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HomeMy WebLinkAboutagenda.council.worksession.20130806 CITY COUNCIL WORK SESSION August 06, 2013 4:00 PM, City Council Chambers MEETING AGENDA I. Board Interviews II. Burlingame Solar Project Proposal P1 I. P2 I. P3 I. P4 I. P5 I. P6 I. P7 I. P8 I. P9 I. P1 0 I. P1 1 I. P1 2 I. P1 3 I. P1 4 I. P1 5 I. P1 6 I. P1 7 I. P1 8 I. P1 9 I. P2 0 I. P2 1 I. P2 2 I. P2 3 I. P2 4 I. P2 5 I. P2 6 I. P2 7 I. P2 8 I. P2 9 I. P3 0 I. Page 1 MEMORANDUM TO: Mayor and City Council FROM: Chris Everson, Affordable Housing Project Manager DATE OF MEMO: August 2, 2013 MEETING DATE: August 6, 2013 RE: Burlingame Phase II Solar Hot Water Preheat for Buildings 1-4 REQUEST OF COUNCIL: Staff requests Council approval to add solar hot water preheat systems to Burlingame Phase II buildings 1 through 4, which are currently under construction. BACKGROUND/DISCUSSION: During the Land Use approval process for the Burlingame Phase II affordable housing development, discussion about the inclusion of environmental sustainability features was based on a prioritization of investments which would provide the most “bang for the buck”. After working with a number of consultants and industry experts, that priority and the associated inclusion of design features are shown below: 1. Reduce Energy Use  Highly-insulated, low air infiltration building envelopes with triple-pane insulating windows and dual-purposed high efficiency boilers in each unit 2. Reduce Water Use  Stormwater collection pond with recirculating raw/re-use water source for irrigation 3. Healthy Indoor Environment  Heat recovery ventilation system, vented range hoods, natural ventilation 4. Efficient Durable Construction  High density, small efficient units, durable high- quality construction 5. Protect and Restore the Site  On-site open space, public parks, integration with natural surroundings 6. Energy Generation  Commitment to be “solar ready” In an effort to try to responsibly include working solar systems, the project team explored alternatives to try to share the financial burden of up-front investment in solar systems. Partnership and grant opportunities were sought, and for numerous reasons, the only option which seemed to fit was the use of a CORE Green Key Grant. The attached CORE Green Key Grant application was submitted on May 1, 2013 and requests $150,000.00 in grant funding, which would cover 50% of the up-front costs. Council is herein asked to match that grant funding from the City’s 150 Housing Development Fund so that the proposed solar system may be immediately included in the construction of buildings 1 through 4 and so that the current schedule may be maintained. P31 II. Page 2 It is staff’s understanding that the Burlingame Phase II CORE Green Key Grant application for solar thermal systems has cleared numerous approval hurdles at CORE and will be recommended by CORE for Council approval on August 26, 2013. Although solar p/v systems were considered, solar hot water preheat systems are a better fit for use with the natural-gas-fueled high-efficiency boilers in each unit. The systems proposed aim to offset 50% of the natural gas usage in each unit, which naturally ties together priorities #6 and #1 on the list of priorities shown above. For the 48 units in buildings 1 through 4, the proposed solar hot water preheat systems are designed to offset all energy use by approximately a third and reduce CO2 emissions by about 25 metric tons per year. This is comparable to taking 5 average cars of the road each year. The solar hot water preheat system design plans and specifications are not yet construction- ready, which is the reason this request is coming to Council in advance of the final CORE grant approval. The project team needs to complete the final construction drawings for the systems so that if Council approves the CORE grant on August 26, we may immediately initiate construction in order to maintain the current schedule. FINANCIAL/BUDGET IMPACTS: There are two City Council meetings this month that are related to funding for this proposal. On August 26, CORE will request final grant approval from Council (the grant will also need to be approved by the Board of County Commissioners). Also, a consent item on the August 12 City Council regular meeting agenda will request City Council approval of a number of Burlingame Phase II construction change orders. Those change orders will be explained in detail in the August 12 memo. Like the matching funds needed for the proposed solar hot water preheat systems, the August 12 construction change orders would be funded from the project’s contingency funding which is already included in the approved 2013 project budget. The updated project budget attached to this memo includes the August 12 change orders as well as the matching funds needed to support this proposal. This demonstrates that the proposed solar hot water preheat systems fit within the existing 2013 budget, and will not require any requests of Council for “budget increases”. The remaining 2013 project contingency is about $550,000 (about 80% of the original 2013 contingency amount