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HomeMy WebLinkAboutagenda.council.worksession.20120731 MEMORANDUM TO: Mayor Ireland and Council FROM: Wheeler Executive Director Gram Slaton THRU: Assistant City Manager Randy Ready DATE OF MEMO: 16 July 2012 RE: Recommendations to City Council regarding Wheeler subsidy reduction The summary memo following the June 5,2012, meeting with City Council is attached at the end of this document for reference purposes. SUMMARY: As per City Council's direction at the end of the June 5, 2012, work session, Wheeler staff reviewed and reformatted the presentation sheets for possible rental and usage charge rates for user groups accessing the theatre and box offices services available through the Wheeler Opera House. These revised sheets are presented here in advance of the scheduled July 31, 2012, follow-up work session for further discussion and possible implementation. BACKGROUND: A full review, discussion, and implementation of changes as directed by City Council of the Wheeler's programs and subsidy levels was established as a top ten goal for the 2011—2012 year. Wheeler staff worked throughout the remainder of 2011 and into 2012 on a comprehensive document on the Wheeler's programming history and past Council direction. This was presented and discussed in work session on February 28, 2012. A follow-on work session took place on June 5, where five of the seven recommendations from Wheeler board and staff were accepted. Discussion took place regarding the cafeteria-plan presentation of possible new rental/usage rates and increases; however, Council found the format and information submitted to be confusing and requested Wheeler staff and board to return at a later meeting with a clearer presentation of these rates and increases. Council also asked for a better definition of the"cost of a ticket." DISCUSSION: The rates and increases are presented in what Wheeler staff and board feel is a thorough and logical manner for Council's review and consideration. Unlike the earlier spreadsheets, specific recommendations are suggested and may be the source of further conversation with Council during the work session. Additionally, Wheeler staff has prepared a sheet that details all of the expenses that go into the cost of preparing and executing a sale, using a slightly-modified version of the City Finance-prepared spreadsheet used in 2011 in the Pricing Committee exercise, and a further modification at the suggestion of Councilman Derek Johnson. RECOMMENDATION/COMMENT: Wheeler board and staff recommend that City Council carefully consider the full impact of these possible new fess and increases,and give staff its direction for adoption and implementation. CITY MANAGER COMMENTS: 1 WHEELER OPERA HOUSE SUBSIDY STUDY QUESTIONS AND WHEELER BOARD OF DIRECTORS'RECOMMENDATIONS TO CITY COUNCIL 1. Rental rates for users of the Wheeler have been maintained at a very conservative level for many years, in order to attract and maintain for-profit and not-for-profit events at the facility. Even with attendance and box-office receipts now rising, many users find their cost of presenting at the venue challenging. Shall the rental structure and/or rates for the Wheeler be adjusted in order to better limit the subsidy required to serve as a publicly-available rental venue? The Wheeler board of directors' recommendation to Council is that the Wheeler proceed cautiously with rate increases, as detailed in Attachment A, while remaining sensitive to the ability of its not-for-profit user groups and others to afford use of the venue. The Wheeler board's recommendation to Council is to not create an overly complex menu of venue rental rates based on time of year,day part,or other distinction,as the Wheeler has previously had such a menu and found it detrimental to providing the best service for its customers. Discussion: Prior to 2006, the rental rate structure for user groups of the Wheeler was not only overly complicated and very difficult to discern, it was also built upside-down in its ability to fairly approximate the cost of doing business at the venue. By example, the daily rental rate was extremely high, while the hourly fee for stagehands was deeply discounted, inadvertently encouraging rentors to use Wheeler human resources inefficiently and to no one's benefit. This was corrected in 2006 with a rental fee that approximated the cost of utilities and certain other soft costs on a pro-rated daily basis, while increasing the stagehand and other costs to more accurately reflect rates that the Wheeler was paying. The recession inhibited the Wheeler's ability to raise rates during the 2008 — 2011 period, as user groups were already struggling to pay production costs in the face of diminished ticket sales. Wheeler board and staff feel that the local economy is now at a sufficient recovery point that certain rates can bear being increased in order to better support the Wheeler's actual cost of services. However, caution is urged as many of the Wheeler's user groups have yet to experience the benefit of an improving economy and may not be able to easily support more than modest incremental increases. Rates are subject to review annually and will be measured against actual operating expenses for further adjustment. Attachment A reviews the entire range of possible new fees and areas where fees could be increased. A column is color-coded to designate the Wheeler board and staff's recommendations. 2 2. The Wheeler's Aspen Show Tickets box office operation is a major and affordable ticket services resource for the Roaring Fork Valley's many event-producing entities; however, the staffing investment is significant and even at current rates often challenges users to make their events financially successful. Shall the Wheeler rates for box office services be adjusted in order to reduce the subsidy required to serve as a ticketing resource for Aspen and the Roaring Fork Valley? The Wheeler board of directors' recommendation to Council is that the Wheeler proceed cautiously with rate increases, as detailed in Attachment B, remaining sensitive to both the ability of the rentor to absorb into its show production expenses, and the capacity of the public to accept as a reasonable pass-through of the cost of doing business. Discussion: Aspen Show Tickets has grown to be a $1.9 million business, with year-round activity. Outside (non-Wheeler) sales have far outstripped sales for events at the Wheeler, which is more a reflection of growth in sales clients than it is activity at the home venue. Because outside sales demand more investment in Wheeler staff time and other resources than events that take place in the historic venue,a review of the fee structure is in order, particularly as the soft costs necessary in order to make this program successful have not been fully