be secured from access by the general public but access for emergency services must be ensured. Access roads must be capable of supporting all potential emergency response vehicles and equipment. c) The proposed easements for ingress and egress and for electrical and telecommunications shall be recorded at the County Clerk and Recorder's Office prior to the issuance of building permits. 13. Conditions and limitations. The City shall reserve the right to add, modify or delete conditions after the approval of a request in order to advance a legitimate City interest related to health, safety or welfare. Prior to exercising this right, the City shall notify the owner and operator in advance and shall not impose a substantial expense or deprive the affected party of a substantial revenue source in the exercising of such right. Approval by the Community Development Director for a wireless telecommunication services facility and/or equipment application shall not be construed to waive any applicable zoning or other regulations; and wherein not otherwise specified, all other requirements of this Code shall apply, including Title 21(Street, Sidewalks, and other public places, and Title 29 (Engineering Design Standards). All requests for modifications of existing facilities or approvals shall be submitted to the Community Development Director for review under all provisions and requirements of this Section. If other than minor changes are proposed, a new, complete application containing all proposed revisions shall be required. (Ord. No. 1-2002 § 18; Ord. No. 52-2003, §§ 14, 15) P270 IX.d