budgeted), which should be more than enough to complete construction of buildings 1 through 4. RECOMMENDED ACTION: Staff believes that the solar hot water preheat systems as proposed are simultaneously responsible to the environment, to the project budget, to the future homeowners at Burlingame Phase II and to the Aspen/Pitkin County community as a whole, thus Council approval is recommended. If Council provides approval today, the project team will immediately initiate completion of the construction plans for the proposed solar hot water preheat systems and will await final Council approval of the CORE grant for initiation of construction of the systems. ATTACHMENTS: Exhibit A: Updated detailed project budget Exhibit B: CORE Green Key Grant Application, Burlingame Phase II solar hot water preheat P32 II. Burlingame Ranch Phase IIA (Buildings 1‐4 [48 units] plus 30% Remaining A/I) 2013 Detailed Budget ‐ Planned vs Actual rev. July 31, 2013 ce OriginalUPDATED SOURCESNovember 201231‐Jul‐13Variance 2012 Carry‐Forward Balance 5,058,972$            4,611,830$               (447,142)$               2013 City Council Budget Approval 17,814,980$          17,814,980$           ‐$                         Total Sources 22,873,952$          22,426,810$           (447,142)$               USES A.Construction ‐ GC / GMP ‐ Haselden Construction 20,198,348$          19,272,211$           (926,137)$               Haselden Access/Infrastructure Deferred Work 3,458,972$            2,358,556$               (1,100,416)$            A/I Change Order Costs through CO#29 104,686$                  104,686$                 Haselden 2013 Phase 2ai Vertical Construction GMP 16,879,376$          16,397,364$           (482,012)$               City of Aspen Parks Contribution (pumps/pumphouse)(140,000)$              deferred to 2014 140,000$                 Vertical Change Order Costs through #113 261,605$                  261,605$                  Potential Cost for Solar Thermal System 150,000$                  150,000$                 B. Construction ‐ Developer Responsibilities (City of Aspen)350,000$               615,634$                  265,634$                Offsites Sunk Mitigation Sunk Offsite Storm Sewer Site Gas Supply, Electrical Design, Utility Oversight 3,670$                      3,670$                     Site Elect Underground 273,277$                  273,277$                 Site Elect Supply ‐$                          ‐$                         Site Sanitary Line ‐$                          ‐$                         Owners OCIP 350,000$               338,687$                  (11,314)$                  C. Soft Costs 1,625,601$            1,988,037$              362,436$                Design 2012 Design Amendment #15 to #19 ‐$                          ‐$                         Administrative Services COA PM 150,000$               197,000$                  47,000$                   Legal 20,000$                  20,000$                    ‐$                         Presales 20,000$                  20,000$                    ‐$                         Owner's Agent Construction PM 430,000$               428,740$                  (1,260)$                    IPD Design Team CA (+ 2013 design amendments)300,000$               390,594$                  90,594$                   CxA Constr Phase 50,000$                  95,000$                    45,000$                   Enhanced Construction Oversight 40,000$                  25,041$                    (14,959)$                  Quality Assurance Consultant 40,000$                  74,925$                    34,925$                   Professional Services Materials Testing Geotech (inc materials testing)20,000$                  45,641$                    25,641$                   Survey 20,000$                  46,250$                    26,250$                   Medium voltage electrical oversight 13,880$                    13,880$                   Fees Sewer Tap Fee 227,907$               250,410$                  22,503$                   Water Tap Fee ‐ waived Parks Impact Fee ‐ waived TDM Impact Fee ‐ when buildings online 47,808$                  54,780$                    6,972$                     School Impact Fee ‐ when buildings online 57,386$                  65,486$                    8,100$                     Road Impact Fee ‐ n/a only for Pitkin County Permit Building Permit Fee 80,000$                  63,160$                    (16,840)$                  Stormwater Fee ‐ waived Land Use Fee Home Sales Fee HOA Setup 100,000$               100,000$                  ‐$                         Burlingame Phase I Parking Study & Engineering ‐$                        74,630$                    74,630$                   Other Temp Power 22,500$                  22,500$                    ‐$                         D. Contingencies 700,003$               550,929$                  (149,075)$               2013 Contingency 700,003$                550,929$                  (149,075)$               Total Uses (A + B + C + D)22,873,952$          22,426,810$           (447,142)$               Page 1 of 1 P33 II. 130 South Galena Street ∙ Aspen, Colorado 81611 ∙ Phone 970.920.5000 ∙ Fax 970.920.5197 www.aspenpitkin.com April 26, 2013 Chris Everson Affordable Housing Project Manager City of Aspen 130 South Galena Street Aspen, CO 81611 Ms. Mona Newton, Mr. Jason Haber and CORE Board of Trustees Community Office for Resource Efficiency (CORE) PO Box 9707 Aspen, CO 81612 Re: CORE Green Key Grant Application, Solar Thermal for Burlingame Phase II Affordable Housing Dear Ms. Newton, Mr. Haber and CORE Board of Trustees: After a five-year process of public engagement and collaborative design, the City of Aspen has commenced construction on the first four buildings of Phase II of the Burlingame Ranch affordable housing development as of April 1, 2013. The project is located at the end of Harmony Road, across from Buttermilk Mountain, in Aspen and consists of (48) “for-sale” deed restricted, affordable housing units. The current construction schedule targets (27) housing units available in December 2013 and (21) housing units available in January 2014. Currently, (43) of the (48) units are reserved for purchase by qualified local workforce community members. Although future plans will create additional units at the Burlingame site, the enclosed application relates specifically to the (48) units which are currently under construction. The Burlingame Phase II buildings are designed to exceed the 2009 International Energy Code by approximately 40%, but solar thermal hot water preheat systems are not currently in the plans due to budgetary constraints. Constructing the solar thermal systems in the initial construction would ensure that the systems are constructed and the ongoing benefits immediately initiated. City staff feels that the inclusion of a renewable energy component into this project to significantly offset the use of natural gas (and associated impacts) increases the magnitude of ‘responsible development’ associated with what will be an important community asset. Please consider the enclosed Green Key Grant application so that the described solar thermal hot water preheat systems may be immediately incorporated into the current construction effort. CORE's contribution of Green Key funds would encourage the City to match these funds, making this project possible. Thank you very much for your consideration. Sincerely, Chris Everson Chris Everson Affordable Housing Project Manager chris.everson@cityofaspen.com P34 II. Solar Thermal Hot Water Preheat Systems for Burlingame Phase II Affordable Housing 2013 CORE Green Key Grant Application Solar Thermal for Burlingame Phase IIA(i) Affordable Housing I. Applicability to the Eligibility Guidelines and Requirements 1. Recipients: The City of Aspen is a local government entity, and the 2013 Burlingame Phase IIA(i) Affordable Housing Development Project will benefit residents of Pitkin County through a number of means described in this grant application. 2. Project Types: Inclusion of solar thermal systems in the 2013 Burlingame Phase IIA(i) Affordable Housing Development Project is of local significance and fulfills the objectives of the Renewable Energy Mitigation Program (REMP), which is to reduce environmental impacts and greenhouse gas emissions: Environmental benefit: The 2013 Burlingame Phase IIA(i) Affordable Housing Development Project has been designed to minimize environmental impacts with the following priorities:  Reduce energy use by creating highly insulated buildings which minimize air-leakage and maximize energy-efficiency with dual-purposed, high-efficiency, individually-metered boilers  Reduce the need for driving by providing convenient access to public transportation with the highest density of transit stops in Aspen and convenient access to biking and walking trails  Reduce water use with an irrigation system which recycles stormwater runoff and ditch water sources, mimics naturally-occurring runoff capture and water-quality treatment and recirculates naturally treated water  Build smaller and more efficiently by standardizing repeatable, optimal housing units and repeatable building “pods” using advanced construction techniques  Ensure durability by utilizing long-lasting construction components and assemblies  Maximize the use of energy-efficient components such as triple-pane low-e insulating windows, Energy Star appliances and LED & CFL lighting  Ensure a healthy indoor environment by providing indoor air quality management systems with heat exchangers to minimize energy loss  Current plans are ‘solar ready’ for renewable energy source opportunities such as solar thermal and solar p/v. Incorporation of solar thermal hot water preheat systems is contemplated herein. Benefits of solar thermal hot water preheat systems are further described below. Community assistance/affordable housing: The 2013 Burlingame Phase IIA(i) Affordable Housing Development Project is the first vertical construction mobilization of the City of Aspen’s Burlingame Phase II Affordable Housing Development. Phase IIA(i) will create (4) buildings containing (48) ‘for-sale’ affordable housing units. Currently, 90% of the units are reserved for purchase by qualified local