incorporated into its numbers. Still, Wheeler staff and board urge caution in raising rates or creating new fees, as absorption of a large increase in the total cost of doing sales through Aspen Show Tickets may become cost prohibitive and drive clients towards other providers. Of particular concern to Wheeler box office staff is the consideration of any per-ticket fee, as this will increase the price of tickets to the consumer. Given the high amount of film events as well as low-cost outside events that the Wheeler's Aspen Show Tickets processes, there is unease about how clients will be able to adapt to this mandatory pricing imposition, and fear that Aspen Show Tickets may experience negative client attrition because of it. By comparison, the Vilar Center in Beaver Creek has per-ticket fees of $2.00 for window sales and $4.00 for online sales, but charges only a $1.00 order processing fee. Belly Up Aspen has a variable per- ticket fee structure; a quick inspection of their website showed fees of between $3.50 and $22.25 per ticket, depending on the face value of the ticket. Nationally, there has been no consensus on this issue even as per-ticket fees have become an accepted norm of doing business in most places, leaving it difficult to find a path to what might be an "acceptable"entry point for the Wheeler. Wheeler staff expects that there would be considerable blowback from the public at the introduction of a per-ticket fee or fees, and asks Council to take this into consideration when weighing the benefits of this potential sources of revenue. Attachment B reviews the entire range of possible new fees and areas where fees could be increased. A column is color-coded to designate the Wheeler board and staff's recommendations. 3 Aspen City Council Work Session Summary MEETING DATE: Tuesday,5 June 2012 AGENDA TOPIC: Wheeler Programs and Subsidy Information-Follow-Up PRESENTED BY: Gram Slaton,Wheeler Executive Director COUNCIL MEMBERS PRESENT: All(Frisch,Ireland,Johnson,Skadron,Torre) SUMMARY OF DISCUSSION: The purpose of the meeting was a follow-up to the February 28, 2012, meeting where the twelve various programs of the Wheeler Opera House and their revenues and expenses,and attendant subsidies,were discussed. This follow-up meeting was scheduled to bring the Wheeler board's recommendations to City Council for its approval or further direction. Five of the seven recommendations were greeted favorably; two were sent back to Wheeler staff for better clarification at a further follow-up meeting. POLICY DIRECTION: 1. To what degree shall the Wheeler continue to strategically invest in arts events? Council reaffirmed that it was supportive of the Wheeler's general programming direction and wished for staff to take all necessary measures to best ensure that any and all gaps between revenues and expenses continue to improve, including setting goals and achieving them. 2. What direction shall City Council give Wheeler staff in terms of programming mix? Council accepted the Wheeler board of directors' recommendation that the Wheeler maintains its current programming mix, with an emphasis on live events and significant film events. Wheeler staff informed Council that, due to a high portion of rental dates already accepted for the 2012- 2013 winter season, Wheeler-sponsored bookings would be reduced. 3. Shall the Wheeler begin to strategically solicit outside funding sources? Council reaffirmed that it was supportive of the Wheeler pursuing all outside funding sources, so long as this did not require creating a dedicated fundraising person on staff. Wheeler staff noted that it had received and used $35,000 of such underwriting support for its March 2012 7908 Aspen Songwriters Festival. 4. Shall programs that offer no ability to reasonably recover their operating costs continue as part of the Wheeler's programming profile?Council accepted the Wheeler board of directors' recommendation that that the Community Events program be continued using its present qualifying criteria for inclusion in the program, and that Community Events initiated by outside parties be charged a flat$100 usage fee in order to offset some of the in-house costs of event production. Wheeler-initiated Community Events would continue to be funded entirely 4 through Wheeler programming. Further,the Wheeler will continue to honor the existing contract with the Wheeler Film Society through its third year(expiring June 2013), and then solicit through a Request For Proposals the service contract for exhibiting film. 5. Shall the rental structure and/or rates for the Wheeler be adjusted? Council asked Wheeler staff to do further work on this item in terms of possible rate adjustments, in order to better understand the impact on the operating budget versus impact on user groups. 6. Shall Concessions prices be adjusted? Council accepted the Wheeler board of directors' recommendation that the Wheeler reviews bar pricing in the downtown core, and create drink and-food options that better reflects the average cost of such services while also being attentive to affordability for all Aspenites, and to implement any and all price changes at the earliest opportunity. Wheeler staff additionally informed Council that steps had already been taken to mediate the cost of Concessions operations through the use of full-time staff for Wheeler Film Society movies and other low-impact events. 7. Shall the Wheeler rates for box office services be adjusted?Council asked Wheeler staff to do further work on this item in terms of possible rate adjustments, in order to better understand the impact on the operating budget versus impact on user groups. Further, Council asked Wheeler staff to redetermine the box office costs as a cost per ticket, in order to establish a baseline for the cost of doing business. Estimated Date for Follow-Up with City Council: Wheeler staff and board desire to return to Council in early summer for final discussion and direction. Council Member Comments: 5 E n t v ,s. 6 o - 3 0 _=', c E \ 7. ` a c o i J o - _o v r v o : ° , _ii f u � o 't O�. ° v - - « N- , c- o LL we m E 3 E n a- EE 2 `o E m = v o _— c 3 4- m i ' . o _ - a m - o w o' . c - v E a a o .a n ° F E , - E 3 a- « y - E El - ` ° a c - E m G s m x ,* a w 5 E a' a LL ° 3 z - 3 z v " z v " a 3 2 ' c o ' 5 U U 0 0 UVUU U o 7 U 7 ° ° ° ° U V'. 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'E A " a ° Z E - a a+ _ E E `o` o W 0 C r z a a o o ti 0 z 5. _ Ln _Q o a `e ' LE LE ,_ v zv z e ' o mo Y E o_ x io F p -a z u LL Aspen Show Tickets-Wheeler Box Office Revenues Past Year(2011) Fees $ # Revenue Box Office Royalties (5%and 6%) $116,720 Credit Card Fees (avg)/shows $67 265 $17,755 Ticket Sellers (FP& NFP) $30 80 $2,400 Box Office Set Up Fees $25 10 $250 Per-Order Processing Fees $4 11,133 $44,532 Promotional Code Scripting n/a Pricing Template Creation n/a Client Database Entry n/a Total Revenues $181,660 Expenses Current $/# % Expense GF Overhead $353,960 8.0% $28,320 IT Overhead $68,790 25.0% $17,200 Payroll $274,584 100.0% $274,580 Hours 8,855 Operating $39,619 100.0% $39,620 Capital Items $8,000 Total Cost $367,720 Subsidy Current Total$ WITH CAPITAL ($186,060) #Tickets Per Year 107,865 Per Ticket ($1.72) Recovery 49% Cost/Hour $41.53 Total$ WITHOUT CAPITAL ($178,060) #Tickets Per Year 107,865 Per Ticket ($1.65) Recovery 51% Cost/Hour $40.62 Capital Item Cost Useful Life Annual Ticketing System Software (initial) $80,000 10 $8,000 Ticketing System Upgrades $0 $8,000 Based on $1.9 million in total ticket sales for 2011 (final figure), and $1.95 million plus full collecti Box Office Royalties increase for 2012 reflects Wheeler getting full value of fee as client show res Ticketing System Upgrade amount of$30,000 includes approx$20,000 for involuntary expense a: • 4 Current(2012) Proposed (: $ # Growth Revenue $ # 19.9% $140,000 $70 280 5.7% $19,600 $72 300 $30 85 6.3% $2,550 $30 90 $25 80 700.0% $2,000 $25 100 $4 12,000 7.8% $48,000 $5 12,500 n/a $12.50 24 n/a $25 12 n/a $90 4 Average Growth/(Reduction): 16.8% $212,150 Average Growth/(Reduction): 0` Current Current $/# % Growth Expense $/## $365,995 8.0% 1.3% $29,280 $378,439 8.0% $71,129 25.0% 1.3% $17,780 $73,547 25.0% $257,462 100.0% -6.2% $257,460 $239,924 100.0% 8,280 9,379 $40,609 100.0% 2.5% $40,610 $41,624 100.0% $18,000 Average Growth/(Reduction): -1.2% $363,130 Average Growth/(Reduction): Current ($150,980) 2.0% 110,000 ($1.37) 58% $43.86 ($132,980) 110,000 ($1.21) 61% $41.68 .1111111,111111111.1.111111111111., ]SL Cost Useful Life Annual Cost Useful Life $80,000 10 $8,000 $80,000 10 $30,000 3 $10,000 $30,000 3 $18,000 ions for 2012. ults improve. ssociated with becoming compliant with new ADA regulations. • • 2013) Growth Revenue 7.1% $150,000 10.20% $21,600 5.88% $2,700 25.00% $2,500 30.21% $62,500 100.00% $300 100.00% $300 100.00% $360 13.3% $240,260 Growth Expense 1.3% $30,280 1.3% $18,390 -7.3% $239,920 2.5% $41,620 $18,000 -4.1% $348,210 Current ($107,950) 4.5% 115,000 ($0.94) 69% $37.13 ($89,950) 115,000 ($0.78) 73% $35.21 Annual $8,000 $10,000 $18,000 Notes Growth between 2011 and 2012 reflects ability to charge full royalty amount as user groups recover from recession; growth between 2012 and 2013 reflects anticipated growth in rental days with no change to rate anticipated. Growth between years anticipates more sales at higher ticket prices. Revenue growth from introduction of fee to all applicable users and rate increase. 2011 year introduced this fee; some contracts for 2012 were already written. 2013 reflects application of fee to all rental contracts. Jump in revenue between 2011 and 2012 reflects 20% increase in fee, from $4 to $5. New fee introduced in 2013. New fee introduced in 2013. New fee introduced in 2013. Based on historical data from 2011 Pricing Committee exercise. Based on historical data from 2011 Pricing Committee exercise. Improvement reflects transition from four FTE employees to three over the course of the 2012 year. Change between 2012 and 2013 reflects more use of hourly (nonsalaried) personnel Based on historical data from 2011 Pricing Committee exercise. New ticketing system purchased in 2010; full price prorated over ten years. Regular upgrade plus required upgrading for ADA compliance in 2012. MEMORANDUM TO: Mayor and City Council FROM: Don Taylor, Director of Finance THRU: Steve Barwick, City Manager DATE OF MEMO: June 29th,2012 MEETING DATE: July 10th, 2012 RE: Direction to staff to issue bonds for new money and refunding. REQUEST OF COUNCIL: This is for the City Council to direct staff to proceed with the actions necessary to issue $5,070,000 in new Parks, Recreation and Open Space Bonds to finance capital improvements and also to issue $4,815,000 in bonds to partially, advance refund outstanding 2005 Parks, Recreation and Open Space bonds. PREVIOUS COUNCIL ACTION: City Council, as part of the approved 2012 budget gave preliminary go ahead for the issuance of approximately 4 million dollars in new bonds in order to finance a list of capital improvements proposed as part of that budget. Additionally, the parks department will discuss a new parks development project with an estimated cost of$1,000,000. The Council reaffirmed the plan on a Parks, Recreation and Open Space presentation at their facility open house when the capital projects were reviewed again with the City Council. BACKGROUND: In 2001 the City electorate authorized the issuance of up to $38,000,000 in bonds for various projects. To date $25,680,000 has already been issued. Authority to issue $12,320,000 in Bonds remains. As part of the development of the asset management plan for 2012—2022 a list of capital projects were deemed important to undertake as soon as possible and staff was directed to finance the cost of these projects through the issuance of bonds. These projects were as follows: $1,225,000 Wagner Park 2013 $ 750,000 Galena Plaza Landscape Project $ 750,000 City share of Droste $ 225,000 Golf Course Pond 2012 $ 220,000 Bob Helm Bridge 2012 $ 100,000 Rio Grande Park Restroom 2012 -2013 (2 year project) $ 500,000 Rio Grande Park 2012 -2013 (2 year project) $ 225,000 Rio Grande Irrigation and Pump System Page 1 of 3 Additionally, The parks department will discuss a parks development project that was n of in the Asset management plant that will cost approximately$1,000,000. DISCUSSION: The total financing shown above totals $4,995,000. Closing costs will bring the size of the issue to $5,089,000. The all in true interest cost of this issue is estimated to be 3.19% if sold today. The proposed debt service structure for the bonds is a little unique as the bonds are issued as interest only until 2026. This allows the City to take advantage of extremely low interest rates for a longer period of time and still maintains a level debt service schedule. The overall Parks debt service schedule is level because other parks bonds will be paid off in 2026 when the 2012 bonds will be scheduled for repayment. If Council gives the go ahead, staff will begin preparation of the disclosure documents and prepare for a sale in August and closing in September. In addition to issuing bonds to finance these projects, staff has been analyzing the possibility of doing a partial advance refunding (refinance) of the 2005B Parks and recreation bonds. Interest rates have dropped so low and we are now close enough to the call date that the bonds can be refunded in two tranches and save the City money. The City would issue $4,815,000 is bonds as part of this overall debt package to refund a portion of the outstanding 2005 bonds. The estimated savings on the first refunding tranche is $280,000. In 2013 the City would issue another 10 million to refund most of the