workforce. Construction is currently in process as of April 1, 2013, and the current construction schedule will make (27) housing units available in December 2013 and (21) housing units available in January 2014. This application relates to the (48) units which are currently under construction. Future plans call for an additional (34) housing units available in late 2014 and into early 2015, and long range plans call for an additional (79) housing units available in 2020-2021. Page 1 of 11 P35 II. Solar Thermal Hot Water Preheat Systems for Burlingame Phase II Affordable Housing Cost-effectiveness: Aspen’s funding for affordable workforce housing occurs from publicly-approved tax revenue sources such as portions of Aspen’s Sales Tax and Real Estate Transfer Tax (RETT). The City of Aspen's affordable housing development efforts are subsidized through these tax revenue sources and the City of Aspen endeavors to balance the considerations of community, livability, quality and impacts to the environment and to public funding sources. The scale of public subsidies related to the development of affordable housing is a polarizing topic in the community. Any increase to public subsidies adds risk to the City’s ability to meet the future needs of the community thus any grant - funding received will mitigate the public subsidies which are necessary to responsibly create affordable housing and will help to ensure the City’s continued ability to meet the needs of the local workforce community. Leverage: The use of REMP funds for affordable housing for the local working community is likely one of the greatest forms of benefit that can be brought to Pitkin County residents while simultaneously further reducing environmental impacts that commuting loads place on the Roaring Fork Valley. Public visibility & education: The City of Aspen intends to apply for awards and visibility opportunities among many different disciplines with energy-efficiency at the top of the list, and potentially including renewable energy sources. The City of Aspen intends to hold up the design of Burlingame Phase II as a benchmark for the community - and to set a high standard for all future housing developments. By requiring of itself the same high standards that the City requires of private developers, and then by going the extra mile to establish a platinum standard in housing development, the City of Aspen is providing both an example to the community as well as a valuable community asset. Education of home owners and the overall Aspen community will not be limited to energy-efficiency and renewable energy systems, but will also relate to all of the project’s sustainability features mentioned above. Innovation and/or Unique Opportunity: A unique opportunity is available because Burlingame Phase II will feature three new public parks integrated into the housing site which will provide increased visibility to the housing development. Opportunities can be explored to add educational signage or placards in the public parks to describe the solar thermal hot water preheat systems used in the buildings to the mutual credit of CORE and the City of Aspen. Build markets: The structures designed for Burlingame Phase II achieve energy-efficiency through the creation of highly insulated building envelopes which minimize air leakage and include heat recovery ventilation systems. This allows for the use of a single, dual-purposed, high-efficiency, natural gas fueled boiler for both heating and domestic hot water in each unit. Because the natural gas fueled boilers in each housing unit are dual-purposed to provide both space heating and domestic hot water, the inclusion of solar thermal hot water preheat systems will maximize the mitigation of adverse impacts and significantly improve energy-efficiency levels. The solar thermal systems have not been funded for construction by Aspen City Council. The current plans which are being constructed are "solar ready" for both hot water preheat and p/v. For solar thermal hot water preheat, the current plans include blocking at south-facing roofs to mount panels, riser plumbing, space for tanks and redundant supply plumbing to each natural-gas-fueled boiler in every housing unit. So although the solar systems themselves have not yet been funded, there is a significant investment already in place. City staff is confident that a grant award to fund 50% of the remaining funds needed to build the solar thermal systems will be matched by City Council to make this happen as part of the current construction effort. If the housing is instead handed over to the HOA without the solar thermal systems already in place, it is unlikely to ever get built. 