remainder of the 2005 bonds if interest rates remain low enough to make the refunding financially viable. The reason this is split in two tranches is that there are IRS regulations that give tax advantages to small issuers of tax free debt. As long as our total issuances are less than $10,000,000 million annually we will maintain that tax advantaged status. The estimated true interest cost for the bonds to conduct the refunding is 2.89%. The actual interest rates for both of these issues will change based on market conditions on the date of the sale. FINANCIAL/BUDGET IMPACTS: The financial impacts of the new money bond issue is debt service costs in the amount of$156,000 annually until 2026 when the annual debt service costs will increase to approximately $815,000 per year until 2032. The financial impacts of the first refunding tranche are a $280,000 savings over the remaining life of the outstanding 2005 Parks and Recreation Bonds. RECOMMENDED ACTION: Staff recommends approval of the issuance of Bonds to both refund outstanding 2005 bonds and to raise $5,089,000 in new money for the proposed projects. ALTERNATIVES: The alternative would be to not issue bonds and to spread completion of the projects over many years and pay for them out of current revenues each year. PROPOSED MOTION: Staff is directed to proceed with the refunding and the new money issuance. Page 2 of 3 CITY MANAGER COMMENTS: ATTACHMENTS: Financial structure of the proposed isses. Page 3 of 3 SOURCES AND USES OF FUNDS City of Aspen Sales Tax Revenue and Refunding Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Sales Tax Revenue Refunding Sales Tax Bonds,Series Revenue Bonds, Sources: 2012 Series 2012 Total Bond Proceeds: Par Amount 4,815,000.00 5,070,000.00 9,885,000.00 Premium 94,218.45 27,119.40 121,337.85 Original Issue Discount -8,163.55 -8,163.55 4,909,218.45 5,088,955.85 9,998,174.30 Other Sources of Funds: Bond Payment Due 11/1/12 106,706.25 106,706.25 5,015,924.70 5,088,955.85 10,104,880.55 Sales Tax Revenue Refunding Sales Tax Bonds,Series Revenue Bonds, Uses: 2012 Series 2012 Total Project Fund Deposits: Project Construction Fund 4,995,000.00 4,995,000.00 Refunding Escrow Deposits: Cash Deposit 0.41 0.41 SLGS Purchases 4,927,644.00 4,927,644.00 4,927,644.41 4,927,644.41 Delivery Date Expenses: Cost of Issuance 29,226.10 30,773.90 60,000.00 Underwriter's Discount 31,297.50 32,955.00 64,252.50 Reserve Fund Surety 24,075.00 25,350.00 49,425.00 84,598.60 89,078.90 173,677.50 Other Uses of Funds: Additional Proceeds 3,681.69 4,876.95 8,558.64 5,015,924.70 5,088,955.85 10,104,880.55 Jul 16,2012 1:13 pm Page 1 STIFEL NICOLAUS BOND DEBT SERVICE City of Aspen Sales Tax Revenue and Refunding Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Annual Period Ending Principal Coupon Interest Debt Service Debt Service 05/01/2013 177,150.00 177,150.00 11/01/2013 85,000 2.000% 132,862.50 217,862.50 395,012.50 05/01/2014 132,012.50 132,012.50 11/01/2014 105,000 2.000% 132,012.50 237,012.50 369,025.00 05/01/2015 130,962.50 130,962.50 11/01/2015 105,000 2.000% 130,962.50 235,962.50 366,925.00 05/01/2016 129,912.50 129,912.50 11/01/2016 105,000 2.000% 129,912.50 234,912.50 364,825.00 05/01/2017 128,862.50 128,862.50 11/01/2017 110,000 2.000% 128,862.50 238,862.50 367,725.00 05/01/2018 127,762.50 127,762.50 11/01/2018 110,000 2.000% 127,762.50 237,762.50 365,525.00 05/01/2019 126,662.50 126,662.50 11/01/2019 785,000 2.000% 126,662.50 911,662.50 1,038,325.00 05/01/2020 118,812.50 118,812.50 11/01/2020 1,450,000 2.250% 118,812.50 1,568,812.50 1,687,625.00 05/01/2021 102,500.00 102,500.00 11/01/2021 1,485,000 2.500% 102,500.00 1,587,500.00 1,690,000.00 05/01/2022 83,937.50 83,937.50 11/01/2022 475,000 2.500% 83,937.50 558,937.50 642,875.00 05/01/2023 78,000.00 78,000.00 78,000.00 78,000.00 156,000.00 11/01/2024 4 11/01/2023 78,000.00 78,000.00 11/01/2024 78,000.00 78,000.00 156,000.00 05/01/2025 78,000.00 78,000.00 11/01/2025 78,000.00 78,000.00 156,000.00 05/01/2026 78,000.00 78,000.00 11/01/2026 660,000 3.000% 78,000.00 738,000.00 816,000.00 05/01/2027 68,100.00 68,100.00 11/01/2027 680,000 3.000% 68,100.00 748,100.00 816,200.00 05/01/2028 57,900.00 57,900.00 11/01/2028 700,000 3.000% 57,900.00 757,900.00 815,800.00 05/01/2029 47,400.00 47,400.00 11/01/2029 725,000 3.000% 47,400.00 772,400.00 819,800.00 05/01/2030 36,525.00 36,525.00 11/01/2030 745,000 3.000% 36,525.00 781,525.00 818,050.00 05/01/2031 25,350.00 25,350.00 11/01/2031 770,000 3.250% 25,350.00 795,350.00 820,700.00 05/01/2032 12,837.50 12,837.50 11/01/2032 790,000 3.250% 12,837.50 802,837.50 815,675.00 9,885,000 3,593,087.50 13,478,087.50 13,478,087.50 Page 2 Jul 16,2012 1:13 pm STIFEL NICOLAUS BOND PRICING City of Aspen Sales Tax Revenue and Refunding Bonds,Series 2012 Maturity Yield to Call Bond Component Date Amount Rate Yield Price Maturity Date Ca Premium (-Discount) t) Serial Bonds: 11/01/2013 85,000 2.000% 0.600% 101.624 11/01/2014 105,000 2.000% 0.700% 102.790 1,380.40 11/01/2015 105,000 2.000% 0.880% 103.489 2,929.50 11/01/2016 105,000 2.000% 1.000% 104.070 3,663.45 11/01/2017 110,000 2.000% 1.260% 103.689 4,273.50 11/01/2018 110,000 2.000% 1.530% 102.754 4,057.90 11/01/2019 785,000 2.000% 1.760% 101.608 3,029.40 11/01/2020 1,450,000 2.250% 2.020% 101.722 12,622.80 11/01/2021 1,485,000 2.500% 2.230% 102.225 24,969.00 11/01/2022 475,000 2.500% 2.400% 100.895 33,251.25 11/01/2026 660,000 3.000% 2.890% 100.967 C 2.916% 12/01/2022 100.000 6,382.20 11/01/2027 680,000 3.000% 2.920% 100.701 C 2.942% 12/01/2022 100.000 4,766.80 11/01/2028 700,000 3.000% 2.970% 100.260 C 2.979% 12/01/2022 100.000 4,820.00 11/01/2029 725,000 3.000% 3.020% 99.731 1,820.00 11/01/2030 745,000 3.000% 3.060% 99.166 -1,950.25 -6,213.30 11/01/2031 770,000 3.250% 3.110% 101.217 C 3.165% 12/01/2022 100.000 9,370.90 11/01/2032 790,000 3.250% 3.180% 100.605 C 3.209% 12/01/2022 100.000 4,779.50 9,885,000 113,174.30 Dated Date 09/01/2012 Delivery Date 09/01/2012 First Coupon 05/01/2013 Par Amount 9,885,000.00 Premium 113,174.30 Production 9,998,174.30 101.144909% Underwriter's Discount -64,252.50 -0.650000% Purchase Price 9,933,921.80 100.494909% Accrued Interest Net Proceeds 9,933,921.80 Jul 16,2012 1:13 pm Page 3 STIFEL NICOLAUS BOND SUMMARY STATISTICS City of Aspen Sales Tax Revenue and Refunding Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Last Maturity 11/01/2032 Arbitrage Yield 2.769418% True Interest Cost(TIC) 2.831303% Net Interest Cost(NIC) 2.854265% All-In TIC 2.889570% Average Coupon 2.853865% Average Life(years) 12.737 Duration of Issue(years) 10.607 Par Amount 9,885,000.00 Bond Proceeds 9,998,174.30 Total Interest 3,593,087.50 Net Interest 3,544,165.70 Bond Years from Dated Date 125,902,500.00 Bond Years from Delivery Date 125,902,500.00 Total Debt Service 13,478,087.50 Maximum Annual Debt Service 1,690,000.00 Average Annual Debt Service 668,334.92 Underwriter's Fees(per$1000) Average Takedown 6.500000 Other Fee Total Underwriter's Discount 6.500000 Bid Price 100.494909 Par Average Average PV of 1 bp Bond Component Value Price Coupon Life change Serial Bonds 9,885,000.00 101.145 2.854% 12.737 8,693.95 9,885,000.00 12.737 8,693.95 All-In Arbitrage TIC TIC Yield Par Value 9,885,000.00 9,885,000.00 9,885,000.00 +Accrued Interest 113,174.30 113,174.30 +Premium(Discount) 113,174.30 -Underwriter's Discount -64,252.50 -64,252.50 -Cost of Issuance Expense -60,000.00 -Other Amounts -49,425.00 -49,425.00 -49,425.00 Target Value 9,884,496.80 9,824,496.80 9,948,749.30 Target Date 09/01/2012 09/01/2012 09/01/2012 Yield 2.831303% 2.889570% 2.769418% Page 4 Jul 16,2012 1:13 pm STIFEL N ICOLAUS AGGREGATE DEBT SERVICE City of Aspen Sales Tax Revenue and Refunding Bonds,Series 2012 Sales Tax Revenue Sales Tax Refunding Revenue Series 2005 Series 2009 Period Bonds,Series Bonds, Unrefunded Refunding Refunding Aggregate Ending 2012 Series 2012 Bonds Bonds Bonds Debt Service 11/01/2012 359,493.75 1,011,693.75 711,218.75 2,082,406.25 11/01/2013 213,012.50 182,000 615,237.50 1,179,587.50 819,287.50 3,009,125.00 11/01/2014 213,025.00 156,000 611,637.50 1,179,387.50 816,787.50 2,976,837.50 11/01/2015 210,925.00 156,000 607,937.50 1,181,643.76 821,387.50 2,977,893.76 11/01/2016 208,825.00 156,000 604,187.50 1,177,250.00 823,087.50 2,969,350.00 11/01/2017 211,725.00 156,000 600,187.50 1,180,225.00 821,087.50 2,969,225.00 11/01/2018 209,525.00 156,000 596,187.50 1,178,225.00 821,975.00 2,961,912.50 11/01/2019 882,325.00 156,000 492,187.50 651,000.00 815,525.00 2,997,037.50 11/01/2020 1,531,625.00 156,000 492,187.50 11/01/2021 1,534,000.00 156,000 492,187.50 821,800.00 2,998,587.50 11/01/2022 486,875.00 156,000 2,057,187.50 816,400.00 2,998,587.50 11/01/2023 156,000 2,880,025.00 2,700,062.50 11/01/2024 156,000 2,880,350.00 3,036,025.00 11/01/2025 156,000 2,883,850.00 3,036,350.00 11/01/2026 816,000 3,039,850.00 11/01/2027 816,200 816,000.00 11/01/2028 815,800 816,200.00 11/01/2029 819,800 815,800.00 11/01/2030 818,050 819,800.00 11/01/2031 820,700 818,050.00 11/01/2032 815,675 820,700.00 815,675.00 5,701,862.50 7,776,225 16,172,843.75 8,739,012.51 8,088,556.25 46,478,500.01 Jul 16,2012 1:13 pm Page 5 STIFEL NICOLAUS SOURCES AND USES OF FUNDS City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Sources: Bond Proceeds: 4,815,000.00 Par Amount 94,218.45 Premium 4,909,218.45 Other Sources of Funds: 106,706.25 Bond Payment Due 11/1/12 5,015,924.70 Uses: Refunding Escrow Deposits: 0.41 Cash Deposit 4,927,644.00 SLGS Purchases 4,927,644.41 Delivery Date Expenses: 29,226.10 Cost of Issuance 2299,226.10 Underwriter's Discount 34,297.50 Reserve Fund Surety 84,598.60 Other Uses of Funds: 3,681.69 Additional Proceeds 5,015,924.70 Page 6 Jul 16,2012 1:13 pm STIFEL NICOLAUS BOND DEBT SERVICE City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Period Annual Ending Principal Coupon Interest Debt Service Debt Service 05/01/2013 73,150.00 73,150.00 11/01/2013 85,000 2.000% 54,862.50 139,862.50 213,012.50 05/01/2014 54,012.50 54,012.50 11/01/2014 105,000 2.000% 54,012.50 159,012.50 213,025.00 05/01/2015 52,962.50 52,962.50 11/01/2015 105,000 2.000% 52,962.50 157,962.50 210,925.00 05/01/2016 51,912.50 51,912.50 11/01/2016 105,000 2.000% 51,912.50 156,912.50 208,825.00 05/01/2017 50,862.50 50,862.50 11/01/2017 110,000 2.000% 50,862.50 160,862.50 211,725.00 05/01/2018 49,762.50 49,762.50 11/01/2018 110,000 2.000% 49,762.50 159,762.50 209,525.00 05/01/2019 48,662.50 48,662.50 11/01/2019 785,000 2.000% 48,662.50 833,662.50 882,325.00 05/01/2020 40,812.50 40,812.50 11/01/2020 1,450,000 2.250% 40,812.50 1,490,812.50 1,531,625.00 05/01/2021 24,500.00 24,500.00 11/01/2021 1,485,000 2.500% 24,500.00 1,509,500.00 1,534,000.00 05/01/2022 5,937.50 5,937.50 11/01/2022 475,000 2.500% 5,937.50 480,937.50 486,875.00 4,815,000 886,862.50 5,701,862.50 5,701,862.50 Jul 16,2012 1:13 pm Page 7 STIFEL NICOLAUS BOND PRICING City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Premium Maturity Price (-Discount) Bond Component Date Amount Rate Yield Serial Bonds: 11/01/2013 85,000 2.000% 0.600% 101.624 1,380.40 11/01/2014 105,000 2.000% 0.700% 102.790 2,929.50 11/01/2015 105,000 2.000% 0.880% 103.489 3,663.45 11/01/2016 105,000 2.000% 1.000% 104.070 4,057.90 11/01/2017 110,000 2.000% 1.260% 103.689 3,029.40 11/01/2018 110,000 2.000% 1.530% 102.754 11/01/2019 785,000 2.000% 1.760% 101.608 12,622.80 11/01/2020 1,450,000 2.250% 2.020% 101.722 24,969.00 11/01/2021 1,485,000 2.500% 2.230% 102.225 33,041.25 11/01/2022 475,000 2.500% 2.400% 100.895 4,251.25 4,815,000 94,218.45 Dated Date 09/01/2012 Delivery Date 09/01/2012 First Coupon 05/01/2013 Par Amount 4,815,000.00 Premium 94,218.45 Production 4,909,218.45 101.956769% Underwriter's Discount -31,297.50 -0.650000% Purchase Price 4,877,920.95 101.306769% Accrued Interest Net Proceeds 4,877,920.95 Page 8 Jul 16,2012 1:13 pm STIFEL NICOLAUS SAVINGS City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Prior Prior Prior Refunding Present Value to 09/01/2012 Date Debt Service Receipts Net Cash Flow Debt Service Savings Savings @ 2.7694184% 09/01/2012 106,706.25 -106,706.25 -106,706.25 11/01/2012 106,706.25 106,218.22 106,706.25 106,706.25 106,218.22 05/01/2013 106,706.25 106,706.25 73,150.00 33,556.25 11/01/2013 106,706.25 106,706.25 139,862.50 -33,156.25 400.00 -32,109.21 05/01/2014 106,706.25 106,706.25 54,012.50 52,693.75 11/01/2014 106,706.25 106,706.25 159,012.50 -52,306.25 387.50 -49,280.25 05/01/2015 106,706.25 106,706.25 52,962.50 53,743.75 11/01/2015 106,706.25 106,706.25 157,962.50 -51,256.25 2,487.50 -46,980.89 05/01/2016 106,706.25 106,706.25 51,912.50 54,793.75 11/01/2016 106,706.25 106,706.25 156,912.50 -50,206.25 4,587.50 -44,770.02 05/01/2017 106,706.25 106,706.25 50,862.50 55,843.75 11/01/2017 106,706.25 49,116.98 106,706.25 160,862.50 -54,156.25 1,687.50 -46,982.18 05/01/2018 106,706.25 106,706.25 49,762.50 56,943.75 11/01/2018 106,706.25 44,779.19 106,706.25 159,762.50 -53,056.25 3,887.50 -44,779.19 05/01/2019 106,706.25 106,706.25 48,662.50 58,043.75 11/01/2019 776,706.25 776,706.25 833,662.50 -56,956.25 1,087.50 -46,766.64 05/01/2020 91,631.25 91,631.25 40,812.50 50,818.75 11/01/2020 1,441,631.25 1,441,631.25 1,490,812.50 -49,181.25 1,637.50 -39,287.05 05/01/2021 57,881.25 57,881.25 24,500.00 33,381.25 11/01/2021 1,477,881.25 1,477,881.25 1,509,500.00 -31,618.75 1,762.50 -24,5772.51 05/01/2022 20,606.25 20,606.25 5,937.50 14,668.75 11/01/2022 805,606.25 11,244.12 805,606.25 480,937.50 324,668.75 339,337.50 2455,471.16 6,165,831.25 106,706.25 6,059,125.00 5,701,862.50 357,262.50 357,262.50 277,079.98 Savings Summary PV of savings from cash flow 277,079.98 Plus:Refunding funds on hand 3,681.69 Net PV Savings 280,761.67 1u116,2012 1:13 pm Page 9 STIFEL NICOLAUS SUMMARY OF REFUNDING RESULTS