3. Grant Utilization and 4. Grant Dispersal: Any grant funding received will be used in 2013 and will be incorporated into the current construction effort, most likely incorporated via a design/build methodology so that it can completed in 2013 and can begin to provide returns immediately upon occupancy in December 2013 and January 2014. Page 2 of 11 P36 II. Solar Thermal Hot Water Preheat Systems for Burlingame Phase II Affordable Housing 5. Post award follow-up: The City of Aspen will submit a report to CORE highlighting verified accomplishment of the goals set forth in this grant request no later than six months after the project’s completion. II. Green Key Grant Application Name: The City of Aspen Contact: Chris Everson, Affordable Housing Project Manager Address: 130 South Galena Street, Aspen, CO 81611 Phone: (970)429-1834 Email: chris.everson@ci.aspen.co.us Project: Solar Thermal for Burlingame Phase IIA(i) Affordable Housing Organization Description: The City of Aspen, a Home Rule Municipality under Colorado law, is the county seat of Pitkin County. The mayor of Aspen plus an elected council of four members supervise the City's operation, which is managed on a day-to-day basis by the city manager with a staff of approximately 230 regular, full time employees. Project Summary: Addition of solar thermal hot water preheat systems in four buildings containing (48) affordable housing units which will eliminate approximately 25 metric tons of CO2 emissions each year. Project goals: The City of Aspen recently adopted the 2012 Aspen Area Community Plan which serves as a 10- year guiding document. Of the sixteen central themes described in the 2012 Aspen Area Community Plan, the following seven are directly relevant to this grant request:  Protect the natural ecosystems and scenic settings of mountains and rivers  Increase focus on environmental stewardship  Reevaluate the impacts of development on community character and quality of life  Manage the adverse impacts of development  Provide for a critical mass of year-round residents  Create a sustainable community that enables people to live their lives here  Emphasize the quality and livability of affordable housing Actual Project Start Date: April 1, 2013 Total Amount Requested: 50% of $300,000 = $150,000 Applicant’s Signature: Chris Everson Date: April 26, 2013 1. Project Proposal: Although the Burlingame Phase II buildings are currently designed to exceed the 2009 International Energy Code (IEC) by approximately 40%, solar thermal systems are not currently in the plans due to budgetary constraints. In the Phase II designs, gables running east to west allow for a retrofit of future solar thermal panels to accommodate future retrofit of solar hot water preheat system son each building. The buildings are designed with sufficient southern-exposed roof elements and mechanical space to immediately incorporate (or retrofit) passive solar hot water preheat systems that can provide preheated hot water to the boilers in the individual housing units to further reduce the buildings’ energy consumption. Initial indications are such that amount of roof space available is able to accommodate solar thermal panels to offset 50% of the natural gas usage in the housing units. Page 3 of 11 P37 II. Solar Thermal Hot Water Preheat Systems for Burlingame Phase II Affordable Housing Current construction plans include (1) blocking at the south-facing roofs for mounting solar thermal panels, (2) plumbing from the roofs down to the water utility rooms, (3) space for storage tanks and controls, and (4) plumbing from the water utility rooms to each unit for a separate pre-heated water supply line for each individual boiler in each unit. While the City of Aspen is investing in the infrastructure described above, the inclusion of solar thermal panels, storage tanks and controls is not currently in the plans. Constructing the solar thermal systems in the initial construction will be more efficient than doing so as a retrofit. Additionally, constructing the solar thermal systems in the initial construction and would ensure that the systems are constructed at all, whereas if left to the HOA after handover, the likelihood of constructing the solar thermal systems would be greatly decreased. The solar thermal systems are yet to be fully engineered, but initial indications are such that an incremental investment of $6,250 per unit would be necessary for the following:  System engineering, design documents and incorporation into the current construction effort  Solar thermal panels (one 4x10 panel per unit mounted in a single array at each building)  Flashing for roof mounting of the panels  Solar storage tanks (2 per pod)  Circulator pump and controls at each pod  Additional plumbing and pipe insulation  System integration and commissioning The City’s 2013 construction plan includes buildings 1 through 4 of Burlingame Phase II which is 48 units, and is currently in process. This would equate to an approximate incremental investment of $6,250 X 48 = $300,000. The table below shows preliminary calculations for the system: Solar thermal calculations for buildings 1-4 (48 units), currently under construction 28.2 kBtu/sq ft*yr total energy modeling usage 49,720 sq ft (48 units) 1,402,104 kBtu/yr total usage calculated 0.293071 kWh/kBtu conversion 410,916 kWh/yr total usage calculated 67% % of usage is calculated to be natural gas (Space heating 26% + DHW 41%) 275,314 kWh/yr natural gas usage 50% target % offset by solar thermal given roof area 137,657 kWh/yr 4698 therm/yr 0.005306 metric tons CO2/therm conversion 24.93 metric tons CO2/year $0.043 natural gas fuel cost per kWh $5,871.31 total annual savings $300,000 total estimated system cost for 48 units 51 years, simple payback 2. Supporting Materials: Attached are relevant design documents and additional calculations. 