City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Arbitrage yield 2.769418% Escrow yield 0.304579% Bond Par Amount 4,815,000.00 True Interest Cost 2.203827% Net Interest Cost 2.216892% Average Coupon 2.318443% Average Life 7.944 Par amount of refunded bonds 4,225,000.00 Average coupon of refunded bonds 5.077355% Average life of refunded bonds 8.716 PV of prior debt to 09/01/2012 @ 2.769418% 5,044,584.35 Net PV Savings 280,761.67 Percentage savings of refunded bonds 6.645247% Percentage savings of refunding bonds 5.830980% Page 10 Jul 16,2012 1:13 pm STIFEL N ICOLAUS SUMMARY OF BONDS REFUNDED City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Maturity Interest Par Call Call Bond Date Rate Amount Date Price Sales Tax Revenue Bonds,Series 2005B,2005: SERIALS 11/01/2019 4.500% 670,000.00 11/01/2015 100.000 11/01/2020 5.000% 1,350,000.00 11/01/2015 100.000 11/01/2021 5.250% 1,420,000.00 11/01/2015 100.000 11/01/2022 5.250% 785,000.00 11/01/2015 100.000 4,225,000.00 Jul 16,2012 1:13 pm Page 11 STIFEL NICOLAUS PRIOR BOND DEBT SERVICE City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Annual Period Ending Principal Coupon Interest Debt Service Debt Service 11/01/2012 106,706.25 106,706.25 106,706.25 05/01/2013 106,706.25 106,706.25 11/01/2013 106,706.25 106,706.25 213,412.50 05/01/2014 106,706.25 106,706.25 11/01/2014 106,706.25 106,706.25 213,412.50 05/01/2015 106,706.25 106,706.25 106,706.25 106,706.25 213,412.50 11/01/2015 05/01/2016 106,706.25 106,706.25 11/01/2016 106,706.25 106,706.25 213,412.50 05/01/2017 106,706.25 106,706.25 106,706.25 106,706.25 213,412.50 11/01/2017 05/01/2018 106,706.25 106,706.25 11/01/2018 106,706.25 106,706.25 213,412.50 05/01/2019 106,706.25 106,706.25 11/01/2019 670,000 4.500% 106,706.25 776,706.25 883,412.50 05/01/2020 91,631.25 91,631.25 11/01/2020 1,350,000 5.000% 91,631.25 1,441,631.25 1,533,262.50 05/01/2021 57,881.25 57,881.25 11/01/2021 1,420,000 5.250% 57,881.25 1,477,881.25 1,535,762.50 05/01/2022 20,606.25 20,606.25 11/01/2022 785,000 5.250% 20,606.25 805,606.25 826,212.50 4,225,000 1,940,831.25 6,165,831.25 6,165,831.25 Page 12 Jul 16,2012 1:13 pm STIFEL N 1COLAUS ESCROW REQUIREMENTS City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Period Principal Ending Interest Redeemed Total 11/01/2012 106,706.25 106,706.25 05/01/2013 106,706.25 106,706.25 11/01/2013 106,706.25 106,706.25 05/01/2014 106,706.25 106,706.25 11/01/2014 106,706.25 106,706.25 05/01/2015 106,706.25 106,706.25 11/01/2015 106,706.25 4,225,000.00 4,331,706.25 746,943.75 4,225,000.00 4,971,943.75 Jul 16,2012 1:13 pm Page 13 STIFEL NICOLAUS UNREFUNDED BOND DEBT SERVICE City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Annual Period Ending Principal Coupon Interest Debt Service Debt Service 11/01/2012 100,000 3.750% 259,493.75 359,493.75 359,493.75 05/01/2013 257,618.75 257,618.75 11/01/2013 100,000 3.600% 257,618.75 357,618.75 615,237.50 05/01/2014 255,818.75 255,818.75 11/01/2014 100,000 3.700% 255,818.75 355,818.75 611,637.50 05/01/2015 253,968.75 253,968.75 11/01/2015 100,000 3.750% 253,968.75 353,968.75 607,937.50 05/01/2016 252,093.75 252,093.75 11/01/2016 100,000 4.000% 252,093.75 352,093.75 604,187.50 05/01/2017 250,093.75 250,093.75 11/01/2017 100,000 4.000% 250,093.75 350,093.75 600,187.50 05/01/2018 248,093.75 248,093.75 11/01/2018 100,000 4.000% 248,093.75 348,093.75 596,187.50 05/01/2019 246,093.75 246,093.75 246,093.75 246,093.75 492,187.50 11/01/2019 05/01/2020 246,093.75 246,093.75 11/01/2020 246,093.75 246,093.75 492,187.50 05/01/2021 246,093.75 246,093.75 11/01/2021 246,093.75 246,093.75 492,187.50 05/01/2022 246,093.75 246,093.75 11/01/2022 1,565,000 5.250% 246,093.75 1,811,093.75 2,057,187.50 05/01/2023 205,012.50 205,012.50 11/01/2023 2,470,000 5.250% 205,012.50 2,675,012.50 2,880,025.00 05/01/2024 140,175.00 140,175.00 11/01/2024 2,600,000 5.250% 140,175.00 2,740,175.00 2,880,350.00 05/01/2025 71,925.00 71,925.00 11/01/2025 2,740,000 5.250% 71,925.00 2,811,925.00 2,883,850.00 10,075,000 6,097,843.75 16,172,843.75 16,172,843.75 Page 14 Jul 16,2012 1:13 pm STIFEL NICOLAUS BOND SUMMARY STATISTICS City of Aspen Sales Tax Revenue Refunding Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Last Maturity 11/01/2022 Arbitrage Yield 2.769418% True Interest Cost(TIC) 2.203827% Net Interest Cost(NIC) 2.216892% All In TIC 2.287726% Average Coupon 2.318443% Average Life(years) 7.944 Duration of Issue(years) 7.282 Par Amount 4,815,000.00 Bond Proceeds 4,909,218.45 Total Interest 886,862.50 Net Interest 823,941.55 Bond Years from Dated Date 38,252,500.00 Bond Years from Delivery Date 38,252,500.00 Total Debt Service 5,701,862.50 Maximum Annual Debt Service 1,534,000.00 Average Annual Debt Service 560,838.93 Underwriter's Fees(per$1000) Average Takedown Other Fee 6.500000 Total Underwriter's Discount 6.500000 Bid Price 101.306769 Par Average Average PV of 1 bp Bond Component Value Price Coupon Life change Serial Bonds 4,815,000.00 101.957 2.318% 7.944 3,527.00 4,815,000.00 7.944 3,527.00 All-In Arbitrage TIC TIC Yield Par Value 4,815,000.00 4,815,000.00 +Accrued Interest 4,815,000.00 +Premium(Discount) 94,218.45 94,218.45 -Underwriter's Discount 94,218.45 -31,297.50 -31,297.50 -Cost of Issuance Expense -29,226.10 -Other Amounts -24,075.00 -24,075.00 -24,075.00 Target Value 4,853,845.95 4,824,619.85 4,885,143.45 Target Date 09/01/2012 Yield 2.203827% 09/01/2012 2.287726% 2.769 18% 2.769418/o Jul 16,2012 1:13 pm Page 15 STIFEL NICOLAUS SOURCES AND USES OF FUNDS City of Aspen Sales Tax Revenue Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Sources: Bond Proceeds: 5,070,000.00 Par Amount 0,000.00 Original Issue Discount 27,119.40 Premium 5,088,955.85 Uses: Project Fund Deposits: 4,995,000.00 Project Construction Fund Delivery Date Expenses: 30,773.90 Cost of Issuance 32,955.00 Underwriter's Discount 25,350.00 Reserve Fund Surety 89,078.90 Other Uses of Funds: q 876.95 Additional Proceeds 5,088,955.85 Page 16 Jul 16,2012 1:13 pm STIFEL NICOLAUS BOND DEBT SERVICE City of Aspen Sales Tax Revenue Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Period Annual Debt Ending Principal Coupon Interest Debt Service Service 05/01/2013 104,000.00 104,000.00 11/01/2013 78,000.00 78,000.00 182,000 05/01/2014 78,000.00 78,000.00 11/01/2014 05/01/2015 78,000.00 78,000.00 156,000 78,000.00 78,000.00 11/01/2015 78,000.00 78,000.00 156,000 05/01/2016 78,000.00 78,000.00 11/01/2016 78,000.00 78,000.00 156,000 05/01/2017 78,000.00 78,000.00 11/01/2017 78,000.00 78,000.00 156,000 05/01/2018 78,000.00 78,000.00 11/01/2018 78,000.00 78,000.00 156,000 05/01/2019 78,000.00 78,000.00 11/01/2019 78,000.00 78,000.00 156,000 05/01/2020 78,000.00 78,000.00 11/01/2020 78,000.00 78,000.00 156,000 05/01/2021 78,000.00 78,000.00 11/01/2021 78,000.00 78,000.00 156,000 05/01/2022 78,000.00 78,000.00 11/01/2022 78,000.00 78,000.00 156,000 05/01/2023 78,000.00 78,000.00 11/01/2023 78,000.00 78,000.00 156,000 05/01/2024 78,000.00 78,000.00 11/01/2024 78,000.00 78,000.00 156,000 05/01/2025 78,000.00 78,000.00 11/01/2025 78,000.00 78,000.00 156,000 05/01/2026 78,000.00 78,000.00 11/01/2026 660,000 3.000% 78,000.00 738,000.00 816,000 05/01/2027 68,100.00 68,100.00 11/01/2027 680,000 3.000% 68,100.00 748,100.00 816,200 05/01/2028 57,900.00 57,900.00 11/01/2028 700,000 3.000% 57,900.00 757,900.00 815,800 05/01/2029 47,400.00 47,400.00 11/01/2029 725,000 3.000% 47,400.00 772,400.00 819,800 05/01/2030 36,525.00 36,525.00 11/01/2030 745,000 3.000% 36,525.00 781,525.00 818,050 05/01/2031 25,350.00 25,350.00 11/01/2031 770,000 3.250% 25,350.00 795,350.00 820,700 05/01/2032 12,837.50 12,837.50 11/01/2032 790,000 3.250% 12,837.50 802,837.50 815,675 5,070,000 2,706,225.00 7,776,225.00 7,776,225 Jul 16,2012 1:13 pm Page 17 STI FEL NICOLAUS BOND PRICING City of Aspen Sales Tax Revenue Bonds,Series 2012 Yield to Call Call Premium Maturity Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount Serial Bonds: 11/01/2026 660,000 3.000% 2.890% 100.967 C 2.916% 12/01/2022 100.000 6,382.20 11/01/2027 680,000 3.000% 2.920% 100.701 C 2.942% 12/01/2022 100.000 4,766.80 11/01/2028 700,000 3.000% 2.970% 100.260 C 2.979% 12/01/2022 100.000 1820.000 11/01/2029 725,000 3.000% 3.020% 99.731 -6,213.30 11/01/2030 745,000 3.000% 3.060% 99.166 11/01/2031 770,000 3.250% 3.110% 101.217 C 3.165% 12/01/2022 100.000 9,370.90 11/01/2032 790,000 3.250% 3.180% 100.605 C 3.209% 12/01/2022 100.000 4,779.50 18,955.85 5,070,000 Dated Date 09/01/2012 Delivery Date 09/01/2012 First Coupon 05/01/2013 Par Amount 5,070,000.00 Premium 18,955.85 Production 5,088,955.85 100.373883% Underwriter's Discount -32,955.00 -0.650000% Purchase Price 5,056,000.85 99.723883% Accrued Interest Net Proceeds 5,056,000.85 Page 18 Jul 16,2012 1:13 pm STIFEL N ICOLAUS BOND SUMMARY STATISTICS City of Aspen Sales Tax Revenue Bonds,Series 2012 Dated Date 09/01/2012 Delivery Date 09/01/2012 Last Maturity 11/01/2032 Arbitrage Yield 2.769418% True Interest Cost(TIC) 3.143155% Net Interest Cost(NIC) 3.132429% All-In TIC 3.189405% Average Coupon 3.087536% Average Life(years) 17.288 Duration of Issue(years) 13.485 Par Amount 5,070,000.00 Bond Proceeds 5,088,955.85 Total Interest 2,706,225.00 Net Interest 2,720,224.15 Bond Years from Dated Date 87,650,000.00 Bond Years from Delivery Date 87,650,000.00 Total Debt Service 7,776,225.00 Maximum Annual Debt Service 820,700.00 Average Annual Debt Service 385,597.93 Underwriter's Fees(per$1000) Average Takedown Other Fee 6.500000 Total Underwriter's Discount 6.500000 Bid Price 99.723883 Par Average Average PV of 1 bp Bond Component Value Price Coupon Life change Serial Bonds 5,070,000.00 100.374 3.088% 17.288 5,166.95 5,070,000.00 17.288 5,166.95 All-In Arbitrage TIC TIC Yield Par Value 5,070,000.00 5,070,000.00 5,070,000.00 +Accrued Interest +Premium(Discount) 18,955.85 18,955.85 18,955.85 -Underwriter's Discount -32,955.00 -32,955.00 -Cost of Issuance Expense -30,773.90 -Other Amounts -25,350.00 -25,350.00 -25,350.00 Target Value 5,030,650.85 4,999,876.95 5,063,605.85 Target Date 09/01/2012 09/01/2012 09/01/2012 Yield 3.143155% 3.189405% 2.769418% Jul 16,2012 1:13 pm Page 19 STIFEL NICOLAUS a MEMORANDUM TO: Mayor and City Council FROM: Tyler A. Christoff, P.E., Senior Project Manager THRU: Trish Aragon, P.E., City Engineer DATE OF MEMO: July 24, 2012 MEETING DATE: July 31, 2012 RE: North Mill Street Corridor: Preferred Alternative SUMMARY: Staff seeks Council input regarding pedestrian, bicyclist, traffic safety, and Rio Grande Park interface design alternatives for the North Mill Street corridor. Staff recommends proceeding to final design and pursuing construction on Zone 3 adjacent to Rio Grande Park. BACKGROUND: The City of Aspen contracted with JR Engineering and DHM to provide traffic engineering services and a complete streets planning effort for the North Mill Street corridor and surrounding neighborhood. The design team inventoried existing facilities, surveyed the corridor, and solicited input from the citizens in order to produce increasingly refined design alternatives. IThis project has utilized professional engineering and landscape architecture services to develop and determine the feasibility and implementation of pedestrian crossings, streetscape improvements, bicycle lanes and traffic calming into the Mill Street Corridor. Once base data was obtained staff worked with our consultant team to draft three alternative designs for the corridor. These alternatives represented the ideals of the project's initial goals. Each design provided a differing compromise between infrastructure expense and impact to the traveling public. Staff solicited feedback on these three alternatives during numerous public events and through a third party run website. Staffs public outreach has included: • 2 project Open Houses, occurring March 7th 5-7pm in Council Chambers and May 23`d 5-7pm in Sister Cities • Attending and presenting design alternatives at the ACRA luncheon on April 5th • Online feedback using Open City Hall run by a third party administrator Peak Democracy • Attending the Transportation Open House June 26th and Bike to Work Day June 27th to display project information and receive feedback • Sharing the Preferred Design alternative with the Parks and Open Space Board during their July 12th meeting e DISCUSSION: Within the context of this project the City has found opportunities to: • Improve the City's pedestrian system by providing traffic calming. • Design improved pedestrian crossing infrastructure within corridor. • Integrate a bicycle lane into existing Right of Way, while increasing cyclist mobility for all users and continuing to grow Aspen as a bicycle friendly community. • Provide a positive pedestrian, bicyclist, and traffic interface along the corridor. • Update and enhance pedestrian and cyclist connections to surrounding neighborhoods, and trail systems. The design team identified 4 zones of distinct character along the corridor; as summarized below and in Attachment "A". The unique nature of Mill Street required design solutions tailored to fit the changing context of the corridor. Each zone was matched with a design solution that addressed the specific needs of the area while creating a uniform and logical treatment for the entire corridor. Attachment "A" depicts each zone and the proposed treatments for each section. Zone 1 Main Street to Bleeker Street Opportunities and Constraints: Urban Context, steep street grade, vehicular turning movements, numerous pedestrian crossings, interaction with a high volume state highway, transit stop, attached sidewalk. Public Feedback: Create usable bicycle interface with Main Street, provide a better pedestrian crossing at Bleeker Street, add more green space, preserve the library drop-off, and incorporate bike lanes into