3. Organizational Budget: The budget for the City of Aspen is available at http://www.aspenpitkin.com/Departments/Finance-City-of-Aspen/Financial-Reports/ Page 4 of 11 P38 II. Solar Thermal Hot Water Preheat Systems for Burlingame Phase II Affordable Housing 4. Detailed Project Budget: Attached is a detailed 2013 budget for the Burlingame Phase IIA(i) vertical construction project. Funding for the project is being fulfilled from the City’s Housing Development Fund, which receives revenues from Aspen’s sales and real estate transfer tax sources. No other grant funding is sought. 5. Two letters of support: Two letters of support have been included. Page 5 of 11 P39 II. EX H I B I T A : Page 6 of 11P40II. Bu r l i n g a m e R a n c h P h a s e I I U p d a t e No v e m b e r 2 3 , 2 0 1 0 P a g e 1 4 Po t e n t i a l S o l a r P a n e l L o c a t i o n s : So l a r H o t W a t e r P r e h e a t a t B u i l d i n g s (P o d C S h o w n ) Page 7 of 11P41II. Burlingame Ranch Phase IIA (Buildings 1‐4 [48 units] plus 30% Remaining A/I) 2013 Detailed Budget ‐ Planned vs Actual SOURCES Updated April 2013 2012 Budget Carry‐Forward (for completion of deferred A/I work)4,611,830$                        2013 City Council Budget Approval 17,814,977$                      Total Sources 22,426,807$                      USES A.Construction ‐ GC / GMP ‐ Haselden Construction 19,049,865$                      Haselden Access/Infrastructure Deferred Work 2,358,556$                        Anticipated A/I Change Order Costs to CO#27 93,945$                              Haselden 2013 Phase 2ai Vertical Construction GMP 16,397,364$                      City of Aspen Parks Contribution (pumps/pumphouse)deferred to 2014 Anticipated Vertical Change Order Costs including elctrical meter changeto CO#27 200,000$                            B. Construction ‐ Developer Responsibilities (City of Aspen)676,640$                            Site Gas Supply, Electrical Design, Utility Oversight 20,000$                              Site Elect Underground 273,277$                            Site Elect Supply ‐$                                     Site Sanitary Line ‐$                                     Owners OCIP 383,363$                            C. Soft Costs 1,890,688$                        Administrative Services COA PM 197,000$                            Legal 20,000$                              Presales 20,000$                              Owner's Agent Construction PM 428,740$                            IPD Design Team CA 390,594$                            CxA Constr Phase 95,000$                              Enhanced Construction Oversight 25,041$                              Quality Assurance Consultant 74,925$                              Professional Services Geotech (inc materials testing)45,641$                              Survey 20,000$                              Medium voltage electrical oversight 17,411$                               Fees Sewer Tap Fee 250,410$                            Water Tap Fee ‐ waived Parks Impact Fee ‐ waived TDM Impact Fee ‐ when buildings online 54,780$                              School Impact Fee ‐ when buildings online 65,486$                              Road Impact Fee ‐ n/a only for Pitkin County Permit Building Permit Fee 63,160$                              Stormwater Fee ‐ waived Land Use Fee Home Sales Fee HOA Setup 100,000$                            AVLT Deed Restr. Other Temp Power 22,500$                              D. Contingencies 809,614$                            Owner's Contingency (Net)809,614$                             Total Uses (A + B + C + D)22,426,807$                      Page 1 of 1 Page 8 of 11 P42 II. Page 9 of 11P43II. April 26, 2013 Chris Everson City of Aspen Affordable Housing Manager 130 S. Galena Street, 2nd Floor Aspen, CO 81611 chris.everson@ci.aspen.co.us RE: CORE Green Key Grant - 2013 Burlingame Phase IIA(i) Solar Thermal Mr. Everson: I strongly support the City of Aspen’s application for CORE Green Key grant funding to make solar energy available to the Burlingame Phase II affordable housing development. Grant funding from CORE’s Green Key Grant program would allow the opportunity for the City’s equal financial participation in this renewable energy source which otherwise may not be possible due to housing budget constraints, and the future home owners will be the sole beneficiaries of reduced operating expenses. The Burlingame Phase II housing development will provide local employees with housing that is energy efficient and will reduce commuter traffic pressure on the Valley. The inclusion of solar thermal systems in the development will further the mutual goals of the City of Aspen and CORE to promote energy efficiency and renewable energy. Sincerely, Michael C. Ireland Mayor, City of Aspen 130 S. Galena St. Aspen, CO 81611 Page 10 of 11 P44 II. Page 11 of 11 P45 II.