existing roadway Design Considerations: This segment is constrained by the existing building faces, creating width of 73'-6"building-to building. Additionally an area on the east side of the corridor is constrained by a 4'- wide raised planter. Removing one of the turn lanes will not impact the level of service of the Main Street intersection. This lane removal frees up space for bike lanes and pedestrian/streetscape enhancement. The Typical Preferred section is altered to include wider attached sidewalks and provides an opportunity to include bands of porous paving/street trees in areas adjacent to the curb while keeping a clear sidewalk zone along the buildings. Estimated Financial Implications of Preferred Alternative (Zone 1): $213,000 Zone 2 Bleeker Street to Rio Grande Place Opportunities and Constraints: Urban/Suburban context, steep street grade, interface with City parking lots/structure, Rio Grande Place turning movements, attached sidewalk Public Feedback: Provide a better pedestrian crossing at Bleeker Street, slow vehicular speeds on the hill, reduce vehicle, bicycle, pedestrian interactions, and incorporate bike lanes into existing roadway Design Considerations: This segment is also constrained by existing buildings, building access, and structured planters; resulting in a width, at its most constrained of 68'-2". The Typical Preferred section is altered to accommodate the traffic and bike lanes, keeping the sidewalk attached on the west side of the street. On the east side of the street there is room for a planter strip/bioswale; this condition becomes more flexible north of the bank building, adjacent to the City parking lot. Estimated Financial Implications of Preferred Alternative (Zone 2): $160,000 Zone 3 Rio Grande Place to Puppy Smith Street Opportunities and Constraints: Park/Commercial context, mid-block transit stop, mid-block crossing, Rio Grande Park interface, attached sidewalks Public Feedback: Incorporate better way-finding signage into the Park/corridor, move crosswalk to provide a more logical interface with Clarks Market/Bus Stop, create a bus pullout, slow vehicular speed, create pedestrian awareness at midblock crossing, and incorporate bike lanes into existing roadway. Design Considerations: This segment includes the greatest variability in the existing asphalt width, but also has the best opportunities for realizing the full Typical Preferred cross-section. Ultimately, the total width of the street section will be adjusted to respond to existing vegetation, building access points, bicycle lanes and other priorities. The interface with Rio Grande Park is another obvious consideration. Engineering and Park's Department staff have coordinated efforts to address the unique challenges of a Roadway/Park interface. A large attached sidewalk maintains preferred pathways to the midblock crossing, bus stop and park. Proposed Stormwater features create both a visual attraction as well as a utilitarian feature of the Park. Dwell space and interactive signage will encourage users to enjoy this great public space. Attachment `B" depicts this space in a three dimensional rendering. Estimated Financial Implications of Preferred Alternative (Zone 3): $321,000 Zone 4: Puppy Smith Street to Gibson Avenue Opportunities and Constraints: Commercial and residential context, connections to trail system, vehicular turning movements, interface with River, complex topography Public Feedback: Improve pedestrian crossings on Puppy Smith, increase pedestrian connectivity on Mill and Puppy Smith, incorporate better way-finding signage into the corridor, slow vehicular speeds and incorporate bike lanes into existing roadway Design Considerations: This segment also has a great degree of variability in the asphalt width. By reducing the overall asphalt width and adjusting the Typical Preferred section to two traffic lanes we are able to implement bicycle lanes, bioswales/street tree plantings, as well as buffering the west sidewalk from the SCI west parking lots. The total width of the street section will be adjusted to respond topographical features on the eastern side of the corridor. Estimated Financial Implications of Preferred Alternative (Zone 4): $191,000 FINANCIAL IMPLICATIONS: Due to the unique nature of the corridor, specific safety concerns, and coordination with adjacent projects, staff feels that a strategic, phased implementation schedule will provide the most benefit to the public. • Fall 2012-2013 Implementation of Zone 3 -- Rio Grande Place to Puppy Smith Road. This schedule corresponds to the City's Parks Departments scheduled phase II upgrades to Rio Grande Park. Zone 3 also includes a misaligned midblock crossing, bus stop and large pedestrian, traffic and cyclist volumes. City Staff received the highest amount of public comment regarding this zone. • 2013-2014 Implementation of Zone 1 -- Main Street to Bleeker Street. This schedule corresponds to CDOT's scheduled replacement of Mill/Main Street traffic signals and the potential Library/Galena Plaza project. Recommended treatments would be coordinated with the CDOT replacement of the Main Street traffic signal poles and other adjacent projects. The potential for signal optimization that addresses multimodal traffic needs has been discussed as part of the upgrades. • 2015 Implementation of Zones 2 and 4—Bleeker Street to Rio Grande Place and Puppy Smith Road to Gibson Avenue. Zones 2 and 4 address important connectivity issues associated with Mill Street corridor. These zones currently have been phased for implementation last due to staff's priority of safety before connectivity; however these two zones are critical to the overall success of this effort. It should be noted that a phased implementation, while beneficial, will not produce a fully connected or uniform corridor until all four zones are completed. Funding Allocated Mill Street Project (Acct# 000.15.94077) $335,000.00 Current Expenditures Mill Street Complete Streets (Survey, Planning, Design, Public Process and Project Management) $114,960.00 Funding Available (2012) $220,040.00 Proposed Expenditures Zone 1 —(proposed 2013-2014) $213,000.00 Zone 2 - (proposed 2015) $160,000.00 Zone 3 —(proposed 2012-2013) $321,000.00 Zone 4 - (proposed 2015) $191,000.00 Total Proposed Expenditures 2012-2015 $885,000.00 Additional Funding required to complete Preferred Option (2013-2015) $664,960.00 CITY MANAGER COMMENTS: Attachment A: North Mill Street Preferred Alternative Attachment B: Three Dimensional Rendering of Rio Grande Park/Mill Street Interface , I. r......_„...._.,,..".„...,...„ . , . . ,1.....,,.. A ....:0„, ,. ... , . ... . ....... .. _ ._ • • 40. • tf r ,,. ,�o� i I, ig • DII ( 4 , k •.. ,r,. ' I 1, Q. , 1 y,. I.r rN I IIC"I"VI : 1•h 3003 Ntltld ).y � f�, 30NVtl00ttl - r,y y �. IME .. 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